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Note 3 - Supplemental Balance Sheet Information | 12 Months Ended
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Dec. 31, 2018
Notes to Financial Statements |
Supplemental Balance Sheet Disclosures [Text Block] | Note 3 - 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 1 inputs or Level 2 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 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, 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 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 our trademarks, using Level 3 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 no 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.

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