Note 1 - Basis of Presentation	3 Months Ended
Mar. 31, 2021
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	NOTE 1: BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements for CVD Equipment Corporation and Subsidiaries (collectively “the Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10 -Q and Article 8 of Regulation S- X. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary in order to make the interim financials not misleading have been included and all such adjustments are of a normal recurring nature. The operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that can be expected for the year ending December 31, 2021. The condensed consolidated balance sheet as of December 31, 2020 has been derived from the audited consolidated financial statements at such date, as filed on Form 10 -K with the SEC on March 31, 2021, but does not contain all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with that report. All material intercompany balances and transactions have been eliminated in consolidation. In addition, certain reclassifications have been made to prior period consolidated financial statements to conform to the current period presentation. BUSINESS DEVELOPMENTS In January 2021, the Board of Directors made a decision to implement a change in direction and new leadership to evaluate the business strategy and operations. As such, they appointed Emmanuel Lakios as President and Chief Executive Officer (previously our Vice-President- Sales and Marketing). Subsequent to this, a decision was made based on continued losses and significant investments required to continue in the Materials business that our primary focus should be on the core equipment business and that the Materials Business strategy should be revised, with some of its current elements potentially minimized or ceased. Based upon an analysis, including forecasted continued losses and negative cash flows for the Tantaline product line, the Company has implemented plans to eliminate further investment in our Tantaline product line. In addition, we have recorded an impairment charge of $3.6 million during the fourth quarter and year ended December 31, 2020. In addition, the Company continues to monitor its costs and will take actions to mitigate expenses in the future to align them with anticipated revenue levels. In order to increase the Company's liquidity and to provide necessary working capital to support the Company's on-going business and operations, the Board has decided to sell the 555 Building in February 2021. Management has determined the 555 Building is not needed for present and future business operations and concluded that any remaining elements of the Materials Business can be consolidated into the 355 Building, which it believes can accommodate any needs for our growth for the foreseeable future. In April 2021, the Company completed the move of its Tantaline product line to the 355 Building, while the MesoScribe consolidation into the 355 Building has been initiated. On March 29, 2021, the Company entered into an agreement with Steel K, LLC for the sale of its 555 Building. The purchase price is $24,360,000, and the closing of the sale is subject to the satisfaction or waiver of certain conditions to closing or contingencies. A portion of the sale proceeds would be used to satisfy the existing mortgage debt on the 555 Building in the approximate amount of $9.2 million at March 31, 2021, and for various costs related to the sale closing in an amount to be determined. Any excess proceeds will be used for general working capital purposes. On or about May 23, 2021, the buyer may advise the Company of any requirement to extend the closing date up to 60 days thereafter.

NOTE

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements for CVD Equipment Corporation and Subsidiaries (collectively “the Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form

-Q and Article

of Regulation S-

They do

not

include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary in order to make the interim financials

not

misleading have been included and all such adjustments are of a normal recurring nature. The operating results for the

three

months ended

March 31, 2021

are

not

necessarily indicative of the results that can be expected for the year ending

December 31, 2021.

The condensed consolidated balance sheet as of

December 31, 2020

has been derived from the audited consolidated financial statements at such date, as filed on Form

-K with the SEC on

March 31, 2021,

but does

not

contain all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with that report.

All material intercompany balances and transactions have been eliminated in consolidation. In addition, certain reclassifications have been made to prior period consolidated financial statements to conform to the current period presentation.

BUSINESS DEVELOPMENTS

January 2021,

the Board of Directors made a decision to implement a change in direction and new leadership to evaluate the business strategy and operations. As such, they appointed Emmanuel Lakios as President and Chief Executive Officer (previously our Vice-President- Sales and Marketing). Subsequent to this, a decision was made based on continued losses and significant investments required to continue in the Materials business that our primary focus should be on the core equipment business and that the Materials Business strategy should be revised, with some of its current elements potentially minimized or ceased. Based upon an analysis, including forecasted continued losses and negative cash flows for the Tantaline product line, the Company has implemented plans to eliminate further investment in our Tantaline product line. In addition, we have recorded an impairment charge of

$3.6

million during the

fourth

quarter and year ended

December 31, 2020.

In addition, the Company continues to monitor its costs and will take actions to mitigate expenses in the future to align them with anticipated revenue levels.

In order to increase the Company's liquidity and to provide necessary working capital to support the Company's on-going business and operations, the Board has decided to sell the

555

Building in

February 2021.

Management has determined the

555

Building is

not

needed for present and future business operations and concluded that any remaining elements of the Materials Business can be consolidated into the

355

Building, which it believes can accommodate any needs for our growth for the foreseeable future. In

April 2021,

the Company completed the move of its Tantaline product line to the

355

Building, while the MesoScribe consolidation into the

355

Building has been initiated.

March 29, 2021,

the Company entered into an agreement with Steel K, LLC for the sale of its

555

Building. The purchase price is

$24,360,000,

and the closing of the sale is subject to the satisfaction or waiver of certain conditions to closing or contingencies. A portion of the sale proceeds would be used to satisfy the existing mortgage debt on the

555

Building in the approximate amount of

$9.2

million at

March 31, 2021,

and for various costs related to the sale closing in an amount to be determined. Any excess proceeds will be used for general working capital purposes. On or about

May 23, 2021,

the buyer

may

advise the Company of any requirement to extend the closing date up to

days thereafter.