10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                             to                          

Commission File Number: 0-25844

TAITRON COMPONENTS INCORPORATED

(Exact name of registrant as specified in its charter)

California	95-4249240
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

28040 West Harrison Parkway, Valencia, California	91355-4162
(Address of principal executive offices)	(Zip Code)

(661) 257-6060

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock	TAIT	NASDAQ Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.          Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☑	Smaller reporting company ☑
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).          Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

Classes of common stock	Outstanding on October 31, 2022
Class A	5,233,568
Class B	762,612

TAITRON COMPONENTS INCORPORATED

INDEX

		Page
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations and Comprehensive Income	2
	Condensed Consolidated Statements of Shareholders' Equity	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	9
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	12
Item 4.	Controls and Procedures	12
PART II - OTHER INFORMATION
Item 1.	Legal proceedings	13
Item 1A.	Risk Factors	13
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	13
Item 3.	Defaults Upon Senior Securities	13
Item 4.	Mine Safety Disclosures	13
Item 5.	Other Information	13
Item 6.	Exhibits	13
	Signatures	14

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

TAITRON COMPONENTS INCORPORATED

Condensed Consolidated Balance Sheets

	September 30,			December 31,
	2022			2021
Assets	(Unaudited)
Current assets:
Cash and cash equivalents	$	4,140,000		$	5,974,000
Accounts receivable, less allowances of $7,000		1,174,000			900,000
Short-term investments (Note 2)		2,055,000			1,566,000
Inventories, less reserves for obsolescence of $5,028,000, and $4,892,000, respectively (Note 3)		4,773,000			5,261,000
Deferred income taxes		1,922,000			-
Prepaid expenses and other current assets		242,000			173,000
Total current assets		14,306,000			13,874,000
Property and equipment, net		2,972,000			3,055,000
Other assets (Note 4)		186,000			193,000
Total assets	$	17,464,000		$	17,122,000
Liabilities and Equity
Current liabilities:
Accounts payable	$	687,000		$	1,813,000
Accrued liabilities		416,000			924,000
Total current liabilities		1,103,000			2,737,000
Commitments and contingencies (Note 6)
Equity:
Shareholders' equity:
Preferred stock, $0.001 par value. Authorized 5,000,000 shares; None issued or outstanding		-			-
Class A common stock, $0.001 par value. Authorized 20,000,000 shares; 5,233,568 and 5,113,568 shares issued and outstanding, respectively		5,000			5,000
Class B common stock, $0.001 par value. Authorized, issued and outstanding 762,612 shares		1,000			1,000
Additional paid-in capital		11,402,000			11,176,000
Accumulated other comprehensive income		(58,000	)		(73,000	)
Retained earnings		5,011,000			3,276,000
Total equity		16,361,000			14,385,000
Total liabilities and equity	$	17,464,000		$	17,122,000

See accompanying notes to condensed consolidated financial statements (unaudited).

1

TAITRON COMPONENTS INCORPORATED

Condensed Consolidated Statements of Operations and Comprehensive Income

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net product revenue	$	2,300,000		$	2,485,000		$	6,642,000		$	6,374,000
Cost of products sold		1,073,000			1,307,000			3,122,000			3,405,000
Gross profit		1,227,000			1,178,000			3,520,000			2,969,000
Selling, general and administrative expenses		536,000			467,000			1,624,000			1,527,000
Operating income		691,000			711,000			1,896,000			1,442,000
Interest income, net		14,000			6,000			22,000			15,000
Other (expense)income, net		(96,000	)		(38,000	)		(489,000	)		151,000
Income before income taxes		609,000			679,000			1,429,000			1,608,000
Income tax (provision)benefit		(125,000	)		(1,000	)		1,710,000			(3,000	)
Net income	$	484,000		$	678,000		$	3,139,000		$	1,605,000
Net income per share: Basic	$	0.08		$	0.12		$	0.53		$	0.27
Diluted	$	0.08		$	0.11		$	0.53		$	0.27
Weighted average shares outstanding: Basic		5,996,180			5,861,180			5,936,180			5,838,699
Diluted		6,026,180			5,931,180			5,972,180			5,918,699
Cash dividends declared per common share	$	0.045		$	0.040		$	0.235		$	0.120
Net income	$	484,000		$	678,000		$	3,139,000		$	1,605,000
Other comprehensive income:
Foreign currency translation adjustment		20,000			(9,000	)		15,000			(25,000	)
Comprehensive income		504,000		$	669,000			3,154,000			1,580,000

See accompanying notes to condensed consolidated financial statements (unaudited).

2

TAITRON COMPONENTS INCORPORATED

Condensed Consolidated Statements of Shareholders’ Equity

											Accumulated
	Common Stock								Additional		Other
	Class A				Class B				Paid-in		Comprehensive			Retained			Total
	Shares		Amount		Shares		Amount		capital		Income (Loss)			Earnings			Equity
Three months ending March 31, 2022, June 30, 2022 and September 30, 2022 (unaudited)
Balance at December 31, 2021		5,113,568	$	5,000		762,612	$	1,000	$	11,176,000	$	(73,000	)	$	3,276,000		$	14,385,000
Consolidated net income		-		-		-		-		-		-			2,042,000		$	2,042,000
Other comprehensive loss		-		-		-		-		-		(17,000	)		-		$	(17,000	)
Amortization of stock based compensation		-		-		-		-		5,000		-			-		$	5,000
Cash dividends		-		-		-		-		-		-			(264,000	)	$	(264,000	)
Balance at March 31, 2022		5,113,568	$	5,000		762,612	$	1,000	$	11,181,000	$	(90,000	)	$	5,054,000		$	16,151,000
Consolidated net income		-		-		-		-		-		-			613,000		$	613,000
Other comprehensive income		-		-		-		-		-		12,000			-		$	12,000
Exercise stock options		120,000		-		-		-		208,000		-			-		$	208,000
Amortization of stock based compensation		-		-		-		-		6,000		-			-		$	6,000
Cash dividends		-		-		-		-		-		-			(870,000	)	$	(870,000	)
Balance at June 30, 2022		5,233,568	$	5,000		762,612	$	1,000	$	11,395,000	$	(78,000	)	$	4,797,000		$	16,120,000
Consolidated net income		-		-		-		-		-		-			484,000		$	484,000
Other comprehensive income		-		-		-		-		-		20,000			-		$	20,000
Exercise stock options		-		-		-		-		-		-			-		$	-
Amortization of stock based compensation		-		-		-		-		7,000		-			-		$	7,000
Cash dividends		-		-		-		-		-		-			(270,000	)	$	(270,000	)
Balance at September 30, 2022		5,233,568	$	5,000		762,612	$	1,000	$	11,402,000	$	(58,000	)	$	5,011,000		$	16,361,000
Three months ending March 31, 2021, June 30, 2021 and September 30, 2021 (unaudited):
Balance at December 31, 2020		5,062,235	$	5,000		762,612	$	1,000	$	11,071,000	$	(66,000	)	$	2,231,000		$	13,242,000
Consolidated net income		-		-		-		-		-		-			337,000		$	337,000
Other comprehensive loss		-		-		-		-		-		(13,000	)		-		$	(13,000	)
Amortization of stock based compensation		-		-		-		-		8,000		-			-		$	8,000
Cash dividends		-		-		-		-		-		-			(233,000	)	$	(233,000	)
Balance at March 31, 2021		5,062,235	$	5,000		762,612	$	1,000	$	11,079,000	$	(79,000	)	$	2,335,000		$	13,341,000
Consolidated net income		-		-		-		-		-		-			590,000		$	590,000
Other comprehensive loss		-		-		-		-		-		(3,000	)		-		$	(3,000	)
Exercise stock options		31,333		-		-		-		46,000		-			-		$	46,000
Amortization of stock based compensation		-		-		-		-		6,000		-			-		$	6,000
Cash dividends		-		-		-		-		-		-			(233,000	)	$	(233,000	)
Balance at June 30, 2021		5,093,568	$	5,000		762,612	$	1,000	$	11,131,000	$	(82,000	)	$	2,692,000		$	13,747,000
Consolidated net income		-		-		-		-		-		-			678,000		$	678,000
Other comprehensive loss		-		-		-		-		-		(9,000	)		-		$	(9,000	)
Exercise stock options		10,000		-		-		-		10,000		-			-		$	10,000
Amortization of stock based compensation		-		-		-		-		9,000		-			-		$	9,000
Cash dividends		-		-		-		-		-		-			(235,000	)	$	(235,000	)
Balance at September 30, 2021		5,103,568	$	5,000		762,612	$	1,000	$	11,150,000	$	(91,000	)	$	3,135,000		$	14,200,000

See accompanying notes to condensed consolidated financial statements (unaudited).

3

TAITRON COMPONENTS INCORPORATED

Condensed Consolidated Statements of Cash Flows

	Nine Months Ended September 30,
	2022			2021
Operating activities:
Net income	$	3,139,000		$	1,605,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		81,000			131,000
Provision for sales returns and doubtful accounts		-			1,000
Stock based compensation		18,000			23,000
Forgiveness of PPP loan		-			(163,000	)
Deferred income taxes		(1,922,000	)		-
Loss on short-term investments		511,000			77,000
Changes in assets and liabilities:
Accounts receivable		(274,000	)		(347,000	)
Inventories		488,000			(430,000	)
Prepaid expenses and other current assets		(69,000	)		(93,000	)
Accounts payable		(1,126,000	)		649,000
Accrued liabilities		(508,000	)		48,000
Other assets and liabilities		9,000			(1,000	)
Total adjustments		(2,792,000	)		(105,000	)
Net cash provided by operating activities		347,000			1,500,000
Investing activities:
Acquisition of property and equipment		-			(16,000	)
Purchase of short-term investments		(1,000,000	)		(1,500,000	)
Net cash used for investing activities		(1,000,000	)		(1,516,000	)
Financing activities:
Dividend payments		(1,404,000	)		(701,000	)
Proceeds from stock options exercised		208,000			56,000
Net cash used for financing activities		(1,196,000	)		(645,000	)
Impact of exchange rates on cash		15,000			(25,000	)
Net decrease in cash and cash equivalents		(1,834,000	)		(686,000	)
Cash and cash equivalents, beginning of period		5,974,000			6,652,000
Cash and cash equivalents, end of period	$	4,140,000		$	5,966,000
Supplemental disclosures of cash flow information:
Cash paid for interest	$	-		$	-
Cash paid for income taxes, net	$	664,000		$	4,000
Supplemental disclosures of non-cash financing activities:
On June 4, 2021, PPP loan was forgiven in full by SBA	$	-		$	163,200

See accompanying notes to condensed consolidated financial statements (unaudited).

4

TAITRON COMPONENTS INCORPORATED

Notes to Condensed Consolidated Financial Statements (Unaudited)

1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Overview of Business

We are primarily a supplier of original designed and manufactured (“ODM”) electronic components (“ODM Components”) with our product offerings ranging from discrete semiconductors through small electronic devices. Our products include value-added engineering and turn-key solutions, focusing on providing contract electronic manufacturers (“CEMs”) and original equipment manufacturers (“OEMs”) with ODM products for their multi-year turn-key projects (“ODM Projects”). We also distribute brand name electronic components with a vast inventory available on hand. We are incorporated in California and were originally formed in 1989. We maintain divisions in Taiwan and China which were established in 1996 and 2005, respectively.

Basis of Presentation

The unaudited condensed consolidated interim financial statements include the accounts of the Company and all wholly owned divisions. All significant intercompany accounts and transactions have been eliminated in consolidation.

These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature and considered necessary for a fair presentation of its financial condition and results of operations for the interim periods presented in this Quarterly Report on Form 10-Q have been included. Operating results for the interim periods are not necessarily indicative of financial results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In preparing these financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates and assumptions included in the Company’s condensed consolidated financial statements relate to the allowance for sales returns, doubtful accounts, inventory reserves, accrued liabilities and deferred income taxes.

New Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Simplifying the Accounting for Income Taxes”. The pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, “Income Taxes”. The pronouncement also improves consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 was effective for us beginning in the first quarter of fiscal 2021, with early adoption permitted. The adoption of this guidance has not had a material effect on our consolidated financial statements.

In October 2020, the FASB issued ASU No. 2020-10 Codification Improvements, to make incremental improvements to U.S. GAAP and address stakeholder suggestions, including, among other things, clarifying that the requirement to provide comparative information in the financial statements extends to the corresponding disclosures section. The amendments in this update was effective for us beginning with fiscal year 2021, with early adoption permitted. The amendments in this update should be applied retrospectively and at the beginning of the period that includes the adoption date. The adoption of the amendments in this update has not had a material impact on our consolidated financial position and results of operations.

Revenue recognition

Revenue is recognized at the point at which control of the underlying products are transferred to the customer. Satisfaction of our performance obligations occur upon the transfer of control of products, either from our facilities or directly from suppliers to customers. We consider customer purchase orders to be the contracts with a customer. All revenue is generated from contracts with customers.

In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect to receive.

5

Taxes assessed by a governmental authority on revenue-producing transactions are excluded from revenue.

Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of products sold.

Based upon the nature of our contracts with customers and our performance obligations within those contracts, we have no contract assets or liabilities as of September 30, 2022 and December 31, 2021.

Nature of products

We are primarily a supplier of original designed and manufactured (“ODM”) products that include value-added engineering and turn-key solutions. The following is a description of major products lines from which we generate our revenue:

ODM Projects - Our custom made small devices for original equipment manufacturers (“OEMs”) and contract electronic manufacturers (CEMs) in their multi-year turn-key projects and marketed in specific industries such as: wild animal feeders, timers for DC motors, public street light controllers, and battery chargers.

ODM Components - Our private labeled electronic components.

Distribution Components - Our name brand electronic components.

Disaggregation of revenue

In the following table, revenue is disaggregated by primary geographical market, major product line, and timing of revenue recognition.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Primary geographical markets:
United States	$	2,285,000	$	2,298,000	$	6,339,000	$	5,700,000
Asia		10,000		182,000		281,000		653,000
Other		5,000		5,000		22,000		21,000
		2,300,000		2,485,000		6,642,000		6,374,000
Major product lines:
ODM projects	$	1,628,000	$	1,695,000	$	4,617,000	$	4,069,000
ODM components		619,000		774,000		1,905,000		2,129,000
Distribution components		53,000		16,000		120,000		176,000
		2,300,000		2,485,000		6,642,000		6,374,000
Timing of revenue recognition:
Products transferred at a point in time	$	2,300,000	$	2,485,000	$	6,642,000	$	6,374,000

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2 – SHORT-TERM INVESTMENTS

Short-term investments, consisting principally of marketable U.S. equity securities and fixed income investments, are classified as short-term based on the nature of the securities and their availability for use in current operations. Measurement is based on fair value with gains and losses recognized in other income/(expense), net.

3 – INVENTORY

Inventory – Inventory, consisting principally of products held for resale, is recorded at the lower of cost (determined using the first in-first out method) and net realizable value. We had inventory balances in the amount of $4,773,000 and $5,261,000 at September 30, 2022 and December 31, 2021, respectively, which is presented net of valuation allowances of $5,028,000 and $4,892,000, respectively. We evaluate inventories to identify excess, high-cost, slow-moving or other factors rendering inventories as unmarketable at normal profit margins. Due to the complexity of managing and maintaining a large inventory of product offerings, estimates are made regarding adjustments to the carrying values of inventories. Based on our assumptions about future demand and market conditions, inventories are carried at the lower of cost and net realizable value. If our assumptions about future demand change, or market conditions are less favorable than those projected, additional write-downs of inventories or valuation allowances may be required. In any case, actual amounts could be different from those estimated.

4 – OTHER ASSETS

	Investment in securities - Zowie Technology		Other			Other Assets Total
Balance at December 31, 2021	$	186,000	$	7,000		$	193,000
Other changes		-		(7,000	)		(7,000	)
Balance at September 30, 2022	$	186,000	$	-		$	186,000

Our $186,000 investment in securities as of September 30, 2022 and December 31, 2021 relates to 317,428 shares of preferred convertible debt of Zowie Technology Corporation (Taipei Hsien, Taiwan), a supplier of electronic component products, with our option after three (3) years to convert into common stock or refundable bearing 7% annual interest rate. Our investment represents approximately 7.9% of their total outstanding shares, although we do not have significant influence or control. This investment is accounted for under the cost (plus impairment) basis of accounting, however when facts and circumstances indicate that the carrying value of this asset may not be recoverable, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount exceeds the estimated fair value.

7

5 – SHARE BASED COMPENSATION

Accounting for stock options issued to employees measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. Outstanding options to purchase Class A common stock (“the Options”) vest in three equal annual installments beginning one (1) year from the date of grant and are subject to termination provisions as defined in our 2005 Stock Incentive Plan and 2018 Omnibus Incentive Plan (collectively referred to as “the Plans”). The Options activity during the nine months ended September 30, 2022 is as follows:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Years Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2021		294,067		$	2.45		5.0	$	492,000
Grants		60,500			3.54		4.9
Exercised		(120,000	)		1.74		-
Forfeited		(10,000	)		3.40		-
Outstanding at September 30, 2022		224,567		$	3.10		6.1	$	207,000
Exercisable at September 30, 2022		79,934		$	2.59		4.8	$	149,000

At September 30, 2022, the range of individual outstanding weighted average exercise prices was $0.96 to $3.95 and the unamortized compensation expense was approximately $40,000. Stock based compensation recorded in the three and nine months ended September 30, 2022 was $7,000 and $18,000, respectively, and is included in selling, general and administrative expenses on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.

6 – COMMITMENTS AND CONTINGENCIES

Inventory Purchasing

Outstanding commitments to purchase inventory from suppliers aggregated approximately $740,000 as of September 30, 2022.

8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the condensed consolidated financial statements, including the related notes, appearing in Item 1 of Part 1 of this quarterly report on Form 10-Q, as well as our most recent annual report on Form 10-K for the year ended December 31, 2021.

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) with respect to the financial condition, results of operations and business of the Company. Forward-looking statements usually are denoted by words or phrases such as “believes,” “expects,” “projects,” “estimates,” “anticipates,” “will likely result” or similar expressions. We wish to caution readers that all forward-looking statements are necessarily speculative and not to place undue reliance on forward-looking statements, which speak only as of the date made, and to advise readers that actual results could vary due to a variety of risks and uncertainties, including the risks described in our Annual Report on Form 10-K for the year ended December 31, 2021 and other reports we file with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to update forward-looking statements.

References to “Taitron,” the “Company,” “we,” “our” and “us” refer to Taitron Components Incorporated and its wholly owned and majority-owned subsidiaries or divisions, unless the context otherwise requires.

Critical Accounting Policies and Estimates

Use of Estimates - Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare our condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States. These estimates have a significant impact on our valuation and reserve accounts relating to the allowance for sales returns, doubtful accounts, inventory reserves and deferred income taxes. Actual results could differ from these estimates.

Revenue Recognition – Revenue is recognized upon shipment of the products, which is when legal transfer of title occurs and control of the product is transferred to the customer. Reserves for sales allowances and customer returns are established based upon historical experience and our estimates of future returns. Sales returns for each of the three and nine months ended September 30, 2022 and 2021 were $0. The allowance for sales returns and doubtful accounts at September 30, 2022 and December 31, 2021 aggregated $7,000.

Inventory – Inventory, consisting principally of products held for resale, is recorded at the lower of cost (determined using the first in-first out method) and net realizable value. We had inventory balances in the amount of $4,773,000 and $5,261,000 at September 30, 2022 and December 31, 2021, respectively, which is presented net of valuation allowances of $5,028,000 and $4,892,000, respectively. We evaluate inventories to identify excess, high-cost, slow-moving or other factors rendering inventories as unmarketable at normal profit margins. Due to the large number of transactions and the complexity of managing and maintaining a large inventory of product offerings, estimates are made regarding adjustments to the cost of inventories. If our assumptions about future demand change, or market conditions are less favorable than those projected, additional write-downs of inventories may be required. In any case, actual amounts could be different from those estimated.

Deferred Taxes – If determined that it is more likely than not that we will not realize all or part of our net deferred tax assets in the future, we record a valuation allowance against the deferred tax assets, which allowance will be charged to income tax expense in the period of such determination. We also consider the scheduled reversal of deferred tax liabilities, tax planning strategies and future taxable income in assessing if deferred tax assets could be realized. We also consider the weight of both positive and negative evidence in determining whether a valuation allowance is needed. However, we have fully reduced by $1,915,000 the entire valuation allowance against our net deferred tax assets at September 30, 2022 primarily as a result of our recent history of net income.

Overview

We are primarily focused on supplying ODM products for our OEM customer’s multi-year turn-key projects. We also distribute discrete semiconductors, commodity Integrated Circuits (ICs), optoelectronic devices and passive components to other electronic distributors, CEMs and OEMs, who incorporate them in their products.

9

Our core strategy has shifted to primarily focus on higher margin ODM Projects that require custom products designed for specific applications to OEM customers, and away from actively marketing our superstore strategy of maintaining a vast quantity of electronic components to fill customer orders immediately from available stock held in inventory. As a result, we expect our components inventory will be more passively marketed and distributed online for clearance through our internet sales portal, however at potentially lower rates due to the pricing pressures normally attributed with online shopping.

In accordance with generally accepted accounting principles, we have classified inventory as a current asset in our September 30, 2022, condensed consolidated financial statements representing approximately 33% of current assets and 27% of total assets. However, if all or a substantial portion of the inventory was required to be immediately liquidated, the inventory would not be as readily marketable or liquid as other items included or classified as a current asset, such as cash. We cannot assure you that demand in the discrete semiconductor market will increase and that market conditions will improve. Therefore, it is possible that further declines in our carrying values of inventory may result.

Our gross profit margins are subject to a number of factors, including product demand, the relative strength of the U.S. dollar, provisions for inventory reserves, our ability to purchase inventory at favorable prices and our sales product mix.

Results of Operations

Significant Risks and Uncertainties

See the Risk Factors included in our Annual report on Form 10-K for the year ended December 31, 2021 as filed with the Securities and Exchange Commission as well as the additional Risk Factor included in Part II—Item 1A of this quarterly report regarding the impacts of the COVID-19 outbreak.

Third quarter of 2022 versus 2021.

Net sales in the third quarter of 2022 totaled $2,300,000 versus $2,485,000 in the comparable period for 2021, a decrease of $185,000 or (7.4%) over the same period last year. The decrease was primarily driven by a decrease of ODM project sales volume.

Gross profit for the third quarter of 2022 was $1,227,000 versus $1,178,000 in the comparable period for 2021, and gross margin percentage of net sales was 53.3% in the third quarter of 2022 versus 47.4% in the comparable period for 2021. The approximately 5.9% gross margin percentage increase was driven by selling higher margin products.

Selling, general and administrative expenses in the third quarter of 2022 totaled $536,000 versus $467,000 in the comparable period for 2021.

Other (expense)income, net, in the third quarter of 2022 was ($96,000) versus ($38,000) in the comparable period for 2021. Other expense was primarily short-term investment losses in 2022.

Income tax (provision)benefit was ($125,000) for the third quarter of 2022 versus ($1,000) in the comparable period for 2021.

Net income was $484,000 for the third quarter of 2022 versus $678,000 in the comparable period for 2021, a decrease of ($194,000) resulting from the reasons discussed above.

Nine Months Ended September 30, 2022 versus Nine Months Ended September 30, 2021.

Net sales in the nine months ended September 30, 2022 was $6,642,000 versus $6,374,000 in the comparable period for 2021, an increase of $268,000 or 4.2% over the same period last year. The increase was driven by an increase of ODM project sales volume.

Gross profit for the nine months ended September 30, 2022 was $3,520,000 versus $2,969,000 in the comparable period for 2021, and gross margin percentage of net sales was approximately 53% for the nine months ended September 30, 2022 and 46.6% for 2021, respectively.

Selling, general and administrative expenses in the nine months ended September 30, 2022 totaled $1,624,000 versus $1,527,000 in the comparable period for 2021, an increase of $97,000 over the same period last year. The $97,000 increase was primarily driven by higher salaries and personnel related costs.

10

Other (expense)income, net, in the nine months ended September 30, 2022 was ($489,000) versus $151,000 in the comparable period for 2021. Other expense was primarily short-term investment losses compared to other income primarily $163,000 from PPP loan forgiveness in 2021.

Income tax benefit(provision) was $1,710,000 for the nine months ended September 30, 2022 versus ($3,000) in the comparable period for 2021. The increase was due to reducing by $1,915,000 our entire valuation allowance against our deferred tax assets.

Net income was $3,139,000 for the nine months ended September 30, 2022 versus $1,605,000 in the comparable period for 2021, an increase of $1,534,000 resulting from the reasons discussed above.

Liquidity and Capital Resources

We historically have satisfied our liquidity requirements through cash generated from operations, short-term commercial loans, subordinated related party promissory notes and issuance of equity securities.

Cash flows provided by operating activities were $347,000 as opposed to $1,500,000 in the nine months ended September 30, 2022 and 2021, respectively. The decrease of ($1,153,000) in cash flows provided by operations compared with the prior period resulted from changes in operating assets and liabilities, primarily from accounts payable and accrued liabilities and deferred income taxes.

Cash flows used for investing activities were $1,000,000 and $1,516,000 for the nine months ended September 30, 2022 and 2021, respectively. The $516,000 increase was primarily from additional purchases of short-term investments (see Note 2).

Cash flows used for financing activities were $1,196,000 and $645,000 for the nine months ended September 30, 2022 and 2021, respectively. The increase of $551,000 compared with the prior period was due increased cash dividend payments of $703,000. The increase to our cash dividends was based upon our April 29, 2022 announcement of our one-time special cash dividend of $0.10 per share.

We believe that funds generated from operations, existing cash and short-term investment balances and, if necessary, related party short-term loans, are likely to be sufficient to finance our working capital and capital expenditure requirements for the foreseeable future. If these funds are not sufficient, we may secure new sources of asset-based lending on accounts receivables or issue debt or equity securities. Otherwise, we may need to liquidate assets to generate the necessary working capital.

Inventory is included and classified as a current asset. As of September 30, 2022, inventory represented approximately 33% of current assets and 27% of total assets. However, it is likely to take over one (1) year for the inventory to turn and therefore is likely not saleable within this time frame. Hence, inventory would not be as readily marketable or liquid as other items included in current assets, such as cash.

Off-Balance Sheet Arrangements

As of September 30, 2022, we had no off-balance sheet arrangements.

11

Item 3. Quantitative and Qualitative Disclosures About Market Risk. - Not applicable.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our management has evaluated, under the supervision and with the participation of our principal executive and principal financial officers, the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (the “Exchange Act”). Based on that evaluation, our principal executive and principal financial officers concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in ensuring that information required to be disclosed in our Exchange Act reports is (1) recorded, processed, summarized and reported in a timely manner, and (2) accumulated and communicated to our management, including our principal executive and financial officers, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

12

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

In the ordinary course of business, we may become involved in legal proceedings from time to time. As of the date of this report, we are not aware of any material pending legal proceedings.

Item 1A. Risk Factors.

The discussion of our business and operations should be read together with the risk factor set forth below and the risk factors contained in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021, which describe various risks and uncertainties to which we are or may become subject. These risks and uncertainties have the potential to affect our business, financial condition, results of operations, cash flows, strategies or prospects in a material and adverse manner. As of November 14, 2022, there have been no material changes to the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. None.

Item 3. Defaults Upon Senior Securities. None.

Item 4. Mine Safety Disclosures. Not Applicable.

Item 5. Other Information. None.

Item 6. Exhibits.

Exhibit Number	Description of Document
31.1 *	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 *	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32 **	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 USC. Section 1350).
101.INS* 101.SCH* 101.CAL* 101.DEF* 101.LAB* 101.PRE*	Inline XBRL Instance Document Inline XBRL Taxonomy Extension Schema Inline XBRL Taxonomy Extension Calculation Linkbase Inline XBRL Taxonomy Extension Definition Linkbase Inline XBRL Taxonomy Extension Label Linkbase Inline XBRL Taxonomy Extension Presentation Linkbase
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
*	Filed herewith.
**	Furnished herewith.

13

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	TAITRON COMPONENTS INCORPORATED
Date: November 14, 2022	By:	/s/ Stewart Wang
		Stewart Wang,
		Chief Executive Officer and President (Principal Executive Officer)

By:	/s/ David Vanderhorst
	David Vanderhorst
	Chief Financial Officer and Secretary (Principal Financial Officer)

14

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULES 13A-14 AND 15D-14

OF THE SECURITIES EXCHANGE ACT OF 1934

I, Stewart Wang, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Taitron Components Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the issuer's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 14, 2022
	By:	/s/ Stewart Wang
		Stewart Wang
		Chief Executive Officer and President (Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULES 13A-14 AND 15D-14

OF THE SECURITIES EXCHANGE ACT OF 1934

I, David Vanderhorst, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Taitron Components Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the issuer's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 14, 2022
	By:	/s/ David Vanderhorst
		David Vanderhorst
		Chief Financial Officer and Secretary (Principal Financial Officer)

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report on Form 10-Q of Taitron Components Incorporated (the “Company”) for the period ended September 30, 2022 (the “Report”), the undersigned hereby certify in their capacities as Chief Executive Officer and Chief Financial Officer of the Company, respectively, pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1 ) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 14, 2022
	By:	/s/ Stewart Wang
		Stewart Wang
		Chief Executive Officer and President (Principal Executive Officer)

By:	/s/ David Vanderhorst
	David Vanderhorst
	Chief Financial Officer and Secretary (Principal Financial Officer)

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Document Information Line Items
Entity Registrant Name	TAITRON COMPONENTS INCORPORATED
Trading Symbol	TAIT
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	0000942126
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	0-25844
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	95-4249240
Entity Address, Address Line One	28040 West Harrison Parkway
Entity Address, City or Town	Valencia
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91355-4162
City Area Code	661
Local Phone Number	257-6060
Title of 12(b) Security	Class A common stock
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Common Class A [Member]
Document Information Line Items
Entity Common Stock, Shares Outstanding		5,233,568
Common Class B [Member]
Document Information Line Items
Entity Common Stock, Shares Outstanding		762,612

XML

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 4,140,000	$ 5,974,000
Accounts receivable, less allowances of $7,000	1,174,000	900,000
Short-term investments (Note 2)	2,055,000	1,566,000
Inventories, less reserves for obsolescence of $5,028,000, and $4,892,000, respectively (Note 3)	4,773,000	5,261,000
Deferred income taxes	1,922,000	0
Prepaid expenses and other current assets	242,000	173,000
Total current assets	14,306,000	13,874,000
Property and equipment, net	2,972,000	3,055,000
Other assets (Note 4)	186,000	193,000
Total assets	17,464,000	17,122,000
Current liabilities:
Accounts payable	687,000	1,813,000
Accrued liabilities	416,000	924,000
Total current liabilities	1,103,000	2,737,000
Commitments and contingencies (Note 6)
Shareholders' equity:
Preferred stock, $0.001 par value. Authorized 5,000,000 shares; None issued or outstanding	0	0
Additional paid-in capital	11,402,000	11,176,000
Accumulated other comprehensive income	(58,000)	(73,000)
Retained earnings	5,011,000	3,276,000
Total equity	16,361,000	14,385,000
Total liabilities and equity	17,464,000	17,122,000
Common Class A [Member]
Shareholders' equity:
Common Stock, value, issued	5,000	5,000
Common Class B [Member]
Shareholders' equity:
Common Stock, value, issued	$ 1,000	$ 1,000

XML

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Accounts receivable, allowances (in Dollars)	$ 7,000	$ 7,000
Inventories, reserves for obsolescence (in Dollars)	$ 5,028,000	$ 4,892,000
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Class A [Member]
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	20,000,000	20,000,000
Common Stock, shares issued	5,233,568	5,113,568
Common stock, shares outstanding	5,233,568	5,113,568
Common Class B [Member]
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	762,612	762,612
Common Stock, shares issued	762,612	762,612
Common stock, shares outstanding	762,612	762,612

XML

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net product revenue	$ 2,300,000	$ 2,485,000	$ 6,642,000	$ 6,374,000
Cost of products sold	1,073,000	1,307,000	3,122,000	3,405,000
Gross profit	1,227,000	1,178,000	3,520,000	2,969,000
Selling, general and administrative expenses	536,000	467,000	1,624,000	1,527,000
Operating income	691,000	711,000	1,896,000	1,442,000
Interest income, net	14,000	6,000	22,000	15,000
Other (expense)income, net	(96,000)	(38,000)	(489,000)	151,000
Income before income taxes	609,000	679,000	1,429,000	1,608,000
Income tax (provision)benefit	(125,000)	(1,000)	1,710,000	(3,000)
Net income	484,000	678,000	3,139,000	1,605,000
Other comprehensive income:
Foreign currency translation adjustment	20,000	(9,000)	15,000	(25,000)
Comprehensive income	$ 504,000	$ 669,000	$ 3,154,000	$ 1,580,000
Net income per share: Basic (in Dollars per share)	$ 0.08	$ 0.12	$ 0.53	$ 0.27
Diluted (in Dollars per share)	0.08	0.11	0.53	0.27
Cash dividends declared per common share (in Dollars per share)	$ 0.045	$ 0.04	$ 0.235	$ 0.12
Common Class A [Member]
Other comprehensive income:
Weighted average shares outstanding: Basic (in Shares)	5,996,180	5,861,180	5,936,180	5,838,699
Common Class B [Member]
Other comprehensive income:
Weighted average shares outstanding: Diluted (in Shares)	6,026,180	5,931,180	5,972,180	5,918,699

XML

Condensed Consolidated Statements of Shareholders' Equity - USD ($)	Common Class A [Member] Common Stock [Member]	Common Class A [Member]	Common Class B [Member] Common Stock [Member]	Common Class B [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2020	$ 5,000		$ 1,000		$ 11,071,000	$ (66,000)	$ 2,231,000	$ 13,242,000
Balance (in Shares) at Dec. 31, 2020	5,062,235		762,612
Consolidated net income							337,000	337,000
Other comprehensive loss						(13,000)		(13,000)
Amortization of stock based compensation					8,000			8,000
Cash dividends							(233,000)	(233,000)
Balance at Mar. 31, 2021	$ 5,000		$ 1,000		11,079,000	(79,000)	2,335,000	13,341,000
Balance (in Shares) at Mar. 31, 2021	5,062,235		762,612
Balance at Dec. 31, 2020	$ 5,000		$ 1,000		11,071,000	(66,000)	2,231,000	13,242,000
Balance (in Shares) at Dec. 31, 2020	5,062,235		762,612
Other comprehensive loss								(25,000)
Balance at Sep. 30, 2021	$ 5,000		$ 1,000		11,150,000	(91,000)	3,135,000	14,200,000
Balance (in Shares) at Sep. 30, 2021	5,103,568		762,612
Balance at Mar. 31, 2021	$ 5,000		$ 1,000		11,079,000	(79,000)	2,335,000	13,341,000
Balance (in Shares) at Mar. 31, 2021	5,062,235		762,612
Consolidated net income							590,000	590,000
Other comprehensive loss						(3,000)		(3,000)
Exercise stock options					46,000			46,000
Exercise stock options (in Shares)	31,333
Amortization of stock based compensation					6,000			6,000
Cash dividends							(233,000)	(233,000)
Balance at Jun. 30, 2021	$ 5,000		$ 1,000		11,131,000	(82,000)	2,692,000	13,747,000
Balance (in Shares) at Jun. 30, 2021	5,093,568		762,612
Consolidated net income							678,000	678,000
Other comprehensive loss						(9,000)		(9,000)
Exercise stock options					10,000			10,000
Exercise stock options (in Shares)	10,000
Amortization of stock based compensation					9,000			9,000
Cash dividends							(235,000)	(235,000)
Balance at Sep. 30, 2021	$ 5,000		$ 1,000		11,150,000	(91,000)	3,135,000	14,200,000
Balance (in Shares) at Sep. 30, 2021	5,103,568		762,612
Balance at Dec. 31, 2021	$ 5,000		$ 1,000		11,176,000	(73,000)	3,276,000	14,385,000
Balance (in Shares) at Dec. 31, 2021	5,113,568	5,113,568	762,612	762,612
Consolidated net income							2,042,000	2,042,000
Other comprehensive loss						(17,000)		(17,000)
Amortization of stock based compensation					5,000			5,000
Cash dividends							(264,000)	(264,000)
Balance at Mar. 31, 2022	$ 5,000		$ 1,000		11,181,000	(90,000)	5,054,000	16,151,000
Balance (in Shares) at Mar. 31, 2022	5,113,568		762,612
Balance at Dec. 31, 2021	$ 5,000		$ 1,000		11,176,000	(73,000)	3,276,000	14,385,000
Balance (in Shares) at Dec. 31, 2021	5,113,568	5,113,568	762,612	762,612
Other comprehensive loss								$ 15,000
Exercise stock options (in Shares)								120,000
Balance at Sep. 30, 2022	$ 5,000		$ 1,000		11,402,000	(58,000)	5,011,000	$ 16,361,000
Balance (in Shares) at Sep. 30, 2022	5,233,568	5,233,568	762,612	762,612
Balance at Mar. 31, 2022	$ 5,000		$ 1,000		11,181,000	(90,000)	5,054,000	16,151,000
Balance (in Shares) at Mar. 31, 2022	5,113,568		762,612
Consolidated net income							613,000	613,000
Other comprehensive loss						12,000		12,000
Exercise stock options					208,000			208,000
Exercise stock options (in Shares)	120,000
Amortization of stock based compensation					6,000			6,000
Cash dividends							(870,000)	(870,000)
Balance at Jun. 30, 2022	$ 5,000		$ 1,000		11,395,000	(78,000)	4,797,000	16,120,000
Balance (in Shares) at Jun. 30, 2022	5,233,568		762,612
Consolidated net income							484,000	484,000
Other comprehensive loss						20,000		20,000
Amortization of stock based compensation					7,000			7,000
Cash dividends							(270,000)	(270,000)
Balance at Sep. 30, 2022	$ 5,000		$ 1,000		$ 11,402,000	$ (58,000)	$ 5,011,000	$ 16,361,000
Balance (in Shares) at Sep. 30, 2022	5,233,568	5,233,568	762,612	762,612

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Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating activities:
Net income	$ 3,139,000	$ 1,605,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	81,000	131,000
Provision for sales returns and doubtful accounts	0	1,000
Stock based compensation	18,000	23,000
Forgiveness of PPP loan	0	(163,000)
Deferred income taxes	(1,922,000)	0
Loss on short-term investments	511,000	77,000
Changes in assets and liabilities:
Accounts receivable	(274,000)	(347,000)
Inventories	488,000	(430,000)
Prepaid expenses and other current assets	(69,000)	(93,000)
Accounts payable	(1,126,000)	649,000
Accrued liabilities	(508,000)	48,000
Other assets and liabilities	9,000	(1,000)
Total adjustments	(2,792,000)	(105,000)
Net cash provided by operating activities	347,000	1,500,000
Investing activities:
Acquisition of property and equipment	0	(16,000)
Purchase of short-term investments	(1,000,000)	(1,500,000)
Net cash used for investing activities	(1,000,000)	(1,516,000)
Financing activities:
Dividend payments	(1,404,000)	(701,000)
Proceeds from stock options exercised	208,000	56,000
Net cash used for financing activities	(1,196,000)	(645,000)
Impact of exchange rates on cash	15,000	(25,000)
Net decrease in cash and cash equivalents	(1,834,000)	(686,000)
Cash and cash equivalents, beginning of period	5,974,000	6,652,000
Cash and cash equivalents, end of period	4,140,000	5,966,000
Supplemental disclosures of cash flow information:
Cash paid for interest	0	0
Cash paid for income taxes, net	664,000	4,000
Supplemental disclosures of non-cash financing activities:
On June 4, 2021, PPP loan was forgiven in full by SBA	$ 0	$ 163,200

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Overview of Business

We are primarily a supplier of original designed and manufactured (“ODM”) electronic components (“ODM Components”) with our product offerings ranging from discrete semiconductors through small electronic devices. Our products include value-added engineering and turn-key solutions, focusing on providing contract electronic manufacturers (“CEMs”) and original equipment manufacturers (“OEMs”) with ODM products for their multi-year turn-key projects (“ODM Projects”). We also distribute brand name electronic components with a vast inventory available on hand. We are incorporated in California and were originally formed in 1989. We maintain divisions in Taiwan and China which were established in 1996 and 2005, respectively.

Basis of Presentation

The unaudited condensed consolidated interim financial statements include the accounts of the Company and all wholly owned divisions. All significant intercompany accounts and transactions have been eliminated in consolidation.

These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature and considered necessary for a fair presentation of its financial condition and results of operations for the interim periods presented in this Quarterly Report on Form 10-Q have been included. Operating results for the interim periods are not necessarily indicative of financial results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In preparing these financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates and assumptions included in the Company’s condensed consolidated financial statements relate to the allowance for sales returns, doubtful accounts, inventory reserves, accrued liabilities and deferred income taxes.

New Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Simplifying the Accounting for Income Taxes”. The pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, “Income Taxes”. The pronouncement also improves consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 was effective for us beginning in the first quarter of fiscal 2021, with early adoption permitted. The adoption of this guidance has not had a material effect on our consolidated financial statements.

In October 2020, the FASB issued ASU No. 2020-10 Codification Improvements, to make incremental improvements to U.S. GAAP and address stakeholder suggestions, including, among other things, clarifying that the requirement to provide comparative information in the financial statements extends to the corresponding disclosures section. The amendments in this update was effective for us beginning with fiscal year 2021, with early adoption permitted. The amendments in this update should be applied retrospectively and at the beginning of the period that includes the adoption date. The adoption of the amendments in this update has not had a material impact on our consolidated financial position and results of operations.

Revenue recognition

Revenue is recognized at the point at which control of the underlying products are transferred to the customer. Satisfaction of our performance obligations occur upon the transfer of control of products, either from our facilities or directly from suppliers to customers. We consider customer purchase orders to be the contracts with a customer. All revenue is generated from contracts with customers.

In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect to receive.

Taxes assessed by a governmental authority on revenue-producing transactions are excluded from revenue.

Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of products sold.

Based upon the nature of our contracts with customers and our performance obligations within those contracts, we have no contract assets or liabilities as of September 30, 2022 and December 31, 2021.

Nature of products

We are primarily a supplier of original designed and manufactured (“ODM”) products that include value-added engineering and turn-key solutions. The following is a description of major products lines from which we generate our revenue:

ODM Projects - Our custom made small devices for original equipment manufacturers (“OEMs”) and contract electronic manufacturers (CEMs) in their multi-year turn-key projects and marketed in specific industries such as: wild animal feeders, timers for DC motors, public street light controllers, and battery chargers.

ODM Components - Our private labeled electronic components.

Distribution Components - Our name brand electronic components.

Disaggregation of revenue

In the following table, revenue is disaggregated by primary geographical market, major product line, and timing of revenue recognition.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Primary geographical markets:
United States	$	2,285,000	$	2,298,000	$	6,339,000	$	5,700,000
Asia		10,000		182,000		281,000		653,000
Other		5,000		5,000		22,000		21,000
		2,300,000		2,485,000		6,642,000		6,374,000
Major product lines:
ODM projects	$	1,628,000	$	1,695,000	$	4,617,000	$	4,069,000
ODM components		619,000		774,000		1,905,000		2,129,000
Distribution components		53,000		16,000		120,000		176,000
		2,300,000		2,485,000		6,642,000		6,374,000
Timing of revenue recognition:
Products transferred at a point in time	$	2,300,000	$	2,485,000	$	6,642,000	$	6,374,000

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SHORT-TERM INVESTMENTS

9 Months Ended

Sep. 30, 2022

Disclosure Text Block Supplement [Abstract]

Investment [Text Block]

2 – SHORT-TERM INVESTMENTS

Short-term investments, consisting principally of marketable U.S. equity securities and fixed income investments, are classified as short-term based on the nature of the securities and their availability for use in current operations. Measurement is based on fair value with gains and losses recognized in other income/(expense), net.

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INVENTORY

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

3 – INVENTORY

Inventory – Inventory, consisting principally of products held for resale, is recorded at the lower of cost (determined using the first in-first out method) and net realizable value. We had inventory balances in the amount of $4,773,000 and $5,261,000 at September 30, 2022 and December 31, 2021, respectively, which is presented net of valuation allowances of $5,028,000 and $4,892,000, respectively. We evaluate inventories to identify excess, high-cost, slow-moving or other factors rendering inventories as unmarketable at normal profit margins. Due to the complexity of managing and maintaining a large inventory of product offerings, estimates are made regarding adjustments to the carrying values of inventories. Based on our assumptions about future demand and market conditions, inventories are carried at the lower of cost and net realizable value. If our assumptions about future demand change, or market conditions are less favorable than those projected, additional write-downs of inventories or valuation allowances may be required. In any case, actual amounts could be different from those estimated.

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OTHER ASSETS

9 Months Ended

Sep. 30, 2022

Disclosure Text Block Supplement [Abstract]

Other Assets Disclosure [Text Block]

4 – OTHER ASSETS

	Investment in securities - Zowie Technology		Other			Other Assets Total
Balance at December 31, 2021	$	186,000	$	7,000		$	193,000
Other changes		-		(7,000	)		(7,000	)
Balance at September 30, 2022	$	186,000	$	-		$	186,000

Our $186,000 investment in securities as of September 30, 2022 and December 31, 2021 relates to 317,428 shares of preferred convertible debt of Zowie Technology Corporation (Taipei Hsien, Taiwan), a supplier of electronic component products, with our option after three (3) years to convert into common stock or refundable bearing 7% annual interest rate. Our investment represents approximately 7.9% of their total outstanding shares, although we do not have significant influence or control. This investment is accounted for under the cost (plus impairment) basis of accounting, however when facts and circumstances indicate that the carrying value of this asset may not be recoverable, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount exceeds the estimated fair value.

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SHARE BASED COMPENSATION

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Share-Based Payment Arrangement [Text Block]

5 – SHARE BASED COMPENSATION

Accounting for stock options issued to employees measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. Outstanding options to purchase Class A common stock (“the Options”) vest in three equal annual installments beginning one (1) year from the date of grant and are subject to termination provisions as defined in our 2005 Stock Incentive Plan and 2018 Omnibus Incentive Plan (collectively referred to as “the Plans”). The Options activity during the nine months ended September 30, 2022 is as follows:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Years Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2021		294,067		$	2.45		5.0	$	492,000
Grants		60,500			3.54		4.9
Exercised		(120,000	)		1.74		-
Forfeited		(10,000	)		3.40		-
Outstanding at September 30, 2022		224,567		$	3.10		6.1	$	207,000
Exercisable at September 30, 2022		79,934		$	2.59		4.8	$	149,000

At September 30, 2022, the range of individual outstanding weighted average exercise prices was $0.96 to $3.95 and the unamortized compensation expense was approximately $40,000. Stock based compensation recorded in the three and nine months ended September 30, 2022 was $7,000 and $18,000, respectively, and is included in selling, general and administrative expenses on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

6 – COMMITMENTS AND CONTINGENCIES

Inventory Purchasing

Outstanding commitments to purchase inventory from suppliers aggregated approximately $740,000 as of September 30, 2022.

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Accounting Policies, by Policy (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The unaudited condensed consolidated interim financial statements include the accounts of the Company and all wholly owned divisions. All significant intercompany accounts and transactions have been eliminated in consolidation.

These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature and considered necessary for a fair presentation of its financial condition and results of operations for the interim periods presented in this Quarterly Report on Form 10-Q have been included. Operating results for the interim periods are not necessarily indicative of financial results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In preparing these financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates and assumptions included in the Company’s condensed consolidated financial statements relate to the allowance for sales returns, doubtful accounts, inventory reserves, accrued liabilities and deferred income taxes.

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Simplifying the Accounting for Income Taxes”. The pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, “Income Taxes”. The pronouncement also improves consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 was effective for us beginning in the first quarter of fiscal 2021, with early adoption permitted. The adoption of this guidance has not had a material effect on our consolidated financial statements.

In October 2020, the FASB issued ASU No. 2020-10 Codification Improvements, to make incremental improvements to U.S. GAAP and address stakeholder suggestions, including, among other things, clarifying that the requirement to provide comparative information in the financial statements extends to the corresponding disclosures section. The amendments in this update was effective for us beginning with fiscal year 2021, with early adoption permitted. The amendments in this update should be applied retrospectively and at the beginning of the period that includes the adoption date. The adoption of the amendments in this update has not had a material impact on our consolidated financial position and results of operations.

Revenue from Contract with Customer [Policy Text Block]

Revenue recognition

Revenue is recognized at the point at which control of the underlying products are transferred to the customer. Satisfaction of our performance obligations occur upon the transfer of control of products, either from our facilities or directly from suppliers to customers. We consider customer purchase orders to be the contracts with a customer. All revenue is generated from contracts with customers.

In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect to receive.

Taxes assessed by a governmental authority on revenue-producing transactions are excluded from revenue.

Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of products sold.

Based upon the nature of our contracts with customers and our performance obligations within those contracts, we have no contract assets or liabilities as of September 30, 2022 and December 31, 2021.

Revenue [Policy Text Block]

Nature of products

We are primarily a supplier of original designed and manufactured (“ODM”) products that include value-added engineering and turn-key solutions. The following is a description of major products lines from which we generate our revenue:

ODM Projects - Our custom made small devices for original equipment manufacturers (“OEMs”) and contract electronic manufacturers (CEMs) in their multi-year turn-key projects and marketed in specific industries such as: wild animal feeders, timers for DC motors, public street light controllers, and battery chargers.

ODM Components - Our private labeled electronic components.

Distribution Components - Our name brand electronic components.

Disaggregation of revenue

In the following table, revenue is disaggregated by primary geographical market, major product line, and timing of revenue recognition.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Primary geographical markets:
United States	$	2,285,000	$	2,298,000	$	6,339,000	$	5,700,000
Asia		10,000		182,000		281,000		653,000
Other		5,000		5,000		22,000		21,000
		2,300,000		2,485,000		6,642,000		6,374,000
Major product lines:
ODM projects	$	1,628,000	$	1,695,000	$	4,617,000	$	4,069,000
ODM components		619,000		774,000		1,905,000		2,129,000
Distribution components		53,000		16,000		120,000		176,000
		2,300,000		2,485,000		6,642,000		6,374,000
Timing of revenue recognition:
Products transferred at a point in time	$	2,300,000	$	2,485,000	$	6,642,000	$	6,374,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Disaggregation of Revenue [Table Text Block]

In the following table, revenue is disaggregated by primary geographical market, major product line, and timing of revenue recognition.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Primary geographical markets:
United States	$	2,285,000	$	2,298,000	$	6,339,000	$	5,700,000
Asia		10,000		182,000		281,000		653,000
Other		5,000		5,000		22,000		21,000
		2,300,000		2,485,000		6,642,000		6,374,000
Major product lines:
ODM projects	$	1,628,000	$	1,695,000	$	4,617,000	$	4,069,000
ODM components		619,000		774,000		1,905,000		2,129,000
Distribution components		53,000		16,000		120,000		176,000
		2,300,000		2,485,000		6,642,000		6,374,000
Timing of revenue recognition:
Products transferred at a point in time	$	2,300,000	$	2,485,000	$	6,642,000	$	6,374,000

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OTHER ASSETS (Tables)

9 Months Ended

Sep. 30, 2022

Disclosure Text Block Supplement [Abstract]

Schedule of Other Assets [Table Text Block]

	Investment in securities - Zowie Technology		Other			Other Assets Total
Balance at December 31, 2021	$	186,000	$	7,000		$	193,000
Other changes		-		(7,000	)		(7,000	)
Balance at September 30, 2022	$	186,000	$	-		$	186,000

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SHARE BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

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

Accounting for stock options issued to employees measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. Outstanding options to purchase Class A common stock (“the Options”) vest in three equal annual installments beginning one (1) year from the date of grant and are subject to termination provisions as defined in our 2005 Stock Incentive Plan and 2018 Omnibus Incentive Plan (collectively referred to as “the Plans”). The Options activity during the nine months ended September 30, 2022 is as follows:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Years Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2021		294,067		$	2.45		5.0	$	492,000
Grants		60,500			3.54		4.9
Exercised		(120,000	)		1.74		-
Forfeited		(10,000	)		3.40		-
Outstanding at September 30, 2022		224,567		$	3.10		6.1	$	207,000
Exercisable at September 30, 2022		79,934		$	2.59		4.8	$	149,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Disaggregation of Revenue - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 2,300,000	$ 2,485,000	$ 6,642,000	$ 6,374,000
Products Transferred at a Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenue	2,300,000	2,485,000	6,642,000	6,374,000
ODM Projects [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,628,000	1,695,000	4,617,000	4,069,000
ODM Components [Member]
Disaggregation of Revenue [Line Items]
Revenue	619,000	774,000	1,905,000	2,129,000
Distribution Components [Member]
Disaggregation of Revenue [Line Items]
Revenue	53,000	16,000	120,000	176,000
UNITED STATES
Disaggregation of Revenue [Line Items]
Revenue	2,285,000	2,298,000	6,339,000	5,700,000
Asia [Member]
Disaggregation of Revenue [Line Items]
Revenue	10,000	182,000	281,000	653,000
Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 5,000	$ 5,000	$ 22,000	$ 21,000

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INVENTORY (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Provision for Other Losses	$ 4,773,000	$ 5,261,000
Reversal of Inventory Reserves	$ 5,028,000	$ 4,892,000

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OTHER ASSETS (Details) - Zowie Technology [Member]	Sep. 30, 2022 USD ($) shares
OTHER ASSETS (Details) [Line Items]
Equity Method Investments | $	$ 186,000
Investment Owned, Balance, Shares | shares	317,428
Equity Method Investment, Ownership Percentage	7.90%

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OTHER ASSETS (Details) - Schedule of Other Assets	9 Months Ended
	Sep. 30, 2022 USD ($)
OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]
Investments Balance	$ 193,000
Other changes	(7,000)
Investments Balance	186,000
Zowie Technology [Member]
OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]
Investments Balance	186,000
Other changes	0
Investments Balance	186,000
Other Investments [Member]
OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]
Investments Balance	7,000
Other changes	(7,000)
Investments Balance	$ 0

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SHARE BASED COMPENSATION (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares	Sep. 30, 2022 USD ($) $ / shares
SHARE BASED COMPENSATION (Details) [Line Items]
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $	$ 40,000	$ 40,000
Share-Based Payment Arrangement, Expense | $	$ 7,000	$ 18,000
2018 Stock Incentive Plan [Member]
SHARE BASED COMPENSATION (Details) [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Terms of Award		vest in three equal annual installments beginning one (1) year from the date of grant and are subject to termination provisions as defined in our 2005 Stock Incentive Plan and 2018 Omnibus Incentive Plan
Minimum [Member]
SHARE BASED COMPENSATION (Details) [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ / shares	$ 0.96	$ 0.96
Maximum [Member]
SHARE BASED COMPENSATION (Details) [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ / shares	$ 3.95	$ 3.95

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SHARE BASED COMPENSATION (Details) - Schedule of Share-based Compensation, Stock Options, Activity - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Schedule Of Share Based Compensation Stock Options Activity Abstract
Options Outstanding, Number of Shares		294,067
Options Outstanding, Weighted Average Exercise Price		$ 2.45
Options Outstanding, Weighted Average Remaining Contractual Term (Years)	6 years 1 month 6 days	5 years
Options Outstanding, Aggregate Intrinsic Value		$ 492,000
Options Exercisable, Number of Shares	79,934
Options Exercisable, Weighted Average Exercise Price	$ 2.59
Options Exercisable, Weighted Average Years Remaining Contractual Term	4 years 9 months 18 days
Options Exercisable, Aggregate Intrinsic Value	$ 149,000
Grants, Number of Shares	60,500
Grants, Weighted Average Exercise Price	$ 3.54
Grants, Weighted Average Remaining Contractual Term (Years)	4 years 10 months 24 days
Options Exercised, Number of Shares	(120,000)
Options Exercised, Weighted Average Exercise Price	$ 1.74
Forfeited, Number of Share	(10,000)
Forfeited, Weighted Average Exercise Price	$ 3.4
Options Outstanding, Number of Shares	224,567
Options Outstanding, Weighted Average Exercise Price	$ 3.1
Options Outstanding, Aggregate Intrinsic Value	$ 207,000

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COMMITMENTS AND CONTINGENCIES (Details)	Sep. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Purchase Commitment, Remaining Minimum Amount Committed	$ 740,000