Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Tables/Schedules

Schedule of Restricted Cash

	2017	2016
Cash and cash equivalents	$ 5,276	$ 6,823
Restricted cash	312	603
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows	$ 5,588	$ 7,426

Schedule of Doubtful Accounts

The table below represents changes in E&S’s allowance for doubtful accounts receivable for the years ended December 31:

	2017	2016
Beginning balance	$ 259	$ 286
Write-off of accounts receivable	(7)	(47)
Increase (decrease) in estimated losses on accounts receivable	(143)	20
Ending balance	$ 109	$ 259

Schedule of Inventory

Inventories as of December 31, were as follows:

	2017	2016
Raw materials	$ 5,458	$ 5,427
Work in process	1,011	1,120
Finished goods	423	326
Reserve for obsolete inventory	(2,919)	(3,122)
Inventories, net	$ 3,973	$ 3,751

Schedule of Depreciation

Depreciation expense was $259 and $267 for the years ended December 31, 2017 and 2016, respectively.  The cost and estimated useful lives of property and equipment and the total accumulated depreciation and amortization were as follows as of December 31:

	Estimated
	Useful Lives	2017	2016
Land	n/a	$ 2,250	$ 2,250
Buildings and improvements	5 - 40 years	3,065	3,065
Manufacturing machinery and equipment	3 - 8 years	5,582	5,434
Office furniture and equipment	3 - 8 years	779	779
Total		11,676	11,528
Less accumulated depreciation and amortization		(7,149)	(6,890)
Net property and equipment		$ 4,527	$ 4,638

Schedule of Product Warranty Reserve

The table below represents changes in E&S’s warranty reserve for the years ended December 31:

	2017	2016
Beginning balance	$ 123	$ 127
Additions to warranty reserve	249	227
Warranty costs	(233)	(231)
Ending balance	$ 139	$ 123

Schedule of Revenue Recognition

The following table provides information on revenues by recognition method applied during the years:

	2017	2016
Percentage of completion	$ 17,653	$ 18,248
Completed contract	11,041	12,845
Other	1,814	1,851
Total sales	$ 30,508	$ 32,944

Schedule of Net Income Per Common Share

Net income per common share has been computed based on the following:

	2017	2016
Numerator
Net Income	$ 1,481	$ 1,743
Denominator
Weighted-average number of common shares outstanding - basic	11,353	11,214
Incremental shares assumed for stock options	661	622
Weighted-average number of common shares outstanding - dilutive	12,014	11,836
Basic net income per common share	$ 0.13	$ 0.16
Diluted net income per common share	$ 0.12	$ 0.15