Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 21, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | P&F INDUSTRIES INC | ||
Entity Central Index Key | 0000075340 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 19,788,916 | ||
Trading Symbol | PFIN | ||
Entity Common Stock, Shares Outstanding | 3,177,560 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash | $ 999,000 | $ 1,241,000 |
Accounts receivable — net | 9,574,000 | 10,047,000 |
Inventories | 20,496,000 | 19,657,000 |
Prepaid expenses and other current assets | 1,137,000 | 1,224,000 |
TOTAL CURRENT ASSETS | 32,206,000 | 32,169,000 |
PROPERTY AND EQUIPMENT | ||
Land | 1,281,000 | 1,281,000 |
Buildings and improvements | 6,262,000 | 6,138,000 |
Machinery and equipment | 22,612,000 | 20,579,000 |
Property, Plant and Equipment, Gross | 30,155,000 | 27,998,000 |
Less accumulated depreciation and amortization | 20,380,000 | 19,091,000 |
NET PROPERTY AND EQUIPMENT | 9,775,000 | 8,907,000 |
GOODWILL | 4,436,000 | 4,447,000 |
OTHER INTANGIBLE ASSETS — net | 7,800,000 | 8,533,000 |
DEFERRED INCOME TAXES — net | 628,000 | 872,000 |
OTHER ASSETS — net | 741,000 | 110,000 |
TOTAL ASSETS | 55,586,000 | 55,038,000 |
CURRENT LIABILITIES | ||
Short-term borrowings | 2,096,000 | 1,928,000 |
Accounts payable | 2,755,000 | 2,443,000 |
Accrued compensation and benefits | 2,336,000 | 1,944,000 |
Accrued other liabilities | 1,243,000 | 1,576,000 |
Current maturities of long-term debt | 453,000 | 0 |
Contingent consideration payable | 1,000,000 | 0 |
TOTAL CURRENT LIABILITIES | 9,883,000 | 7,891,000 |
Long-term debt, less current maturities | 0 | 94,000 |
Other liabilities | 168,000 | 1,040,000 |
TOTAL LIABILITIES | 10,051,000 | 9,025,000 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY | ||
Preferred stock - $10 par; authorized - 2,000,000 shares; no shares issued | 0 | 0 |
Additional paid-in capital | 13,904,000 | 13,064,000 |
Retained earnings | 34,588,000 | 34,455,000 |
Treasury stock, at cost - 816,000 shares at December 31, 2018 and 631,000 shares at December 31, 2017 | (6,695,000) | (5,179,000) |
Accumulated other comprehensive loss | (672,000) | (530,000) |
TOTAL SHAREHOLDERS' EQUITY | 45,535,000 | 46,013,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 55,586,000 | 55,038,000 |
Common Class A [Member] | ||
SHAREHOLDERS' EQUITY | ||
Common stock | 4,410,000 | 4,203,000 |
TOTAL SHAREHOLDERS' EQUITY | 4,410,000 | 4,203,000 |
Common Class B [Member] | ||
SHAREHOLDERS' EQUITY | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred stock, par value (in dollars per share) | $ 10 | $ 10 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, shares | 816,000 | 631,000 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 7,000,000 | 7,000,000 |
Common stock, shares issued | 4,410,000 | 4,203,000 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 2,000,000 | 2,000,000 |
Common stock, shares issued | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net revenue | $ 64,995,000 | $ 58,974,000 |
Cost of sales | 41,808,000 | 37,890,000 |
Gross profit | 23,187,000 | 21,084,000 |
Selling, general and administrative expenses | 21,705,000 | 21,034,000 |
Operating income | 1,482,000 | 50,000 |
Other expense - net | (150,000) | (131,000) |
Interest expense - net | (223,000) | (168,000) |
Income (loss) before income taxes | 1,109,000 | (249,000) |
Income tax expense | (253,000) | (635,000) |
Net income (loss) | $ 856,000 | $ (884,000) |
Basic earnings (loss) per share | $ 0.24 | $ (0.25) |
Diluted earnings (loss) per share | $ 0.23 | $ (0.25) |
Weighted average common shares outstanding: | ||
Basic | 3,628,000 | 3,606,000 |
Diluted | 3,728,000 | 3,606,000 |
Net income (loss) | $ 856,000 | $ (884,000) |
Other comprehensive (loss) income - foreign currency translation adjustment | (142,000) | 207,000 |
Total comprehensive income (loss) | $ 714,000 | $ (677,000) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Total | Common Class A [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Treasury stock [Member] | Accumulated other comprehensive (loss) income [Member] |
Balance at Dec. 31, 2016 | $ 47,590,000 | $ 4,181,000 | $ 12,906,000 | $ 36,061,000 | $ (4,821,000) | $ (737,000) |
Balance (in shares) at Dec. 31, 2016 | 4,181,000 | (584,000) | ||||
Net income (loss) | (884,000) | $ 0 | 0 | (884,000) | $ 0 | 0 |
Exercise of stock options | 62,000 | $ 17,000 | 45,000 | 0 | 0 | 0 |
Exercise of stock options (in shares) | 17,000 | |||||
Restricted Common Stock compensation | 38,000 | $ 5,000 | 33,000 | 0 | 0 | 0 |
Restricted Common Stock compensation (in shares) | 5,000 | |||||
Stock - based compensation | 80,000 | $ 0 | 80,000 | 0 | 0 | 0 |
Purchase of Class A Common Stock | (358,000) | $ 0 | 0 | 0 | $ (358,000) | 0 |
Purchase of Class A Common Stock (in shares) | 0 | (47,000) | ||||
Dividends | (722,000) | $ 0 | 0 | (722,000) | $ 0 | 0 |
Foreign currency translation adjustment | 207,000 | 0 | 0 | 0 | 0 | 207,000 |
Balance at Dec. 31, 2017 | 46,013,000 | $ 4,203,000 | 13,064,000 | 34,455,000 | $ (5,179,000) | (530,000) |
Balance (in shares) at Dec. 31, 2017 | 4,203,000 | (631,000) | ||||
Net income (loss) | 856,000 | $ 0 | 0 | 856,000 | $ 0 | 0 |
Exercise of stock options | 806,000 | $ 200,000 | 606,000 | 0 | 0 | 0 |
Exercise of stock options (in shares) | 200,000 | |||||
Restricted Common Stock compensation | 45,000 | $ 7,000 | 38,000 | 0 | 0 | 0 |
Restricted Common Stock compensation (in shares) | 7,000 | |||||
Stock - based compensation | 196,000 | $ 0 | 196,000 | 0 | 0 | 0 |
Purchase of Class A Common Stock | (1,516,000) | $ 0 | 0 | 0 | $ (1,516,000) | 0 |
Purchase of Class A Common Stock (in shares) | 0 | (185,000) | ||||
Dividends | (723,000) | $ 0 | 0 | (723,000) | $ 0 | 0 |
Foreign currency translation adjustment | (142,000) | 0 | 0 | 0 | 0 | (142,000) |
Balance at Dec. 31, 2018 | $ 45,535,000 | $ 4,410,000 | $ 13,904,000 | $ 34,588,000 | $ (6,695,000) | $ (672,000) |
Balance (in shares) at Dec. 31, 2018 | 4,410,000 | (816,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | ||
Net income (loss) from operations | $ 856,000 | $ (884,000) |
Non-cash charges: | ||
Depreciation and amortization | 1,383,000 | 1,309,000 |
Amortization of other intangible assets | 702,000 | 800,000 |
Amortization of debt issue costs | 95,000 | 64,000 |
Amortization of consideration payable to customer | 122,000 | 0 |
Provision for doubtful accounts | 121,000 | 66,000 |
Stock-based compensation | 196,000 | 80,000 |
Restricted stock-based compensation | 45,000 | 38,000 |
(Gain) loss on sale of fixed assets | (1,000) | 21,000 |
Deferred income taxes | 253,000 | 912,000 |
Fair value increase in contingent consideration | 150,000 | 158,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 482,000 | (1,384,000) |
Inventories | (901,000) | 1,913,000 |
Prepaid expenses and other current assets | 83,000 | 1,857,000 |
Other assets | (988,000) | 45,000 |
Accounts payable | 317,000 | 40,000 |
Accrued compensation and benefits | 395,000 | 120,000 |
Accrued other liabilities | (324,000) | (502,000) |
Other liabilities | (20,000) | (19,000) |
Total adjustments | 2,110,000 | 5,518,000 |
Net cash provided by operating activities | 2,966,000 | 4,634,000 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (1,878,000) | (910,000) |
Proceeds from disposal of assets | 26,000 | 12,000 |
Purchase of net assets of Jiffy Air Tool, Inc. | 0 | (6,845,000) |
Purchase of patents | 0 | (200,000) |
Net cash used in investing activities | (1,852,000) | (7,943,000) |
Cash Flows from Financing Activities: | ||
Dividend payments | (723,000) | (722,000) |
Proceeds from exercise of stock options | 806,000 | 62,000 |
Purchase of Class A Common Stock | (1,516,000) | (358,000) |
Net proceeds from short-term borrowings | 168,000 | 1,928,000 |
Repayments of notes payable | (47,000) | (14,000) |
Payments of debt issue costs | (3,000) | (84,000) |
Net cash (used in) provided by financing activities | (1,315,000) | 812,000 |
Effect of exchange rate changes on cash | (41,000) | 39,000 |
Net decrease in cash | (242,000) | (2,458,000) |
Cash at beginning of year | 1,241,000 | 3,699,000 |
Cash at end of year | 999,000 | 1,241,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid for: Interest | 130,000 | 97,000 |
Cash paid for: Income taxes | 86,000 | 409,000 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Contingent consideration on acquisition | 0 | 692,000 |
Capital expenditures financed | $ 400,000 | $ 0 |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 1—SUMMARY OF ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements contained herein include the accounts of P&F Industries, Inc. and its subsidiaries (“P&F” or the “Company”). All significant intercompany balances and transactions have been eliminated. The Company P&F is a Delaware corporation incorporated on April 19, 1963. The Company conducts its business through a wholly-owned subsidiary, Continental Tool Group, Inc. (“Continental”), which in turn operates through its wholly-owned subsidiaries, Florida Pneumatic Manufacturing Corporation (“Florida Pneumatic”) and Hy-Tech Machine, Inc. (“Hy-Tech”). Exhaust Technologies Inc. (“ETI”) and Universal Air Tool Company Limited (“UAT”) are wholly-owned subsidiaries of Florida Pneumatic. Effective April 5, 2017, the Company purchased substantially all of the operating assets, less certain payables of Jiffy Air Tool, Inc., through a wholly-owned subsidiary of Florida Pneumatic. See Note 2 to our consolidated financial statements for further discussion. Lastly, the business of Air Tool Service Company (“ATSCO”) operates through a wholly-owned subsidiary of Hy-Tech. Florida Pneumatic imports and sells pneumatic hand tools, most of which are of its own design, primarily to the retail, industrial, automotive and aerospace markets. It also markets, through its Berkley Tool division (“Berkley”), a product line which includes pipe and bolt dies, pipe taps, wrenches, vises and stands, pipe and tubing cutting equipment, hydrostatic test pumps, and replacement electrical components for a widely-used brand of pipe cutting and threading machines. Hy-Tech designs, manufactures and distributes industrial pneumatic tools, industrial gears, hydrostatic test plugs and a wide variety of parts under the brands ATP, ATSCO, OZAT, Numatx, Thaxton and Quality Gear. Industries served include power generation, petrochemical, construction, railroad, mining, ship building and fabricated metals. Hy-Tech also manufactures components, assemblies, finished product and systems for various Original Equipment Manufacturers (“OEM”) under their own brand names. Basis of Financial Statement Presentation The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States (“US GAAP”). Revenue Recognition The Company’s significant accounting policy relating to revenue recognition reflects the impact of the adoption of ASC 606, defined below, effective January 1, 2018. The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"). The Company sells its goods on terms which transfer title and risk of loss at a specified location, which may be our warehouse, destination designated by our customer, port of loading or port of discharge, depending on the final destination of the goods. Other than standard product warranty provisions, our sales arrangements provide for no other post-shipment obligations. The Company offers rebates and other sales incentives, promotional allowances or discounts for certain customers, typically related to customer purchase volume, and are classified as a reduction of revenue and recorded at the time of sale, using the most likely amount approach. The Company periodically evaluates whether an allowance for sales returns is necessary. Historically, we have experienced minimal sales returns. If the Company believes there are material potential sales returns, it would provide the necessary provision against sales. The Company's performance obligations underlying its core revenue sources remain substantially unchanged. Its revenue is generated through the sale of finished products, and is generally recognized at the point in time when merchandise is transferred to the customer with a fixed payment due generally within 30 to 90 days, and in an amount that considers the impacts of estimated allowances. Further, the Company has made a policy election to account for shipping and handling activities that occur after the customer has obtained control of the products as fulfillment costs rather than as an additional promised service. This election is consistent with the Company’s prior policy, and therefore the adoption of ASC 606 relating to shipping and handling activities did not have any impact on its financial results. Additionally, as the result of the adoption of ASC 606, the Company accounts for certain expenses that in prior periods were accounted for as a selling expense, which are now treated as an adjustment to gross revenue. Accordingly, during the full year 2018, the Company reduced its net revenue, gross margin and selling expenses by approximately $1,007,000. Additionally, at December 31, 2018, the Company included in its allowance for doubtful accounts approximately $105,000 that would have been accounted for in its current liabilities prior to the adoption of ASC 606. There are no remaining performance obligations as of December 31, 2018. The Company analyzes its revenue as follows: Revenue generated at Florida Pneumatic. Year Ended December 31, 2018 2017 Increase (decrease) Revenue Percent of revenue Revenue Percent of revenue $ % Retail customers $ 18,234,000 35.9 % $ 19,894,000 42.8 % $ (1,660,000 ) (8.3 )% Automotive 14,430,000 28.5 13,901,000 29.9 529,000 3.8 Industrial/catalog 6,784,000 13.4 5,303,000 11.4 1,481,000 27.9 Aerospace 10,611,000 20.9 6,506,000 14.0 4,105,000 63.1 Other 661,000 1.3 867,000 1.9 (206,000 ) (23.8 ) Total $ 50,720,000 100.0 % $ 46,471,000 100.0 % $ 4,249,000 9.1 % Revenue generated at Hy-Tech. Year Ended December 31, 2018 2017 Increase (decrease) Revenue Percent of revenue Revenue Percent of revenue $ % ATP $ 12,958,000 90.8 % $ 11,116,000 88.9 % $ 1,842,000 16.6 % Other 1,317,000 9.2 1,387,000 11.1 (70,000 ) (5.0 ) Total $ 14,275,000 100.0 % $ 12,503,000 100.0 % $ 1,772,000 14.2 % Shipping and Handling Costs Expenses for shipping and handling costs are included in selling, general and administrative expenses, and totaled approximately $ 2,370,000 2,017,000 Cash and Cash Equivalents Cash and cash equivalents consist of cash held in bank demand deposits. The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. There were no cash equivalents at December 31, 2018 and 2017. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash, accounts receivable, accounts payable and short-term debt approximate fair value as of December 31, 2018 and 2017 because of the relatively short-term maturity of these financial instruments. The carrying amounts reported for long-term debt approximate fair value as of December 31, 2018 and 2017 because, in general, the interest rates underlying the instruments fluctuate with market rates. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are customer obligations due under normal trade terms. The Company sells its products to retailers, distributors and original equipment manufacturers involved in a variety of industries. The Company performs continuing credit evaluations of its customers’ financial condition, and although the Company generally does not require collateral, letters of credit may be required from customers in certain circumstances. Management reviews accounts receivable to determine if any receivables will potentially be uncollectible. Factors considered in the determination include, among other factors, number of days an invoice is past due, customer historical trends, available credit ratings information, other financial data and the overall economic environment. Collection agencies may also be utilized if management so determines. The Company records an allowance for doubtful accounts based on specifically identified amounts that are believed to be uncollectible. The Company also records as an additional allowance a certain percentage of aged accounts receivable, based on historical experience and the Company’s assessment of the general financial conditions affecting its customer base. If actual collection experience changes, revisions to the allowance may be required. The Company has a limited number of customers with individually large amounts due at any given balance sheet date. Any unanticipated change in the creditworthiness of any of these customers could have a material effect on the Company’s results of operations in the period in which such changes or events occur. After all reasonable attempts to collect an account receivable have failed, the amount of the receivable is written off against the allowance. Based on the information available, the Company believes that its allowance for doubtful accounts as of December 31, 2018 is adequate. However, actual write-offs might exceed the recorded allowance. Concentrations of Credit Risk The Company places the majority of its cash with its primary bank, Capital One Bank, National Association (“Capital One”), which is insured by the Federal Deposit Insurance Corporation (“FDIC”). Significant concentrations of credit risk may arise from the Company’s cash maintained at Capital One, as from time to time cash balances may exceed the FDIC limits. Financial instruments that potentially subject the Company to concentration of credit risk consist principally of accounts receivable. The Company had one customer that accounted for 32.6% and 31.0% of our consolidated accounts receivable at December 31, 2018 and December 31, 2017, respectively. This customer accounted for 26.5% and 27.1% of the Company’s consolidated revenue in 2018 and 2017, respectively. There was no other customer that accounted for more than 10% of our consolidated revenue in 2018 or 2017. Inventories Inventories are valued at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method or the weighted average method. The inventory balance, which includes raw materials, labor, and manufacturing overhead costs, is recorded net of an allowance for obsolete or unmarketable inventory. Such allowance is based upon both historical experience and management’s understanding of market conditions and forecasts of future product demand. If the actual amount of obsolete or unmarketable inventory significantly exceeds the estimated allowance, the Company’s cost of sales, gross profit and net earnings would be significantly affected. Property and Equipment and Depreciation and Amortization Property and equipment are stated at cost less accumulated depreciation and amortization. Generally, the Company capitalizes items in excess of $1,000. Minor replacements and maintenance and repair items are charged to expense as incurred. Upon disposal or retirement of assets, the cost and related accumulated depreciation are removed from the Company’s consolidated balance sheets. Depreciation of buildings and machinery and equipment is computed by using the straight-line method over the estimated useful lives of the assets. Buildings are depreciated over periods ranging from 27.5 to 31 years, and machinery and equipment is depreciated over periods ranging from 3 to 10 years. Leasehold improvements are amortized over the life of the lease or the useful life of the related asset, whichever is shorter. Long-Lived Assets In accordance with authoritative guidance pertaining to the accounting for the impairment or disposal of long-lived assets, property and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company’s assessment of recoverability of property and equipment is performed on an entity level. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of such asset to its estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of such asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Acquisitions The Company accounts for acquired businesses using the purchase method of accounting, which requires that the assets acquired, liabilities assumed, and contingent consideration, if any, are recorded as of the date of the acquisition at their respective fair values. It further requires that acquisition-related costs be recognized separately from the acquisition and expensed as incurred and that restructuring costs be expensed in periods subsequent to the acquisition date. Generally, the Company engages third party valuation appraisal firms to assist it in determining the fair values and useful lives of the assets acquired and liabilities assumed. The Company records a preliminary purchase price allocation for its acquisitions and finalizes purchase price allocations as additional information relative to the fair values of the assets acquired become known. Goodwill, Intangible and Long-Lived Assets Goodwill is carried at cost less any impairment charges. Goodwill and intangible assets with indefinite lives are not amortized but are subject to an annual test for impairment at the entity unit level (operating segment or one level below an operating segment) and between annual tests in certain circumstances. In accordance with authoritative guidance issued by the Financial Accounting Standards Board, (“FASB”), the Company tests goodwill for impairment on an annual basis. This test occurs in the fourth quarter or more frequently if the Company believes indicators of impairment exist. An entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount. If the carrying amount of the reporting unit is less than its fair value, no impairment exists and no further action is required. If the carrying amount of a reporting unit exceeds its fair value, the entity will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. Intangible assets other than goodwill and intangible assets with indefinite lives, are carried at cost less accumulated amortization. Intangible assets are generally amortized on a straight-line basis over their respective useful lives, generally 3 to 20 years. Long-lived assets and certain identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the amount by which the carrying value exceeds the fair value of the asset. Warranty Liability The Company offers certain warranties against product defects for periods ranging from one to three years. Certain products carry limited lifetime warranties. The Company’s typical warranties require it to repair or replace the defective products during the warranty period at no cost to the customer. At the time the product revenue is recognized, the Company records a liability for estimated costs. The costs are estimated based on revenue and historical experience. The Company periodically assesses the adequacy of its warranty liability and adjusts the amounts as necessary. While the Company believes that its estimated liability for product warranties is adequate and that the judgment applied is appropriate, the estimated liability for the product warranties could differ materially in the future. Income Taxes The Company accounts for income taxes using the asset and liability approach. This approach requires the recognition of current tax assets or liabilities for the amounts refundable or payable on tax returns for the current year, as well as the recognition of deferred tax assets or liabilities for the expected future tax consequences of temporary differences that can arise between (a) the amount of taxable income and pretax financial income for a year, such as from net operating loss carryforwards and other tax credits, and (b) the tax bases of assets or liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates. The impact on deferred tax assets and liabilities of changes in tax rates and laws, if any, is reflected in the consolidated financial statements in the period enacted. Further, the Company evaluates the likelihood of realizing benefit from our deferred tax assets by estimating future sources of taxable income and the impact of tax planning strategies. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. The Company files a consolidated Federal tax return. P&F and certain of its subsidiaries file combined tax returns in New York, California and Texas. All subsidiaries, other than UAT, file other state and local tax returns on a stand-alone basis. UAT files an income tax return to the taxing authorities in the United Kingdom. Tax benefits are recognized for an uncertain tax position when, in the Company’s judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more likely-than-not recognition threshold, the tax benefit is measured as the largest amount that is judged to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. The liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances and when new information becomes available. Such adjustments are recognized entirely in the period in which they are identified. The effective tax rate includes the net impact of changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by the Company. Interest and penalties recognized on the liability for unrecognized tax benefits are recorded as income tax expense. The authoritative guidance for income taxes requires a reduction of the carrying amounts of deferred tax assets by recording a valuation allowance if, based on the available evidence, it is more likely than not (defined as a likelihood of more than 50%) such assets will not be realized. The valuation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in the Company's financial statements or tax returns and future profitability. The Company's accounting for deferred tax consequences represents its best estimate of those future events. Changes in the Company's estimates, due to unanticipated events or otherwise, could have a material effect on its financial condition and results of operations. The Company continually evaluates its deferred tax assets to determine if a valuation allowance is required. Current accounting guidance requires entities to account for the effects of new income tax legislation in the same reporting period that the tax legislation is enacted. Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, permits the Company to calculate and recognize provisional tax estimates for the fourth quarter of fiscal 2017 for the accounting related to the enactment of the U.S. Tax Cuts and Jobs Act of 2017 (the "Act"). As a result, we have recognized the provisional tax impacts related to deemed repatriated earnings and the revaluation of deferred tax assets and liabilities in our consolidated financial statements for the year ended December 31, 2017. During 2018, we finalized our computation of the impact of the Act. Additional information is contained in Note 10, Income Taxes, to the consolidated financial statements. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance allows companies to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which they are subject to the rules (the period cost method), or (ii) account for GILTI in the Company’s measurement of deferred taxes (the deferred method). After completing the analysis of the GILTI provisions, the Company elected to account for GILTI using the period cost method. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, possible disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis P&F evaluates its estimates, including those related to collectability of accounts receivable, valuation of inventories, recoverability of goodwill and intangible assets, consideration payable to customer and income taxes. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not apparent from other sources. Actual results may differ from those estimates under different assumptions or conditions. Advertising The Company expenses its costs of advertising in the period in which they are incurred. Advertising costs for the years ended December 31, 2018 and 2017 were $1,375,000 and $1,276,000, respectively. Earnings Per Common Share Basic earnings per common share exclude any dilution. It is based upon the weighted average number of shares of Common Stock outstanding during the year. Diluted earnings per common share reflect the effect of shares of Common Stock issuable upon the exercise of stock options, unless the effect on earnings is anti-dilutive. Diluted earnings per common share is computed using the treasury stock method. Under this method, the aggregate number of shares of Common Stock outstanding reflects the assumed use of proceeds from the hypothetical exercise of any outstanding options to purchase shares of the Company’s Class A Common Stock. The average market value for the period is used as the assumed purchase price. The following table sets forth the computation of basic and diluted earnings (loss) per common share: Years Ended December 31, 2018 2017 Numerator for basic and diluted earnings (loss) per common share: Net income (loss) $ 856,000 $ (884,000 ) Denominator: Denominator for basic income (loss) per share—weighted average common shares outstanding 3,628,000 3,606,000 Denominator for diluted income (loss) per share—adjusted weighted average common shares and assumed conversions 3,728,000 3,606,000 The average anti-dilutive options outstanding for the year ended December 31, 2018 was 12,000. For the year ended December 31, 2017, the Company experienced a net loss; as a result, there is no calculation of diluted earnings per share. Share-Based Compensation In accordance with US GAAP, the Company measures and recognizes compensation expense for all share-based payment awards based on estimated fair values. Share-based compensation expense is included in selling, general and administrative expense on the accompanying consolidated statements of operations and comprehensive income (loss). With respect to stock options, US GAAP requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statements of operations and comprehensive income (loss). The Company records compensation expense ratably over the vesting periods. The Company estimates forfeitures at the time of grant and revises this estimate, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company uses the Black-Scholes option-pricing model as its method of valuation for share-based awards granted. As such, the Company’s determination of fair value of share-based payment awards is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, relevant interest rates, and the expected term of the awards. With respect to any issuance of its Common Stock, the Company determines fair value per share as the closing price of its Common Stock on the date of the grant of said shares. Foreign Currency Translation The assets and liabilities of international operations are translated at the exchange rates in effect at the balance sheet date. Revenue and expense accounts are translated at the monthly average exchange rates. Adjustments arising from the translation of the foreign currency financial statements of the Company's international operations are reported as a component of "Accumulated other comprehensive loss" in the Company's consolidated balance sheets. For foreign currency remeasurement from each local currency into the appropriate functional currency, monetary assets and liabilities are remeasured to functional currencies using current exchange rates in effect at the balance sheet date. Gains or losses from these remeasurements were not significant and have been included in the Company’s consolidated statements of operations and comprehensive income (loss). Non-monetary assets and liabilities are recorded at historical exchange rates, and the related remeasurement gains or losses are reported as a component of "Accumulated other comprehensive loss" in the Company's consolidated balance sheets. Going concern assessment In accordance with current accounting literature, the Company assesses going concern uncertainty in its financial statements to determine if it will have sufficient cash on hand and working capital, including available borrowings on loans, to operate for a period of at least one year from the date the financial statements are issued or available to be issued, which is referred to as the “look-forward period”, as defined in the current accounting guidance. As part of this assessment, based on conditions that are known and reasonably knowable to the Company, it will consider various scenarios, forecasts, projections, estimates and will make certain key assumptions, including the timing and nature of projected cash expenditures or programs, and its ability to delay or curtail expenditures or programs, if necessary, among other factors. Based on this assessment, as necessary or applicable, the Company will make certain assumptions around implementing curtailments or delays in the nature and timing of programs and expenditures to the extent the Company deems probable those implementations can be achieved and it will have the proper authority to execute them within the look-forward period. Our assessment determined the Company is a going concern. New Accounting Pronouncements Recently Adopted In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which simplified the testing of goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measured a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. ASU 2017-04 is effective for public companies for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company concluded that ASU 2017-04 is preferable to the current guidance due to efficiency, since ASU 2017-04 eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. The Company adopted ASU 2017-04 in 2017, in conjunction with its annual impairment test of goodwill for all reporting units. The adoption of ASU 2017-04 did not have a material impact on the Company’s financial results. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments . The amendments in ASU 2016-15 are intended to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows, with the intent of reducing diversity in practice for the eight types of cash flows identified. ASU 2016-15 is effective for public companies' fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017. The adoption of ASU 2016-15 as of January 1, 2018 had no material effect on the Company’s financial position, results of operations or cash flows. The Company adopted ASC 606 on the first day of fiscal 2018. Its underlying principle is to use a five-step analysis of transactions to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The Company has elected to use the modified retrospective approach. As the Company did not have any sales contracts that were not completed as of January 1, 2018, there is no adjustment required to its retained earnings. The adoption of ASC 606 did not have an effect on the Company’s cash flows. The adoption of ASC 606 did however, require the Company to classify certain expenses previously classified as selling and general and administrative expenses prior to the adoption to a reduction of gross revenue and gross margin. The adoption of ASC 606 had no material effect on the Company’s income before taxes. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases . This ASU is a comprehensive new leases standard that amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. It will require companies to recognize lease assets and lease liabilities by lessees for those leases classified as operating leases under previous US GAAP. ASC Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases’ guidance. The ASU is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years; earlier adoption is permitted. The ASU offers two transition methods: (1) a modified retrospective approach, in which leases shall be measured and recognized at the beginning of the earliest comparative period presented with an adjustment to equity in the financial statements in which the ASU is first applied or (2) a prospective approach, in which a company is allowed to initially apply the new lease standard at the adoption date. The Company will use the prospective approach. Practical expedients are available for election. The Company has completed its assessment of all leases and the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. Th us far the Company believes the adoption of this standard will not have a material effect on its consolidated financial statements. In February 2018, the FASB issued No. ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). Under ASU 2018-02, an entity may elect to reclassify the income tax effects of the Tax Reform |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 2 –ACQUISITION On April 5, 2017 (the “Jiffy Closing Date”), Bonanza Holdings Corp. (now known as Jiffy Air Tool, Inc.), a Delaware corporation and newly formed wholly-owned subsidiary (“Jiffy”) of Florida Pneumatic, Jiffy Air Tool, Inc. a Nevada corporation (“Jiffy Seller”), The Jack E. Pettit—1996 Trust, the sole shareholder of Jiffy Seller and Jack E. Pettit, entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”), pursuant to which, among other things, Jiffy acquired (the “Jiffy Acquisition”) substantially all of the operating assets of Jiffy Seller for $5,950,000, in addition to the assumption of certain payables and contractual obligations as set forth in the Asset Purchase Agreement. Jiffy manufactures and distributes pneumatic tools and components, primarily sold to aerospace manufacturers. The purchase price was $5,950,000, less a post-closing working capital adjustment of $155,000, which was paid by Jiffy Seller to the Company in June 2017. Additionally, Jiffy Seller may be entitled to up to $1,000,000 in additional consideration, which is contingent upon Jiffy achieving certain revenue thresholds and other criteria as set forth in the Asset Purchase Agreement within two defined measurement periods occurring within approximately the first two years following the Jiffy Closing Date. The Company estimated that as of December 31, 2018, Jiffy will meet the revenue thresholds and other criteria and has accordingly accrued the $1,000,000 contingent consideration payable to the Jiffy Seller. Additionally, the Company recorded $150,000 and $158,000 in 2018 and 2017, respectively, as adjustments to the fair value of the contingent consideration. In connection with the Asset Purchase Agreement, a separate Purchase and Sale Agreement and Joint Escrow Instructions (the “Purchase and Sale Agreement” and together with the Asset Purchase Agreement, the “Agreements”) were entered into between Jiffy Seller and Bonanza Properties Corp. (“Bonanza Properties”), a Delaware corporation and newly formed wholly-owned subsidiary of Florida Pneumatic, pursuant to which Bonanza Properties purchased certain real property of Jiffy Seller. Pursuant to the Purchase and Sale Agreement, the purchase price for the real property was $1,050,000. The initial total consideration ($5,950,000 plus $1,050,000) was paid by Jiffy to Jiffy Seller from funds available under the Revolver, as defined in Note 7, less certain amounts escrowed pursuant to, among others, the terms of the Agreements. Total Cash paid at closing $ 7,000,000 Less working capital adjustment (155,000 ) Fair value of contingent consideration 692,000 Total estimated purchase price $ 7,537,000 The following table presents purchase price allocation: Accounts receivable $ 789,000 Inventories 1,571,000 Other current assets 45,000 Land 131,000 Building 919,000 Machinery and equipment 1,196,000 Identifiable intangible assets: Customer relationships 1,670,000 Trademarks and trade names 790,000 Non-compete agreements 17,000 Liabilities assumed (125,000 ) Goodwill 534,000 Total estimated purchase price $ 7,537,000 The excess of the total purchase price over the fair value of the net assets acquired, including the value of the identifiable intangible assets, has been allocated to goodwill. Goodwill will be amortized over 15 years for tax purposes, but not deductible for financial reporting purposes. The intangible assets subject to amortization will be amortized over 15 years for tax purposes. For financial reporting purposes, useful lives have been assigned as follows: Customer relationships 15 years Trademarks and trade names Indefinite Non-compete agreements 4 years The following unaudited pro-forma combined financial information gives effect to the Jiffy Acquisition as if the Jiffy Acquisition was consummated January 1, 2017. This unaudited pro-forma financial information is presented for information purposes only, and is not intended to present actual results that would have been attained had the Jiffy Acquisition been completed as of January 1, 2017 (the beginning of the earliest period presented) or to project potential operating results as of any future date or for any future periods. For the Year Ended December 31, 2017 Revenue $ 60,451,000 Net loss from continuing operations $ (779,000 ) Loss per share – basic $ (0.22 ) Loss per share – diluted $ (0.22 ) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | NOTE 3—FAIR VALUE MEASUREMENTS Accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Under this guidance, the Company is required to classify certain assets and liabilities based on the following hierarchy: Level 1: Quoted prices for identical assets or liabilities in active markets that can be assessed at the measurement date. Level 2: Inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Inputs reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. The guidance requires the use of observable market data if such data is available without undue cost and effort. As of December 31, 2018 and 2017, the carrying amounts reflected in the accompanying consolidated balance sheets for current assets and current liabilities approximated fair value due to the short-term nature of these accounts. Assets and liabilities measured at fair value on a non-recurring basis include goodwill and intangible assets. Such assets are reviewed quarterly for impairment indicators. If a triggering event has occurred, the assets are re-measured when the estimated fair value of the corresponding asset group is less than the carrying value. The fair value measurements, in such instances, are based on significant unobservable inputs (Level 3). |
ACCOUNTS RECEIVABLE AND ALLOWAN
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 4—ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable - net consists of: December 31, 2018 December 31, 2017 Accounts receivable $ 9,847,000 $ 10,199,000 Allowance for doubtful accounts, sales discounts and chargebacks (273,000 ) (152,000 ) $ 9,574,000 $ 10,047,000 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 5—INVENTORIES Inventories consist of: December 31, 2018 December 31, 2017 Raw materials $ 1,963,000 $ 1,871,000 Work in process 1,924,000 1,556,000 Finished goods 16,609,000 16,230,000 $ 20,496,000 $ 19,657,000 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 6—GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and other intangible assets with indefinite lives are tested annually or whenever events or circumstances indicate the carrying value of these assets may not be recoverable. In accordance with authoritative guidance issued by the FASB, the Company performed an annual impairment test of goodwill and indefinite-lived intangible assets during the fourth quarter based on conditions as of November 30, 2018. For both 2018 and 2017, with respect to Florida Pneumatic and Hy-Tech, the Company determined their fair value using the income approach methodology of valuation, which considers the expected present value of future cash flows. As an integral part of the valuation process the Company utilizes its latest cash flows forecasts for the next four fiscal years, and then applies projected minimal growth for all remaining years, based upon available statistical data and management’s estimates. The result of the Company’s impairment test for Florida Pneumatic determined that its fair value exceeded the carrying value and, as such, no impairment to Goodwill and other intangible assets was recorded in 2018. Changes in the carrying amount of goodwill are as follows: Balance, January 1, 2018 $ 4,447,000 Currency translation adjustment (11,000 ) Balance, December 31, 2018 $ 4,436,000 Other intangible assets were as follows: December 31, 2018 December 31, 2017 Cost Accumulated amortization Net book value Cost Accumulated amortization Net book value Other intangible assets: Customer relationships (1) $ 6,821,000 $ 2,135,000 $ 4,686,000 $ 6,836,000 $ 1,570,000 $ 5,266,000 Trademarks and trade names (1) 2,308,000 — 2,308,000 2,329,000 — 2,329,000 Trademarks and trade names 200,000 32,000 168,000 200,000 19,000 181,000 Engineering drawings 330,000 202,000 128,000 330,000 175,000 155,000 Non-compete agreements (1) 233,000 223,000 10,000 239,000 210,000 29,000 Patents 1,405,000 905,000 500,000 1,405,000 832,000 573,000 Totals $ 11,297,000 $ 3,497,000 $ 7,800,000 $ 11,339,000 $ 2,806,000 $ 8,533,000 (1) A portion of these intangibles are maintained in a foreign currency, and are therefore subject to foreign exchange rate fluctuations. Changes in the carrying amount of other intangibles are as follows: Cost Accumulated amortization Net book value Balance, January 1, 2018 $ 11,339,000 $ 2,806,000 $ 8,533,000 Amortization — 702,000 (702,000 ) Currency translation adjustment (42,000 ) (11,000 ) (31,000 ) Balance, December 31, 2018 $ 11,297,000 $ 3,497,000 $ 7,800,000 The weighted average amortization period for intangible assets was as follows: December 31, 2018 December 31, 2017 Customer relationships 9.3 10.1 Trademarks and trade names 12.5 13.5 Engineering drawings 7.7 8.1 Non-compete agreements 2.3 1.8 Patents 7.9 8.8 Amortization expense of intangible assets subject to amortization was as follows: Year ended December 31, 2018 2017 $ 702,000 $ 800,000 Amortization expense for each of the next five years and thereafter is estimated to be as follows: 2019 $ 682,000 2020 643,000 2021 635,000 2022 634,000 2023 634,000 Thereafter 2,264,000 $ 5,492,000 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 7—DEBT In October 2010, the Company entered into a Loan and Security Agreement (“Credit Agreement”) with an affiliate of Capital One, National Association (“Capital One” or the “Bank”). The Credit Agreement, as amended from time to time, among other things, provides the ability to borrow funds under a Revolver arrangement. Revolver borrowings are secured by the Company’s accounts receivable, inventory, equipment and real property. Additionally, there is a $1,600,000 line available for capital expenditures (“Capex line”). The Credit Agreement includes a $100,000 Term Loan, as defined in the Credit Agreement. This Term Loan remains in place to enable the Company and Capital One to facilitate future term loan borrowings more efficiently and in a less costly manner. P&F and certain of its subsidiaries are borrowers under the Credit Agreement, and their obligations are cross-guaranteed by certain other subsidiaries. The Credit Agreement had an expiration date of February 11, 2019. The Company and the bank extended the Credit Agreement to February, 2024. See Note 12 – Subsequent events, for further discussion. At the Company’s option, Revolver borrowings bear interest at either LIBOR (“London interbank Offered Rate”) or the Base Rate, as the term is defined in the Credit Agreement, plus an Applicable Margin, as defined in the Credit Agreement. We are subject to limitations on the number of LIBOR borrowings. Applicable Margins rates at December 31, 2018 and 2017 were 1.50% and 1.75%, respectively. The Applicable Margin added to the Base Rate borrowings at December 31, 2018 and 2017 were 0.50% and 0.75%, respectively. Contemporaneously, with the acquisition of the Jiffy business discussed in Note 2 to the consolidated financial statements, we entered into a Second Amended and Restated Loan and Security Agreement (the “2017 Agreement”) with Capital One. The 2017 Agreement, among other things, amended the Credit Agreement by: (1) increasing the maximum amount we can borrow under the Revolver Commitment (as defined) to $16,000,000, subject to certain borrowing base criteria, and (2) modifying certain borrowing base criteria as well as financial and other covenants. We incurred approximately $84,000 of debt issue costs in connection with the 2017 Agreement. The Company provides Capital One monthly financial statements, borrowing base certificates and certificates of compliance with various financial covenants. Should an event of default occur the interest rate would increase by two percent per annum during the period of default, in addition to other remedies provided to Capital One. We believe that should a need arise whereby the current credit facility is insufficient, we can borrow additional amounts against our real property or other assets. At December 31, 2018, our short-term or Revolver borrowing was $2,096,000, compared to $1,928,000, at December 31, 2017. Applicable Margin Rates, at December 31, 2018 for LIBOR and Base Rates were 1.50% and 0.50%, respectively, and 1.75% and 0.75%, respectively at December 31, 2017. Additionally, at December 31, 2018 and 2017, there was approximately $ 12,024,000 12,450,000 The average balance of short-term borrowings during the years ended December 31, 2018 and 2017, were $3,113,000 and $3,092,000, respectively. LIBOR Base Rate % % Range of Applicable Margins added to Revolver borrowings during 2018 and 2017 1.50 points to 0.50 points to There is a $100,000 Term Loan that is secured by mortgages on the real property, accounts receivable, inventory and equipment. The Term Loan borrowings can be at either LIBOR, or at the Base Rate, or a combination of the two plus the Applicable Margins. At December 31, 2018 and 2017 the total borrowing of this Term Loan was at LIBOR. The Applicable Margin for LIBOR at December 31, 2018 and 2017 was 1.5 In April 2018, the Company borrowed $400,000 against the Capex line. This borrowing is to be repaid in equal principle installments of approximately $6,700, payable monthly, with the balance due at its Maturity Date as defined in the Credit Agreement. $300,000 of this borrowing is at LIBOR plus Applicable Margin, with the balance of $100,000 at the Base Rate, or prime rate plus Applicable Margin. The Applicable Margin added to the all Base Rate, and LIBOR borrowings were 1.50% and 0.50%, respectively. At December 31, 2018, the balance due on the Capex loan was $354,000 and is included in Current Liabilities on its Consolidated Financial Statement. The Company’s Term loan borrowings are: December 31, 2018 December 31, 2017 Term Loan $ 100,000 $ 100,000 Capex borrowing 354,000 — Debt issue costs (1,000 ) (6,000 ) 453,000 94,000 Less current maturities 453,000 — $ — $ 94,000 |
STOCK OPTIONS - STOCK COMPENSAT
STOCK OPTIONS - STOCK COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 8—STOCK OPTIONS – STOCK COMPENSATION The Company’s stockholders approved the P&F Industries, Inc. 2012 Stock Incentive Plan (the “2012 Plan”). The 2012 Plan authorizes the issuance to employees, consultants and non-employee directors of nonqualified stock options, stock appreciation rights, restricted stock, performance shares, performance units, and other stock-based awards. In addition, employees are eligible to be granted incentive stock options under the 2012 Plan. The 2012 Plan is currently administered by the compensation committee of the Company’s Board of Directors (the “Committee”). The aggregate number of shares of the Company’s Class A Common Stock (“Common Stock”) that may be issued under the 2012 Plan may not exceed 325,000 shares; provided, however, that any shares of Common Stock that are subject to a stock option, stock appreciation right or other stock-based award that is based on the appreciation in value of a share of Common Stock in excess of an amount equal to at least the fair market value of the Common Stock on the date such other stock-based award is granted (each an “Appreciation Award”) will be counted against this limit as one share for every share granted. Any shares of restricted stock or shares of Common Stock that are subject to any other award other than Appreciation Award will be counted against this limit as 1.5 shares for every share granted. The maximum number of shares of Common Stock with respect to which any award of stock options, stock appreciation rights or other Appreciation Award that may be granted under the 2012 Plan during any fiscal year to any eligible employee or consultant will be 100,000 shares per type of award. The maximum number of shares of Common Stock subject to any award of performance shares for any performance period, other stock-based awards that are not Appreciation Awards, or shares of restricted stock for which the grant of such award or the lapse of the relevant restriction period is subject to the attainment of specified performance goals that may be granted under the 2012 Plan during any fiscal year to any eligible employee or consultant will be 65,000 shares per type of award. The maximum number of shares of Common Stock for all such types of awards to any eligible employee or consultant will be 165,000 shares during any fiscal year. There are no annual limits on the number of shares of Common Stock with respect to an award of restricted stock that is not subject to the attainment of specified performance goals to eligible employees or consultants. The maximum value at grant of performance units which may be granted under the 2012 Plan during any fiscal year will be $1,000,000. The maximum number of shares of Common Stock subject to any award which may be granted under the 2012 Plan during any fiscal year of the Company to any non-employee director will be 35,000 shares. With respect to stock options, the Committee determines the number of shares of Common Stock subject to each option, the term of each option, which may not exceed ten years (or five years in the case of an incentive stock option granted to a 10% stockholder), the exercise price, the vesting schedule (if any), and the other material terms of each option. No stock option may have an exercise price less than the fair market value of the Common Stock at the time of grant (or, in the case of an incentive stock option granted to a 10% stockholder, 110% of fair market value). With respect to all other permissible grants under the 2012 Plan, the Committee will determine their terms and conditions, subject to the terms and conditions of the 2012 Plan. The 2012 Plan, which terminates in May 2022, is the successor to the Company’s 2002 Stock Incentive Plan (“Previous Plan”) – see below. Stock option awards made under the Previous Plan will continue in effect and remain governed by the provisions of that plan. The Company’s Previous Plan authorized the issuance to employees and directors of options to purchase a maximum of 1,100,000 shares of Common Stock. These options had to be issued within ten years of the effective date of the Previous Plan and are exercisable for a ten-year period from the date of grant, at prices not less than 100% of the closing market value of the Common Stock on the date the option is granted. In the event options granted contained a vesting schedule over a period of years, the Company recognized compensation cost for these awards ratably over the service period. The Company did not issue any options to purchase shares of its Common Stock during 2018. On September 5, 2017, the Committee authorized the issuance of options to purchase 89,000 shares of the Company’s Common Stock. This grant was comprised of an aggregate of 55,000 options issued to the Company’s Chief Executive Officer and its Chief Operating and Financial Officer, with the balance of 34,000 options being issued to non-executive employees. All options within this grant have an exercise price of $7.09. The options granted vest as to one third on each of the anniversary dates in 2018, 2019 and 2020. All the options granted have a ten-year life. The following table contains information on the status of the Company’s stock options: Number of Shares Weighted Average Exercise Price per share Aggregate Intrinsic Value Outstanding, January 1, 2017 423,817 $ 5.68 Granted 89,000 7.09 Exercised (16,722 ) 3.65 Forfeited (6,793 ) 7.86 Expired (71,069 ) 10.72 Outstanding, December 31, 2017 418,233 5.17 Granted - Exercised (200,158 ) 4.02 Forfeited - Expired - Outstanding, December 31, 2018 218,075 $ 6.22 $ 335,310 Vested, December 31, 2018 158,742 $ 5.90 $ 297,337 The following is a summary of changes in non-vested shares, all of which are expected to vest: December 31, 2018 2017 Option Shares Weighted Average Grant-Date Fair Value Option Shares Weighted Average Grant-Date Fair Value Non-vested shares, beginning of year 89,000 4.41 — $ — Granted — — 89,000 4.41 Vested 29,667 4.41 — — Forfeited — — — — Non-vested shares, end of year 59,333 4.41 89,000 $ 4.41 Stock-based compensation expense recognized for the years ended December 31, 2018 and 2017 was approximately $196,000 and $80,000, respectively. The Company recognizes stock-based compensation cost over the requisite service period. However, the exercisability of the respective non-vested options, which are at predetermined dates, does not necessarily correspond to the periods in which straight-line amortization of compensation expenses is recorded. The following table summarizes information about stock options outstanding and exercisable at December 31, 2018: Options Outstanding Options Exercisable Number outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number exercisable Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 17,244 2.0 $ 2.92 17,244 2.0 $ 2.92 18,812 2.4 $ 4.37 18,812 2.4 $ 4.37 2,090 3.4 $ 4.29 2,090 3.4 $ 4.29 41,809 3.5 $ 4.74 41,809 3.5 $ 4.74 49,120 4.3 $ 7.86 49,120 4.3 $ 7.86 89,000 8.7 $ 7.09 29,667 8.7 $ 7.09 218,075 5.6 $ 6.22 158,742 4.4 $ 5.90 Other Information At December 31, 2018 and 2017, there were 79,437 and 88,812 shares available for issuance under the 2012 Plan. At December 31, 2018, there were 183,575 options outstanding issued under the 2012 Plan and 34,500 options outstanding issued under the Previous Plan. Restricted Stock The Company, in May 2018, granted 1,250 restricted shares of its Common Stock to each non-employee member of its Board of Directors, totaling 6,250 restricted shares. The Company determined that the fair value of these shares was $8.43 per share, which was the closing price of the Company’s Common Stock on the date of the grant. These shares cannot be traded earlier than the first anniversary of the grant date. The Company will ratably amortize the total non-cash compensation expense of approximately $53,000, which is included in its selling, general and administrative expenses through May 2019. The Company, in May 2017, granted 1,000 restricted shares of its Common Stock to each non-employee member of its Board of Directors, totaling 5,000 restricted shares. The Company determined that the fair value of these shares was $6.17 per share, which was the closing price of the Company’s Common Stock on the date of the grant. These shares could not have been traded earlier than the first anniversary of the grant date. As such, the Company ratably amortized the total non-cash compensation expense of approximately $30,000 in its selling, general and administrative expenses, through May 2018. Treasury Stock On August 9, 2017, the Company’s Board of Directors authorized the Company to repurchase up to 100,000 shares of its Common Stock over a period of up to twelve months (the “2017 Repurchase Program”). On August 24, 2017, it announced that, pursuant to the 2017 Repurchase Program, it had adopted a written trading plan in accordance with the guidelines specified under Rule 10b5-1 under the Securities Exchange Act of 1934. A plan under Rule 10b5-1 allows the Company to repurchase shares at times when it might otherwise be prevented from doing so by securities laws or because of self-imposed trading blackout periods. Repurchases made under the plan are subject to the SEC’s regulations, as well as certain price, market, volume, and timing constraints specified in the plan. Under the 2017 Repurchase Program, the Company repurchased 94,600 shares of its Common Stock at an aggregate cost of approximately $753,000. On September 12, 2018, subsequent to the expiration of the 2017 Repurchase Program, the Company’s Board of Directors authorized the Company to repurchase up to 100,000 additional shares of its Common Stock (the “2018 Repurchase Program”) from time to time over the next twelve months through a 10b5-1 trading plan, and potentially through open market purchases, privately-negotiated transactions, or otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934. On September 14, 2018, the Company announced that, pursuant to the 2018 Repurchase Program, it had adopted a written trading plan in accordance with the guidelines specified under Rule 10b5-1 under the Securities Exchange Act of 1934. Repurchases made under the plan, that commenced on September 17, 2018, are subject to the SEC’s regulations, as well as certain price, market, volume, and timing constraints specified in the plan. Since the inception of the 2018 Repurchase Program through December 31, 2018, the Company repurchased 33,398 shares of its Common Stock at an aggregate cost of approximately $272,000. In June 2018 and November 2018, the Company purchased 18,140 shares and 85,791 shares of its Common Stock in two separate, privately negotiated transactions. These transactions were outside of the 2018 Repurchase Program and the 2017 Repurchase Program, pursuant to additional authorization of the Company’s Board of Directors at a total cost of $150,000 and $698,000, respectively. The June 2018 purchase price per share was equal to five percent below the average of the closing price of its Common Stock for the three days prior to the transaction, with the November 2018 purchase price based on the average closing price over the three days prior to the date of transaction. |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Dividends Payable and Options Adjustments [Text Block] | NOTE 9—DIVIDENDS In March 2016, our Board of Directors approved the initiation of a dividend policy under which the Company intends to declare quarterly cash dividends to its stockholders in the amount of $ 0.05 0.05 0.05 723,000 722,000 Our Board of Directors expects to maintain this dividend policy; however, the future declaration of dividends under this policy is dependent upon several factors, which include such things as our overall financial condition, results of operations, capital requirements and other factors our board may deem relevant. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 10—INCOME TAXES Income tax expense (benefit) from continuing operations in the consolidated statements of operations and comprehensive income (loss) consists of: Years Ended December 31, 2018 2017 Current: Federal $ (39,000 ) $ (373,000 ) State and local 24,000 36,000 Foreign 19,000 62,000 Total current 4,000 (275,000 ) Deferred: Federal 268,000 980,000 State and local (15,000 ) (63,000 ) Foreign (4,000 ) (7,000 ) Total deferred 249,000 910,000 Totals $ 253,000 $ 635,000 At December 31, 2018, the Company had Federal net operating loss carryforwards of approximately $1,617,000 which do not expire. The Company has state net operating loss carryforwards of approximately $4,084,000, which expire through 2038. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code. Changes included, but are not limited to, a corporate tax rate decrease from 35 21 As a result of the Act, the Company remeasured its U.S. Federal deferred tax assets and liabilities at the rate they are expected to reverse in the future. The Company recorded a cumulative charge of $588,000 ($ 0 In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance allows companies to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which they are subject to the rules (the period cost method), or (ii) account for GILTI in the Company’s measurement of deferred taxes (the deferred method). After completing the analysis of the GILTI provisions, the Company elected to account for GILTI using the period cost method. Deferred tax assets (liabilities) consist of: December 31, 2018 2017 Deferred tax assets: Bad debt reserves $ 17,000 $ 15,000 Inventory reserves 615,000 570,000 Warranty and other reserves 78,000 121,000 Stock-based compensation 184,000 240,000 Goodwill 940,000 1,066,000 Acquisition costs 170,000 58,000 Net operating losses - federal 340,000 — Net operating losses - state 91,000 66,000 Other 18,000 8,000 2,453,000 2,144,000 Deferred tax (liabilities): Prepaid expenses (373,000 ) (152,000 ) Depreciation (732,000 ) (481,000 ) Intangibles (720,000 ) (639,000 ) Net deferred tax assets $ 628,000 $ 872,000 The components of income (loss) before income taxes consisted of the following: Years ended December 31, 2018 2017 United States operations $ 1,004,000 $ (476,000 ) International operations 105,000 227,000 Income before tax $ 1,109,000 $ (249,000 ) A reconciliation of the Federal statutory rate to the total effective tax rate applicable to income (loss) is as follows: Years ended December 31, 2018 2017 Federal income tax computed at statutory rates 21.0 % (34.0 )% (Decrease) increase in taxes resulting from: State and local taxes, net of Federal tax benefit 0.6 (7.2 ) Permanent differences - net 5.2 11.6 Foreign rate differential (0.7 ) (9.2 ) Tax Cuts and Jobs Act of 2017 (3.4 ) 257.6 Share based compensation — 46.4 Other 0.1 (10.2 ) Income tax expense 22.8 % 255.0 % The Company follows the authoritative guidance issued by the FASB that pertains to the accounting for uncertain tax matters. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: Balance January 1, 2017 $ 311,000 Lapse of statute of limitations (311,000 ) Balance at January 1, 2018 — Lapse of statute of limitations — Balance December 31, 2018 $ — In connection with one of the acquisitions that occurred in 2014, the Company, in accordance with the ASC 740-10, had recorded an uncertain tax position. The parties to such transaction entered into a tax exposure-related escrow agreement, which together with the indemnity obligations of the seller, the Company believed adequately covered the entire potential exposure related to the uncertain tax position. As a result, such liability was offset by an indemnification asset recorded in Prepaid expenses and other current assets in the consolidated balance sheet. During 2017, the statute of limitations lapsed and the Company no longer has a liability for an uncertain tax position. The Company files a consolidated Federal tax return. The Company and certain of its subsidiaries file tax returns in various U.S. state jurisdictions. Its foreign subsidiary, UAT, files in the United Kingdom. With few exceptions, the years that remain subject to examination are the years ended December 31, 2015 through December 31, 2018. During the current year, the Internal Revenue Service completed the examination of the Company’s tax return for the year ended December 31, 2015 which resulted in the tax return being accepted as filed. Interest and penalties, if any, related to income tax liabilities are included in income tax expense. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 11—COMMITMENTS AND CONTINGENCIES (a) The Company maintains a contributory defined contribution plan that covers all eligible employees. All contributions to this plan are discretionary. Amounts recognized as expense for contributions to this plan were $380,000 and $353,000 for the years ended December 31, 2018 and 2017, respectively. (b) At December 31, 2018 and 2017, the Company had open purchase order commitments totaling approximately $6,700,000 and $7,138,000, respectively. (c) From time to time, the Company may be a defendant or co-defendant in actions brought about in the ordinary course of conducting our business. (d) The Company leases certain facilities and equipment through 2023. Generally, the facility leases carry renewal provisions and require the Company to pay maintenance costs. Rental payments may be adjusted for increases in taxes and insurance above specified amounts. Operating lease expense for 2018 and 2017 was $389,000 and $388,000, respectively. Future minimum payments under non-cancelable operating leases with initial or remaining terms of more than one year as of December 31, 2018 were as follows: 2019 $ 333,000 2020 131,000 2021 42,000 2022 13,000 2023 4,000 $ 523,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 12—SUBSEQUENT EVENTS On February 8, 2019, the Company entered into Amendment No. 5 to the Second Amended and Restated Loan and Security Agreement with Capital One (the “2019 Amendment”). The 2019 Amendment, among other things, extended the termination date of the Credit Agreement to February 8, 2024, set the Capex line to $2,000,000, increased the Eligible Inventory (as defined in the Credit Agreement) to $10,000,000 from $8,000,000, and reduced certain fees and charges. On February 14, 2019, the Company entered into an agreement to repurchase 389,909 shares of its common stock from certain funds and accounts advised or sub-advised by Fidelity Management & Research Company or one of its affiliates in a privately negotiated transaction at approximately $7.62 per share for a total purchase price of $2,971,000. On February 15, 2019, the Company completed this transaction. Further, on February 14, 2019, the Company enter into Amendment No. 6 to the Second Amended and Restated Loan and Security Agreement with Capital One which permitted the Company to complete the above transaction. |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements contained herein include the accounts of P&F Industries, Inc. and its subsidiaries (“P&F” or the “Company”). All significant intercompany balances and transactions have been eliminated. The Company P&F is a Delaware corporation incorporated on April 19, 1963. The Company conducts its business through a wholly-owned subsidiary, Continental Tool Group, Inc. (“Continental”), which in turn operates through its wholly-owned subsidiaries, Florida Pneumatic Manufacturing Corporation (“Florida Pneumatic”) and Hy-Tech Machine, Inc. (“Hy-Tech”). Exhaust Technologies Inc. (“ETI”) and Universal Air Tool Company Limited (“UAT”) are wholly-owned subsidiaries of Florida Pneumatic. Effective April 5, 2017, the Company purchased substantially all of the operating assets, less certain payables of Jiffy Air Tool, Inc., through a wholly-owned subsidiary of Florida Pneumatic. See Note 2 to our consolidated financial statements for further discussion. Lastly, the business of Air Tool Service Company (“ATSCO”) operates through a wholly-owned subsidiary of Hy-Tech. Florida Pneumatic imports and sells pneumatic hand tools, most of which are of its own design, primarily to the retail, industrial, automotive and aerospace markets. It also markets, through its Berkley Tool division (“Berkley”), a product line which includes pipe and bolt dies, pipe taps, wrenches, vises and stands, pipe and tubing cutting equipment, hydrostatic test pumps, and replacement electrical components for a widely-used brand of pipe cutting and threading machines. Hy-Tech designs, manufactures and distributes industrial pneumatic tools, industrial gears, hydrostatic test plugs and a wide variety of parts under the brands ATP, ATSCO, OZAT, Numatx, Thaxton and Quality Gear. Industries served include power generation, petrochemical, construction, railroad, mining, ship building and fabricated metals. Hy-Tech also manufactures components, assemblies, finished product and systems for various Original Equipment Manufacturers (“OEM”) under their own brand names. |
Basis of Accounting, Policy [Policy Text Block] | Basis of Financial Statement Presentation The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States (“US GAAP”). |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company’s significant accounting policy relating to revenue recognition reflects the impact of the adoption of ASC 606, defined below, effective January 1, 2018. The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"). The Company sells its goods on terms which transfer title and risk of loss at a specified location, which may be our warehouse, destination designated by our customer, port of loading or port of discharge, depending on the final destination of the goods. Other than standard product warranty provisions, our sales arrangements provide for no other post-shipment obligations. The Company offers rebates and other sales incentives, promotional allowances or discounts for certain customers, typically related to customer purchase volume, and are classified as a reduction of revenue and recorded at the time of sale, using the most likely amount approach. The Company periodically evaluates whether an allowance for sales returns is necessary. Historically, we have experienced minimal sales returns. If the Company believes there are material potential sales returns, it would provide the necessary provision against sales. The Company's performance obligations underlying its core revenue sources remain substantially unchanged. Its revenue is generated through the sale of finished products, and is generally recognized at the point in time when merchandise is transferred to the customer with a fixed payment due generally within 30 to 90 days, and in an amount that considers the impacts of estimated allowances. Further, the Company has made a policy election to account for shipping and handling activities that occur after the customer has obtained control of the products as fulfillment costs rather than as an additional promised service. This election is consistent with the Company’s prior policy, and therefore the adoption of ASC 606 relating to shipping and handling activities did not have any impact on its financial results. Additionally, as the result of the adoption of ASC 606, the Company accounts for certain expenses that in prior periods were accounted for as a selling expense, which are now treated as an adjustment to gross revenue. Accordingly, during the full year 2018, the Company reduced its net revenue, gross margin and selling expenses by approximately $1,007,000. Additionally, at December 31, 2018, the Company included in its allowance for doubtful accounts approximately $105,000 that would have been accounted for in its current liabilities prior to the adoption of ASC 606. There are no remaining performance obligations as of December 31, 2018. The Company analyzes its revenue as follows: Revenue generated at Florida Pneumatic. Year Ended December 31, 2018 2017 Increase (decrease) Revenue Percent of revenue Revenue Percent of revenue $ % Retail customers $ 18,234,000 35.9 % $ 19,894,000 42.8 % $ (1,660,000 ) (8.3 )% Automotive 14,430,000 28.5 13,901,000 29.9 529,000 3.8 Industrial/catalog 6,784,000 13.4 5,303,000 11.4 1,481,000 27.9 Aerospace 10,611,000 20.9 6,506,000 14.0 4,105,000 63.1 Other 661,000 1.3 867,000 1.9 (206,000 ) (23.8 ) Total $ 50,720,000 100.0 % $ 46,471,000 100.0 % $ 4,249,000 9.1 % Revenue generated at Hy-Tech. Year Ended December 31, 2018 2017 Increase (decrease) Revenue Percent of revenue Revenue Percent of revenue $ % ATP $ 12,958,000 90.8 % $ 11,116,000 88.9 % $ 1,842,000 16.6 % Other 1,317,000 9.2 1,387,000 11.1 (70,000 ) (5.0 ) Total $ 14,275,000 100.0 % $ 12,503,000 100.0 % $ 1,772,000 14.2 % |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Costs Expenses for shipping and handling costs are included in selling, general and administrative expenses, and totaled approximately $ 2,370,000 2,017,000 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents consist of cash held in bank demand deposits. The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. There were no cash equivalents at December 31, 2018 and 2017. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash, accounts receivable, accounts payable and short-term debt approximate fair value as of December 31, 2018 and 2017 because of the relatively short-term maturity of these financial instruments. The carrying amounts reported for long-term debt approximate fair value as of December 31, 2018 and 2017 because, in general, the interest rates underlying the instruments fluctuate with market rates. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are customer obligations due under normal trade terms. The Company sells its products to retailers, distributors and original equipment manufacturers involved in a variety of industries. The Company performs continuing credit evaluations of its customers’ financial condition, and although the Company generally does not require collateral, letters of credit may be required from customers in certain circumstances. Management reviews accounts receivable to determine if any receivables will potentially be uncollectible. Factors considered in the determination include, among other factors, number of days an invoice is past due, customer historical trends, available credit ratings information, other financial data and the overall economic environment. Collection agencies may also be utilized if management so determines. The Company records an allowance for doubtful accounts based on specifically identified amounts that are believed to be uncollectible. The Company also records as an additional allowance a certain percentage of aged accounts receivable, based on historical experience and the Company’s assessment of the general financial conditions affecting its customer base. If actual collection experience changes, revisions to the allowance may be required. The Company has a limited number of customers with individually large amounts due at any given balance sheet date. Any unanticipated change in the creditworthiness of any of these customers could have a material effect on the Company’s results of operations in the period in which such changes or events occur. After all reasonable attempts to collect an account receivable have failed, the amount of the receivable is written off against the allowance. Based on the information available, the Company believes that its allowance for doubtful accounts as of December 31, 2018 is adequate. However, actual write-offs might exceed the recorded allowance. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk The Company places the majority of its cash with its primary bank, Capital One Bank, National Association (“Capital One”), which is insured by the Federal Deposit Insurance Corporation (“FDIC”). Significant concentrations of credit risk may arise from the Company’s cash maintained at Capital One, as from time to time cash balances may exceed the FDIC limits. Financial instruments that potentially subject the Company to concentration of credit risk consist principally of accounts receivable. The Company had one customer that accounted for 32.6% and 31.0% of our consolidated accounts receivable at December 31, 2018 and December 31, 2017, respectively. This customer accounted for 26.5% and 27.1% of the Company’s consolidated revenue in 2018 and 2017, respectively. There was no other customer that accounted for more than 10% of our consolidated revenue in 2018 or 2017. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are valued at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method or the weighted average method. The inventory balance, which includes raw materials, labor, and manufacturing overhead costs, is recorded net of an allowance for obsolete or unmarketable inventory. Such allowance is based upon both historical experience and management’s understanding of market conditions and forecasts of future product demand. If the actual amount of obsolete or unmarketable inventory significantly exceeds the estimated allowance, the Company’s cost of sales, gross profit and net earnings would be significantly affected. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment and Depreciation and Amortization Property and equipment are stated at cost less accumulated depreciation and amortization. Generally, the Company capitalizes items in excess of $1,000. Minor replacements and maintenance and repair items are charged to expense as incurred. Upon disposal or retirement of assets, the cost and related accumulated depreciation are removed from the Company’s consolidated balance sheets. Depreciation of buildings and machinery and equipment is computed by using the straight-line method over the estimated useful lives of the assets. Buildings are depreciated over periods ranging from 27.5 to 31 years, and machinery and equipment is depreciated over periods ranging from 3 to 10 years. Leasehold improvements are amortized over the life of the lease or the useful life of the related asset, whichever is shorter. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets In accordance with authoritative guidance pertaining to the accounting for the impairment or disposal of long-lived assets, property and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company’s assessment of recoverability of property and equipment is performed on an entity level. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of such asset to its estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of such asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. |
Business Combinations Policy [Policy Text Block] | Acquisitions The Company accounts for acquired businesses using the purchase method of accounting, which requires that the assets acquired, liabilities assumed, and contingent consideration, if any, are recorded as of the date of the acquisition at their respective fair values. It further requires that acquisition-related costs be recognized separately from the acquisition and expensed as incurred and that restructuring costs be expensed in periods subsequent to the acquisition date. Generally, the Company engages third party valuation appraisal firms to assist it in determining the fair values and useful lives of the assets acquired and liabilities assumed. The Company records a preliminary purchase price allocation for its acquisitions and finalizes purchase price allocations as additional information relative to the fair values of the assets acquired become known. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill, Intangible and Long-Lived Assets Goodwill is carried at cost less any impairment charges. Goodwill and intangible assets with indefinite lives are not amortized but are subject to an annual test for impairment at the entity unit level (operating segment or one level below an operating segment) and between annual tests in certain circumstances. In accordance with authoritative guidance issued by the Financial Accounting Standards Board, (“FASB”), the Company tests goodwill for impairment on an annual basis. This test occurs in the fourth quarter or more frequently if the Company believes indicators of impairment exist. An entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount. If the carrying amount of the reporting unit is less than its fair value, no impairment exists and no further action is required. If the carrying amount of a reporting unit exceeds its fair value, the entity will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. Intangible assets other than goodwill and intangible assets with indefinite lives, are carried at cost less accumulated amortization. Intangible assets are generally amortized on a straight-line basis over their respective useful lives, generally 3 to 20 years. Long-lived assets and certain identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the amount by which the carrying value exceeds the fair value of the asset. |
Standard Product Warranty, Policy [Policy Text Block] | Warranty Liability The Company offers certain warranties against product defects for periods ranging from one to three years. Certain products carry limited lifetime warranties. The Company’s typical warranties require it to repair or replace the defective products during the warranty period at no cost to the customer. At the time the product revenue is recognized, the Company records a liability for estimated costs. The costs are estimated based on revenue and historical experience. The Company periodically assesses the adequacy of its warranty liability and adjusts the amounts as necessary. While the Company believes that its estimated liability for product warranties is adequate and that the judgment applied is appropriate, the estimated liability for the product warranties could differ materially in the future. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes using the asset and liability approach. This approach requires the recognition of current tax assets or liabilities for the amounts refundable or payable on tax returns for the current year, as well as the recognition of deferred tax assets or liabilities for the expected future tax consequences of temporary differences that can arise between (a) the amount of taxable income and pretax financial income for a year, such as from net operating loss carryforwards and other tax credits, and (b) the tax bases of assets or liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates. The impact on deferred tax assets and liabilities of changes in tax rates and laws, if any, is reflected in the consolidated financial statements in the period enacted. Further, the Company evaluates the likelihood of realizing benefit from our deferred tax assets by estimating future sources of taxable income and the impact of tax planning strategies. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. The Company files a consolidated Federal tax return. P&F and certain of its subsidiaries file combined tax returns in New York, California and Texas. All subsidiaries, other than UAT, file other state and local tax returns on a stand-alone basis. UAT files an income tax return to the taxing authorities in the United Kingdom. Tax benefits are recognized for an uncertain tax position when, in the Company’s judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more likely-than-not recognition threshold, the tax benefit is measured as the largest amount that is judged to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. The liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances and when new information becomes available. Such adjustments are recognized entirely in the period in which they are identified. The effective tax rate includes the net impact of changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by the Company. Interest and penalties recognized on the liability for unrecognized tax benefits are recorded as income tax expense. The authoritative guidance for income taxes requires a reduction of the carrying amounts of deferred tax assets by recording a valuation allowance if, based on the available evidence, it is more likely than not (defined as a likelihood of more than 50%) such assets will not be realized. The valuation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in the Company's financial statements or tax returns and future profitability. The Company's accounting for deferred tax consequences represents its best estimate of those future events. Changes in the Company's estimates, due to unanticipated events or otherwise, could have a material effect on its financial condition and results of operations. The Company continually evaluates its deferred tax assets to determine if a valuation allowance is required. Current accounting guidance requires entities to account for the effects of new income tax legislation in the same reporting period that the tax legislation is enacted. Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, permits the Company to calculate and recognize provisional tax estimates for the fourth quarter of fiscal 2017 for the accounting related to the enactment of the U.S. Tax Cuts and Jobs Act of 2017 (the "Act"). As a result, we have recognized the provisional tax impacts related to deemed repatriated earnings and the revaluation of deferred tax assets and liabilities in our consolidated financial statements for the year ended December 31, 2017. During 2018, we finalized our computation of the impact of the Act. Additional information is contained in Note 10, Income Taxes, to the consolidated financial statements. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance allows companies to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which they are subject to the rules (the period cost method), or (ii) account for GILTI in the Company’s measurement of deferred taxes (the deferred method). After completing the analysis of the GILTI provisions, the Company elected to account for GILTI using the period cost method. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, possible disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis P&F evaluates its estimates, including those related to collectability of accounts receivable, valuation of inventories, recoverability of goodwill and intangible assets, consideration payable to customer and income taxes. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not apparent from other sources. Actual results may differ from those estimates under different assumptions or conditions. |
Advertising Costs, Policy [Policy Text Block] | Advertising The Company expenses its costs of advertising in the period in which they are incurred. Advertising costs for the years ended December 31, 2018 and 2017 were $1,375,000 and $1,276,000, respectively. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Common Share Basic earnings per common share exclude any dilution. It is based upon the weighted average number of shares of Common Stock outstanding during the year. Diluted earnings per common share reflect the effect of shares of Common Stock issuable upon the exercise of stock options, unless the effect on earnings is anti-dilutive. Diluted earnings per common share is computed using the treasury stock method. Under this method, the aggregate number of shares of Common Stock outstanding reflects the assumed use of proceeds from the hypothetical exercise of any outstanding options to purchase shares of the Company’s Class A Common Stock. The average market value for the period is used as the assumed purchase price. The following table sets forth the computation of basic and diluted earnings (loss) per common share: Years Ended December 31, 2018 2017 Numerator for basic and diluted earnings (loss) per common share: Net income (loss) $ 856,000 $ (884,000 ) Denominator: Denominator for basic income (loss) per share—weighted average common shares outstanding 3,628,000 3,606,000 Denominator for diluted income (loss) per share—adjusted weighted average common shares and assumed conversions 3,728,000 3,606,000 The average anti-dilutive options outstanding for the year ended December 31, 2018 was 12,000. For the year ended December 31, 2017, the Company experienced a net loss; as a result, there is no calculation of diluted earnings per share. |
Compensation Related Costs, Policy [Policy Text Block] | Share-Based Compensation In accordance with US GAAP, the Company measures and recognizes compensation expense for all share-based payment awards based on estimated fair values. Share-based compensation expense is included in selling, general and administrative expense on the accompanying consolidated statements of operations and comprehensive income (loss). With respect to stock options, US GAAP requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statements of operations and comprehensive income (loss). The Company records compensation expense ratably over the vesting periods. The Company estimates forfeitures at the time of grant and revises this estimate, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company uses the Black-Scholes option-pricing model as its method of valuation for share-based awards granted. As such, the Company’s determination of fair value of share-based payment awards is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, relevant interest rates, and the expected term of the awards. With respect to any issuance of its Common Stock, the Company determines fair value per share as the closing price of its Common Stock on the date of the grant of said shares. |
Foreign Currency Translation [Policy Text Block] | Foreign Currency Translation The assets and liabilities of international operations are translated at the exchange rates in effect at the balance sheet date. Revenue and expense accounts are translated at the monthly average exchange rates. Adjustments arising from the translation of the foreign currency financial statements of the Company's international operations are reported as a component of "Accumulated other comprehensive loss" in the Company's consolidated balance sheets. For foreign currency remeasurement from each local currency into the appropriate functional currency, monetary assets and liabilities are remeasured to functional currencies using current exchange rates in effect at the balance sheet date. Gains or losses from these remeasurements were not significant and have been included in the Company’s consolidated statements of operations and comprehensive income (loss). Non-monetary assets and liabilities are recorded at historical exchange rates, and the related remeasurement gains or losses are reported as a component of "Accumulated other comprehensive loss" in the Company's consolidated balance sheets. |
Going Concern Assessment [Policy Text Block] | Going concern assessment In accordance with current accounting literature, the Company assesses going concern uncertainty in its financial statements to determine if it will have sufficient cash on hand and working capital, including available borrowings on loans, to operate for a period of at least one year from the date the financial statements are issued or available to be issued, which is referred to as the “look-forward period”, as defined in the current accounting guidance. As part of this assessment, based on conditions that are known and reasonably knowable to the Company, it will consider various scenarios, forecasts, projections, estimates and will make certain key assumptions, including the timing and nature of projected cash expenditures or programs, and its ability to delay or curtail expenditures or programs, if necessary, among other factors. Based on this assessment, as necessary or applicable, the Company will make certain assumptions around implementing curtailments or delays in the nature and timing of programs and expenditures to the extent the Company deems probable those implementations can be achieved and it will have the proper authority to execute them within the look-forward period. Our assessment determined the Company is a going concern. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements Recently Adopted In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which simplified the testing of goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measured a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. ASU 2017-04 is effective for public companies for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company concluded that ASU 2017-04 is preferable to the current guidance due to efficiency, since ASU 2017-04 eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. The Company adopted ASU 2017-04 in 2017, in conjunction with its annual impairment test of goodwill for all reporting units. The adoption of ASU 2017-04 did not have a material impact on the Company’s financial results. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments . The amendments in ASU 2016-15 are intended to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows, with the intent of reducing diversity in practice for the eight types of cash flows identified. ASU 2016-15 is effective for public companies' fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017. The adoption of ASU 2016-15 as of January 1, 2018 had no material effect on the Company’s financial position, results of operations or cash flows. The Company adopted ASC 606 on the first day of fiscal 2018. Its underlying principle is to use a five-step analysis of transactions to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The Company has elected to use the modified retrospective approach. As the Company did not have any sales contracts that were not completed as of January 1, 2018, there is no adjustment required to its retained earnings. The adoption of ASC 606 did not have an effect on the Company’s cash flows. The adoption of ASC 606 did however, require the Company to classify certain expenses previously classified as selling and general and administrative expenses prior to the adoption to a reduction of gross revenue and gross margin. The adoption of ASC 606 had no material effect on the Company’s income before taxes. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases . This ASU is a comprehensive new leases standard that amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. It will require companies to recognize lease assets and lease liabilities by lessees for those leases classified as operating leases under previous US GAAP. ASC Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases’ guidance. The ASU is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years; earlier adoption is permitted. The ASU offers two transition methods: (1) a modified retrospective approach, in which leases shall be measured and recognized at the beginning of the earliest comparative period presented with an adjustment to equity in the financial statements in which the ASU is first applied or (2) a prospective approach, in which a company is allowed to initially apply the new lease standard at the adoption date. The Company will use the prospective approach. Practical expedients are available for election. The Company has completed its assessment of all leases and the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. Th us far the Company believes the adoption of this standard will not have a material effect on its consolidated financial statements. In February 2018, the FASB issued No. ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). Under ASU 2018-02, an entity may elect to reclassify the income tax effects of the Tax Reform Act on items within accumulated other comprehensive income to retained earnings. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period. The Company is evaluating what impact, if any, adoption of ASU 2018-02 may have on its consolidated financial statements. The SEC has recently issued a final rule (“Rule”) that amends certain of their disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other SEC disclosure requirements, or changes in the information environment. A financial reporting implication of the Rule addresses interim disclosure changes in stockholders’ equity and non-controlling interests. Under the requirements in SEC Regulation S-X, Rules 8-03(a)(5) and 10-01(a)(7), as amended by the Rule, registrants must now analyze changes in stockholders’ equity, in the form of a reconciliation, for the current and comparative year-to-date interim periods, with subtotals for each interim period. The Rule is effective for all filings submitted on or after November 5, 2018. However, the SEC issued guidance that provides some relief to registrants that file Form 10-Q shortly after the Rule’s effective date. It clarifies that the SEC Staff would not object if a filer’s first presentation of changes in shareholders’ equity is included in its Form 10-Q for the quarter that begins after the final rule’s November 5, 2018 effective date given that date’s close proximity to the filing date for most filers’ quarterly reports. Other than the aforementioned, the Company does not believe that any other recently issued, but not yet effective accounting standard, if adopted, will have a material effect on our consolidated financial statements . |
SUMMARY OF ACCOUNTING POLICIE_2
SUMMARY OF ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Revenue generated at Florida Pneumatic. Year Ended December 31, 2018 2017 Increase (decrease) Revenue Percent of revenue Revenue Percent of revenue $ % Retail customers $ 18,234,000 35.9 % $ 19,894,000 42.8 % $ (1,660,000 ) (8.3 )% Automotive 14,430,000 28.5 13,901,000 29.9 529,000 3.8 Industrial/catalog 6,784,000 13.4 5,303,000 11.4 1,481,000 27.9 Aerospace 10,611,000 20.9 6,506,000 14.0 4,105,000 63.1 Other 661,000 1.3 867,000 1.9 (206,000 ) (23.8 ) Total $ 50,720,000 100.0 % $ 46,471,000 100.0 % $ 4,249,000 9.1 % Revenue generated at Hy-Tech. Year Ended December 31, 2018 2017 Increase (decrease) Revenue Percent of revenue Revenue Percent of revenue $ % ATP $ 12,958,000 90.8 % $ 11,116,000 88.9 % $ 1,842,000 16.6 % Other 1,317,000 9.2 1,387,000 11.1 (70,000 ) (5.0 ) Total $ 14,275,000 100.0 % $ 12,503,000 100.0 % $ 1,772,000 14.2 % |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings (loss) per common share: Years Ended December 31, 2018 2017 Numerator for basic and diluted earnings (loss) per common share: Net income (loss) $ 856,000 $ (884,000 ) Denominator: Denominator for basic income (loss) per share—weighted average common shares outstanding 3,628,000 3,606,000 Denominator for diluted income (loss) per share—adjusted weighted average common shares and assumed conversions 3,728,000 3,606,000 |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The initial total consideration ($5,950,000 plus $1,050,000) was paid by Jiffy to Jiffy Seller from funds available under the Revolver, as defined in Note 7, less certain amounts escrowed pursuant to, among others, the terms of the Agreements. Total Cash paid at closing $ 7,000,000 Less working capital adjustment (155,000 ) Fair value of contingent consideration 692,000 Total estimated purchase price $ 7,537,000 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table presents purchase price allocation: Accounts receivable $ 789,000 Inventories 1,571,000 Other current assets 45,000 Land 131,000 Building 919,000 Machinery and equipment 1,196,000 Identifiable intangible assets: Customer relationships 1,670,000 Trademarks and trade names 790,000 Non-compete agreements 17,000 Liabilities assumed (125,000 ) Goodwill 534,000 Total estimated purchase price $ 7,537,000 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | The intangible assets subject to amortization will be amortized over 15 years for tax purposes. For financial reporting purposes, useful lives have been assigned as follows: Customer relationships 15 years Trademarks and trade names Indefinite Non-compete agreements 4 years |
Business Acquisition, Pro Forma Information [Table Text Block] | For the Year Ended December 31, 2017 Revenue $ 60,451,000 Net loss from continuing operations $ (779,000 ) Loss per share – basic $ (0.22 ) Loss per share – diluted $ (0.22 ) |
ACCOUNTS RECEIVABLE AND ALLOW_2
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable - net consists of: December 31, 2018 December 31, 2017 Accounts receivable $ 9,847,000 $ 10,199,000 Allowance for doubtful accounts, sales discounts and chargebacks (273,000 ) (152,000 ) $ 9,574,000 $ 10,047,000 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of: December 31, 2018 December 31, 2017 Raw materials $ 1,963,000 $ 1,871,000 Work in process 1,924,000 1,556,000 Finished goods 16,609,000 16,230,000 $ 20,496,000 $ 19,657,000 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill are as follows: Balance, January 1, 2018 $ 4,447,000 Currency translation adjustment (11,000 ) Balance, December 31, 2018 $ 4,436,000 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Other intangible assets were as follows: December 31, 2018 December 31, 2017 Cost Accumulated amortization Net book value Cost Accumulated amortization Net book value Other intangible assets: Customer relationships (1) $ 6,821,000 $ 2,135,000 $ 4,686,000 $ 6,836,000 $ 1,570,000 $ 5,266,000 Trademarks and trade names (1) 2,308,000 — 2,308,000 2,329,000 — 2,329,000 Trademarks and trade names 200,000 32,000 168,000 200,000 19,000 181,000 Engineering drawings 330,000 202,000 128,000 330,000 175,000 155,000 Non-compete agreements (1) 233,000 223,000 10,000 239,000 210,000 29,000 Patents 1,405,000 905,000 500,000 1,405,000 832,000 573,000 Totals $ 11,297,000 $ 3,497,000 $ 7,800,000 $ 11,339,000 $ 2,806,000 $ 8,533,000 (1) A portion of these intangibles are maintained in a foreign currency, and are therefore subject to foreign exchange rate fluctuations. Changes in the carrying amount of other intangibles are as follows: Cost Accumulated amortization Net book value Balance, January 1, 2018 $ 11,339,000 $ 2,806,000 $ 8,533,000 Amortization — 702,000 (702,000 ) Currency translation adjustment (42,000 ) (11,000 ) (31,000 ) Balance, December 31, 2018 $ 11,297,000 $ 3,497,000 $ 7,800,000 The weighted average amortization period for intangible assets was as follows: December 31, 2018 December 31, 2017 Customer relationships 9.3 10.1 Trademarks and trade names 12.5 13.5 Engineering drawings 7.7 8.1 Non-compete agreements 2.3 1.8 Patents 7.9 8.8 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization expense of intangible assets subject to amortization was as follows: Year ended December 31, 2018 2017 $ 702,000 $ 800,000 Amortization expense for each of the next five years and thereafter is estimated to be as follows: 2019 $ 682,000 2020 643,000 2021 635,000 2022 634,000 2023 634,000 Thereafter 2,264,000 $ 5,492,000 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule Of Applicable Margin For Borrowings [Table Text Block] | LIBOR Base Rate % % Range of Applicable Margins added to Revolver borrowings during 2018 and 2017 1.50 points to 0.50 points to |
Schedule of Debt [Table Text Block] | The Company’s Term loan borrowings are: December 31, 2018 December 31, 2017 Term Loan $ 100,000 $ 100,000 Capex borrowing 354,000 — Debt issue costs (1,000 ) (6,000 ) 453,000 94,000 Less current maturities 453,000 — $ — $ 94,000 |
STOCK OPTIONS - STOCK COMPENS_2
STOCK OPTIONS - STOCK COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table contains information on the status of the Company’s stock options: Number of Shares Weighted Average Exercise Price per share Aggregate Intrinsic Value Outstanding, January 1, 2017 423,817 $ 5.68 Granted 89,000 7.09 Exercised (16,722 ) 3.65 Forfeited (6,793 ) 7.86 Expired (71,069 ) 10.72 Outstanding, December 31, 2017 418,233 5.17 Granted - Exercised (200,158 ) 4.02 Forfeited - Expired - Outstanding, December 31, 2018 218,075 $ 6.22 $ 335,310 Vested, December 31, 2018 158,742 $ 5.90 $ 297,337 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block] | The following is a summary of changes in non-vested shares, all of which are expected to vest: December 31, 2018 2017 Option Shares Weighted Average Grant-Date Fair Value Option Shares Weighted Average Grant-Date Fair Value Non-vested shares, beginning of year 89,000 4.41 — $ — Granted — — 89,000 4.41 Vested 29,667 4.41 — — Forfeited — — — — Non-vested shares, end of year 59,333 4.41 89,000 $ 4.41 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table summarizes information about stock options outstanding and exercisable at December 31, 2018: Options Outstanding Options Exercisable Number outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number exercisable Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 17,244 2.0 $ 2.92 17,244 2.0 $ 2.92 18,812 2.4 $ 4.37 18,812 2.4 $ 4.37 2,090 3.4 $ 4.29 2,090 3.4 $ 4.29 41,809 3.5 $ 4.74 41,809 3.5 $ 4.74 49,120 4.3 $ 7.86 49,120 4.3 $ 7.86 89,000 8.7 $ 7.09 29,667 8.7 $ 7.09 218,075 5.6 $ 6.22 158,742 4.4 $ 5.90 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense (benefit) from continuing operations in the consolidated statements of operations and comprehensive income (loss) consists of: Years Ended December 31, 2018 2017 Current: Federal $ (39,000 ) $ (373,000 ) State and local 24,000 36,000 Foreign 19,000 62,000 Total current 4,000 (275,000 ) Deferred: Federal 268,000 980,000 State and local (15,000 ) (63,000 ) Foreign (4,000 ) (7,000 ) Total deferred 249,000 910,000 Totals $ 253,000 $ 635,000 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets (liabilities) consist of: December 31, 2018 2017 Deferred tax assets: Bad debt reserves $ 17,000 $ 15,000 Inventory reserves 615,000 570,000 Warranty and other reserves 78,000 121,000 Stock-based compensation 184,000 240,000 Goodwill 940,000 1,066,000 Acquisition costs 170,000 58,000 Net operating losses - federal 340,000 — Net operating losses - state 91,000 66,000 Other 18,000 8,000 2,453,000 2,144,000 Deferred tax (liabilities): Prepaid expenses (373,000 ) (152,000 ) Depreciation (732,000 ) (481,000 ) Intangibles (720,000 ) (639,000 ) Net deferred tax assets $ 628,000 $ 872,000 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The components of income (loss) before income taxes consisted of the following: Years ended December 31, 2018 2017 United States operations $ 1,004,000 $ (476,000 ) International operations 105,000 227,000 Income before tax $ 1,109,000 $ (249,000 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the Federal statutory rate to the total effective tax rate applicable to income (loss) is as follows: Years ended December 31, 2018 2017 Federal income tax computed at statutory rates 21.0 % (34.0 )% (Decrease) increase in taxes resulting from: State and local taxes, net of Federal tax benefit 0.6 (7.2 ) Permanent differences - net 5.2 11.6 Foreign rate differential (0.7 ) (9.2 ) Tax Cuts and Jobs Act of 2017 (3.4 ) 257.6 Share based compensation — 46.4 Other 0.1 (10.2 ) Income tax expense 22.8 % 255.0 % |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | The Company follows the authoritative guidance issued by the FASB that pertains to the accounting for uncertain tax matters. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: Balance January 1, 2017 $ 311,000 Lapse of statute of limitations (311,000 ) Balance at January 1, 2018 — Lapse of statute of limitations — Balance December 31, 2018 $ — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum payments under non-cancelable operating leases with initial or remaining terms of more than one year as of December 31, 2018 were as follows: 2019 $ 333,000 2020 131,000 2021 42,000 2022 13,000 2023 4,000 $ 523,000 |
SUMMARY OF ACCOUNTING POLICIE_3
SUMMARY OF ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Revenues | $ 64,995,000 | $ 58,974,000 |
Florida Pneumatic [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Revenues | $ 50,720,000 | $ 46,471,000 |
Percentage Of Revenue | 100.00% | 100.00% |
Increase or Decrease in Revenue | $ 4,249,000 | |
Percentage of Change in Revenue | 9.10% | |
Florida Pneumatic [Member] | Retail [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Revenues | $ 18,234,000 | $ 19,894,000 |
Percentage Of Revenue | 35.90% | 42.80% |
Increase or Decrease in Revenue | $ (1,660,000) | |
Percentage of Change in Revenue | (8.30%) | |
Florida Pneumatic [Member] | Automotive [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Revenues | $ 14,430,000 | $ 13,901,000 |
Percentage Of Revenue | 28.50% | 29.90% |
Increase or Decrease in Revenue | $ 529,000 | |
Percentage of Change in Revenue | 3.80% | |
Florida Pneumatic [Member] | Industrial/catalog [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Revenues | $ 6,784,000 | $ 5,303,000 |
Percentage Of Revenue | 13.40% | 11.40% |
Increase or Decrease in Revenue | $ 1,481,000 | |
Percentage of Change in Revenue | 27.90% | |
Florida Pneumatic [Member] | Aerospace [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Revenues | $ 10,611,000 | $ 6,506,000 |
Percentage Of Revenue | 20.90% | 14.00% |
Increase or Decrease in Revenue | $ 4,105,000 | |
Percentage of Change in Revenue | 63.10% | |
Florida Pneumatic [Member] | Other brands [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Revenues | $ 661,000 | $ 867,000 |
Percentage Of Revenue | 1.30% | 1.90% |
Increase or Decrease in Revenue | $ (206,000) | |
Percentage of Change in Revenue | (23.80%) | |
Hy-Tech [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Revenues | $ 14,275,000 | $ 12,503,000 |
Percentage Of Revenue | 100.00% | 100.00% |
Increase or Decrease in Revenue | $ 1,772,000 | |
Percentage of Change in Revenue | 14.20% | |
Hy-Tech [Member] | Other brands [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Revenues | $ 1,317,000 | $ 1,387,000 |
Percentage Of Revenue | 9.20% | 11.10% |
Increase or Decrease in Revenue | $ (70,000) | |
Percentage of Change in Revenue | (5.00%) | |
Hy-Tech [Member] | ATP brands [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Revenues | $ 12,958,000 | $ 11,116,000 |
Percentage Of Revenue | 90.80% | 88.90% |
Increase or Decrease in Revenue | $ 1,842,000 | |
Percentage of Change in Revenue | 16.60% |
SUMMARY OF ACCOUNTING POLICIE_4
SUMMARY OF ACCOUNTING POLICIES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator for basic and diluted earnings (loss) per common share: | ||
Net income (loss) | $ 856,000 | $ (884,000) |
Denominator: | ||
Denominator for basic income (loss) per share—weighted average common shares outstanding | 3,628,000 | 3,606,000 |
Denominator for diluted income (loss) per share—adjusted weighted average common shares and assumed conversions | 3,728,000 | 3,606,000 |
SUMMARY OF ACCOUNTING POLICIE_5
SUMMARY OF ACCOUNTING POLICIES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Selling Expense | $ 1,007,000 | |
Prior Period Reclassification Adjustment | $ 105,000 | |
Property, Plant and Equipment, Cost Capitalization | 1,000 | |
Advertising Expense | $ 1,375,000 | $ 1,276,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 12,000 | |
Selling, General and Administrative Expense | $ 21,705,000 | 21,034,000 |
Shipping and Handling [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Selling, General and Administrative Expense | $ 2,370,000 | $ 2,017,000 |
Maximum [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | |
Minimum [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Machinery and Equipment [Member] | Minimum [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Building [Member] | Maximum [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 31 years | |
Building [Member] | Minimum [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 27 years 6 months | |
Accounts Receivable [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 32.60% | 31.00% |
Sales Revenue, Segment [Member] | Home Depot [Member] | ||
Schedule Of Summary Of Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 26.50% | 27.10% |
ACQUISITION (Details)
ACQUISITION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Cash paid at closing | $ 0 | $ 6,845,000 |
Jiffy Air Tool [Member] | ||
Business Acquisition [Line Items] | ||
Cash paid at closing | 7,000,000 | |
Less working capital adjustment | (155,000) | |
Fair value of contingent consideration | 692,000 | |
Total estimated purchase price | $ 7,537,000 |
ACQUISITION (Details 1)
ACQUISITION (Details 1) - Jiffy Air Tool [Member] | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |
Accounts receivable | $ 789,000 |
Inventories | 1,571,000 |
Other current assets | 45,000 |
Land | 131,000 |
Building | 919,000 |
Machinery and equipment | 1,196,000 |
Identifiable intangible assets: | |
Liabilities assumed | (125,000) |
Goodwill | 534,000 |
Total estimated purchase price | 7,537,000 |
Trademarks and Trade Names [Member] | |
Identifiable intangible assets: | |
Trademarks and trade names | 790,000 |
Customer Relationships [Member] | |
Identifiable intangible assets: | |
Customer relationships | 1,670,000 |
Non-compete Agreements [Member] | |
Identifiable intangible assets: | |
Non-compete agreements | $ 17,000 |
ACQUISITION (Details 2)
ACQUISITION (Details 2) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Jiffy Air Tool Inc [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years 3 months 18 days | 10 years 1 month 6 days |
Customer Relationships [Member] | Jiffy Air Tool Inc [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |
Non-compete agreements [Member] | Jiffy Air Tool Inc [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years |
ACQUISITION (Details 3)
ACQUISITION (Details 3) | 12 Months Ended |
Dec. 31, 2017USD ($)$ / shares | |
Revenue | $ | $ 60,451,000 |
Net loss from continuing operations | $ | $ (779,000) |
Earnings per share - Basic | $ / shares | $ (0.22) |
Earnings per share - Diluted | $ / shares | $ (0.22) |
ACQUISITION (Details Textual)
ACQUISITION (Details Textual) - USD ($) | Apr. 05, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 0 | $ 6,845,000 | |
Business Combination, Contingent Consideration, Liability, Current | 1,000,000 | 0 | |
Jiffy Air Tool Inc [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Contingent Consideration, Liability | $ 1,000,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | $ 5,950,000 | ||
Payments to Acquire Businesses, Gross | 5,950,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1,050,000 | ||
Working Capital Adjustment | 155,000 | ||
Business Combination, Contingent Consideration, Liability, Current | $ 1,000,000 | ||
Commitments, Fair Value Disclosure | $ 150,000 | $ 158,000 | |
Jiffy Air Tool Inc [Member] | Real Property [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | 1,050,000 | ||
Jiffy Air Tool Inc [Member] | Current Assets [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 5,950,000 |
ACCOUNTS RECEIVABLE AND ALLOW_3
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 9,847,000 | $ 10,199,000 |
Allowance for doubtful accounts, sales discounts and chargebacks | (273,000) | (152,000) |
Accounts Receivable, Net, Current, Total | $ 9,574,000 | $ 10,047,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Raw material | $ 1,963,000 | $ 1,871,000 |
Work in process | 1,924,000 | 1,556,000 |
Finished goods | 16,609,000 | 16,230,000 |
Inventory net | $ 20,496,000 | $ 19,657,000 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Balance, beginning | $ 4,447,000 |
Currency translation adjustment | (11,000) |
Balance, ending | $ 4,436,000 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Other intangible assets: | |||
Cost | $ 11,297,000 | $ 11,339,000 | |
Accumulated amortization | 3,497,000 | 2,806,000 | |
Net book value | 7,800,000 | 8,533,000 | |
Customer relationships [Member] | |||
Other intangible assets: | |||
Cost | [1] | 6,821,000 | 6,836,000 |
Accumulated amortization | [1] | 2,135,000 | 1,570,000 |
Net book value | [1] | 4,686,000 | 5,266,000 |
Trademarks and trade names one [Member] | |||
Other intangible assets: | |||
Cost | [1] | 2,308,000 | 2,329,000 |
Accumulated amortization | [1] | 0 | 0 |
Net book value | [1] | 2,308,000 | 2,329,000 |
Trademarks And Trade Names Two [Member] | |||
Other intangible assets: | |||
Cost | 200,000 | 200,000 | |
Accumulated amortization | 32,000 | 19,000 | |
Net book value | 168,000 | 181,000 | |
Engineering drawings [Member] | |||
Other intangible assets: | |||
Cost | 330,000 | 330,000 | |
Accumulated amortization | 202,000 | 175,000 | |
Net book value | 128,000 | 155,000 | |
Non-compete agreements [Member] | |||
Other intangible assets: | |||
Cost | [1] | 233,000 | 239,000 |
Accumulated amortization | [1] | 223,000 | 210,000 |
Net book value | [1] | 10,000 | 29,000 |
Patents [Member] | |||
Other intangible assets: | |||
Cost | 1,405,000 | 1,405,000 | |
Accumulated amortization | 905,000 | 832,000 | |
Net book value | $ 500,000 | $ 573,000 | |
[1] | A portion of these intangibles are maintained in a foreign currency, and are therefore subject to foreign exchange rate fluctuations. |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Begining Balance, Cost | $ 11,339,000 | |
Amortization, Cost | 0 | |
Currency translation adjustment, Cost | (42,000) | |
Ending Balance, Cost | 11,297,000 | $ 11,339,000 |
Begining Balance, Accumulated Amortization | 2,806,000 | |
Amortization, Accumulated Amortization | 702,000 | 800,000 |
Currency translation adjustment, Accumulated Amortization | (11,000) | |
Ending Balance, Accumulated Amortization | 3,497,000 | 2,806,000 |
Begining Balance, Net Book Value | 8,533,000 | |
Amortization, Net Book Value | (702,000) | |
Currency translation adjustment, Net Book Value | (31,000) | |
Ending Balance, Net Book Value | $ 7,800,000 | $ 8,533,000 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 3) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Customer relationships [Member] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years 3 months 18 days | 10 years 1 month 6 days |
Trademarks and trade names one [Member] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years 6 months | 13 years 6 months |
Engineering drawings [Member] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 8 months 12 days | 8 years 1 month 6 days |
Non-compete agreements [Member] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years 3 months 18 days | 1 year 9 months 18 days |
Patents [Member] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 10 months 24 days | 8 years 9 months 18 days |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 4) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $ 702,000 | $ 800,000 |
GOODWILL AND OTHER INTANGIBLE_8
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 5) | Dec. 31, 2018USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2019 | $ 682,000 |
2020 | 643,000 |
2021 | 635,000 |
2022 | 634,000 |
2023 | 634,000 |
Thereafter | 2,264,000 |
Total | $ 5,492,000 |
DEBT (Details)
DEBT (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Revolver borrowings,LIBOR | 1.75% |
Revolver borrowings,Base Rate | 0.75% |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Revolver borrowings,LIBOR | 1.50% |
Revolver borrowings,Base Rate | 0.50% |
DEBT (Details 1)
DEBT (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Debt issue costs | $ (1,000) | $ (6,000) |
Long-term Debt | 453,000 | 94,000 |
Less current maturities | 453,000 | 0 |
Long-term Debt, Excluding Current Maturities | 0 | 94,000 |
Term Loan [Member] | ||
Long-term Debt | 100,000 | 100,000 |
Less current maturities | 100,000 | |
Capex Borrowing [Member] | ||
Long-term Debt | $ 354,000 | $ 0 |
DEBT (Details Textual)
DEBT (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | 1.75% | |
Short-term Debt | $ 2,096,000 | $ 1,928,000 | |
Payments of Debt Issuance Costs | 3,000 | 84,000 | |
Long-term Debt, Current Maturities | 453,000 | 0 | |
Long-term Debt | 453,000 | 94,000 | |
Line of Credit Facility, Average Outstanding Amount | $ 3,113,000 | $ 3,092,000 | |
Base Rate Borrowing [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | 0.75% | |
Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
LIBOR Margin [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | 1.50% | |
Short-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 12,024,000 | $ 12,450,000 | |
Short-term Debt [Member] | Base Rate borrowing [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 0.75% | |
Short-term Debt [Member] | LIBOR Margin [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | 0.50% | |
Term Loan A [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Current Maturities | $ 100,000 | ||
Long-term Debt | 100,000 | $ 100,000 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 16,000,000 | ||
Payments of Debt Issuance Costs | 84,000 | ||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 1,600,000 | ||
Capex Borrowing [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 400,000 | ||
Debt Instrument, Periodic Payment | 6,700 | ||
Long-term Debt | $ 354,000 | $ 0 | |
Capex Borrowing 300000 Principal [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 300,000 | ||
Capex Borrowing 100000 Principal [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 100,000 |
STOCK OPTIONS - STOCK COMPENS_3
STOCK OPTIONS - STOCK COMPENSATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding | 218,075 | |
Weighted Average Exercise Price per share, Outstanding (in dollars per share) | $ 6.22 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding | 423,817 | |
Number of Shares, Granted | 0 | 89,000 |
Number of Shares, Exercised | (200,158) | (16,722) |
Number of Shares, Forfeited | 0 | (6,793) |
Number of Shares, Expired | 0 | (71,069) |
Number of Shares, Outstanding | 418,233 | |
Number of Shares, Vested | 158,742 | |
Weighted Average Exercise Price per share, Outstanding (in dollars per share) | $ 5.68 | |
Weighted Average Exercise Price per share, Granted (in dollars per share) | 7.09 | |
Weighted Average Exercise Price per share, Exercised (in dollars per share) | $ 4.02 | 3.65 |
Weighted Average Exercise Price per share, Forfeited (in dollars per share) | 7.86 | |
Weighted Average Exercise Price per share, Expired (in dollars per share) | $ 10.72 | |
Weighted Average Exercise Price per share, Outstanding (in dollars per share) | 5.17 | |
Weighted Average Exercise Price per share, Vested (in dollars per share) | $ 5.90 | |
Aggregate Intrinsic Value, Outstanding (in dollars) | $ 335,310 | |
Aggregate Intrinsic Value, Vested (in dollars) | $ 297,337 |
STOCK OPTIONS - STOCK COMPENS_4
STOCK OPTIONS - STOCK COMPENSATION (Details 1) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Shares, Nonvested shares, beginning of year | 89,000 | 0 |
Option Shares, Granted | 0 | 89,000 |
Option Shares, Vested | 29,667 | 0 |
Option Shares, Forfeited | 0 | 0 |
Option Shares, Nonvested shares, end of year | 59,333 | 89,000 |
Weighted Average Grant-Date Fair Value, Non-vested shares, beginning of year (in dollars per share) | $ 4.41 | $ 0 |
Weighted Average Grant-Date Fair Value, Granted (in dollars per share) | 0 | 4.41 |
Weighted Average Grant-Date Fair Value, Vested (in dollars per share) | 4.41 | 0 |
Weighted Average Grant-Date Fair Value, Forfeited (in dollars per share) | 0 | 0 |
Weighted Average Grant-Date Fair Value, Non-vested shares, end of year (in dollars per share) | $ 4.41 | $ 4.41 |
STOCK OPTIONS - STOCK COMPENS_5
STOCK OPTIONS - STOCK COMPENSATION (Details 2) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number outstanding | shares | 218,075 |
Options Outstanding Weighted Average Remaining Contractual Life (Years) | 5 years 7 months 6 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 6.22 |
Number exercisable | shares | 158,742 |
Options Exercisable Weighted Average Remaining Contractual Life (Years) | 4 years 4 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 5.90 |
Exercise Price Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number outstanding | shares | 17,244 |
Options Outstanding Weighted Average Remaining Contractual Life (Years) | 2 years |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 2.92 |
Number exercisable | shares | 17,244 |
Options Exercisable Weighted Average Remaining Contractual Life (Years) | 2 years |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 2.92 |
Exercise Price Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number outstanding | shares | 18,812 |
Options Outstanding Weighted Average Remaining Contractual Life (Years) | 2 years 4 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 4.37 |
Number exercisable | shares | 18,812 |
Options Exercisable Weighted Average Remaining Contractual Life (Years) | 2 years 4 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 4.37 |
Exercise Price Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number outstanding | shares | 2,090 |
Options Outstanding Weighted Average Remaining Contractual Life (Years) | 3 years 4 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 4.29 |
Number exercisable | shares | 2,090 |
Options Exercisable Weighted Average Remaining Contractual Life (Years) | 3 years 4 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 4.29 |
Exercise Price Range Four [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number outstanding | shares | 41,809 |
Options Outstanding Weighted Average Remaining Contractual Life (Years) | 3 years 6 months |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 4.74 |
Number exercisable | shares | 41,809 |
Options Exercisable Weighted Average Remaining Contractual Life (Years) | 3 years 6 months |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 4.74 |
Exercise Price Range Five [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number outstanding | shares | 49,120 |
Options Outstanding Weighted Average Remaining Contractual Life (Years) | 4 years 3 months 18 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 7.86 |
Number exercisable | shares | 49,120 |
Options Exercisable Weighted Average Remaining Contractual Life (Years) | 4 years 3 months 18 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 7.86 |
Exercise Price Range Six [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number outstanding | shares | 89,000 |
Options Outstanding Weighted Average Remaining Contractual Life (Years) | 8 years 8 months 12 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 7.09 |
Number exercisable | shares | 29,667 |
Options Exercisable Weighted Average Remaining Contractual Life (Years) | 8 years 8 months 12 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 7.09 |
STOCK OPTIONS - STOCK COMPENS_6
STOCK OPTIONS - STOCK COMPENSATION (Details Textual) - USD ($) | Sep. 12, 2018 | Sep. 05, 2017 | Aug. 09, 2017 | Nov. 30, 2018 | Jun. 30, 2018 | May 31, 2018 | May 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 79,437 | 88,812 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 218,075 | ||||||||
Restricted stock-based compensation (in dollars) | $ 45,000 | $ 38,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,100,000 | ||||||||
Stock Option Plan Terms And Conditions | the term of each option, which may not exceed ten years (or five years in the case of an incentive stock option granted to a 10% stockholder), the exercise price, the vesting schedule (if any), and the other material terms of each option. No stock option may have an exercise price less than the fair market value of the Common Stock at the time of grant (or, in the case of an incentive stock option granted to a 10% stockholder, 110% of fair market value) | ||||||||
Appreciation Award Description | 1.5 shares for every share granted. | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Nonvested Percentage | 100.00% | ||||||||
Share Based Compensation Stock Option Plan Authorized | 100,000 | ||||||||
Share-based Compensation | $ 196,000 | 80,000 | |||||||
Stock Repurchased During Period, Value | $ 1,516,000 | $ 358,000 | |||||||
Treasury Stock, Shares, Acquired | 85,791 | 18,140 | |||||||
Treasury Stock, Value, Acquired, Cost Method | $ 698,000 | $ 150,000 | |||||||
Common Stock Repurchase Plan [Member] | |||||||||
Stock Repurchased During Period, Shares | 33,398 | 94,600 | |||||||
Stock Repurchased During Period, Value | $ 272,000 | $ 753,000 | |||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 100,000 | 100,000 | |||||||
Stock Repurchase Program, Period in Force | 12 months | ||||||||
Stock Incentive Plan [Member] | |||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 89,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 55,000 | ||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 7.09 | ||||||||
Non Executive Employee [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 34,000 | ||||||||
Non Employee Director [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | 35,000 | ||||||||
Incentive Stock Option Plan 2002 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 34,500 | ||||||||
Incentive Stock Option Plan 2012 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 8.43 | 6.17 | 183,575 | ||||||
Restricted stock-based compensation (in dollars) | $ 53,000 | $ 30,000 | |||||||
Stock Compensation Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | 65,000 | ||||||||
Stock Appreciation Rights (SARs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | 1,000,000 | ||||||||
Common Class A [Member] | |||||||||
Stock Repurchased During Period, Shares | 0 | 0 | |||||||
Stock Repurchased During Period, Value | $ 0 | $ 0 | |||||||
Common Class A [Member] | Employees And Directors [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 325,000 | ||||||||
Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | 165,000 | ||||||||
Restricted Stock [Member] | Incentive Stock Option Plan 2012 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 6,250 | 5,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 1,250 | 1,000 |
DIVIDENDS (Details Textual)
DIVIDENDS (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Dividends Payable, Amount Per Share | $ 0.05 | ||
Dividends | $ 723,000 | $ 722,000 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.05 | ||
Quarterly Cash Dividends Per Share Declared | 0.05 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | ||
Federal | $ (39,000) | $ (373,000) |
State and local | 24,000 | 36,000 |
Foreign | 19,000 | 62,000 |
Total current | 4,000 | (275,000) |
Deferred: | ||
Federal | 268,000 | 980,000 |
Deferred State and Local Income Tax Expense (Benefit) | (15,000) | (63,000) |
Deferred Foreign Income Tax Expense (Benefit) | (4,000) | (7,000) |
Total deferred | 249,000 | 910,000 |
Totals | $ 253,000 | $ 635,000 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Bad debt reserves | $ 17,000 | $ 15,000 |
Inventory reserves | 615,000 | 570,000 |
Warranty and other reserves | 78,000 | 121,000 |
Stock-based compensation | 184,000 | 240,000 |
Goodwill | 940,000 | 1,066,000 |
Acquisition costs | 170,000 | 58,000 |
Net operating losses - federal | 340,000 | 0 |
Net operating losses - state | 91,000 | 66,000 |
Other | 18,000 | 8,000 |
Deferred Tax Assets | 2,453,000 | 2,144,000 |
Deferred Tax Liabilities Current Classification [Abstract] | ||
Prepaid expenses | (373,000) | (152,000) |
Depreciation | (732,000) | (481,000) |
Intangibles | (720,000) | (639,000) |
Deferred Tax Assets, Net | $ 628,000 | $ 872,000 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
United State operations | $ 1,004,000 | $ (476,000) |
International operations | 105,000 | 227,000 |
Income before tax | $ 1,109,000 | $ (249,000) |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | ||
Federal income tax computed at statutory rates | 21.00% | (34.00%) |
(Decrease) increase in taxes resulting from: | ||
State and local taxes, net of Federal tax benefit | 0.60% | (7.20%) |
Permanent differences - net | 5.20% | 11.60% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | (0.70%) | (9.20%) |
Tax Cuts and Jobs Act of 2017 | (3.40%) | 257.60% |
Share based compensation | 0.00% | 46.40% |
Other | 0.10% | (10.20%) |
Income tax (benefit) expense | 22.80% | 255.00% |
INCOME TAXES (Details 4)
INCOME TAXES (Details 4) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | ||
Balance | $ 0 | $ 311,000 |
Lapse of statute of limitations | 0 | (311,000) |
Balance | $ 0 | $ 0 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards | $ 4,084,000 | |
Deferred Tax Expense Recorded In Connection With Remeasurement Of Certain Deferred Tax Assets And Liabilities | $ 588,000 | $ 55,000 |
Deferred Tax Expense Recorded In Connection With Remeasurement Of Certain Deferred Tax Assets And Liabilities Net | 16,000 | |
Deferred Tax Expense Recorded In Connection With Remeasurement Of Certain Deferred Tax Assets And Liabilities Benefit | $ 39,000 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | (34.00%) |
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 588,000 |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards | $ 1,617,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2018USD ($) |
Schedule Of Commitments And Contingencies [Line Items] | |
2019 | $ 333,000 |
2020 | 131,000 |
2021 | 42,000 |
2022 | 13,000 |
2023 | 4,000 |
Operating Leases, Future Minimum Payments Due | $ 523,000 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Commitments And Contingencies [Line Items] | ||
Defined Contribution Plan, Cost Recognized | $ 380,000 | $ 353,000 |
Purchase Obligation | 6,700,000 | 7,138,000 |
Operating Leases, Rent Expense | $ 389,000 | $ 388,000 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - USD ($) | Feb. 08, 2019 | Feb. 14, 2019 | Nov. 30, 2018 | Jun. 30, 2018 |
Subsequent Event [Line Items] | ||||
Treasury Stock, Shares, Acquired | 85,791 | 18,140 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt Instrument, Face Amount | $ 2,000,000 | |||
Line of Credit Facility, Increase (Decrease), Net | 10,000,000 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,000,000 | |||
Debt Instrument, Maturity Date | Feb. 8, 2024 | |||
Treasury Stock, Shares, Acquired | 389,909 | |||
Temporary Equity, Redemption Price Per Share | $ 7.62 | |||
Treasury Stock, Retired, Par Value Method, Amount | $ 2,971,000 |