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Note 5 - Supplemental Balance Sheet Information

9 Months Ended

Sep. 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 September 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:

	September 30,		December 31,
	2020		2019
Cash	$	13,690	$	7,135
Restricted cash		87		270
Total	$	13,777	$	7,405

As of September 30, 2020 and December 31, 2019, restricted cash included $87 and $82, respectively, of euro-denominated deposits withheld by the Dutch tax authorities and third-party VAT representatives in connection with a previously utilized logistics arrangement in the Netherlands. As of December 31, 2019, restricted cash included $188 for 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 nine-month period ended September 30, 2020, grant proceeds of $188 were used to fund qualifying capital expenditures and material and labor costs incurred. 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:

	September 30,		December 31,
	2020		2019
Raw materials	$	17,600	$	18,485
Work in process		3,861		2,548
Finished goods		8,285		8,726
Total	$	29,746	$	29,759

Property, Plant and Equipment, Net

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

	September 30,			December 31,
	2020			2019
Land	$	1,273		$	1,273
Buildings and leasehold improvements		15,365			15,386
Machinery and equipment		55,869			55,058
Furniture and fixtures		2,219			2,194
Computer hardware and software		6,812			6,712
Construction in process		5,622			4,730
		87,160			85,353
Less: Accumulated depreciation		(64,555	)		(62,828	)
Property, plant and equipment, net	$	22,605		$	22,525

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

	Three-month period ended				Nine-month period ended
	September 30,		September 29,		September 30,		September 29,
	2020		2019		2020		2019
Depreciation expense	$	582	$	586	$	1,743	$	1,548

Goodwill

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

	Battery & Energy			Communications
	Products			Systems		Total
Balance – December 31, 2019		15,260			11,493		26,753
Effect of foreign currency translation		(48	)		-		(48	)
Balance – September 30, 2020	$	15,212		$	11,493	$	26,705

Other Intangible Assets, Net

The composition of other intangible assets was:

	September 30, 2020
			Accumulated
	Cost		Amortization		Net
Trademarks	$	3,406	$	-	$	3,406
Customer relationships		9,020		4,975		4,045
Patents and technology		5,496		4,952		544
Distributor relationships		377		377		-
Trade name		1,501		284		1,217
Total	$	19,800	$	10,588	$	9,212

	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 September 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				Nine-month period ended
	September 30,		September 29,		September 30,		September 29,
	2020		2019		2020		2019
Amortization included in:
Research and development	$	31	$	32	$	92	$	98
Selling, general and administrative		118		116		352		274
Total amortization expense	$	149	$	148	$	444	$	372