Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 05, 2022 | |
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 | Q1 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 $.01 per share | |
Trading Symbol | NSYS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,682,064 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net sales | $ 30,711 | $ 22,072 |
Cost of Goods Sold | 26,667 | 20,511 |
Gross Profit | 4,044 | 1,561 |
Operating Expenses | ||
Selling Expenses | 833 | 721 |
General and Administrative Expenses | 2,729 | 2,796 |
Research and Development Expenses | 328 | 0 |
Restructuring Charges | 0 | 219 |
Gain on Sale of Assets | (15) | 0 |
Total Operating Expenses | 3,875 | 3,736 |
Income (Loss) From Operations | 169 | (2,175) |
Other Expense | ||
Interest Expense | (98) | (86) |
Income (Loss) Before Income Taxes | 71 | (2,261) |
Income Tax Benefit | (67) | (707) |
Net Income (Loss) | $ 138 | $ (1,554) |
Net Income (Loss) Per Common Share: | ||
Basic (in dollars per share) (in dollars per share) | $ 0.05 | $ (0.58) |
Weighted Average Number of Common Shares Outstanding - Basic (in shares) (in shares) | 2,680,731 | 2,659,132 |
Diluted (in dollars per share) (in dollars per share) | $ 0.05 | $ (0.58) |
Weighted Average Number of Common Shares Outstanding - Diluted (in shares) (in shares) | 2,871,901 | 2,659,132 |
Other comprehensive income (loss) | ||
Foreign currency translation | $ 5 | $ (34) |
Comprehensive income (loss), net of tax | $ 143 | $ (1,588) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash | $ 841 | $ 643 |
Restricted Cash | 776 | 1,582 |
Accounts Receivable, less allowances of $366 and $328 | 14,695 | 14,548 |
Employee Retention Credit Receivable | 5,209 | 5,209 |
Inventories, Net | 21,187 | 19,434 |
Contract Assets | 8,114 | 8,698 |
Prepaid Expenses and Other Current Assets | 1,996 | 1,660 |
Total Current Assets | 52,818 | 51,774 |
Property and Equipment, Net | 5,922 | 5,833 |
Operating Lease Assets | 8,706 | 8,983 |
Other Intangible Assets, Net | 465 | 501 |
Total Assets | 67,911 | 67,091 |
Current Liabilities | ||
Current Portion of Finance Lease Obligations | 508 | 601 |
Current Portion of Operating Lease Obligations | 1,080 | 1,043 |
Accounts Payable | 14,012 | 12,710 |
Accrued Payroll and Commissions | 4,890 | 4,045 |
Other Accrued Liabilities | 4,223 | 3,907 |
Total Current Liabilities | 24,713 | 22,306 |
Long-Term Liabilities | ||
Long Term Line of Credit | 7,526 | 8,959 |
Long Term Finance Lease Obligations, Net | 824 | 916 |
Long-Term Operating Lease Obligations, Net | 8,411 | 8,695 |
Other Long-Term Liabilities | 102 | 104 |
Total Long-Term Liabilities | 16,863 | 18,674 |
Total Liabilities | 41,576 | 40,980 |
Commitments and Contingencies | ||
Shareholders' Equity | ||
Preferred Stock, $1 par value; 1,000,000 Shares Authorized: 250,000 Shares Issued and Outstanding | 250 | 250 |
Common Stock - $0.01 par value; 9,000,000 Shares Authorized: 2,682,064 and 2,672,064 Shares Issued and Outstanding, respectively | 27 | 27 |
Additional Paid-In Capital | 16,043 | 15,962 |
Accumulated Other Comprehensive Loss | 61 | 56 |
Retained Earnings | 9,954 | 9,816 |
Total Shareholders' Equity | 26,335 | 26,111 |
Total Liabilities and Shareholders' Equity | $ 67,911 | $ 67,091 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts receivable allowance | $ 366 | $ 328 |
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) | 2,682,064 | 2,672,064 |
Common stock, shares outstanding (in shares) | 2,682,064 | 2,672,064 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income (Loss) | $ 138 | $ (1,554) |
Adjustments to Reconcile Net Income (Loss) to Net Cash | ||
Depreciation and Amortization | 486 | 477 |
Compensation on Stock-Based Awards | 48 | 21 |
Compensation on Equity Appreciation Rights | 0 | 13 |
Loss on Held for Sales | 0 | 28 |
(Gain) Loss on Disposal of Property and Equipment | (15) | 31 |
Change in Accounts Receivable Allowance | 38 | 379 |
Change in Inventory Reserves | 97 | (394) |
Changes in Current Operating Items | ||
Accounts Receivable | (188) | 2,732 |
Inventories | (1,852) | (2,777) |
Contract Assets | 585 | (778) |
Prepaid Expenses and other Curent Assets | (263) | (299) |
Income Taxes | (168) | (796) |
Accounts Payable | 1,302 | 1,553 |
Accrued Payroll and Commissions | 845 | 721 |
Other Accrued Liabilities | 438 | (253) |
Net Cash Provided By (Used In) Operating Activities | 1,491 | (896) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from Sale of Property and Equipment | 15 | 0 |
Purchase of Intangible Asset | 0 | (64) |
Purchases of Property and Equipment | (529) | (208) |
Net Cash Used In Investing Activities | (514) | (272) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net Change in Line of Credit | (1,434) | (1,128) |
Principal Payments on Long-Term Debt | 0 | (125) |
Principal Payments on Financing Leases | (184) | (162) |
Stock Option Excercises | 33 | 0 |
Net Cash Provided Used In Financing Activities | (1,585) | (1,415) |
Effect of Exchange Rate Changes on Cash | 0 | 1 |
Net Change in Cash and Cash Equivalents | (608) | (2,582) |
Cash and Cash Equivalents - Beginning of Year | 2,225 | 3,564 |
Cash and Cash Equivalents - End of Year | 1,617 | 982 |
Reconciliation of cash and restricted cash reported within the consolidated balance sheets | ||
Cash | 841 | 384 |
Restricted Cash | 776 | 598 |
Total Cash and restricted cash reported in the consolidated statements of cash flows | 1,617 | 982 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid During the Period for Interest | 94 | 59 |
Cash Paid During the Period for Income Taxes | 0 | 97 |
Supplemental Noncash Investing and Financing Activities: | ||
Property and Equipment Purchases in Accounts Payable | 0 | 214 |
Property Acquired Under Operating Lease | $ 0 | $ 858 |
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, 2020 | $ 250 | $ 27 | $ 15,816 | $ (37) | $ 2,662 | $ 18,718 |
Net Income (Loss) | 0 | 0 | 0 | 0 | (1,554) | (1,554) |
Foreign currency translation adjustment | 0 | 0 | 0 | (34) | 0 | (34) |
Compensation on stock-based awards | 0 | 0 | 21 | 0 | 0 | 21 |
Net Income (Loss) | 0 | 0 | 0 | 0 | (1,554) | (1,554) |
BALANCE at Mar. 31, 2021 | 250 | 27 | 15,837 | (71) | 1,108 | 17,151 |
BALANCE at Dec. 31, 2021 | 250 | 27 | 15,962 | 56 | 9,816 | 26,111 |
Net Income (Loss) | 0 | 0 | 0 | 0 | 138 | 138 |
Foreign currency translation adjustment | 0 | 0 | 0 | 5 | 0 | 5 |
Compensation on stock-based awards | 0 | 0 | 48 | 0 | 0 | 48 |
Net Income (Loss) | 0 | 0 | 0 | 0 | 138 | 138 |
Stock option exercises | 0 | 0 | 33 | 0 | 0 | 33 |
BALANCE at Mar. 31, 2022 | $ 250 | $ 27 | $ 16,043 | $ 61 | $ 9,954 | $ 26,335 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021. 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 Stock Options In May 2017, 2017 March 2020 We granted 21,000 service-based options and 21,000 market condition options to Jay Miller per his employment agreement signed February 27, 2022. February 27, 2024 February 27, 2028. three March 31, 2022, three March 31, 2022. three March 31, 2021. Total compensation expense related to stock options was $43 and $21 for the three March 31, 2022 2021, March 31, 2022, Following is the status of all stock options as of March 31, 2022: Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding - January 1, 2022 387,500 $ 4.57 Granted 74,000 10.73 Exercised (10,000 ) 3.43 Cancelled (600 ) 3.29 Outstanding - March 31, 2022 450,900 $ 5.58 7.12 $ 2,063 Exercisable - March 31, 2022 204,500 $ 3.92 6.32 $ 889 Restricted Stock Units During the three March 31, 2022, 2017 two no three March 31, 2022. three March 31, 2022 2021, three March 31, 2022 three March 31, 2022. Equity Appreciation Rights Plan In November 2010, ā2010 2010 not March 11, 2015. no three March 31, 2022 March 31, 2021. The 100,000 units outstanding at December 31, 2021 March 29, 2022. March 31, 2022, three March 31, 2022 2021, Net Income (Loss) per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding. Dilutive net income (loss) per common share assumes the exercise and issuance of all potential common stock equivalents in computing the weighted-average number of common shares outstanding, unless their effect is antidilutive. All stock options and restricted stock units, while outstanding, are considered common stock equivalents. For the three March 31, 2022 three March 31, 2021, not We had outstanding stock options totaling 51,911 and RSUs totaling 21,000 that are not three March 31, 2022. Restricted Cash Cash and cash equivalents classified as restricted cash on our consolidated balance sheets are restricted as to withdrawal or use under the terms of certain contractual agreements. As of March 31, 2022 March 31, 2022 March 31, 2022 Accounts Receivable and Allowance for Doubtful Accounts Credit is extended based upon an evaluation of the customerās financial condition and, while collateral is not March 31, 2022 December 31, 2021. Inventories Inventories are stated at the lower of average cost (which approximates first first may Inventories are as follows: March 31, 2022 December 31, 2021 Raw Materials $ 20,221 $ 18,492 Work in Process 1,796 1,678 Finished Goods 565 562 Reserves (1,395 ) (1,298 ) Total $ 21,187 $ 19,434 Other Intangible Assets Other intangible assets at March 31, 2022 December 31, 2021 Customer Relationships Trade Names Patents Total Balance at January 1, 2021 $ 507 $ 589 $ 77 $ 1,173 Additions - - 64 64 Amortization 147 29 - 176 Abandonment Loss - 560 - 560 Balance at December 31, 2021 360 - 141 501 Amortization 36 - - 36 Balance at March 31, 2022 $ 324 $ - $ 141 $ 465 Intangible assets are amortized on a straight-line basis over their estimated useful lives. The weighted-average remaining amortization period of our intangible assets is 2.5 years. Patents are not not Amortization expense of finite life intangible assets for the three March 31, 2022 2021 Estimated future annual amortization expense ( not Year Amount Remainder of 2022 $ 109 2023 145 2024 70 Total $ 324 Accounting Pronouncements Issued But Not In June 2016, 2016 13, December 15, 2022. In March 2020, 2020 04, 2020 04 2020 04 March 12, 2020 December 31, 2022. December 31, 2021 not not |
Note 2 - Concentration of Credi
Note 2 - Concentration of Credit Risk and Major Customers | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, not We have certain customers whose revenue individually represented 10% 10% One three March 31, 2022 2021, At March 31, 2022, two December 31, 2021, one Export sales represented approximately 5% and 4% of net sales for the three March 31, 2022 2021, |
Note 3 - Revenue
Note 3 - Revenue | 3 Months Ended |
Mar. 31, 2022 | |
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 Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances and customer discounts. Sales, value add, and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenues) basis. Shipping and handling costs are included in cost of goods sold. The majority of our revenue is derived from the transfer of goods produced under contract manufacturing agreements which have no three March 31, 2022 2021, not Accounting for contract manufacturing agreements involves the use of various techniques to estimate total revenue and costs. We estimate profit on these agreements as the difference between total estimated revenue and expected costs to complete the performance obligation within the terms of the agreement and recognize the respective profit as the goods are produced. The estimates to determine the profit earned on the performance obligation are based on anticipated selling prices and historical cost of goods sold and represent our best judgement at the time. Changes in judgements on these above estimates could impact the timing and amount of revenue recognized with a resulting impact on the timing and amount of associated profit. On occasion our customers provide materials to be used in the manufacturing process and the fair value of the materials is included in revenue as noncash consideration at the point in time when the manufacturing process commences along with the same corresponding amount recorded as cost of goods sold. The inclusion of noncash consideration has no Contract Assets Contract assets, recorded as such in the Condensed Consolidated Balance Sheets, consist of unbilled amounts related to revenue recognized over time. Significant changes in the contract assets balance during the three March 31, 2022 Three Months Ended March 31, 2022 Outstanding at January 1, 2022 $ 8,698 Increase (decrease) attributed to: Transferred to receivables from contract assets recognized (7,773 ) Product transferred over time 7,189 Outstanding at March 31, 2022 $ 8,114 We expect substantially all the remaining performance obligations for the contract assets recorded as of March 31, 2022, 90 The following tables summarize our net sales by market for the three March 31, 2022 2021, Three Months Ended March 31, 2022 Product/ Service Transferred Over Time Product Transferred at Point in Time Noncash Consideration Total Net Sales by Market Medical $ 9,806 $ 4,915 $ 544 $ 15,265 Industrial 6,529 1,791 347 8,667 Aerospace and Defense 6,057 425 296 6,778 Total net sales $ 22,392 $ 7,131 $ 1,187 $ 30,710 Three Months Ended March 31, 2021 Product/ Service Transferred Over Time Product Transferred at Point in Time Noncash Consideration Total Net Sales by Market Medical $ 8,959 $ 2,893 $ 490 $ 12,342 Industrial 4,630 1,336 252 6,218 Aerospace and Defense 3,064 262 186 3,512 Total net sales $ 16,653 $ 4,491 $ 928 $ 22,072 |
Note 4 - Financing Arrangements
Note 4 - Financing Arrangements | 3 Months Ended |
Mar. 31, 2022 | |
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 June 15, 2026. Under the amended Bank of America credit agreement signed December 31, 2021, March 31, 2022 December 31, 2021, March 31, 2022 December 31, 2021, no March 31, 2022 December 31, 2021, 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 Bank of America Credit Agreement provides for, among other things, a Fixed Charge Coverage Ratio of not 1.0 1.0, twelve December 31, 2020 $2,000 30 March 31, 2022. At March 31, 2022, first 2022, |
Note 5 - Leases
Note 5 - Leases | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, not not The components of lease expense were as follows: March 31, March 31, Lease Cost 2022 2021 Operating lease cost $ 581 $ 531 Finance lease interest cost 94 23 Finance lease amortization expense 182 163 Total lease cost $ 857 $ 717 Supplemental balance sheet information related to leases was as follows: Balance Sheet Location March 31, 2022 December 31, 2021 Assets Operating lease assets Operating lease assets $ 8,706 $ 8,983 Finance lease assets Property, Plant and Equipment 1,869 2,052 Total leased assets $ 10,575 $ 11,035 Supplemental cash flow information related to leases was as follows: March 31, March 31, 2022 2021 Operating leases Cash paid for amounts included in the measurement of lease liabilities $ 434 $ 357 Right-of-use assets obtained in exchange for lease obligations $ - $ 858 Maturities of lease liabilities were as follows: Operating Leases Finance Leases Total Remaining 2022 $ 1,321 $ 460 $ 1,781 2023 1,810 409 2,219 2024 1,509 357 1,866 2025 1,255 103 1,358 2026 1,217 115 1,332 Thereafter 7,066 - 7,066 Total lease payments $ 14,178 $ 1,444 $ 15,622 Less: Interest (4,687 ) (112 ) (4,799 ) Present value of lease liabilities $ 9,491 $ 1,332 $ 10,823 The lease term and discount rate at March 31, 2022 Weighted-average remaining lease term (years) Operating leases 9.3 Finance leases 3.0 Weighted-average discount rate Operating leases 7.7 % Finance leases 5.2 % |
Note 6 - Income Taxes
Note 6 - Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
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 fiscal 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. Our effective tax rate for the three March 31, 2022 2021 |
Note 7 - Restructuring Charges
Note 7 - Restructuring Charges | 3 Months Ended |
Mar. 31, 2022 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 7. During the first 2021, three March 31, 2021. no three March 31, 2022. |
Note 8 - Employee Retention Cre
Note 8 - Employee Retention Credit | 3 Months Ended |
Mar. 31, 2022 | |
Notes to Financial Statements | |
Employee Retention Credit [Text Block] | NOTE 8. On March 27, 2020, 2020 2021 At March 31, 2022 December 31, 2021, |
Note 9 - Related Party Transact
Note 9 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE 9. 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. three March 31, 2022 2021, third David Kunin, our Chairman, is a 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 $500 no not $500. 10 no not three March 31, 2022, three March 31, 2021. third |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021. 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 Stock Options In May 2017, 2017 March 2020 We granted 21,000 service-based options and 21,000 market condition options to Jay Miller per his employment agreement signed February 27, 2022. February 27, 2024 February 27, 2028. three March 31, 2022, three March 31, 2022. three March 31, 2021. Total compensation expense related to stock options was $43 and $21 for the three March 31, 2022 2021, March 31, 2022, Following is the status of all stock options as of March 31, 2022: Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding - January 1, 2022 387,500 $ 4.57 Granted 74,000 10.73 Exercised (10,000 ) 3.43 Cancelled (600 ) 3.29 Outstanding - March 31, 2022 450,900 $ 5.58 7.12 $ 2,063 Exercisable - March 31, 2022 204,500 $ 3.92 6.32 $ 889 Restricted Stock Units During the three March 31, 2022, 2017 two no three March 31, 2022. three March 31, 2022 2021, three March 31, 2022 three March 31, 2022. Equity Appreciation Rights Plan In November 2010, ā2010 2010 not March 11, 2015. no three March 31, 2022 March 31, 2021. The 100,000 units outstanding at December 31, 2021 March 29, 2022. March 31, 2022, three March 31, 2022 2021, |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding. Dilutive net income (loss) per common share assumes the exercise and issuance of all potential common stock equivalents in computing the weighted-average number of common shares outstanding, unless their effect is antidilutive. All stock options and restricted stock units, while outstanding, are considered common stock equivalents. For the three March 31, 2022 three March 31, 2021, not We had outstanding stock options totaling 51,911 and RSUs totaling 21,000 that are not three March 31, 2022. |
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Cash and cash equivalents classified as restricted cash on our consolidated balance sheets are restricted as to withdrawal or use under the terms of certain contractual agreements. As of March 31, 2022 March 31, 2022 March 31, 2022 |
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 March 31, 2022 December 31, 2021. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of average cost (which approximates first first may Inventories are as follows: March 31, 2022 December 31, 2021 Raw Materials $ 20,221 $ 18,492 Work in Process 1,796 1,678 Finished Goods 565 562 Reserves (1,395 ) (1,298 ) Total $ 21,187 $ 19,434 |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Other Intangible Assets Other intangible assets at March 31, 2022 December 31, 2021 Customer Relationships Trade Names Patents Total Balance at January 1, 2021 $ 507 $ 589 $ 77 $ 1,173 Additions - - 64 64 Amortization 147 29 - 176 Abandonment Loss - 560 - 560 Balance at December 31, 2021 360 - 141 501 Amortization 36 - - 36 Balance at March 31, 2022 $ 324 $ - $ 141 $ 465 Intangible assets are amortized on a straight-line basis over their estimated useful lives. The weighted-average remaining amortization period of our intangible assets is 2.5 years. Patents are not not Amortization expense of finite life intangible assets for the three March 31, 2022 2021 Estimated future annual amortization expense ( not Year Amount Remainder of 2022 $ 109 2023 145 2024 70 Total $ 324 |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements Issued But Not In June 2016, 2016 13, December 15, 2022. In March 2020, 2020 04, 2020 04 2020 04 March 12, 2020 December 31, 2022. December 31, 2021 not not |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 387,500 $ 4.57 Granted 74,000 10.73 Exercised (10,000 ) 3.43 Cancelled (600 ) 3.29 Outstanding - March 31, 2022 450,900 $ 5.58 7.12 $ 2,063 Exercisable - March 31, 2022 204,500 $ 3.92 6.32 $ 889 |
Schedule of Inventory, Current [Table Text Block] | March 31, 2022 December 31, 2021 Raw Materials $ 20,221 $ 18,492 Work in Process 1,796 1,678 Finished Goods 565 562 Reserves (1,395 ) (1,298 ) Total $ 21,187 $ 19,434 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Customer Relationships Trade Names Patents Total Balance at January 1, 2021 $ 507 $ 589 $ 77 $ 1,173 Additions - - 64 64 Amortization 147 29 - 176 Abandonment Loss - 560 - 560 Balance at December 31, 2021 360 - 141 501 Amortization 36 - - 36 Balance at March 31, 2022 $ 324 $ - $ 141 $ 465 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year Amount Remainder of 2022 $ 109 2023 145 2024 70 Total $ 324 |
Note 3 - Revenue (Tables)
Note 3 - Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Notes Tables | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Three Months Ended March 31, 2022 Outstanding at January 1, 2022 $ 8,698 Increase (decrease) attributed to: Transferred to receivables from contract assets recognized (7,773 ) Product transferred over time 7,189 Outstanding at March 31, 2022 $ 8,114 |
Disaggregation of Revenue [Table Text Block] | Three Months Ended March 31, 2022 Product/ Service Transferred Over Time Product Transferred at Point in Time Noncash Consideration Total Net Sales by Market Medical $ 9,806 $ 4,915 $ 544 $ 15,265 Industrial 6,529 1,791 347 8,667 Aerospace and Defense 6,057 425 296 6,778 Total net sales $ 22,392 $ 7,131 $ 1,187 $ 30,710 Three Months Ended March 31, 2021 Product/ Service Transferred Over Time Product Transferred at Point in Time Noncash Consideration Total Net Sales by Market Medical $ 8,959 $ 2,893 $ 490 $ 12,342 Industrial 4,630 1,336 252 6,218 Aerospace and Defense 3,064 262 186 3,512 Total net sales $ 16,653 $ 4,491 $ 928 $ 22,072 |
Note 5 - Leases (Tables)
Note 5 - Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Notes Tables | |
Lease, Cost [Table Text Block] | March 31, March 31, Lease Cost 2022 2021 Operating lease cost $ 581 $ 531 Finance lease interest cost 94 23 Finance lease amortization expense 182 163 Total lease cost $ 857 $ 717 March 31, March 31, 2022 2021 Operating leases Cash paid for amounts included in the measurement of lease liabilities $ 434 $ 357 Right-of-use assets obtained in exchange for lease obligations $ - $ 858 Weighted-average remaining lease term (years) Operating leases 9.3 Finance leases 3.0 Weighted-average discount rate Operating leases 7.7 % Finance leases 5.2 % |
Schedule of Supplemental Balance Sheet Information Related to Leases [Table Text Block] | Balance Sheet Location March 31, 2022 December 31, 2021 Assets Operating lease assets Operating lease assets $ 8,706 $ 8,983 Finance lease assets Property, Plant and Equipment 1,869 2,052 Total leased assets $ 10,575 $ 11,035 |
Schedule of Lease Liability Maturity [Table Text Block] | Operating Leases Finance Leases Total Remaining 2022 $ 1,321 $ 460 $ 1,781 2023 1,810 409 2,219 2024 1,509 357 1,866 2025 1,255 103 1,358 2026 1,217 115 1,332 Thereafter 7,066 - 7,066 Total lease payments $ 14,178 $ 1,444 $ 15,622 Less: Interest (4,687 ) (112 ) (4,799 ) Present value of lease liabilities $ 9,491 $ 1,332 $ 10,823 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Feb. 27, 2022 | Mar. 31, 2022 | May 31, 2021 | Mar. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | May 31, 2017 | Dec. 31, 2012 | Nov. 30, 2010 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 74,000 | |||||||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 10.73 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 7 years 1 month 13 days | |||||||||
Weighted Average Number of Shares Outstanding, Diluted, Adjustment, Total (in shares) | 191,170 | |||||||||
Earnings Per Share, Diluted Adjustment (in dollars per share) | $ 0.02 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 450,900 | 450,900 | 387,500 | |||||||
Letters of Credit Outstanding, Amount | $ 400 | $ 400 | ||||||||
Restricted Cash and Cash Equivalents, Current, Total | 776 | 776 | $ 598 | $ 1,582 | ||||||
Accounts Receivable, Allowance for Credit Loss, Current | 366 | $ 366 | 328 | |||||||
Finite-Lived Intangible Assets, Remaining Amortization Period (Year) | 2 years 6 months | |||||||||
Amortization of Intangible Assets | $ 36 | $ 46 | $ 176 | |||||||
Employee Service-based Options [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 21,000 | |||||||||
Employee Market Condition Options [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 21,000 | |||||||||
Share-Based Payment Arrangement, Option [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 74,000 | 0 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Shares Grants in Period, Gross (in shares) | 32,000 | |||||||||
Share-Based Payment Arrangement, Expense | $ 43 | $ 21 | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 816 | $ 816 | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years 11 months 15 days | |||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 21,000 | 21,000 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 51,911 | 51,911 | ||||||||
Stock Appreciation Rights (SARs) [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 0 | 0 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 0 | 0 | 100,000 | |||||||
Equity Appreciation Right Units [Member] | ||||||||||
Share-Based Payment Arrangement, Expense | $ 0 | $ 143 | ||||||||
Stock Incentive Plan 2017 [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 350,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 75,000 | 50,000 | ||||||||
Stock Incentive Plan 2017 [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 243 | $ 243 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 1 year 11 months 15 days | |||||||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 11.80 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 9 years 11 months 15 days | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0 | |||||||||
Stock Incentive Plan 2017 [Member] | Restricted Stock Units (RSUs) [Member] | Non-employee Directors [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 21,000 | |||||||||
Share-Based Payment Arrangement, Expense | $ 5 | $ 0 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 2 years | |||||||||
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 |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Option Activity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Outstanding (in shares) | shares | 387,500 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 4.57 |
Granted (in shares) | shares | 74,000 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 10.73 |
Exercised (in shares) | shares | (10,000) |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 3.43 |
Cancelled (in shares) | shares | (600) |
Cancelled, weighted average exercise price (in dollars per share) | $ / shares | $ 3.29 |
Outstanding (in shares) | shares | 450,900 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 5.58 |
Outstanding, weighted average remaining contractual term (Year) | 7 years 1 month 13 days |
Outstanding, aggregate intrinsic value | $ | $ 2,063 |
Exercisable (in shares) | shares | 204,500 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 3.92 |
Exercisable, weighted average remaining contractual term (Year) | 6 years 3 months 25 days |
Exercisable, aggregate intrinsic value | $ | $ 889 |
Note 1 - Summary of Significa_5
Note 1 - Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Raw Materials | $ 20,221 | $ 18,492 |
Work in Process | 1,796 | 1,678 |
Finished Goods | 565 | 562 |
Reserves | (1,395) | (1,298) |
Total | $ 21,187 | $ 19,434 |
Note 1 - Summary of Significa_6
Note 1 - Summary of Significant Accounting Policies - Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Beginning balance | $ 501 | $ 1,173 | $ 1,173 |
Additions | 64 | ||
Amortization | (36) | (46) | (176) |
Abandonment Loss | 560 | ||
Ending balance | 465 | 501 | |
Customer Relationships [Member] | |||
Beginning balance | 360 | 507 | 507 |
Additions | 0 | ||
Amortization | (36) | (147) | |
Abandonment Loss | 0 | ||
Ending balance | 324 | 360 | |
Trade Names [Member] | |||
Beginning balance | 0 | 589 | 589 |
Additions | 0 | ||
Amortization | 0 | (29) | |
Abandonment Loss | 560 | ||
Ending balance | 0 | 0 | |
Patents [Member] | |||
Beginning balance | 141 | $ 77 | 77 |
Additions | 64 | ||
Amortization | 0 | 0 | |
Abandonment Loss | 0 | ||
Ending balance | $ 141 | $ 141 |
Note 1 - Summary of Significa_7
Note 1 - Summary of Significant Accounting Policies - Estimated Future Annual Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Total | $ 465 | $ 501 | $ 1,173 |
Finite-lived Intangible Assets, Excluding Projects in Process [Member] | |||
Remainder of 2022 | 109 | ||
2023 | 145 | ||
2024 | 70 | ||
Total | $ 324 |
Note 2 - Concentration of Cre_2
Note 2 - Concentration of Credit Risk and Major Customers (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($) | Mar. 31, 2021 | Dec. 31, 2021 | |
Excess Cash Balances, Number of High Credit Quality Financial Institutions | 2 | ||
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | One Customer [Member] | |||
Concentration Risk, Percentage | 23.00% | 29.00% | |
Concentration Risk Number of Customers | 1 | 1 | |
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | Largest Customer [Member] | |||
Concentration Risk, Percentage | 5.00% | 4.00% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Two Customers [Member] | |||
Concentration Risk, Percentage | 35.00% | 19.00% | |
Concentration Risk Number of Customers | 2 | 1 | |
UNITED STATES | |||
Excess Cash Balances, Number of High Credit Quality Financial Institutions | 1,000 | ||
Cash | $ 1,617 | ||
CHINA | |||
Excess Cash Balances, Number of High Credit Quality Financial Institutions | 1 | ||
Cash | $ 769 | ||
MEXICO | |||
Cash | $ 63 |
Note 3 - Revenue 1 (Details Tex
Note 3 - Revenue 1 (Details Textual) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Percentage of Revenue Transferred to Customers | 73.00% | 75.00% |
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) | Mar. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
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 | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Outstanding | $ 8,698 |
Transferred to receivables from contract assets recognized | (7,773) |
Product transferred over time | 7,189 |
Outstanding | $ 8,114 |
Note 3 - Revenue - Disaggregati
Note 3 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net sales | $ 30,711 | $ 22,072 |
Medical [Member] | ||
Net sales | 15,265 | 12,342 |
Industrial [Member] | ||
Net sales | 8,667 | 6,218 |
Aerospace and Defense [Member] | ||
Net sales | 6,778 | 3,512 |
Transferred over Time [Member] | ||
Net sales | 22,392 | 16,653 |
Transferred over Time [Member] | Medical [Member] | ||
Net sales | 9,806 | 8,959 |
Transferred over Time [Member] | Industrial [Member] | ||
Net sales | 6,529 | 4,630 |
Transferred over Time [Member] | Aerospace and Defense [Member] | ||
Net sales | 6,057 | 3,064 |
Transferred at Point in Time [Member] | ||
Net sales | 7,131 | 4,491 |
Transferred at Point in Time [Member] | Medical [Member] | ||
Net sales | 4,915 | 2,893 |
Transferred at Point in Time [Member] | Industrial [Member] | ||
Net sales | 1,791 | 1,336 |
Transferred at Point in Time [Member] | Aerospace and Defense [Member] | ||
Net sales | 425 | 262 |
Noncash Consideration [Member] | ||
Net sales | 1,187 | 928 |
Noncash Consideration [Member] | Medical [Member] | ||
Net sales | 544 | 490 |
Noncash Consideration [Member] | Industrial [Member] | ||
Net sales | 347 | 252 |
Noncash Consideration [Member] | Aerospace and Defense [Member] | ||
Net sales | $ 296 | $ 186 |
Note 4 - Financing Arrangemen_2
Note 4 - Financing Arrangements (Details Textual) - Credit Agreement [Member] $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Jun. 15, 2017USD ($) | |
Bank of America [Member] | |||
Debt Issuance Costs, Net, Total | $ 53 | $ 58 | |
Bank of America [Member] | |||
Long-Term Line of Credit, Total | $ 7,579 | $ 9,016 | |
Line of Credit, Minimum Fixed Charge Coverage Ratio During the Period | 1 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 8,021 | ||
Bank of America [Member] | Line of Credit [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 16,000 | ||
Debt Instrument, Interest Rate During Period | 3.60% | 3.50% |
Note 5 - Leases (Details Textua
Note 5 - Leases (Details Textual) | Mar. 31, 2022 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating lease cost | $ 581 | $ 531 |
Finance lease interest cost | 94 | 23 |
Finance lease amortization expense | 182 | 163 |
Total lease cost | 857 | 717 |
Cash paid for amounts included in the measurement of lease liabilities | 434 | 357 |
Property Acquired Under Operating Lease | $ 0 | $ 858 |
Operating leases (Year) | 9 years 3 months 18 days | |
Finance leases (Year) | 3 years | |
Operating leases | 7.70% | |
Finance leases | 5.20% |
Note 5 - Leases - Supplemental
Note 5 - Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Operating lease assets | $ 8,706 | $ 8,983 |
Total leased assets | 10,575 | 11,035 |
Property and Equipment [Member] | ||
Finance lease assets | $ 1,869 | $ 2,052 |
Note 5 - Leases - Maturity of L
Note 5 - Leases - Maturity of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Operating leases, Remaining 2022 | $ 1,321 |
Finance leases, Remaining 2022 | 460 |
Total, Remaining 2022 | 1,781 |
Operating leases, 2023 | 1,810 |
Finance leases, 2023 | 409 |
Total, 2023 | 2,219 |
Operating leases, 2024 | 1,509 |
Finance leases, 2024 | 357 |
Total, 2024 | 1,866 |
Operating leases, 2025 | 1,255 |
Finance leases, 2025 | 103 |
Total, 2025 | 1,358 |
Operating leases, 2026 | 1,217 |
Finance leases, 2026 | 115 |
Total, 2026 | 1,332 |
Operating leases, Thereafter | 7,066 |
Finance leases, Thereafter | 0 |
Total, Thereafter | 7,066 |
Operating leases, total lease payments | 14,178 |
Finance leases, total lease payments | 1,444 |
Total, total lease payments | 15,622 |
Operating leases, less: Interest | (4,687) |
Finance leases, less: Interest | (112) |
Total, less: Interest | (4,799) |
Operating leases, present value of lease liabilities | 9,491 |
Finance leases, present value of lease liabilities | 1,332 |
Total, present value of lease liabilities | $ 10,823 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 94.00% | 31.00% |
Note 7 - Restructuring Charges
Note 7 - Restructuring Charges (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Charges, Total | $ 0 | $ 219 |
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | 0 | 28 |
Consolidation of our Production Facilities and Closure of our Merrifield, Minnesota Facility [Member] | ||
Restructuring Charges, Total | 219 | |
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 28 | |
Restructuring Reserve, Ending Balance | $ 0 |
Note 8 - Employee Retention C_2
Note 8 - Employee Retention Credit (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Employee Retention Credit Benefits, CARES Act | $ 5,209 | $ 5,209 |
Note 9 - Related Party Transa_2
Note 9 - Related Party Transactions (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Agreement Between the BIRD Foundation, the Company, and MARPE Technologies, LTD [Member] | ||
Agreement, Conditional Grant | $ 1,000 | |
Agreement, Exclusive Manufacturing Rights, Term (Year) | 10 years | |
Abilitech Medical, Inc [Member] | Payments Received for Delivery of EMS Products [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 54 | $ 268 |
David Kunin [Member] | Marpe Technologies, LTD [Member] | Maximum [Member] | ||
Ownership, Percent | 10.00% | |
Marpe Technologies, LTD [Member] | Agreement Between the BIRD Foundation, the Company, and MARPE Technologies, LTD [Member] | ||
Agreement, Conditional Grant Matching Amount | $ 500 | |
Related Party Transaction, Expenses from Transactions with Related Party | $ 80 | 0 |
Revenue from Related Parties | $ 89 |