Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 05, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | CVD EQUIPMENT CORP | |
Entity Central Index Key | 0000766792 | |
Trading Symbol | cvv | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 6,555,570 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 8,580,564 | $ 11,439,361 |
Accounts receivable, net | 2,066,025 | 4,065,220 |
Contract assets | 1,654,467 | 1,357,797 |
Inventories, net | 1,882,666 | 1,861,873 |
Other current assets | 509,806 | 723,204 |
Total Current Assets | 14,693,528 | 19,447,455 |
Property, plant and equipment, net | 31,317,156 | 30,402,558 |
Deferred income taxes | 2,802,414 | 2,104,414 |
Other assets | 41,748 | 64,583 |
Intangible assets, net | 461,058 | 495,552 |
Total Assets | 49,315,904 | 52,514,562 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 1,149,879 | 713,194 |
Accrued expenses | 1,730,518 | 1,503,309 |
Current maturities of long-term debt | 865,464 | 857,590 |
Contract Liabilities | 170,975 | 536,524 |
Deferred revenue | 482,677 | 459,899 |
Total Current Liabilities | 4,399,513 | 4,070,516 |
Long-term debt, net of current portion | 11,716,283 | 12,051,720 |
Total Long-Term Liabilities | 11,716,283 | 12,051,720 |
Total Liabilities | 16,115,796 | 16,122,236 |
Commitments and contingencies | ||
Stockholders’ Equity: | ||
Common stock - $0.01 par value – 20,000,000 shares authorized; issued and outstanding 6,555,150 at June 30, 2019 and 6,535,888 at December 31, 2018 | 65,551 | 65,358 |
Additional paid-in capital | 26,525,521 | 26,148,256 |
Retained earnings | 6,609,036 | 10,178,712 |
Total Stockholders’ Equity | 33,200,108 | 36,392,326 |
Total Liabilities and Stockholders’ Equity | $ 49,315,904 | $ 52,514,562 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 6,555,150 | 6,535,888 |
Common stock, shares outstanding (in shares) | 6,555,150 | 6,535,888 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | $ 4,918,118 | $ 6,435,278 | $ 8,395,378 | $ 15,589,111 |
Cost of revenue | 4,425,279 | 5,319,060 | 8,290,280 | 10,711,979 |
Gross profit | 492,839 | 1,116,218 | 105,098 | 4,877,132 |
Operating expenses | ||||
Research and development | 176,920 | 128,117 | 341,000 | 224,923 |
Selling and shipping | 227,117 | 399,249 | 504,424 | 912,724 |
General and administrative | 1,632,022 | 1,968,465 | 3,368,110 | 4,208,530 |
Total operating expenses | 2,036,059 | 2,495,831 | 4,213,534 | 5,346,177 |
Operating loss | (1,543,220) | (1,379,613) | (4,108,436) | (469,045) |
Other income (expense): | ||||
Interest income | 42,063 | 29,314 | 88,869 | 46,274 |
Interest expense | (126,270) | (119,279) | (240,806) | (240,633) |
Total other expense, net | (84,207) | (89,965) | (151,937) | (194,359) |
Loss before income tax | (1,627,427) | (1,469,578) | (4,260,373) | (663,404) |
Income tax (benefit) expense | (234,697) | (139,052) | (690,697) | 108,718 |
Net loss | $ (1,392,730) | $ (1,330,526) | $ (3,569,676) | $ (772,122) |
Basic loss per common share (in dollars per share) | $ (0.21) | $ (0.21) | $ (0.55) | $ (0.12) |
Diluted loss per common share (in dollars per share) | $ (0.21) | $ (0.21) | $ (0.55) | $ (0.12) |
Weighted average common shares Outstanding-basic (in shares) | 6,555,150 | 6,486,067 | 6,547,035 | 6,476,712 |
Weighted average common shares Outstanding-diluted (in shares) | 6,555,150 | 6,486,067 | 6,547,035 | 6,476,712 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (3,569,676) | $ (772,122) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||
Stock-based compensation | 377,457 | 424,015 |
Depreciation and amortization | 554,579 | 544,158 |
Deferred income tax (benefit)/expense | (698,000) | 56,888 |
Provision for inventory obsolescence | 50,000 | |
(Increase)/decrease in operating assets | ||
Accounts receivable | 1,999,195 | (663,864) |
Contract assets | (296,670) | 3,082,808 |
Inventories | (70,793) | 317,604 |
Other current assets | 213,399 | (47,204) |
Increase/(decrease) in operating liabilities | ||
Accounts payable | 436,684 | 52,290 |
Accrued expenses | 227,209 | (663,436) |
Contract liabilities | (365,549) | (187,051) |
Deferred revenue | 22,778 | 815,639 |
Total adjustments | 2,450,289 | 3,731,847 |
Net cash (used in) provided by operating activities | (1,119,387) | 2,959,725 |
Cash flows from investing activities: | ||
Capital expenditures | (1,434,682) | (1,273,857) |
Other assets | 22,835 | (177,789) |
Net cash used in investing activities | (1,411,847) | (1,451,646) |
Cash flows from financing activities | ||
Payments of long-term debt | (327,563) | (322,499) |
Net cash used in financing activities | (327,563) | (322,499) |
Net (decrease) increase in cash and cash equivalents | (2,858,797) | 1,185,580 |
Cash and cash equivalents at beginning of period | 11,439,361 | 14,210,909 |
Cash and cash equivalents at end of period | 8,580,564 | 15,396,489 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 395,000 | |
Interest paid | 240,806 | 242,324 |
Capitalization of right to use Asset | $ 128,947 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | NOTE 1: BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements for CVD Equipment Corporation and Subsidiaries (collectively “the Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10 8 X. not not three six June 30, 2019 not December 31, 2019. The consolidated balance sheet as of December 31, 2018 not 10 December 31, 2018, 2 All material intercompany transactions have been eliminated in consolidation. In addition, certain reclassifications have been made to prior period consolidated financial statements to conform to the current year presentation. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition On January 1, 2018, 606, not January 1, 2018 606, not The adoption of ASC 606 not three six June 30, 2018 not The Company designs, manufactures and sells custom chemical vapor deposition equipment through contractual agreements. These system sales require the Company to deliver functioning equipment that is generally completed within three eighteen Incurred costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. Contract material costs are included in incurred costs when the project materials have been purchased or moved to work in process as required by the project’s engineering design. Cost based input methods of revenue recognition require the Company to make estimates of costs to complete the projects. In making such estimates, significant judgment is required to evaluate assumptions related to the costs to complete the projects, including materials, labor and other system costs. If the estimated total costs on any contract are greater than the net contract revenues, the Company recognizes the entire estimated loss in the period the loss becomes known and can be reasonably estimated. “Contract assets,” include unbilled amounts typically resulting from sales under contracts when revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. The amount may not “Contract liabilities,” include advance payments and billings in excess of revenue recognized. Contract liabilities are classified as current based on our contract operating cycle and reported on a contract-by-contract basis, net of revenue recognized, at the end of each reporting period. For outright sales of products, revenue is recognized when control of the promised products or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services (the transaction price). A performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under ASC 606. Research and development costs are expensed as incurred. Due to the highly technical nature of our projects, we use our technical staff in a dual role, and based on their contribution to the customer or research and development projects, their costs are charged accordingly to either cost of goods sold or research and development. Recent Accounting Pronouncements In June 2016, 2016 13, F inancial Instruments – Credit Losses (Topic 326 December 15, 2019 December 15, 2018 Recently Adopted Accounting Pronouncements In February 2016 No. 2016 02, 842 2016 02 2016 02 not 12 not 2016 02 December 15, 2018. may An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. In addition, FASB has amended Topic 842 842 2016 02. one December 31, 2020 $129,000 We believe there is no not may |
Note 3 - Concentration of Credi
Note 3 - Concentration of Credit Risk | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE 3: CONCENTRATION OF CREDIT RISK Cash and cash equivalents The Company had cash and cash equivalents of $8.6 $11.4 June 30, 2019 December 31, 2018, three $7.5 $8.9 June 30, 2019 December 31, 2018, The Company places most of its temporary cash investments with financial institutions, which from time to time may June 30, 2019 December 31, 2018 $6,824,000 $6,920,000, Sales concentration Revenue from a single customer in any one 10% three six June 30, 2019, one 13% 10% three six June 30, 2018, 37% 43% Accounts receivable The Company sells products and services to various companies across several industries in the ordinary course of business. The Company performs ongoing credit evaluations to assess the probability of accounts receivable collection based on a number of factors, including past transaction experience, evaluation of their credit history and review of the invoicing terms of the contract to determine the financial strength of its customers. The Company also maintains allowances for anticipated losses. At June 30, 2019 two 10% 24% December 31, 2018 two 42% |
Note 4 - Revenue From Contracts
Note 4 - Revenue From Contracts With Customers | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE 4: REVENUE FROM CONTRACTS WITH CUSTOMERS The following table represents a disaggregation of revenue from contracts with customers for the three six June 30, 2019 2018: (in Thousands) Three Months Ended Six Months Ended Category June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Aerospace $ 1,003 $ 2,205 $ 1,216 $ 6,079 Industrial 1,810 1,962 3,387 5,208 Research 1,102 1,014 1,954 1,875 Point in time 1,003 1,254 1,838 2,427 Net Revenue $ 4,918 $ 6,435 $ 8,395 $ 15,589 Judgment is required to evaluate assumptions including the amount of net contract revenues and the total estimated costs to determine our progress towards contract completion and to calculate the corresponding amount of revenue to recognize. Changes in estimates for sales of systems occur for a variety of reasons, including but not may three six June 30, 2019 2018, Three Months Ended Three Months Ended (In thousands) June 30, 2019 June 30, 2018 Increase in revenue from net changes in transaction prices $ 0 $ 34 (Decrease) increase in revenue from net changes in input cost estimates $ (61 ) $ (479 ) Net (decrease) increase in revenue from net Changes in estimates $ (61 ) $ (445 ) Number of projects 26 15 Net change in estimate as a percentage of aggregate revenue for associated projects (.9 %) (9.2 %) Six Months Ended Six Months Ended (In thousands) June 30, 2019 June 30, 2018 Increase in revenue from net changes in transaction prices $ 9 $ 75 (Decrease) increase in revenue from net changes in input cost estimates $ (240 ) $ (570 ) Net (decrease) increase in revenue from net Changes in estimates $ (231 ) $ (495 ) Number of projects 26 10 Net change in estimate as a percentage of aggregate revenue for associated projects (.5 %) (8.8 %) For the three six June 30, 2019 2018, $61,000 $231,000 2019, $445,000 $495,000 2018, Contract Assets and Liabilities Contract assets consist of (i) retainage which represent the earned, but unbilled, portion for which payment is deferred by the customer until certain contractual milestones are met; and (ii) unbilled receivables which represent revenue that has been recognized in advance of billing the customer, which is common for long-term contracts. Contract liabilities consist of customer advances and billings in excess of revenue recognized. During the six June 30, 2019 2018, $.3 $3.1 2018 |
Note 5 - Inventories, Net
Note 5 - Inventories, Net | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 5: INVENTORIES, NET Inventories consist of: June 30, 2019 December 31, 2018 Raw materials $ 1,701,667 $ 2,016,488 Work-in-process 590,999 205,385 Finished goods - - Gross inventories 2,292,666 2,221,873 Less reserve for obsolescence (410,000 ) (360,000 ) Inventories, net $ 1,882,666 $ 1,861,873 |
Note 6 - Accounts Receivable, N
Note 6 - Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 6: ACCOUNTS RECEIVABLE, NET Accounts receivable are presented net of an allowance for doubtful accounts of approximately $24,000 June 30, 2019 December 31, 2018. may |
Note 7 - Long-term Debt
Note 7 - Long-term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 7: LONG-TERM DEBT The Company had a revolving credit facility with HSBC Bank, USA, N.A. (“HSBC”) providing up to $7 September 1, 2018. The Company has a loan agreement with HSBC which is secured by a mortgage on our Central Islip, NY headquarters. The loan is payable in 120 $25,000 March 2022. June 30, 2019 December 31, 2018 $2.5 $2.7 1.75% 0.5%. On November 30, 2017, 555 $13,850,000 555 $10,387,500, 555 November 30, 2017 ( November 30, 2017, The Loan is payable in 60 $62,481 December 2022. June 30, 2019 December 31, 2018 $9.9 $10.0 3.9148%. December 1, 2022. November 30, 2017 ( May 31, 2019, two June 30, 2019, $36,000 June 1, 2019. July 2019, $67,000 $800,000 At December 31, 2018, not one March 26, 2019 April 1, 2020. August 5, 2019, June 30, 2019. |
Note 8 - Stock-based Compensati
Note 8 - Stock-based Compensation Expense | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | NOTE 8: STOCK-BASED COMPENSATION EXPENSE The Company recorded as part of selling and general administrative expense $179,000 $378,000 three six June 30, 2019, three six June 30, 2018, $201,000 $424,000, |
Note 9 - Income Taxes
Note 9 - Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 9: INCOME TAXES On December 22, 2017, 35.0% 21.0%. January 1, 2018 The provision for income taxes includes the following: Six Months Ended June 30, 2019 2018 Current: Federal $ --- $ 48,330 State 7,303 3,500 Total current provision 7,303 51,830 Deferred: Federal $ (698,000 ) $ 56,888 State ------ ---- Total deferred (benefit) provision (698,000 ) 56,888 Income tax expense (benefit) provision $ (690,697 ) $ 108,718 Tax Rate Reconciliation The reconciliation between the Company’s effective tax rate on income from continuing operations and the statutory rate is as follows: Six Months Ended June 30, 2019 2018 Income tax provision at federal statutory rate (21%) $ (895,428 ) $ (139,314 ) Foreign tax loss 28,175 82,715 State taxes 3,000 3,500 Difference between tax and book depreciation 48,144 39,827 Stock compensation 62,505 140,052 Other Permanent differences 62,907 (18,062 ) Income tax (benefit) expense $ (690,697 ) $ 108,718 The Company’s foreign subsidiary, CVD Tantaline ApS incurred a loss of approximately $134,000 six June 30, 2019 $28,000 22% six June 31, 2018 $394,000 $83,000. We continue to evaluate for potential utilization of the Company’s deferred tax asset on a quarterly basis, reviewing our economic models, including projections and timing of orders, the commencement of operations of the new CVD Materials segment and cost containment measures. |
Note 10 - Earnings Per Share
Note 10 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 10: EARNINGS PER SHARE Basic earnings per share is computed by dividing net earnings available to common shareholders (the numerator) by the weighted average number of common shares (the denominator) for the period presented. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. Stock options to purchase 467,930 227,930 three six June 30, 2019. 387,930 227,930 three six June 30, 2018. three six June 31, 2019 2018, no The dilutive potential common shares on warrants and options is calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all warrants and options are used to repurchase common stock at market value. The amount of shares remaining after the proceeds are exhausted represents the potential dilutive effect of the securities. |
Note 11 - Segment Reporting
Note 11 - Segment Reporting | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 11: SEGMENT REPORTING The Company operates through three 3 The Company’s corporate administration activities are reported in the Eliminations and Unallocated column. These activities primarily include intercompany profit, expenses related to certain corporate officers and support staff, expenses related to the Company’s Board of Directors, stock option expense for shares granted to corporate administration employees, certain consulting expenses, investor and shareholder relations activities, and all of the Company’s legal, auditing and professional fees, and interest expense. Three Months Ended June 3 0 , ( In thousands ) Eliminations* and 2019 CVD SDC Materials Unallocated Consolidated Assets $ 37,016 $ 5,581 $ 6,728 $ (9 ) $ 49,316 Revenue 3,194 1,591 542 (409 ) 4,918 Operating income/(loss) (1,021 ) 508 (130 ) (900 ) (1,543 ) Pretax income/(loss) (1,013 ) 515 (229 ) (900 ) (1,627 ) 201 8 Assets $ 37,403 $ 3,481 $ 17,481 $ (9 ) $ 58,356 Revenue 5,635 844 358 (402 ) 6,435 Operating income/(loss) 145 (243 ) (627 ) (655 ) (1,380 ) Pretax income/(loss) 145 (243 ) (627 ) (745 ) (1,470 ) Six Months Ended June 30, (In thousands) Eliminations* and 2019 CVD SDC Materials Unallocated Consolidated Revenue $ 5,213 $ 2,678 $ 970 $ (466 ) $ 8,395 Operating income/(loss) (2,558 ) 682 (328 ) (1,904 ) (4,108 ) Pretax income/(loss) (2,522 ) 691 (525 ) (1,904 ) (4,260 ) 2018 Revenue $ 12,341 $ 3,104 $ 730 $ (586 ) $ 15,589 Operating income/(loss) 1,482 488 (1,140 ) (1,299 ) (469 ) Pretax income/(loss) 1,482 488 (1,140 ) (1,493 ) (663 ) *All elimination entries represent intersegment revenues eliminated in consolidation for external financial reporting. |
Note 12 - Subsequent Event
Note 12 - Subsequent Event | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 12: SUBSEQUENT EVENT On August 5, 2019, CVD Equipment Corporation and its consolidated subsidiaries shall own and maintain minimum Liquid Assets of (i) at least $3,000,000 December 31, 2019 ( $3,250,000 March 31, 2020, ( $3,500,000 September 30, 2020, ( $3,750,000 March 31, 2021, ( $4,000,000 September 30, 2021, $4,000,000 not In addition, the agreements provide for a cross default between the Company’s two |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition On January 1, 2018, 606, not January 1, 2018 606, not The adoption of ASC 606 not three six June 30, 2018 not The Company designs, manufactures and sells custom chemical vapor deposition equipment through contractual agreements. These system sales require the Company to deliver functioning equipment that is generally completed within three eighteen Incurred costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. Contract material costs are included in incurred costs when the project materials have been purchased or moved to work in process as required by the project’s engineering design. Cost based input methods of revenue recognition require the Company to make estimates of costs to complete the projects. In making such estimates, significant judgment is required to evaluate assumptions related to the costs to complete the projects, including materials, labor and other system costs. If the estimated total costs on any contract are greater than the net contract revenues, the Company recognizes the entire estimated loss in the period the loss becomes known and can be reasonably estimated. “Contract assets,” include unbilled amounts typically resulting from sales under contracts when revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. The amount may not “Contract liabilities,” include advance payments and billings in excess of revenue recognized. Contract liabilities are classified as current based on our contract operating cycle and reported on a contract-by-contract basis, net of revenue recognized, at the end of each reporting period. For outright sales of products, revenue is recognized when control of the promised products or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services (the transaction price). A performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under ASC 606. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Research and development costs are expensed as incurred. Due to the highly technical nature of our projects, we use our technical staff in a dual role, and based on their contribution to the customer or research and development projects, their costs are charged accordingly to either cost of goods sold or research and development. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In June 2016, 2016 13, F inancial Instruments – Credit Losses (Topic 326 December 15, 2019 December 15, 2018 Recently Adopted Accounting Pronouncements In February 2016 No. 2016 02, 842 2016 02 2016 02 not 12 not 2016 02 December 15, 2018. may An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. In addition, FASB has amended Topic 842 842 2016 02. one December 31, 2020 $129,000 We believe there is no not may |
Note 4 - Revenue From Contrac_2
Note 4 - Revenue From Contracts With Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended Six Months Ended Category June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Aerospace $ 1,003 $ 2,205 $ 1,216 $ 6,079 Industrial 1,810 1,962 3,387 5,208 Research 1,102 1,014 1,954 1,875 Point in time 1,003 1,254 1,838 2,427 Net Revenue $ 4,918 $ 6,435 $ 8,395 $ 15,589 |
Contract with Customer, Asset and Liability [Table Text Block] | Three Months Ended Three Months Ended (In thousands) June 30, 2019 June 30, 2018 Increase in revenue from net changes in transaction prices $ 0 $ 34 (Decrease) increase in revenue from net changes in input cost estimates $ (61 ) $ (479 ) Net (decrease) increase in revenue from net Changes in estimates $ (61 ) $ (445 ) Number of projects 26 15 Net change in estimate as a percentage of aggregate revenue for associated projects (.9 %) (9.2 %) Six Months Ended Six Months Ended (In thousands) June 30, 2019 June 30, 2018 Increase in revenue from net changes in transaction prices $ 9 $ 75 (Decrease) increase in revenue from net changes in input cost estimates $ (240 ) $ (570 ) Net (decrease) increase in revenue from net Changes in estimates $ (231 ) $ (495 ) Number of projects 26 10 Net change in estimate as a percentage of aggregate revenue for associated projects (.5 %) (8.8 %) |
Note 5 - Inventories, Net (Tabl
Note 5 - Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, 2019 December 31, 2018 Raw materials $ 1,701,667 $ 2,016,488 Work-in-process 590,999 205,385 Finished goods - - Gross inventories 2,292,666 2,221,873 Less reserve for obsolescence (410,000 ) (360,000 ) Inventories, net $ 1,882,666 $ 1,861,873 |
Note 9 - Income Taxes (Tables)
Note 9 - Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Six Months Ended June 30, 2019 2018 Current: Federal $ --- $ 48,330 State 7,303 3,500 Total current provision 7,303 51,830 Deferred: Federal $ (698,000 ) $ 56,888 State ------ ---- Total deferred (benefit) provision (698,000 ) 56,888 Income tax expense (benefit) provision $ (690,697 ) $ 108,718 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Six Months Ended June 30, 2019 2018 Income tax provision at federal statutory rate (21%) $ (895,428 ) $ (139,314 ) Foreign tax loss 28,175 82,715 State taxes 3,000 3,500 Difference between tax and book depreciation 48,144 39,827 Stock compensation 62,505 140,052 Other Permanent differences 62,907 (18,062 ) Income tax (benefit) expense $ (690,697 ) $ 108,718 |
Note 11 - Segment Reporting (Ta
Note 11 - Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Eliminations* and 2019 CVD SDC Materials Unallocated Consolidated Assets $ 37,016 $ 5,581 $ 6,728 $ (9 ) $ 49,316 Revenue 3,194 1,591 542 (409 ) 4,918 Operating income/(loss) (1,021 ) 508 (130 ) (900 ) (1,543 ) Pretax income/(loss) (1,013 ) 515 (229 ) (900 ) (1,627 ) 201 8 Assets $ 37,403 $ 3,481 $ 17,481 $ (9 ) $ 58,356 Revenue 5,635 844 358 (402 ) 6,435 Operating income/(loss) 145 (243 ) (627 ) (655 ) (1,380 ) Pretax income/(loss) 145 (243 ) (627 ) (745 ) (1,470 ) Eliminations* and 2019 CVD SDC Materials Unallocated Consolidated Revenue $ 5,213 $ 2,678 $ 970 $ (466 ) $ 8,395 Operating income/(loss) (2,558 ) 682 (328 ) (1,904 ) (4,108 ) Pretax income/(loss) (2,522 ) 691 (525 ) (1,904 ) (4,260 ) 2018 Revenue $ 12,341 $ 3,104 $ 730 $ (586 ) $ 15,589 Operating income/(loss) 1,482 488 (1,140 ) (1,299 ) (469 ) Pretax income/(loss) 1,482 488 (1,140 ) (1,493 ) (663 ) |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Details Textual) - Accounting Standards Update 2016-02 [Member] | Jan. 01, 2019USD ($) |
Operating Lease, Right-of-Use Asset | $ 129,000 |
Operating Lease, Liability, Total | $ 129,000 |
Note 3 - Concentration of Cre_2
Note 3 - Concentration of Credit Risk (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $ 8,580,564 | $ 15,396,489 | $ 8,580,564 | $ 15,396,489 | $ 11,439,361 | $ 14,210,909 |
Cash Equivalents, at Carrying Value, Total | 7,500,000 | 7,500,000 | 8,900,000 | |||
Cash, Uninsured Amount | $ 6,824,000 | $ 6,824,000 | $ 6,920,000 | |||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||||||
Number Of Major Customers | 1 | 1 | ||||
Concentration Risk, Percentage | 13.00% | 37.00% | 10.00% | 43.00% | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Number Of Major Customers | 2 | 2 | ||||
Concentration Risk, Percentage | 24.00% | 42.00% |
Note 4 - Revenue From Contrac_3
Note 4 - Revenue From Contracts With Customers (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Contract with Customer, Cumulative Catch-up Adjustment to Revenue, Change in Estimate of Transaction Price and Input Costs | $ (61,000) | $ (445,000) | $ (231,000) | $ (495,000) | |
Increase (Decrease) in Contract with Customer, Asset | $ 300,000 | $ 296,670 | $ (3,082,808) |
Note 4 - Revenue From Contrac_4
Note 4 - Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Revenue | $ 4,918,118 | $ 6,435,278 | $ 8,395,378 | $ 15,589,111 |
Transferred at Point in Time [Member] | ||||
Net Revenue | 1,003,000 | 1,254,000 | 1,838,000 | 2,427,000 |
Aerospace [Member] | ||||
Net Revenue | 1,003,000 | 2,205,000 | 1,216,000 | 6,079,000 |
Industrial [Member] | ||||
Net Revenue | 1,810,000 | 1,962,000 | 3,387,000 | 5,208,000 |
Research [Member] | ||||
Net Revenue | $ 1,102,000 | $ 1,014,000 | $ 1,954,000 | $ 1,875,000 |
Note 4 - Revenue From Contrac_5
Note 4 - Revenue From Contracts With Customers - Changes in Estimates (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Increase in revenue from net changes in transaction prices | $ 0 | $ 34,000 | $ 9,000 | $ 75,000 |
(Decrease) increase in revenue from net changes in input cost estimates | (61,000) | (479,000) | (240,000) | (570,000) |
Net (decrease) increase in revenue from net Changes in estimates | $ (61,000) | $ (445,000) | $ (231,000) | $ (495,000) |
Number of projects | 26 | 15 | 26 | 10 |
Net change in estimate as a percentage of aggregate revenue for associated projects | (0.90%) | (9.20%) | (0.50%) | (8.80%) |
Note 5 - Inventories, Net - Com
Note 5 - Inventories, Net - Components of Inventories (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Raw materials | $ 1,701,667 | $ 2,016,488 |
Work-in-process | 590,999 | 205,385 |
Finished goods | ||
Gross inventories | 2,292,666 | 2,221,873 |
Less reserve for obsolescence | (410,000) | (360,000) |
Inventories, net | $ 1,882,666 | $ 1,861,873 |
Note 6 - Accounts Receivable,_2
Note 6 - Accounts Receivable, Net (Details Textual) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 24,000 | $ 24,000 |
Note 7 - Long-term Debt (Detail
Note 7 - Long-term Debt (Details Textual) | Jul. 01, 2019USD ($) | Nov. 30, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Sep. 01, 2018USD ($) |
Payments to Acquire Property, Plant, and Equipment, Total | $ 1,434,682 | $ 1,273,857 | |||||
Rental Income, Nonoperating | $ 36,000 | ||||||
Subsequent Event [Member] | |||||||
Monthly Rental Income | $ 67,000 | ||||||
Annual Rental Income | $ 800,000 | ||||||
HSBC Bank Mortgage Loan [Member] | |||||||
Debt Instrument, Number of Payments | 120 | ||||||
Debt Instrument, Periodic Payment, Total | $ 25,000 | ||||||
Long-term Debt, Total | 2,500,000 | $ 2,500,000 | $ 2,700,000 | ||||
HSBC Bank Mortgage Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||
HSBC Bank Mortgage Loan [Member] | Prime Rate [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||
HSBC Bank Second Mortgage Loan [Member] | |||||||
Debt Instrument, Number of Payments | 60 | ||||||
Debt Instrument, Periodic Payment, Total | $ 62,481 | ||||||
Long-term Debt, Total | $ 9,900,000 | $ 9,900,000 | $ 10,000,000 | ||||
Debt Instrument, Face Amount | $ 10,387,500 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.9148% | 3.9148% | |||||
HSBC Bank Second Mortgage Loan [Member] | Premises at 555 North Research Place, Central Islip, NY [Member] | |||||||
Payments to Acquire Property, Plant, and Equipment, Total | $ 13,850,000 | ||||||
HSBC Bank [Member] | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,000,000 |
Note 8 - Stock-based Compensa_2
Note 8 - Stock-based Compensation Expense (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Selling, General and Administrative Expenses [Member] | ||||
Share-based Payment Arrangement, Expense | $ 179,000 | $ 201,000 | $ 378,000 | $ 424,000 |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Income (Loss) Attributable to Parent, Total | $ (1,392,730) | $ (1,330,526) | $ (3,569,676) | $ (772,122) |
CVD Tantaline ApS [Member] | DENMARK | ||||
Net Income (Loss) Attributable to Parent, Total | 134,000 | 394,000 | ||
Deferred Tax Assets, Gross, Total | $ 28,000 | $ 83,000 | $ 28,000 | $ 83,000 |
CVD Tantaline ApS [Member] | DENMARK | Foreign Tax Authority [Member] | The Danish Ministry of Taxation [Member] | ||||
Effective Income Tax Rate Reconciliation, at Foreign Statutory Income Tax Rate, Percent | 22.00% | 22.00% |
Note 9 - Income Taxes - Compone
Note 9 - Income Taxes - Components of Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Federal | $ 48,330 | |||
State | 7,303 | 3,500 | ||
Total current provision | 7,303 | 51,830 | ||
Federal | (698,000) | 56,888 | ||
State | ||||
Total deferred (benefit) provision | (698,000) | 56,888 | ||
Income tax expense (benefit) provision | $ (234,697) | $ (139,052) | $ (690,697) | $ 108,718 |
Note 9 - Income Taxes - Effecti
Note 9 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income tax provision at federal statutory rate (21%) | $ (895,428) | $ (139,314) | ||
Foreign tax loss | 28,175 | 82,715 | ||
State taxes | 3,000 | 3,500 | ||
Difference between tax and book depreciation | 48,144 | 39,827 | ||
Stock compensation | 62,505 | 140,052 | ||
Other Permanent differences | 62,907 | (18,062) | ||
Income tax expense (benefit) provision | $ (234,697) | $ (139,052) | $ (690,697) | $ 108,718 |
Note 9 - Income Taxes - Effec_2
Note 9 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) (Parentheticals) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income tax, rate | 21.00% | 21.00% |
Note 10 - Earnings Per Share (D
Note 10 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 467,930 | 387,930 | 467,930 | 387,930 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 227,930 | 227,930 | 227,930 | 227,930 |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 |
Note 11 - Segment Reporting (De
Note 11 - Segment Reporting (Details Textual) | 6 Months Ended |
Jun. 30, 2019 | |
Number of Operating Segments | 3 |
Note 11 - Segment Reporting - S
Note 11 - Segment Reporting - Segment Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | ||
Assets | $ 49,315,904 | $ 58,356,000 | $ 49,315,904 | $ 58,356,000 | $ 52,514,562 | |
Revenue | 4,918,118 | 6,435,278 | 8,395,378 | 15,589,111 | ||
Operating income/(loss) | (1,543,220) | (1,379,613) | (4,108,436) | (469,045) | ||
Pretax income/(loss) | (1,627,427) | (1,469,578) | (4,260,373) | (663,404) | ||
Intersegment Eliminations [Member] | ||||||
Assets | [1] | (9,000) | (9,000) | (9,000) | (9,000) | |
Revenue | [1] | (409,000) | (402,000) | (466,000) | (586,000) | |
Operating income/(loss) | [1] | (900,000) | (655,000) | (1,904,000) | (1,299,000) | |
Pretax income/(loss) | [1] | (900,000) | (745,000) | (1,904,000) | (1,493,000) | |
CVD [Member] | Operating Segments [Member] | ||||||
Assets | 37,016,000 | 37,403,000 | 37,016,000 | 37,403,000 | ||
Revenue | 3,194,000 | 5,635,000 | 5,213,000 | 12,341,000 | ||
Operating income/(loss) | (1,021,000) | 145,000 | (2,558,000) | 1,482,000 | ||
Pretax income/(loss) | (1,013,000) | 145,000 | (2,522,000) | 1,482,000 | ||
SDC [Member] | Operating Segments [Member] | ||||||
Assets | 5,581,000 | 3,481,000 | 5,581,000 | 3,481,000 | ||
Revenue | 1,591,000 | 844,000 | 2,678,000 | 3,104,000 | ||
Operating income/(loss) | 508,000 | (243,000) | 682,000 | 488,000 | ||
Pretax income/(loss) | 515,000 | (243,000) | 691,000 | 488,000 | ||
Materials [Member] | Operating Segments [Member] | ||||||
Assets | 6,728,000 | 17,481,000 | 6,728,000 | 17,481,000 | ||
Revenue | 542,000 | 358,000 | 970,000 | 730,000 | ||
Operating income/(loss) | (130,000) | (627,000) | (328,000) | (1,140,000) | ||
Pretax income/(loss) | $ (229,000) | $ (627,000) | $ (525,000) | $ (1,140,000) | ||
[1] | All elimination entries represent intersegment revenues eliminated in consolidation for external financial reporting. |
Note 12 - Subsequent Event (Det
Note 12 - Subsequent Event (Details Textual) - USD ($) | Oct. 01, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Forecast [Member] | HSBC Bank [Member] | ||||||
Mortgage Modification Agreement, Requirement, Minimum Liquid Assets | $ 4,000,000 | $ 4,000,000 | $ 3,750,000 | $ 3,500,000 | $ 3,250,000 | $ 3,000,000 |