Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

Adoption of new accounting standards

On

January 1, 2020,

the Company adopted the guidance under the Financial Accounting Standards Board (the “FASB”) Accounting Standard Update (“ASU”)

2016

-

13

Financial Instruments – Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments, which replaced the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company adopted Topic

326

using the modified-retrospective approach.

No

cumulative effect adjustment was necessary.

Prior to adopting Topic

326,

the Company reserved for receivables to allow for any amounts that

may

not

be recovered, based on an analysis of prior collection experience, customer credit worthiness and current economic trends. Collectability was determined based on terms of sale, credit status of customers and various other circumstances. We regularly reviewed collectability and established or adjusted the reserve as necessary. Account balances were charged off against the reserve after all means of collection had been exhausted and the potential for recovery was considered remote.

Under Topic

326,

management recorded an allowance for credit losses related to the collectability of

third

-party receivables using the historical aging of the receivable balance. Related party receivables between entities under common control are excluded from Topic

326.

The collectability was determined based on past events, including historical experience, credit rating, as well as current market conditions and expectations for future market conditions. We will continue to monitor credit ratings and collectability on a quarterly basis. Account balances will be charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company also has contract assets, a convertible note receivable with VPS and a seller note with the buyer of the Company's electronic components business that are subject to the new standard but management determined that an additional credit reserve on those balances was

not

necessary at this time due to the strong credit worthiness of the counter parties. The allowance for credit losses is as follows:

(in thousands)	As of June 30, 2020
Receivables — Third-Party, including retainage receivable	$	12,108
Allowance for Credit Losses		(47	)
Receivables — Third-Party, Net	$	12,061

On

January 1, 2020,

the Company adopted the FASB's  ASU 

No.

2018

-

15,

 

Intangibles - Goodwill and Other - Internal-Use Software (Subtopic

350

-

40

): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract 

("ASU

2018

-

15"

). The amendments in ASU

2018

-

15

align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). This adoption did

not

 have a material effect on the Company's balance sheet, statement of operations or cash flows. 

On

January 1, 2020,

the Company adopted the FASB's  ASU

No.

2018

-

13,

 Fair Value Measurement (Topic

820

): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement

 (“ASU

2018

-

13”

). The amendments in this update modify the disclosure requirements on fair value measurements in Topic

820,

Fair Value Measurement, including requiring the disclosure of the range and weighted average of significant unobservable inputs used to develop Level

3

fair value measurements. The Company currently has a convertible note receivable with VPS that is classified as a level

3

investment that will be subject to the new disclosure requirements.