Note

- Supplemental Balance Sheet Information

a.	Cash and Restricted Cash

The Company had cash and restricted cash totaling

$25,934

and

$18,330

as of

December 31, 2018

and

2017,

respectively.

	December 31,		December 31,
	2018		2017
Cash	$	25,583	$	18,241
Restricted Cash		351		89
Total	$	25,934	$	18,330

As of

December 31, 2018,

restricted cash includes a government grant awarded in the People’s Republic of China to fund specified technological research and development initiatives. The grant proceeds will be realized to income as a direct offset to expense as the related expenditures are incurred. For the year ended

December 31, 2018,

grant proceeds of

$97

were realized as an offset to expense as expenditures were incurred. Restricted cash as of

December 31, 2018

and

2017

includes deposits withheld by the Dutch tax authorities and

third

party VAT representatives in connection with a previously utilized logistics arrangement in the Netherlands. Restricted cash is included as a component of the cash balance for purposes of the consolidated statements of cash flows.

b.	Inventory, Net

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,
	2018		2017
Raw Materials	$	13,274	$	14,606
Work in Process		2,016		2,013
Finished Products		7,553		9,707
Total	$	22,843	$	26,326

c.	Property, Plant and Equipment

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

	December 31,
	2018			2017
Land	$	123		$	123
Buildings and Leasehold Improvements		8,267			7,858
Machinery and Equipment		51,261			50,852
Furniture and Fixtures		2,058			2,005
Computer Hardware and Software		5,590			5,338
Construction in Progress		4,302			535
		71,601			66,711
Less – Accumulated Depreciation		(60,857	)		(59,141	)
Total	$	10,744		$	7,570

Estimated costs to complete construction-in-progress as of

December 31, 2018

and

2017

were approximately

$2,870

and

$5,136,

respectively.

Depreciation expense was

$1,972

and

$2,005

for the years ended

December 31, 2018

and

2017,

respectively.

d.	Goodwill and Other Intangible Assets

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

first

day of the fiscal

fourth

quarter of

2018

and

2017.

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 trademarks 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

2018

and

2017,

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, 2018

and

2017:

	Battery & Energy Products			Communi- cations Systems		Total
Balance – January 1, 2017	$	8,472		$	11,493	$	19,965
Effect of Foreign Currency Translation		493			-		493
Balance – December 31, 2017		8,965			11,493		20,458
Effect of Foreign Currency Translation		(349	)		-		(349	)
Balance – December 31, 2018	$	8,616		$	11,493	$	20,109

The composition of intangible assets was:

	December 31, 2018
	Cost		Accumulated Amortization		Net
Trademarks	$	3,405	$	-	$	3,405
Customer Relationships		6,471		4,392		2,079
Patents and Technology		5,486		4,725		761
Distributor Relationships		377		377		-
Trade Name		370		111		259
Total Other Intangible Assets	$	16,109	$	9,605	$	6,504

	December 31, 2017
	Cost		Accumulated Amortization		Net
Trademarks	$	3,411	$	-	$	3,411
Customer Relationships		6,618		4,208		2,410
Patents and Technology		5,545		4,595		950
Distributor Relationships		377		377		-
Trade Name		393		79		314
Total Other Intangible Assets	$	16,344	$	9,259	$	7,085

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,
	2018		2017
Research and Development Expense	$	147	$	165
Selling, General and Administrative Expense		250		257
Total	$	397	$	422

Future amortization expense of amortizable intangible assets will be approximately

$362,

$349,

$330,

$315

and

$312

for the fiscal years ending

December 31, 2019

through

2023,

respectively.