Note 14 - Subsequent Events

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

Note

14

–

Subsequent Events

In

January 2021,

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

$3.6

million during the

fourth

quarter and year ended

December 31, 2020.

In addition, we continue to monitor our costs and will take actions to mitigate expenses in the future.

In order to increase our liquidity and to provide necessary working capital to support our on-going business and operations, we have decided to sell the

555

Building in

February 2021.

We have determined the

555

Building is

not

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

355

Building, which we believe can accommodate any needs for our growth for the foreseeable future.

On 

March 29, 2021,

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

555

Building. The purchase price is

$24,360,000,

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

555

Building in the approximate amount of

$9.3

million at

December 31, 2020,

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