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Note 4 - Supplemental Balance Sheet Information | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Supplemental Balance Sheet Disclosures [Text Block] | Note 4 - Supplemental Balance Sheet Information
a. | Inventory , Net
Inventories are stated at the lower of cost or market with cost determined under the first -in, first -out (FIFO) method. The composition of inventories, net was:
|  | December 31, |
|  | 201 6 |  |  | 201 5 |
Raw Materials |  | $ | 14,482 |  |  | $ | 11,602 |
Work in Process |  |  | 986 |  |  |  | 1,560 |
Finished Products |  |  | 7,988 |  |  |  | 10,652 |
Total |  | $ | 23,456 |  |  | $ | 23,814 |
The December 31, 2016 inventories include $1,443 for Accutronics, which was acquired on January 13, 2016.
b. | Property, Plant and Equipment
Major classes of property, plant and equipment consisted of the following:
|  | December 31, |
|  | 201 6 |  |  | 201 5 |
Land |  | $ | 123 |  |  | $ | 123 |
Buildings and Leasehold Improvements |  |  | 7,757 |  |  |  | 7,490 |
Machinery and Equipment |  |  | 49,722 |  |  |  | 49,609 |
Furniture and Fixtures |  |  | 1,947 |  |  |  | 1,974 |
Computer Hardware and Software |  |  | 5,223 |  |  |  | 4,585 |
Construction in Progress |  |  | 421 |  |  |  | 745 |
|  |  | 65,193 |  |  |  | 64,526 |
Less – Accumulated Depreciation |  |  | (57,194 | ) |  |  | (55,488 | )
Total |  | $ | 7,999 |  |  | $ | 9,038 |
Estimated costs to complete construction-in-progress as of December 31, 2016 and 2015 were approximately $170 and $180, respectively. Depreciation expense was $2,223 and $2,401 for the years ended December 31, 2016 and 2015, respectively.
c. | Impairment of Goodwill, Intangible Assets and Long-Lived Assets
We elected to forego the qualitative assessment for our four identified reporting units and conducted a quantitative assessment. The fair value for our reporting units subjected to this quantitative test could not be determined using readily available quoted Level 1 inputs or Level 2 inputs that were observable in active markets. Therefore, we used an income approach to estimate the fair value of the reporting units, using Level 3 inputs. To estimate the fair value of the reporting units, we used significant estimates and judgments, including an assessment of our future revenue prospects, particularly government/defense opportunities, as well as our estimates of the probabilities of the opportunities being funded, awarded, and awarded to us. Other key estimates and factors used in the valuation model included revenue growth rates and profit margins based on internal forecasts, as well as industry and market based terminal growth rates, inputs to the weighted-average cost of capital used to discount future cash flows, and earnings multiples. As a result of the goodwill impairment tests performed during 2016 and 2015, we determined that an impairment was not required. Similarly, for our four other indefinite-lived intangible assets (trademarks), we elected to forego the qualitative assessment and proceeded to perform quantitative assessments. The fair value for our indefinite-lived intangible assets subjected to this quantitative test could not be determined using readily available quoted Level 1 inputs or Level 2 inputs that were observable in active markets. Therefore, we used a relief from royalty approach, to estimate the fair value of the indefinite-lived intangible assets, using Level 3 inputs. This method also required us to use significant estimates and judgmental factors. The key estimates and factors used in the valuation model included revenue growth rates, as well as industry and market based terminal growth rates, inputs to the weighted-average cost of capital used to discount future cash flows, and determined royalty rates from market data. As a result of the impairment tests performed during 2016, we determined that no impairments were required. As a result of the impairment tests performed during 2015, we determined that an impairment amounting to $150 was required to reduce the carrying value of one Communications Systems business trademark to its estimated fair value. There is a possibility that our goodwill and other intangible assets, particularly in our Communications Systems business, could be impaired should there be a significant change in our internal forecasts and other assumptions we use in our impairment analysis.
d. | Goodwill
The following table summarizes the goodwill activity by segment for the years ended December 31, 2016 and 2015:
|  | Battery & Energy Products |  |  | Communi- cations Systems |  |  | Total |
Balance – January 1, 2015 |  | $ | 4,914 |  |  | $ | 11,493 |  |  | $ | 16,407 |
Effect of Foreign Currency Translation |  |  | (124 | ) |  |  | - |  |  |  | (124 | )
Balance – December 31, 2015 |  |  | 4,790 |  |  |  | 11,493 |  |  |  | 16,283 |
Acquisition of Accutronics |  |  | 4,487 |  |  |  | - |  |  |  | 4,487 |
Effect of Foreign Currency Translation |  |  | (805 | ) |  |  | - |  |  |  | (805 | )
Balance – December 31, 2016 |  | $ | 8,472 |  |  | $ | 11,493 |  |  | $ | 19,965 |
e. | Other Intangible Assets
The composition of intangible assets was:
|  | December 31, 201 6 |
|  | Cost |  |  | Accumulated Amortization |  |  | Net |
Trademarks |  | $ | 3,404 |  |  | $ | - |  |  | $ | 3,404 |
Customer Relationships |  |  | 6,395 |  |  |  | 3,975 |  |  |  | 2,420 |
Patents and Technology |  |  | 5,455 |  |  |  | 4,417 |  |  |  | 1,038 |
Distributor Relationships |  |  | 377 |  |  |  | 368 |  |  |  | 9 |
Trade Name |  |  | 359 |  |  |  | 36 |  |  |  | 323 |
Total Other Intangible Assets |  | $ | 15,990 |  |  | $ | 8,796 |  |  | $ | 7,194 |
|  | December 31, 201 5 |
|  | Cost |  |  | Accumulated Amortization |  |  | Net |
Trademarks |  | $ | 3,411 |  |  | $ | - |  |  | $ | 3,411 |
Patents and Technology |  |  | 4,482 |  |  |  | 4,217 |  |  |  | 265 |
Customer Relationships |  |  | 3,971 |  |  |  | 3,716 |  |  |  | 255 |
Distributor Relationships |  |  | 370 |  |  |  | 355 |  |  |  | 15 |
Total Other Intangible Assets |  | $ | 12,234 |  |  | $ | 8,288 |  |  | $ | 3,946 |
Amortization of intangible assets was included in the following financial statement captions:
|  | Year ended December 31, |
|  | 201 6 |  |  | 201 5 |
Research and Development Expense |  | $ | 200 |  |  | $ | 130 |
Selling, General and Administrative Expense |  |  | 303 |  |  |  | 105 |
Total |  | $ | 503 |  |  | $ | 235 |
Except for the impairment charge recorded against a Communications Systems trademark in 2015, the change in the cost value of total intangible assets is a result of the acquisition of Accutronics on January 13, 2016 and the effect of foreign currency exchange rate fluctuations.

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