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Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2020	Apr. 30, 2020
Document Information [Line Items]
Entity Registrant Name	INTEST CORP
Entity Central Index Key	0001036262
Trading Symbol	intt
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding (in shares)		10,432,823
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Title of 12(b) Security	Common Stock, par value $0.01 per share

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 7,318	$ 7,612
Trade accounts receivable, net of allowance for doubtful accounts of $210 and $211, respectively	8,052	9,296
Inventories	7,720	7,182
Prepaid expenses and other current assets	686	805
Total current assets	23,776	24,895
Property and equipment:
Machinery and equipment	5,341	5,269
Leasehold improvements	2,423	2,424
Gross property and equipment	7,764	7,693
Less: accumulated depreciation	(5,423)	(5,273)
Net property and equipment	2,341	2,420
Right-of-use assets, net	5,691	4,842
Goodwill	13,738	13,738
Intangible assets, net	13,343	13,654
Restricted certificates of deposit	140	140
Other assets	30	26
Total assets	59,059	59,715
Current liabilities:
Accounts payable	2,299	1,984
Accrued wages and benefits	1,462	2,007
Accrued professional fees	698	805
Customer deposits and deferred revenue	605	456
Accrued sales commissions	519	442
Current portion of operating lease liabilities	1,303	1,302
Domestic and foreign income taxes payable	660	868
Other current liabilities	470	497
Total current liabilities	8,016	8,361
Operating lease liabilities, net of current portion	4,644	3,794
Contingent liability for repayment of state and local grant funds received	463	463
Deferred tax liabilities	2,170	2,263
Total liabilities	15,293	14,881
Commitments and Contingencies
Stockholders' equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized; no shares issued or outstanding
Common stock, $0.01 par value; 20,000,000 shares authorized; 10,450,060 and 10,413,982 shares issued, respectively	105	104
Additional paid-in capital	26,368	26,256
Retained earnings	16,862	18,005
Accumulated other comprehensive earnings	635	673
Treasury stock, at cost; 33,077 shares	(204)	(204)
Total stockholders' equity	43,766	44,834
Total liabilities and stockholders' equity	$ 59,059	$ 59,715

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Allowance for doubtful accounts	$ 210	$ 211
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	10,450,060	10,413,982
Treasury stock, shares (in shares)	33,077	33,077

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net revenues	$ 11,230	$ 18,062
Cost of revenues	6,363	9,226
Gross margin	4,867	8,836
Operating expenses:
Selling expense	2,052	2,374
Engineering and product development expense	1,292	1,284
General and administrative expense	2,884	3,737
Total operating expenses	6,228	7,395
Operating income (loss)	(1,361)	1,441
Other income (expense)	(32)	21
Earnings (loss) before income tax expense (benefit)	(1,393)	1,462
Income tax expense (benefit)	(250)	324
Net earnings (loss)	$ (1,143)	$ 1,138
Net earnings (loss) per common share - basic (in dollars per share)	$ (0.11)	$ 0.11
Weighted average common shares outstanding - basic (in shares)	10,220,853	10,385,017
Net earnings (loss) per common share - diluted (in dollars per share)	$ (0.11)	$ 0.11
Weighted average common shares and common share equivalents outstanding - diluted (in shares)	10,220,853	10,414,330

Consolidated Statements of Comprehensive Earnings (Loss) Unaudited - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net earnings (loss)	$ (1,143)	$ 1,138
Foreign currency translation adjustments	(38)	(83)
Comprehensive earnings (loss)	$ (1,181)	$ 1,055

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock [Member]	Total
Balance (in shares) at Dec. 31, 2018	10,523,035
Balance at Dec. 31, 2018	$ 105	$ 26,513	$ 15,683	$ 783	$ (204)	$ 42,880
Net earnings (loss)			1,138			1,138
Other comprehensive loss				(83)		(83)
Amortization of deferred compensation related to stock-based awards		183				183
Issuance of unvested shares of restricted stock (in shares)	80,300
Issuance of unvested shares of restricted stock	$ 1	(1)
Balance (in shares) at Mar. 31, 2019	10,603,335
Balance at Mar. 31, 2019	$ 106	26,695	16,821	700	(204)	$ 44,118
Balance (in shares) at Dec. 31, 2019	10,413,982					10,413,982
Balance at Dec. 31, 2019	$ 104	26,256	18,005	673	(204)	$ 44,834
Net earnings (loss)			(1,143)			(1,143)
Other comprehensive loss				(38)		(38)
Amortization of deferred compensation related to stock-based awards		187				187
Issuance of unvested shares of restricted stock (in shares)	58,160
Issuance of unvested shares of restricted stock	$ 1	(1)
Forfeiture of unvested shares of restricted stock (in shares)	(8,315)
Repurchase and retirement of common stock (in shares)	(13,767)					(13,767)
Repurchase and retirement of common stock		(74)				$ (74)
Balance (in shares) at Mar. 31, 2020	10,450,060					10,450,060
Balance at Mar. 31, 2020	$ 105	$ 26,368	$ 16,862	$ 635	$ (204)	$ 43,766

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings (loss)	$ (1,143)	$ 1,138
Adjustments to reconcile net earnings (loss) to net cash used in operating activities:
Depreciation and amortization	791	804
Payment of earnout for 2018 related to Ambrell acquisition		(10,048)
Provision for excess and obsolete inventory	171	107
Foreign exchange loss	38	4
Amortization of deferred compensation related to stock-based awards	187	183
Loss on disposal of property and equipment		9
Proceeds from sale of demonstration equipment, net of gain		43
Deferred income tax benefit	(93)	(89)
Changes in assets and liabilities:
Trade accounts receivable	1,188	374
Inventories	(714)	(737)
Prepaid expenses and other current assets	117	(88)
Other assets	(4)	(6)
Accounts payable	316	721
Accrued wages and benefits	(543)	(1,192)
Accrued professional fees	(105)	182
Customer deposits and deferred revenue	152	(442)
Accrued sales commissions	78	(182)
Operating lease liabilities	(323)	(341)
Domestic and foreign income taxes payable	(207)	258
Other current liabilities	(25)	(173)
Net cash used in operating activities	(119)	(9,475)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(80)	(141)
Net cash used in investing activities	(80)	(141)
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchases of common stock	(74)
Net cash used in financing activities	(74)
Effects of exchange rates on cash	(21)	(54)
Net cash used in all activities	(294)	(9,670)
Cash and cash equivalents at beginning of period	7,612	17,861
Cash and cash equivalents at end of period	7,318	8,191
Cash payments for:
Domestic and foreign income taxes	$ 50	$ 1,168

Note 1 - Nature of Operations

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Nature of Operations [Text Block]

(

)

NATURE OF OPERATIONS

two

operating segments which are also our reportable segments: Thermal Products ("Thermal") and Electromechanical Semiconductor Products ("EMS"). Our Thermal segment designs, manufactures and sells our thermal test and thermal process products while our EMS segment designs, manufactures and sells our semiconductor test products. We manufacture our products in the U.S. Marketing and support activities are conducted worldwide from our facilities in the U.S., Germany, Singapore, the Netherlands and the U.K. The consolidated entity is comprised of inTEST Corporation and our wholly owned subsidiaries.

Our EMS segment sells its products to semiconductor manufacturers and

third

-party test and assembly houses (end user sales) and to automated test equipment (“ATE”) manufacturers (original equipment manufacturer (“OEM”) sales), who ultimately resell our equipment with theirs to both semiconductor manufacturers and

third

-party test and assembly houses. Our Thermal segment sells its products to many of these same types of customers; however, it also sells into a variety of other markets, including the automotive, defense/aerospace, energy, industrial and telecommunications markets. As a result of the acquisition of Ambrell Corporation (“Ambrell”) in

May 2017,

our Thermal segment also sells into the consumer products packaging, fiber optics and other sectors within the broader industrial market, and into the wafer processing sector within the broader semiconductor market.

Both of our operating segments have multiple products that we design, manufacture and market to our customers. Due to a number of factors, our products have varying levels of gross margin. The mix of products we sell in any period is ultimately determined by our customers' needs. Therefore, the mix of products sold in any given period can change significantly from the prior period. As a result, our consolidated gross margin can be significantly impacted in any given period by a change in the mix of products sold in that period.

Historically, we have referred to our markets as “Semiconductor” (which includes both the broader semiconductor market as well as the more specialized ATE and wafer processing sectors within the broader semiconductor market), and “Non-Semiconductor” (which includes all of the other markets we serve). Starting in the

second

quarter of

2019,

we began referring to the broader semiconductor market, including the ATE and wafer processing sectors within that market, as the “Semi Market.” All other markets are designated as “Multimarket.” The Semi Market, which is the principal market in which we operate, is characterized by rapid technological change, competitive pricing pressures and cyclical as well as seasonal market patterns. This market is subject to significant economic downturns at various times. Our financial results are affected by a wide variety of factors, including, but

not

limited to, general economic conditions worldwide and in the markets in which we operate, economic conditions specific to the Semi Market and the other markets we serve, our ability to safeguard patented technology and intellectual property in a rapidly evolving market, downward pricing pressures from customers, and our reliance on a relatively few number of customers for a significant portion of our sales. In addition, we are exposed to the risk of obsolescence of our inventory depending on the mix of future business and technological changes within the markets that we serve. We also continue to implement an acquisition strategy that

may

cause us to incur substantial expense in reviewing and evaluating potential transactions. We

may

not

be successful in locating suitable businesses to acquire and in closing acquisitions of businesses we pursue. In addition, we

may

not

be able to successfully integrate any business we do acquire with our existing business and we

may

not

be able to operate the acquired business profitably. As a result of these or other factors, we

may

experience significant period-to-period fluctuations in future operating results.

COVID-

Pandemic

In early

January 2020,

a human infection originating in China was traced to a novel strain of coronavirus, referred to as COVID-

19.

COVID-

has subsequently spread to other parts of the world, including the U.S. and Europe, and has caused unprecedented disruptions in the global economy as efforts to contain the spread of COVID-

have intensified. On

March 11, 2020,

the World Health Organization (“WHO”) officially declared COVID-

a pandemic. Our business has been, and will continue to be, adversely affected by the COVID-

pandemic. Since

March 17, 2020,

several states, including all of the states in which we have manufacturing facilities, have instituted “shelter-in place” orders as well as guidance in response to the COVID-

pandemic and the need to contain it. Currently, all of our operations have been deemed “critical and essential business operations” under the various governmental COVID-

mandates which has allowed us to continue to operate our business with certain modifications as discussed below.

The impact of the COVID-

pandemic on our operations is intensified because it is occurring at a time when our business operations have already been negatively affected by a global downturn in the Semi Market. The Semi Market, from which approximately half of our net revenues are derived, has been in a cyclical downturn since the beginning of

2019.

This downturn has resulted in significant declines in our net revenues from the Semi Market and contributed to the net loss we recorded in the

first

quarter of

2020

$1,143.

Our net revenues from the Semi Market for the

first

quarter of

2020

totaled

$5,011

compared to

$10,111

in the

first

quarter of

2019,

when the downturn began. We had started to see indications that the downturn was coming to an end and that the beginning of the next cyclical upturn in the Semi Market was imminent, but the COVID-

pandemic appears to be impacting this timing. We currently expect that the recovery in the Semi Market

may

be delayed by as many as

two

or more quarters. During

2019,

we made adjustments to reduce our fixed cost structure, which included staff reductions and limits on all discretionary spending. As a result of the expected delay in the Semi Market recovery, we have been evaluating additional actions to further reduce our fixed cost structure with the goal of limiting future losses and maintaining an adequate level of liquidity to operate our business. To date, these additional actions have included further staff reductions, the temporary shutdown of our EMS manufacturing facility in Fremont, California in late

March

and the temporary closure of our Thermal segment manufacturing facility in Mansfield, Massachusetts for a

two

-week period at the beginning of

April.

As discussed further in Notes

and

13,

April 10, 2020,

we entered into a Loan and Security Agreement (the “Agreement”) with M&T Bank (“M&T”). Under the terms of the Agreement, M&T has provided us with a

$7,500

revolving credit facility. This revolving credit facility was put in place to provide us with additional liquidity in response to the current business environment as a result of the COVID-

pandemic.

As of the date of this filing, our facilities in California and Massachusetts have re-opened and all our other facilities, with the exception of our sales office in Singapore, have remained open. While we do

not

currently have any further plans for facility closures, if the current pace of the COVID-

pandemic cannot be sufficiently slowed and the spread of the virus is

not

contained, our business operations could be delayed or interrupted. In addition, the aftermarket service and support that we provide to our customers has been, and we expect will continue to be, impacted by the COVID-

pandemic due to travel restrictions and limitations on visitors allowed into customer facilities, which has resulted in some of these activities being reduced or suspended. Therefore, the net revenues associated with these aftermarket service and support activities, which typically range from

10%

of our consolidated net revenues,

may

decline. We expect that government and health authorities

may

announce new or extend existing restrictions, which could require us to make further adjustments to our operations in order to comply with any such restrictions. These adjustments to our operations could include additional facility closures in the future if demand slows down, which could have a material negative impact on our business, results of operations and financial condition. The funds we

may

draw down from our revolving credit facility under the Agreement

may

not

be sufficient to prevent the need to take further actions such as staff reductions, facility closures or other salary and benefits adjustments for remaining employees. To the extent that the COVID-

pandemic

may

have a negative impact on our operations, as a result of our current level of working capital as well as the availability of the revolving credit facility under the Agreement, we currently expect to have sufficient liquidity to operate our business throughout the balance of

2020,

as further described in this report.

Generally, global supply chains and the timely availability of products have been, and will continue to be, materially disrupted by quarantines, factory slowdowns or shutdowns, border closings and travel restrictions resulting from the COVID-

pandemic. We have experienced, and expect that we

may

continue to experience, price increases and/or lack of availability from our normal suppliers for the materials needed to produce our products in a timely manner and/or with the level of margins we typically expect to achieve. We are working to mitigate and address these delays and price increases, but there can be

assurance that we will

not

experience delays or price increases in the future which could have a material negative impact on our business, results of operations and financial condition.

We have implemented workplace safeguards to protect and ensure the health and well-being of our employees. A significant number of employees have been authorized to work from home and have been provided with the tools and technology necessary to do so. However, the process of working remotely

may

result in these employees

not

being as effective or responsive to our customers’ needs as they would be under more normal conditions. This could result in lost business opportunities or have other negative impacts on our business. Remaining employees in our facilities are following WHO and Centers for Disease Control and Prevention (“CDC”) recommended safety practices, as well as state and local directives, but there can be

assurances that we can successfully avoid

one

of our employees contracting COVID-

and entering our facilities while infected. Should this occur, or should we have employees who become ill or otherwise are unable to work, we

may

experience limitations in employee resources or

may

be required to close affected facilities for a time to clean and disinfect appropriately.

The duration of any business disruption and related financial impact cannot be reasonably estimated at this time but

may

materially affect our ability to operate our business and result in additional costs. The extent to which the COVID-

pandemic

may

impact our operating results, financial condition, and liquidity will depend on future developments, which are highly uncertain and cannot be predicted as of the time of this filing, including new information that

may

emerge concerning the severity of COVID-

and steps taken to contain COVID-

or treat its impact, among others. The adverse effects of the COVID-

pandemic on our business could be material in future periods.

Note 2 - Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Significant Accounting Policies [Text Block]

(

)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Use of Estimates

The accompanying consolidated financial statements include our accounts and those of our wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated upon consolidation. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain of our accounts, including inventories, long-lived assets, goodwill, identifiable intangibles and deferred tax assets and liabilities including related valuation allowances, are particularly impacted by estimates.

In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the financial position, results of operations, and changes in cash flows for the interim periods presented. Certain footnote information has been condensed or omitted from these consolidated financial statements. Therefore, these consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes included in our Form

-K for the year ended

December 31, 2019 (

“2019

Form

-K”) filed on

March 23, 2020

with the Securities and Exchange Commission.

Reclassification

Certain prior period amounts have been reclassified to be comparable with the current period's presentation.

Subsequent Events

We have made an assessment of our operations and determined that there were

material subsequent events requiring adjustment to, or disclosure in, our consolidated financial statements for the

three

months ended

March 31, 2020

other than those described in Note

under “COVID-

Pandemic” and in Note

13.

Business Combinations

Acquired businesses are accounted for using the purchase method of accounting, which requires that the purchase price be allocated to the net assets acquired at their respective fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Fair values of intangible assets are estimated by valuation models prepared by our management and

third

-party advisors. The assets purchased and liabilities assumed have been reflected in our consolidated balance sheets, and the results are included in the consolidated statements of operations and consolidated statements of cash flows from the date of acquisition. Any change in the fair value of acquisition-related contingent consideration subsequent to the acquisition date, including changes from events after the acquisition date, will be recognized in the consolidated statement of operations in the period of the estimated fair value change. Acquisition-related transaction costs, including legal and accounting fees and other external costs directly related to the acquisition, are recognized separately from the acquisition and expensed as incurred in general and administrative expense in the consolidated statements of operations.

Goodwill, Intangible and Long-Lived Assets

We account for goodwill and intangible assets in accordance with Accounting Standards Codification (“ASC”) Topic

350

(Intangibles - Goodwill and Other). Finite-lived intangible assets are amortized over their estimated useful economic life and are carried at cost less accumulated amortization. Goodwill is assessed for impairment annually in the

fourth

quarter on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill

may

be impaired. Goodwill is considered to be impaired if the fair value of a reporting unit is less than its carrying amount. As a part of the goodwill impairment assessment, we have the option to perform a qualitative assessment to determine whether it is more-likely-than-

not

that the fair value of a reporting unit is less than its carrying amount. If, as a result of our qualitative assessment, we determine that it is more-likely-than-

not

that the fair value of the reporting unit is greater than its carrying amount, a quantitative goodwill impairment test is

not

required. However, if, as a result of our qualitative assessment, we determine it is more-likely-than-

not

that the fair value of a reporting unit is less than its carrying amount, or, if we choose

not

to perform a qualitative assessment, we are required to perform a quantitative goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized.

The quantitative goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered

not

impaired. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The goodwill impairment assessment is based upon the income approach, which estimates the fair value of our reporting units based upon a discounted cash flow approach. This fair value is then reconciled to our market capitalization at year end with an appropriate control premium. The determination of the fair value of our reporting units requires management to make significant estimates and assumptions including the selection of control premiums, discount rates, terminal growth rates, forecasts of revenue and expense growth rates, income tax rates, changes in working capital, depreciation, amortization and capital expenditures. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on either the fair value of the reporting unit or the amount of the goodwill impairment charge.

Indefinite-lived intangible assets are assessed for impairment annually in the

fourth

quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. As a part of the impairment assessment, we have the option to perform a qualitative assessment to determine whether it is more likely than

not

that an indefinite-lived intangible asset is impaired. If, as a result of our qualitative assessment, we determine that it is more-likely-than-

not

that the fair value of the indefinite-lived intangible asset is less than its carrying amount, the quantitative impairment test is required; otherwise,

further testing is required. The quantitative impairment test consists of a comparison of the fair value of the intangible asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess.

Long-lived assets, which consist of finite-lived intangible assets and property and equipment, are assessed for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets

may

not

be fully recoverable or that the useful lives of these assets are

longer appropriate. Each impairment test is based on a comparison of the estimated undiscounted cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value. The cash flow estimates used to determine the impairment, if any, contain management's best estimates using appropriate assumptions and projections at that time.

Revenue Recognition

We recognize revenue in accordance with the guidance in ASC Topic

606

(Revenue from Contracts with Customers). We recognize revenue for the sale of products or services when our performance obligations under the terms of a contract with a customer are satisfied and control of the product or service has been transferred to the customer. Generally, this occurs when we ship a product or perform a service. In certain cases, recognition of revenue is deferred until the product is received by the customer or at some other point in the future when we have determined that we have satisfied our performance obligations under the contract. Our contracts with customers

may

include a combination of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. In addition to the sale of products and services, we also lease certain of our equipment under short-term lease agreements. We recognize revenue from equipment leases on a straight-line basis over the lease term.

Revenue is recorded in an amount that reflects the consideration we expect to receive in exchange for those products or services. We do

not

have any material variable consideration arrangements, or any material payment terms with our customers other than standard payment terms which generally range from net

to net

days. We generally do

not

provide a right of return to our customers. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.

Nature of Products and Services

We are a global supplier of precision-engineered solutions for use in manufacturing and testing across a wide range of markets including automotive, defense/aerospace, energy, industrial, semiconductor and telecommunications. We sell thermal management products including ThermoStreams, ThermoChambers and process chillers, which we sell under our Temptronic, Sigma and Thermonics product lines, and Ambrell’s precision induction heating systems, including EkoHeat and EasyHeat products. We sell semiconductor ATE interface solutions which include manipulators, docking hardware and electrical interface products. We provide post-warranty service for the equipment we sell. We sell semiconductor ATE interface solutions and certain thermal management products to the Semi Market. We also sell our thermal management products to various other markets including the automotive, defense/aerospace, energy, industrial and telecommunications markets.

We lease certain of our equipment under short-term leasing agreements with original lease terms of

six

months or less. Our lease agreements do

not

contain purchase options.

Types of Contracts with Customers

Our contracts with customers are generally structured as individual purchase orders which specify the exact products or services being sold or equipment being leased along with the selling price, service fee or monthly lease amount for each individual item on the purchase order. Payment terms and any other customer-specific acceptance criteria are also specified on the purchase order. We generally do

not

have any customer-specific acceptance criteria, other than that the product performs within the agreed upon specifications. We test substantially all products manufactured as part of our quality assurance process to determine that they comply with specifications prior to shipment to a customer.

Contract Balances

We record accounts receivable at the time of invoicing. Accounts receivable, net of the allowance for doubtful accounts, is included in current assets on our balance sheet. To the extent that we do

not

recognize revenue at the same time as we invoice, we record a liability for deferred revenue. In certain instances, we also receive customer deposits in advance of invoicing and recording of accounts receivable. Deferred revenue and customer deposits are included in current liabilities on our consolidated balance sheets.

The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, if any, historical experience, and other currently available evidence.

Costs to Obtain a Contract with a Customer

The only costs we incur associated with obtaining contracts with customers are sales commissions that we pay to our internal sales personnel or

third

-party sales representatives. These costs are calculated based on an established percentage of the selling price of each product or service sold. Commissions are considered earned by our internal sales personnel at the time we recognize revenue for a particular transaction. Commissions are considered earned by

third

-party sales representatives at the time that revenue is recognized for a particular transaction. We record commission expense in our consolidated statements of operations at the time the commission is earned. Commissions earned but

not

yet paid are included in current liabilities on our balance sheets.

Product Warranties

In connection with the sale of our products, we generally provide standard

one

- or

two

-year product warranties which are detailed in our terms and conditions and communicated to our customers. Our standard warranties are

not

offered for sale separately from our products; therefore, there is

not

a separate performance obligation related to our standard warranties. We record estimated warranty expense for our standard warranties at the time of sale based upon historical claims experience. In very limited cases, we offer customers an option to separately purchase an extended warranty for certain of our products. In the case of extended warranties, we recognize revenue in the amount of the sale price for the extended warranty on a straight-line basis over the extended warranty period. We record costs incurred to provide service under an extended warranty at the time the service is provided. Warranty expense is included in selling expense in our consolidated statements of operations.

Refer to Notes

and

for further information about our revenue from contracts with customers.

Inventories

Inventories are valued at cost on a

first

-in,

first

-out basis,

not

in excess of market value. Cash flows from the sale of inventories are recorded in operating cash flows. On a quarterly basis, we review our inventories and record excess and obsolete inventory charges based upon our established objective excess and obsolete inventory criteria. These criteria identify material that has

not

been used in a work order during the prior

twelve

months and the quantity of material on hand that is greater than the average annual usage of that material over the prior

three

years. In certain cases, additional excess and obsolete inventory charges are recorded based upon current market conditions, anticipated product life cycles, new product introductions and expected future use of the inventory. The excess and obsolete inventory charges we record establish a new cost basis for the related inventories. We incurred excess and obsolete inventory charges of

$171

and

$107

for the

three

months ended

March 31, 2020

and

2019,

respectively.

Leases

We account for leases in accordance with ASC Topic

842

(Leases) which was effective for us as of

January 1, 2019.

Upon adoption of ASC Topic

842,

we elected the package of practical expedients which included the grandfathering of the lease classification that had been made under prior guidance and, accordingly, we did

not

re-evaluate any of our leases for classification purposes in connection with the implementation of ASC Topic

842.

All our lease contracts are still being treated as operating leases. We do

not

currently have any lease contracts that meet the criteria to be categorized as financing leases. We did

not

elect the hindsight practical expedient and therefore did

not

reevaluate the lease terms that we used under prior guidance. The implementation of ASC Topic

842

had a significant impact on our consolidated balance sheet as a result of recording right-of-use assets and lease liabilities for all our multi-year leases. Under prior guidance,

none

of these leases had any related asset recorded on our balance sheets. The only related liability recorded on our balance sheets was the amount which represented the difference between the lease payments we had made and the straight-line rent expense we had recorded in our statements of operations. The implementation of ASC Topic

842

did

not

have a significant impact on our pattern of expense recognition for any of our multi-year leases.

We determine if an arrangement is a lease at inception. A lease contract is within scope if the contract has an identified asset (property, plant or equipment) and grants the lessee the right to control the use of the asset during the lease term. The identified asset

may

be either explicitly or implicitly specified in the contract. In addition, the supplier must

not

have any practical ability to substitute a different asset and would

not

economically benefit from doing so for the lease contract to be in scope. The lessee’s right to control the use of the asset during the term of the lease must include the ability to obtain substantially all the economic benefits from the use of the asset as well as decision-making authority over how the asset will be used. Leases are classified as either operating leases or finance leases based on the guidance in ASC

842.

Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment and financing lease liabilities. We do

not

currently have any finance leases. We do

not

have embedded leases nor do we have any initial direct costs related to our lease contracts.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.

None

of our leases provide an implicit rate; therefore, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms

may

include options to extend or terminate the lease. We include these options in the determination of the amount of the ROU asset and lease liability when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Certain of our operating leases contain predetermined fixed escalations of minimum rentals and rent holidays during the original lease terms. Rent holidays are periods during which we have control of the leased facility but are

not

obligated to pay rent. For these leases, our ROU asset and lease liability are calculated including any rent holiday in the determination of the life of the lease.

We have lease agreements which contain both lease and non-lease components, which are generally accounted for separately. In addition to the monthly rental payments due, most of our leases for our offices and warehouse facilities include non-lease components representing our portion of the common area maintenance, property taxes and insurance charges incurred by the landlord for the facilities which we occupy. These amounts are

not

included in the calculation of the ROU assets and lease liabilities as they are based on actual charges incurred in the periods to which they apply.

Operating lease payments are included in cash outflows from operating activities on our consolidated statements of cash flows. Amortization of right of use assets is presented separately from the change in operating lease liabilities and is included in Depreciation and Amortization in our consolidated statements of cash flows.

We have made an accounting policy election

not

to apply the recognition requirements of ASC

842

to short-term leases (leases with a term of

one

year or less at the commencement date of the lease). Lease expense for short-term lease payments is recognized on a straight-line basis over the lease term.

See Note

for further disclosures regarding our leases.

Contingent Liability for Repayment of State and Local Grant

Proceeds

In connection with leasing a new facility in Rochester, New York, which our subsidiary, Ambrell, occupied in

May 2018,

we entered into agreements with the city of Rochester and the state of New York under which we

may

receive grants totaling up to

$550

to help offset a portion of the cost of the leasehold improvements we have made to this facility. In exchange for the funds we

may

receive under these agreements, we are required to create and maintain specified levels of employment in this location through various dates ending in

2023.

If we fail to meet these employment targets, we

may

be required to repay a proportionate share of the proceeds. As of

March 31, 2020,

we have received

$463

in grant funds. We do

not

expect to receive the remaining

$87

of grant funds, as we currently do

not

expect to increase our number of employees to the level required to receive these funds prior to the expiration of the term of the agreement. As of

December 31, 2019,

we were

not

in compliance with the employment targets as specified in the grant agreement with the city of Rochester. We applied for and received a waiver of this requirement for the year ended

December 31, 2019.

As of

March 31, 2020,

we are still

not

in compliance with these employment targets. We have until

December 31, 2020

to come into compliance with the targets as outlined in the waiver received for the year ended

December 31, 2019.

If we do

not

achieve compliance, we will need to apply for an additional waiver or we

may

be required to repay a proportionate share of the proceeds. We have recorded the amounts received under these agreements as a contingent liability on our balance sheet. As time passes, portions of the proceeds will

longer be subject to repayment if we have met the employment requirements of the agreements. Amounts that we are irrevocably entitled to keep will be reclassified to deferred revenue and amortized to income on a straight-line basis over the remaining lease term for the Rochester facility.

Stock-Based Compensation

We account for stock-based compensation in accordance with ASC Topic

718

(Compensation - Stock Compensation), which requires that employee share-based equity awards be accounted for under the fair value method and requires the use of an option pricing model for estimating fair value of stock options granted, which is then amortized to expense over the service periods. See further disclosures related to our stock-based compensation plan in Note

Income Taxes

The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for operating loss and tax credit carryforwards and for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than

not

that such assets will

not

be realized.

Net Earnings

(Loss)

Per Common Share

Net earnings (loss) per common share - basic is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding during each period. Net earnings (loss) per common share - diluted is computed by dividing net earnings (loss) by the weighted average number of common shares and common share equivalents outstanding during each period. Common share equivalents represent unvested shares of restricted stock and stock options and are calculated using the treasury stock method. Common share equivalents are excluded from the calculation if their effect is anti-dilutive.

The table below sets forth, for the periods indicated, a reconciliation of weighted average common shares outstanding - basic to weighted average common shares and common share equivalents outstanding - diluted and the average number of potentially dilutive securities that were excluded from the calculation of diluted earnings per share because their effect was anti-dilutive:

	Three Months Ended March,
	20 20		201 9
Weighted average common shares outstanding - basic		10,220,853		10,385,017
Potentially dilutive securities:
Unvested shares of restricted stock and employee stock options		-		29,313
Weighted average common shares and common share equivalents outstanding - diluted		10,220,853		10,414,330

Average number of potentially dilutive securities excluded from calculation		685,667		284,240

Effect of Recently Issued Amendments to Authoritative Accounting Guidance

June 2016,

the Financial Accounting Standards Board (“FASB”) issued amendments to the guidance for accounting for credit losses. In

November 2019,

the FASB deferred the effective date of these amendments for certain companies, including smaller reporting companies. As a result of the deferral, the amendments are effective for us for reporting periods beginning after

December 15, 2022.

The amendments replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires the use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. The amendments require a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the

first

reporting period in which the guidance is effective. We plan to adopt the amendments when they become effective for us on

January 1, 2023.

We are currently evaluating the impact the adoption of these amendments will have on our consolidated financial statements.

December 2019,

the FASB issued amendments to the accounting for income taxes, which add new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic

740

(Income Taxes) and changing the accounting for certain income tax transactions. The amendments are effective for us as of

January 1, 2021.

Early adoption is permitted. We plan to adopt the amendments when they become effective for us on

January 1, 2021.

We do

not

expect these amendments to have a material impact on our consolidated financial statements.

Note 3 - Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

(

)

GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets on our balance sheets are the result of our acquisitions of Sigma Systems Corp. ("Sigma") in

October 2008,

Thermonics, Inc. ("Thermonics") in

January 2012

and Ambrell in

May 2017.

All our goodwill and intangible assets are allocated to our Thermal segment.

Goodwill

Goodwill totaled

$13,738

at both

March 31, 2020

and

December 31, 2019

and was comprised of the following:

Sigma	$	1,656
Thermonics		50
Ambrell		12,032
Total	$	13,738

Intangible Assets

Changes in the amount of the carrying value of finite-lived intangible assets for the

three

months ended

March 31, 2020

are as follows:

Balance - January 1, 2020	$	6,944
Amortization		(311	)
Balance March 31, 2020	$	6,633

The following tables provide further detail about our intangible assets as of

March 31, 2020

and

December 31, 2019:

	March 31, 20 20
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	10,480	$	4,079	$	6,401
Technology		600		410		190
Patents		590		548		42
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		12,080		5,447		6,633
Indefinite-lived intangible assets:
Trademarks		6,710		-		6,710
Total intangible assets	$	18,790	$	5,447	$	13,343

	December 31, 201 9
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	10,480	$	3,805	$	6,675
Technology		600		380		220
Patents		590		541		49
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		12,080		5,136		6,944
Indefinite-lived intangible assets:
Trademarks		6,710		-		6,710
Total intangible assets	$	18,790	$	5,136	$	13,654

We generally amortize our finite-lived intangible assets over their estimated useful lives on a straight-line basis, unless an alternate amortization method can be reliably determined. Any such alternate amortization method would be based on the pattern in which the economic benefits of the intangible asset are expected to be consumed.

None

of our intangible assets have any residual value.

Total amortization expense for our finite-lived intangible assets was

$311

and

$317,

respectively, for the

three

months ended

March 31, 2020

and

2019.

The following table sets forth the estimated annual amortization expense for each of the next

five

years:

2020 (remainder)	$	923
2021	$	1,226
2022	$	1,167
2023	$	1,067
2024	$	980

Assessment for Impairment

of Goodwill and Long-Lived Assets

As discussed in Note

goodwill is assessed for impairment annually in the

fourth

quarter on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill

may

be impaired. Long-lived assets are assessed for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets

may

not

be fully recoverable or that the useful lives of these assets are

longer appropriate. As a result of recent market conditions and trends, including the significant impact of the ongoing COVID-

pandemic on the global economy, we performed a qualitative review of facts and circumstances to determine whether it was more likely than

not

that our goodwill or long-lived assets were impaired and if, as a result, a quantitative impairment assessment was required to be performed as of

March 31, 2020.

Our review included identifying and weighting the significant factors that have impacted our business operations in recent months, both positively and negatively. We considered the nature of these factors, including whether they were ongoing and related to our core business and markets, or non-recurring and reflected macro-economic or global events that are

not

directly related to our core business and markets. As a result of our qualitative review, we determined that is was more likely than

not

that our goodwill and long-lived assets were

not

impaired and, therefore,

quantitative assessment for impairment was required and, thus

not

performed, as of

March 31, 2020.

As a result of the ongoing uncertainty surrounding the impact of the COVID-

pandemic on our operations, we expect to perform similar qualitative reviews at various points throughout the balance of

2020.

There can be

assurance that we will be able to continue to conclude that it is more likely than

not

that our goodwill and long-lived assets are

not

impaired. We

may

determine that we need to perform a quantitative assessment for impairment at some point prior to the

fourth

quarter, when our annual assessment typically occurs. Such a quantitative assessment could result in a determination that an impairment exists which would result in recording an impairment charge. The amount of any such impairment charge could be material. Any future impairment charge recorded could materially adversely impact our balance sheet and results of operations and could result in our being unable to borrow funds that would otherwise be available under our revolving credit facility discussed in Notes

and

13.

Note 4 - Revenue From Contracts With Customers

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

(

)

REVENUE FROM CONTRACTS WITH CUSTOMERS

The following tables provide additional information about our revenue from contracts with customers, including revenue by customer and product type and revenue by market. See also Note

for information about revenue by operating segment and geographic region.

	Three Months Ended March 31,
	20 20		201 9
Net revenues by customer type:
End user	$	9,922	$	16,037
OEM/Integrator		1,308		2,025
	$	11,230	$	18,062

Net revenues by product type:
Thermal test	$	4,147	$	4,967
Thermal process		3,748		6,009
Semiconductor production test		1,825		5,284
Service/other		1,510		1,802
	$	11,230	$	18,062

Net revenues by market:
Semiconductor	$	5,011	$	10,111
Industrial		4,227		5,946
Defense/aerospace		1,408		982
Telecommunications		411		593
Other non-semiconductor markets		173		430
	$	11,230	$	18,062

There was

not

a significant change in the amount of the allowance for doubtful accounts for the

three

months ended

March

31,

2020.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

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+ Details

Note 5 - Major Customers

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

(

)

MAJOR CUSTOMERS

During the

three

months ended

March 31, 2020,

customer accounted for

10%

or more of our consolidated net revenues. During the

three

months ended

March 31, 2019,

Texas Instruments Incorporated accounted for

16%

of our consolidated net revenues. While both of our segments sold to this customer, these revenues were primarily generated by our EMS segment.

other customers accounted for

10%

or more of our consolidated net revenues during the

three

months ended

March 31, 2019.

Note 6 - Inventories

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Inventory Disclosure [Text Block]

(

)

INVENTORIES

Inventories held at

March 31, 2020

and

December 31, 2019

were comprised of the following:

	March 31, 20 20		December 31, 201 9
Raw materials	$	5,471	$	5,369
Work in process		1,109		949
Inventory consigned to others		46		54
Finished goods		1,094		810
Total inventories	$	7,720	$	7,182

Note 7 - Leases

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(

)

LEASES

We lease our offices, warehouse facilities and certain equipment under non-cancellable operating leases which expire at various dates through

2028.

Total operating lease and short-term lease costs for the

three

months ended

March 31, 2020

and

2019

were as follows:

	Three Months Ended March 31,
	2020		2019

Operating lease cost	$	392	$	366
Short-term lease cost	$	12	$	13

The following is additional information about our leases as of

March 31, 2020:

Range of remaining lease terms (in years)	0.8	to	8.1
Weighted average remaining lease term (in years)			5.5
Weighted average discount rate			4.8%

Maturities of lease liabilities as of

March 31, 2020

were as follows:

2020 (remainder)	$	1,168
2021		1,252
2022		1,089
2023		1,106
2024		1,140
Thereafter		1,012
Total lease payments	$	6,767
Less imputed interest		(820	)
Total	$	5,947

Supplemental Cash Flow Information

Total amortization of right of use assets for the

three

months ended

March 31, 2020

and

2019

was

$325

and

$306,

respectively.

During the

three

months ended

March 31, 2020,

we recorded a non-cash increase in our ROU assets and operating lease liabilities as a result of a modification of the lease for our EMS facility in Fremont, California. On

January 23, 2020,

we executed an amendment to this lease, which extended the term for a period of

months commencing on

November 1, 2020

and expiring on

November 30, 2025.

At the effective date of this modification, we recorded an increase in our ROU assets and operating lease liabilities of approximately

$1,176.

During the

three

months ended

March 31, 2019,

we recorded a non-cash decrease in our ROU assets and operating lease liabilities as a result of a modification of the lease for Ambrell’s U.K. facility. This lease had an original term of

years, which extended through

August 2029.

The lease included the option to terminate the lease at specified points in time without penalty. We exercised this option in

March 2019,

and the lease expired in

September 2019.

At the effective date of this modification, we recorded a reduction in our ROU assets and operating lease liabilities of approximately

$486.

Note 8 - Debt

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Debt Disclosure [Text Block]

(

)

DEBT

Letters of Credit

We have issued letters of credit as security deposits for certain of our domestic leases. These letters of credit are secured by pledged certificates of deposit which are classified as Restricted Certificates of Deposit on our balance sheets. The terms of our leases require us to renew these letters of credit at least

days prior to their expiration dates for successive terms of

not

less than

one

year until lease expiration.

Our outstanding letters of credit at

March 31, 2020

and

December 31, 2019

consisted of the following:

				Letters of Credit Amount Outstanding
	Original L/C Issue Date	L/C Expiration Date	Lease Expiration Date	March 31, 20 20		December 31, 201 9
Mt. Laurel, NJ	3/29/2010	4/30/2021	4/30/2021	$	90	$	90
Mansfield, MA	10/27/2010	12/31/2024	12/31/2024		50		50
				$	140	$	140

Line of Credit

As discussed in Note

and described more fully in Note

13,

April 10, 2020,

we entered into the Agreement with M&T. Under the terms of the Agreement, M&T has provided us with a

$7,500

revolving credit facility, guaranteed by our subsidiaries. This facility was put in place to provide us with additional liquidity in response to the current business environment, as a result of the COVID-

pandemic.

Note 9 - Stock-based Compensation

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

(

)

STOCK-BASED COMPENSATION

As of

March 31, 2020,

we have unvested restricted stock awards and stock options granted under stock-based compensation plans that are described more fully in Note

to the consolidated financial statements in our

2019

Form

-K.

As of

March 31, 2020,

total unrecognized compensation expense related to unvested restricted stock awards and stock options was

$1,791.

The weighted average period over which this expense is expected to be recognized is

2.7

years. The following table shows the allocation of the compensation expense we recorded during the

three

months ended

March 31, 2020

and

2019,

respectively, related to stock-based compensation:

	Three Months Ended March 31,
	20 20		201 9
Cost of revenues	$	-	$	-
Selling expense		3		-
Engineering and product development expense		10		3
General and administrative expense		174		180
	$	187	$	183

There was

stock-based compensation expense capitalized in the

three

months ended

March 31, 2020

2019.

Restricted Stock Awards

We record compensation expense for restricted stock awards based on the quoted market price of our stock at the grant date and amortize the expense over the vesting period. Restricted stock awards generally vest over

four

years for employees and over

one

year for our independent directors (

25%

at each of

March 31,

June 30,

September 30,

and

December 31

of the year in which they were granted).

The following table summarizes the activity related to unvested shares of restricted stock for the

three

months ended

March

31,

2020:

	Number of Shares			Weighted Average Grant Date Fair Value
Unvested shares outstanding, January 1, 2020		165,031		$	6.55
Granted		58,160			3.69
Vested		(44,300	)		5.42
Forfeited		(8,315	)		6.10
Unvested shares outstanding, March 31, 2020		170,576			5.69

The total fair value of the shares that vested during the

three

months ended

March 31, 2020

and

2019

was

$155

and

$239,

respectively, as of the vesting dates of these shares.

Stock Options

We record compensation expense for stock options based on the fair value of the options as of the grant date.

option

may

be granted with an exercise period in excess of

ten

years from the date of grant. Generally, stock options will be granted with an exercise price equal to the fair market value of our stock on the date of grant and will vest over

four

years.

The fair value for stock options granted during the

three

months ended

March 31, 2020

and

2019

was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:

	20 20			201 9
Risk-free interest rate		0.48	%		2.49	%
Dividend yield		0.00	%		0.00	%
Expected common stock market price volatility factor		.43			.41
Weighted average expected life of stock options (years)		6.25			6.25

The per share weighted average fair value of stock options issued during the

three

months ended

March 31, 2020

and

2019

was

$1.55

and

$3.13,

respectively.

The following table summarizes the activity related to stock options for the

three

months ended

March 31, 2020:

	Number of Shares			Weighted Average Grant Date Fair Value
Options outstanding, January 1, 2020 (87,900 exercisable)		506,810		$	6.89
Granted		66,300			3.69
Exercised		-			-
Forfeited		(24,790	)		6.10
Options outstanding, March 31, 2020 (172,525 exercisable)		548,320			6.54

Note 10 - Stock Repurchase Plan

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Stock Repurchase Plan [Text Block]

(

)

STOCK REPURCHASE PLAN

July 31, 2019,

our Board of Directors authorized the repurchase of up to

$3,000

of our common stock from time to time on the open market, in compliance with Rule

10b

under the Securities Exchange Act of

1934,

as amended (the “Exchange Act”), or in privately negotiated transactions pursuant to a newly authorized stock repurchase plan (the

“2019

Repurchase Plan”). Repurchases

may

be made under a Rule

10b5

plan entered into with RW Baird & Co., which would permit shares to be repurchased when we might otherwise be precluded from doing so under insider trading laws and our internal trading windows. The

2019

Repurchase Plan does

not

obligate us to purchase any particular amount of common stock and

may

be suspended or discontinued at any time without prior notice. The

2019

Repurchase Plan is funded using our operating cash flow or available cash. Purchases began on

September 18, 2019

under this plan. During the quarter ended

March 31, 2020,

we repurchased

13,767

under the

2019

Repurchase Plan at a cost of

$74,

including fees paid to our broker. Through

March 31, 2020,

we have repurchased a total of

243,075

shares under the

2019

Repurchase Plan at a cost of

$1,216,

which includes fees paid to our broker of

$6.

All of the repurchased shares were retired. On

March 2, 2020,

we suspended repurchases under the

2019

Repurchase Plan.

Note 11 - Employee Benefit Plans

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Retirement Benefits [Text Block]

(

)

EMPLOYEE BENEFIT PLANS

We have defined contribution

401

(k) plans for our employees who work in the U.S. All permanent employees of inTEST Corporation, inTEST EMS LLC (“EMS LLC”), Temptronic Corporation (“Temptronic”) and inTEST Silicon Valley Corporation (“Silicon Valley”) who are at least

years of age are eligible to participate in the inTEST Corporation Incentive Savings Plan. We match employee contributions dollar for dollar up to

10%

of the employee's annual compensation, with a maximum limit of

$5.

Employer contributions vest ratably over

four

years. Matching contributions are discretionary. For the

three

months ended

March 31, 2020

and

2019,

expense under the plan was

$165

and

$190,

respectively.

All permanent employees of Ambrell are immediately eligible to participate in the Ambrell Corporation Savings & Profit Sharing Plan (the "Ambrell Plan") upon employment and are eligible for employer matching contributions after completing

one

year of service, as defined in the Ambrell Plan. The Ambrell Plan allows eligible employees to make voluntary contributions up to

100%

of compensation, up to the federal government contribution limits. We will make a matching contribution of

25%

of each employee's contributions up to a maximum of

of such employee's annual compensation. For the

three

months ended

March 31, 2020

and

2019,

expense under the plan was

$17

and

$23,

respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Note 12 - Segment Information

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(

)

SEGMENT INFORMATION

We have

two

reportable segments, Thermal and EMS, which are also our reporting units. Thermal includes the operations of Temptronic, Thermonics, Sigma, inTEST Thermal Solutions GmbH (Germany), inTEST Pte, Limited (Singapore) and Ambrell. Sales of this segment consist primarily of temperature management systems which we design, manufacture and market under our Temptronic, Thermonics and Sigma product lines, and precision induction heating systems which are designed, manufactured and marketed by Ambrell. In addition, this segment provides post-warranty service and support. EMS includes the operations of our manufacturing facilities in Mt. Laurel, New Jersey and Fremont, California. Sales of this segment consist primarily of manipulator, docking hardware and tester interface products, which we design, manufacture and market.

We operate our business worldwide and sell our products both domestically and internationally. Both of our segments sell to semiconductor manufacturers,

third

-party test and assembly houses and ATE manufacturers. Thermal also sells into a variety of markets outside of the Semi Market, including the automotive, defense/aerospace, energy, industrial, telecommunications and other markets.

	Three Months Ended March 31,
	20 20			201 9
Net Revenues:
Thermal	$	9,334		$	12,634
EMS		1,896			5,428
	$	11,230		$	18,062
Earnings (loss) before income tax expense (benefit):
Thermal	$	(426	)	$	1,144
EMS		(1,004	)		1,047
Corporate		37			(729	)
	$	(1,393	)	$	1,462
Net earnings (loss):
Thermal	$	(350	)	$	891
EMS		(824	)		815
Corporate		31			(568	)
	$	(1,143	)	$	1,138

	March 31, 20 20		December 31, 201 9
Identifiable assets:
Thermal	$	51,223	$	51,621
EMS		7,076		7,319
Corporate		760		775
	$	59,059	$	59,715

The following table provides information about our geographic areas of operation. Net revenues from unaffiliated customers are based on the location to which the goods are shipped.

	Three Months Ended March 31,
	20 20		201 9
Net revenues:
U.S.	$	5,719	$	6,810
Foreign		5,511		11,252
	$	11,230	$	18,062

	March 31, 20 20		December 31, 201 9
Property and equipment:
U.S.	$	2,062	$	2,163
Foreign		279		257
	$	2,341	$	2,420

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Note 13 - Subsequent Events

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

(

)

SUBSEQUENT EVENTS

Line of Credit

As previously mentioned in Notes

and

April 10, 2020 (

the “Closing Date”), we entered into the Agreement with M&T. Under the terms of the Agreement, M&T has provided us with a

$7,500

revolving credit facility under which our domestic subsidiaries, Ambrell, EMS LLC, Temptronic and Silicon Valley, are guarantors (collectively, the “Guarantors”). The revolving credit facility has a

364

-day contract period that began on the Closing Date and expires on

April 9, 2021 (

the “Contract Period”). The principal balance of the revolving credit facility will accrue interest at the LIBOR rate plus

2.5%.

In the event the current LIBOR rate is

longer available or representative, the Agreement includes a mechanism for providing an alternate benchmark. Interest payments are due on a monthly basis, and principal payments are due, along with any accrued and unpaid interest thereon, on the earlier of (a) the expiration of the Contract Period, or (b) on demand if a continued event of default occurs.

The Agreement contains customary default provisions including, but

not

limited to, the failure by us to repay obligations when due, violation of provisions or representations provided in the Agreement, bankruptcy of inTEST Corporation, suspension of the business of inTEST Corporation or any of our subsidiaries and certain material judgments. After expiration of the Contract Period, or if a continued event of default occurs, interest will accrue on the principal balance at a rate of

in excess of the then applicable non-default interest rate.

Our obligations under the Agreement are secured by liens on substantially all our tangible and intangible assets that are owned as of the Closing Date, as defined in the Agreement, or acquired thereafter.

The Agreement includes customary affirmative, negative and financial covenants, including a maximum ratio of assets to liabilities and a fixed charge coverage ratio.

This facility was put in place to provide us with additional liquidity in response to the current business environment, as a result of the COVID-

pandemic. As of the date of this filing, we have drawn down

$2,800

on our revolving credit facility.

Paycheck Protection Program Loans

April 16, 2020,

we entered into a Term Note (the “Company PPP Note”) with M&T pursuant to the Paycheck Protection Program (the “PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) administered by the U.S. Small Business Administration (the “SBA”). Our wholly owned subsidiaries, Ambrell, EMS LLC, Temptronic and Silicon Valley (collectively with the Company, the “Borrowers”), each also entered a Term Note with M&T (each, a “PPP Note” and collectively with the Company PPP Note, the “PPP Notes”) pursuant to the PPP of the CARES Act. Each of the PPP Notes was dated

April 16, 2020,

except for the EMS LLC PPP Note, which was dated

April 14, 2020.

The total principal amount of the PPP Notes was

$2,829.

The Borrowers intended to use the proceeds of the PPP Notes for certain qualified expenses, including payroll costs, rent and utility costs in accordance with the relevant terms and conditions of the PPP under the CARES Act. Interest accrued on each of the PPP Notes at the rate of

1.00%

per annum. Subject to any forgiveness under the PPP, each of the PPP Notes were to mature

two

years following the date of issuance of the PPP Note and included a period for the

first

six

months during which time required payments of interest and principal were to be deferred. Beginning on the

seventh

month following the date of the PPP Notes, each Borrower was required to make

monthly payments of principal and interest. The PPP Notes could be prepaid at any time prior to maturity with

prepayment penalties. The PPP Notes provide for customary events of default, including, among others, those relating to failure to make payments, bankruptcy, breaches of representations and material adverse effects. The Borrowers did

not

provide any collateral or guarantees for the PPP Notes.

The Borrowers applied for the PPP Notes in good faith after carefully reviewing the Borrowers’ financial condition, and the economic impact and uncertainty caused by the COVID-

pandemic and determining that at that time the funds were necessary to maintain ongoing operations. Due to the new and changing guidance and statements from the SBA and U.S. Department of Treasury issued after the Borrowers applied for and entered into the PPP Notes, the Borrowers determined that they would repay the PPP Notes. Accordingly, on

May 5, 2020,

in light of the SBA’s new guidance, the Borrowers repaid the full amount of the PPP Notes to M&T along with the applicable interest.

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Basis Of Presentation And Use Of Estimates [Policy Text Block]

Basis of Presentation and Use of Estimates

-K for the year ended

December 31, 2019 (

“2019

Form

-K”) filed on

March 23, 2020

with the Securities and Exchange Commission.

Reclassification, Comparability Adjustment [Policy Text Block]

Reclassification

Certain prior period amounts have been reclassified to be comparable with the current period's presentation.

Subsequent Events, Policy [Policy Text Block]

Subsequent Events

We have made an assessment of our operations and determined that there were

material subsequent events requiring adjustment to, or disclosure in, our consolidated financial statements for the

three

months ended

March 31, 2020

other than those described in Note

under “COVID-

Pandemic” and in Note

13.

Business Combinations Policy [Policy Text Block]

Business Combinations

third

Goodwill Intangible And Long Lived Assets [Policy Text Block]

Goodwill, Intangible and Long-Lived Assets

We account for goodwill and intangible assets in accordance with Accounting Standards Codification (“ASC”) Topic

350

fourth

quarter on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill

may

not

that the fair value of a reporting unit is less than its carrying amount. If, as a result of our qualitative assessment, we determine that it is more-likely-than-

not

that the fair value of the reporting unit is greater than its carrying amount, a quantitative goodwill impairment test is

not

required. However, if, as a result of our qualitative assessment, we determine it is more-likely-than-

not

that the fair value of a reporting unit is less than its carrying amount, or, if we choose

not

Indefinite-lived intangible assets are assessed for impairment annually in the

fourth

not

that an indefinite-lived intangible asset is impaired. If, as a result of our qualitative assessment, we determine that it is more-likely-than-

not

that the fair value of the indefinite-lived intangible asset is less than its carrying amount, the quantitative impairment test is required; otherwise,

may

not

be fully recoverable or that the useful lives of these assets are

Revenue [Policy Text Block]

Revenue Recognition

We recognize revenue in accordance with the guidance in ASC Topic

606

may

Revenue is recorded in an amount that reflects the consideration we expect to receive in exchange for those products or services. We do

not

have any material variable consideration arrangements, or any material payment terms with our customers other than standard payment terms which generally range from net

to net

days. We generally do

not

provide a right of return to our customers. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.

Nature of Products and Services

We lease certain of our equipment under short-term leasing agreements with original lease terms of

six

months or less. Our lease agreements do

not

contain purchase options.

Types of Contracts with Customers

not

Contract Balances

We record accounts receivable at the time of invoicing. Accounts receivable, net of the allowance for doubtful accounts, is included in current assets on our balance sheet. To the extent that we do

not

Costs to Obtain a Contract with a Customer

The only costs we incur associated with obtaining contracts with customers are sales commissions that we pay to our internal sales personnel or

third

not

yet paid are included in current liabilities on our balance sheets.

Product Warranties

In connection with the sale of our products, we generally provide standard

one

- or

two

-year product warranties which are detailed in our terms and conditions and communicated to our customers. Our standard warranties are

not

offered for sale separately from our products; therefore, there is

not

Refer to Notes

and

for further information about our revenue from contracts with customers.

Inventory, Policy [Policy Text Block]

Inventories

Inventories are valued at cost on a

first

-in,

first

-out basis,

not

been used in a work order during the prior

twelve

months and the quantity of material on hand that is greater than the average annual usage of that material over the prior

three

$171

and

$107

for the

three

months ended

March 31, 2020

and

2019,

respectively.

Lessee, Leases [Policy Text Block]

Leases

We account for leases in accordance with ASC Topic

842

(Leases) which was effective for us as of

January 1, 2019.

Upon adoption of ASC Topic

842,

we elected the package of practical expedients which included the grandfathering of the lease classification that had been made under prior guidance and, accordingly, we did

not

re-evaluate any of our leases for classification purposes in connection with the implementation of ASC Topic

842.

All our lease contracts are still being treated as operating leases. We do

not

currently have any lease contracts that meet the criteria to be categorized as financing leases. We did

not

elect the hindsight practical expedient and therefore did

not

reevaluate the lease terms that we used under prior guidance. The implementation of ASC Topic

842

had a significant impact on our consolidated balance sheet as a result of recording right-of-use assets and lease liabilities for all our multi-year leases. Under prior guidance,

none

842

did

not

may

be either explicitly or implicitly specified in the contract. In addition, the supplier must

not

have any practical ability to substitute a different asset and would

not

842.

not

currently have any finance leases. We do

not

have embedded leases nor do we have any initial direct costs related to our lease contracts.

None

may

not

obligated to pay rent. For these leases, our ROU asset and lease liability are calculated including any rent holiday in the determination of the life of the lease.

not

We have made an accounting policy election

not

to apply the recognition requirements of ASC

842

to short-term leases (leases with a term of

one

year or less at the commencement date of the lease). Lease expense for short-term lease payments is recognized on a straight-line basis over the lease term.

See Note

for further disclosures regarding our leases.

Contingent Liability, Repayment of State and Local Grant Funds Received, Policy [Policy Text Block]

Contingent Liability for Repayment of State and Local Grant

Proceeds

In connection with leasing a new facility in Rochester, New York, which our subsidiary, Ambrell, occupied in

May 2018,

we entered into agreements with the city of Rochester and the state of New York under which we

may

receive grants totaling up to

$550

to help offset a portion of the cost of the leasehold improvements we have made to this facility. In exchange for the funds we

may

receive under these agreements, we are required to create and maintain specified levels of employment in this location through various dates ending in

2023.

If we fail to meet these employment targets, we

may

be required to repay a proportionate share of the proceeds. As of

March 31, 2020,

we have received

$463

in grant funds. We do

not

expect to receive the remaining

$87

of grant funds, as we currently do

not

expect to increase our number of employees to the level required to receive these funds prior to the expiration of the term of the agreement. As of

December 31, 2019,

we were

not

in compliance with the employment targets as specified in the grant agreement with the city of Rochester. We applied for and received a waiver of this requirement for the year ended

December 31, 2019.

As of

March 31, 2020,

we are still

not

in compliance with these employment targets. We have until

December 31, 2020

to come into compliance with the targets as outlined in the waiver received for the year ended

December 31, 2019.

If we do

not

achieve compliance, we will need to apply for an additional waiver or we

may

Share-based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

We account for stock-based compensation in accordance with ASC Topic

718

Income Tax, Policy [Policy Text Block]

Income Taxes

not

that such assets will

not

be realized.

Earnings Per Share, Policy [Policy Text Block]

Net Earnings

(Loss)

Per Common Share

	Three Months Ended March,
	20 20		201 9
Weighted average common shares outstanding - basic		10,220,853		10,385,017
Potentially dilutive securities:
Unvested shares of restricted stock and employee stock options		-		29,313
Weighted average common shares and common share equivalents outstanding - diluted		10,220,853		10,414,330

Average number of potentially dilutive securities excluded from calculation		685,667		284,240

New Accounting Pronouncements, Policy [Policy Text Block]

Effect of Recently Issued Amendments to Authoritative Accounting Guidance

June 2016,

the Financial Accounting Standards Board (“FASB”) issued amendments to the guidance for accounting for credit losses. In

November 2019,

December 15, 2022.

first

reporting period in which the guidance is effective. We plan to adopt the amendments when they become effective for us on

January 1, 2023.

We are currently evaluating the impact the adoption of these amendments will have on our consolidated financial statements.

December 2019,

the FASB issued amendments to the accounting for income taxes, which add new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic

740

(Income Taxes) and changing the accounting for certain income tax transactions. The amendments are effective for us as of

January 1, 2021.

Early adoption is permitted. We plan to adopt the amendments when they become effective for us on

January 1, 2021.

We do

not

expect these amendments to have a material impact on our consolidated financial statements.

Note 2 - Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2020

Notes Tables

Schedule of Weighted Average Number of Shares [Table Text Block]

	Three Months Ended March,
	20 20		201 9
Weighted average common shares outstanding - basic		10,220,853		10,385,017
Potentially dilutive securities:
Unvested shares of restricted stock and employee stock options		-		29,313
Weighted average common shares and common share equivalents outstanding - diluted		10,220,853		10,414,330

Average number of potentially dilutive securities excluded from calculation		685,667		284,240

Note 3 - Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2020

Notes Tables

Schedule of Goodwill [Table Text Block]

Sigma	$	1,656
Thermonics		50
Ambrell		12,032
Total	$	13,738

Schedule of Carrying Value of Finite-lived Intangible Assets [Table Text Block]

Balance - January 1, 2020	$	6,944
Amortization		(311	)
Balance March 31, 2020	$	6,633

Schedule Of Intangible Assets [Table Text Block]

	March 31, 20 20
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	10,480	$	4,079	$	6,401
Technology		600		410		190
Patents		590		548		42
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		12,080		5,447		6,633
Indefinite-lived intangible assets:
Trademarks		6,710		-		6,710
Total intangible assets	$	18,790	$	5,447	$	13,343

	December 31, 201 9
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	10,480	$	3,805	$	6,675
Technology		600		380		220
Patents		590		541		49
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		12,080		5,136		6,944
Indefinite-lived intangible assets:
Trademarks		6,710		-		6,710
Total intangible assets	$	18,790	$	5,136	$	13,654

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

2020 (remainder)	$	923
2021	$	1,226
2022	$	1,167
2023	$	1,067
2024	$	980

Note 4 - Revenue From Contracts With Customers (Tables)

3 Months Ended

Mar. 31, 2020

Notes Tables

Disaggregation of Revenue [Table Text Block]

	Three Months Ended March 31,
	20 20		201 9
Net revenues by customer type:
End user	$	9,922	$	16,037
OEM/Integrator		1,308		2,025
	$	11,230	$	18,062

Net revenues by product type:
Thermal test	$	4,147	$	4,967
Thermal process		3,748		6,009
Semiconductor production test		1,825		5,284
Service/other		1,510		1,802
	$	11,230	$	18,062

Net revenues by market:
Semiconductor	$	5,011	$	10,111
Industrial		4,227		5,946
Defense/aerospace		1,408		982
Telecommunications		411		593
Other non-semiconductor markets		173		430
	$	11,230	$	18,062

Note 6 - Inventories (Tables)

3 Months Ended

Mar. 31, 2020

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	March 31, 20 20		December 31, 201 9
Raw materials	$	5,471	$	5,369
Work in process		1,109		949
Inventory consigned to others		46		54
Finished goods		1,094		810
Total inventories	$	7,720	$	7,182

Note 7 - Leases (Tables)

3 Months Ended

Mar. 31, 2020

Notes Tables

Lease, Cost [Table Text Block]

	Three Months Ended March 31,
	2020		2019

Operating lease cost	$	392	$	366
Short-term lease cost	$	12	$	13

Range of remaining lease terms (in years)	0.8	to	8.1
Weighted average remaining lease term (in years)			5.5
Weighted average discount rate			4.8%

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

2020 (remainder)	$	1,168
2021		1,252
2022		1,089
2023		1,106
2024		1,140
Thereafter		1,012
Total lease payments	$	6,767
Less imputed interest		(820	)
Total	$	5,947

Note 8 - Debt (Tables)

3 Months Ended

Mar. 31, 2020

Notes Tables

Schedule Of Outstanding Letters Of Credit [Table Text Block]

				Letters of Credit Amount Outstanding
	Original L/C Issue Date	L/C Expiration Date	Lease Expiration Date	March 31, 20 20		December 31, 201 9
Mt. Laurel, NJ	3/29/2010	4/30/2021	4/30/2021	$	90	$	90
Mansfield, MA	10/27/2010	12/31/2024	12/31/2024		50		50
				$	140	$	140

Note 9 - Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2020

Notes Tables

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	Three Months Ended March 31,
	20 20		201 9
Cost of revenues	$	-	$	-
Selling expense		3		-
Engineering and product development expense		10		3
General and administrative expense		174		180
	$	187	$	183

Schedule of Nonvested Share Activity [Table Text Block]

	Number of Shares			Weighted Average Grant Date Fair Value
Unvested shares outstanding, January 1, 2020		165,031		$	6.55
Granted		58,160			3.69
Vested		(44,300	)		5.42
Forfeited		(8,315	)		6.10
Unvested shares outstanding, March 31, 2020		170,576			5.69

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	20 20			201 9
Risk-free interest rate		0.48	%		2.49	%
Dividend yield		0.00	%		0.00	%
Expected common stock market price volatility factor		.43			.41
Weighted average expected life of stock options (years)		6.25			6.25

Share-based Payment Arrangement, Option, Activity [Table Text Block]

	Number of Shares			Weighted Average Grant Date Fair Value
Options outstanding, January 1, 2020 (87,900 exercisable)		506,810		$	6.89
Granted		66,300			3.69
Exercised		-			-
Forfeited		(24,790	)		6.10
Options outstanding, March 31, 2020 (172,525 exercisable)		548,320			6.54

Note 12 - Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended March 31,
	20 20			201 9
Net Revenues:
Thermal	$	9,334		$	12,634
EMS		1,896			5,428
	$	11,230		$	18,062
Earnings (loss) before income tax expense (benefit):
Thermal	$	(426	)	$	1,144
EMS		(1,004	)		1,047
Corporate		37			(729	)
	$	(1,393	)	$	1,462
Net earnings (loss):
Thermal	$	(350	)	$	891
EMS		(824	)		815
Corporate		31			(568	)
	$	(1,143	)	$	1,138

Revenue from External Customers by Geographic Areas [Table Text Block]

	Three Months Ended March 31,
	20 20		201 9
Net revenues:
U.S.	$	5,719	$	6,810
Foreign		5,511		11,252
	$	11,230	$	18,062

Long-lived Assets by Geographic Areas [Table Text Block]

	March 31, 20 20		December 31, 201 9
Property and equipment:
U.S.	$	2,062	$	2,163
Foreign		279		257
	$	2,341	$	2,420

Asset [Member]

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	March 31, 20 20		December 31, 201 9
Identifiable assets:
Thermal	$	51,223	$	51,621
EMS		7,076		7,319
Corporate		760		775
	$	59,059	$	59,715

Note 1 - Nature of Operations (Details Textual) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Apr. 10, 2020 USD ($)
Number of Operating Segments	2
Net Income (Loss) Attributable to Parent, Total	$ (1,143)	$ 1,138
Revenue from Contract with Customer, Including Assessed Tax	11,230	18,062
Subsequent Event [Member] \| M&T [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 7,500
Semiconductor Market [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 5,011	$ 10,111

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	May 31, 2018
Inventory Write-down	$ 171	$ 107
Contingent Liability, Repayment of State and Local Grant Funds Received	463		$ 463
City of Rochester and State of New York [Member]
Covenant, Future Amount Receivable	$ 87			$ 550

Note 2 - Summary of Significant Accounting Policies - Weighted Average Common Shares (Details) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Weighted average common shares outstanding - basic (in shares)	10,220,853	10,385,017
Unvested shares of restricted stock and employee stock options (in shares)		29,313
Weighted average common shares and common share equivalents outstanding - diluted (in shares)	10,220,853	10,414,330
Average number of potentially dilutive securities excluded from calculation (in shares)	685,667	284,240

Note 3 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Goodwill, Ending Balance	$ 13,738		$ 13,738
Amortization of Intangible Assets, Total	$ 311	$ 317

Note 3 - Goodwill and Intangible Assets - Component of Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Goodwill	$ 13,738	$ 13,738
Sigma [Member]
Goodwill	1,656
Thermonics [Member]
Goodwill	50
Ambrell [Member]
Goodwill	$ 12,032

Note 3 - Goodwill and Intangible Assets - Changes in the Amount of the Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Balance	$ 6,944
Amortization	$ (311)	$ (317)

Note 3 - Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Finite-lived, Gross Carrying Amount	$ 12,080	$ 12,080
Finite-lived, Accumulated Amortization	5,447	5,136
Net Carrying Amount	6,633	6,944
Intangible Assets, Gross Carrying Amount	18,790	18,790
Net Carrying Amount	13,343	13,654
Trademarks [Member]
Indefinite-lived, Gross Carrying Amount	6,710	6,710
Net Carrying Amount	6,710	6,710
Customer Relationships [Member]
Finite-lived, Gross Carrying Amount	10,480	10,480
Finite-lived, Accumulated Amortization	4,079	3,805
Net Carrying Amount	6,401	6,675
Patented Technology [Member]
Finite-lived, Gross Carrying Amount	600	600
Finite-lived, Accumulated Amortization	410	380
Net Carrying Amount	190	220
Patents [Member]
Finite-lived, Gross Carrying Amount	590	590
Finite-lived, Accumulated Amortization	548	541
Net Carrying Amount	42	49
Computer Software, Intangible Asset [Member]
Finite-lived, Gross Carrying Amount	270	270
Finite-lived, Accumulated Amortization	270	270
Net Carrying Amount
Trade Names [Member]
Finite-lived, Gross Carrying Amount	140	140
Finite-lived, Accumulated Amortization	140	140
Net Carrying Amount

Note 3 - Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Thousands	Mar. 31, 2020 USD ($)
2020 (remainder)	$ 923
2021	1,226
2022	1,167
2023	1,067
2024	$ 980

Note 4 - Revenue From Contracts With Customers (Details Textual) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease), Total	$ 0

Note 4 - Revenue From Contracts With Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net revenues	$ 11,230	$ 18,062
Semiconductor Market [Member]
Net revenues	5,011	10,111
Industrial Market [Member]
Net revenues	4,227	5,946
Defense/ Aerospace [Member]
Net revenues	1,408	982
Telecommunications Market [Member]
Net revenues	411	593
Other Non-semiconductors Markets [Member]
Net revenues	173	430
Thermal Testing Products [Member]
Net revenues	4,147	4,967
Thermal Process [Member]
Net revenues	3,748	6,009
Semiconductor Production Test Products [Member]
Net revenues	1,825	5,284
Service and Other Products [Member]
Net revenues	1,510	1,802
End User [Member]
Net revenues	9,922	16,037
OEM and Integrators [Member]
Net revenues	$ 1,308	$ 2,025

Note 5 - Major Customers (Details Textual)	3 Months Ended
Note 5 - Major Customers (Details Textual)	Mar. 31, 2019
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| Texas Instruments Incorporated [Member]
Concentration Risk, Percentage	16.00%

Note 6 - Inventories - Inventories Held (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Raw materials	$ 5,471	$ 5,369
Work in process	1,109	949
Inventory consigned to others	46	54
Finished goods	1,094	810
Total inventories	$ 7,720	$ 7,182

Note 7 - Leases (Details Textual) - USD ($) $ in Thousands	3 Months Ended
Note 7 - Leases (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019	Jan. 23, 2020
Operating Lease, Right-of-Use Asset, Amortization Expense	$ 325	$ 306
Lease Agreement, EMS Facility in Fremont, California [Member]
Lessee, Operating Lease, Renewal Term (Month)			5 years 30 days
Increase in Operating Lease Liabilities and Right-of-Use Assets, Non-cash	$ 1,176
Lease Agreement, Ambrell’s U.K [Member]
Lessee, Operating Lease, Term of Contract (Year)		15 years
Decrease In Operating Lease Liabilities and Right-of-Use Assets, Non-cash		$ 486

Note 7 - Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating lease cost	$ 392	$ 366
Short-term lease cost	$ 12	$ 13
Weighted average remaining lease term (in years) (Year)	5 years 182 days
Weighted average discount rate	4.80%
Minimum [Member]
Range of remaining lease terms (in years) (Year)	292 days
Maximum [Member]
Range of remaining lease terms (in years) (Year)	8 years 36 days

Note 7 - Leases - Maturities of Lease Liabilities (Details) $ in Thousands	Mar. 31, 2020 USD ($)
2020 (remainder)	$ 1,168
2021	1,252
2022	1,089
2023	1,106
2024	1,140
Thereafter	1,012
Total lease payments	6,767
Less imputed interest	(820)
Total	$ 5,947

Note 8 - Debt (Details Textual) $ in Thousands	Apr. 10, 2020 USD ($)
Subsequent Event [Member] \| Revolving Credit Facility [Member] \| M&T [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 7,500

Note 8 - Debt - Outstanding Letters of Credit (Details) - Letter of Credit [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Letters of Credit Amount Outstanding	$ 140	$ 140
Mt Laurel [Member]
Line of Credit, Issue Date	Mar. 29, 2010
Line of Credit, Expiration Date	Apr. 30, 2021
Lease Expiration Date	Apr. 30, 2021
Letters of Credit Amount Outstanding	$ 90	90
Mansfield [Member]
Line of Credit, Issue Date	Oct. 27, 2010
Line of Credit, Expiration Date	Dec. 31, 2024
Lease Expiration Date	Dec. 31, 2024
Letters of Credit Amount Outstanding	$ 50	$ 50

Note 9 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 1,791
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)	2 years 255 days
Share-based Payment Arrangement, Amount Capitalized	$ 0	$ 0
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 155	$ 239
Restricted Stock [Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	4 years
Restricted Stock [Member] \| Independent Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	1 year
Restricted Stock [Member] \| Independent Directors [Member] \| Share-based Payment Arrangement, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	25.00%
Restricted Stock [Member] \| Independent Directors [Member] \| Share-based Payment Arrangement, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	25.00%
Restricted Stock [Member] \| Independent Directors [Member] \| Share-based Payment Arrangement, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	25.00%
Restricted Stock [Member] \| Independent Directors [Member] \| Share-based Compensation Award, Tranche Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	25.00%
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)	$ 1.55	$ 3.13

Note 9 - Stock-based Compensation Plan - Allocation of Share-based Compensation Expense (Details) - Restricted Stock [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Allocation of Share-based Compensation Expense	$ 187	$ 183
Cost of Sales [Member]
Allocation of Share-based Compensation Expense
Selling and Marketing Expense [Member]
Allocation of Share-based Compensation Expense	3
Research and Development Expense [Member]
Allocation of Share-based Compensation Expense	10	3
General and Administrative Expense [Member]
Allocation of Share-based Compensation Expense	$ 174	$ 180

Note 9 - Stock-based Compensation Plan - Unvested Stock Activity (Details) - Restricted Stock [Member] - $ / shares	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Unvested shares outstanding (in shares)	165,031
Unvested shares outstanding, weighted average exercise price (in dollars per share)	$ 5.69	$ 6.55
Granted, number of shares (in shares)	58,160
Granted, weighted average exercise price (in dollars per share)	$ 3.69
Vested, number of shares (in shares)	(44,300)
Vested, weighted average exercise price (in dollars per share)	$ 5.42
Forfeited, number of shares (in shares)	(8,315)
Forfeited, weighted average exercise price (in dollars per share)	$ 6.10
Unvested shares outstanding (in shares)	170,576

Note 9 - Stock-based Compensation Plan - Stock Options Valuation Assumptions (Details) - Share-based Payment Arrangement, Option [Member]	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Risk-free interest rate	0.48%	2.49%
Dividend yield	0.00%	0.00%
Expected common stock market price volatility factor	0.43%	0.41%
Weighted average expected life of stock options (years) (Year)	6 years 91 days	6 years 91 days

Note 9 - Stock-based Compensation - Stock Option Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Options outstanding, number of shares (in shares)	506,810
Options outstanding, weighted average exercise price (in dollars per share)	$ 6.54	$ 6.89
Granted, number of shares (in shares)	66,300
Granted, weighted average exercise price (in dollars per share)	$ 3.69
Exercised, number of shares (in shares)
Forfeited, number of shares (in shares)	24,790
Forfeited, weighted average exercise price (in dollars per share)	$ 6.10
Options outstanding, number of shares (in shares)	548,320
Options outstanding, weighted average exercise price (in dollars per share)	$ 6.54

Note 9 - Stock-based Compensation - Stock Option Activity (Details) (Parentheticals) - shares	Mar. 31, 2020	Dec. 31, 2019
Options exercisable (in shares)	172,525	87,900

Note 10 - Stock Repurchase Plan (Details Textual) - USD ($) $ in Thousands	3 Months Ended	53 Months Ended
	Mar. 31, 2020	Mar. 31, 2020	Jul. 31, 2019
Stock Repurchase Program, Authorized Amount			$ 3,000
Stock Repurchased and Retired During Period, Shares (in shares)	13,767	243,075
Stock Repurchased and Retired During Period, Value	$ 74	$ 1,216
Payments for Stock Repurchased Broker Fees		$ 6

Note 11 - Employee Benefit Plans (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
401(k) Plan [Member]
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	10.00%
Defined Contribution Plan Maximum Annual Employer Matching Contribution Per Emplyee Amount	$ 5
Defined Contribution Plan Employer Matching Contribution Vesting Period (Year)	4 years
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 165	$ 190
The Ambrell Plan [Member]
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	2.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 17	$ 23
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	100.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	25.00%

Note 12 - Segment Information (Details Textual)	3 Months Ended
Note 12 - Segment Information (Details Textual)	Mar. 31, 2020
Number of Reportable Segments	2

Note 12 - Segment Information - Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net revenues	$ 11,230	$ 18,062
Earnings (loss) before income tax expense (benefit)	(1,393)	1,462
Net earnings (loss)	(1,143)	1,138
Corporate, Non-Segment [Member]
Earnings (loss) before income tax expense (benefit)	37	(729)
Net earnings (loss)	31	(568)
Thermal Testing Products [Member] \| Operating Segments [Member]
Net revenues	9,334	12,634
Earnings (loss) before income tax expense (benefit)	(426)	1,144
Net earnings (loss)	(350)	891
EMS [Member] \| Operating Segments [Member]
Net revenues	1,896	5,428
Earnings (loss) before income tax expense (benefit)	(1,004)	1,047
Net earnings (loss)	$ (824)	$ 815

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Note 12 - Segment Information - Identifiable Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Identifiable Assets	$ 59,059	$ 59,715
Corporate, Non-Segment [Member]
Identifiable Assets	760	775
Thermal Testing Products [Member]
Identifiable Assets	51,223	51,621
EMS [Member]
Identifiable Assets	$ 7,076	$ 7,319

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(11))
-URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (bb)
-URI http://asc.fasb.org/extlink&oid=121559654&loc=d3e5710-111685

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 25
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=116870748&loc=SL6758485-165988

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(12))
-URI http://asc.fasb.org/extlink&oid=120400017&loc=d3e572229-122910

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

+ Details

Note 12 - Segment Information - Net Revenue From Unaffiliated Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net revenues	$ 11,230	$ 18,062
UNITED STATES
Net revenues	5,719	6,810
Non-US [Member]
Net revenues	$ 5,511	$ 11,252

- Definition

+ References

+ Details

Note 12 - Segment Information - Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property and Equipment	$ 2,341	$ 2,420
UNITED STATES
Property and Equipment	2,062	2,163
Non-US [Member]
Property and Equipment	$ 279	$ 257

Note 13 - Subsequent Events (Details Textual) - Subsequent Event [Member] - USD ($) $ in Thousands			1 Months Ended
	Apr. 16, 2020	Apr. 10, 2020	May 13, 2020
Proceeds from Paycheck Protection Program Under CARES Act	$ 2,829
Revolving Credit Facility [Member] \| M&T [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 7,500
Proceeds from Lines of Credit, Total			$ 2,800
Revolving Credit Facility [Member] \| M&T [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		2.50%
Debt Instrument, Covenant, Interest Rate in Excess of Applicable Non-default Interest Rate		2.00%