Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 15, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 1-16525 | ||
Entity Registrant Name | CVD EQUIPMENT CORPORATION | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 11-2621692 | ||
Entity Address, Address Line One | 355 South Technology Drive | ||
Entity Address, City or Town | Central Islip | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 11722 | ||
City Area Code | 631 | ||
Local Phone Number | 981-7081 | ||
Title of 12(b) Security | Common Stock, Par value $0.01 | ||
Trading Symbol | CVV | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 19,375,591 | ||
Entity Common Stock, Shares Outstanding (in shares) | 6,778,438 | ||
Auditor Firm ID | 688 | ||
Auditor Name | Marcum LLP | ||
Auditor Location | Melville, NY | ||
Entity Central Index Key | 0000766792 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 14,365,000 | $ 16,651,000 |
Accounts receivable, net | 3,788,000 | 1,446,000 |
Contract assets | 2,170,000 | 2,538,000 |
Inventories, net | 2,538,000 | 1,225,000 |
Income taxes receivable | 0 | 716,000 |
Other current assets | 797,000 | 494,000 |
Total current assets | 23,658,000 | 23,070,000 |
Employee retention credit receivable | 1,529,000 | 0 |
Property, plant and equipment, net | 12,596,000 | 12,261,000 |
Intangible assets, net | 119,000 | 183,000 |
Other assets | 10,000 | 10,000 |
Total assets | 37,912,000 | 35,524,000 |
Current liabilities | ||
Accounts payable | 1,454,000 | 1,161,000 |
Accrued expenses | 2,591,000 | 1,759,000 |
Current maturities of long-term debt | 77,000 | 1,766,000 |
Contract liabilities | 4,042,000 | 1,650 |
Total current liabilities | 8,164,000 | 6,336,000 |
Long-term debt, net of current portion | 349,000 | 0 |
Total liabilities | 8,513,000 | 6,336,000 |
Commitments and Contingencies | ||
Stockholders’ equity: | ||
Common stock - $0.01 par value – 20,000,000 shares authorized; issued and outstanding 6,760,938 at December 31, 2022 and 6,723,438 at December 31, 2021 | 67,000 | 67,000 |
Additional paid-in capital | 27,712,000 | 27,277,000 |
Retained earnings | 1,620,000 | 1,844,000 |
Total stockholders’ equity | 29,399,000 | 29,188,000 |
Total liabilities and stockholders’ equity | $ 37,912,000 | $ 35,524,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
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) | 6,760,938 | 6,723,438 |
Common stock, shares outstanding (in shares) | 6,760,938 | 6,723,438 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenue | $ 25,813 | $ 16,447 | |
Cost of revenue | 19,186 | 13,370 | |
Gross profit | 6,627 | 3,077 | |
Operating expenses: | |||
Research and development | 1,906 | 1,785 | |
Selling | 1,216 | 864 | |
General and administrative | 5,328 | 5,092 | |
Total operating expenses | 8,450 | 7,741 | |
Operating loss | (1,823) | (4,664) | |
Other income (expense): | |||
Interest income | 162 | 6 | |
Interest expenses | (8) | (261) | |
Employee retention credits | 1,529 | 0 | |
Foreign exchange loss | (95) | (143) | |
Gain on sale of building | 0 | 6,894 | |
Gain on debt extinguishment | 0 | 2,443 | |
Other income | 15 | 500 | |
Total other income, net | 1,603 | 9,439 | |
(Loss) income before income tax | (220) | [1] | 4,775 |
Income tax expense | 4 | 28 | |
Net (loss) income | $ (224) | $ 4,747 | |
Income (loss) per common share: | |||
Basic (in dollars per share) | $ (0.03) | $ 0.71 | |
Diluted (in dollars per share) | $ (0.03) | $ 0.71 | |
Weighted average number of shares: | |||
Basic (in shares) | 6,734 | 6,688 | |
Diluted (in shares) | 6,734 | 6,704 | |
[1]Includes other income related to ERCs of $1,103, $303 and $123 for the CVD, SDC and Materials segments, respectively. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2020 | 6,679 | |||
Balance at Dec. 31, 2020 | $ 67 | $ 26,962 | $ (2,903) | $ 24,126 |
Net (loss) income | $ 0 | 0 | 4,747 | 4,747 |
Stock-based compensation (in shares) | 44 | |||
Stock-based compensation | $ 0 | 315 | 0 | $ 315 |
Balance (in shares) at Dec. 31, 2021 | 6,723 | 6,723,438 | ||
Balance at Dec. 31, 2021 | $ 67 | 27,277 | 1,844 | $ 29,188 |
Net (loss) income | $ 0 | 0 | (224) | (224) |
Stock-based compensation (in shares) | 37 | |||
Stock-based compensation | $ 0 | 435 | 0 | $ 435 |
Balance (in shares) at Dec. 31, 2022 | 6,760 | 6,760,938 | ||
Balance at Dec. 31, 2022 | $ 67 | $ 27,712 | $ 1,620 | $ 29,399 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (224) | $ 4,747 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | ||
Gain on sale of building | 0 | (6,894) |
Gain on debt extinguishment | 0 | (2,443) |
Stock-based compensation | 435 | 315 |
Depreciation and amortization | 867 | 742 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,342) | (399) |
Contract assets | 368 | (2,044) |
Inventories | (1,313) | (101) |
Income tax receivable | 716 | 0 |
Employee retention credit receivable | (1,529) | 0 |
Other current assets | (301) | 220 |
Accounts payable | 293 | 343 |
Accrued expenses | 832 | 377 |
Contract liabilities | 2,392 | 864 |
Net cash provided by (used in) operating activities | 194 | (4,273) |
Cash flows from investing activities: | ||
Net proceeds from sale of building | 0 | 23,076 |
Net proceeds from sale of equipment | 10 | 0 |
Capital expenditures | (665) | (236) |
Capitalized patent costs | (53) | 0 |
Net cash (used in) provided by investing activities | (708) | 22,840 |
Cash flows from financing activities | ||
Repayments of long-term debt | (1,772) | (9,615) |
Net cash used in financing activities | (1,772) | (9,615) |
Net (decrease) increase in cash and cash equivalents | (2,286) | 8,952 |
Cash and cash equivalents at beginning of period | 16,651 | 7,699 |
Cash and cash equivalents at end of period | 14,365 | 16,651 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 1 | 28 |
Interest paid | 8 | 261 |
Non-cash investing and financing activities: | ||
Loan obtained for new equipment | $ 432 | $ 0 |
Note 1 - Business Description
Note 1 - Business Description | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | Note 1 Business Description CVD Equipment Corporation and its subsidiaries (the “Company”) is a New York corporation. Its principal business activities include designing, developing, and manufacturing a broad range of chemical vapor deposition, physical vapor transport, gas control, and other equipment and process solutions used to develop and manufacture materials and coatings for industrial applications and research. Its products are used in production environments as well as research and development centers, both academic and corporate. We conduct our business through three |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 2 - Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Liquidity At December 31, 2022, the Company had $14.4 million in cash and cash equivalents. The Company anticipates that the existing cash and cash equivalents balance together with future income from operations, collections of existing accounts receivable, revenue from its existing backlog of products as of this filing date, the sale of inventory on hand, deposits and down payments against significant orders will be adequate to meet its working capital and capital equipment requirements, and its anticipated cash needs over the next 12 months from the date of issuance of the accompanying Form 10-K. Reclassifications In addition, certain reclassifications have been made to the prior period consolidated financial statements to conform to the current period presentation. These reclassifications had no effect on net (loss) income. Principles of Consolidation The consolidated financial statements include the accounts of CVD Equipment Corporation and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s significant estimates are the accounting for certain items such as revenues on long-term contracts recognized on the input method, valuation of inventories at the lower of cost or net realizable value; allowance for doubtful accounts receivable; valuation allowances for deferred tax assets, estimated lives and impairment considerations of long-lived assets and valuation of stock-based compensation. Revenue Recognition In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606 - Revenue from Contracts with Customers (“ASC 606“), the Company records revenue in an amount that reflects the consideration to which the Company expects to be entitled in exchange for goods or services promised to its customers. Under ASC 606 , Over time The Company designs, manufactures and sells specialized chemical vapor deposition equipment through contractual agreements. These system sales require the Company to deliver functioning equipment that is generally completed within three to twelve months from commencement of order acceptance. The Company recognizes revenue from system sales over time by using an input method based on costs incurred as it depicts the Company’s progress toward satisfaction of the performance obligation. Under this method, revenue arising from fixed price contracts is recognized as work is performed based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligations. Incurred costs include all direct material and labor costs and those indirect costs related to contract performance, such as 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, and installed, 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. There were no The timing of revenue recognition, billings and collections results in receivables, unbilled receivables (referred to as contract assets) and contract liabilities on our consolidated balance sheet. Under typical payment terms for our contracts accounted for over time, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. Under ASC 606, payments received from customers in excess of revenue recognized to-date results in a contract liability. These contract liabilities are not considered to represent a significant financing component of the contract because we believe these cash advances and deposits are generally used to meet working capital demands which can be higher in the earlier stages of a contract. Also, advanced payments and deposits provide us with some measure of assurance that the customer will perform on its obligations under the contract. Contract assets include unbilled amounts typically resulting from system sales under contracts and represents revenue recognized that exceeds the amount billed to the customer. Contract liabilities include advance payments and billings in excess of revenue recognized. The Company typically receives down payments upon receipt of order and progress payments as the system is manufactured. Contract assets and contract liabilities are classified as current as these contracts in progress are expected to be substantially completed within the next twelve months. Point in time For non-system sales of products and services, revenue is recognized at the point in time when control of the promised products or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects 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, “Revenue from Contracts with Customers”. Inventories Inventories are valued at the lower of cost (determined on the first-in, first-out method) or net realizable value. Income Taxes Deferred tax assets and liabilities are determined based on the estimated future tax effects of temporary differences between the financial statements and tax bases of assets and liabilities, as measured by using the future enacted tax rates. Deferred tax expense (benefit) is the result of changes in the deferred tax assets and liabilities. The Company records a valuation allowance against deferred tax assets when it is more likely than not that future tax benefits will not be utilized based on a lack of sufficient positive evidence. Deferred tax assets and liabilities are determined based on the estimated future tax effects of temporary differences between the financial statements and tax bases of assets and liabilities, as measured by using the future enacted tax rates. Deferred tax expense (benefit) is the result of changes in the deferred tax assets and liabilities. The Company records a valuation allowance against deferred tax assets when it is more likely than not that future tax benefits will not be utilized based on a lack of sufficient positive evidence. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more likely than not the tax position will be sustained on examination by taxing authorities based on the technical merits of the position and (2) for those positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy for global intangible low taxed income (“GILTI”) is to treat such amounts as a period cost when incurred. Impairment of Long-Lived Assets and Intangibles Long-lived assets consist primarily of property, plant, and equipment. Intangibles consist of patents, copyrights and intellectual property, licensing agreements and certifications. Long-lived assets are reviewed for impairment whenever events or circumstances indicate their carrying value may not be recoverable. When such events or circumstances arise, an estimate of the future undiscounted cash flows produced by the asset, or the appropriate grouping of assets, is compared to the asset’s carrying value to determine if impairment exists pursuant to the requirements of the FASB ASC 360-10-35, “Impairment or Disposal of Long-Lived Assets.” If the asset is determined to be impaired, the impairment loss is measured on the excess of its carrying value over its fair value. Assets to be disposed of are reported at the lower of their carrying value or net realizable value. Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is determined on a straight-line basis for buildings and building improvements over 5 to 39 years and for machinery and equipment over 5 to 8 years. Depreciation and amortization of assets used in manufacturing are recorded in cost of revenue. Depreciation and amortization of all other assets are recorded as operating expenses. Intangible Assets The cost of intangible assets is being amortized on a straight-line basis over their estimated initial useful lives which ranged from 5 to 20 years. Research and development Research and development costs are expensed as incurred and include charges for the development of new technology and transition of existing technology into new products. Product Warranty The Company typically provides standard warranty coverage on its systems for one fifteen Earnings Per Share Basic earnings per common share is computed by dividing the net income by the weighted average number of shares of common stock outstanding during each period. When applicable, diluted earnings per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be adjusted upon exercise of common stock options, unvested restricted shares and warrants. Potential common shares issued are calculated using the treasury stock method, which recognizes the use of proceeds that could be obtained upon the exercise of options and warrants in computing diluted earnings per share. It assumes that any proceeds would be used to purchase common stock at the average market price of the common stock during the period. Cash and Cash Equivalents The Company had cash and cash equivalents of $14.4 million and $16.7 million at December 31, 2022 and 2021, respectively. The Company invests excess cash in treasury bills, certificates of deposit or deposit accounts, all with maturities of less than three months. Cash equivalents were $11.7 million and $7.0 million at December 31, 2022 and 2021, respectively. The Company places most of its temporary cash investments with financial institutions, which from time to time may exceed the Federal Deposit Insurance Corporation limit. The amount in excess of the limit at December 31, 2022 and 2021 was $1.5 million and $8.6 million respectively. The Company’s cash in our Denmark subsidiary exceeded the government guarantee limit by approximately $0.5 million and $0.4 million at December 31, 2022 and 2021, respectively. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. The Company places its cash equivalents with financial institutions and invests its excess cash primarily in treasury bills, certificates of deposit or deposit accounts. The Company has established guidelines relative to credit ratings and maturities that seek to maintain stability and liquidity. The Company routinely assesses the financial strength of its customers and maintains allowances for anticipated losses based upon historical experience. 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 has accounts receivables from certain customers that exceed 10%. As of December 31, 2022, the accounts receivable balance includes amounts from two customers that totals 66% of total accounts receivable, and as of December 31, 2021, two customers totaled 50% of total accounts receivable. Accounts receivable is presented net of an allowance for doubtful accounts of $36,000 and $59,000 as of December 31, 2022 and 2021, respectively. The allowance is based on historical experience and management’s evaluation of the collectability of accounts receivable. Management believes the allowance is adequate. However, future estimates may fluctuate based on changes in economic and customer conditions. The Company does not require collateral from its customers. Sales Concentrations Revenue to a single customer in any one year can exceed 10% of our total sales. There was one customer in the year ended December 31, 2022 that represented 29.2% of our revenues, while there were no customers that exceed 10% of total sales in the year ended December 31, 2021. The loss of a large customer could have a material adverse effect on the Company’s business and financial condition. Export sales to customers represented approximately 17% and 26% of sales for the years ended December 31, 2022 and 2021, respectively. Export sales in both 2022 and 2021 were primarily to customers in Europe and Asia. All contracts except those entered into by the Company’s subsidiary in Denmark are denominated in U.S. dollars. The Company has not entered into any foreign exchange contracts. Supplier Risk The Company relies on suppliers to manufacture many of the components and subassemblies used in its products. Quality or performance failures of the Company’s products or changes in its manufacturers’ financial or business condition could disrupt the Company’s ability to supply quality products to its customers and thereby have a material and adverse effect on its business and operating results. Some of the components and technologies used in the Company’s products are purchased and licensed from a single source or a limited number of sources. The loss of any of these suppliers may cause the Company to incur additional transition costs, result in delays in the manufacturing and delivery of its products or cause it to carry excess or obsolete inventory and could cause it to redesign its products. Fair Value of Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payable, contract assets and contract liabilities approximate fair value due to the relatively short-term maturity of these instruments. The carrying value of long-term debt approximates fair value based on prevailing borrowing rates currently available for loans with similar terms and maturities. Stock-Based Compensation The Company records stock-based compensation in accordance with the provisions set forth in ASC 718, “Stock Compensation”. ASC 718 requires companies to recognize the cost of employee services received in exchange for awards of equity instruments based upon the grant date fair value of those awards over the vesting period. The Company uses the Black-Scholes option-pricing model to compute the estimated fair value of option awards and includes assumptions regarding expected volatility, expected option term, dividend yields and risk-free interest rates. Shipping and Handling It is the Company’s policy to include freight charges billed to customers in total revenue. The amount included in revenue was $87,000 and $30,000 for the years ended December 31, 2022 and 2021, respectively. Recently Issued Accounting Standards In June 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments Credit Losses (Topic 326) The Company believes there is no additional new accounting guidance adopted, but not yet effective that is relevant to the readers of our financial statements. However, there are numerous new proposals under development which, if and when enacted, may have a significant impact on our financial reporting. |
Note 3 - Revenue
Note 3 - Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 3 Revenue The following table represents a disaggregation of revenue from contracts by end markets for the years ended December 31, 2022 and 2021 (in thousands): Year Ended December 31, 2022 Over time Point in time Total Energy $ 9,094 $ 58 $ 9,152 Aerospace 95 1,527 1,622 Industrial 5,961 4,856 10,817 Research 2,807 1,415 4,222 Total $ 17,957 $ 7,856 $ 25,813 Year Ended December 31, 2021 Over time Point in time Total Energy $ 1,141 $ - $ 1,141 Aerospace 386 2,214 2,600 Industrial 4,989 3,863 8,852 Research 2,294 1,560 3,854 Total $ 8,810 $ 7,637 $ 16,447 The energy market includes customers involved in the manufacture of silicon carbide wafers and batteries. Aerospace market includes customers that manufacture aircraft engines. Industrial end market consists of various end customers in diverse industries. Research market principally represents customers that are universities and other research institutions. The Company has unrecognized contract revenue of approximately $16.2 million at December 31, 2022, which it expects to recognize as revenue within the next twelve months. 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 limited to (i) build accelerations or delays, (ii) product cost forecast changes, (iii) cost related change orders or add-ons, or (iv) changes in other information used to estimate costs. Changes in estimates may have a material effect on the Company’s consolidated financial position and results of operations. Contract assets and contract liabilities on input method type contracts in progress are summarized at December 31 as follows (in thousands): 2022 2021 Costs incurred on contracts in progress $ 14,390 $ 7,419 Estimated earnings 10,926 5,071 25,316 12,490 Billings to date (26,925 ) (11,409 ) (1,609 ) 1,081 Deferred revenue related to non-systems contracts (263 ) (193 ) $ (1,872 ) $ 888 Included in accompanying consolidated balance sheets under the following captions (in thousands): Contract assets $ 2,170 $ 2,538 Contract liabilities $ 4,042 $ 1,650 Of the contract liability balances at December 31, 2021 and December 31, 2020, $1.7 million and $0.8 million was recognized as revenue during the years ended December 31, 2022 and 2021, respectively. |
Note 4 - Inventories
Note 4 - Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 4 - Inventories Inventories as of December 31 consist of (in thousands): 2022 2021 Raw materials $ 2,165 $ 1,031 Work-in-process 373 194 Total $ 2,538 $ 1,225 |
Note 5 - Property, Plant and Eq
Note 5 - Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 5 Property, Plant and Equipment Major classes of property, plant and equipment consist of the following as of December 31 (in thousands): 2022 2021 Land $ 2,220 $ 2,220 Buildings and improvements 12,530 12,477 Machinery and equipment 7,810 6,879 Construction in progress 12 127 Totals at cost 22,572 21,703 Less: accumulated depreciation (9,976 ) (9,441 ) Property, plant and equipment, net $ 12,596 $ 12,261 Machinery and equipment also includes furniture and fixtures and software. Depreciation expense was $0.8 million and $0.6 million for the years ended December 31, 2022 and 2021, respectively. On March 29, 2021, the Company entered into an agreement with a third party for the sale of its facility located at 555 S. Technology Drive in Central Islip, New York (the “ 555 , Management had determined the 555 Building was not needed for business operations, and the remaining elements of the CVD Materials business located in the 555 Building were consolidated into the 355 Building. |
Note 6 - Intangible Assets
Note 6 - Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 6 Intangible Assets Intangible assets consisted of the following (in thousands): December 31, 2022 Cost Accumulated Amortization Net Patents $ 565 $ 446 $ 119 Certifications 54 54 - Totals $ 619 $ 500 $ 119 December 31, 2021 Cost Accumulated Amortization Net Patents $ 602 $ 422 $ 180 Certifications 54 51 3 Totals $ 656 $ 473 $ 183 Amortization expense was $0.1 million in both years ended December 31, 2022 and 2021. The estimated amortization expense related to intangible assets for each of the five succeeding fiscal years and thereafter as of December 31, 2022 is as follows (in thousands): Year Ended 2023 $ 17 2024 13 2025 13 2026 5 2027 5 Thereafter 66 Total $ 119 |
Note 7 - Accrued Expenses
Note 7 - Accrued Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | Note 7 Accrued expenses Accrued expenses consist of the following as of December 31 (in thousands): 2022 2021 Accrued wages and benefits $ 995 $ 577 Accrued vacation 905 749 Other 691 433 Total accrued expenses $ 2,591 $ 1,759 |
Note 8 - Long-term Debt
Note 8 - Long-term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | Note 8 Long-term Debt Long-term debt as of December 31 consist of the following (in thousands, except percentages and amounts in notes): 2022 2021 Equipment loan payable in monthly repayments of $8 including interest at 6% per annum (1) $ 426 - Mortgage loan secured by building payable in monthly repayments of $25 plus interest at LIBOR plus 1.75% or bank’s prime rate minus 0.5% (2) - 1,766 Total long-term debt 426 1,766 Less: current maturities 77 1,766 Long-term debt, net of current maturities $ 349 $ - Future maturities of long-term debt as of December 31, 2022 are as follows (in thousands): 2023 $ 77 2024 81 2025 87 2026 92 2027 89 Total $ 426 (1) In September 2022, the Company entered into a loan agreement to fund the acquisition of machinery equipment. The loan amount of $432,000 is payable in 60 equal monthly installments of $8,352 and secured by equipment. The interest rate is 6%. (2) The Company had a loan agreement with a bank that was secured by a mortgage against its Central Islip, New York facility. The loan was payable in 120 consecutive equal monthly installments of $25,000 in principal plus interest and a final balloon payment due upon maturity on March 1, 2022. The interest rate, at the Company’s option, was the variable rate of LIBOR plus 1.75% or the bank’s prime less 0.5% (1.86% at December 31, 2021). This loan was satisfied on March 1, 2022. In November 2017, the Company purchased the premises located at 555 North Research Place, Central Islip, New York. The purchase price of the building was $13.9 million exclusive of closing costs. The Company entered into a loan agreement with a bank in the amount of $10.4 million to finance a portion of the purchase price. The loan was payable in 60 consecutive equal monthly installments of $62,481 including interest at the fixed rate of 3.92%, and a final balloon payment upon maturity in December 2022. On July 26, 2021, the Company closed on the sale of the 555 Building and satisfied the loan (Note 5). On April 2020, the Company entered into a loan agreement with a bank pursuant to which the Company was granted a loan (the “PPP loan”) in the principal amount of $2.4 million, pursuant to the Paycheck Protection Program under Division A, Title I of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which was enacted by the U.S. Congress in March 2020. The PPP loan was to mature on April 21, 2022 and bore interest at a rate of 1% per annum. Under the terms of the PPP loan program, all or a portion of the PPP loan could be forgiven, based upon payments made in the first 24 weeks following receipt of the proceeds, related to payroll costs, continued payment of group health care benefits, utilities and mortgage interest on other debt obligations incurred before February 15, 2020. The Company filed an application for forgiveness in April 2021 and in June 2021 the Company received a notification from its bank that the U.S. Small Business Administration had approved the Company’s PPP loan forgiveness application and remitted payment to the lender for the entire principal amount of the PPP Loan and accrued interest. The Company has recognized a gain on debt extinguishment of $2.4 million in the year ended December 31, 2021. |
Note 9 - Earnings Per Share
Note 9 - Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 9 Earnings per Share The calculation of basic and diluted weighted average common shares outstanding as of December 31 is as follows (in thousands): 2022 2021 Basic weighted average shares outstanding 6,734 6,688 Effect of potentially dilutive share-based awards - 16 Diluted weighted average shares outstanding 6,734 6,704 At December 31, 2022, stock options to purchase 673,000 shares of common stock were outstanding and 265,500 were exercisable. At December 31, 2021, stock options to purchase 618,500 shares of common stock were outstanding and 265,000 were exercisable. At December 31, 2022 and 2021, 673,000 and 287,000, stock options, respectively, were not included in the computation of diluted earnings per share because their effect was antidilutive. |
Note 10 - Income Taxes
Note 10 - Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 10 Income Taxes The expense/(benefit) for income taxes for the years ended December 31 includes the following (in thousands): 2022 2021 Current: Federal $ 1 $ 15 State 3 13 Total current tax provision 4 28 Deferred: Federal - - State - - Total deferred tax provision - - Income tax expense $ 4 $ 28 The reconciliation of the federal statutory income tax rate to our effective tax rate for the years ended December 31 is as follows (in thousands): 2022 2021 Expected provision at federal statutory tax rate at 21% $ (46 ) $ 1,003 PPP loan forgiveness - (513 ) Decrease in valuation allowance (33 ) (346 ) State and local taxes 84 6 Foreign tax rate differential 4 (116 ) US taxation of foreign operations 80 - Federal research and development credits (55 ) (57 ) Change in tax rates 10 - Non-deductible expenses 62 51 Other (102 ) - Income tax expense $ 4 $ 28 The tax effects of temporary differences giving rise to significant portions of the net deferred taxes as of December 31 are as follows (in thousands): 2022 2021 Deferred income tax assets: Net operating loss carryforwards $ 482 $ 808 R&D tax credit carryforwards 1,723 1,672 Impairment charges - 723 Compensation costs 10 149 Vacation accrual 174 141 Intangible assets 27 - Capitalized research and development 356 - Other items 263 114 Deferred income tax assets 3,035 3,607 Less: valuation allowance (2,957 ) (2,990 ) Deferred income tax assets, net of valuation allowance 78 617 Deferred incomes tax liability: Property, plant and equipment (11 ) (617 ) Prepaid expenses (67 ) - Deferred income tax asset, net $ - $ - In assessing the Company’s ability to recover its deferred tax assets, the Company evaluated whether it is more likely than not that some portion or the entire deferred tax asset will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible and/or net operating losses can be utilized. The Company considered all positive and negative evidence when determining the amount of the net deferred tax assets that are more likely than not to be realized. This evidence includes, but is not limited to, historical earnings, scheduled reversal of taxable temporary differences, tax planning strategies and projected future taxable income. A significant piece of objective negative evidence evaluated was cumulative loss incurred over the three-year period ended December 31, 2022. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. Based on the weight of available evidence, the Company determined that its U.S. deferred tax assets are not realizable on a more-likely-than-not basis and has recorded a valuation allowance against its net U.S. deferred tax assets. The Company’s valuation allowance decreased by $33,000 during 2022. The Company will continue to evaluate its deferred tax assets to determine whether any changes in circumstances could affect the realization of their future benefit. If it is determined in future periods that portions of the Company’s deferred income tax assets satisfy the realization standards, the valuation allowance will be reduced accordingly. At December 31, 2022, the Company had $1.4 million of U.S. federal net operating loss carryforwards. These net operating losses have an indefinite carryforward period but are only available to offset 80% of future taxable income. The Company also has $1.7 million of federal research and development tax credits which expire in varying amounts in tax years 2028 through 2042. The Company has Denmark net operating losses of $0.7 million which have an indefinite carryforward period. In connection with the CARES Act, the Company was able to carryback net operating losses generated in 2020 to its 2018 tax year. As of December 31, 2021, the Company has an income tax receivable of $0.7M which was received during the year ended December 31, 2022. The Company applies the applicable authoritative guidance which prescribes a comprehensive model for the manner in which a company should recognize, measure, present and disclose in its financial statements all material uncertain tax positions that the Company has taken or expects to take on a tax return. As of December 31, 2022 and 2021, the Company had no uncertain tax positions. The Company does not expect that its unrecognized tax benefits will significantly increase or decrease within twelve months. The Company files federal income tax returns and income tax returns in various state and local tax jurisdictions and in Denmark. The federal tax years open to examination are 2019 2018 The Inflation Reduction Act (“IRA”) and Chips and Science Act (“CHIPS Act”) were both enacted in August 2022. The IRA introduced new provisions including a 15% corporate alternative minimum tax for certain large corporations that have at least an average of $1 billion adjusted financial statement income over a consecutive three-tax-year period and a 1% excise tax surcharge on stock repurchases. The CHIPS Act provides a variety of incentives associated with investments in domestic semiconductor manufacturing and related activities. Both the IRA and CHIPS Act are applicable for tax years beginning after December 31, 2022 and had no impact to the Company’s consolidated financial statements for the year ended December 31, 2022. |
Note 11 - Employee Retention Cr
Note 11 - Employee Retention Credit | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Employee Retention Credit [Text Block] | Note 11 Employee Retention Credit During 2022, the Company conducted an analysis as to whether it was entitled to employee retention credits (“ERC”) under the CARES Act as amended by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 and the American Plan Act of 2021. Based on the analysis, the Company determined that it was entitled to an ERC of approximately $1.5 million related to payroll paid in the first and third quarters of 2021 under the applicable Internal Revenue Service regulations related to ERCs. As ERCs are not within the scope of ASC 740, Income Taxes Accounting for Government Grants and Disclosure of Government Assistance. |
Note 12 - Stock-based Compensat
Note 12 - Stock-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note 12 Stock-Based Compensation A summary of the Company’s Share Incentive Plans are as follows: 2007 Share Incentive Plan On December 12, 2007, shareholders approved the Company’s 2007 Share Incentive Plan (“2017 Incentive Plan”), in connection therewith, 750,000 shares of the Company’s common stock are reserved for issuance pursuant to options or restricted stock that may be granted under the 2017 Incentive Plan through December 12, 2017. The Plan expired in December 2017. As of December 31, 2022, there were 120,000 options outstanding under this plan. 2016 Share Incentive Plan On December 9, 2016, shareholders approved the Company’s 2016 Share Incentive Plan (“2016 Incentive Plan”), in connection therewith, 750,000 shares of the Company’s common stock are reserved for issuance pursuant to options or restricted stock that may be granted under the 2016 Incentive Plan through December 9, 2026. As of December 31, 2022, there were 477,000 options outstanding under this plan. 2022 Share Incentive Plan On July 14, 2022, shareholders approved the Company’s 2022 Share Incentive Plan (“2022 Incentive Plan”), in connection therewith, 515,000 shares of the Company’s common stock are reserved for issuance pursuant to options or restricted stock that may be granted under the 2022 Incentive Plan through July 14, 2032. As of December 31, 2022, there were 76,000 options outstanding under this plan. Under the 2016 and 2022 Share Incentive Plans, the purchase price of the common stock under each option plan shall be determined by the Committee, provided, however, that such purchase price shall not be less than the fair market value of the shares on the date such option is granted. The stock options generally expire seven ten As of December 31, 2022 , The Company recorded stock-based compensation of $0.4 million and $0.3 million for the years ended December 31, 2022 and 2021, respectively, that were included in the following line items in our Consolidated Statements of Operations (in thousands): 2022 2021 Cost of revenue $ 34 $ 30 Research and development 57 7 Selling 27 10 General and administrative 317 268 Total stock-based compensation expense $ 435 $ 315 Stock-based compensation expense in both years included approximately $0.16 million related to restricted stock awards pursuant to a Director Compensation plan discussed below. The Company recognizes forfeitures of stock awards as they occur. For the year ended December 31, 2022, the Company granted 198,500 stock options, vesting 25% per year over four ten-year Stock price $ 5.03 Exercise price $ 5.03 Dividend yield 0 % Expected volatility 68 % Risk-free interest rate 3.09 % Expected life (in years) 6 The Company has 673,000 of outstanding stock options under the three plans at December 31, 2022. The following table summarizes stock options awards for the years ended December 31, 2022 and 2021: Awards (in Shares) Weighted Average Exercise Price Outstanding at December 31, 2020 417,000 $ 11.26 Granted 333,500 4.13 Expired / cancelled (132,000 ) 11.73 Exercised - - Outstanding at December 31, 2021 618,500 7.32 Granted 198,500 5.04 Expired / cancelled (144,000 ) 11.72 Exercised - - Outstanding at December 31, 2022 673,000 $ 5.70 The following table summarizes information about the outstanding and exercisable options at December 31, 2022: Options Outstanding Options Exercisable Weighted Weighted Weighted Average Average Average Exercise Number Remaining Exercise Intrinsic Number Exercise Intrinsic Price Range Outstanding Contractual Price Value Exercisable Price Value $ 4.00 - 7.00 533,000 8.6 $ 4.53 $ 492,765 125,500 $ 4.44 $ 111,375 $ 7.01 - 10.00 20,000 5.3 $ 8.07 $ - 20,000 $ 8.07 $ - $ 10.01 - 12.00 120,000 4.2 $ 10.52 $ - 120,000 $ 10.52 $ - As of December 31, 2022, there was $1.1 million of unrecognized compensation costs related to stock options expected to be recognized over a weighted average period of 2.9 years. Restricted Stock Awards The following table summarizes restricted stock awards for the years ended December 31, 2022 and 2021: Weighted Average Grant Shares of Date Fair Restricted Stock Value Unvested outstanding at January 1, 2021 - $ - Granted 42,800 4.65 Vested (36,000 ) 4.60 Forfeited or cancelled (6,800 ) 4.90 Unvested outstanding at December 31, 2021 - - Granted 32,000 5.02 Vested (32,000 ) 5.02 Forfeited or cancelled - - Unvested outstanding at December 31, 2022 - $ - Pursuant to the Director Compensation plan approved on October 11, 2021 , During the year The fair value of the restricted stock awards is recorded as stock-based compensation expense over the vesting period and totaled $0.16 million in both years ending December 31, 2022 and 2021. Restricted Stock Units The following table summarizes restricted stock units for the years ended December 31, 2022 and December 31, 2021: Weighted Shares of Average Grant Restricted Date Fair Stock Units Value Unvested outstanding at January 1, 2021 8,750 $ 5.00 Granted - - Vested (3,250 ) 5.29 Forfeited or cancelled - - Unvested outstanding at December 31, 2021 5,500 4.82 Granted - - Vested (5,500 ) 4.82 Forfeited or cancelled - - - Unvested outstanding at December 31, 2022 - $ - The total intrinsic value related to fully vested restricted stock units was $22,745 and $38,000 respectively for the years ended December 31, 2022 and 2021. |
Note 13 - Defined Contribution
Note 13 - Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | Note 13 Defined Contribution Plan The Company maintains a 401(k) Plan for the benefit of all eligible employees. All employees as of the effective date of the 401(k) Plan became eligible. An employee is eligible to become a participant after three months of continuous service. Participants may elect to contribute from their compensation any amount up to the maximum deferral allowed by the Internal Revenue Code. Employer contributions are optional. Effective July 1, 2022, the Company implemented a matching contribution of 50% of an employee’s contributions up to 6% of their compensation. The Company recorded compensation expense of $89,622 during the year ended December 31, 2022 for matching contributions to the 401(k) plan. No |
Note 14 - Segment Reporting
Note 14 - Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 14 Segment Reporting The Company operates through three The Company’s corporate administration activities are reported in the “Corporate” column. These activities primarily include 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. Elimination entries included in the “Eliminations” column represent intersegment revenues and cost of revenues that are eliminated in consolidation. Intersegment sales for the year ended December 31, 2022 and 2021 by the SDC segment to the CVD Equipment segment were $573,000 and $346,000, respectively. The following table presents certain information regarding the Company’s segments as of and for the years ended December 31, 2022 and December 31, 2021 (in thousands, including amount in notes): 2022 CVD Equipment SDC CVD Materials Corporate Eliminations Consolidated Assets $ 25,287 $ 9,679 $ 2,946 $ - $ - $ 37,912 Revenue $ 16,674 $ 6,541 $ 3,171 $ - $ (573 ) $ 25,813 Operating (loss) income (1,430 ) 1,546 1,050 (2,989 ) - (1,823 ) Pretax (loss) income (1) (156 ) 1,849 1,076 (2,989 ) - (220 ) Depreciation and amortization $ 652 $ 49 $ 166 $ - $ - $ 867 Purchases of property, plant & equipment $ 623 $ 3 $ 39 $ - $ - $ 665 2021 CVD Equipment SDC CVD Materials Corporate Eliminations Consolidated Assets $ 26,360 $ 7,409 $ 1,755 $ - $ - $ 35,524 Revenue $ 8,590 $ 4,849 $ 3,354 $ - $ (346 ) $ 16,447 Operating (loss) income (3,454 ) 922 1,053 (3,185 ) - (4,664 ) Pretax (loss) income (1,055 ) (2) 922 8,093 (3) (3,185 ) - 4,775 Depreciation and amortization $ 533 $ 52 $ 157 $ - $ - $ 742 Purchases of property, plant & equipment $ 106 $ 31 $ 99 $ - $ - $ 236 (1) Includes other income related to ERCs of $1,103, $303 and $123 for the CVD, SDC and Materials segments, respectively. (2) Includes $2,443 from the gain on debt extinguishment related to the forgiveness of the PPP loan. (3) Includes $6,894 from the gain on the sale of building. |
Note 15 - Risks and Uncertainti
Note 15 - Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Risks and Uncertainties [Text Block] | Note 15 Risks and Uncertainties The Company currently operates in a challenging economic environment as the global economy continues to confront the remaining impacts from the pandemic, geopolitical conflicts, inflationary pressures, and adverse supply chain disruptions. The specific impacts on the Company have included: ● Significant geopolitical developments across Europe and Asia (including the war in Ukraine) have and may continue to restrict the Company’s ability to procure raw materials and components such as nickel and integrated circuits, as well as impact the Company’s ability to sell its products into China, Russia and other Eastern European and Asian regions. ● Supply chain disruptions have led to much longer lead times to acquire raw materials for production and has led to inflationary pressures in both materials and labor. These supply chain disruptions have impacted the Company’s ability to recognize revenue more timely as it delays the Company’s manufacturing processes. ● The pandemic’s impact on long distance air travel resulted in a reduction in orders for the Company’s aerospace equipment products that adversely affected the Company’s revenues since the start of the pandemic. While management has initiated actions to mitigate the potential negative impacts to its revenue and profitability, the Company is unable to predict the impact that the above uncertainties may have on its future results of operations and cash flows. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation |
Liquidity [Policy Text Block] | Liquidity |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassifications |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition , Over time no Point in time |
Inventory, Policy [Policy Text Block] | Inventories |
Income Tax, Policy [Policy Text Block] | Income Taxes |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets and Intangibles |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible Assets |
Research and Development Expense, Policy [Policy Text Block] | Research and development |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranty one fifteen |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk |
Sales Concentrations, Policy [Policy Text Block] | Sales Concentrations |
Supplier Risk [Policy Text Block] | Supplier Risk |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments |
Share-Based Payment Arrangement [Policy Text Block] | Stock-Based Compensation |
Shipping and Handling, Policy [Policy Text Block] | Shipping and Handling |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards Financial Instruments Credit Losses (Topic 326) |
Note 3 - Revenue (Tables)
Note 3 - Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Year Ended December 31, 2022 Over time Point in time Total Energy $ 9,094 $ 58 $ 9,152 Aerospace 95 1,527 1,622 Industrial 5,961 4,856 10,817 Research 2,807 1,415 4,222 Total $ 17,957 $ 7,856 $ 25,813 Year Ended December 31, 2021 Over time Point in time Total Energy $ 1,141 $ - $ 1,141 Aerospace 386 2,214 2,600 Industrial 4,989 3,863 8,852 Research 2,294 1,560 3,854 Total $ 8,810 $ 7,637 $ 16,447 |
Schedule Of Cost And Estimated Earnings In Excess Of Billings [Table Text Block] | 2022 2021 Costs incurred on contracts in progress $ 14,390 $ 7,419 Estimated earnings 10,926 5,071 25,316 12,490 Billings to date (26,925 ) (11,409 ) (1,609 ) 1,081 Deferred revenue related to non-systems contracts (263 ) (193 ) $ (1,872 ) $ 888 Included in accompanying consolidated balance sheets under the following captions (in thousands): Contract assets $ 2,170 $ 2,538 Contract liabilities $ 4,042 $ 1,650 |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2022 2021 Raw materials $ 2,165 $ 1,031 Work-in-process 373 194 Total $ 2,538 $ 1,225 |
Note 5 - Property, Plant and _2
Note 5 - Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | 2022 2021 Land $ 2,220 $ 2,220 Buildings and improvements 12,530 12,477 Machinery and equipment 7,810 6,879 Construction in progress 12 127 Totals at cost 22,572 21,703 Less: accumulated depreciation (9,976 ) (9,441 ) Property, plant and equipment, net $ 12,596 $ 12,261 |
Note 6 - Intangible Assets (Tab
Note 6 - Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | December 31, 2022 Cost Accumulated Amortization Net Patents $ 565 $ 446 $ 119 Certifications 54 54 - Totals $ 619 $ 500 $ 119 December 31, 2021 Cost Accumulated Amortization Net Patents $ 602 $ 422 $ 180 Certifications 54 51 3 Totals $ 656 $ 473 $ 183 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year Ended 2023 $ 17 2024 13 2025 13 2026 5 2027 5 Thereafter 66 Total $ 119 |
Note 7 - Accrued Expenses (Tabl
Note 7 - Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | 2022 2021 Accrued wages and benefits $ 995 $ 577 Accrued vacation 905 749 Other 691 433 Total accrued expenses $ 2,591 $ 1,759 |
Note 8 - Long-term Debt (Tables
Note 8 - Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Long-Term Debt Instruments [Table Text Block] | 2022 2021 Equipment loan payable in monthly repayments of $8 including interest at 6% per annum (1) $ 426 - Mortgage loan secured by building payable in monthly repayments of $25 plus interest at LIBOR plus 1.75% or bank’s prime rate minus 0.5% (2) - 1,766 Total long-term debt 426 1,766 Less: current maturities 77 1,766 Long-term debt, net of current maturities $ 349 $ - |
Schedule of Maturities of Long-Term Debt [Table Text Block] | 2023 $ 77 2024 81 2025 87 2026 92 2027 89 Total $ 426 |
Note 9 - Earnings Per Share (Ta
Note 9 - Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2022 2021 Basic weighted average shares outstanding 6,734 6,688 Effect of potentially dilutive share-based awards - 16 Diluted weighted average shares outstanding 6,734 6,704 |
Note 10 - Income Taxes (Tables)
Note 10 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2022 2021 Current: Federal $ 1 $ 15 State 3 13 Total current tax provision 4 28 Deferred: Federal - - State - - Total deferred tax provision - - Income tax expense $ 4 $ 28 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2022 2021 Expected provision at federal statutory tax rate at 21% $ (46 ) $ 1,003 PPP loan forgiveness - (513 ) Decrease in valuation allowance (33 ) (346 ) State and local taxes 84 6 Foreign tax rate differential 4 (116 ) US taxation of foreign operations 80 - Federal research and development credits (55 ) (57 ) Change in tax rates 10 - Non-deductible expenses 62 51 Other (102 ) - Income tax expense $ 4 $ 28 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2022 2021 Deferred income tax assets: Net operating loss carryforwards $ 482 $ 808 R&D tax credit carryforwards 1,723 1,672 Impairment charges - 723 Compensation costs 10 149 Vacation accrual 174 141 Intangible assets 27 - Capitalized research and development 356 - Other items 263 114 Deferred income tax assets 3,035 3,607 Less: valuation allowance (2,957 ) (2,990 ) Deferred income tax assets, net of valuation allowance 78 617 Deferred incomes tax liability: Property, plant and equipment (11 ) (617 ) Prepaid expenses (67 ) - Deferred income tax asset, net $ - $ - |
Note 12 - Stock-based Compens_2
Note 12 - Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | 2022 2021 Cost of revenue $ 34 $ 30 Research and development 57 7 Selling 27 10 General and administrative 317 268 Total stock-based compensation expense $ 435 $ 315 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Stock price $ 5.03 Exercise price $ 5.03 Dividend yield 0 % Expected volatility 68 % Risk-free interest rate 3.09 % Expected life (in years) 6 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Awards (in Shares) Weighted Average Exercise Price Outstanding at December 31, 2020 417,000 $ 11.26 Granted 333,500 4.13 Expired / cancelled (132,000 ) 11.73 Exercised - - Outstanding at December 31, 2021 618,500 7.32 Granted 198,500 5.04 Expired / cancelled (144,000 ) 11.72 Exercised - - Outstanding at December 31, 2022 673,000 $ 5.70 |
Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | Options Outstanding Options Exercisable Weighted Weighted Weighted Average Average Average Exercise Number Remaining Exercise Intrinsic Number Exercise Intrinsic Price Range Outstanding Contractual Price Value Exercisable Price Value $ 4.00 - 7.00 533,000 8.6 $ 4.53 $ 492,765 125,500 $ 4.44 $ 111,375 $ 7.01 - 10.00 20,000 5.3 $ 8.07 $ - 20,000 $ 8.07 $ - $ 10.01 - 12.00 120,000 4.2 $ 10.52 $ - 120,000 $ 10.52 $ - |
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Weighted Average Grant Shares of Date Fair Restricted Stock Value Unvested outstanding at January 1, 2021 - $ - Granted 42,800 4.65 Vested (36,000 ) 4.60 Forfeited or cancelled (6,800 ) 4.90 Unvested outstanding at December 31, 2021 - - Granted 32,000 5.02 Vested (32,000 ) 5.02 Forfeited or cancelled - - Unvested outstanding at December 31, 2022 - $ - Weighted Shares of Average Grant Restricted Date Fair Stock Units Value Unvested outstanding at January 1, 2021 8,750 $ 5.00 Granted - - Vested (3,250 ) 5.29 Forfeited or cancelled - - Unvested outstanding at December 31, 2021 5,500 4.82 Granted - - Vested (5,500 ) 4.82 Forfeited or cancelled - - - Unvested outstanding at December 31, 2022 - $ - |
Note 14 - Segment Reporting (Ta
Note 14 - Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 2022 CVD Equipment SDC CVD Materials Corporate Eliminations Consolidated Assets $ 25,287 $ 9,679 $ 2,946 $ - $ - $ 37,912 Revenue $ 16,674 $ 6,541 $ 3,171 $ - $ (573 ) $ 25,813 Operating (loss) income (1,430 ) 1,546 1,050 (2,989 ) - (1,823 ) Pretax (loss) income (1) (156 ) 1,849 1,076 (2,989 ) - (220 ) Depreciation and amortization $ 652 $ 49 $ 166 $ - $ - $ 867 Purchases of property, plant & equipment $ 623 $ 3 $ 39 $ - $ - $ 665 2021 CVD Equipment SDC CVD Materials Corporate Eliminations Consolidated Assets $ 26,360 $ 7,409 $ 1,755 $ - $ - $ 35,524 Revenue $ 8,590 $ 4,849 $ 3,354 $ - $ (346 ) $ 16,447 Operating (loss) income (3,454 ) 922 1,053 (3,185 ) - (4,664 ) Pretax (loss) income (1,055 ) (2) 922 8,093 (3) (3,185 ) - 4,775 Depreciation and amortization $ 533 $ 52 $ 157 $ - $ - $ 742 Purchases of property, plant & equipment $ 106 $ 31 $ 99 $ - $ - $ 236 |
Note 1 - Business Description (
Note 1 - Business Description (Details Textual) | 12 Months Ended |
Dec. 31, 2022 | |
Number of Operating Segments | 3 |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash and Cash Equivalents, at Carrying Value, Total | $ 14,365,000 | $ 16,651,000 |
Capitalized Contract Cost, Impairment Loss | $ 0 | 0 |
Standard Product Warranty, Period From Final Acceptance | 1 year | |
Standard Product Warranty, Period From Date of Shipment | 15 months | |
Cash Equivalents, at Carrying Value, Total | $ 11,700,000 | 7,000,000 |
Cash, Uninsured Amount | 1,500,000 | 8,600,000 |
Accounts Receivable, Allowance for Credit Loss, Current | 36,000 | 59,000 |
Cargo and Freight [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 87,000 | $ 30,000 |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Two Customers [Member] | ||
Concentration Risk, Percentage | 66% | 50% |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | One Customer [Member] | ||
Concentration Risk, Percentage | 29.20% | |
Customer Concentration Risk [Member] | Export Sales [Member] | Geographic Distribution, Foreign [Member] | ||
Concentration Risk, Percentage | 17% | 26% |
DENMARK | ||
Cash, Uninsured Amount | $ 500,000 | $ 400,000 |
Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | |
Building and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 39 years | |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 8 years |
Note 3 - Revenue (Details Textu
Note 3 - Revenue (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Contract with Customer, Cumulative Catch-up Adjustment to Revenue, Change in Estimate of Transaction Price and Input Costs | $ 16.2 | |
Contract with Customer, Liability, Revenue Recognized | $ 1.7 | $ 0.8 |
Note 3 - Revenue - Disaggregati
Note 3 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net Revenue | $ 25,813 | $ 16,447 |
Energy, Storage and Transmission [Member] | ||
Net Revenue | 9,152 | 1,141 |
Aerospace [Member] | ||
Net Revenue | 1,622 | 2,600 |
Industrial [Member] | ||
Net Revenue | 10,817 | 8,852 |
Research [Member] | ||
Net Revenue | 4,222 | 3,854 |
Transferred over Time [Member] | ||
Net Revenue | 17,957 | 8,810 |
Transferred over Time [Member] | Energy, Storage and Transmission [Member] | ||
Net Revenue | 9,094 | 1,141 |
Transferred over Time [Member] | Aerospace [Member] | ||
Net Revenue | 95 | 386 |
Transferred over Time [Member] | Industrial [Member] | ||
Net Revenue | 5,961 | 4,989 |
Transferred over Time [Member] | Research [Member] | ||
Net Revenue | 2,807 | 2,294 |
Transferred at Point in Time [Member] | ||
Net Revenue | 7,856 | 7,637 |
Transferred at Point in Time [Member] | Energy, Storage and Transmission [Member] | ||
Net Revenue | 58 | 0 |
Transferred at Point in Time [Member] | Aerospace [Member] | ||
Net Revenue | 1,527 | 2,214 |
Transferred at Point in Time [Member] | Industrial [Member] | ||
Net Revenue | 4,856 | 3,863 |
Transferred at Point in Time [Member] | Research [Member] | ||
Net Revenue | $ 1,415 | $ 1,560 |
Note 3 - Revenue - Costs, Estim
Note 3 - Revenue - Costs, Estimated Earnings, and Billings on Uncompleted Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Costs incurred on contracts in progress | $ 14,390 | $ 7,419 |
Estimated earnings | 10,926 | 5,071 |
Costs and Estimated Earnings on Uncompleted Contracts | 25,316 | 12,490 |
Billings to date | (26,925) | (11,409) |
Net Cost in Excess of Billings | (1,609) | 1,081 |
Deferred revenue related to non-systems contracts | (263) | (193) |
Contract Liability In Excess of Contract Assets | (1,872) | 888 |
Included in accompanying consolidated balance sheets under the following captions (in thousands): | ||
Contract assets | 2,170 | 2,538 |
Contract liabilities | $ 4,042 | $ 1,650 |
Note 4 - Inventories - Componen
Note 4 - Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Raw materials | $ 2,165 | $ 1,031 |
Work-in-process | 373 | 194 |
Total | $ 2,538 | $ 1,225 |
Note 5 - Property, Plant and _3
Note 5 - Property, Plant and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 29, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Depreciation, Total | $ 800 | $ 600 | |
Proceeds from Sale of Buildings | 0 | 23,076 | |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | $ 0 | $ 6,894 | |
The Premises at 555 N Research Place, Central Islip, NY [Member] | |||
Proceeds from Sale of Buildings | $ 24,400 | ||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 6,900 | ||
Proceeds from Sale of Buildings, Net | 14,000 | ||
The Premises at 555 N Research Place, Central Islip, NY [Member] | HSBC Bank Second Mortgage Loan [Member] | |||
Repayments of Debt | $ 9,400 |
Note 5 - Property, Plant and _4
Note 5 - Property, Plant and Equipment - Major Classes of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, plant and equipment, gross | $ 22,572 | $ 21,703 |
Less: accumulated depreciation | (9,976) | (9,441) |
Property, plant and equipment, net | 12,596 | 12,261 |
Land [Member] | ||
Property, plant and equipment, gross | 2,220 | 2,220 |
Building and Building Improvements [Member] | ||
Property, plant and equipment, gross | 12,530 | 12,477 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | 7,810 | 6,879 |
Construction in Progress [Member] | ||
Property, plant and equipment, gross | $ 12 | $ 127 |
Note 6 - Intangible Assets (Det
Note 6 - Intangible Assets (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Amortization of Intangible Assets | $ 0.1 | $ 0.1 |
Note 6 - Intangible Assets - Su
Note 6 - Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-lived intangible assets, gross | $ 619 | $ 656 |
Finite-lived intangible assets, accumulated amortization | 500 | 473 |
Intangible assets, net | 119 | 183 |
Patents [Member] | ||
Finite-lived intangible assets, gross | 565 | 602 |
Finite-lived intangible assets, accumulated amortization | 446 | 422 |
Intangible assets, net | 119 | 180 |
Certifications [Member] | ||
Finite-lived intangible assets, gross | 54 | 54 |
Finite-lived intangible assets, accumulated amortization | 54 | 51 |
Intangible assets, net | $ 0 | $ 3 |
Note 6 - Intangible Assets - Es
Note 6 - Intangible Assets - Estimated Amortization Expense Related to Intangible Assets (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
2023 | $ 17 |
2024 | 13 |
2025 | 13 |
2026 | 5 |
2027 | 5 |
Thereafter | 66 |
Total | $ 119 |
Note 7 - Accrued Expenses - Sch
Note 7 - Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued wages and benefits | $ 995 | $ 577 |
Accrued vacation | 905 | 749 |
Other | 691 | 433 |
Total accrued expenses | $ 2,591 | $ 1,759 |
Note 8 - Long-term Debt (Detail
Note 8 - Long-term Debt (Details Textual) | 1 Months Ended | 12 Months Ended | |||
Apr. 21, 2020 USD ($) | Nov. 30, 2017 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Payments to Acquire Property, Plant, and Equipment, Total | $ 665,000 | $ 236,000 | |||
Gain (Loss) on Extinguishment of Debt, Total | 0 | $ 2,443,000 | |||
Loan Agreement to Fund Machinery Acquisition [Member] | |||||
Debt Instrument, Face Amount | $ 432,000 | ||||
Debt Instrument, Number of Payments | 60 | ||||
Debt Instrument, Periodic Payment, Total | $ 8,352 | $ 8,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6% | 6% | |||
Debt Instrument, Interest Rate, Stated Percentage | (6.00%) | (6.00%) | |||
HSBC Bank Mortgage Loan [Member] | |||||
Debt Instrument, Number of Payments | 120 | ||||
Debt Instrument, Periodic Payment, Total | $ 25,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.86% | ||||
Debt Instrument, Interest Rate, Stated Percentage | (1.86%) | ||||
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, Face Amount | $ 10,400,000 | ||||
Debt Instrument, Number of Payments | 60 | ||||
Debt Instrument, Periodic Payment, Total | $ 62,481 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.92% | ||||
Debt Instrument, Interest Rate, Stated Percentage | (3.92%) | ||||
HSBC Bank Second Mortgage Loan [Member] | Premises at 555 North Research Place, Central Islip, NY [Member] | |||||
Payments to Acquire Property, Plant, and Equipment, Total | $ 13,900,000 | ||||
Paycheck Protection Program CARES Act [Member] | |||||
Proceeds from Issuance of Long-Term Debt, Total | $ 2,400,000 | ||||
Gain (Loss) on Extinguishment of Debt, Total | $ 2,400,000 |
Note 8 - Long-term Debt - Summa
Note 8 - Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Total long-term debt | $ 426 | $ 1,766 | |
Less: current maturities | 77 | 1,766 | |
Long-term debt, net of current portion | 349 | 0 | |
Loan Agreement to Fund Machinery Acquisition [Member] | |||
Equipment loan payable in monthly repayments of $8 including interest at 6% per annum (1) | [1] | 426 | 0 |
HSBC Bank Mortgage Loan [Member] | |||
Mortgage loan secured by building payable in monthly repayments of $25 plus interest at LIBOR plus 1.75% or bank’s prime rate minus 0.5% (2) | [2] | $ 0 | $ 1,766 |
[1]In September 2022, the Company entered into a loan agreement to fund the acquisition of machinery equipment. The loan amount of $432,000 is payable in 60 equal monthly installments of $8,352 and secured by equipment. The interest rate is 6%.[2]The Company had a loan agreement with a bank that was secured by a mortgage against its Central Islip, New York facility. The loan was payable in 120 consecutive equal monthly installments of $25,000 in principal plus interest and a final balloon payment due upon maturity on March 1, 2022. The interest rate, at the Company’s option, was the variable rate of LIBOR plus 1.75% or the bank’s prime less 0.5% (1.86% at December 31, 2021). This loan was satisfied on March 1, 2022. |
Note 8 - Long-term Debt - Sum_2
Note 8 - Long-term Debt - Summary of Long-term Debt (Details) (Parentheticals) - USD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loan Agreement to Fund Machinery Acquisition [Member] | |||
Debt Instrument, Periodic Payment, Total | $ 8,352 | $ 8,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6% | 6% | |
HSBC Bank Mortgage Loan [Member] | |||
Debt Instrument, Periodic Payment, Total | $ 25,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.86% | ||
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% |
Note 8 - Long-term Debt - Futur
Note 8 - Long-term Debt - Future Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
2023 | $ 77 | |
2024 | 81 | |
2025 | 87 | |
2026 | 92 | |
2027 | 89 | |
Total long-term debt | $ 426 | $ 1,766 |
Note 9 - Earnings Per Share (De
Note 9 - Earnings Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance | 673,000 | 618,500 | 417,000 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 265,500 | 265,000 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 673,000 | 287,000 |
Note 9 - Earnings Per Share - C
Note 9 - Earnings Per Share - Calculation of Basic and Diluted Weighted Average Common Shares (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Basic weighted average shares outstanding (in shares) | 6,734 | 6,688 |
Effect of potentially dilutive share-based awards (in shares) | 0 | 16 |
Diluted weighted average shares outstanding (in shares) | 6,734 | 6,704 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 33,000 |
State and Local Jurisdiction [Member] | |
Open Tax Year | 2018 2019 2020 2021 2022 |
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | |
Operating Loss Carryforwards | $ 1,400,000 |
Open Tax Year | 2019 2020 2021 2022 |
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member] | |
Tax Credit Carryforward, Amount | $ 1,700,000 |
The Danish Ministry of Taxation [Member] | Foreign Tax Authority [Member] | |
Operating Loss Carryforwards | $ 700,000 |
Note 10 - Income Taxes - Compon
Note 10 - Income Taxes - Components of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Federal | $ 1 | $ 15 |
State | 3 | 13 |
Total current tax provision | 4 | 28 |
Federal | 0 | 0 |
State | 0 | 0 |
Total deferred tax provision | 0 | 0 |
Income tax expense | $ 4 | $ 28 |
Note 10 - Income Taxes - Effect
Note 10 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Expected provision at federal statutory tax rate at 21% | $ (46) | $ 1,003 |
Decrease in valuation allowance | (33) | (346) |
State and local taxes | 84 | 6 |
Foreign tax rate differential | 4 | (116) |
US taxation of foreign operations | 80 | 0 |
Federal research and development credits | (55) | (57) |
Change in tax rates | 10 | 0 |
Non-deductible expenses | 62 | 51 |
Other | (102) | 0 |
Income tax expense | 4 | 28 |
Paycheck Protection Program CARES Act [Member] | ||
PPP loan forgiveness | $ 0 | $ (513) |
Note 10 - Income Taxes - Effe_2
Note 10 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) (Parentheticals) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Federal statutory tax rate | 21% | 21% |
Note 10 - Income Taxes - Deferr
Note 10 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 482 | $ 808 |
R&D tax credit carryforwards | 1,723 | 1,672 |
Impairment charges | 0 | 723 |
Compensation costs | 10 | 149 |
Vacation accrual | 174 | 141 |
Intangible assets | 27 | 0 |
Capitalized research and development | 356 | 0 |
Other items | 263 | 114 |
Deferred income tax assets | 3,035 | 3,607 |
Less: valuation allowance | (2,957) | (2,990) |
Deferred income tax assets, net of valuation allowance | 78 | 617 |
Deferred incomes tax liability: | ||
Property, plant and equipment | (11) | (617) |
Prepaid expenses | (67) | 0 |
Deferred income tax asset, net | $ 0 | $ 0 |
Note 11 - Employee Retention _2
Note 11 - Employee Retention Credit (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease) in Employee Retention Credit Receivable | $ 1,529 | $ 0 |
Employee Retention Credit Receivable, Noncurrent | 1,529 | 0 |
Employee retention credits | $ 1,529 | $ 0 |
Note 12 - Stock-based Compens_3
Note 12 - Stock-based Compensation (Details Textual) - USD ($) | 12 Months Ended | ||||||
Jul. 14, 2022 | Oct. 11, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 09, 2016 | Dec. 12, 2007 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance | 673,000 | 618,500 | 417,000 | ||||
Share-Based Payment Arrangement, Expense | $ 435,000 | $ 315,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 198,500 | 333,500 | |||||
Share-Based Payment Arrangement, Option [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 4 years | ||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,100,000 | ||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 10 months 24 days | ||||||
Share-Based Payment Arrangement, Option [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 25% | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 22,745 | $ 38,000 | |||||
Director [Member] | |||||||
Share-Based Payment Arrangement, Expense | $ 40,000 | ||||||
Director [Member] | Restricted Stock [Member] | |||||||
Share-Based Payment Arrangement, Expense | $ 160,000 | $ 160,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted | 32,000 | 36,000 | |||||
Minimum [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 7 years | ||||||
Maximum [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years | ||||||
The 2007 Share Incentive Plan [Member] | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 750,000 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance | 120,000 | ||||||
The 2016 Share Incentive Plan [Member] | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 750,000 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance | 477,000 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 27,698 | ||||||
The 2022 Equity Incentive Plan [Member] | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 515,000 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance | 76,000 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 439,000 |
Note 12 - Stock-based Compens_4
Note 12 - Stock-based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-based compensation | $ 435 | $ 315 |
Cost of Revenue [Member] | ||
Stock-based compensation | 34 | 30 |
Research and Development Expense [Member] | ||
Stock-based compensation | 57 | 7 |
Selling and Shipping [Member] | ||
Stock-based compensation | 27 | 10 |
General and Administrative Expense [Member] | ||
Stock-based compensation | $ 317 | $ 268 |
Note 12 - Stock-based Compens_5
Note 12 - Stock-based Compensation - Assumptions (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Stock price (in dollars per share) | $ 5.03 |
Exercise price (in dollars per share) | $ 5.03 |
Dividend yield | 0% |
Expected volatility | 68% |
Risk-free interest rate | 3.09% |
Expected life (in years) (Year) | 6 years |
Note 12 - Stock-based Compens_6
Note 12 - Stock-based Compensation - Stock Option Plan (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Beginning balance, number outstanding (in shares) | 618,500 | 417,000 |
Beginning balance, weighted average exercise price (in dollars per share) | $ 7.32 | $ 11.26 |
Granted (in shares) | 198,500 | 333,500 |
Granted, weighted average exercise price (in dollars per share) | $ 5.04 | $ 4.13 |
Expired / cancelled (in shares) | (144,000) | (132,000) |
Expired / cancelled, weighted average exercise price (in dollars per share) | $ 11.72 | $ 11.73 |
Exercised (in shares) | 0 | 0 |
Exercised, weighted average exercise price (in dollars per share) | $ 0 | $ 0 |
Ending balance, number outstanding (in shares) | 673,000 | 618,500 |
Ending balance, weighted average exercise price (in dollars per share) | $ 5.70 | $ 7.32 |
Note 12 - Stock-based Compens_7
Note 12 - Stock-based Compensation - Outstanding and Exercisable Options (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of options outstanding, weighted average exercise price (in dollars per share) | $ 5.70 | $ 7.32 | $ 11.26 |
Exercise Price Range 1 [Member] | |||
Exercise price range, lower limit (in dollars per share) | 4 | ||
Exercise price range, upper limit (in dollars per share) | $ 7 | ||
Number of options outstanding (in shares) | 533,000 | ||
Number of options outstanding, weighted average remaining contractual term (Year) | 8 years 7 months 6 days | ||
Number of options outstanding, weighted average exercise price (in dollars per share) | $ 4.53 | ||
Number of options outstanding, intrinsic value | $ 492,765 | ||
Number of options exercisable (in shares) | 125,500 | ||
Number of options exercisable, weighted average exercise price (in dollars per share) | $ 4.44 | ||
Number of options exercisable, intrinsic value | $ 111,375 | ||
Exercise Price Range 2 [Member] | |||
Exercise price range, lower limit (in dollars per share) | $ 7.01 | ||
Exercise price range, upper limit (in dollars per share) | $ 10 | ||
Number of options outstanding (in shares) | 20,000 | ||
Number of options outstanding, weighted average remaining contractual term (Year) | 5 years 3 months 18 days | ||
Number of options outstanding, weighted average exercise price (in dollars per share) | $ 8.07 | ||
Number of options outstanding, intrinsic value | $ 0 | ||
Number of options exercisable (in shares) | 20,000 | ||
Number of options exercisable, weighted average exercise price (in dollars per share) | $ 8.07 | ||
Number of options exercisable, intrinsic value | $ 0 | ||
Exercise Price Range 3 [Member] | |||
Exercise price range, lower limit (in dollars per share) | $ 10.01 | ||
Exercise price range, upper limit (in dollars per share) | $ 12 | ||
Number of options outstanding (in shares) | 120,000 | ||
Number of options outstanding, weighted average remaining contractual term (Year) | 4 years 2 months 12 days | ||
Number of options outstanding, weighted average exercise price (in dollars per share) | $ 10.52 | ||
Number of options outstanding, intrinsic value | $ 0 | ||
Number of options exercisable (in shares) | 120,000 | ||
Number of options exercisable, weighted average exercise price (in dollars per share) | $ 10.52 | ||
Number of options exercisable, intrinsic value | $ 0 |
Note 12 - Stock-based Compens_8
Note 12 - Stock-based Compensation - Restricted Stock and Restricted Stock Units Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock [Member] | ||
Unvested outstanding, shares (in shares) | 0 | 0 |
Unvested outstanding, weighted average grant date fair value (in dollars per share) | $ 0 | $ 0 |
Granted, shares (in shares) | 32,000 | 42,800 |
Granted, weighted average grant date fair value (in dollars per share) | $ 5.02 | $ 4.65 |
Vested, shares (in shares) | (32,000) | (36,000) |
Vested, weighted average grant date fair value (in dollars per share) | $ 5.02 | $ 4.60 |
Forfeited or cancelled, shares (in shares) | 0 | (6,800) |
Forfeited or cancelled, weighted average grant date fair value (in dollars per share) | $ 0 | $ 4.90 |
Unvested outstanding, shares (in shares) | 0 | 0 |
Unvested outstanding, weighted average grant date fair value (in dollars per share) | $ 0 | $ 0 |
Restricted Stock Units (RSUs) [Member] | ||
Unvested outstanding, shares (in shares) | 5,500 | 8,750 |
Unvested outstanding, weighted average grant date fair value (in dollars per share) | $ 4.82 | $ 5 |
Granted, shares (in shares) | 0 | 0 |
Granted, weighted average grant date fair value (in dollars per share) | $ 0 | $ 0 |
Vested, shares (in shares) | (5,500) | (3,250) |
Vested, weighted average grant date fair value (in dollars per share) | $ 4.82 | $ 5.29 |
Forfeited or cancelled, shares (in shares) | 0 | 0 |
Forfeited or cancelled, weighted average grant date fair value (in dollars per share) | $ 0 | |
Unvested outstanding, shares (in shares) | 0 | 5,500 |
Unvested outstanding, weighted average grant date fair value (in dollars per share) | $ 0 | $ 4.82 |
Note 13 - Defined Contributio_2
Note 13 - Defined Contribution Plan (Details Textual) - USD ($) | 12 Months Ended | ||
Jul. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6% | ||
Defined Contribution Plan, Cost | $ 89,622 | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0 | $ 0 |
Note 14 - Segment Reporting (De
Note 14 - Segment Reporting (Details Textual) | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Number of Operating Segments | 3 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 25,813,000 | $ 16,447,000 |
Employee retention credits | 1,529,000 | 0 |
Gain (Loss) on Extinguishment of Debt, Total | 0 | 2,443,000 |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 0 | 6,894,000 |
SDC [Member] | ||
Employee retention credits | 303,000 | |
CVD [Member] | ||
Employee retention credits | 1,103,000 | |
Gain (Loss) on Extinguishment of Debt, Total | 2,443,000 | |
Materials [Member] | ||
Employee retention credits | 123,000 | |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 6,894,000 | |
Intersegment Eliminations [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | (573,000) | (346,000) |
Intersegment Eliminations [Member] | SDC [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 573,000 | $ 346,000 |
Note 14 - Segment Reporting - S
Note 14 - Segment Reporting - Segment Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Assets | $ 37,912,000 | $ 35,524,000 | ||
Net Revenue | 25,813,000 | 16,447,000 | ||
Operating (loss) income | (1,823,000) | (4,664,000) | ||
Pretax (loss) income | (220,000) | [1] | 4,775,000 | |
Depreciation and amortization | 867,000 | 742,000 | ||
Purchases of property, plant & equipment | 665,000 | 236,000 | ||
Corporate, Non-Segment [Member] | ||||
Assets | 0 | 0 | ||
Net Revenue | 0 | 0 | ||
Operating (loss) income | (2,989,000) | (3,185,000) | ||
Pretax (loss) income | (2,989,000) | [1] | (3,185,000) | |
Depreciation and amortization | 0 | 0 | ||
Purchases of property, plant & equipment | 0 | 0 | ||
Intersegment Eliminations [Member] | ||||
Assets | 0 | 0 | ||
Net Revenue | (573,000) | (346,000) | ||
Operating (loss) income | 0 | 0 | ||
Pretax (loss) income | 0 | [1] | 0 | |
Depreciation and amortization | 0 | 0 | ||
Purchases of property, plant & equipment | 0 | 0 | ||
CVD [Member] | Operating Segments [Member] | ||||
Assets | 25,287,000 | 26,360,000 | ||
Net Revenue | 16,674,000 | 8,590,000 | ||
Operating (loss) income | (1,430,000) | (3,454,000) | ||
Pretax (loss) income | (156,000) | [1] | (1,055,000) | [2] |
Depreciation and amortization | 652,000 | 533,000 | ||
Purchases of property, plant & equipment | 623,000 | 106,000 | ||
SDC [Member] | Operating Segments [Member] | ||||
Assets | 9,679,000 | 7,409,000 | ||
Net Revenue | 6,541,000 | 4,849,000 | ||
Operating (loss) income | 1,546,000 | 922,000 | ||
Pretax (loss) income | 1,849,000 | [1] | 922,000 | |
Depreciation and amortization | 49,000 | 52,000 | ||
Purchases of property, plant & equipment | 3,000 | 31,000 | ||
SDC [Member] | Intersegment Eliminations [Member] | ||||
Net Revenue | 573,000 | 346,000 | ||
Materials [Member] | Operating Segments [Member] | ||||
Assets | 2,946,000 | 1,755,000 | ||
Net Revenue | 3,171,000 | 3,354,000 | ||
Operating (loss) income | 1,050,000 | 1,053,000 | ||
Pretax (loss) income | 1,076,000 | [1] | 8,093,000 | [3] |
Depreciation and amortization | 166,000 | 157,000 | ||
Purchases of property, plant & equipment | $ 39,000 | $ 99,000 | ||
[1]Includes other income related to ERCs of $1,103, $303 and $123 for the CVD, SDC and Materials segments, respectively.[2]Includes $2,443 from the gain on debt extinguishment related to the forgiveness of the PPP loan.[3]Includes $6,894 from the gain on the sale of building. |