Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-5005 | |
Entity Registrant Name | INTRICON CORPORATION | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-1069060 | |
Entity Address, Address Line One | 1260 Red Fox Road | |
Entity Address, City or Town | Arden Hills | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55112 | |
City Area Code | 651 | |
Local Phone Number | 636-9770 | |
Title of 12(b) Security | Common stock, par value $1.00 per share | |
Trading Symbol | IIN | |
Security Exchange Name | NASDAQ | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 8,933,784 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Central Index Key | 0000088790 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 7,056 | $ 8,523 |
Restricted cash | 629 | 639 |
Short-term investment securities | 19,921 | 23,451 |
Accounts receivable, less allowance for doubtful accounts of $598 at June 30, 2020 and $325 at December 31, 2019 | 10,447 | 8,993 |
Inventories | 21,034 | 16,377 |
Contract assets | 8,111 | 10,237 |
Other current assets | 1,587 | 1,975 |
Current assets of discontinued operations | 80 | |
Total current assets | 68,785 | 70,275 |
Machinery and equipment | 44,646 | 41,073 |
Less: Accumulated depreciation | 30,215 | 27,522 |
Net machinery and equipment | 14,431 | 13,551 |
Goodwill | 13,592 | 9,551 |
Intangible assets | 11,779 | 5,545 |
Operating lease right-of-use assets, net | 3,421 | 4,372 |
Investment in partnerships | 695 | 1,160 |
Long-term investments securities | 3,023 | 8,629 |
Other assets, net | 326 | 510 |
Total assets | 116,052 | 113,593 |
Current liabilities: | ||
Current financing leases | 53 | 101 |
Current operating leases | 1,483 | 1,729 |
Accounts payable | 9,469 | 9,876 |
Accrued salaries, wages and commissions | 3,757 | 2,274 |
Other accrued liabilities | 4,680 | 2,869 |
Liabilities of discontinued operations | 77 | |
Total current liabilities | 19,442 | 16,926 |
Noncurrent financing leases | 5 | 30 |
Noncurrent operating leases | 2,148 | 2,937 |
Other postretirement benefit obligations | 360 | 382 |
Accrued pension liabilities | 655 | 655 |
Deferred tax liabilities, net | 1,124 | |
Other long-term liabilities | 3,888 | 2,171 |
Total liabilities | 27,622 | 23,101 |
Commitments and contingencies (Note 18) | ||
Shareholders' equity: | ||
Common stock, $1.00 par value per share; 20,000 shares authorized; 8,934 and 8,781 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 8,934 | 8,781 |
Additional paid-in capital | 88,772 | 86,770 |
Accumulated deficit | (8,546) | (4,286) |
Accumulated other comprehensive loss | (484) | (520) |
Total shareholders' equity | 88,676 | 90,745 |
Non-controlling interest | (246) | (253) |
Total equity | 88,430 | 90,492 |
Total liabilities and equity | $ 116,052 | $ 113,593 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Consolidated Condensed Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 598 | $ 325 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 20,000 | 20,000 |
Common stock, shares issued | 8,934 | 8,781 |
Common stock, shares outstanding | 8,934 | 8,781 |
Consolidated Condensed Statemen
Consolidated Condensed Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Condensed Statements Of Operations [Abstract] | ||||
Revenue, net | $ 23,602 | $ 29,336 | $ 45,105 | $ 58,906 |
Cost of goods sold | 16,996 | 21,121 | 33,927 | 42,133 |
Gross profit | 6,606 | 8,215 | 11,178 | 16,773 |
Operating expenses: | ||||
Sales and marketing | 1,680 | 3,072 | 3,673 | 6,461 |
General and administrative | 4,603 | 3,650 | 8,019 | 6,836 |
Research and development | 1,209 | 1,097 | 2,410 | 2,062 |
Restructuring charges | 1,171 | 1,171 | ||
Impairment loss | 3,765 | 3,765 | ||
Acquisition costs | 493 | 493 | ||
Total operating expenses | 9,156 | 11,584 | 15,766 | 19,124 |
Operating loss | (2,550) | (3,369) | (4,588) | (2,351) |
Interest income, net | 97 | 248 | 281 | 463 |
Other income (expense), net | 208 | (272) | 101 | (406) |
Loss from continuing operations before income taxes and discontinued operations | (2,245) | (3,393) | (4,206) | (2,294) |
Income tax expense | 29 | 116 | 47 | 247 |
Loss from continuing operations before discontinued operations | (2,274) | (3,509) | (4,253) | (2,541) |
Loss on disposal of discontinued operations (Note 5) | (1,116) | (1,116) | ||
Loss from discontinued operations (Note 5) | (405) | (597) | ||
Net loss | (2,274) | (5,030) | (4,253) | (4,254) |
Less: Income allocated to non-controlling interest | 7 | 7 | ||
Net loss attributable to IntriCon shareholders | $ (2,281) | $ (5,030) | $ (4,260) | $ (4,254) |
Basic loss per share attributable to IntriCon shareholders: | ||||
Continuing operations | $ (0.26) | $ (0.40) | $ (0.48) | $ (0.29) |
Discontinued operations | (0.17) | (0.20) | ||
Net loss per share: | (0.26) | (0.57) | (0.48) | (0.49) |
Diluted loss per share attributable to IntriCon shareholders: | ||||
Continuing operations | (0.26) | (0.40) | (0.48) | (0.29) |
Discontinued operations | (0.17) | (0.20) | ||
Net loss per share: | $ (0.26) | $ (0.57) | $ (0.48) | $ (0.49) |
Average shares outstanding: | ||||
Basic | 8,881 | 8,743 | 8,847 | 8,724 |
Diluted | 8,881 | 8,743 | 8,847 | 8,724 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements Of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statements Of Comprehensive (Loss) Income [Abstract] | ||||
Net loss | $ (2,274) | $ (5,030) | $ (4,253) | $ (4,254) |
Realized foreign currency translation loss from discontinued operations previously unrealized, net of taxes of $0 | 280 | 280 | ||
Unrealized foreign currency translation adjustment from continuing operations, net of taxes of $0 | 13 | (26) | 26 | (19) |
Investment in partnerships, net of taxes of $0 | 118 | |||
Pension and postretirement obligations, net of taxes of $0 | 5 | 5 | 10 | 10 |
Comprehensive loss | $ (2,256) | $ (4,771) | $ (4,217) | $ (3,865) |
Consolidated Condensed Statem_3
Consolidated Condensed Statements Of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statements Of Comprehensive (Loss) Income [Abstract] | ||||
Realized foreign currency translation loss from discontinued operations previously unrealized, taxes | $ 0 | $ 0 | ||
Unrealized foreign currency translation adjustment from continuing operations, taxes | $ 0 | 0 | $ 0 | 0 |
Investment in partnerships, taxes | 0 | |||
Pension and postretirement obligations, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (4,253) | $ (4,254) |
Loss from discontinued operations | 1,713 | |
Loss from continuing operations | (4,253) | (2,541) |
Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 2,053 | 1,628 |
Equity in loss of partnerships | 71 | 138 |
Stock-based compensation | 1,712 | 866 |
Change in allowance for doubtful accounts | 273 | (499) |
Loss on disposal of assets | 173 | |
Impairment loss | 3,765 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (260) | 1,884 |
Inventories | (3,151) | (262) |
Contract assets | 2,126 | (1,492) |
Other assets | 161 | 798 |
Accounts payable | (1,366) | (1,166) |
Accrued expenses | 1,912 | (895) |
Other liabilities | (959) | (49) |
Net cash (used in) provided by operating activities of continuing operations | (1,508) | 2,175 |
Net cash provided by (used in) operating activities of discontinued operations | 3 | (96) |
Net cash (used in) provided by operating activities | (1,505) | 2,079 |
Cash flows from investing activities: | ||
Purchases of machinery and equipment | (1,952) | (2,359) |
Payments for acquisition of a business | (7,128) | |
Payments for acquisition of other assets | (141) | (667) |
Purchase of investment securities | (6,159) | (36,688) |
Proceeds from sale of investment securities | 38,015 | |
Proceeds from maturities of investment securities | 15,250 | 1,750 |
Investment in partnerships | 391 | |
Investment in partnerships | (247) | |
Net cash provided by (used in) investing activities of continuing operations | 261 | (196) |
Net cash used in investing activities of discontinued operations | (16) | |
Net cash provided by (used in) investing activities | 261 | (212) |
Cash flows from financing activities: | ||
Payment of financing leases | (57) | (54) |
Exercise of stock options and employee stock purchase plan shares | 107 | 189 |
Withholding of common stock upon vesting of restricted stock units | (246) | (235) |
Net cash (used in) financing activities | (196) | (100) |
Effect of exchange rate changes on cash | (37) | (13) |
Net (decrease) increase in cash | (1,477) | 1,754 |
Cash, cash equivalents and restricted cash, beginning of period | 9,162 | 8,047 |
Cash, cash equivalents and restricted cash, end of period | 7,685 | 9,801 |
Non-cash investing and financing: | ||
Acquisition of machinery and equipment in accounts payable | 213 | 297 |
Acquisition of a business through liabilities incurred | 3,705 | |
Acquisition of a business through issuance of common stock | $ 982 | |
Fitting software other asset through liabilities incurred and exchange of investment in partnership | $ 3,093 |
Consolidated Condensed Statem_5
Consolidated Condensed Statements Of Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Non-Controlling Interest [Member] | Total |
Balance at Dec. 31, 2018 | $ 8,664 | $ 84,999 | $ (509) | $ (927) | $ (253) | $ 91,974 |
Balance, shares at Dec. 31, 2018 | 8,664 | |||||
Exercise of stock options, net | $ 27 | (9) | 18 | |||
Exercise of stock options, net, shares | 27 | |||||
Withholding of common stock upon vesting of restricted stock units | $ 20 | (255) | (235) | |||
Withholding of common stock upon vesting of restricted stock units, shares | 20 | |||||
Shares issued under the employee stock purchase plan | $ 3 | 67 | 70 | |||
Shares issued under the employee stock purchase plan, shares | 3 | |||||
Stock-based compensation | 329 | 329 | ||||
Net income (loss) | 775 | 775 | ||||
Comprehensive income | 130 | 130 | ||||
Balance at Mar. 31, 2019 | $ 8,714 | 85,131 | 266 | (797) | (253) | 93,061 |
Balance, shares at Mar. 31, 2019 | 8,714 | |||||
Balance at Dec. 31, 2018 | $ 8,664 | 84,999 | (509) | (927) | (253) | 91,974 |
Balance, shares at Dec. 31, 2018 | 8,664 | |||||
Net income (loss) | (4,254) | |||||
Balance at Jun. 30, 2019 | $ 8,754 | 85,729 | (4,764) | (538) | (253) | 88,928 |
Balance, shares at Jun. 30, 2019 | 8,754 | |||||
Balance at Mar. 31, 2019 | $ 8,714 | 85,131 | 266 | (797) | (253) | 93,061 |
Balance, shares at Mar. 31, 2019 | 8,714 | |||||
Exercise of stock options, net | $ 29 | 22 | 51 | |||
Exercise of stock options, net, shares | 29 | |||||
Withholding of common stock upon vesting of restricted stock units | $ 6 | (6) | ||||
Withholding of common stock upon vesting of restricted stock units, shares | 6 | |||||
Shares issued under the employee stock purchase plan | $ 2 | 48 | 50 | |||
Shares issued under the employee stock purchase plan, shares | 2 | |||||
Stock-based compensation | $ 3 | 534 | 537 | |||
Stock-based compensation, shares | 3 | |||||
Net income (loss) | (5,030) | (5,030) | ||||
Comprehensive income | 259 | 259 | ||||
Balance at Jun. 30, 2019 | $ 8,754 | 85,729 | (4,764) | (538) | (253) | 88,928 |
Balance, shares at Jun. 30, 2019 | 8,754 | |||||
Balance at Dec. 31, 2019 | $ 8,781 | 86,770 | (4,286) | (520) | (253) | 90,492 |
Balance, shares at Dec. 31, 2019 | 8,781 | |||||
Exercise of stock options, net | $ 11 | 4 | 15 | |||
Exercise of stock options, net, shares | 11 | |||||
Withholding of common stock upon vesting of restricted stock units | $ 22 | (220) | (198) | |||
Withholding of common stock upon vesting of restricted stock units, shares | 22 | |||||
Shares issued under the employee stock purchase plan | $ 5 | 48 | 53 | |||
Shares issued under the employee stock purchase plan, shares | 5 | |||||
Stock-based compensation | 376 | 376 | ||||
Net income (loss) | (1,979) | (1,979) | ||||
Comprehensive income | 18 | 18 | ||||
Balance at Mar. 31, 2020 | $ 8,819 | 86,978 | (6,265) | (502) | (253) | 88,777 |
Balance, shares at Mar. 31, 2020 | 8,819 | |||||
Balance at Dec. 31, 2019 | $ 8,781 | 86,770 | (4,286) | (520) | (253) | $ 90,492 |
Balance, shares at Dec. 31, 2019 | 8,781 | |||||
Exercise of stock options, net, shares | 97 | |||||
Net income (loss) | $ (4,253) | |||||
Balance at Jun. 30, 2020 | $ 8,934 | 88,772 | (8,546) | (484) | (246) | 88,430 |
Balance, shares at Jun. 30, 2020 | 8,934 | |||||
Balance at Mar. 31, 2020 | $ 8,819 | 86,978 | (6,265) | (502) | (253) | 88,777 |
Balance, shares at Mar. 31, 2020 | 8,819 | |||||
Exercise of stock options, net | $ 18 | (18) | ||||
Exercise of stock options, net, shares | 18 | |||||
Withholding of common stock upon vesting of restricted stock units | $ 14 | (62) | (48) | |||
Withholding of common stock upon vesting of restricted stock units, shares | 14 | |||||
Shares issued under the employee stock purchase plan | $ 3 | 36 | 39 | |||
Shares issued under the employee stock purchase plan, shares | 3 | |||||
Acquisition of Emerald Medical Services | $ 80 | 902 | 982 | |||
Acquisition of Emerald Medical Services, shares | 80 | |||||
Stock-based compensation | 936 | 936 | ||||
Net income (loss) | (2,281) | 7 | (2,274) | |||
Comprehensive income | 18 | 18 | ||||
Balance at Jun. 30, 2020 | $ 8,934 | $ 88,772 | $ (8,546) | $ (484) | $ (246) | $ 88,430 |
Balance, shares at Jun. 30, 2020 | 8,934 |
General
General | 6 Months Ended |
Jun. 30, 2020 | |
General [Abstract] | |
General | 1. General In the opinion of management, the accompanying consolidated condensed financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly IntriCon Corporation's (“IntriCon” or the “Company”) consolidated condensed financial position as of June 30, 2020 and December 31, 2019, the consolidated condensed results of its operations and statements of equity for the three and six months ended June 30, 2020 and 2019, and the consolidated statements of cash flows for the six months ended June 30, 2020 and 2019. Results of operations for the interim periods are not necessarily indicative of the results of operations expected for the full year or any other interim period. The preparation of consolidated condensed financial statements in conformity with GAAP 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, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates particularly as it relates to estimates reliant on forecasts and other assumptions impacted by the COVID-19 pandemic . In March 2020, the World Health Organization categorized COVID-19 (coronavirus) as a pandemic and the President of the United States declared the outbreak a national emergency. The Company considered the impacts of the COVID-19 pandemic on the assumptions and estimates used, including reviewing our long-lived assets for impairment, and determined that for the three and six months ended June 30, 2020, the COVID-19 pandemic did not have a material adverse impact. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our 2019 Annual Report on Form 10-K filed with the SEC. On June 25, 2019, the Company’s officers, pursuant to delegated authority from the board, approved plans to discontinue the operations of its United Kingdom (UK) subsidiary within our body worn device segment. For all periods presented, the Company classified this business as discontinued operations, and accordingly, has reclassified historical financial data presented herein. See Note 5. On May 18, 2020, IntriCon Pte. Ltd. (“Buyer”), a wholly-owned subsidiary of the Company, acquired all of the outstanding shares of Emerald Medical Services Pte., Ltd., a Singapore company (“Emerald”) , pursuant to a Share Purchase Agreement dated the same date among Buyer, Emerald and the direct and indirect owners of Emerald. Emerald, based in Singapore, is a provider of joint development medical device manufacturing services for complex catheter applications. See Note 3. On May 20, 2020, the Company announced a strategic restructuring plan designed to accelerate the Company’s future growth by focusing resources on the highest potential growth areas. The plan, which was approved by the Company’s Board of Directors, was completed as of June 30, 2020. See Note 4. The consolidated condensed financial statements include the accounts of the Company and its consolidated subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. The Company evaluates its voting and variable interests in entities on a qualitative and quantitative basis. The Company consolidates entities in which it concludes it has the power to direct the activities that most significantly impact an entity’s economic success and has the obligation to absorb losses or the right to receive benefits that could be significant to the entity. Significant Accounting Policies The Company’s significant accounting policies are detailed in “Note 1: Summary of Significant Accounting Policies” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Due to the acquisition of Emerald, we have updated our accounting policies to include business combinations and contingent consideration liabilities. We record acquisitions in accordance with ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values on the acquisition date. The excess of the purchase price over the estimated fair values of the net tangible and net intangible assets acquired is recorded as goodwill. The application of ASC 805, Business Combinations requires management to make significant estimates and assumptions in the determination of the fair value of assets acquired and liabilities assumed in order to properly allocate purchase price consideration between goodwill and assets that are depreciated and amortized. Our estimates are based on historical experience, information obtained from the management of the acquired companies and, when appropriate, include assistance from independent third-party appraisal firms. These estimates are inherently uncertain and unpredictable. In addition, unanticipated events or circumstances may occur which may affect the accuracy or validity of such estimates. Contingent consideration liabilities depend on certain future events and are measured at fair value based on various level 3 inputs and assumptions including forecasts, probabilities of payment and discount rates. Amounts are classified as current if expected to be paid within the next twelve months. The liability for contingent consideration is subject to fair value adjustments each reporting period that will be recognized through the statement of operations. See Note 3 for additional detail on the accounting for the Emerald Acquisition. Reclassification The Company changed the classification of certain other assets, net to intangible assets on the Consolidated Condensed Balance Sheet for the period ended June 30, 2020. To conform with the current period presentation, amounts previously reported as other assets, net, of $ 5,545 as of December 31, 2019, have been reclassified to intangible assets to conform with the current period presentation. Refer to Note 11 for additional details. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses Topic 326, which requires certain financial assets to be measured at amortized cost net of an allowance for estimated credit losses, such that the net receivable represents the present value of expected cash collection. In addition, this standard update requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses must be based on all relevant information including historical information, current conditions, and reasonable and supportable forecasts that affect the collectability of the amounts. Topic 326 is effective for interim and annual periods beginning January 1, 2022 for smaller reporting companies. This standard update is not expected to have a material impact on our financial position, results of operations and cash flows. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes as part of its overall simplification initiative to reduce costs and complexity in applying accounting standards while maintaining or improving the usefulness of the information provided to users of the financial statements. Amendments include removal of certain exceptions to the general principals of ASC 740, Income Taxes , and simplification in several other areas such as accounting for franchise tax (or similar tax) that is partially based on income. ASU 2019-12 is effective for interim and annual periods beginning after December 15, 2020. This standard update is not expected to have a material impact on our financial position, results of operations and cash flows. In January 2020, the FASB issued ASU 2020-01, Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 , which clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under ASC 323, Investments – Equity Method and Joint Venture , for the purposes of applying the measurement alternative in accordance with ASC 321, Investments – Equity Securities , immediately before applying or upon discontinuing the equity method. ASU 2020-01 is effective for interim and annual periods beginning after December 15, 2020. This standard update is not expected to have a material impact on our financial position, results of operations and cash flows. In April 2020, the FASB issued ASU 2020-04, Reference Rate Reform Topic 848 , which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. Topic 848 provides optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. This standard update is not expected to have a material impact on our financial position, results of operations and cash flows. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2020 | |
Acquisitions [Abstract] | |
Acquisitions | 3. Acquisitions Acquisition of Emerald Medical Services and Emerald Extrusion Services On May 18, 2020 , IntriCon Pte. Ltd. (“Buyer”), a wholly-owned subsidiary of the Company, acquired all of the outstanding shares of Emerald Medical Services Pte., Ltd., a Singapore company (“Emerald”), pursuant to a Share Purchase Agreement dated the same date among Buyer, Emerald and the direct and indirect owners of Emerald. Emerald, based in Singapore, is a provider of joint development medical device manufacturing services for complex catheter applications. In addition, Emerald has a 54 % ownership interest in Emerald Extrusion Services LLC. (“EES), based in California. Based on this controlling financial interest, the Company has consolidated this entity based on the voting interest model under ASC 810, Consolidation. On May 21, 2020, the Securities and Exchange Commission announced that it has adopted amendments to the financial disclosure requirements in Regulation S-X for acquisitions and dispositions of businesses. This guidance reduces the burden on companies by making more meaningful determinations on the significance of an acquired or disposed business by updating the significance test, among other things. As permitted, IntriCon has early adopted this guidance and applied the updates in performing the significance test for the Emerald acquisition. Based on the updated guidance, Emerald is not deemed significant to our consolidated financial statements and therefor, historic and pro forma financial statements are not required to be disclosed. The total purchase price of $ 11,815 consisted of a cash payment paid at closing of $ 7,128 , subject to a post-closing working capital adjustment of $ 291 , the issuance of 80 thousand shares of the Company’s common stock valued at $ 982 issued at closing, which shares will be held in an escrow account for a period of 18 months to resolve any post-closing claims by the Buyer, as well as a liability for contingent consideration of $ 3,414 . The liability for contingent consideration consists of a cash payment of $ 500 payable in the event that regulatory approval in Japan is obtained for a particular product within twelve months of closing, an earn-out payment of between $ 333 and $ 1,000 if Emerald has net revenues ranging from $ 9.0 million to $ 11.0 million during the first year after closing, and additional earn-out payments equal to 28 % of net revenues arising from the sale of certain products or to certain customers for each of the first three years after closing. The liability for contingent consideration is a fair value measurement based on various level 3 inputs and assumptions including forecasts, probabilities of payment and discount rates. The liability for contingent consideration is subject to fair value adjustments each reporting period that will be recognized through the statement of operations. In connection with the acquisition, the Company recorded acquisition costs of $ 493 for the three months ended June 30, 2020 related to legal, professional fees and other miscellaneous costs. These costs are recorded within acquisition costs within the consolidated condensed statements of operations. Our consolidated condensed statements of operations for the three and six months ended June 30, 2020 include revenues of $ 1,146 and net income of $ 48 , attributable to the acquirees for the period from May 19 through June 30, 2020. We accounted for the acquisition in accordance with ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair value on the acquisition date. We have up to one year from the acquisition date to finalize the purchase price allocation. As such, these estimates may change which would likely result in an increase or decrease in goodwill. A preliminary purchase price allocation of the fair value of the assets acquired and liabilities assumed is included in the table below. A preliminary intangible asset of $ 6,400 was recorded as a part of purchase accounting related to the value of identifiable customer relationships acquired. These intangibles are being amortized over an 8 year useful life. A preliminary net deferred tax liability of $ 1,055 was established on the acquisition date related to book-tax differences from the amortization of the intangibles as well as certain other purchasing accounting adjustments. Preliminary goodwill of $ 4,041 was recorded, representing the benefits of increased operating scale and growth opportunities through currently unidentifiable customers. The goodwill balance is not amortizable for tax purposes. The purchase price was allocated as follows: Current assets $ 3,104 Machinery and equipment 172 Intangible assets 6,400 Goodwill 4,041 Noncurrent assets 169 Current liabilities ( 983 ) Noncurrent liabilities ( 1,088 ) Total consideration paid $ 11,815 |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | 4. Restructuring Charges On May 20, 2020, the Company announced a strategic restructuring plan designed to accelerate the Company’s future growth by focusing resources on the highest potential growth areas. The plan, which was approved by the Company’s Board of Directors, was completed as of June 30, 2020, and consisted primarily of transitioning our direct-to-end-consumer operations at Hearing Help Express to solely support partnership initiatives including the reduction of advertising expenses as well as global net workforce reductions. Total restructuring charges for the three and six months ended June 30, 2020 were $ 1,171 , including $ 732 related to one-time employee termination benefits, $ 326 for lease modification costs at Hearing Help Express and $ 113 for losses on disposal of assets. As of June 30, 2020, outstanding restructuring liabilities included unpaid employee termination benefits of $ 586 . |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 5. Discontinued Operations On June 25, 2019, the Company’s officers, pursuant to delegated authority from the board, approved plans to discontinue the operations of its UK subsidiary within the body worn device segment. During the first quarter of 2020, the remaining assets and liabilities of the subsidiary were settled. As the disposal meets the definition of a strategic shift in accordance with ASC 205, the results of the UK operations have been classified as loss from discontinued operations, in the accompanying consolidated condensed statements of operations, comprehensive (loss) income and cash flows . Current assets and liabilities of the discontinued operations have been reclassified and reflected on the accompanying consolidated condensed balance sheets as “Current assets of discontinued operations,” and “Liabilities of discontinued operations”, respectively. Prior periods relating to our discontinued operations have been reclassified to reflect consistency within our consolidated condensed financial statements. There was no income tax expense or benefit related to our discontinued operations for any period presented. The total assets and liabilities of the UK subsidiary at December 31, 2019 were as follows: December 31, 2019 Other current assets $ 80 Other accrued liabilities 77 Net assets (liabilities) $ 3 The loss on disposal of discontinued operations for the three and six months ended June 30, 2019 was computed as follows: Cash and cash equivalents $ 5 Accounts receivable, net 72 Write-down of inventory to realizable value 278 Write-down of property, plant and equipment to salvage value 298 Other assets and liabilities, net 71 Realized loss on foreign currency 280 Net assets disposed 1,004 Additional disposal costs, net 112 Loss on disposal of discontinued operations $ 1,116 The following table shows the results of the UK subsidiary’s discontinued operations: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Revenue, net $ 529 $ 1,068 Cost of goods sold 321 667 Gross profit 208 401 Sales and marketing 167 314 General and administrative 446 684 Total operating expenses 613 998 Loss from discontinued operations $ ( 405 ) $ ( 597 ) |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | 6. Segment Reporting The Company currently operates in two reportable segments: body-worn devices and hearing health direct-to-end-consumer (DTEC). The nature of distribution and services has been deemed separately identifiable. Therefore, segment reporting has been applied. The following table summarizes certain data from continuing operations by reportable segment: For the Three Months Ended June 30, 2020 Body Worn Devices Hearing Health DTEC Total Revenue, net $ 22,215 $ 1,387 $ 23,602 Loss from continuing operations before income taxes and discontinued operations ( 1,351 ) ( 894 ) ( 2,245 ) Depreciation and amortization 1,106 26 1,132 Capital expenditures 274 - 274 For the Six Months Ended June 30, 2020 Body Worn Devices Hearing Health DTEC Total Revenue, net $ 42,545 $ 2,560 $ 45,105 Loss from continuing operations before income taxes and discontinued operations ( 2,429 ) ( 1,777 ) ( 4,206 ) Depreciation and amortization 2,001 52 2,053 Capital expenditures 1,952 - 1,952 For the Three Months Ended June 30, 2019 Body Worn Devices Hearing Health DTEC Total Revenue, net $ 27,600 $ 1,736 $ 29,336 Income (loss) from continuing operations before income taxes and discontinued operations 1,775 ( 5,168 ) ( 3,393 ) Depreciation and amortization 772 46 818 Capital expenditures 1,343 62 1,405 For the Six Months Ended June 30, 2019 Body Worn Devices Hearing Health DTEC Total Revenue, net $ 55,540 $ 3,366 $ 58,906 Income (loss) from continuing operations before income taxes and discontinued operations 4,356 ( 6,650 ) ( 2,294 ) Depreciation and amortization 1,498 130 1,628 Capital expenditures 2,277 82 2,359 The following table summarizes the identifiable assets (excluding goodwill) and goodwill by reportable segment as of the following dates: June 30, December 31, 2020 2019 Body Worn Devices: Identifiable assets (excluding goodwill) $ 100,547 $ 101,311 Goodwill 13,592 9,551 Hearing Health DTEC: Identifiable assets (excluding goodwill) 1,913 2,651 |
Geographic Information
Geographic Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Geographic Information | 7. Geographic Information The geographical distribution of long-lived assets to geographical areas consisted of the following at: June 30, December 31, 2020 2019 United States $ 13,053 $ 12,215 Singapore 1,323 1,263 Other 55 73 Consolidated $ 14,431 $ 13,551 Long-lived assets consist of machinery and equipment. Excluded from long-lived assets are investments in partnerships, patents, goodwill, operating lease right-of-use (ROU) assets and certain other assets. The Company capitalizes long-lived assets pertaining to the production of specialized parts. These assets are periodically reviewed to ensure the net realizable value from the estimated future production based on forecasted cash flows exceeds the carrying value of the assets. The geographical distribution of net revenue to geographical areas for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended Net Revenue to Geographical Areas June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 United States $ 17,228 $ 24,361 $ 35,016 $ 48,576 Europe 957 1,568 2,144 3,232 Asia 2,791 3,219 4,991 6,728 All other countries 2,625 188 2,953 370 Consolidated $ 23,602 $ 29,336 $ 45,105 $ 58,906 Geographic net revenue is allocated based on the location of the customer. For the three and six months ended June 30, 2020, and 2019, one customer accounted for 61 % and 62 %, and 61 % and 60 %, respectively, of the Company’s consolidated net revenue. Two customers combined accounted for 63 % and 51 % of the Company’s consolidated accounts receivable at June 30, 2020 and December 31, 2019, respectively. One customer accounted for 84 % and 86 % of the Company’s consolidated contract assets at June 30, 2020 and December 31, 2019, respectively. |
Investment In Partnerships
Investment In Partnerships | 6 Months Ended |
Jun. 30, 2020 | |
Investment In Partnerships [Abstract] | |
Investment In Partnerships | 8. Investment in Partnerships Investment in partnerships consisted of the following: June 30, December 31, 2020 2019 Investment in Signison $ 459 $ 852 Other 236 308 Total $ 695 $ 1,160 The Company has a 50 % ownership interest in Signison as of June 30, 2020. Signison is accounted for in the Company’s consolidated financial statements using the equity method. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2020 | |
Investments Securities [Abstract] | |
Investment Securities | 9. Investment Securities The Company invests in commercial paper, corporate notes and bonds with original maturities of less than two years. The Company classifies these investments as held to maturity based on our intent and ability to hold these investments until maturity. As a result, these investments are recorded at amortized cost, which approximates fair value, using level 1 inputs. The maturity dates of our investments as of June 30, 2020 are as follows: Less than one year 1-5 years Total Commercial Paper Original Maturities of 91 Days or More $ 2,494 $ - $ 2,494 Corporate Notes and Bonds 17,427 3,023 20,450 Total Investments $ 19,921 $ 3,023 $ 22,944 The maturity dates of our investments as of December 31, 2019 are as follows: Less than one year 1-5 years Total Commercial Paper Original Maturities of 91 Days or More $ 8,461 $ - $ 8,461 Corporate Notes and Bonds 14,990 8,629 23,619 Total Investments $ 23,451 $ 8,629 $ 32,080 The Company also maintains excess funds within level 2 money market accounts included within cash and cash equivalents. Cash available in our money market accounts at June 30, 2020 and December 31, 2019 was $ 6,182 and $ 7,200 , respectively. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventories [Abstract] | |
Inventories | 10. Inventories Inventories consisted of the following at: Raw materials Work-in process Finished products and components Total June 30, 2020 Domestic $ 11,578 $ 1,650 $ 3,026 $ 16,254 Foreign 4,023 597 160 4,780 Total $ 15,601 $ 2,247 $ 3,186 $ 21,034 December 31, 2019 Domestic $ 10,379 $ 736 $ 2,375 $ 13,490 Foreign 2,482 215 190 2,887 Total $ 12,861 $ 951 $ 2,565 $ 16,377 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Intangible Assets [Abstract] | |
Intangible Assets | 11. Intangible assets Definite- lived intangible assets consisted of the following at: June 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer list $ 6,400 $ ( 67 ) $ - $ - Self-fitting software* 3,975 ( 199 ) 3,679 - Technology access* 5,110 ( 3,440 ) 5,110 ( 3,244 ) Total $ 15,485 $ ( 3,706 ) $ 8,789 $ ( 3,244 ) The customer list was established as a part of purchase accounting related to our Emerald acquisition ; see Note 3. The estimated useful life is eight years . In January 2019, the Company purchased the source code for self-fitting software from Soundperience for 1,750 Euros and also transferred our 49 % ownership interest in Soundperience to the majority owner for a total investment of $ 3,679 . Amortization began during the second quarter of 2020 based on an estimated useful life of five years . The technology access asset provides the Company with wireless hearing aid technology and is being amortized based on an estimated useful life of seven years . |
Other Accrued Liabilities
Other Accrued Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Other Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | 12. Other Accrued Liabilities Other accrued liabilities consisted of the following at: June 30, 2020 December 31, 2019 Pension $ 120 $ 120 Postretirement benefit obligation 71 71 Accrued stock compensation 400 - Deferred revenue 276 327 Current self-fitting software liability 243 285 Current technology access liability 989 1,236 Current earn-out contingent consideration liability 1,097 - Other 1,484 830 Total $ 4,680 $ 2,869 Accrued stock compensation relates to unvested stock awards accounted for as liabilities. Technology access liabilities are due in equal quarterly installments through January 2022. The earn-out liability is contingent on certain future events and is measured at fair value based on various level 3 inputs and assumptions including forecasts, probabilities of payment and discount rates. Amounts are classified as current if expected to be paid within the next twelve months. The liability for contingent consideration is subject to fair value adjustments each reporting period that will be recognized through the statement of operations, see Note 3. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Other Long-Term Liabilities [Abstract] | |
Other Long-Term Liabilities | 13. Other long-term liabilities Other long-term liabilities consisted of the following at: June 30, December 31, 2020 2019 Noncurrent self-fitting software liability $ 825 $ 922 Noncurrent technology access liability 742 989 Noncurrent earn-out contingent consideration liability 2,317 - Other 4 260 Total $ 3,888 $ 2,171 Technology access liabilities are due in equal quarterly installments through January 2022. The earn-out liability is contingent on certain future events and is measured at fair value based on various level 3 inputs and assumptions including forecasts, probabilities of payment and discount rates. Amounts are classified as noncurrent if expected to be paid beyond the next twelve months. The liability for contingent consideration is subject to fair value adjustments each reporting period that will be recognized through the statement of operations, see Note 3. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | 14. Leases The Company’s leases pertain primarily to engineering, manufacturing, sales and administrative facilities, with an initial term of one year or more. The Company has three leased facilities in Minnesota, two that expire in 2022 and one that expires in 2023, one leased facility in Illinois that expires in 2022, one leased facility in California that expires in 2022, two leased facilities in Singapore that both expire in 2020, one leased facility in Indonesia that expires in 2024, and one leased facility in Germany that expires in 2022. As discussed in Note 4, the Company incurred $ 326 for lease modification costs at Hearing Help Express to reduce square footage by approximately 65 % in an effort to reduce future operating costs. The modification had no impact on the lease term. Certain foreign leases allow for variable lease payments that depend on an index or a market rate adjustment for the respective country and are adjusted on an annual basis. The adjustment is recognized as incurred in profit and loss. The facility leases include options to extend for terms ranging from one year to five years . Lease options that the Company is reasonably certain to execute, are included in the determination of the ROU asset and lease liability. Our Indonesia lease includes embedded forward starting leases that will begin in 2022 and 2024 for additional square footage, which will result in the recognition of an additional ROU asset and lease liability in those periods of approximately $ 103 and $ 72 , respectively. The Company also leases equipment that include bargain purchase options at termination. These leases have been classified as finance leases. As of June 30, 2020, the Company has a weighted-average lease term of 1.0 years for its finance leases, and 2.7 years for its operating leases. As of June 30, 2020, the Company has a weighted-average discount rate of 5.56 % for its finance leases, and 5.17 % for its operating leases. Discount rates are determined based on 5 year term incremental borrowing rates at inception of the lease. Operating cash flows for the six months ended June 30, 2020 from operating leases were $ 924 . Financing lease assets are classified as machinery and equipment within the consolidated balance sheet. The following tables summarizes lease costs by type: Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Lease cost Finance lease cost: Amortization of right-of-use assets $ 26 $ 24 $ 52 $ 49 Interest on lease liabilities 1 2 3 5 Operating lease cost 393 457 874 917 Variable lease cost* 148 141 299 279 Total lease cost $ 568 $ 624 $ 1,228 $ 1,250 *Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for our domestic and foreign building leases. Maturities of lease liabilities are as follows as of June 30, 2020: Operating Leases Financing Leases Total 2020 $ 879 $ 39 $ 918 2021 1,503 24 1,528 2022 1,013 3 1,016 2023 414 - 414 2024 92 - 92 2025 and thereafter - - - Total lease payments 3,900 67 3,967 Less: Interest ( 269 ) ( 9 ) ( 278 ) Present value of lease liabilities $ 3,631 $ 58 $ 3,689 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 15. Income Taxes Income tax expense for the three and six months ended June 30, 2020 was $ 29 and $ 47 , compared to $ 116 and $ 247 , for the same period in 2019, respectively. The expense was largely due to our foreign operations. The Company has net operating loss carryforwards for U.S. federal income tax purposes. The Company has recorded a full valuation allowance against US deferred tax assets as of June 30, 2020. Upon acquisition of Emerald, a net deferred tax liability of $ 1,055 was established on the acquisition date related to book-tax differences from the amortization of the intangibles as well as certain other assets, see Note 3. The following was the (loss) income from continuing operations before income taxes and discontinued operations for each jurisdiction in which the Company has operations for the three and six months ended June 30, 2020 and 2019. Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 United States $ ( 1,994 ) $ ( 3,639 ) $ ( 3,836 ) $ ( 2,755 ) Singapore ( 278 ) 104 ( 431 ) 222 Indonesia 17 19 35 40 Germany 10 123 26 199 (Loss) income from continuing operations before income taxes and discontinued operations $ ( 2,245 ) $ ( 3,393 ) $ ( 4,206 ) $ ( 2,294 ) CARES Act On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which contained in part, an allowance for deferral of the employer portion of Social Security employment tax liabilities until 2021 and 2022, as well as a COVID-19 employee retention tax credit (“CRC”) of up to $ 5,000 per eligible employee. Based on the timing of the CARES Act, for the three months ended June 30, 2020, the related tax benefits from the CARES Act were not material. We are currently reviewing the potential future benefits related to employee retention tax credits and the payroll tax deferral provision to assess the impact on our financial position, results of operations and cash flows. |
Shareholders' Equity And Stock-
Shareholders' Equity And Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Shareholder' Equity And Stock-Based Compensation [Abstract] | |
Shareholders' Equity And Stock-Based Compensation | 16. Shareholders’ Equity and Stock-based Compensation The Company has a 2006 Equity Incentive Plan and a 2015 Equity Incentive Plan. The 2015 Equity Incentive Plan replaced the 2006 Equity Incentive Plan and new grants may not be made under the 2006 Plan. Under the 2015 Equity Incentive Plan, the Company may grant stock options, stock awards, stock appreciation rights, restricted stock units (“RSUs”) and other equity-based awards. Under all awards, the terms are fixed on the grant date. For the six months ended June 30, 2020, the Company granted 100 RSUs with a weighted average closing price on the date of grant of $ 15.61 . The RSUs vest in equal, annual installments over a three year period beginning on the first anniversary of the date of grant at which time common stock is issued with respect to vested units. The Company has also granted stock options under the plans. Options granted under the plans generally vest in equal, annual installments over a three year period beginning on the first anniversary of the date of grant and have a maximum term of 10 years. Stock award activity as of and during the six months ended June 30, 2020 was as follows: Outstanding Awards Stock Options RSUs Total Stock Option Weighted-Average Exercise Price (a) Aggregate Intrinsic Value Outstanding at December 31, 2019 746 128 874 $ 6.39 Awards granted - 100 100 - Awards exercised or released ( 42 ) ( 55 ) ( 97 ) 4.31 Outstanding at June 30, 2020 704 173 877 $ 6.52 $ 7,271 Exercisable at June 30, 2020 682 34 682 $ 6.50 $ 5,247 Available for future grant at December 31, 2019 183 Available for future grant at June 30, 2020 114 (a) The weighted average exercise price calculation does not include outstanding RSUs The number of shares available for future grants at June 30, 2020 does not include a total of up to 331 shares subject to options outstanding under the 2006 Equity Incentive Plan, which will become available for grant under the 2015 Equity Incentive Plan as outstanding options under the 2006 Equity Incentive Plan expire, terminate, are cancelled or forfeited or are withheld in a net exercise of such options. The Company recorded $ 1,336 and $ 1,712 of non-cash stock compensation expense for the three and six months ended June 30, 2020, respectively, compared to $ 537 and $ 866 for the same periods in 2019, respectively. During the quarter ended June 30, 2020, we recorded a cumulative non-cash stock compensation expense adjustment of $ 422 for individuals who are retirement eligible and therefore have vested in stock awards according to our plan. The adjustment was not material to our Consolidated Financial Statements for any quarterly or annual period. As of June 30, 2020, there was $ 2,123 of total unrecognized compensation costs related to non-vested stock option and RSU awards that are expected to be recognized over a weighted-average period of 2.10 years. The total intrinsic value of options exercised during the six months ended June 30, 2020 was $ 418 . The Company also has an Employee Stock Purchase Plan (the “Purchase Plan”). The Purchase Plan, as amended, through June 30, 2020, provides that a maximum of 300 shares may be sold under the Purchase Plan. There were 8 and 5 shares purchased under the plan for the six months ended June 30, 2020 and 2019, respectively. |
Income Per Share
Income Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Income Per Share [Abstract] | |
Income Per Share | 17. Income Per Share The following table presents a reconciliation between basic and diluted earnings per share: Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Numerator: Loss from continuing operations before discontinued operations $ ( 2,274 ) $ ( 3,509 ) $ ( 4,253 ) $ ( 2,541 ) Loss from discontinued operations (Note 5) - ( 1,521 ) - ( 1,713 ) Less: Income allocated to non-controlling interest ( 7 ) - ( 7 ) - Net loss attributable to IntriCon shareholders $ ( 2,281 ) $ ( 5,030 ) $ ( 4,260 ) $ ( 4,254 ) Denominator: Basic – weighted shares outstanding 8,881 8,743 8,847 8,724 Weighted shares assumed upon exercise of stock awards - - - - Diluted – weighted shares outstanding 8,881 8,743 8,847 8,724 Basic loss per share attributable to IntriCon shareholders: Continuing operations $ ( 0.26 ) $ ( 0.40 ) $ ( 0.48 ) $ ( 0.29 ) Discontinued operations - ( 0.17 ) - ( 0.20 ) Net loss per share: $ ( 0.26 ) $ ( 0.57 ) $ ( 0.48 ) $ ( 0.49 ) Diluted loss per share attributable to IntriCon shareholders: Continuing operations $ ( 0.26 ) $ ( 0.40 ) $ ( 0.48 ) $ ( 0.29 ) Discontinued operations - ( 0.17 ) - ( 0.20 ) Net loss per share: $ ( 0.26 ) $ ( 0.57 ) $ ( 0.48 ) $ ( 0.49 ) Earnings per common share was based on the weighted average number of common shares outstanding during the periods when computing the basic earnings per share. Stock option are dilutive when the average market price of Company stock exceeds the exercise price of the potentially dilutive options. When dilutive, stock options are included as equivalents using the treasury stock method when computing the diluted earnings per share. Shares represented by RSUs are also included in the dilution calculation. For the three and six months ended June 30, 2020, weighted average options and RSU’s outstanding of 882 and 894 , respectively, were excluded from the dilutive calculation as their effect would have been antidilutive based on losses in the period. For the three and six months ended June 30, 2019, weighted average options and RSU’s outstanding of 701 and 712 , respectively, were excluded from the dilutive calculation as their effect would have been antidilutive based on losses in the period. |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jun. 30, 2020 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 18. Legal Proceedings The Company is a defendant along with a number of other parties in lawsuits alleging that plaintiffs have or may have contracted asbestos-related diseases as a result of exposure to asbestos products or equipment containing asbestos sold by one or more named defendants. These lawsuits relate to the discontinued heat technologies segment which was sold in March 2005. Due to the non-informative nature of the complaints, the Company does not know whether any of the complaints state valid claims against the Company. Certain insurance carriers have informed the Company that the primary policies for the period August 1, 1970-1978 have been exhausted and that the carriers will no longer provide defense and insurance coverage under those policies. However, the Company has other primary and excess insurance policies that the Company believes afford coverage for later years. Some of these other primary insurers have accepted defense and insurance coverage for these suits, and some of them have either ignored the Company’s tender of defense of these cases, or have denied coverage, or have accepted the tenders but asserted a reservation of rights and/or advised the Company that they need to investigate further. Because settlement payments are applied to all years a litigant was deemed to have been exposed to asbestos, the Company believes that it will have funds available for defense and insurance coverage under the non-exhausted primary and excess insurance policies. However, unlike the older policies, the more recent policies have deductible amounts for defense and settlements costs that the Company will be required to pay; accordingly, the Company expects that its litigation costs will increase in the future. Further, many of the policies covering later years (approximately 1984 and thereafter) have exclusions for any asbestos products or operations, and thus do not provide insurance coverage for asbestos-related lawsuits. The Company does not believe that the asserted exhaustion of some of the primary insurance coverage for the 1970-1978 period will have a material adverse effect on its financial condition, liquidity, or results of operations. Management believes that the number of insurance carriers involved in the defense of the suits, and the significant number of policy years and policy limits under which these insurance carriers are insuring the Company, make the ultimate disposition of these lawsuits not material to the Company's consolidated financial position or results of operations. The Company is also involved in other lawsuits arising in the normal course of business. While it is not possible to predict with certainty the outcome of these matters, management is of the opinion that the disposition of these lawsuits and claims will not materially affect our consolidated financial position, liquidity or results of operations. |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | 19. Related-Party Transactions The Company has a 50 % ownership in Signison, a German based hearing health company. Signison owes the Company a notes receivable, net of allowances, of $ 492 which is included in investment in partnership on the balance sheet as of June 30, 2020. |
Revenue, Net
Revenue, Net | 6 Months Ended |
Jun. 30, 2020 | |
Revenue, Net [Abstract] | |
Revenue, Net | 20. Revenue, Net Medical market revenue recognition- Customer orders from the medical market consist of a specified number of assembled and customized parts that the customer further integrates into their production process to produce market ready products. Customer orders do not include additional follow-on goods or services. Each order is for a series of distinct units that comprise a single performance obligation. With the exception of prompt payment discounts, the transaction price for medical market products is the invoiced amount. Variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting transaction price are not present. All of the Company’s products manufactured for the medical market are designed to each customer’s specifications, do not have an alternative use and cannot be sold or redirected by the Company to others. The Company considers contractual arrangements, laws and legal precedent in determining enforceable right. The Company has an enforceable right to payment for any finished or in-process units, including a reasonable margin, if the customer terminates the contract for reasons other than the Company’s failure to perform as promised within our medical diabetes market and a select customer within our other medical market. For contractual arrangements in which an enforceable right exists, control of these units is deemed to transfer to the customer over time during the manufacturing process, using the same measure of progress toward satisfying the promise to deliver the units to the customer. Consequently, the transaction price is recognized as revenue over time for contractual arrangements with an enforceable right, based on actual costs incurred in the manufacturing process to date relative to total expected costs to produce all ordered units. The transaction price for contractual arrangements without an enforceable right to payment for any finished or in-process units including a reasonable margin is recognized as revenue at a point in time. Medical market products are invoiced when shipped and paid within normal commercial terms. The Company records a contract asset for revenue recognized over time in the production process for customized products that have not been shipped or invoiced to the customer. Revenues recognized from our recently acquired subsidiary, Emerald, have been classified within Other Medical. The following tables set forth, for the periods indicated, timing of revenue recognition by market: Timing of revenue recognition for the three months ended June 30, 2020: Products and services transferred at point in time Products and services transferred over time Total Medical: Diabetes $ - $ 13,521 $ 13,521 Other Medical 2,995 1,602 4,597 Hearing Health: Value Based DTEC 1,387 - 1,387 Value Based ITEC 1,365 - 1,365 Legacy OEM 1,721 - 1,721 Professional Audio Communications: 1,011 - 1,011 Total Revenue, net $ 8,479 $ 15,123 $ 23,602 Timing of revenue recognition for the six months ended June 30, 2020: Products and services transferred at point in time Products and services transferred over time Total Medical: Diabetes $ - $ 27,051 $ 27,051 Other Medical 4,181 3,244 7,425 Hearing Health: Value Based DTEC 2,560 - 2,560 Value Based ITEC 2,109 - 2,109 Legacy OEM 3,685 - 3,685 Professional Audio Communications: 2,275 - 2,275 Total Revenue, net $ 14,810 $ 30,295 $ 45,105 Timing of revenue recognition for the three months ended June 30, 2019: Products and services transferred at point in time Products and services transferred over time Total Medical: Diabetes $ - $ 17,950 $ 17,950 Other Medical - 2,942 2,942 Hearing Health: Value Based DTEC 1,736 - 1,736 Value Based ITEC 2,399 - 2,399 Legacy OEM 2,540 - 2,540 Professional Audio Communications: 1,769 - 1,769 Total Revenue, net $ 8,444 $ 20,892 $ 29,336 Timing of revenue recognition for the six months ended June 30, 2019: Products and services transferred at point in time Products and services transferred over time Total Medical: Diabetes $ - $ 35,114 $ 35,114 Other Medical - 6,571 6,571 Hearing Health: Value Based DTEC 3,366 - 3,366 Value Based ITEC 4,976 - 4,976 Legacy OEM 5,343 - 5,343 Professional Audio Communications: 3,536 - 3,536 Total Revenue, net $ 17,221 $ 41,685 $ 58,906 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events COVID-19 Pandemic [update] There are many uncertainties regarding the COVID-19 pandemic, and the Company is closely monitoring the impact of the pandemic on all aspects of its business, including how it will impact its customers, employees, suppliers, vendors, and business partners. We are unable to predict the impact that the COVID-19 pandemic will have on our financial position and operating results due to numerous uncertainties. The Company expects to continue to assess the evolving impact of the COVID-19 pandemic and intends to make adjustments to its responses accordingly. |
General (Policy)
General (Policy) | 6 Months Ended |
Jun. 30, 2020 | |
General [Abstract] | |
Reclassification | Reclassification The Company changed the classification of certain other assets, net to intangible assets on the Consolidated Condensed Balance Sheet for the period ended June 30, 2020. To conform with the current period presentation, amounts previously reported as other assets, net, of $ 5,545 as of December 31, 2019, have been reclassified to intangible assets to conform with the current period presentation. Refer to Note 11 for additional details. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policy) | 6 Months Ended |
Jun. 30, 2020 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses Topic 326, which requires certain financial assets to be measured at amortized cost net of an allowance for estimated credit losses, such that the net receivable represents the present value of expected cash collection. In addition, this standard update requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses must be based on all relevant information including historical information, current conditions, and reasonable and supportable forecasts that affect the collectability of the amounts. Topic 326 is effective for interim and annual periods beginning January 1, 2022 for smaller reporting companies. This standard update is not expected to have a material impact on our financial position, results of operations and cash flows. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes as part of its overall simplification initiative to reduce costs and complexity in applying accounting standards while maintaining or improving the usefulness of the information provided to users of the financial statements. Amendments include removal of certain exceptions to the general principals of ASC 740, Income Taxes , and simplification in several other areas such as accounting for franchise tax (or similar tax) that is partially based on income. ASU 2019-12 is effective for interim and annual periods beginning after December 15, 2020. This standard update is not expected to have a material impact on our financial position, results of operations and cash flows. In January 2020, the FASB issued ASU 2020-01, Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 , which clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under ASC 323, Investments – Equity Method and Joint Venture , for the purposes of applying the measurement alternative in accordance with ASC 321, Investments – Equity Securities , immediately before applying or upon discontinuing the equity method. ASU 2020-01 is effective for interim and annual periods beginning after December 15, 2020. This standard update is not expected to have a material impact on our financial position, results of operations and cash flows. In April 2020, the FASB issued ASU 2020-04, Reference Rate Reform Topic 848 , which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. Topic 848 provides optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. This standard update is not expected to have a material impact on our financial position, results of operations and cash flows. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Acquisitions [Abstract] | |
Schedule Of Business Acquisition Purchase Price | Current assets $ 3,104 Machinery and equipment 172 Intangible assets 6,400 Goodwill 4,041 Noncurrent assets 169 Current liabilities ( 983 ) Noncurrent liabilities ( 1,088 ) Total consideration paid $ 11,815 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations [Abstract] | |
Schedule Of Discontinued Operations Balance Sheet | December 31, 2019 Other current assets $ 80 Other accrued liabilities 77 Net assets (liabilities) $ 3 |
Schedule Of Loss On Sale Of Discontinued Operations | Cash and cash equivalents $ 5 Accounts receivable, net 72 Write-down of inventory to realizable value 278 Write-down of property, plant and equipment to salvage value 298 Other assets and liabilities, net 71 Realized loss on foreign currency 280 Net assets disposed 1,004 Additional disposal costs, net 112 Loss on disposal of discontinued operations $ 1,116 |
Summary Of Results Of Discontinued Operations | Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Revenue, net $ 529 $ 1,068 Cost of goods sold 321 667 Gross profit 208 401 Sales and marketing 167 314 General and administrative 446 684 Total operating expenses 613 998 Loss from discontinued operations $ ( 405 ) $ ( 597 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary Of Data By Industry Segment | For the Three Months Ended June 30, 2020 Body Worn Devices Hearing Health DTEC Total Revenue, net $ 22,215 $ 1,387 $ 23,602 Loss from continuing operations before income taxes and discontinued operations ( 1,351 ) ( 894 ) ( 2,245 ) Depreciation and amortization 1,106 26 1,132 Capital expenditures 274 - 274 For the Six Months Ended June 30, 2020 Body Worn Devices Hearing Health DTEC Total Revenue, net $ 42,545 $ 2,560 $ 45,105 Loss from continuing operations before income taxes and discontinued operations ( 2,429 ) ( 1,777 ) ( 4,206 ) Depreciation and amortization 2,001 52 2,053 Capital expenditures 1,952 - 1,952 For the Three Months Ended June 30, 2019 Body Worn Devices Hearing Health DTEC Total Revenue, net $ 27,600 $ 1,736 $ 29,336 Income (loss) from continuing operations before income taxes and discontinued operations 1,775 ( 5,168 ) ( 3,393 ) Depreciation and amortization 772 46 818 Capital expenditures 1,343 62 1,405 For the Six Months Ended June 30, 2019 Body Worn Devices Hearing Health DTEC Total Revenue, net $ 55,540 $ 3,366 $ 58,906 Income (loss) from continuing operations before income taxes and discontinued operations 4,356 ( 6,650 ) ( 2,294 ) Depreciation and amortization 1,498 130 1,628 Capital expenditures 2,277 82 2,359 |
Summary Of Identifiable Assets | June 30, December 31, 2020 2019 Body Worn Devices: Identifiable assets (excluding goodwill) $ 100,547 $ 101,311 Goodwill 13,592 9,551 Hearing Health DTEC: Identifiable assets (excluding goodwill) 1,913 2,651 |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Geographical Distribution Of Long-Lived Assets, Net | June 30, December 31, 2020 2019 United States $ 13,053 $ 12,215 Singapore 1,323 1,263 Other 55 73 Consolidated $ 14,431 $ 13,551 |
Geographical Distribution Of Net Revenue | Three Months Ended Six Months Ended Net Revenue to Geographical Areas June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 United States $ 17,228 $ 24,361 $ 35,016 $ 48,576 Europe 957 1,568 2,144 3,232 Asia 2,791 3,219 4,991 6,728 All other countries 2,625 188 2,953 370 Consolidated $ 23,602 $ 29,336 $ 45,105 $ 58,906 |
Investment In Partnerships (Tab
Investment In Partnerships (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investment In Partnerships [Abstract] | |
Investments in Partnerships | June 30, December 31, 2020 2019 Investment in Signison $ 459 $ 852 Other 236 308 Total $ 695 $ 1,160 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments Securities [Abstract] | |
Summary Of Maturity Dates Of Investments | The maturity dates of our investments as of June 30, 2020 are as follows: Less than one year 1-5 years Total Commercial Paper Original Maturities of 91 Days or More $ 2,494 $ - $ 2,494 Corporate Notes and Bonds 17,427 3,023 20,450 Total Investments $ 19,921 $ 3,023 $ 22,944 The maturity dates of our investments as of December 31, 2019 are as follows: Less than one year 1-5 years Total Commercial Paper Original Maturities of 91 Days or More $ 8,461 $ - $ 8,461 Corporate Notes and Bonds 14,990 8,629 23,619 Total Investments $ 23,451 $ 8,629 $ 32,080 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventories [Abstract] | |
Schedule Of Inventories | Raw materials Work-in process Finished products and components Total June 30, 2020 Domestic $ 11,578 $ 1,650 $ 3,026 $ 16,254 Foreign 4,023 597 160 4,780 Total $ 15,601 $ 2,247 $ 3,186 $ 21,034 December 31, 2019 Domestic $ 10,379 $ 736 $ 2,375 $ 13,490 Foreign 2,482 215 190 2,887 Total $ 12,861 $ 951 $ 2,565 $ 16,377 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Intangible Assets [Abstract] | |
Summary Of Intangible Assets | June 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer list $ 6,400 $ ( 67 ) $ - $ - Self-fitting software* 3,975 ( 199 ) 3,679 - Technology access* 5,110 ( 3,440 ) 5,110 ( 3,244 ) Total $ 15,485 $ ( 3,706 ) $ 8,789 $ ( 3,244 ) |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Accrued Liabilities [Abstract] | |
Components Of Other Accrued Liabilities | June 30, 2020 December 31, 2019 Pension $ 120 $ 120 Postretirement benefit obligation 71 71 Accrued stock compensation 400 - Deferred revenue 276 327 Current self-fitting software liability 243 285 Current technology access liability 989 1,236 Current earn-out contingent consideration liability 1,097 - Other 1,484 830 Total $ 4,680 $ 2,869 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Long-Term Liabilities [Abstract] | |
Schedule Of Other Long-Term Liabilities | June 30, December 31, 2020 2019 Noncurrent self-fitting software liability $ 825 $ 922 Noncurrent technology access liability 742 989 Noncurrent earn-out contingent consideration liability 2,317 - Other 4 260 Total $ 3,888 $ 2,171 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Summary Of Lease Costs By Type | Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Lease cost Finance lease cost: Amortization of right-of-use assets $ 26 $ 24 $ 52 $ 49 Interest on lease liabilities 1 2 3 5 Operating lease cost 393 457 874 917 Variable lease cost* 148 141 299 279 Total lease cost $ 568 $ 624 $ 1,228 $ 1,250 *Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for our domestic and foreign building leases. |
Maturities Of Lease Liabilities | Operating Leases Financing Leases Total 2020 $ 879 $ 39 $ 918 2021 1,503 24 1,528 2022 1,013 3 1,016 2023 414 - 414 2024 92 - 92 2025 and thereafter - - - Total lease payments 3,900 67 3,967 Less: Interest ( 269 ) ( 9 ) ( 278 ) Present value of lease liabilities $ 3,631 $ 58 $ 3,689 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Abstract] | |
Domestic And Foreign Income Taxes (Benefits) | Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 United States $ ( 1,994 ) $ ( 3,639 ) $ ( 3,836 ) $ ( 2,755 ) Singapore ( 278 ) 104 ( 431 ) 222 Indonesia 17 19 35 40 Germany 10 123 26 199 (Loss) income from continuing operations before income taxes and discontinued operations $ ( 2,245 ) $ ( 3,393 ) $ ( 4,206 ) $ ( 2,294 ) |
Shareholders' Equity And Stoc_2
Shareholders' Equity And Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Shareholder' Equity And Stock-Based Compensation [Abstract] | |
Summary Of Stock Option Activity | Outstanding Awards Stock Options RSUs Total Stock Option Weighted-Average Exercise Price (a) Aggregate Intrinsic Value Outstanding at December 31, 2019 746 128 874 $ 6.39 Awards granted - 100 100 - Awards exercised or released ( 42 ) ( 55 ) ( 97 ) 4.31 Outstanding at June 30, 2020 704 173 877 $ 6.52 $ 7,271 Exercisable at June 30, 2020 682 34 682 $ 6.50 $ 5,247 Available for future grant at December 31, 2019 183 Available for future grant at June 30, 2020 114 (a) The weighted average exercise price calculation does not include outstanding RSUs |
Income Per Share (Tables)
Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Per Share [Abstract] | |
Reconciliation Between Basic And Diluted Earnings Per Share | Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Numerator: Loss from continuing operations before discontinued operations $ ( 2,274 ) $ ( 3,509 ) $ ( 4,253 ) $ ( 2,541 ) Loss from discontinued operations (Note 5) - ( 1,521 ) - ( 1,713 ) Less: Income allocated to non-controlling interest ( 7 ) - ( 7 ) - Net loss attributable to IntriCon shareholders $ ( 2,281 ) $ ( 5,030 ) $ ( 4,260 ) $ ( 4,254 ) Denominator: Basic – weighted shares outstanding 8,881 8,743 8,847 8,724 Weighted shares assumed upon exercise of stock awards - - - - Diluted – weighted shares outstanding 8,881 8,743 8,847 8,724 Basic loss per share attributable to IntriCon shareholders: Continuing operations $ ( 0.26 ) $ ( 0.40 ) $ ( 0.48 ) $ ( 0.29 ) Discontinued operations - ( 0.17 ) - ( 0.20 ) Net loss per share: $ ( 0.26 ) $ ( 0.57 ) $ ( 0.48 ) $ ( 0.49 ) Diluted loss per share attributable to IntriCon shareholders: Continuing operations $ ( 0.26 ) $ ( 0.40 ) $ ( 0.48 ) $ ( 0.29 ) Discontinued operations - ( 0.17 ) - ( 0.20 ) Net loss per share: $ ( 0.26 ) $ ( 0.57 ) $ ( 0.48 ) $ ( 0.49 ) |
Revenue, Net (Tables)
Revenue, Net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue, Net [Abstract] | |
Schedule Of Net Revenue By Market | Timing of revenue recognition for the three months ended June 30, 2020: Products and services transferred at point in time Products and services transferred over time Total Medical: Diabetes $ - $ 13,521 $ 13,521 Other Medical 2,995 1,602 4,597 Hearing Health: Value Based DTEC 1,387 - 1,387 Value Based ITEC 1,365 - 1,365 Legacy OEM 1,721 - 1,721 Professional Audio Communications: 1,011 - 1,011 Total Revenue, net $ 8,479 $ 15,123 $ 23,602 Timing of revenue recognition for the six months ended June 30, 2020: Products and services transferred at point in time Products and services transferred over time Total Medical: Diabetes $ - $ 27,051 $ 27,051 Other Medical 4,181 3,244 7,425 Hearing Health: Value Based DTEC 2,560 - 2,560 Value Based ITEC 2,109 - 2,109 Legacy OEM 3,685 - 3,685 Professional Audio Communications: 2,275 - 2,275 Total Revenue, net $ 14,810 $ 30,295 $ 45,105 Timing of revenue recognition for the three months ended June 30, 2019: Products and services transferred at point in time Products and services transferred over time Total Medical: Diabetes $ - $ 17,950 $ 17,950 Other Medical - 2,942 2,942 Hearing Health: Value Based DTEC 1,736 - 1,736 Value Based ITEC 2,399 - 2,399 Legacy OEM 2,540 - 2,540 Professional Audio Communications: 1,769 - 1,769 Total Revenue, net $ 8,444 $ 20,892 $ 29,336 Timing of revenue recognition for the six months ended June 30, 2019: Products and services transferred at point in time Products and services transferred over time Total Medical: Diabetes $ - $ 35,114 $ 35,114 Other Medical - 6,571 6,571 Hearing Health: Value Based DTEC 3,366 - 3,366 Value Based ITEC 4,976 - 4,976 Legacy OEM 5,343 - 5,343 Professional Audio Communications: 3,536 - 3,536 Total Revenue, net $ 17,221 $ 41,685 $ 58,906 |
General (Narrative) (Details)
General (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Reclassification [Line Items] | ||
Other assets, net | $ 326 | $ 510 |
Intangible Assets | $ 11,779 | 5,545 |
Reclassification [Member] | ||
Reclassification [Line Items] | ||
Other assets, net | (5,545) | |
Intangible Assets | $ 5,545 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | May 18, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Purchase price, paid in cash | $ 7,128 | |||
Intangible Assets | $ 6,400 | |||
Goodwill | $ 4,041 | $ 13,592 | $ 13,592 | $ 9,551 |
Emerald Medical Services Pte., Ltd [Member] | Emerald Extrusion Services LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage | 54.00% | |||
Emerald Medical Services Pte., Ltd [Member] | Earn-Out Payment, Net Revenue During First Year [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenues | $ 11,000 | |||
Emerald Medical Services Pte., Ltd [Member] | Earn-Out Payment, Net Revenue During First Year [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenues | 9,000 | |||
Emerald Medical Services Pte., Ltd [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | May 18, 2020 | |||
Purchase price | 11,815 | |||
Purchase price, paid in cash | 7,128 | |||
Post-closing working capital adjustment | 291 | |||
Common stock value of issuance from business combination | $ 982 | |||
Contingent consideration liability, term | 18 months | |||
Contingent consideration amount | $ 3,414 | |||
Shares issued, acquisition related | 80 | |||
Additional earn-out payments percent | 28.00% | |||
Acquisition costs | 493 | $ 493 | ||
Revenue attributable to acquirees | 1,146 | |||
Net income | $ 48 | |||
Intangible Assets | $ 6,400 | |||
Acquired finite-lived intangible assets amortization period | 8 years | |||
Deferred tax liability, book-tax difference from amortization of intangible assets | 1,055 | |||
Goodwill | 4,041 | |||
Emerald Medical Services Pte., Ltd [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Earn out | 1,000 | |||
Emerald Medical Services Pte., Ltd [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Earn out | 333 | |||
Emerald Medical Services Pte., Ltd [Member] | Cash Payment, Regulatory Approval In Japan [Member] | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration liability, term | 12 months | |||
Contingent consideration amount | $ 500 | |||
Emerald Medical Services Pte., Ltd [Member] | Additional Earn-Out Payment [Member] | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration liability, term | 3 years |
Acquisitions (Schedule Of Busin
Acquisitions (Schedule Of Business Acquisition Purchase Price) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | May 18, 2020 | Dec. 31, 2019 |
Acquisitions [Abstract] | |||
Current assets | $ 3,104 | ||
Machinery and equipment | 172 | ||
Intangible Assets | 6,400 | ||
Goodwill | $ 13,592 | 4,041 | $ 9,551 |
Noncurrent assets | 169 | ||
Current liabilities | (983) | ||
Noncurrent liabilities | (1,088) | ||
Total consideration paid | $ 11,815 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 1,171 | $ 1,171 |
Outstanding restructuring liabilities | 586 | 586 |
One-time Employee Termination Benefits [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 732 | 732 |
Lease Modification Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 326 | 326 |
Losses On Disposal Of Assets [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 113 | $ 113 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Discontinued Operations [Abstract] | ||||
Income tax expense/benefit related to discontinued operations | $ 0 | $ 0 | $ 0 | $ 0 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of Discontinued Operations Balance Sheet) (Details) - Discontinued Operations, Disposed of by Sale [Member] $ in Thousands | Dec. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Other current assets | $ 80 |
Other accrued liabilities | 77 |
Net assets (liabilities) | $ 3 |
Discontinued Operations (Sche_2
Discontinued Operations (Schedule Of Loss On Sale Of Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss on disposal of discontinued operations | $ 1,116 | $ 1,116 |
Discontinued Operations, Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | 5 | |
Accounts receivable, net | 72 | |
Write-down of inventory to realizable value | 278 | |
Write-down of property, plant and equipment to salvage value | 298 | |
Other assets and liabilities, net | 71 | |
Realized loss on foreign currency | 280 | |
Net assets disposed | 1,004 | |
Additional disposal costs, net | 112 | |
Loss on disposal of discontinued operations | $ 1,116 |
Discontinued Operations (Summar
Discontinued Operations (Summary Of Results Of Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from discontinued operations | $ (405) | $ (597) |
Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue, net | 529 | 1,068 |
Cost of goods sold | 321 | 667 |
Gross profit | 208 | 401 |
Sales and marketing | 167 | 314 |
General and administrative | 446 | 684 |
Total operating expenses | 613 | 998 |
Loss from discontinued operations | $ (405) | $ (597) |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting (Summary Of D
Segment Reporting (Summary Of Data By Industry Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenue, net | $ 23,602 | $ 29,336 | $ 45,105 | $ 58,906 |
(Loss) income from continuing operations before income taxes and discontinued operations | (2,245) | (3,393) | (4,206) | (2,294) |
Depreciation and amortization | 1,132 | 818 | 2,053 | 1,628 |
Capital expenditures | 274 | 1,405 | 1,952 | 2,359 |
Body Worn Devices [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 22,215 | 27,600 | 42,545 | 55,540 |
(Loss) income from continuing operations before income taxes and discontinued operations | (1,351) | 1,775 | (2,429) | 4,356 |
Depreciation and amortization | 1,106 | 772 | 2,001 | 1,498 |
Capital expenditures | 274 | 1,343 | 1,952 | 2,277 |
Hearing Health DTEC [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 1,387 | 1,736 | 2,560 | 3,366 |
(Loss) income from continuing operations before income taxes and discontinued operations | (894) | (5,168) | (1,777) | (6,650) |
Depreciation and amortization | $ 26 | 46 | $ 52 | 130 |
Capital expenditures | $ 62 | $ 82 |
Segment Reporting (Summary Of I
Segment Reporting (Summary Of Identifiable Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | May 18, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | |||
Goodwill | $ 13,592 | $ 4,041 | $ 9,551 |
Operating Segments [Member] | Body Worn Devices [Member] | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets (excluding goodwill) | 100,547 | 101,311 | |
Goodwill | 13,592 | 9,551 | |
Operating Segments [Member] | Hearing Health DTEC [Member] | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets (excluding goodwill) | $ 1,913 | $ 2,651 |
Geographic Information (Narrati
Geographic Information (Narrative) (Details) - customer | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Net Revenue [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers | 1 | 1 | 1 | 1 | |
Percentage of risk | 61.00% | 61.00% | 62.00% | 60.00% | |
Accounts Receivable [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers | 2 | 2 | |||
Percentage of risk | 63.00% | 51.00% | |||
Contract Assets [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers | 1 | 1 | |||
Percentage of risk | 84.00% | 86.00% |
Geographic Information (Geograp
Geographic Information (Geographical Distribution Of Long-Lived Assets, Net) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 14,431 | $ 13,551 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 13,053 | 12,215 |
Singapore [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 1,323 | 1,263 |
Other Geographical [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 55 | $ 73 |
Geographic Information (Geogr_2
Geographic Information (Geographical Distribution Of Net Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | $ 23,602 | $ 29,336 | $ 45,105 | $ 58,906 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | 17,228 | 24,361 | 35,016 | 48,576 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | 957 | 1,568 | 2,144 | 3,232 |
Asia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | 2,791 | 3,219 | 4,991 | 6,728 |
All Other Countries [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | $ 2,625 | $ 188 | $ 2,953 | $ 370 |
Investment In Partnerships (Nar
Investment In Partnerships (Narrative) (Details) | Jun. 30, 2020 |
Signison [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity method, ownership interest | 50.00% |
Investment In Partnerships (Inv
Investment In Partnerships (Investments in Partnerships) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Total | $ 695 | $ 1,160 |
Signison [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total | 459 | 852 |
Other Investment [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total | $ 236 | $ 308 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Level 2 [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | $ 6,182 | $ 7,200 |
Investment Securities (Summary
Investment Securities (Summary Of Maturity Dates Of Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less than one year | $ 19,921 | $ 23,451 |
1-5 years | 3,023 | 8,629 |
Total | 22,944 | 32,080 |
Commercial Paper Original Maturities of 91 Days or More [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less than one year | 2,494 | 8,461 |
Total | 2,494 | 8,461 |
Corporate Notes And Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less than one year | 17,427 | 14,990 |
1-5 years | 3,023 | 8,629 |
Total | $ 20,450 | $ 23,619 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Raw materials | $ 15,601 | $ 12,861 |
Work-in process | 2,247 | 951 |
Finished products and components | 3,186 | 2,565 |
Total | 21,034 | 16,377 |
Domestic [Member] | ||
Inventory [Line Items] | ||
Raw materials | 11,578 | 10,379 |
Work-in process | 1,650 | 736 |
Finished products and components | 3,026 | 2,375 |
Total | 16,254 | 13,490 |
Foreign [Member] | ||
Inventory [Line Items] | ||
Raw materials | 4,023 | 2,482 |
Work-in process | 597 | 215 |
Finished products and components | 160 | 190 |
Total | $ 4,780 | $ 2,887 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) € in Thousands, $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Jan. 31, 2019EUR (€) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 31, 2019USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Investments In Affiliates Subsidiaries Associates And Joint Ventures | $ 695 | $ 1,160 | ||
Self-Fitting Software [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets amortization period | 5 years | |||
Technology Access [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets amortization period | 7 years | |||
Soundperience [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Payment for software | € | € 1,750 | |||
Percentage relinquished after transaction | 49.00% | |||
Soundperience [Member] | Majority Owner Of Soundperience [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Investments In Affiliates Subsidiaries Associates And Joint Ventures | $ 3,679 | |||
Emerald Medical Services Pte., Ltd [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets amortization period | 8 years | |||
Emerald Medical Services Pte., Ltd [Member] | Customer List [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets amortization period | 8 years |
Intangible Assets (Summary Of I
Intangible Assets (Summary Of Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 15,485 | $ 8,789 |
Accumulated Amortization | (3,706) | (3,244) |
Customer List [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,400 | |
Accumulated Amortization | (67) | |
Self-Fitting Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,975 | 3,679 |
Accumulated Amortization | (199) | |
Technology Access [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,110 | 5,110 |
Accumulated Amortization | $ (3,440) | $ (3,244) |
Other Accrued Liabilities (Comp
Other Accrued Liabilities (Components Of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Other Accrued Liabilities [Abstract] | ||
Pension | $ 120 | $ 120 |
Postretirement benefit obligation | 71 | 71 |
Accrued stock compensation | 400 | |
Deferred revenue | 276 | 327 |
Current self-fitting software liability | 243 | 285 |
Current technology access liability | 989 | 1,236 |
Current earn-out contingent liability | 1,097 | |
Other | 1,484 | 830 |
Total | $ 4,680 | $ 2,869 |
Other Long-Term Liabilities (Sc
Other Long-Term Liabilities (Schedule Of Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Other Long-Term Liabilities [Abstract] | ||
Noncurrent self-fitting software liability | $ 825 | $ 922 |
Noncurrent technology access liability | 742 | 989 |
Noncurrent earn-out contingent liability | 2,317 | |
Other | 4 | 260 |
Total | $ 3,888 | $ 2,171 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Finance Lease, Weighted Average Discount Rate, Percent | 5.56% | 5.56% | |
Finance Lease, Weighted Average Remaining Lease Term | 1 year | 1 year | |
Operating Lease, Weighted Average Discount Rate, Percent | 5.17% | 5.17% | |
Operating Lease, Weighted Average Remaining Lease Term | 2 years 8 months 12 days | 2 years 8 months 12 days | |
Incremental borrowing rates terms, discount rates | 5 years | ||
Operating Lease, Payments | $ | $ 924 | ||
Restructuring Charges | $ | $ 1,171 | 1,171 | |
ROU asset | $ | 3,421 | 3,421 | $ 4,372 |
Lease liability | $ | 3,631 | $ 3,631 | |
Minnesota [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of leased facilities | 3 | ||
Minnesota [Member] | Lease Expiration In 2022 [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of leased facilities | 2 | ||
Minnesota [Member] | Lease Expiration In 2023 [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of leased facilities | 1 | ||
California [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of leased facilities | 1 | ||
Illinois [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of leased facilities | 1 | ||
Singapore [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of leased facilities | 2 | ||
Indonesia [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of leased facilities | 1 | ||
ROU asset | $ | 103 | $ 103 | |
Lease liability | $ | $ 72 | $ 72 | |
Germany [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of leased facilities | 1 | ||
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 1 year | 1 year | |
Lessee, Operating Lease, Renewal Term | 1 year | 1 year | |
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Renewal Term | 5 years | 5 years | |
Lease Modification Costs [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Restructuring Charges | $ | $ 326 | $ 326 | |
Percent of square footage reduced | 65.00% |
Leases (Summary Of Lease Costs
Leases (Summary Of Lease Costs By Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Amortization of right-of-use assets | $ 26 | $ 24 | $ 52 | $ 49 |
Interest on lease liabilities | 1 | 2 | 3 | 5 |
Operating lease cost | 393 | 457 | 874 | 917 |
Variable lease cost | 148 | 141 | 299 | 279 |
Total lease cost | $ 568 | $ 624 | $ 1,228 | $ 1,250 |
Leases (Maturities Of Lease Lia
Leases (Maturities Of Lease Liabilities) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
Operating Leases, 2020 | $ 879 |
Operating Leases, 2021 | 1,503 |
Operating Leases, 2022 | 1,013 |
Operating Leases, 2023 | 414 |
Operating Leases, 2024 | 92 |
Operating Leases, Total lease payments | 3,900 |
Operating Leases, Less: Interest | (269) |
Operating Leases, Present value of lease liabilities | 3,631 |
Financing Leases, 2020 | 39 |
Financing Leases, 2021 | 24 |
Financing Leases, 2022 | 3 |
Financing Leases, Total lease payments | 67 |
Financing Leases, Less: Interest | (9) |
Financing Leases, Present value of lease liabilities | 58 |
Lease, Liability, 2020 | 918 |
Lease, Liability, 2021 | 1,528 |
Lease, Liability, 2022 | 1,016 |
Lease, Liability, 2023 | 414 |
Lease, Liability, 2024 | 92 |
Lease, Liability, Total lease payments | 3,967 |
Lease, Less: Interest | (278) |
Lease, Present value of lease liabilities | $ 3,689 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | May 18, 2020 | |
Income tax expense | $ 29 | $ 116 | $ 47 | $ 247 | |
CARES Act, Employee Retention Tax Credit, Amount Per Eligible Employee | $ 5 | ||||
Emerald Medical Services Pte., Ltd [Member] | |||||
Deferred tax liability, book-tax difference from amortization of intangible assets | $ 1,055 |
Income Taxes (Domestic And Fore
Income Taxes (Domestic And Foreign Income Taxes (Benefits)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||
(Loss) income from continuing operations before income taxes and discontinued operations | $ (2,245) | $ (3,393) | $ (4,206) | $ (2,294) |
United States IRS [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
(Loss) income from continuing operations before income taxes and discontinued operations | (1,994) | (3,639) | (3,836) | (2,755) |
Singapore Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
(Loss) income from continuing operations before income taxes and discontinued operations | (278) | 104 | (431) | 222 |
Indonesia [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
(Loss) income from continuing operations before income taxes and discontinued operations | 17 | 19 | 35 | 40 |
Federal Ministry Of Finance Germany [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
(Loss) income from continuing operations before income taxes and discontinued operations | $ 10 | $ 123 | $ 26 | $ 199 |
Shareholders' Equity And Stoc_3
Shareholders' Equity And Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate number of shares of common stock for which awards can be granted | 114 | 114 | 183 | ||
Number of Shares, Awards granted | 100 | ||||
Shares purchased for award | 8 | 5 | |||
Stock compensation expense | $ 1,336 | $ 537 | $ 1,712 | $ 866 | |
Cumulative non-cash stock compensation expense adjustment | 422 | ||||
Unrecognized compensation costs related to non-vested awards | $ 2,123 | $ 2,123 | |||
Unrecognized compensation costs related to non-vested awards, recognition period | 2 years 1 month 6 days | ||||
Total intrinsic value of options exercised | $ 418 | ||||
Maximum number of shares approved under purchase plan | 300 | 300 | |||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Number of Shares, Awards granted | 100 | ||||
Weighted average fair value of units granted | $ 15.61 | ||||
2006 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate number of shares of common stock for which awards can be granted | 331 | 331 | |||
Maximum [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of options | 10 years |
Shareholders' Equity And Stoc_4
Shareholders' Equity And Stock-Based Compensation (Summary Of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding | 874 | |
Number of Shares, Awards granted | 100 | |
Number of Shares, Awards exercised or vested | (97) | |
Number of Shares, Outstanding | 877 | |
Number of Shares, Exercisable | 682 | |
Number of Shares, Available for future grant at beginning of period | 183 | |
Number of Shares, Available for future grant at end of period | 114 | |
Weighted-average Exercise Price, Outstanding | [1] | $ 6.39 |
Weighted-average Exercise Price, Awards exercised or vested | [1] | 4.31 |
Weighted-average Exercise Price, Outstanding | [1] | 6.52 |
Weighted-average Exercise Price, Exercisable | [1] | $ 6.50 |
Aggregate Intrinsic Value, Outstanding | $ 7,271 | |
Aggregate Intrinsic Value, Exercisable | $ 5,247 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding | 746 | |
Number of Shares, Awards exercised or vested | (42) | |
Number of Shares, Outstanding | 704 | |
Number of Shares, Exercisable | 682 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding | 128 | |
Number of Shares, Awards granted | 100 | |
Number of Shares, Awards exercised or vested | (55) | |
Number of Shares, Outstanding | 173 | |
Number of Shares, Exercisable | 34 | |
[1] | The weighted average exercise price calculation does not include outstanding RSUs |
Income Per Share (Narrative) (D
Income Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Per Share [Abstract] | ||||
Securities excluded from computation of diluted income per share | 882 | 701 | 894 | 712 |
Income Per Share (Reconciliatio
Income Per Share (Reconciliation Between Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Per Share [Abstract] | ||||
Loss from continuing operations before discontinued operations | $ (2,274) | $ (3,509) | $ (4,253) | $ (2,541) |
Loss from discontinued operation (Note 5) | (1,521) | (1,713) | ||
Less: Income allocated to non-controlling interest | (7) | (7) | ||
Net loss attributable to IntriCon shareholders | $ (2,281) | $ (5,030) | $ (4,260) | $ (4,254) |
Basic - weighted shares outstanding | 8,881 | 8,743 | 8,847 | 8,724 |
Diluted - weighted shares outstanding | 8,881 | 8,743 | 8,847 | 8,724 |
Continuing operations | $ (0.26) | $ (0.40) | $ (0.48) | $ (0.29) |
Discontinued operations | (0.17) | (0.20) | ||
Net loss per share: | (0.26) | (0.57) | (0.48) | (0.49) |
Continuing operations | (0.26) | (0.40) | (0.48) | (0.29) |
Discontinued operations | (0.17) | (0.20) | ||
Net loss per share: | $ (0.26) | $ (0.57) | $ (0.48) | $ (0.49) |
Related-Party Transactions (Nar
Related-Party Transactions (Narrative) (Details) - Signison [Member] $ in Thousands | Jun. 30, 2020USD ($) |
Related Party Transaction [Line Items] | |
Equity method, ownership interest | 50.00% |
Note receivable | $ 492 |
Revenue, Net (Schedule Of Net R
Revenue, Net (Schedule Of Net Revenue By Market) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | $ 23,602 | $ 29,336 | $ 45,105 | $ 58,906 |
Products and Services Transferred at Point in Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 8,479 | 8,444 | 14,810 | 17,221 |
Products and Services Transferred over Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 15,123 | 20,892 | 30,295 | 41,685 |
Medical, Diabetes [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 13,521 | 17,950 | 27,051 | 35,114 |
Medical, Diabetes [Member] | Products and Services Transferred over Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 13,521 | 17,950 | 27,051 | 35,114 |
Medical, Other Medical [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 4,597 | 2,942 | 7,425 | 6,571 |
Medical, Other Medical [Member] | Products and Services Transferred at Point in Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 2,995 | 4,181 | ||
Medical, Other Medical [Member] | Products and Services Transferred over Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 1,602 | 2,942 | 3,244 | 6,571 |
Hearing Health Value Based DTEC [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 1,387 | 1,736 | 2,560 | 3,366 |
Hearing Health Value Based DTEC [Member] | Products and Services Transferred at Point in Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 1,387 | 1,736 | 2,560 | 3,366 |
Hearing Health Value Based ITEC [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 1,365 | 2,399 | 2,109 | 4,976 |
Hearing Health Value Based ITEC [Member] | Products and Services Transferred at Point in Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 1,365 | 2,399 | 2,109 | 4,976 |
Hearing Health Legacy OEM [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 1,721 | 2,540 | 3,685 | 5,343 |
Hearing Health Legacy OEM [Member] | Products and Services Transferred at Point in Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 1,721 | 2,540 | 3,685 | 5,343 |
Professional Audio Communications [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 1,011 | 1,769 | 2,275 | 3,536 |
Professional Audio Communications [Member] | Products and Services Transferred at Point in Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | $ 1,011 | $ 1,769 | $ 2,275 | $ 3,536 |