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Note 5 - Supplemental Balance Sheet Information

6 Months Ended

Jun. 30, 2020

Supplemental Balance Sheet Disclosures [Text Block]

5. SUPPLEMENTAL BALANCE SHEET INFORMATION

Fair Value Measurements and Disclosures

The fair value of financial instruments approximated their carrying values at June 30, 2020 and December 31, 2019. The fair value of cash, trade accounts receivable, trade accounts payable, accrued liabilities, and the current portion of long-term debt approximates carrying value due to the short-term nature of these instruments. The carrying value of long-term debt approximates fair value, as the variable interest rates approximate current market rates.

Cash

The composition of the Company’s cash was as follows:

	June 30,		December 31,
	2020		2019
Cash	$	8,298	$	7,135
Restricted cash		91		270
Total	$	8,389	$	7,405

As of June 30, 2020 and December 31, 2019, restricted cash included $8 and $188, 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 as a direct offset to qualifying expenditures as incurred. For the six-month period ended June 30, 2020, grant proceeds of $181 were used to fund qualifying capital expenditures and material and labor costs incurred. As of June 30, 2020 and December 31, 2019, restricted cash included euro-denominated deposits of $83 and $82, 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.

Inventories

Inventories are stated at the lower of cost or market, net of obsolescence reserves, with cost determined under the first-in, first-out (FIFO) method. The composition of inventories, net was:

	June 30,		December 31,
	2020		2019
Raw materials	$	17,142	$	18,485
Work in process		3,504		2,548
Finished goods		7,418		8,726
Total	$	28,064	$	29,759

Property, Plant and Equipment, Net

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

	June 30,			December 31,
	2020			2019
Land	$	1,273		$	1,273
Buildings and leasehold improvements		15,337			15,386
Machinery and equipment		54,904			55,058
Furniture and fixtures		2,188			2,194
Computer hardware and software		6,719			6,712
Construction in process		6,109			4,730
		86,530			85,353
Less: Accumulated depreciation		(63,817	)		(62,828	)
Property, plant and equipment, net	$	22,713		$	22,525

Depreciation expense for property, plant and equipment was as follows:

	Three-month period ended				Six-month period ended
	June 30,		June 30,		June 30,		June 30,
	2020		2019		2020		2019
Depreciation expense	$	582	$	515	$	1,161	$	962

Goodwill

The following table summarizes the goodwill activity by segment for the six-month period ended June 30, 2020.

	Battery & Energy			Communications
	Products			Systems		Total
Balance – December 31, 2019		15,260			11,493		26,753
Effect of foreign currency translation		(294	)		-		(294	)
Balance – June 30, 2020	$	14,966		$	11,493	$	26,459

Other Intangible Assets, Net

The composition of other intangible assets was:

	June 30, 2020
			Accumulated
	Cost		Amortization		Net
Trademarks	$	3,401	$	-	$	3,401
Customer relationships		8,913		4,853		4,060
Patents and technology		5,454		4,902		552
Distributor relationships		377		377		-
Trade name		1,486		249		1,237
Total	$	19,631	$	10,381	$	9,250

	December 31, 2019
			Accumulated
	Cost		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	$	19,892	$	10,171	$	9,721

The change in the cost of total intangible assets from December 31, 2019 to June 30, 2020 is a result of the effect of foreign currency translations.

Amortization expense for other intangible assets was as follows:

	Three-month period ended				Six-month period ended
	June 30,		June 30,		June 30,		June 30,
	2020		2019		2020		2019
Amortization included in:
Research and development	$	30	$	33	$	61	$	66
Selling, general and administrative		116		99		234		158
Total amortization expense	$	146	$	132	$	295	$	224