Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 05, 2021 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000722313 | |
Entity Registrant Name | NORTECH SYSTEMS INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-13257 | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-1681094 | |
Entity Address, Address Line One | 7550 Meridian Circle N., SuiteĀ # 150 | |
Entity Address, City or Town | Maple Grove | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55369 | |
City Area Code | 952 | |
Local Phone Number | 345-2244 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | NSYS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,672,064 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net sales | $ 29,452 | $ 26,362 | $ 81,706 | $ 80,263 |
Cost of Goods Sold | 21,411 | 24,400 | 68,519 | 72,336 |
Gross Profit | 8,041 | 1,962 | 13,187 | 7,927 |
Operating Expenses | ||||
Selling Expenses | 449 | 594 | 1,741 | 1,945 |
General and Administrative Expenses | 2,045 | 2,480 | 7,247 | 6,654 |
Research and Development | 141 | 0 | 348 | 0 |
Restructuring | 23 | 0 | 319 | 0 |
Loss on Abandonment of Intangible Asset | 560 | 0 | 560 | 0 |
Gain on Sale of Assets | (93) | (3,821) | (176) | (3,821) |
Total Operating Expenses | 3,125 | (747) | 10,039 | 4,778 |
Income From Operations | 4,916 | 2,709 | 3,148 | 3,149 |
Other Expense | ||||
Interest Expense | (112) | (126) | (314) | (526) |
Income Before Income Taxes | 4,804 | 2,583 | 2,834 | 2,623 |
Income Tax Expense | 1,247 | 612 | 646 | 638 |
Net Income | $ 3,557 | $ 1,971 | $ 2,188 | $ 1,985 |
Net Income Per Common Share - Basic (in dollars per share) | $ 1.33 | $ 0.74 | $ 0.82 | $ 0.75 |
Weighted Average Number of Common Shares Outstanding - Basic (in shares) | 2,665,682 | 2,657,530 | 2,662,066 | 2,657,530 |
Net Income Per Common Share - Diluted (in dollars per share) | $ 1.24 | $ 0.73 | $ 0.78 | $ 0.74 |
Weighted Average Number of Common Shares Outstanding - Diluted (in shares) | 2,880,073 | 2,703,029 | 2,806,958 | 2,670,984 |
Other Comprehensive Income | ||||
Foreign Currency Translation Gain (Loss) | $ (5) | $ 96 | $ 20 | $ 54 |
Comprehensive Income, Net of Tax | $ 3,552 | $ 2,067 | $ 2,208 | $ 2,039 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Current Assets | |||
Cash | $ 444 | $ 352 | [1] |
Restricted Cash | 999 | 3,212 | [1] |
Accounts Receivable, less allowances of $361 and $343 | 13,931 | 15,625 | [1] |
Employee Retention Credit Receivable | 5,209 | 0 | |
Inventories, Net | 20,643 | 13,917 | |
Contract Assets | 8,145 | 5,899 | [1] |
Income Taxes Receivable | 0 | 547 | [1] |
Prepaid Expenses and Other Current Assets | 1,763 | 1,485 | [1] |
Total Current Assets | 51,134 | 41,037 | [1] |
Property and Equipment, Net | 5,803 | 6,426 | [1] |
Operating Lease Assets | 9,052 | 8,998 | [1] |
Other Intangible Assets, Net | 524 | 1,173 | [1] |
Total Assets | 66,513 | 57,634 | [1] |
Current Liabilities | |||
Current Maturities of Line of Credit | 6,009 | 0 | |
Current Maturities of Long-Term Debt | 3,198 | 1,204 | [1] |
Current Portion of Finance Lease Obligations | 613 | 660 | |
Current Portion of Operating Lease Obligations | 1,023 | 688 | [1] |
Accounts Payable | 14,140 | 11,239 | [1] |
Accrued Payroll and Commissions | 4,407 | 2,870 | [1] |
Other Accrued Liabilities | 3,323 | 2,875 | [1] |
Income Tax Payable | 168 | 0 | |
Total Current Liabilities | 32,881 | 19,536 | [1] |
Long-Term Liabilities | |||
Long-Term Line of Credit | 0 | 3,328 | [1] |
Long-Term Debt, Net | 3,039 | 5,865 | |
Long Term Finance Lease Obligations, Net | 707 | 1,152 | |
Long-Term Operating Lease Obligations, Net | 8,744 | 8,889 | |
Other Long-Term Liabilities | 106 | 146 | [1] |
Total Long-Term Liabilities | 12,596 | 19,380 | [1] |
Total Liabilities | 45,477 | 38,916 | [1] |
Shareholders' Equity | |||
Preferred Stock, $1 par value; 1,000,000 Shares Authorized: 250,000 Shares Issued and Outstanding | 250 | 250 | [1] |
Common Stock - $0.01 par value; 9,000,000 Shares Authorized: 2,672,064 and 2,659,628 Shares Issued and Outstanding, respectively | 27 | 27 | [1] |
Additional Paid-In Capital | 15,926 | 15,816 | [1] |
Accumulated Other Comprehensive Loss | (17) | (37) | [1] |
Retained Earnings | 4,850 | 2,662 | [1] |
Total Shareholders' Equity | 21,036 | 18,718 | [1] |
Total Liabilities and Shareholders' Equity | $ 66,513 | $ 57,634 | [1] |
[1] | The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | [1] |
Accounts receivable allowance | $ 361 | $ 343 | |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | |
Preferred Stock, Shares Authorized (in shares) | 1,000,000 | 1,000,000 | |
Preferred stock, shares issued (in shares) | 250,000 | 250,000 | |
Preferred stock, shares outstanding (in shares) | 250,000 | 250,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 9,000,000 | 9,000,000 | |
Common stock, shares issued (in shares) | 2,672,064 | 2,659,628 | |
Common stock, shares outstanding (in shares) | 2,672,064 | 2,659,628 | |
[1] | The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows From Operating Activities | ||
Net Income | $ 2,188 | $ 1,985 |
Adjustments to Reconcile Net Income to Net Cash | ||
Depreciation and Amortization | 1,506 | 1,703 |
Compensation on Stock-Based & Equity Awards | 201 | 151 |
Change in Accounts Receivable Allowance | 18 | 158 |
Change in Inventory Reserves | (959) | 398 |
Loss on Abandonment of Intangible Asset | 560 | 0 |
Gain on Disposal of Property and Equipment | (176) | (3,821) |
Changes in Current Operating Items | ||
Accounts Receivable | 1,686 | 2,430 |
Employee Retention Credit Receivable | (5,209) | 0 |
Inventories | (5,755) | (567) |
Contract Assets | (2,246) | 325 |
Prepaid Expenses and Other Current Assets | (276) | 858 |
Income Taxes | 708 | 0 |
Accounts Payable | 2,901 | (2,808) |
Accrued Payroll and Commissions | 1,537 | (621) |
Other Accrued Liabilities | 464 | (290) |
Net Cash Used In Operating Activities | (2,852) | (99) |
Cash Flows from Investing Activities | ||
Proceeds from Sale of Property and Equipment | 626 | 6,019 |
Purchase of Intangible Asset | (49) | (25) |
Purchases of Property and Equipment | (1,198) | (397) |
Net Cash (Used In) Provided By Investing Activities | (621) | 5,597 |
Cash Flows from Financing Activities | ||
Net Change in Line of Credit | 2,681 | (7,542) |
Proceeds from Long-term Debt | 0 | 6,077 |
Principal Payments on Long-Term Debt | (873) | (2,567) |
Principal Payments on Finance Leases | (492) | (432) |
Stock Option Exercises | 36 | 0 |
Net Cash Provided By (Used In) Financing Activities | 1,352 | (4,464) |
Net Change in Cash | (2,121) | 1,034 |
Cash - Beginning of Period | 3,564 | 660 |
Cash - Ending of Period | 1,443 | 1,694 |
Reconciliation of cash and restricted cash reported within the condensed consolidated balance sheets | ||
Cash | 444 | 328 |
Restricted Cash | 999 | 1,366 |
Cash - Ending of Period | 1,443 | 1,694 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid During the Period for Interest | 220 | 526 |
Cash Paid (Refunded) During the Period for Income Taxes | (114) | 262 |
Supplemental Noncash Investing and Financing Activities: | ||
Property and Equipment Purchases in Accounts Payable | 0 | 6 |
Property Acquired under Operating Lease | 858 | 4,685 |
Equipment Acquired under Finance Lease | $ 0 | $ 395 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total | |
BALANCE at Dec. 31, 2019 | $ 250 | $ 27 | $ 15,748 | $ (257) | $ 4,208 | $ 19,976 | |
Net Income (loss) | 0 | 0 | 0 | 0 | 1,985 | 1,985 | |
Foreign currency translation adjustment | 0 | 0 | 0 | 54 | 0 | 54 | |
Compensation on stock-based awards | 0 | 0 | 111 | 0 | 0 | 111 | |
Net Income | 0 | 0 | 0 | 0 | 1,985 | 1,985 | |
BALANCE at Sep. 30, 2020 | 250 | 27 | 15,859 | (203) | 6,193 | 22,126 | |
BALANCE at Jun. 30, 2020 | 250 | 27 | 15,823 | (299) | 4,222 | 20,023 | |
Net Income (loss) | 0 | 0 | 0 | 0 | 1,971 | 1,971 | |
Foreign currency translation adjustment | 0 | 0 | 0 | 96 | 0 | 96 | |
Compensation on stock-based awards | 0 | 0 | 36 | 0 | 0 | 36 | |
Net Income | 0 | 0 | 0 | 0 | 1,971 | 1,971 | |
BALANCE at Sep. 30, 2020 | 250 | 27 | 15,859 | (203) | 6,193 | 22,126 | |
BALANCE at Dec. 31, 2020 | 250 | 27 | 15,816 | (37) | 2,662 | 18,718 | [1] |
Net Income (loss) | 0 | 0 | 0 | 0 | 2,188 | 2,188 | |
Foreign currency translation adjustment | 0 | 0 | 0 | 20 | 0 | 20 | |
Compensation on stock-based awards | 0 | 0 | 74 | 0 | 0 | 74 | |
Net Income | 0 | 0 | 0 | 0 | 2,188 | 2,188 | |
Stock option exercises | 0 | 0 | 36 | 0 | 0 | 36 | |
BALANCE at Sep. 30, 2021 | 250 | 27 | 15,926 | (17) | 4,850 | 21,036 | |
BALANCE at Jun. 30, 2021 | 250 | 27 | 15,862 | (12) | 1,293 | 17,420 | |
Net Income (loss) | 0 | 0 | 0 | 0 | 3,557 | 3,557 | |
Foreign currency translation adjustment | 0 | 0 | 0 | (5) | 0 | (5) | |
Compensation on stock-based awards | 0 | 0 | 28 | 0 | 0 | 28 | |
Net Income | 0 | 0 | 0 | 0 | 3,557 | 3,557 | |
Stock option exercises | 0 | 0 | 36 | 0 | 0 | 36 | |
BALANCE at Sep. 30, 2021 | $ 250 | $ 27 | $ 15,926 | $ (17) | $ 4,850 | $ 21,036 | |
[1] | The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements for the interim periods have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (āGAAPā) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not not 10 December 31, 2020. not The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In preparing these condensed consolidated financial statements, we have made our best estimates and judgments of certain amounts included in the condensed consolidated financial statements, giving due consideration to materiality. Changes in the estimates and assumptions used by us could have a significant impact on our financial results, since actual results could differ from those estimates. Principles of Consolidation The condensed consolidated financial statements include the accounts of Nortech Systems Incorporated and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Revenue Recognition Our revenue is comprised of product, engineering services and repair services. All revenue is recognized when the Company satisfies its performance obligation(s) under the contract by transferring the promised product or service to our customer either when (or as) our customer obtains control of the product or service, with the majority of our revenue being recognized over time including goods produced under contract manufacturing agreements and services revenue. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contractās transaction price is allocated to each distinct performance obligation. The majority of our contracts have a single performance obligation. Revenue is recorded net of returns, allowances and customer discounts. Our net sales for services were less than 10% Stock-Based Awards Following is the status of all stock options as of September 30, 2021: Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding - January 1, 2021 362,640 $ 3.96 Granted 27,000 6.14 Exercised (13,400 ) 3.43 Cancelled (10,340 ) 3.42 Outstanding - September 30, 2021 365,900 $ 4.15 7.25 $ 2,688 Exercisable - September 30, 2021 180,500 $ 3.75 6.56 $ 1,398 In May 2017, 2017 March 2020 May 2021 nine September 30, 2021 2020, Total compensation expense related to stock options for the three nine September 30, 2021 three nine September 30, 2020 September 30, 2021, In November 2010, ā2010 2010 not March 11, 2015. nine September 30, 2021 2020, no three nine September 30, 2021, three nine September 30, 2020. September 30, 2021 $235. Net Income per Common Share For the three nine September 30, 2021, three nine September 30, 2020, Restricted Cash Cash and cash equivalents classified as restricted cash on our condensed consolidated balance sheets are restricted as to withdrawal or use under the terms of certain contractual agreements. The September 30, 2021 Accounts Receivable and Allowance for Doubtful Accounts Credit is extended based upon an evaluation of the customerās financial condition and, while collateral is not September 30, 2021 December 31, 2020. Employee Retention Credit (ERC) and Payroll Tax Deferral We qualified for Employee Retention Credits on qualified wages paid in the first second 2021 three nine September 30, 2021, The CARES Act allowed for the deferral of the employer portion of social security taxes incurred through the end of calendar 2020. September 30, 2021, 50% December 2021 50% December 2022. Inventories, Net Inventories are stated at the lower of cost ( first first may Inventories are as follows: September 30, December 31, 2021 2020 Raw Materials $ 19,673 $ 14,865 Work in Process 1,683 969 Finished Goods 485 242 Reserves (1,199 ) (2,159 ) Total $ 20,643 $ 13,917 Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Additions, improvements and major renewals are capitalized, while maintenance and minor repairs are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in operations. Leasehold improvements are depreciated over the shorter of their estimated useful lives or their remaining lease terms. All other property and equipment are depreciated by the straight-line method over their estimated useful lives. Other Intangible Assets Other intangible assets at September 30, 2021 December 31, 2020 Customer Relationships Trade Names Patents Total Balance at January 1, 2020 $ 651 $ 631 $ 56 $ 1,338 Additions - - 20 20 Amortization (144 ) (41 ) - (185 ) Balance at December 31, 2020 $ 507 $ 590 $ 76 $ 1,173 Additions - - 50 50 Amortization (109 ) (30 ) - (139 ) Abandonment Loss - (560 ) - (560 ) Balance at September 31, 2021 $ 398 $ - $ 126 $ 524 In the three September 30, 2021, not zero Intangible assets are amortized on a straight-line bases over their estimated useful lives. The weighted average remaining amortization period of our intangible assets is 3.0 years. Patents are not not Amortization expense for the three nine September 30, 2021 Estimated future annual amortization expense ( not Year Amount Remainder of 2021 $ 36 2022 145 2023 145 2024 72 Total $ 398 Reclassification Certain reclassifications have been made to the prior yearās consolidated financial statements to enhance comparability with the current yearās financial statements. As a result, certain line items have been amended in the statement of operations. Comparative figures have been adjusted to conform to the current yearās presentation. The items were reclassified as follows: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Previously After Previously After Cost of Goods Sold $ 24,717 $ 24,400 $ 73,171 $ 72,336 General and Administrative Expenses 2,164 2,480 5,819 6,654 Accounting Pronouncements Issued But Not In June 2016, No. 2016 13, 326 December 15, 2022; In March 2020, 2020 04, 2020 04 2020 04 March 12, 2020 December 31, 2022. not |
Note 2 - Concentration of Credi
Note 2 - Concentration of Credit Risk and Major Customers | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE 2. Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and accounts receivable. With regard to cash, we maintain our excess cash balances in checking accounts at primarily two one one may September 30, 2021, not 10% 10% three September 30, 2021, two three September 30, 2020, one September 30, 2021 2020, one At September 30, 2021, 36% December 31, 2020, one Export sales represented approximately 3% of net sales for the three September 30, 2021 2020. nine September 30, 2021 2020. |
Note 3 - Revenue
Note 3 - Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE 3. Revenue recognition Our revenue is comprised of product, engineering services and repair services. All revenue is recognized when the Company satisfies its performance obligation(s) under the contract by transferring the promised product or service to our customer either when (or as) our customer obtains control of the product or service, with the majority of our revenue being recognized over time including goods produced under contract manufacturing agreements and services revenue. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contractās transaction price is allocated to each distinct performance obligation. The majority of our contracts have a single performance obligation, as the promise to transfer products or services is not not no not three nine September 30, 2021, three nine September 30, 2020, no Contract Assets Contract assets, recorded as such in the Condensed Consolidated Balance Sheet, consist of unbilled amounts related to revenue recognized over time. Significant changes in the contract assets balance during the nine September 30, 2021 Nine Months Ended September 30, 2021 Outstanding at January 1, 2021 $ 5,899 Increase (decrease) attributed to: Transferred to receivables from contract assets recognized (5,140 ) Product transferred over time 7,387 Outstanding at September 30, 2021 $ 8,145 We expect substantially all the remaining performance obligations for the contract assets recorded as of September 30, 2021, 90 The following tables summarize our net sales by market for the three nine September 30, 2021 2020 Three Months Ended September 30, 2021 Product/ Product Noncash Total Net Sales Medical $ 13,762 $ 2,933 $ 282 $ 16,977 Aerospace and Defense 2,883 144 65 3,092 Industrial 7,468 1,757 158 9,383 Total Net Sales $ 24,113 $ 4,834 $ 505 $ 29,452 Nine Months Ended September 30, 2021 Product/ Product Noncash Total Net Sales Medical $ 35,497 $ 8,876 $ 1,017 $ 45,390 Aerospace and Defense 9,685 527 327 10,539 Industrial 20,385 4,832 560 25,777 Total Net Sales $ 65,567 $ 14,235 $ 1,904 $ 81,706 Three Months Ended September 30, 2020 Product/ Product Noncash Total Net Sales Medical $ 10,960 $ 1,853 $ 1,405 $ 14,218 Aerospace and Defense 5,525 16 665 6,206 Industrial 4,527 791 620 5,938 Total Net Sales $ 21,012 $ 2,660 $ 2,690 $ 26,362 Nine Months Ended September 30, 2020 Product/ Product Noncash Total Net Sales Medical $ 35,835 $ 4,454 $ 2,464 $ 42,753 Aerospace and Defense 14,160 396 953 15,509 Industrial 17,434 3,354 1,213 22,001 Total Net Sales $ 67,429 $ 8,204 $ 4,630 $ 80,263 |
Note 4 - Financing Arrangements
Note 4 - Financing Arrangements | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 4. We have a credit agreement with Bank of America which was entered into on June 15, 2017, five December 29, 2017, August 13, 2019, November 12, 2019, August 27, 2020, December 1, 2020 June 15, 2022. June 15, 2022. September 30, 2021, June 15, 2022. September 30, 2021 December 31, 2020, September 30, 2021 December 31, 2020, September 30, 2021 December 31, 2020, no The line of credit and real estate term notes with Bank of America contain certain covenants which, among other things, require us to adhere to regular reporting requirements, abide by annual shareholder dividend limitations, maintain certain financial performance, and limit the amount of annual capital expenditures. The availability under our line is subject to borrowing base requirements, and advances are at the discretion of the lender. The line of credit is secured by substantially all of our assets. The Bank of America Credit Agreement provides for, among other things, a Fixed Charge Coverage Ratio of not 1.0, twelve December 31, 2020 $2,000 30 December 2020. September 30, 2021. The availability under the line is subject to borrowing base requirements, and advances are at the discretion of the lender. At September 30, 2021, On April 15, 2020, April 22, 2020. 2 1% 10 24 60 third 2021. |
Note 5 - Leases
Note 5 - Leases | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Lease Disclosure [Text Block] | NOTE 5. We have operating leases for certain manufacturing sites, office space, and equipment. Most leases include the option to renew, with renewal terms that can extend the lease term from one five not September 30, 2021, not not The components of lease expense were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Lease Cost Operating Lease Cost $ 576 $ 409 $ 1,696 $ 1,118 Finance Lease Interest Cost 18 26 61 79 Finance Lease Amortization Expense 163 163 489 478 Total Lease Cost $ 757 $ 598 $ 2,246 $ 1,675 Supplemental balance sheet information related to leases was as follows: September 30 December 31 Balance Sheet Location 2021 2020 Assets Operating Lease Assets Operating Lease Assets $ 9,052 $ 8,998 Finance Lease Assets Property and Equipment, Net 1,841 2,330 Total Leased Assets $ 10,893 $ 11,328 Liabilities Current Current Operating Lease Liabilities Current Portion of Operating Lease Obligations $ 1,023 $ 688 Current Finance Lease Liabilities Current Portion of Finance Lease Obligations 613 660 Noncurrent Long-Term Operating Lease Liabilities Long-Term Operating Lease Obligations, Net 8,744 8,889 Long Term Finance Lease Liabilities Long Term Finance Lease Obligations, Net 707 1,152 Total Lease Liabilities $ 11,087 $ 11,389 Supplemental cash flow information related to leases was as follows: September 30, 2021 2020 Operating Leases Cash paid for amounts included in the measurement of lease liabilities $ 861 $ 686 Right-of-use assets obtained in exchange for lease obligations $ 858 $ 4,685 Maturities of lease liabilities were as follows: Operating Finance Leases Total Remaining 2021 $ 433 $ 185 $ 618 2022 1,735 587 2,322 2023 1,737 333 2,070 2024 1,408 280 1,688 2025 1,205 26 1,231 Thereafter 8,283 - 8,283 Total Lease Payments $ 14,801 $ 1,411 $ 16,212 Less: Interest (5,034 ) (91 ) (5,125 ) Present Value of Lease Liabilities $ 9,767 $ 1,320 $ 11,087 The lease term and discount rate at September 30, 2021 Weighted-Average Remaining Lease Term (Years) Operating Leases 9.6 Finance Leases 2.6 Weighted-Average Discount Rate Operating Leases 7.8 % Finance Leases 5.1 % |
Note 6 - Income Taxes
Note 6 - Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 6. On a quarterly basis, we estimate what our effective tax rate will be for the full year and record a quarterly income tax provision based on the anticipated rate. As the year progresses, we refine our estimate based on the facts and circumstances, including discrete events, by each tax jurisdiction. The effective tax rate for the three September 30, 2021 three September 30, 2020. nine September 30, 2021 nine September 30, 2020. 2020 not $44k $646k $638k nine September 30, 2021 2020, |
Note 7 - Restructuring Charges
Note 7 - Restructuring Charges | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 7. During the first nine 2021, September 30, 2021. The sale of the Merrifield facility was completed in July 2021. three nine September 30, 2021, |
Note 8 - Related Party Transact
Note 8 - Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE 8. During the nine September 30, 2021, 2020. three nine September 30, 2021, three nine September 30, 2020, third David Kunin, our Chairman, is a minority owner of Abilitech Medical, Inc. Mr. Kunin also was a consultant to Abilitech, which relationship ended on March 1, 2021. 2020, three September 30, 2021 2020, nine September 30, 2021 2020, third David Kunin, our Chairman, is a small minority owner (less than 10%) of Marpe Technologies, LTD an early-stage medical device company dedicated to the early detection of skin cancer through full body scanners. Mr. Kunin is also a member of the Board of Directors of Marpe Technologies. The Company worked with Marpe Technologies to apply for a grant from the Israel-United States Binational Industrial Research and Development Foundation, a legal entity created by Agreement between the Government of the State of Israel and the Government of the United States of America (āBIRD Foundationā). The parties were successful in receiving approval for a $1,000 conditional grant. The Company and Marpe Technologies will each receive $500 from the BIRD Foundation and, among other obligations under the grant, each is required to contribute $500 no not no not September 30, 2021, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements for the interim periods have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (āGAAPā) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not not 10 December 31, 2020. not The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In preparing these condensed consolidated financial statements, we have made our best estimates and judgments of certain amounts included in the condensed consolidated financial statements, giving due consideration to materiality. Changes in the estimates and assumptions used by us could have a significant impact on our financial results, since actual results could differ from those estimates. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The condensed consolidated financial statements include the accounts of Nortech Systems Incorporated and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Revenue [Policy Text Block] | Revenue Recognition Our revenue is comprised of product, engineering services and repair services. All revenue is recognized when the Company satisfies its performance obligation(s) under the contract by transferring the promised product or service to our customer either when (or as) our customer obtains control of the product or service, with the majority of our revenue being recognized over time including goods produced under contract manufacturing agreements and services revenue. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contractās transaction price is allocated to each distinct performance obligation. The majority of our contracts have a single performance obligation. Revenue is recorded net of returns, allowances and customer discounts. Our net sales for services were less than 10% |
Share-based Payment Arrangement [Policy Text Block] | Stock-Based Awards Following is the status of all stock options as of September 30, 2021: Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding - January 1, 2021 362,640 $ 3.96 Granted 27,000 6.14 Exercised (13,400 ) 3.43 Cancelled (10,340 ) 3.42 Outstanding - September 30, 2021 365,900 $ 4.15 7.25 $ 2,688 Exercisable - September 30, 2021 180,500 $ 3.75 6.56 $ 1,398 In May 2017, 2017 March 2020 May 2021 nine September 30, 2021 2020, Total compensation expense related to stock options for the three nine September 30, 2021 three nine September 30, 2020 September 30, 2021, In November 2010, ā2010 2010 not March 11, 2015. nine September 30, 2021 2020, no three nine September 30, 2021, three nine September 30, 2020. September 30, 2021 $235. |
Earnings Per Share, Policy [Policy Text Block] | Net Income per Common Share For the three nine September 30, 2021, three nine September 30, 2020, |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Cash and cash equivalents classified as restricted cash on our condensed consolidated balance sheets are restricted as to withdrawal or use under the terms of certain contractual agreements. The September 30, 2021 |
Accounts Receivable [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts Credit is extended based upon an evaluation of the customerās financial condition and, while collateral is not September 30, 2021 December 31, 2020. |
Employee Retention Credit (ERC) and Payroll Tax Deferral, Policy [Policy Text Block] | Employee Retention Credit (ERC) and Payroll Tax Deferral We qualified for Employee Retention Credits on qualified wages paid in the first second 2021 three nine September 30, 2021, The CARES Act allowed for the deferral of the employer portion of social security taxes incurred through the end of calendar 2020. September 30, 2021, 50% December 2021 50% December 2022. |
Inventory, Policy [Policy Text Block] | Inventories, Net Inventories are stated at the lower of cost ( first first may Inventories are as follows: September 30, December 31, 2021 2020 Raw Materials $ 19,673 $ 14,865 Work in Process 1,683 969 Finished Goods 485 242 Reserves (1,199 ) (2,159 ) Total $ 20,643 $ 13,917 |
Property, Plant and Equipment, Impairment [Policy Text Block] | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Additions, improvements and major renewals are capitalized, while maintenance and minor repairs are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in operations. Leasehold improvements are depreciated over the shorter of their estimated useful lives or their remaining lease terms. All other property and equipment are depreciated by the straight-line method over their estimated useful lives. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Other Intangible Assets Other intangible assets at September 30, 2021 December 31, 2020 Customer Relationships Trade Names Patents Total Balance at January 1, 2020 $ 651 $ 631 $ 56 $ 1,338 Additions - - 20 20 Amortization (144 ) (41 ) - (185 ) Balance at December 31, 2020 $ 507 $ 590 $ 76 $ 1,173 Additions - - 50 50 Amortization (109 ) (30 ) - (139 ) Abandonment Loss - (560 ) - (560 ) Balance at September 31, 2021 $ 398 $ - $ 126 $ 524 In the three September 30, 2021, not zero Intangible assets are amortized on a straight-line bases over their estimated useful lives. The weighted average remaining amortization period of our intangible assets is 3.0 years. Patents are not not Amortization expense for the three nine September 30, 2021 Estimated future annual amortization expense ( not Year Amount Remainder of 2021 $ 36 2022 145 2023 145 2024 72 Total $ 398 |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassification Certain reclassifications have been made to the prior yearās consolidated financial statements to enhance comparability with the current yearās financial statements. As a result, certain line items have been amended in the statement of operations. Comparative figures have been adjusted to conform to the current yearās presentation. The items were reclassified as follows: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Previously After Previously After Cost of Goods Sold $ 24,717 $ 24,400 $ 73,171 $ 72,336 General and Administrative Expenses 2,164 2,480 5,819 6,654 |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements Issued But Not In June 2016, No. 2016 13, 326 December 15, 2022; In March 2020, 2020 04, 2020 04 2020 04 March 12, 2020 December 31, 2022. not |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding - January 1, 2021 362,640 $ 3.96 Granted 27,000 6.14 Exercised (13,400 ) 3.43 Cancelled (10,340 ) 3.42 Outstanding - September 30, 2021 365,900 $ 4.15 7.25 $ 2,688 Exercisable - September 30, 2021 180,500 $ 3.75 6.56 $ 1,398 |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, 2021 2020 Raw Materials $ 19,673 $ 14,865 Work in Process 1,683 969 Finished Goods 485 242 Reserves (1,199 ) (2,159 ) Total $ 20,643 $ 13,917 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Customer Relationships Trade Names Patents Total Balance at January 1, 2020 $ 651 $ 631 $ 56 $ 1,338 Additions - - 20 20 Amortization (144 ) (41 ) - (185 ) Balance at December 31, 2020 $ 507 $ 590 $ 76 $ 1,173 Additions - - 50 50 Amortization (109 ) (30 ) - (139 ) Abandonment Loss - (560 ) - (560 ) Balance at September 31, 2021 $ 398 $ - $ 126 $ 524 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year Amount Remainder of 2021 $ 36 2022 145 2023 145 2024 72 Total $ 398 |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Previously After Previously After Cost of Goods Sold $ 24,717 $ 24,400 $ 73,171 $ 72,336 General and Administrative Expenses 2,164 2,480 5,819 6,654 |
Note 3 - Revenue (Tables)
Note 3 - Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Nine Months Ended September 30, 2021 Outstanding at January 1, 2021 $ 5,899 Increase (decrease) attributed to: Transferred to receivables from contract assets recognized (5,140 ) Product transferred over time 7,387 Outstanding at September 30, 2021 $ 8,145 |
Disaggregation of Revenue [Table Text Block] | Three Months Ended September 30, 2021 Product/ Product Noncash Total Net Sales Medical $ 13,762 $ 2,933 $ 282 $ 16,977 Aerospace and Defense 2,883 144 65 3,092 Industrial 7,468 1,757 158 9,383 Total Net Sales $ 24,113 $ 4,834 $ 505 $ 29,452 Nine Months Ended September 30, 2021 Product/ Product Noncash Total Net Sales Medical $ 35,497 $ 8,876 $ 1,017 $ 45,390 Aerospace and Defense 9,685 527 327 10,539 Industrial 20,385 4,832 560 25,777 Total Net Sales $ 65,567 $ 14,235 $ 1,904 $ 81,706 Three Months Ended September 30, 2020 Product/ Product Noncash Total Net Sales Medical $ 10,960 $ 1,853 $ 1,405 $ 14,218 Aerospace and Defense 5,525 16 665 6,206 Industrial 4,527 791 620 5,938 Total Net Sales $ 21,012 $ 2,660 $ 2,690 $ 26,362 Nine Months Ended September 30, 2020 Product/ Product Noncash Total Net Sales Medical $ 35,835 $ 4,454 $ 2,464 $ 42,753 Aerospace and Defense 14,160 396 953 15,509 Industrial 17,434 3,354 1,213 22,001 Total Net Sales $ 67,429 $ 8,204 $ 4,630 $ 80,263 |
Note 5 - Leases (Tables)
Note 5 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Lease Cost Operating Lease Cost $ 576 $ 409 $ 1,696 $ 1,118 Finance Lease Interest Cost 18 26 61 79 Finance Lease Amortization Expense 163 163 489 478 Total Lease Cost $ 757 $ 598 $ 2,246 $ 1,675 September 30, 2021 2020 Operating Leases Cash paid for amounts included in the measurement of lease liabilities $ 861 $ 686 Right-of-use assets obtained in exchange for lease obligations $ 858 $ 4,685 Weighted-Average Remaining Lease Term (Years) Operating Leases 9.6 Finance Leases 2.6 Weighted-Average Discount Rate Operating Leases 7.8 % Finance Leases 5.1 % |
Schedule of Supplemental Balance Sheet Information Related to Leases [Table Text Block] | September 30 December 31 Balance Sheet Location 2021 2020 Assets Operating Lease Assets Operating Lease Assets $ 9,052 $ 8,998 Finance Lease Assets Property and Equipment, Net 1,841 2,330 Total Leased Assets $ 10,893 $ 11,328 Liabilities Current Current Operating Lease Liabilities Current Portion of Operating Lease Obligations $ 1,023 $ 688 Current Finance Lease Liabilities Current Portion of Finance Lease Obligations 613 660 Noncurrent Long-Term Operating Lease Liabilities Long-Term Operating Lease Obligations, Net 8,744 8,889 Long Term Finance Lease Liabilities Long Term Finance Lease Obligations, Net 707 1,152 Total Lease Liabilities $ 11,087 $ 11,389 |
Schedule of Lease Liability Maturity [Table Text Block] | Operating Finance Leases Total Remaining 2021 $ 433 $ 185 $ 618 2022 1,735 587 2,322 2023 1,737 333 2,070 2024 1,408 280 1,688 2025 1,205 26 1,231 Thereafter 8,283 - 8,283 Total Lease Payments $ 14,801 $ 1,411 $ 16,212 Less: Interest (5,034 ) (91 ) (5,125 ) Present Value of Lease Liabilities $ 9,767 $ 1,320 $ 11,087 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
May 31, 2021 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | May 31, 2017 | Nov. 30, 2010 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 27,000 | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 214,391 | 45,326 | 144,892 | 21,220 | ||||||
Accounts Receivable, Allowance for Credit Loss, Current | $ 361 | $ 361 | $ 343 | [1] | ||||||
Employee Retention Credit | 5,209 | 5,209 | ||||||||
Assets Disposed of by Method Other than Sale, in Period of Disposition, Gain (Loss) on Disposition | $ (560) | $ 0 | (560) | $ 0 | ||||||
Finite-Lived Intangible Assets, Remaining Amortization Period (Year) | 3 years | |||||||||
Amortization of Intangible Assets, Total | $ 45 | 139 | $ 185 | |||||||
Employee-related Liabilities, Current [Member] | ||||||||||
Accrual for Taxes Other than Income Taxes | 1,158 | 1,158 | ||||||||
Cost of Sales [Member] | ||||||||||
Employee Retention Credit | 4,670 | 4,670 | ||||||||
Selling Expense [Member] | ||||||||||
Employee Retention Credit | 125 | 125 | ||||||||
General and Administrative Expense [Member] | ||||||||||
Employee Retention Credit | 414 | 414 | ||||||||
Share-based Payment Arrangement, Option [Member] | ||||||||||
Share-based Payment Arrangement, Expense | 28 | 36 | 74 | 111 | ||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | 320 | $ 320 | ||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years 1 month 13 days | |||||||||
Stock Appreciation Rights (SARs) [Member] | ||||||||||
Share-based Payment Arrangement, Expense | 13 | $ 40 | $ 127 | $ 40 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 0 | 0 | ||||||||
Deferred Compensation Liability, Current, Total | $ 235 | $ 235 | ||||||||
Stock Incentive Plan 2017 [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 400,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 75,000 | 50,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 27,000 | 11,300 | ||||||||
Equity Appreciation Rights Plan 2010 [Member] | Stock Appreciation Rights (SARs) [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 1,000,000 | |||||||||
[1] | The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Outstanding (in shares) | shares | 362,640 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 3.96 |
Granted (in shares) | shares | 27,000 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 6.14 |
Exercised (in shares) | shares | (13,400) |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 3.43 |
Cancelled (in shares) | shares | (10,340) |
Cancelled, weighted average exercise price (in dollars per share) | $ / shares | $ 3.42 |
Outstanding (in shares) | shares | 365,900 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 4.15 |
Outstanding, weighted average remaining contractual term (Year) | 7 years 3 months |
Outstanding, aggregate intrinsic value | $ | $ 2,688 |
Exercisable (in shares) | shares | 180,500 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 3.75 |
Exercisable, weighted average remaining contractual term (Year) | 6 years 6 months 21 days |
Exercisable, aggregate intrinsic value | $ | $ 1,398 |
Note 1 - Summary of Significa_5
Note 1 - Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Raw Materials | $ 19,673 | $ 14,865 |
Work in Process | 1,683 | 969 |
Finished Goods | 485 | 242 |
Reserves | (1,199) | (2,159) |
Total | $ 20,643 | $ 13,917 |
Note 1 - Summary of Significa_6
Note 1 - Summary of Significant Accounting Policies - Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |||
Beginning balance | $ 1,173 | [1] | $ 1,338 | ||
Additions | 50 | 20 | |||
Amortization | $ (45) | (139) | (185) | ||
Abandonment Loss | (560) | ||||
Ending balance | 524 | 524 | 1,173 | [1] | |
Customer Relationships [Member] | |||||
Beginning balance | 507 | 651 | |||
Additions | 0 | 0 | |||
Amortization | (109) | (144) | |||
Abandonment Loss | 0 | ||||
Ending balance | 398 | 398 | 507 | ||
Trade Names [Member] | |||||
Beginning balance | 590 | 631 | |||
Additions | 0 | 0 | |||
Amortization | (30) | (41) | |||
Abandonment Loss | (560) | ||||
Ending balance | 0 | 0 | 590 | ||
Patents [Member] | |||||
Beginning balance | 76 | 56 | |||
Additions | 50 | 20 | |||
Amortization | 0 | 0 | |||
Abandonment Loss | 0 | ||||
Ending balance | $ 126 | $ 126 | $ 76 | ||
[1] | The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date |
Note 1 - Summary of Significa_7
Note 1 - Summary of Significant Accounting Policies - Estimated Future Annual Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | [1] | Dec. 31, 2019 |
Total | $ 524 | $ 1,173 | $ 1,338 | |
Finite-lived Intangible Assets, Excluding Projects in Process [Member] | ||||
Remainder of 2021 | 36 | |||
2022 | 145 | |||
2023 | 145 | |||
2024 | 72 | |||
Total | $ 398 | |||
[1] | The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date |
Note 1 - Summary of Significa_8
Note 1 - Summary of Significant Accounting Policies - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cost of Goods Sold | $ 21,411 | $ 24,400 | $ 68,519 | $ 72,336 |
General and Administrative Expenses | $ 2,045 | 2,480 | $ 7,247 | 6,654 |
Previously Reported [Member] | ||||
Cost of Goods Sold | 24,717 | 73,171 | ||
General and Administrative Expenses | $ 2,164 | $ 5,819 |
Note 2 - Concentration of Cre_2
Note 2 - Concentration of Credit Risk and Major Customers (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020 | Sep. 30, 2021USD ($) | Sep. 30, 2020 | Dec. 31, 2020 | |
Excess Cash Balances, Number of High Credit Quality Financial Institutions | 2 | ||||
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | Two Customers [Member] | |||||
Concentration Risk Number of Customers | 2 | ||||
Concentration Risk, Percentage | 36.00% | ||||
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | One Customer [Member] | |||||
Concentration Risk Number of Customers | 1 | 1 | 1 | ||
Concentration Risk, Percentage | 23.00% | 26.00% | 23.00% | ||
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | Largest Customer [Member] | |||||
Concentration Risk, Percentage | 3.00% | 3.00% | 3.00% | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Two Customers [Member] | |||||
Concentration Risk Number of Customers | 2 | ||||
Concentration Risk, Percentage | 36.00% | ||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | One Customer [Member] | |||||
Concentration Risk Number of Customers | 1 | ||||
Concentration Risk, Percentage | 20.00% | ||||
UNITED STATES | |||||
Excess Cash Balances, Number of High Credit Quality Financial Institutions | 1 | ||||
Cash, Ending Balance | $ 1,443,000 | $ 1,443,000 | |||
CHINA | |||||
Excess Cash Balances, Number of High Credit Quality Financial Institutions | 1 | ||||
Cash, Ending Balance | 378,000 | $ 378,000 | |||
MEXICO | |||||
Cash, Ending Balance | $ 5,000 | $ 5,000 |
Note 3 - Revenue 1 (Details Tex
Note 3 - Revenue 1 (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Percentage of Revenue Transferred to Customers | 82.00% | 80.00% | 80.00% | 84.00% |
Revenue Remaining Performance Obligation, Customers Upon Shipment With Payment Terms (Day) | 120 days |
Note 3 - Revenue 2 (Details Tex
Note 3 - Revenue 2 (Details Textual) | Sep. 30, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Day) | 180 days |
Note 3 - Revenue - Contract Ass
Note 3 - Revenue - Contract Assets (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Outstanding | $ 5,899 |
Transferred to receivables from contract assets recognized | (5,140) |
Product transferred over time | 7,387 |
Outstanding | $ 8,145 |
Note 3 - Revenue - Disaggregati
Note 3 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net sales | $ 29,452 | $ 26,362 | $ 81,706 | $ 80,263 |
Medical [Member] | ||||
Net sales | 16,977 | 14,218 | 45,390 | 42,753 |
Aerospace and Defense [Member] | ||||
Net sales | 3,092 | 6,206 | 10,539 | 15,509 |
Industrial [Member] | ||||
Net sales | 9,383 | 5,938 | 25,777 | 22,001 |
Transferred over Time [Member] | ||||
Net sales | 24,113 | 21,012 | 65,567 | 67,429 |
Transferred over Time [Member] | Medical [Member] | ||||
Net sales | 13,762 | 10,960 | 35,497 | 35,835 |
Transferred over Time [Member] | Aerospace and Defense [Member] | ||||
Net sales | 2,883 | 5,525 | 9,685 | 14,160 |
Transferred over Time [Member] | Industrial [Member] | ||||
Net sales | 7,468 | 4,527 | 20,385 | 17,434 |
Transferred at Point in Time [Member] | ||||
Net sales | 4,834 | 2,660 | 14,235 | 8,204 |
Transferred at Point in Time [Member] | Medical [Member] | ||||
Net sales | 2,933 | 1,853 | 8,876 | 4,454 |
Transferred at Point in Time [Member] | Aerospace and Defense [Member] | ||||
Net sales | 144 | 16 | 527 | 396 |
Transferred at Point in Time [Member] | Industrial [Member] | ||||
Net sales | 1,757 | 791 | 4,832 | 3,354 |
Noncash Consideration [Member] | ||||
Net sales | 505 | 2,690 | 1,904 | 4,630 |
Noncash Consideration [Member] | Medical [Member] | ||||
Net sales | 282 | 1,405 | 1,017 | 2,464 |
Noncash Consideration [Member] | Aerospace and Defense [Member] | ||||
Net sales | 65 | 665 | 327 | 953 |
Noncash Consideration [Member] | Industrial [Member] | ||||
Net sales | $ 158 | $ 620 | $ 560 | $ 1,213 |
Note 4 - Financing Arrangemen_2
Note 4 - Financing Arrangements (Details Textual) - USD ($) $ in Thousands | Apr. 15, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Jun. 15, 2017 |
Proceeds from Issuance of Long-term Debt, Total | $ 0 | $ 6,077 | |||
Paycheck Protection Program CARES Act [Member] | Unsecured Debt [Member] | |||||
Proceeds from Issuance of Long-term Debt, Total | $ 6,077 | ||||
Bank of America [Member] | Credit Agreement [Member] | |||||
Long-term Line of Credit, Total | 6,009 | $ 3,328 | |||
Line of Credit, Minimum Fixed Charge Coverage Ratio During the Period | 1 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 5,762 | ||||
Bank of America [Member] | Credit Agreement [Member] | Real Estate Term Note [Member] | |||||
Debt Instrument, Face Amount | $ 5,000 | ||||
Long-term Debt, Total | 197 | $ 1,071 | |||
Debt Instrument, Periodic Payment, Total | $ 41 | ||||
Bank of America [Member] | Credit Agreement [Member] | Line of Credit [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 16,000 | ||||
Debt Instrument, Interest Rate During Period | 3.40% | 4.00% |
Note 5 - Leases (Details Textua
Note 5 - Leases (Details Textual) | Sep. 30, 2021 |
Minimum [Member] | |
Lessee, Operating Lease, Renewal Term (Year) | 1 year |
Maximum [Member] | |
Lessee, Operating Lease, Renewal Term (Year) | 5 years |
Note 5 - Leases - Lease Cost (D
Note 5 - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Lease Cost | $ 576 | $ 409 | $ 1,696 | $ 1,118 |
Finance Lease Interest Cost | 18 | 26 | 61 | 79 |
Finance Lease Amortization Expense | 163 | 163 | 489 | 478 |
Total Lease Cost | $ 757 | $ 598 | 2,246 | 1,675 |
Cash paid for amounts included in the measurement of lease liabilities | 861 | 686 | ||
Property Acquired under Operating Lease | $ 858 | $ 4,685 | ||
Operating Leases (Year) | 9 years 7 months 6 days | 9 years 7 months 6 days | ||
Finance Leases (Year) | 2 years 7 months 6 days | 2 years 7 months 6 days | ||
Operating Leases | 7.80% | 7.80% | ||
Finance Leases | 5.10% | 5.10% |
Note 5 - Leases - Supplemental
Note 5 - Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Operating Lease Assets | $ 9,052 | $ 8,998 | [1] |
Finance Lease Assets | 1,841 | 2,330 | |
Total Leased Assets | 10,893 | 11,328 | |
Current Operating Lease Liabilities | 1,023 | 688 | [1] |
Current Finance Lease Liabilities | 613 | 660 | |
Long-Term Operating Lease Liabilities | 8,744 | 8,889 | |
Long Term Finance Lease Liabilities | 707 | 1,152 | |
Total, present value of lease liabilities | $ 11,087 | $ 11,389 | |
[1] | The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date |
Note 5 - Leases - Maturity of L
Note 5 - Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating leases, Remaining 2021 | $ 433 | |
Finance leases, Remaining 2021 | 185 | |
Total, Remaining 2021 | 618 | |
Operating leases, 2022 | 1,735 | |
Finance leases, 2022 | 587 | |
Total, 2022 | 2,322 | |
Operating leases, 2023 | 1,737 | |
Finance leases, 2023 | 333 | |
Total, 2023 | 2,070 | |
Operating leases, 2024 | 1,408 | |
Finance leases, 2024 | 280 | |
Total, 2024 | 1,688 | |
Operating leases, 2025 | 1,205 | |
Finance leases, 2025 | 26 | |
Total, 2025 | 1,231 | |
Operating leases, Thereafter | 8,283 | |
Finance leases, Thereafter | 0 | |
Total, Thereafter | 8,283 | |
Operating leases, total lease payments | 14,801 | |
Finance leases, total lease payments | 1,411 | |
Total, total lease payments | 16,212 | |
Operating leases, less: Interest | (5,034) | |
Finance leases, less: Interest | (91) | |
Total, less: Interest | (5,125) | |
Operating leases, present value of lease liabilities | 9,767 | |
Finance leases, present value of lease liabilities | 1,320 | |
Total, present value of lease liabilities | $ 11,087 | $ 11,389 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 26.00% | 23.70% | 22.80% | 24.30% |
Accrued Income Taxes, Total | $ 44 | $ 44 | ||
Income Tax Expense (Benefit), Total | $ 1,247 | $ 612 | $ 646 | $ 638 |
Note 7 - Restructuring Charges
Note 7 - Restructuring Charges (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | |
Restructuring Charges, Total | $ 23 | $ 0 | $ 319 | $ 0 |
Consolidation of our Production Facilities and Closure of our Merrifield, Minnesota Facility [Member] | ||||
Restructuring Charges, Total | 319 | |||
Restructuring Reserve, Ending Balance | 0 | $ 0 | ||
Restructuring and Related Cost, Number of Positions Eliminated | 42 | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 93 | $ 176 |
Note 8 - Related Party Transa_2
Note 8 - Related Party Transactions (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Agreement Between the BIRD Foundation, the Company, and MARPE Technologies, LTD [Member] | |||||
Agreement, Conditional Grant | $ 1,000 | $ 1,000 | |||
Agreement, Exclusive Manufacturing Rights, Term (Year) | 10 years | ||||
Abilitech Medical, Inc [Member] | Earnings from Consulting [Member] | Consultant [Member] | |||||
Related Party Transaction, Amounts of Transaction | $ 16 | ||||
Subsidiary of Common Parent [Member] | |||||
Nature of Common Ownership or Management Control Relationships | 90% | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 18 | $ 0 | $ 72 | $ 28 | |
Abilitech Medical, Inc [Member] | Payments Received for Delivery of EMS Products [Member] | |||||
Related Party Transaction, Amounts of Transaction | $ 316 | $ 59 | $ 1,056 | $ 668 | |
David Kunin [Member] | Marpe Technologies, LTD [Member] | Maximum [Member] | |||||
Ownership, Percent | 10.00% | 10.00% | |||
Marpe Technologies, LTD [Member] | Agreement Between the BIRD Foundation, the Company, and MARPE Technologies, LTD [Member] | |||||
Related Party Transaction, Amounts of Transaction | $ 82 | ||||
Agreement, Conditional Grant Matching Amount | $ 500 | 500 | |||
Deposits from Related Party | $ 100 | 100 | |||
Revenue from Related Parties | $ 78 |