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Note 5 - Supplemental Balance Sheet Information | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Supplemental Balance Sheet Disclosures [Text Block] | Note 5 - Supplemental Balance Sheet Information
a. | Cash and Restricted Cash
The Company had cash and restricted cash totaling $7,405 and $25,934 as of December 31, 2019 and 2018, respectively.
|  | December 31 |
|  | 201 9 |  |  | 201 8 |
Cash |  | $ | 7,135 |  |  | $ | 25,583 |
Restricted cash |  |  | 270 |  |  |  | 351 |
Total |  | $ | 7,405 |  |  | $ | 25,934 |
As of December 31, 2019 and December 31, 2018, restricted cash included $188 and $266, respectively, relating to a government grant awarded in the People’s Republic of China to fund specified technological research and development initiatives. The grant proceeds are realized to income as a direct offset to expense as the related expenditures are incurred. For the year ended December 31, 2019, grant proceeds of $78 were realized to income. As of December 31, 2019 and December 31, 2018, restricted cash included euro-denominated deposits of $82 and $85, respectively, 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 |
|  | 2019 |  |  | 2018 |
Raw materials |  | $ | 18,485 |  |  | $ | 13,274 |
Work in process |  |  | 2,548 |  |  |  | 2,016 |
Finished products |  |  | 8,726 |  |  |  | 7,553 |
Total |  | $ | 29,759 |  |  | $ | 22,843 |
c. Property, Plant and Equipment Major classes of property, plant and equipment consisted of the following:
|  | December 31 |
|  | 2019 |  |  | 2018 |
Land |  | $ | 1,273 |  |  | $ | 123 |
Buildings and leasehold improvements |  |  | 8,148 |  |  |  | 8,267 |
Machinery and equipment |  |  | 62,562 |  |  |  | 51,261 |
Furniture and fixtures |  |  | 2,112 |  |  |  | 2,058 |
Computer hardware and software |  |  | 6,528 |  |  |  | 5,590 |
Construction in progress |  |  | 4,730 |  |  |  | 4,302 |
|  |  | 85,353 |  |  |  | 71,601 |
Less – Accumulated depreciation |  |  | (62,828 | ) |  |  | (60,857 | )
Total |  | $ | 22,525 |  |  | $ | 10,744 |
Depreciation expense was $2,220 and $1,972 for the years ended December 31, 2019 and 2018, 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 2019 and 2018. The Company performed a quantitative impairment test as of September 30, 2019 of its five identified goodwill reporting units including a reporting unit for SWE (Note 2 ) which is a component of the Battery & Energy Products segment. 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 2019 and 2018, we determined that no impairments existed. Fair value exceeded carrying value for all reporting units and trademarks by more than 10%, except for the goodwill test as of September 30, 2019 for SWE which was acquired five months prior. 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, 2019 and 2018:
|  | Battery & Energy Products |  |  | Communications Systems |  |  | Total |
Balance – January 1, 2018 |  | $ | 8,965 |  |  | $ | 11,493 |  |  | $ | 20,458 |
Effect of foreign currency translation |  |  | (349 | ) |  |  | - |  |  |  | (349 | )
Balance – December 31, 2018 |  |  | 8,616 |  |  |  | 11,493 |  |  |  | 20,109 |
Acquisition of SWE |  |  | 6,534 |  |  |  | - |  |  |  | 6,534 |
Effect of foreign currency translation |  |  | 110 |  |  |  | - |  |  |  | 110 |
Balance – December 31, 2019 |  | $ | 15,260 |  |  | $ | 11,493 |  |  | $ | 26,753 |
The composition of intangible assets was:
|  | December 31, 201 9 |
|  | Cost |  |  | Accumulated amortization |  |  | Net |
Trademarks |  | $ | 3,403 |  |  | $ | - |  |  | $ | 3,403 |
Customer relationships |  |  | 9,080 |  |  |  | 4,721 |  |  |  | 4,359 |
Patents and technology |  |  | 5,521 |  |  |  | 4,869 |  |  |  | 652 |
Distributor relationships |  |  | 377 |  |  |  | 377 |  |  |  | - |
Trade name |  |  | 1,511 |  |  |  | 204 |  |  |  | 1,307 |
Total other intangible assets |  | $ | 19,892 |  |  | $ | 10,171 |  |  | $ | 9,721 |
|  | December 31, 201 8 |
|  | Cost |  |  | Accumulated a mortization |  |  | 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 |
The change in the cost value of other intangible assets is a result of the SWE acquisition (Note 2 ) and the effect of foreign currency translations. Amortization of other intangible assets was included in the following financial statement captions:
|  | Year ended December 31 |
|  | 201 9 |  |  | 2018 |
Research and development expense |  | $ | 130 |  |  | $ | 147 |
Selling, general and administrative expense |  |  | 395 |  |  |  | 250 |
Total |  | $ | 525 |  |  | $ | 397 |
Future amortization expense of amortizable intangible assets will be approximately $360, $341, $326, $323 and $313 for the five fiscal years ending December 31, 2020 through 2024, respectively.

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