Note

- Supplemental Balance Sheet Information

a.	Inventory , N et

Inventories are stated at the lower of cost or net realizable value with cost determined under the

first

-in,

first

-out (FIFO) method. The composition of inventories

, net was:

	December 31,
	201 7		201 6
Raw M aterials	$	14,606	$	14,482
Work in P rocess		2,013		986
Finished P roducts		9,707		7,988
Total	$	26,326	$	23,456

b.	Property, Plant and Equipment

Major classes of property, plant and equipment consisted of the following:

	December 31,
	201 7			201 6
Land	$	123		$	123
Buildings and Leasehold I mprovements		7,858			7,757
Machinery and E quipment		50,852			49,722
Furniture and F ixtures		2,005			1,947
Computer Hardware and S oftware		5,338			5,223
Construction in P rogress		535			421
		66,711			65,193
Less – Accumulated Depreciation		(59,141	)		(57,194	)
Total	$	7,570		$	7,999

Estimated

costs to complete construction-in-progress as of

December 31, 2017

and

2016

were approximately

$5,136

and

$170,

respectively.

Depreciati

on expense was

$2,005

and

$2,223

for the years ended

December 31, 2017

and

2016,

respectively.

c.	Goodwill and Other Intangible Assets

The Company performed its annual impairment tests of goodwill and other indefinite-lived intangible assets as of

October 1, 2017.

The Company changed the date of its annual impairment test in

2017

from

December 31

to the

first

day of the

fourth

quarter. T

he change was made for administrative purposes and did

not

materially impact the estimated fair values.

The Company performed a quantitative impairment test of its

four

identified goodwill reporting units. The fair value for the reporting units could

not

be determined using readily available quoted Level

inputs or Level

inputs that were observable in active markets. Therefore, we used a discounted cash flow model to estimate the fair value of the reporting units, using Level

inputs. To estimate the fair value of the reporting units, we used significant estimates and judgments, including an assessment of our future revenue prospects, revenue growth rates and profit margins based on internal forecasts, industry and market based terminal growth rates, inputs to the weighted-average cost of capital used to discount future cash flows, and earnings multiples.

The Company performed a quantitative impairment test of its

four

other indefinite-lived intangible assets (trademarks). The fair value of our tradem

arks could

not

be determined using readily available quoted Level

inputs or Level

inputs that were observable in active markets. Therefore, we used a relief from royalty approach to estimate the fair value of our trademarks, using Level

inputs. Significant estimates and judgments included an assessment of our future revenue prospects, industry and market based terminal growth rates, inputs to the weighted-average cost of capital used to discount future cash flows, and royalty rates based on external market data.

As a result of the impairment tests performed for

2017

and

2016,

we determined that

impairments existed. Fair value exceeded carrying value for all reporting units and trademarks by more than

10%.

There is a possibility that our goodwill and other intangible assets could be impaired in the future should there be a significant change in our internal forecasts and other assumptions used in our impairment analysis.

The following table summarizes the goodwill activity by segment for the years ended

December 31,

201

and

2016:

	Battery & Energy Products			Communi- cations Systems		Total
Balance – January 1, 2016	$	4,790		$	11,493	$	16,283
Acquisition of Accutronics		4,487			-		4,487
Effect of Foreign Currency T ranslation		(805	)		-		(805	)
Balance – December 31, 2016		8,472			11,493		19,965
Effect of Foreign Currency T ranslation		493			-		493
Balance – December 31, 2017	$	8,965		$	11,493	$	20,458

The composition of intangible assets was:

	December 31, 201 7
	Cost		Accumulated Amortization		Net
Trademarks	$	3,411	$	-	$	3,411
Customer R elationships		6,618		4,208		2,410
Patents and T echnology		5,545		4,595		950
Distributor R elationships		377		377		-
Trade Name		393		79		314
Total Other Intangible A ssets	$	16,344	$	9,259	$	7,085

	December 31, 201 6
	Cost		Accumulated Amortization		Net
Trademarks	$	3,404	$	-	$	3,404
Customer R elationships		6,395		3,975		2,420
Patents and T echnology		5,455		4,417		1,038
Distributor R elationships		377		368		9
Trade Name		359		36		323
Total Other Intangible A ssets	$	15,990	$	8,796	$	7,194

The change in the cost value of other intangible assets is a result of the effect of foreign currency translations.

Amortization of

other intangible assets was included in the following financial statement captions:

	Year ended December 31,
	201 7		201 6
Research and Development Expense	$	165	$	200
Selling, General and Administrative E xpense		257		303
Total	$	422	$	503

Future amortization expense of amortizable intangible assets will be approximately

$400,

$379,

$367,

$348

and

$334

for the fiscal years ending

December 31, 2018

through

2022,

respectively.