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Description of Business
12 Months Ended
Dec. 31, 2019
Description of Business [Abstract]  
Description of Business

1.  Description of Business



Micron Solutions®, Inc., a Delaware corporation ("Micron Solutions"), through its wholly-owned Massachusetts operating subsidiary, Micron Products®, Inc. (“Micron” and together with Micron Solutions, the "Company"), is a diversified contract manufacturing organization (“CMO”)  that produces highly-engineered, innovative components requiring precision machining and thermoplastic injection molding. The Company manufactures components, devices and equipment for military, law enforcement, automotive and consumer products applications.  The Company's products include silver/silver chloride coated and conductive resin sensors used as consumable component parts in the manufacture of integrated disposable electrophysiological sensors.  The Company’s machining operations produce quick-turn, high volume and patient-specific orthopedic implant components and instruments as well as                         products for the defense industry.  The Company has diversified manufacturing capabilities with the capacity to participate in full product life-cycle activities from early stage development and engineering and prototyping to full scale manufacturing as well as packaging and product fulfillment services.



The Company competes globally, with approximately 37% of its revenue derived from exports. 



Liquidity and Management’s Plan    



At December 31, 2019, the Company identified certain conditions and events which in the aggregate required management to perform an assessment of the Company’s ability to continue as a going concern. These conditions included the Company’s negative financial history and the Company’s ability to generate sufficient cash to support the Company’s operations and to meet debt service requirements under the Company’s credit agreement.  As of December 31, 2019, the Company has $503 of cash and approximately $810,000 of borrowing capacity on its revolving line of credit (“Revolver”).  As a result of the above factors, management has performed an analysis to evaluate the entity’s ability to continue as a going concern for one year after the financial statements issuance date. 



Management’s analysis includes forecasting future revenues, expenditures and cash flows, taking into consideration past performance and the requirements under the credit agreement.  Revenue and cash flow forecasts are dependent on the Company’s ability to fill booked orders, to close on new and expanded business, to improve overall financial performance and its ability to obtain alternative financing, which may include a sale/leaseback of certain real estate and equipment.    



On March 12, 2020, the Company entered into the Fourth Amendment to the Credit and Security Agreement in which the quarterly debt service coverage ratio measurement requirements for 2020 were amended to lessen the burden of compliance and non-compliance with the debt service coverage ratio for the fourth quarter of 2019 was waived.  See Note 6.



Based on management’s analysis, the Company believes that cash flows from operations, together with existing working capital, booked orders, expense management, the Revolver and alternative financing options, which may include a sale/leaseback of certain real estate and equipment, will be sufficient to fund operations at current and projected levels and to repay debt obligations over the next twelve months. However, there can be no assurance that the Company will be able to do so.