Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 30, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Inrad Optics, Inc. | ||
Entity Central Index Key | 719,494 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 7,964,343 | ||
Trading Symbol | INRD | ||
Entity Common Stock, Shares Outstanding | 13,516,600 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 799,953 | $ 973,333 |
Accounts receivable (net of allowance for doubtful accounts of $15,000 in 2017 and 2016) | 1,034,398 | 1,204,908 |
Inventories, net | 3,196,001 | 2,739,864 |
Other current assets | 127,900 | 143,970 |
Total Current Assets | 5,158,252 | 5,062,075 |
Plant and Equipment: | ||
Plant and equipment at cost | 14,726,638 | 14,607,155 |
Less: Accumulated depreciation and amortization | (14,013,850) | (13,729,985) |
Total plant and equipment | 712,788 | 877,170 |
Precious Metals | 563,760 | 613,647 |
Intangible Assets, net of accumulated amortization | 70,219 | 151,402 |
Other Assets | 37,486 | 30,338 |
Total Assets | 6,542,505 | 6,734,632 |
Current Liabilities: | ||
Current portion of long-term notes payable -other | 12,486 | 107,801 |
Accounts payable and accrued liabilities | 1,217,157 | 1,074,671 |
Customer advances | 869,677 | 599,340 |
Total Current Liabilities | 2,099,320 | 1,781,812 |
Related Party Convertible Notes Payable | 2,500,000 | 2,500,000 |
Long-Term Notes Payable -other, net of current portion | 257,738 | 270,722 |
Total Liabilities | 4,857,058 | 4,552,534 |
Commitments | ||
Shareholders' Equity: | ||
Common stock: $.01 par value; 60,000,000 authorized shares 13,521,200 issued at December 31, 2017 and 13,156,544 issued at December 31, 2016 | 135,213 | 131,567 |
Capital in excess of par value | 18,882,086 | 18,699,852 |
Accumulated deficit | (17,316,902) | (16,634,371) |
Stockholders' Equity before Treasury Stock | 1,700,397 | 2,197,048 |
Less - Common stock in treasury, at cost (4,600 shares) | (14,950) | (14,950) |
Total Shareholders’ Equity | 1,685,447 | 2,182,098 |
Total Liabilities and Shareholders’ Equity | $ 6,542,505 | $ 6,734,632 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for doubtful accounts (in dollars) | $ 15,000 | $ 15,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 13,521,200 | 13,156,544 |
Treasury stock, shares | 4,600 | 4,600 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | ||
Net sales | $ 9,859,201 | $ 9,766,525 |
Cost and expenses | ||
Cost of goods sold | 7,936,534 | 7,812,248 |
Selling, general and administrative expense | 2,416,794 | 2,450,706 |
Costs and Expenses, Total | 10,353,328 | 10,262,954 |
Operating (loss) | (494,127) | (496,429) |
Other income (expense), net | ||
Interest expense, net | (160,643) | (167,635) |
(Loss) gain on exchange of precious metals | (51,761) | 58,979 |
Gain on sale or disposal of plant and equipment | 24,000 | 0 |
Nonoperating Income (Expense) | (188,404) | (108,656) |
(Loss) before income taxes | (682,531) | (605,085) |
Income tax provision | 0 | 0 |
Net (loss) | $ (682,531) | $ (605,085) |
Net (loss) per share - basic (in dollars per share) | $ (0.05) | $ (0.05) |
Net (loss) per share - diluted (in dollars per share) | $ (0.05) | $ (0.05) |
Weighted average shares outstanding - basic (in shares) | 13,357,622 | 12,926,471 |
Weighted average shares outstanding - diluted (in shares) | 13,357,622 | 12,926,471 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Capital in excess of par value [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] |
Balance at Dec. 31, 2015 | $ 2,622,028 | $ 127,380 | $ 18,538,884 | $ (16,029,286) | $ (14,950) |
Balance (in shares) at Dec. 31, 2015 | 12,737,808 | ||||
401K contribution | 135,193 | $ 4,187 | 131,006 | 0 | 0 |
401K contribution (in shares) | 418,736 | ||||
Stock-based compensation expense | 29,962 | $ 0 | 29,962 | 0 | 0 |
Net loss for the year | (605,085) | 0 | 0 | (605,085) | 0 |
Balance at Dec. 31, 2016 | 2,182,098 | $ 131,567 | 18,699,852 | (16,634,371) | (14,950) |
Balance (in shares) at Dec. 31, 2016 | 13,156,544 | ||||
401K contribution | 124,289 | $ 3,563 | 120,726 | 0 | 0 |
401K contribution (in shares) | 356,323 | ||||
Common stock issued on exercise of options | 2,063 | $ 83 | 1,980 | 0 | 0 |
Common stock issued on exercise of options (in shares) | 8,333 | ||||
Stock-based compensation expense | 59,528 | $ 0 | 59,528 | 0 | 0 |
Net loss for the year | (682,531) | 0 | 0 | (682,531) | 0 |
Balance at Dec. 31, 2017 | $ 1,685,447 | $ 135,213 | $ 18,882,086 | $ (17,316,902) | $ (14,950) |
Balance (in shares) at Dec. 31, 2017 | 13,521,200 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net (loss) | $ (682,531) | $ (605,085) |
Adjustments to reconcile net (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 365,048 | 445,999 |
401K common stock contribution | 124,289 | 135,193 |
(Gain) on sale or disposal of plant and equipment | (24,000) | 0 |
Loss (gain) on exchange of precious metals | 51,761 | (58,979) |
Stock-based compensation expense | 59,528 | 29,962 |
Change in inventory reserve | 198,528 | 238,571 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 170,510 | 140,289 |
Inventories | (654,665) | 16,930 |
Other current assets | 16,070 | (677) |
Other assets | (7,148) | 2,158 |
Accounts payable and accrued liabilities | 104,986 | 1,684 |
Customer advances | 270,337 | 231,273 |
Accrued interest on related party note payable | 37,500 | 37,500 |
Total adjustments and changes | 712,744 | 1,219,903 |
Net cash provided by operating activities | 30,213 | 614,818 |
Cash flows from investing activities: | ||
Purchase of plant and equipment | (119,483) | (113,544) |
Purchase of precious metals | (1,874) | (743) |
Purchase of patent license | 0 | (30,000) |
Proceeds from sale of plant and equipment | 24,000 | 0 |
Net cash used in investing activities | (97,357) | (144,287) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 2,063 | 0 |
Principal payments of notes payable-other | (108,299) | (170,883) |
Net cash (used in) financing activities | (106,236) | (170,883) |
Net increase (decrease) in cash and cash equivalents | (173,380) | 299,648 |
Cash and cash equivalents at beginning of the year | 973,333 | 673,685 |
Cash and cash equivalents at end of the year | 799,953 | 973,333 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest paid | 124,987 | 132,100 |
Income taxes paid | 1,050 | 800 |
Non Cash Financing Activities: | ||
Exchange of Precious Metals | $ 48,757 | $ 107,272 |
Nature of Business and Operatio
Nature of Business and Operations and Summary of Significant Accounting Policies and Estimates | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 1. Nature of Business and Operations and Summary of Significant Accounting Policies and Estimates a. Nature of Business and Operations Inrad Optics, Inc. and Subsidiaries (the “Company”), formerly known as Photonic Products Group, Inc., was incorporated in the state of New Jersey and is a manufacturer of crystals, crystal devices, electro-optic and optical components, and sophisticated laser devices and instruments. The Company has administrative offices and manufacturing operations in Northvale, New Jersey. The Company’s principal customers include commercial instrumentation companies and OEM laser systems manufacturers, research laboratories, government agencies, and defense contractors. The Company’s products are sold domestically using its own sales staff, and in major overseas markets, principally Europe, Israel, Japan, and Asia, using independent sales agents. b. Liquidity As of December 31, 2017, the Company had working capital of $ 3,060,715 799,953 c. Principles of consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Upon consolidation, all inter-company accounts and transactions are eliminated. d. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts in the consolidated financial statements and accompanying notes. These estimates include, but are not limited to, determining our allowance for doubtful accounts, our allowance for inventory obsolescence, the fair value and depreciable lives of long-lived tangible and intangible assets, and deferred taxes and the associated valuation allowance. Actual results could differ from these estimates. e. Cash and cash equivalents The Company considers cash-on-hand and highly liquid investments with original maturity dates of three months or less at the date of purchase to be cash and cash equivalents. f. Accounts receivable Accounts receivable are carried at net realizable value, net of write-offs and allowances. The Company establishes an allowance for doubtful accounts based on estimates as to the collectability of accounts receivable. Management specifically analyzes past-due accounts receivable balances and, additionally, considers bad debt history, customer credit-worthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. Uncollectible accounts receivable are written-off when it is determined that the balance will not be collected. g. Inventories Inventories are stated at the lower of cost (first-in, first-out method) or net-realizable value. Cost of manufactured goods includes material, labor and overhead. The Company records a reserve for slow moving inventory as a charge against earnings for all products identified as surplus, slow moving or discontinued. Excess work-in-process costs are charged against earnings whenever estimated costs-of-completion exceed unbilled revenues. h. Plant and Equipment Plant and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets which range between five and seven years. Amortization of leasehold improvements is computed using the straight-line method over the lesser of 10 Maintenance and repairs of property and equipment are charged to operations and major improvements are capitalized. Upon retirement, sale or other disposition of property and equipment, the cost and accumulated depreciation are eliminated from the accounts and a gain or loss is recorded. i. Income taxes Deferred taxes are provided on the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the amounts of assets and liabilities recorded for income tax and financial reporting purposes. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax rate decrease from 35 21 The Company recognizes the financial statement benefit of an uncertain tax position only after determining that the relevant tax authority would more likely than not sustain the position. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company classifies interest and penalties related to income taxes as income tax expense in its Consolidated Financial Statements. The Company had no unrecognized tax benefits or liabilities, and no adjustment to its financial position, results of operations, or cash flows relating to uncertain tax positions taken on all open tax years. The Company is no longer subject to federal income tax examinations by tax authorities for the years before 2014 and state or local income tax examinations by tax authorities for the years before 2014. j. Impairment of long-lived assets Long-lived assets, such as plant and equipment and purchased intangibles with finite lives, which are subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Long-lived assets held for sale would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and would no longer be depreciated. k. Stock-based compensation Stock based compensation expense is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options granted using the Black-Scholes option pricing model. The fair value of restricted stock units granted is estimated based on the closing market price of the Company’s common stock on the date of the grant. The fair value of these awards, adjusted for estimated forfeitures, is amortized over the requisite service period of the award, which is generally the vesting period. l. Revenue recognition The Company records revenue from the sale of products and services used in the photonics industry when all four of the following criteria are met: · persuasive evidence of an arrangement exists; · delivery has occurred or services have been rendered; · the sales price is fixed or determinable; and · collectability is reasonably assured. Losses on contracts in progress are recorded when identified. m. Internal research and development costs Internal research and development costs are charged to expense as incurred. n. Precious metals Precious metals are stated at cost and consist of various fixtures used in the high temperature crystal growth manufacturing process. From time to time the quoted market values of these precious metals may be below cost. Management evaluates these market adjustments on a recurring basis and if it is determined that they are other than temporary the carrying value would be adjusted. o. Advertising costs Advertising costs included in selling, general and administrative expenses were $ 11,000 7,000 p. Concentrations and credit risk The concentration of credit risk in the Company’s accounts receivable is mitigated by the Company’s credit evaluation process, familiarity with its small base of recurring customers and reasonably short collection terms and the geographical dispersion of revenue. The Company generally does not require collateral but, in some cases, the Company negotiates cash advances prior to the undertaking of the work. These cash advances are recorded as current liabilities on the balance sheet until corresponding revenues are realized. The Company utilizes many relatively uncommon materials and compounds to manufacture its products and relies on outside vendors for certain manufacturing services. Therefore, any failure by its suppliers to deliver materials of an adequate quality and quantity could have an adverse effect on the Company’s ability to meet the commitments of its customers. For the year ended December 31, 2017, the Company had two customers who had sales representing 14.9 14.4 10.5 q. Fair value measurements The Company follows U.S. GAAP accounting guidance which establishes a framework for measuring fair value and expanded related disclosures. The framework requires fair value to be determined based on the exchange price that would be received for an asset, or paid to transfer a liability (an exit price), in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The valuation techniques required are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The accounting guidance requires the following fair value hierarchy: ⋅ Level 1 - Quoted prices (unadjusted) for identical assets and liabilities in active markets that the Company has the ability to access at the measurement date. ⋅ Level 2 - Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; and inputs other than quoted prices that are observable for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from or corroborated by observable market data through correlation. ⋅ Level 3 - Values determined by models, significant inputs to which are unobservable and are primarily based on internally derived assumptions regarding the timing and amount of expected cash flows. Long-lived assets, including goodwill and other intangible assets, may be measured at fair value if such assets are held for sale or if there is a determination that the asset is impaired. Managements’ determination of fair value, although highly subjective, is based on the best information available, including internal projections of future earnings and cash flows discounted at an appropriate interest rate, quoted market prices when available, market prices for similar assets, broker quotes and independent appraisals, as appropriate. r. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition.” ASU 2014-09 (with subsequent targeted amendments) is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted the provisions of ASU 2014-09 on January 1, 2018, using the modified retrospective approach. Revenue from the Company’s product sales will continue to generally be recognized when products are shipped (i.e. point in time) and revenue from the Company’s products and service sales provided under long-term government contracts will continue to generally be recognized as the Company transfers control of the product or service to its customers (i.e. over time), which approximates the previously used percentage-of-completion method of accounting. As such, the adoption of ASU 2014-09 is not expected to have a material impact to the Company’s financial position or results of operations. The Company will present the disclosures required by this new standard beginning in our 2018 interim financial statements and will continue to evaluate the changes that will be required within its internal controls as a result of the adoption. In January 2017, the FASB issued guidance which clarifies the definition of a business and provides revised criteria and a framework to determine whether an integrated set of assets and activities is a business. For public companies, the new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company adopted the new guidance on January 1, 2018 as required, with no impact on the Company’s consolidated financial statements upon adoption. In August 2016, the FASB issued ASU 2016-15, Statement of cash flows (Topic 230) which provides guidance on the classification of certain cash receipts and payments in the statement of cash flows intended to reduce diversity in practice. The guidance is effective for interim and annual periods beginning in 2018. Early adoption is permitted. The guidance is to be applied retrospectively to all periods presented but may be applied prospectively if retrospective application would be impracticable. The Company adopted the new guidance on January 1, 2018 as required. There are no significant impacts to the Company’s consolidated financial statements from the adoption of the new guidance. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments" (“ASU 2016-13” which amended guidance on the accounting for credit losses on financial instruments within its scope. The guidance introduces an expected loss model for estimating credit losses, replacing the incurred loss model. The new guidance also changes the impairment model for available-for-sale debt securities, requiring the use of an allowance to record estimated credit losses (and subsequent recoveries). The new guidance is effective for interim and annual periods beginning in 2020, with earlier application permitted in 2019. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payments, including income tax consequences, application of award forfeitures to expense, classification on the statement of cash flows, and classification of awards as either equity or liabilities. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of the guidance in ASU No. 2016-09 on January 1, 2017 did not have a material effect on the Company’s financial statements and related footnote disclosures. In February 2016, the FASB created Topic 842 and issued ASU 2016-02, Leases. The guidance in this update supersedes Topic 840, Leases. This ASU requires lessees to recognize a right-of-use assets and a lease liability, initially measured at the present value of the lease payments on the balance sheet. For public companies, the amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Earlier application is permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its financial statements and disclosure. In January 2016, the FASB issued ASU 2016-01, “Financial InstrumentsOverall: Recognition and Measurement of Financial Assets and Financial Liabilities”, which changes how entities measure certain equity investments and how entities present changes in the fair value of financial liabilities measured under the fair value option that are attributable to instrument-specific credit risk. The adoption of ASU 2016-01 is not expected to have a material impact to the Company’s financial position or results of operations. ASU 2016-01 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those fiscal years |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 2. Inventories, net 2,447,000 2,249,000 December 31, 2017 2016 (In thousands) Raw materials $ 1,174 $ 1,041 Work in process, including manufactured parts and components 1,462 1,115 Finished goods 560 584 $ 3,196 $ 2,740 |
Plant and Equipment
Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 3. Plant and Equipment December 31, 2017 2016 (In thousands) Office and computer equipment $ 1,333 $ 1,318 Machinery and equipment 11,118 11,013 Leasehold improvements 2,276 2,276 14,727 14,607 Less accumulated depreciation and amortization (14,014) (13,730) $ 713 $ 877 Depreciation expense recorded by the Company totaled approximately $ 284,000 366,000 0 24,000 The Company evaluates its property and equipment for impairment when events or circumstances indicate and impairment may exist. Based on this evaluation, the Company concluded that, at December 31, 2017, its long-lived assets were not impaired. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 4. Intangible Assets Intangible assets include acquired intangible assets with finite lives, consisting principally of non-contractual customer relationships, completed technology, trademark and licensed patents. Intangible assets with finite lives are amortized on a straight-line basis over the assets’ estimated useful life up to 14 years. Based on management’s judgement, there were no events or circumstances that would lead us to conclude that a possible impairment of intangible assets exists as of December 31, 2017. Amortization expense was approximately $ 81,000 80,000 54,000 46,000 2,000 The weighted average remaining life of the Company’s intangible assets is approximately 2.3 At December 31, 2017 Gross Carrying Accumulated Net Carrying (In thousands) Customer-related $ 550 (535) $ 15 Completed technology 363 (348) 15 Trademarks 187 (173) 14 Licensed Patents 30 (4) 26 Total $ 1,130 (1,060) $ 70 At December 31, 2016 Gross Carrying Accumulated Net Carrying (In thousands) Customer-related $ 550 $ (495) $ 55 Completed technology 363 (322) 41 Trademarks 187 (160) 27 Licensed Patents 30 (2) 28 Total $ 1,130 $ (979) $ 151 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 5. Related Party Transactions On June 9, 2016 the maturity dates of a $ 1,500,000 1,000,000 April 1, 2019 6 1,500,000 1,000,000 0.75 1.35 The Company paid $ 112,500 112,500 112,500 75,000 |
Other Long-Term Notes
Other Long-Term Notes | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | 6. Other Long-Term Notes Other Long-Term Notes consist of the following: December 31, 2017 2016 (In thousands) Term Note Payable, payable in equal monthly installments of $13,953 and bearing an interest rate of 4.35% and expiring in July 2017 $ $ 96 U.S. Small Business Administration term note payable in monthly installments of $1,922 and bearing an interest rate of 4.0% and expiring in May 2032. $ 270 $ 282 270 378 Less current portion (12) (108) Other Long-Term Notes, excluding current portion $ 258 $ 270 Year ending December 31: (In thousands) 2018 $ 12 2019 12 2020 13 2021 13 Thereafter 220 $ 270 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 7. Accounts Payable and Accrued Liabilities December 31, 2017 2016 (In thousands) Trade accounts payable and accrued purchases $ 740 $ 630 Accrued payroll 121 124 Accrued 401K company matching contribution 143 129 Accrued expenses other 213 192 $ 1,217 $ 1,075 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 8. Income Taxes Years Ended December 31, 2017 2016 Current: Federal $ $ State Deferred: Federal State Total $ $ Years Ended December 31, 2017 2016 Federal statutory rate (34) % (34) % State statutory rate (7) (7) Reduction in Federal rate due to tax reform 259 Change in Valuation Allowance (214) 43 Permanent Differences (2) (2) Effective income tax rate 0 % 0 % At December 31, 2017 and 2016, the Company had estimated Federal net operating loss carry forwards of approximately $ 9,435,000 9,194,000 $ 5,977,000 4,969,000 2037 . Internal Revenue Code Section 382 places a limitation on the utilization of Federal net operating loss and other credit carry forwards when an ownership change, as defined by the tax law, occurs. Generally, this occurs when a greater than 50 percentage point change in ownership occurs. Accordingly, the actual utilization of the net operating loss and carryforwards for tax purposes may be limited annually to a percentage (based on the risk free interest rate) of the fair market value of the Company at the time of any such ownership change. The Company has not prepared an analysis of ownership changes but does not believe that a greater than 50% change of ownership has occurred and such limitations would not apply to the Company. The Tax Cuts and Jobs Act was enacted on December 22, 2017. The Tax Act eliminates alternative minimum taxes and lowers the U.S. federal corporate income tax from 34 21 Deferred tax assets (liabilities) are comprised of the following: December 31, 2017 2016 (In thousands) Account receivable reserves $ 4 $ 6 Inventory reserves 685 944 Inventory capitalization 101 129 Depreciation 291 401 Loss carry forwards 2,371 3,435 Gross deferred tax assets 3,452 4,915 Valuation allowance (3,452) (4,915) Net deferred tax asset $ $ In evaluating the Company’s ability to recover deferred tax assets in future periods, management considers the available positive and negative factors, including the Company’s recent operating results, the existence of cumulative losses and near term forecasts of future taxable income that is consistent with the plans and estimates management is using to manage the underlying business. A significant piece of objective negative evidence evaluated was the cumulative loss incurred by the Company over the three-year period ended December 31, 2017. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. On the basis of this evaluation, as of December 31, 2017 and 2016, the Company concluded it was more likely than not that it would not be able to realize any portion of the benefit on the deferred tax assets and the valuation allowance was increased by $ 302,000 151,000 The Company files income tax returns in the United States, which typically provides for a three-year statute of limitations on assessments. The Company is no longer subject to federal, state or local income tax examinations by tax authorities for the years before 2014 . The guidance for accounting for uncertainties in income taxes requires that we recognize the financial statement effects of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. There were no unrecognized tax benefits that impacted our effective tax rate and accordingly, there was no material effect to our financial position, results of operations or cash flows. Our policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense. To date, there have been no interest or penalties charged to us in relation to the underpayment of income taxes. We do not anticipate that our unrecognized tax benefits will significantly increase in the next 12 months. |
Equity Compensation Program and
Equity Compensation Program and Stock-based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 9. Equity Compensation Program and Stock-based Compensation a. 2010 Equity Compensation Program The Company’s 2010 Equity Compensation Program provides for grants of options, stock appreciation rights and restricted stock awards to employees, officers, directors, and others who render services to the Company. The Program is comprised of four parts including: (i) the Incentive Stock Option Plan which provides for grants of “incentive stock options”, (ii) the Supplemental Stock Option Plan which provides for grants of stock options that shall not be “incentive stock options”, (iii) the Stock Appreciation Rights Plan which allows the granting of stock appreciation rights and, (iv) the Restricted Stock Award Plan which provides for the granting of restrictive shares of Common Stock and restricted stock units. The plan is administered by the Compensation Committee of the Board of Directors. Under this plan, an aggregate of up to 4,000,000 b. 2000 Equity Compensation Program The Company’s 2000 Equity Compensation Program expired on June 2, 2010. All outstanding grants of options, stock appreciation rights and performance shares issued under the Program will remain outstanding and shall expire on the date determined by the terms of the original grant. The latest date of expiration for outstanding grants under the plan is March 28, 2020. c. Stock Option Expense The Company's results for the years ended December 31, 2017 and 2016 include stock-based compensation expense for stock option grants totaling $ 60,000 30,000 17,000 7,000 43,000 23,000 As of December 31, 2017 and 2016, there were $ 89,000 49,000 1.4 1.5 The weighted average estimated fair value of stock options granted in the two years ended December 31, 2017 and 2016 was $ 0.56 0.34 Years Ended December 31, 2017 2016 Dividend yield % % Volatility 133 - 134 % 128 % Risk-free interest rate 2.2 - 2.3 % 2.1 % Expected life 10 years 10 years d. Stock Option Activity Weighted Average Weighted Remaining Average Contractual Aggregate Exercise Term Intrinsic Options Price (In Years) Value(a) Outstanding as of January 1, 2016 699,604 $ .71 Granted 163,500 .35 Exercised Forfeited /Expired (102,890) $ .92 Outstanding as of December 31, 2016 (b) 760,214 $ .60 4.8 109,168 Granted 180,000 .58 Exercised (8,333) .25 Forfeited /Expired (28,873) 1.09 Outstanding as of December 31, 2017 b) 903,008 $ .58 5.2 648,410 Exercisable as of December 31, 2017 572,513 $ .65 3.7 288,789 (a) Intrinsic value for purposes of this table represents the amount by which the fair value of the underlying stock, based on the respective market prices as of December 31, 2017 exceeds the exercise prices of the respective options. All of the options used in the calculation of the aggregate intrinsic value for outstanding options are exercisable as of December 31, 2017. (b) Based on the Company’s historical forfeiture rate, the number of options expected to vest is the same as the total outstanding at December 31, 2017. Non-vested Options Options Weighted-Average Grant- Non-vested - January 1, 2017 272,167 .28 Granted 180,000 .56 Vested (121,672) .27 Forfeited Non-vested December 31, 2017 330,495 .44 The total weighted average grant date fair value of options vested during the years ended December 31, 2017 and 2016, was $ 34,000 21,000 Options Outstanding Options Exercisable Weighted Average Weighted Weighted Remaining Average Average Range of Number Contractual Exercise Number Exercise Exercise Price Outstanding Life in Years Price Outstanding Price $0.18 - $0.35 411,667 7.1 $ .29 261,172 $ .28 $0.50 - $1.00 476,400 4.8 $ .80 296,400 $ .93 $1.50 - $1.75 14,941 1.1 $ 1.75 14,941 $ 1.75 |
Net (Loss) per Share
Net (Loss) per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 10. Net (Loss) per Share Basic income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares and common stock equivalents outstanding, calculated on the treasury stock method for options, stock grants and warrants using the average market prices during the period, including potential common shares issuable upon conversion of outstanding convertible notes, except if the effect on the per share amounts is anti-dilutive. For the year ended December 31, 2017, a total of 2,500,000 1,875,000 903,008 For the year ended December 31, 2016, all common equivalent shares outstanding have been excluded from the diluted computation because their effect is anti-dilutive. This included 760,214 2,500,000 1,875,000 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure [Text Block] | 11. Commitments a. Lease commitment s The Company occupies approximately 42,000 The Company’s total rent expense for the year ended December 31, 2017 and 2016 was $ 283,000 284,000 The Company also paid real estate taxes and insurance premiums under the terms of the lease that totaled approximately $ 91,000 89,000 Future minimum annual rentals which cover the remaining lease terms, excluding uncommitted option renewal periods at December 31, 2017, total $ 117,942 b. Retirement plans The Company maintains a 401(k) savings plan (the “Plan”) for all eligible employees (as defined in the plan). The 401(k) plan allows employees to contribute up to 70 In 2017, the Company’s 401(k) matching contribution for employees was $ 123,706 148,381 124,289 356,323 |
Product Sales, Foreign Sales an
Product Sales, Foreign Sales and Sales to Major Customers | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 12. Product Sales, Foreign Sales and Sales to Major Customers The Company’s export sales, which are primarily to customers in countries within Europe, Israel, Asia and Japan, amounted to approximately 32.5 23.1 The Company had sales to three major customers which accounted for approximately 34.6 14.8 14.3 5.6 10.5 1.6 3.5 During the past two years, sales to the Company’s top five customers represented approximately 45.1 37.8 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Shareholders’ Equity a. 2010 Equity compensation plan 4,000,000 2000 Equity compensation plan 95,641 Subordinated convertible notes 2,500,000 Warrants issuable on conversion of Subordinated convertible notes 1,875,000 8,470,641 b. Warrants The Company had no outstanding warrants as of December 31, 2017 and 2016. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments Disclosure [Text Block] | 14. Fair Value of Financial Instruments The methods and assumptions used to estimate the fair value of the following classes of financial instruments were: Current Assets and Current Liabilities: The carrying amount of cash, current receivables and payables and certain other short-term financial instruments approximate their fair value as of December 31, 2017 due to their short-term maturities. Long-Term Debt: The fair value of the Company’s long-term debt, including the current portion, for notes payable and subordinated convertible debentures, was estimated using a discounted cash flow analysis, based on the Company’s assumed incremental borrowing rates for similar types of borrowing arrangements. The fair value of long-term debt is estimated to be $2,645,000 compared to its carrying amount of $ 2,770,000 |
Nature of Business and Operat21
Nature of Business and Operations and Summary of Significant Accounting Policies and Estimates (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | a. Nature of Business and Operations Inrad Optics, Inc. and Subsidiaries (the “Company”), formerly known as Photonic Products Group, Inc., was incorporated in the state of New Jersey and is a manufacturer of crystals, crystal devices, electro-optic and optical components, and sophisticated laser devices and instruments. The Company has administrative offices and manufacturing operations in Northvale, New Jersey. The Company’s principal customers include commercial instrumentation companies and OEM laser systems manufacturers, research laboratories, government agencies, and defense contractors. The Company’s products are sold domestically using its own sales staff, and in major overseas markets, principally Europe, Israel, Japan, and Asia, using independent sales agents. |
Liquidity Disclosure Policy [Policy Text Block] | b. Liquidity As of December 31, 2017, the Company had working capital of $ 3,060,715 799,953 |
Consolidation, Policy [Policy Text Block] | c. Principles of consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Upon consolidation, all inter-company accounts and transactions are eliminated. |
Use of Estimates, Policy [Policy Text Block] | d. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts in the consolidated financial statements and accompanying notes. These estimates include, but are not limited to, determining our allowance for doubtful accounts, our allowance for inventory obsolescence, the fair value and depreciable lives of long-lived tangible and intangible assets, and deferred taxes and the associated valuation allowance. Actual results could differ from these estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | e. Cash and cash equivalents The Company considers cash-on-hand and highly liquid investments with original maturity dates of three months or less at the date of purchase to be cash and cash equivalents. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | f. Accounts receivable Accounts receivable are carried at net realizable value, net of write-offs and allowances. The Company establishes an allowance for doubtful accounts based on estimates as to the collectability of accounts receivable. Management specifically analyzes past-due accounts receivable balances and, additionally, considers bad debt history, customer credit-worthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. Uncollectible accounts receivable are written-off when it is determined that the balance will not be collected. |
Inventory, Policy [Policy Text Block] | g. Inventories Inventories are stated at the lower of cost (first-in, first-out method) or net-realizable value. Cost of manufactured goods includes material, labor and overhead. The Company records a reserve for slow moving inventory as a charge against earnings for all products identified as surplus, slow moving or discontinued. Excess work-in-process costs are charged against earnings whenever estimated costs-of-completion exceed unbilled revenues. |
Property, Plant and Equipment, Policy [Policy Text Block] | h. Plant and Equipment Plant and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets which range between five and seven years. Amortization of leasehold improvements is computed using the straight-line method over the lesser of 10 Maintenance and repairs of property and equipment are charged to operations and major improvements are capitalized. Upon retirement, sale or other disposition of property and equipment, the cost and accumulated depreciation are eliminated from the accounts and a gain or loss is recorded. |
Income Tax, Policy [Policy Text Block] | i. Income taxes Deferred taxes are provided on the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the amounts of assets and liabilities recorded for income tax and financial reporting purposes. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax rate decrease from 35 21 The Company recognizes the financial statement benefit of an uncertain tax position only after determining that the relevant tax authority would more likely than not sustain the position. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company classifies interest and penalties related to income taxes as income tax expense in its Consolidated Financial Statements. The Company had no unrecognized tax benefits or liabilities, and no adjustment to its financial position, results of operations, or cash flows relating to uncertain tax positions taken on all open tax years. The Company is no longer subject to federal income tax examinations by tax authorities for the years before 2014 and state or local income tax examinations by tax authorities for the years before 2014. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | j. Impairment of long-lived assets Long-lived assets, such as plant and equipment and purchased intangibles with finite lives, which are subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Long-lived assets held for sale would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and would no longer be depreciated. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | k. Stock-based compensation Stock based compensation expense is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options granted using the Black-Scholes option pricing model. The fair value of restricted stock units granted is estimated based on the closing market price of the Company’s common stock on the date of the grant. The fair value of these awards, adjusted for estimated forfeitures, is amortized over the requisite service period of the award, which is generally the vesting period. |
Revenue Recognition, Policy [Policy Text Block] | l. Revenue recognition The Company records revenue from the sale of products and services used in the photonics industry when all four of the following criteria are met: · persuasive evidence of an arrangement exists; · delivery has occurred or services have been rendered; · the sales price is fixed or determinable; and · collectability is reasonably assured. Losses on contracts in progress are recorded when identified. |
Research and Development Expense, Policy [Policy Text Block] | m. Internal research and development costs Internal research and development costs are charged to expense as incurred. |
Precious Metals Policy [Policy Text Block] | n. Precious metals Precious metals are stated at cost and consist of various fixtures used in the high temperature crystal growth manufacturing process. From time to time the quoted market values of these precious metals may be below cost. Management evaluates these market adjustments on a recurring basis and if it is determined that they are other than temporary the carrying value would be adjusted. |
Advertising Costs, Policy [Policy Text Block] | o. Advertising costs Advertising costs included in selling, general and administrative expenses were $ 11,000 7,000 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | p. Concentrations and credit risk The concentration of credit risk in the Company’s accounts receivable is mitigated by the Company’s credit evaluation process, familiarity with its small base of recurring customers and reasonably short collection terms and the geographical dispersion of revenue. The Company generally does not require collateral but, in some cases, the Company negotiates cash advances prior to the undertaking of the work. These cash advances are recorded as current liabilities on the balance sheet until corresponding revenues are realized. The Company utilizes many relatively uncommon materials and compounds to manufacture its products and relies on outside vendors for certain manufacturing services. Therefore, any failure by its suppliers to deliver materials of an adequate quality and quantity could have an adverse effect on the Company’s ability to meet the commitments of its customers. For the year ended December 31, 2017, the Company had two customers who had sales representing 14.9 14.4 10.5 |
Fair Value Measurement, Policy [Policy Text Block] | q. Fair value measurements The Company follows U.S. GAAP accounting guidance which establishes a framework for measuring fair value and expanded related disclosures. The framework requires fair value to be determined based on the exchange price that would be received for an asset, or paid to transfer a liability (an exit price), in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The valuation techniques required are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The accounting guidance requires the following fair value hierarchy: ⋅ Level 1 - Quoted prices (unadjusted) for identical assets and liabilities in active markets that the Company has the ability to access at the measurement date. ⋅ Level 2 - Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; and inputs other than quoted prices that are observable for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from or corroborated by observable market data through correlation. ⋅ Level 3 - Values determined by models, significant inputs to which are unobservable and are primarily based on internally derived assumptions regarding the timing and amount of expected cash flows. Long-lived assets, including goodwill and other intangible assets, may be measured at fair value if such assets are held for sale or if there is a determination that the asset is impaired. Managements’ determination of fair value, although highly subjective, is based on the best information available, including internal projections of future earnings and cash flows discounted at an appropriate interest rate, quoted market prices when available, market prices for similar assets, broker quotes and independent appraisals, as appropriate. |
New Accounting Pronouncements, Policy [Policy Text Block] | r. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition.” ASU 2014-09 (with subsequent targeted amendments) is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted the provisions of ASU 2014-09 on January 1, 2018, using the modified retrospective approach. Revenue from the Company’s product sales will continue to generally be recognized when products are shipped (i.e. point in time) and revenue from the Company’s products and service sales provided under long-term government contracts will continue to generally be recognized as the Company transfers control of the product or service to its customers (i.e. over time), which approximates the previously used percentage-of-completion method of accounting. As such, the adoption of ASU 2014-09 is not expected to have a material impact to the Company’s financial position or results of operations. The Company will present the disclosures required by this new standard beginning in our 2018 interim financial statements and will continue to evaluate the changes that will be required within its internal controls as a result of the adoption. In January 2017, the FASB issued guidance which clarifies the definition of a business and provides revised criteria and a framework to determine whether an integrated set of assets and activities is a business. For public companies, the new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company adopted the new guidance on January 1, 2018 as required, with no impact on the Company’s consolidated financial statements upon adoption. In August 2016, the FASB issued ASU 2016-15, Statement of cash flows (Topic 230) which provides guidance on the classification of certain cash receipts and payments in the statement of cash flows intended to reduce diversity in practice. The guidance is effective for interim and annual periods beginning in 2018. Early adoption is permitted. The guidance is to be applied retrospectively to all periods presented but may be applied prospectively if retrospective application would be impracticable. The Company adopted the new guidance on January 1, 2018 as required. There are no significant impacts to the Company’s consolidated financial statements from the adoption of the new guidance. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments" (“ASU 2016-13” which amended guidance on the accounting for credit losses on financial instruments within its scope. The guidance introduces an expected loss model for estimating credit losses, replacing the incurred loss model. The new guidance also changes the impairment model for available-for-sale debt securities, requiring the use of an allowance to record estimated credit losses (and subsequent recoveries). The new guidance is effective for interim and annual periods beginning in 2020, with earlier application permitted in 2019. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payments, including income tax consequences, application of award forfeitures to expense, classification on the statement of cash flows, and classification of awards as either equity or liabilities. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of the guidance in ASU No. 2016-09 on January 1, 2017 did not have a material effect on the Company’s financial statements and related footnote disclosures. In February 2016, the FASB created Topic 842 and issued ASU 2016-02, Leases. The guidance in this update supersedes Topic 840, Leases. This ASU requires lessees to recognize a right-of-use assets and a lease liability, initially measured at the present value of the lease payments on the balance sheet. For public companies, the amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Earlier application is permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its financial statements and disclosure. In January 2016, the FASB issued ASU 2016-01, “Financial InstrumentsOverall: Recognition and Measurement of Financial Assets and Financial Liabilities”, which changes how entities measure certain equity investments and how entities present changes in the fair value of financial liabilities measured under the fair value option that are attributable to instrument-specific credit risk. The adoption of ASU 2016-01 is not expected to have a material impact to the Company’s financial position or results of operations. ASU 2016-01 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those fiscal years |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories are comprised of the following and are shown net of inventory reserves of approximately $ 2,447,000 2,249,000 December 31, 2017 2016 (In thousands) Raw materials $ 1,174 $ 1,041 Work in process, including manufactured parts and components 1,462 1,115 Finished goods 560 584 $ 3,196 $ 2,740 |
Plant and Equipment (Tables)
Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Plant and equipment are comprised of the following: December 31, 2017 2016 (In thousands) Office and computer equipment $ 1,333 $ 1,318 Machinery and equipment 11,118 11,013 Leasehold improvements 2,276 2,276 14,727 14,607 Less accumulated depreciation and amortization (14,014) (13,730) $ 713 $ 877 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The following schedule details the Company’s intangible asset balance by major asset class. At December 31, 2017 Gross Carrying Accumulated Net Carrying (In thousands) Customer-related $ 550 (535) $ 15 Completed technology 363 (348) 15 Trademarks 187 (173) 14 Licensed Patents 30 (4) 26 Total $ 1,130 (1,060) $ 70 At December 31, 2016 Gross Carrying Accumulated Net Carrying (In thousands) Customer-related $ 550 $ (495) $ 55 Completed technology 363 (322) 41 Trademarks 187 (160) 27 Licensed Patents 30 (2) 28 Total $ 1,130 $ (979) $ 151 |
Other Long-Term Notes (Tables)
Other Long-Term Notes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Other Long-Term Notes consist of the following: December 31, 2017 2016 (In thousands) Term Note Payable, payable in equal monthly installments of $13,953 and bearing an interest rate of 4.35% and expiring in July 2017 $ $ 96 U.S. Small Business Administration term note payable in monthly installments of $1,922 and bearing an interest rate of 4.0% and expiring in May 2032. $ 270 $ 282 270 378 Less current portion (12) (108) Other Long-Term Notes, excluding current portion $ 258 $ 270 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Other Long-Term Notes mature as follows: Year ending December 31: (In thousands) 2018 $ 12 2019 12 2020 13 2021 13 Thereafter 220 $ 270 |
Accounts Payable and Accrued 26
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accounts payable and accrued expenses are comprised of the following: December 31, 2017 2016 (In thousands) Trade accounts payable and accrued purchases $ 740 $ 630 Accrued payroll 121 124 Accrued 401K company matching contribution 143 129 Accrued expenses other 213 192 $ 1,217 $ 1,075 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The Company’s income tax provision consists of the following: Years Ended December 31, 2017 2016 Current: Federal $ $ State Deferred: Federal State Total $ $ |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the income tax provision computed at the statutory Federal income tax rate to our effective income tax rate follows (in percent): Years Ended December 31, 2017 2016 Federal statutory rate (34) % (34) % State statutory rate (7) (7) Reduction in Federal rate due to tax reform 259 Change in Valuation Allowance (214) 43 Permanent Differences (2) (2) Effective income tax rate 0 % 0 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets (liabilities) are comprised of the following: December 31, 2017 2016 (In thousands) Account receivable reserves $ 4 $ 6 Inventory reserves 685 944 Inventory capitalization 101 129 Depreciation 291 401 Loss carry forwards 2,371 3,435 Gross deferred tax assets 3,452 4,915 Valuation allowance (3,452) (4,915) Net deferred tax asset $ $ |
Equity Compensation Program a28
Equity Compensation Program and Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following range of weighted-average assumptions were used for to determine the fair value of stock option grants during the years ended December 31, 2017 and 2016: Years Ended December 31, 2017 2016 Dividend yield % % Volatility 133 - 134 % 128 % Risk-free interest rate 2.2 - 2.3 % 2.1 % Expected life 10 years 10 years |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted Average Weighted Remaining Average Contractual Aggregate Exercise Term Intrinsic Options Price (In Years) Value(a) Outstanding as of January 1, 2016 699,604 $ .71 Granted 163,500 .35 Exercised Forfeited /Expired (102,890) $ .92 Outstanding as of December 31, 2016 (b) 760,214 $ .60 4.8 109,168 Granted 180,000 .58 Exercised (8,333) .25 Forfeited /Expired (28,873) 1.09 Outstanding as of December 31, 2017 b) 903,008 $ .58 5.2 648,410 Exercisable as of December 31, 2017 572,513 $ .65 3.7 288,789 (a) Intrinsic value for purposes of this table represents the amount by which the fair value of the underlying stock, based on the respective market prices as of December 31, 2017 exceeds the exercise prices of the respective options. All of the options used in the calculation of the aggregate intrinsic value for outstanding options are exercisable as of December 31, 2017. (b) Based on the Company’s historical forfeiture rate, the number of options expected to vest is the same as the total outstanding at December 31, 2017. |
Share Based Compensation Arrangement By Share Based Payment Award Options Non Vested [Table Text Block] | The following table represents non-vested stock options granted, vested, and forfeited for the year ended December 31, 2017. Non-vested Options Options Weighted-Average Grant- Non-vested - January 1, 2017 272,167 .28 Granted 180,000 .56 Vested (121,672) .27 Forfeited Non-vested December 31, 2017 330,495 .44 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table summarizes information about stock options outstanding at December 31, 2017: Options Outstanding Options Exercisable Weighted Average Weighted Weighted Remaining Average Average Range of Number Contractual Exercise Number Exercise Exercise Price Outstanding Life in Years Price Outstanding Price $0.18 - $0.35 411,667 7.1 $ .29 261,172 $ .28 $0.50 - $1.00 476,400 4.8 $ .80 296,400 $ .93 $1.50 - $1.75 14,941 1.1 $ 1.75 14,941 $ 1.75 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class [Table Text Block] | a. 2010 Equity compensation plan 4,000,000 2000 Equity compensation plan 95,641 Subordinated convertible notes 2,500,000 Warrants issuable on conversion of Subordinated convertible notes 1,875,000 8,470,641 |
Nature of Business and Operat30
Nature of Business and Operations and Summary of Significant Accounting Policies and Estimates (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Nature of Business and Operations and Summary of Significant Accounting Policies and Estimates [Line Items] | ||||
Amortization Period of Leasehold Improvements | 10 years | |||
Advertising Expense | $ 11,000 | $ 7,000 | ||
Working Capital (Deficit) | 3,060,715 | |||
Cash and Cash Equivalents, at Carrying Value, Total | $ 799,953 | $ 973,333 | $ 673,685 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | ||
Scenario, Plan [Member] | ||||
Nature of Business and Operations and Summary of Significant Accounting Policies and Estimates [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||
Sales Revenue, Net [Member] | ||||
Nature of Business and Operations and Summary of Significant Accounting Policies and Estimates [Line Items] | ||||
Concentration Risk, Percentage | 34.60% | |||
Customer One [Member] | Sales Revenue, Net [Member] | ||||
Nature of Business and Operations and Summary of Significant Accounting Policies and Estimates [Line Items] | ||||
Concentration Risk, Percentage | 14.90% | 10.50% | ||
Customer Two [Member] | Sales Revenue, Net [Member] | ||||
Nature of Business and Operations and Summary of Significant Accounting Policies and Estimates [Line Items] | ||||
Concentration Risk, Percentage | 14.40% |
Inventories, net (Details)
Inventories, net (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 1,174,000 | $ 1,041,000 |
Work in process, including manufactured parts and components | 1,462,000 | 1,115,000 |
Finished goods | 560,000 | 584,000 |
Inventories, net | $ 3,196,001 | $ 2,739,864 |
Inventories, net (Details Textu
Inventories, net (Details Textual) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Inventory Valuation Reserves | $ 2,447,000 | $ 2,249,000 |
Plant and Equipment (Details)
Plant and Equipment (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 14,726,638 | $ 14,607,155 |
Less accumulated depreciation and amortization | (14,013,850) | (13,729,985) |
Total plant and equipment | 712,788 | 877,170 |
Office and Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,333,000 | 1,318,000 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 11,118,000 | 11,013,000 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,276,000 | $ 2,276,000 |
Plant and Equipment (Details Te
Plant and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 284,000 | $ 366,000 |
Property, Plant and Equipment, Disposals | 0 | |
Proceeds From Sale Of Property, Plant, and Equipment | $ 24,000 | $ 0 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,130,000 | $ 1,130,000 |
Accumulated Amortization | (1,060,000) | (979,000) |
Net Carrying Amount | 70,219 | 151,402 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 550,000 | 550,000 |
Accumulated Amortization | (535,000) | (495,000) |
Net Carrying Amount | 15,000 | 55,000 |
Completed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 363,000 | 363,000 |
Accumulated Amortization | (348,000) | (322,000) |
Net Carrying Amount | 15,000 | 41,000 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 187,000 | 187,000 |
Accumulated Amortization | (173,000) | (160,000) |
Net Carrying Amount | 14,000 | 27,000 |
Licensed Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 30,000 | 30,000 |
Accumulated Amortization | (4,000) | (2,000) |
Net Carrying Amount | $ 26,000 | $ 28,000 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $ 81,000 | $ 80,000 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 46,000 | |
Finite-Lived Intangible Asset, Weighted Average Period before Next Renewal or Extension | 2 years 3 months 18 days | |
Finite-Lived Intangible Assets, Net, Total | $ 70,219 | $ 151,402 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | $ 2,000 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) | 12 Months Ended | |
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | |
Clarex [Member] | ||
Related Party Transaction [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |
Warrants To Purchase Common Stock Number Of Shares Per Warrant | shares | 0.75 | |
Investment Warrants, Exercise Price | $ / shares | $ 1.35 | |
Convertible Subordinated Debt [Member] | ||
Related Party Transaction [Line Items] | ||
Dividends and Interest Paid | $ 112,500 | $ 112,500 |
Interest Payable | 112,500 | $ 75,000 |
Convertible Subordinated Debt [Member] | Clarex [Member] | ||
Related Party Transaction [Line Items] | ||
Convertible Subordinated Debt | $ 1,500,000 | |
Debt Instrument, Convertible, Number of Equity Instruments | 1,500,000 | |
Convertible Subordinated Debt [Member] | Affiliate Of Clarex [Member] | ||
Related Party Transaction [Line Items] | ||
Convertible Subordinated Debt | $ 1,000,000 | |
Debt Instrument, Maturity Date | Apr. 1, 2019 | |
Debt Instrument, Convertible, Number of Equity Instruments | 1,000,000 |
Other Long-Term Notes (Details)
Other Long-Term Notes (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Note Payable | $ 270,000 | $ 378,000 |
Less current portion | (12,486) | (107,801) |
Other Long-Term Notes, excluding current portion | 257,738 | 270,722 |
Term Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Note Payable | 0 | 96,000 |
U.S. Small Business Administration Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Note Payable | $ 270,000 | $ 282,000 |
Other Long-Term Notes (Details
Other Long-Term Notes (Details 1) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
2,018 | $ 12 | |
2,019 | 12 | |
2,020 | 13 | |
2,021 | 13 | |
Thereafter | 220 | |
Other Notes Payable, Total | $ 270 | $ 378 |
Other Long-Term Notes (Detail40
Other Long-Term Notes (Details Textual) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Term Note Payable [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Periodic Payment | $ 13,953 |
Debt Instrument, Interest Rate, Stated Percentage | 4.35% |
U.S. Small Business Administration Note Payable [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Frequency of Periodic Payment | 1,922 |
Debt Instrument, Interest Rate, Stated Percentage | 4.00% |
Accounts Payable and Accrued 41
Accounts Payable and Accrued Liabilities (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Payable And Accrued Liabilities [Line Items] | ||
Trade accounts payable and accrued purchases | $ 740,000 | $ 630,000 |
Accrued payroll | 121,000 | 124,000 |
Accrued 401K company matching contribution | 143,000 | 129,000 |
Accrued expenses - other | 213,000 | 192,000 |
Accounts Payable and Accrued Liabilities, Current, Total | $ 1,217,157 | $ 1,074,671 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | 0 | 0 |
Deferred: | ||
Federal | 0 | 0 |
State | 0 | 0 |
Total | $ 0 | $ 0 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Federal statutory rate | (34.00%) | (34.00%) |
State statutory rate | (7.00%) | (7.00%) |
Reduction in Federal rate due to tax reform | 259.00% | 0.00% |
Change in Valuation Allowance | (214.00%) | 43.00% |
Permanent Differences | (2.00%) | (2.00%) |
Effective income tax rate | 0.00% | 0.00% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Line Items] | ||
Account receivable reserves | $ 4 | $ 6 |
Inventory reserves | 685 | 944 |
Inventory capitalization | 101 | 129 |
Depreciation | 291 | 401 |
Loss carry forwards | 2,371 | 3,435 |
Gross deferred tax assets | 3,452 | 4,915 |
Valuation allowance | (3,452) | (4,915) |
Net deferred tax asset | $ 0 | $ 0 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | |||
Operating Loss Carryforwards Expiration Date Description | 2,037 | ||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 302,000 | $ 151,000 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | |
Increase Decrease In Deferred Tax Assets | $ 1,765,000 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 1,765,000 | ||
Scenario, Plan [Member] | |||
Income Tax Disclosure [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||
Domestic Tax Authority [Member] | |||
Income Tax Disclosure [Line Items] | |||
Operating Loss Carryforwards | 9,435,000 | $ 9,194,000 | |
State and Local Jurisdiction [Member] | |||
Income Tax Disclosure [Line Items] | |||
Operating Loss Carryforwards | $ 5,977,000 | $ 4,969,000 |
Equity Compensation Program a46
Equity Compensation Program and Stock-based Compensation (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Volatility | 128.00% | |
Risk-free interest rate | 2.10% | |
Expected life | 10 years | 10 years |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 134.00% | |
Risk-free interest rate | 2.30% | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 133.00% | |
Risk-free interest rate | 2.20% |
Equity Compensation Program a47
Equity Compensation Program and Stock-based Compensation (Details 1) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted Average Exercise Price Options, Outstanding at the Beginning of the period (in dollars per share) | $ 0.60 | [1] | $ 0.71 | |
Weighted Average Exercise Price per Option, Granted | 0.58 | 0.35 | ||
Weighted Average Exercise Price per Option, Exercised | 0.25 | 0 | ||
Weighted Average Exercise Price per Option, Forfeited /Expired | 1.09 | 0.92 | ||
Weighted Average Exercise Price Options, Outstanding at the End of the period (in dollars per share) | [1] | 0.58 | $ 0.60 | |
Weighted Average Exercise Price per Option, Exercisable as of December 31, 2017 | $ 0.65 | |||
Weighted Average Remaining Contractual Term, Options Outstanding | [1] | 5 years 2 months 12 days | 4 years 9 months 18 days | |
Weighted Average Remaining Contractual Term, Exercisable at December 31, 2017 | 3 years 8 months 12 days | |||
Aggregate Intrinsic Value, Options Outstanding (in dollars) | [1],[2] | $ 648,410 | $ 109,168 | |
Aggregate Intrinsic Value, Options Exercisable at December 31, 2017 (in dollars) | [2] | $ 288,789 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, Outstanding at the Beginning of the period | 760,214 | [1] | 699,604 | |
Options, Granted | 180,000 | 163,500 | ||
Options, Exercised | (8,333) | 0 | ||
Option, Forfeited /Expired | (28,873) | (102,890) | ||
Options, Outstanding at the End of the period | [1] | 903,008 | 760,214 | |
Options, Exercisable as of December 31, 2017 | 572,513 | |||
[1] | Based on the Company’s historical forfeiture rate, the number of options expected to vest is the same as the total outstanding at December 31, 2017. | |||
[2] | Intrinsic value for purposes of this table represents the amount by which the fair value of the underlying stock, based on the respective market prices as of December 31, 2017 exceeds the exercise prices of the respective options. All of the options used in the calculation of the aggregate intrinsic value for outstanding options are exercisable as of December 31, 2017. |
Equity Compensation Program a48
Equity Compensation Program and Stock-based Compensation (Details 2) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options - Non-vested - January 1, 2017 | shares | 272,167 |
Options - Granted | shares | 180,000 |
Options - Vested | shares | (121,672) |
Options - Forfeited | shares | 0 |
Options - Non-vested - December 31, 2017 | shares | 330,495 |
Weighted-Average Grant-Date Fair Value - Non-vested at January 1, 2017 (in dollars per share) | $ / shares | $ 0.28 |
Weighted-Average Grant-Date Fair Value - Granted (in dollars per share) | $ / shares | 0.56 |
Weighted-Average Grant-Date Fair Value - Vested (in dollars per share) | $ / shares | 0.27 |
Weighted-Average Grant-Date Fair Value - Forfeited (in dollars per share) | $ / shares | 0 |
Weighted-Average Grant-Date Fair Value - Non-vested at December 31, 2017 (in dollars per share) | $ / shares | $ 0.44 |
Equity Compensation Program a49
Equity Compensation Program and Stock-based Compensation (Details 3) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Exercise Price Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Lower Range | $ 0.18 |
Exercise Price, Upper Range | $ 0.35 |
Options Outstanding, Number | shares | 411,667 |
Outstanding Options, Weighted Average Remaining Contractual Life in Years | 7 years 1 month 6 days |
Outstanding Options, Weighted Average Exercise Price | $ 0.29 |
Options Exercisable, Number Outstanding | shares | 261,172 |
Options Exercisable, Weighted Average Exercise Price | $ 0.28 |
Exercise Price Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Lower Range | 0.50 |
Exercise Price, Upper Range | $ 1 |
Options Outstanding, Number | shares | 476,400 |
Outstanding Options, Weighted Average Remaining Contractual Life in Years | 4 years 9 months 18 days |
Outstanding Options, Weighted Average Exercise Price | $ 0.80 |
Options Exercisable, Number Outstanding | shares | 296,400 |
Options Exercisable, Weighted Average Exercise Price | $ 0.93 |
Exercise Price Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Lower Range | 1.50 |
Exercise Price, Upper Range | $ 1.75 |
Options Outstanding, Number | shares | 14,941 |
Outstanding Options, Weighted Average Remaining Contractual Life in Years | 1 year 1 month 6 days |
Outstanding Options, Weighted Average Exercise Price | $ 1.75 |
Options Exercisable, Number Outstanding | shares | 14,941 |
Options Exercisable, Weighted Average Exercise Price | $ 1.75 |
Equity Compensation Program a50
Equity Compensation Program and Stock-based Compensation (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Options Grants In Period Weighted Average Grant Date Fair Value | $ 0.56 | $ 0.34 |
Equity Compensation 2010 Program [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,000,000 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 89,000 | $ 49,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition (in years) | 1 year 4 months 24 days | 1 year 6 months |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $ 34,000 | $ 21,000 |
Allocated Share-based Compensation Expense | 60,000 | 30,000 |
Employee Stock Option [Member] | Cost of Sales [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 17,000 | 7,000 |
Employee Stock Option [Member] | Selling, General and Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 43,000 | $ 23,000 |
Net (Loss) per Share (Details T
Net (Loss) per Share (Details Textual) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 903,008 | 760,214 |
Convertible Notes Payable [Member] | Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,875,000 | 1,875,000 |
Convertible Notes Payable [Member] | Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,500,000 | 2,500,000 |
Commitments (Details Textual)
Commitments (Details Textual) | 12 Months Ended | |
Dec. 31, 2017USD ($)ft²shares | Dec. 31, 2016USD ($) | |
Commitments Disclosure [Line Items] | ||
Operating Leases, Rent Expense | $ 283,000 | $ 284,000 |
Real Estate Taxes and Insurance, Total | $ 91,000 | 89,000 |
Area of Land | ft² | 42,000 | |
Operating Leases, Future Minimum Payments Due | $ 117,942 | |
Retirement Plans [Member] | ||
Commitments Disclosure [Line Items] | ||
Defined Contribution Plan Employer Matching Contribution In Cash | 356,323 | |
Defined Contribution Plan Employer Matching Contribution (In Shares) | shares | 148,381 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $ 123,706 | $ 124,289 |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 70.00% |
Product Sales, Foreign Sales 53
Product Sales, Foreign Sales and Sales to Major Customers (Details Textual) - Sales Revenue, Net [Member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 34.60% | |
Customers In Europe Asia Japan [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 32.50% | 23.10% |
Major Customers One [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 14.80% | 10.50% |
Major Customers Two [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 14.30% | 1.60% |
Major Customers Three [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 5.60% | 3.50% |
Top Five Customers [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 45.10% | 37.80% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) | Dec. 31, 2017shares |
Class of Stock [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 8,470,641 |
Convertible Subordinated Notes [Member] | |
Class of Stock [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 2,500,000 |
Equity Compensation Plan 2010 [Member] | |
Class of Stock [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 4,000,000 |
Equity Compensation Plan 2000 [Member] | |
Class of Stock [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 95,641 |
Warrants Issuable On Conversion Of Subordinated Convertible Notes [Member] | |
Class of Stock [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 1,875,000 |
Fair Value of Financial Instr55
Fair Value of Financial Instruments (Details Textual) | Dec. 31, 2017USD ($) |
Long-term Debt, Gross | $ 2,770,000 |
Long-term Debt, Fair Value | $ 2,645,000 |