Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

Business Description, Basis of Presentation and Significant Accounting Policies

Business Description:

ClearOne, Inc., together with its subsidiaries (collectively, “ClearOne” or the “Company”), is a global Company that designs, develops and sells conferencing, collaboration, network streaming and digital signage solutions for audio and visual communications. The performance and simplicity of our advanced comprehensive solutions offer unprecedented levels of functionality, reliability, and scalability.

Basis of Presentation:

Fiscal Year

– This report on Form

-K includes consolidated balance sheets for the years ended

December 31, 2017

and

2016

and the related consolidated statements of operations and comprehensive income/(loss), cash flows, and shareholders’ equity for each of the years

2017,

2016

and

2015.

Consolidation

– These consolidated financial statements include the financial statements of ClearOne, Inc. and its wholly owned subsidiaries. All inter-Company accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.

Use of Estimates

– The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting periods. Key estimates in the accompanying consolidated financial statements include, among others, revenue recognition, allowances for doubtful accounts and product returns, provisions for obsolete inventory, potential impairment of goodwill and of long-lived assets, and deferred income tax asset valuation allowances. Actual results could differ materially from these estimates.

Foreign Currency Translation

– We are exposed to foreign currency exchange risk through our foreign subsidiaries. Other than our Spain subsidiary, our foreign subsidiaries are U.S. dollar functional, for which gains and losses arising from remeasurement are included in earnings. Our Spain subsidiary is Euro functional, for which gains and losses arising from translation are included in accumulated other comprehensive income or loss. We translate and remeasure foreign assets and liabilities at exchange rates in effect at the balance sheet dates. We translate revenue and expenses using average rates during the year.

Concentration Risk

– We depend on an outsourced manufacturing strategy for our products. We outsource the manufacture of all of our products (except digital signage products) to

third

party manufacturers located in both the U.S. and Asia. If any of these manufacturers experience difficulties in obtaining sufficient supplies of components, component prices significantly exceeding the anticipated costs, an interruption in their operations, or otherwise suffer capacity constraints, we would experience a delay in production and shipping of these products, which would have a negative impact on our revenues. Should there be any disruption in services due to natural disaster, economic or political difficulties, transportation restrictions, acts of terror, quarantine or other restrictions associated with infectious diseases, or other similar events, or any other reason, such disruption

may

have a material adverse effect on our business. Operating in the international environment exposes us to certain inherent risks, including unexpected changes in regulatory requirements and tariffs, and potentially adverse tax consequences, which could materially affect our results of operations. Currently, we have

second

source of manufacturing for a portion of our products.

Significant Accounting Policies:

Cash Equivalents

– The Company considers all highly-liquid investments with a maturity of

three

months or less, when purchased, to be cash equivalents. The Company places its temporary cash investments with high-quality financial institutions. At times, such investments

may

be in excess of the Federal Deposit Insurance Corporation insurance limits.

Marketable Securities -

The Company has classified its marketable securities as available-for-sale securities. These securities are carried at estimated fair value with unrealized holding gains and losses included in accumulated other comprehensive income/(loss) in shareholders’ equity until realized. Gains and losses on marketable security transactions are reported on the specific-identification method. Dividend and interest income are recognized when earned.

A decline in the market value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and establishes a new cost basis for the security. Losses are charged against “Other income” when a decline in fair value is determined to be other than temporary. We review several factors to determine whether a loss is other than temporary. These factors include, but are

not

limited to: (i) the extent to which the fair value is less than cost and the cause for the fair value decline, (ii) the financial condition and near term prospects of the issuer, (iii) the length of time a security is in an unrealized loss position and (iv) our ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. There were

other-than-temporary impairments recognized during the years ended

December 31, 2017,

2016

and

2015.

Accounts Receivable

– Accounts receivable are recorded at the invoiced amount. Generally, credit is granted to customers on a short-term basis without requiring collateral, and as such, these accounts receivable, do

not

bear interest, although a finance charge

may

be applied to such receivables that are past due. The Company extends credit to customers who it believes have the financial strength to pay. The Company has in place credit policies and procedures, an approval process for sales returns and credit memos, and processes for managing and monitoring channel inventory levels.

The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Management regularly analyzes accounts receivable including current aging, historical write-off experience, customer concentrations, customer creditworthiness, and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. We review customer accounts quarterly by

first

assessing accounts with aging over a specific duration and balance over a specific amount. We review all other balances on a pooled basis based on past collection experience. Accounts identified in our customer-level review as exceeding certain thresholds are assessed for potential allowance adjustment if we conclude the financial condition of that customer has deteriorated, adversely affecting their ability to make payments. Delinquent account balances are written off if the Company determines that the likelihood of collection is

not

probable. If the assumptions that are used to determine the allowance for doubtful accounts change , the Company

may

have to provide for a greater level of expense in future periods or reverse amounts provided in prior periods.

The Company’s allowance for doubtful accounts activity for the years ended as follows:

	Year Ended December 31,
	2017			2016			201 5
Balance at beginning of the year	$	187		$	54		$	58
Allowance increase (decrease)		287			148			36
Write offs , net of recoveries		(2	)		(15	)		(40	)
Balance at end of the year	$	472		$	187		$	54

Inventories

– Inventories are valued at the lower of cost or market, with cost computed on a

first

-in,

first

-out (“FIFO”) basis. In addition to the price of the product purchased, the cost of inventory includes the Company’s internal manufacturing costs, including warehousing, engineering, material purchasing, quality and product planning expenses and applicable overhead,

not

in excess of estimated realizable value. Consideration is given to obsolescence, excessive levels, deterioration, direct selling expenses, and other factors in evaluating net realizable value.

Distributor channel inventories include products that have been delivered to customers for which revenue recognition criteria have

not

been met.

The inventory also includes advance replacement units (valued at cost) provided by the Company to end-users to service defective products under warranty. The value of advance replacement units included in the inventory was

$76

and

$21,

as of

December 31, 2017

and

2016,

respectively.

The inventory consists of current inventory of

$14,415

and long-term inventory of

$8,708.

Long term inventory represents inventory held in excess of our current (next

months) requirements based on our recent sales and forecasted level of sales.

Property and Equipment

– Property and equipment are stated at cost less accumulated depreciation and amortization. Expenditures that materially increase values or capacities or extend useful lives of property and equipment are capitalized. Routine maintenance, repairs, and renewal costs are expensed as incurred. Gains or losses from the sale, trade-in, or retirement of property and equipment are recorded in current operations and the related book value of the property is removed from property and equipment accounts and the related accumulated depreciation and amortization accounts. Estimated useful lives are generally

two

ten

years. Depreciation and amortization are calculated over the estimated useful lives of the respective assets using the straight-line method. Leasehold improvement amortization is computed using the straight-line method over the shorter of the lease term or the estimated useful life of the related assets.

Goodwill and Intangible Assets –

Intangible assets acquired in a purchase business combination are amortized over their useful lives unless these lives are determined to be indefinite. Intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, which are generally

three

ten

years. Goodwill represents the excess of costs over the fair value of net assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are

not

amortized.

Impairment of Goodwill -

Goodwill is measured as the excess of the cost of acquisition over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. In accordance with the provisions of FASB ASC Topic

350,

Intangibles – Goodwill and Other

the Company performs impairment tests of goodwill on an annual basis in the

fourth

fiscal quarter, or sooner if a triggering event occurs suggesting possible impairment of the values of these assets.

We assess the recoverability of our

one

reporting unit’s carrying value of goodwill by making a qualitative or quantitative assessment. If we begin with a qualitative assessment and are able to support the conclusion that it is

not

more likely than

not

that the fair value of the Company is less than its carrying value, we are

not

required to perform the

two

-step impairment test. Otherwise, using the two−step approach is required (See

Note

– Business Combinations, Goodwill and

Intangibles

). ClearOne and all of its subsidiaries are considered as

one

reporting unit for this purpose.

In the

first

step of the goodwill impairment test, we compare the carrying value the Company, including its recorded goodwill, to the estimated fair value. We estimate the fair value using an equity-value based methodology. The principal method used is an equity-value based method in which the Company’s market-cap is compared to the net book value. This value is then compared to total net assets. If the fair value of the Company exceeds its carrying value, the goodwill is

not

impaired and

further review is required. However, if the fair value of the reporting unit is less than its carrying value, we perform the

second

step of the goodwill impairment test to determine the amount of the impairment charge, if any.

The

second

step involves a hypothetical allocation of the fair value of the Company to its net tangible and intangible assets (excluding goodwill) as if the business unit were newly acquired, which results in an implied fair value of goodwill. The amount of the impairment charge is the excess of the recorded goodwill over the implied fair value of goodwill.

During the

third

quarter ended

September 30, 2017,

we recorded

$12,724,

or the entire value of goodwill, as an impairment charge.

Impairment of Long-Lived Assets -

Long-lived assets, such as property, equipment, and definite-lived intangible assets subject to depreciation and amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset

may

not

be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to estimated future undiscounted net cash flows of the related asset or group of assets over their remaining lives. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment charge is recognized for the amount by which the carrying amount exceeds the estimated fair value of the asset. Impairment of long-lived assets is assessed at the lowest levels for which there are identifiable cash flows that are independent of other groups of assets. The impairment of long-lived assets requires judgments and estimates. If circumstances change, such estimates could also change. Assets held for sale are reported at the lower of the carrying amount or fair value, less the estimated costs to sell.

During the

twelve

months ended

December 31, 2017

we recorded

$769

as a charge for impairment of an intangible asset consisting of customer relationships.

Revenue Recognition

– Product revenue is recognized when (i) the products are shipped, (ii) persuasive evidence of an arrangement exists, (iii) the price is fixed and determinable, and (iv) collection is reasonably assured.

The Company provides a right of return on product sales to certain distributors and other resellers under a product rotation program. Under this seldom-used program, once a quarter, a distributor or reseller is allowed to return products purchased during the prior

180

days for a total value generally

not

exceeding

15%

of the distributor’s or reseller’s net purchases during the preceding quarter. The distributor or reseller is, however, required to place a new purchase order for an amount

not

less than the value of products returned under the stock rotation program. When products are returned, the associated revenue, cost of goods sold, inventory and accounts receivable originally recorded are reversed. When the new order is fulfilled, the revenue, associated cost of goods sold, inventory and accounts receivable are recorded and the product revenue is subject to the deferral analysis described below. In a small number of cases, the distributors are also permitted to return products for other business reasons.

Revenue from product sales to distributors is

not

recognized until the return privilege has expired or until it can be determined with reasonable certainty that the return privilege has expired, which approximates when product is sold-through to customers of the Company’s distributors (dealers, system integrators, value-added resellers, and end-users) rather than when the product is initially shipped to a distributor. At each quarter-end, the Company evaluates the inventory in the channel through information provided by our distributors. The level of inventory in the channel will fluctuate up-ward or down-ward each quarter, based upon its distributors’ individual operations. Accordingly, at each quarter-end, the deferral for revenue and associated cost of goods sold are calculated and recorded based upon the actual channel inventory reported at quarter-end. Further, with respect to distributors and other channel partners

not

reporting the channel inventory, the revenue and associated cost of goods sold are deferred until the Company receives payment for the product sales made to such distributors or channel partners.

The amount of deferred cost of goods sold is included in distributor channel inventories.

The details of deferred revenue and associated cost of goods sold and gross profit are as follows:

	As of December 31,
	2017		2016
Deferred revenue	$	4,635	$	3,882
Deferred cost of goods sold		1,555		1,530
Deferred gross profit	$	3,080	$	2,352

The Company offers rebates and market development funds to certain of its distributors, dealers/resellers, and end-users based upon the volume of product purchased by them. The Company records rebates as a reduction of revenue in accordance with GAAP.

The Company provides, at its discretion, advance replacement units to end-users on defective units of certain products under warranty. Since the purpose of these units is

not

revenue generating, the Company tracks the units due from the end-user, until the defective unit has been returned. Any amount due from the customer upon failure to return the products is accounted as receivable only after establishing customer's failure to return the products. The inventory due from the customer is accounted at cost or market value whichever is lower.

Sales and Similar Taxes -

Taxes collected from customers and remitted to government authorities are reported on a net basis and thus are excluded from revenues.

Shipping and Handling Costs –

Shipping and handling billed to customers is recorded as revenue. Shipping and handling costs are included in cost of goods sold.

Warranty Costs

– The Company accrues for warranty costs based on estimated warranty return rates and estimated costs to repair. These reserve costs are classified as accrued liabilities on the consolidated balance sheets. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty returns, and repair cost. The Company reviews the adequacy of its recorded warranty accrual on a quarterly basis.

The details of changes in the Company’s warranty accrual are as follows:

	Year Ended December 31,
	2017			2016			201 5
Balance at the beginning of year	$	246		$	288		$	331
Accruals/additions		399			361			442
Usage/claims		(400	)		(403	)		(485	)
Balance at end of year	$	245		$	246		$	288

Advertising

– The Company expenses advertising costs as incurred. Advertising costs consist of trade shows, magazine advertisements, and other forms of media. Advertising expenses for the years ended

December 31, 2017,

2016

and

2015

totaled

$1,079,

$836,

and

$728,

respectively, and are included under the caption “Sales and Marketing”.

Research and Product Development Costs

– The Company expenses research and product development costs as incurred.

Income Taxes

– The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carry-forwards. These temporary differences will result in deductible or taxable amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than

not

that some or all of the deferred tax assets

may

not

be realized. The Company evaluates the realizability of its net deferred tax assets on a quarterly basis and valuation allowances are provided, as necessary. Adjustments to the valuation allowance increase or decrease the Company’s income tax provision or benefit. As of

December 31, 2017

and

2016,

the Company had a valuation allowance of

$2,236

and

$1,404,

respectively against foreign net operating losses, foreign intangible assets, capital losses carryforwards, and state research and development credits.

December 22, 2017,

the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act, which is generally effective for tax years beginning on

January 1, 2018,

makes broad and complex changes to the U.S. tax code, including, but

not

limited to, (

) reducing the U.S. federal corporate tax rate from

percent to

percent; (

) eliminating the corporate alternative minimum tax (AMT); (

) bonus depreciation that will allow for full expensing of qualified property; (

) creating a new limitation on deductible interest expense; (

) the repeal of the domestic production activity deduction; (

) the creation of the base erosion anti-abuse tax (BEAT), a new minimum tax; (

) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries and imposing a

one

-time repatriation tax on deemed repatriated earnings and profits of U.S.-owned foreign subsidiaries (the Transition Tax); (

) a new provision designed to tax global intangible low-taxed income (GILTI), which allows for the possibility of using foreign tax credits (FTCs) and a deduction of up to

percent to offset the income tax liability (subject to some limitations); and (

) changing rules related to uses and limitation of net operating loss carryforwards created in tax years beginning after

December 31, 2017.

Shortly after enactment, the Securities and Exchange Commission issued Staff Accounting Bulletin

No.

118

("SAB

118"

) which provided US GAAP guidance on the accounting for the Act's impact at

December 31, 2017.

A reporting entity

may

recognize provisional amounts, where the necessary information is

not

available, prepared or analyzed (including computations) in reasonable detail or where additional guidance is needed from the taxing authority to determine the appropriate application of the Act. A reporting entity's provisional impact analysis

may

be adjusted within the

-month measurement period provided for under SAB

118.

The Transition Tax is based on the Company's post-

1986

earnings and profits (E&P) of U.S.-owned foreign subsidiaries for which the Company had previously deferred U.S. income taxes. Due to the aggregate loss position of these subsidiaries, the Company estimates that the Transition Tax will

not

result in additional U.S. tax.

The reduction in the corporate tax rate to

percent due to the Tax Act is effective

January 1, 2018.

Consequently, the Company has recorded a decrease related to the net deferred tax assets of approximately

$3.3

million with a corresponding net adjustment to deferred income tax expense of approximately

$3.3

million for the year ended

December 31, 2017.

The impact of the Tax Act

may

differ from amounts currently recorded, possibly materially, during the

-month measurement period due to, among other things, further refinement of the Company's calculations, changes in interpretations and assumptions the Company has made, guidance that

may

be issued and actions the Company

may

take as a result of the Tax Act.

The Company follows the provisions contained in ASC Topic

740,

Income Taxes.

The Company recognizes the tax benefit from an uncertain tax position only if it is at least more likely than

not

that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.

Judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company’s tax returns are subject to audit by various tax authorities. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates.

Earnings Per Share

– The following table sets forth the computation of basic and diluted earnings per common share:

	Year Ended December 31,
	2017			2016		201 5
Numerator:
Net income/(loss)	$	(14,172	)	$	2,444	$	6,776
Denominator:
Basic weighted average shares		8,576,588			9,021,980		9,127,385
Dilutive common stock equivalents using treasury stock method		-			284,054		467,274
Diluted weighted average shares		8,576,588			9,306,034		9,594,659

Basic earnings per common share:	$	(1.65	)	$	0.27	$	0.74
Diluted earnings per common share:	$	(1.65	)	$	0.26	$	0.71

Weighted average options outstanding		815,870			885,163		1,053,785
Anti-dilutive options not included in the computation		815,870			323,644		177,125

Share-Based Payment

– We estimate the fair value of stock options using the Black-Scholes option-pricing model, which requires certain estimates, including an expected forfeiture rate and expected term of options granted. We also make decisions regarding the method of calculating expected volatilities and the risk-free interest rate used in the option-pricing model. The resulting calculated fair value of stock options is recognized as compensation expense over the requisite service period, which is generally the vesting period. When there are changes to the assumptions used in the option-pricing model, including fluctuations in the market price of our common stock, there will be variations in the calculated fair value of our future stock option awards, which results in variation in the compensation cost recognized.

Recent Accounting Pronouncements -

Recent Accounting Standards

Not

Yet Effective as of Fiscal Year End.

May 2014,

the FASB issued ASU

2014

09,

Revenue from Contracts with Customers (Topic

606

), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method. Early adoption is permitted. The updated standard becomes effective for the Company on

January 1, 2018.

The Company expects to adopt this accounting standard update on a modified retrospective basis in the

first

quarter of fiscal

2018,

and it is currently evaluating the impact of this accounting standard update on the consolidated financial statements.

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

) to bring transparency to lessee balance sheets. The ASU will require organizations that lease assets (lessees) to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than

months. The standard will apply to both types of leases-capital (or finance) leases and operating leases. Previously, GAAP has required only capital leases to be recognized on lessee balance sheets. The standard is effective for fiscal years beginning after

December 15, 2018

and interim periods within fiscal years beginning after

December 15, 2018.

Early application will be permitted for all organizations. The Company has

not

yet selected a transition method and is currently evaluating the effect that the updated standard will have on the consolidated financial statements.

March 2016,

the FASB issued ASU

No.

2016

09,

Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU

2016

was effective for the Company on

January 1, 2017.

As a result of the adoption of ASU

2016

09,

excess tax benefits or deficiencies related to stock-based compensation are now reflected in the Consolidated Statements of Operations as a component of the provision for income taxes, whereas they previously were recognized in additional paid-in capital. In addition, our Consolidated Statements of Cash Flows will now present, on a prospective basis, excess tax benefits as an operating activity. Finally, we have elected to account for forfeitures as they occur, rather than estimate expected forfeitures.

August 2016,

the FASB issued ASU

No.

2016

15,

Classification of Certain Cash Receipts and Cash Payments, which addresses

eight

specific cash flow issues with the objective of reducing the existing diversity in practice. ASU

2016

is effective for the Company beginning

January 1, 2018

and the Company is currently evaluating the impact that ASU

2016

will have on the consolidated financial statements.

May 2017,

the FASB issued ASU

No.

2017

09,

Compensation—Stock Compensation (Topic

718

): Scope of Modification Accounting. The new guidance provides clarity and reduces both (

) diversity in practice and (

) cost and complexity when applying the guidance in Topic

718,

Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. The accounting standard update will be effective for The Company beginning

January 1, 2018

on a prospective basis, and early adoption is permitted. The Company has

not

yet selected a transition method and is currently evaluating the effect that the updated standard will have on the consolidated financial statements.

Note 2 - Marketable Securities

12 Months Ended

Dec. 31, 2017

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Marketable Securities

The Company has classified its marketable securities as available-for-sale securities. These securities are carried at estimated fair value with unrealized holding gains and losses included in accumulated other comprehensive income/loss in shareholders’ equity until realized. Gains and losses on marketable security transactions are reported on the specific-identification method. Dividend and interest income are recognized when earned.

The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of security at

December 31, 2017

and

2016

were as follows:

	Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
December 31, 2017
Available-for-sale securities:
Corporate bonds and notes	$	8,458	$	19	$	(49	)	$	8,428
Municipal bonds		4,637		1		(28	)		4,610
Total available-for-sale securities	$	13,095	$	20	$	(77	)	$	13,038

December 31, 2016
Available-for-sale securities:
Corporate bonds and notes	$	20,028	$	64	$	(122	)	$	19,970
Municipal bonds		6,463		6		(44	)		6,425
Total available-for-sale securities	$	26,491	$	70	$	(166	)	$	26,395

Maturities of marketable securities classified as available-for-sale securities were as follows at

December 31, 2017:

	Amortized		Estimated
	cost		fair value

Due within one year	$	2,688	$	2,688
Due after one year through five years		10,408		10,350
Total available-for-sale securities	$	13,096	$	13,038

Debt securities in an unrealized loss position as of

December 31, 2017

were

not

deemed impaired at acquisition and subsequent declines in fair value are

not

deemed attributed to declines in credit quality. Management believes that it is more likely than

not

that the securities will receive a full recovery of par value. The available-for-sale marketable securities in a gross unrealized loss position as of

December 31, 2017

are summarized as follows:

	Less than 12 months					More than 12 months					Total
	Estimated fair value		Gross unrealized holding losses			Estimated fair value		Gross unrealized holding losses			Estimated fair value		Gross unrealized holding losses
As of December 31, 2017
Corporate bonds and notes	$	3,799	$	(20	)		2,125	$	(30	)	$	5,924	$	(50	)
Municipal bonds		3,341		(18	)		657		(9	)		3,998		(27	)
	$	7,140	$	(38	)	$	2,782	$	(39	)	$	9,922	$	(77	)

Note 3 - Business Combinations, Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Business Combinations, Goodwill and Intangibles Disclosure [Text Block]

Business Combinations, Goodwill and Intangible Assets

Goodwill impairment

There was a decrease in goodwill during the

twelve

months ended from

$12,724

as of

December 31, 2016

as of

December 31, 2017

due to the impairment of goodwill. During the

third

quarter ended

September 30, 2017,

there was a decrease in the Company’s market capitalization which was determined to be a triggering event for potential goodwill impairment. Accordingly, the Company performed a goodwill impairment analysis. The Company utilized the market capitalization to estimate the fair value. Our total stockholders’ equity exceeded the estimated fair value. The failure of step

one

of the goodwill impairment test triggered a step

two

impairment test. As a result of step

two

of the impairment test, the Company determined the implied fair value of goodwill and concluded that the carrying value of goodwill exceeded its implied fair value as of

September 30, 2017.

Accordingly, an impairment charge of

$12,724,

which represents a full impairment charge, was recognized in the

third

quarter ended

September 30, 2017.

Intangible Assets

Intangible assets as of

December 31, 2017,

and

2016

consisted of the following:

	Estimated useful lives				As of December 31,
	(in years)				2017			2016
Tradename		5	to	7	$	555		$	555
Patents and technological know-how			10			8,578			6,010
Proprietary software		3	to	15		2,981			4,341
Other		3	to	5		323			324
Total intangible assets, gross						12,437			11,230
Accumulated amortization						(5,894	)		(5,553	)
Total intangible assets, net					$	6,543		$	5,677

During the years ended

December 31, 2017,

2016

and

2015,

amortization of these intangible assets were

$932,

$1,121,

and $

1,258

respectively.

The estimated future amortization expense of intangible assets is as follows:

Years ending December 31,
2018	$	935
2019		831
2020		652
2021		652
2022		652
Thereafter		2,821
Total	$	6,543

Note 4 - Inventories

12 Months Ended

Dec. 31, 2017

Inventory Disclosure [Text Block]

Inventories

Inventories, net of reserves, consisted of the following:

	As of December 31,
	2017		2016
Current:
Raw materials	$	197	$	2,291
Finished goods		14,218		9,086
Total	$	14,415	$	11,377
Long-term:
Raw materials	$	2,682	$	599
Finished goods		6,026		1,065
Total	$	8,708	$	1,664

Long-term inventory represents inventory held in excess of our current (next

months) requirements based on our recent sales and forecasted level of sales. We have developed programs to reduce the inventory to normal operating levels in the near future. We expect to sell the above inventory, net of reserves, at or above the stated cost and believe that

loss will be incurred on its sale.

Current finished goods do

not

include distributor channel inventories in the amounts of approximately

$1,555

and

$1,530

as of

December 31, 2017

and

2016,

respectively. Distributor channel inventories represent inventory at distributors and other customers where revenue recognition criteria have

not

been achieved.

The losses incurred on valuation of inventory at the lower of cost or market value and write-off of obsolete inventory amounted to

$649,

$653

and

$496

during the years ended

December 31, 2017,

2016

and

2015,

respectively.

Note 5 - Property and Equipment

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment Disclosure [Text Block]

Property and Equipment

Major classifications of property and equipment and estimated useful lives were as follows:

	Estimated useful lives				As of December 31,
	in years				2017			2016
Office furniture and equipment		3	to	10	$	4,904		$	4,835
Leasehold improvements		1	to	6		1,509			1,495
Vehicles		5	to	10		160			-
Manufacturing and test equipment		2	to	10		2,577			2,537
						9,150			8,867
Accumulated depreciation and amortization						(7,601	)		(7,354	)
Property and equipment, net					$	1,549		$	1,513

Depreciation expense on property and equipment for the years ended

December 31, 2017,

2016

and

2015

was

$599,

$723,

and

$801,

respectively. During the

twelve

months ended December

31,

2017

we recorded

$128

thousand for the disposal of fixed assets consisting of software, manufacturing equipment and furniture.

Note 6 - Leases and Deferred Rent

12 Months Ended

Dec. 31, 2017

Leases of Lessee Disclosure [Text Block]

Leases and Deferred Rent

Rent expense is recognized on a straight-line basis over the period of the lease taking into account future rent escalation and holiday periods. Rent expense was

$999,

$1,099

and

$1,420,

including amortization of deferred rent of

$44,

$73,

and

$95

for the years ended

December 31, 2017,

2016

and

2015,

respectively.

We occupy a

5,000

square-foot facility in Gainesville, Florida under the terms of an operating lease that expires in

February 2021

with the possibility of renewing the lease for

more years. The Gainesville facility was used primarily to support our research and development activities.

We lease a

4,700

square-foot office facility in Hod Hasharon, Israel under the terms of an operating lease expiring in

December 2019

which serves to support our research and development activities. Upon expiration, we will have the option to extend the lease for

two

additional years.

We currently occupy a

31,000

square-foot facility in Salt Lake City, Utah under the terms of an operating lease expiring in

May 2019,

which supports our principal administrative, sales, marketing, customer support, and research and product development activities.

We occupy a

10,700

square-foot warehouse in Shenzhen, China under the terms of an operating lease expiring in

September 2019,

which serves as our primary inventory fulfillment and repair center for Asia.

We occupy a

7,070

square-foot facility in Austin, Texas - under the terms of an operating lease expiring in

October 2019.

This facility support our administrative, sales, marketing, customer support, and research and development activities.

We occupy a

40,000

square-foot warehouse in Salt Lake City, Utah under the terms of an operating lease expiring in

April 2025,

which serves as our primary inventory fulfillment and repair center. This facility also serves as our assembly workshop for digital signage products.

Future minimum lease payments under non-cancellable operating leases with initial terms of

one

year or more are as follows:

Years ending December 31,
2018	$	762
2019		412
2020		182
2021		187
2022		193
Thereafter		472
Total minimum lease payments	$	2,208

Note 8 - Commitments and Contingencies	12 Months Ended
Note 8 - Commitments and Contingencies	Dec. 31, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	8. Commitments and Contingencies We establish contingent liabilities when a particular contingency is both probable and estimable. The Company is not aware of any pending claims or assessments, other than as described below, which may have a material adverse impact on the Company’s financial position or results of operations. Outsource Manufacturers. We have manufacturing agreements with electronics manufacturing service (“EMS”) providers related to the outsourced manufacturing of our products. Certain manufacturing agreements establish annual volume commitments. We are also obligated to repurchase Company-forecasted but unused materials. The Company has non-cancellable, non-returnable, and long-lead time commitments with its EMS providers and certain suppliers for inventory components that will be used in production. The Company’s purchase commitments under such agreements is approximately $3,402 as of December 31, 2017. Uncertain Tax Positions. As further discussed in Note 12, we had $652 of uncertain tax positions as of December 31, 2017. Due to the inherent uncertainty of the underlying tax positions, it is not possible to forecast the payment of this liability to any particular year. Legal Proceedings. Intellectual Property Litigation On April 25, 2017, the Company was awarded a new patent, U.S. Patent No. 9,635,186 (the “186 Patent”), which relates to a system and method involving the combination of echo cancellation and beamforming microphone arrays. Also on April 25, 2017, the Company filed a lawsuit in the U.S. Federal District Court in the District of Utah against three parties—Shure, Inc. (“Shure”), Biamp Systems Corporation (“Biamp”), and QSC Audio Products, LLC (“QSC,” together with Shure and Biamp, collectively, the “Defendants”), alleging that the Defendants were jointly and indirectly infringing the newly issued ‘186 Patent (the “Infringement Action”). On that same day, Shure filed a separate action in the U.S. Federal District Court in the Northern District of Illinois (the “Illinois Action”) requesting a declaratory judgment as to the invalidity or non-infringement with respect to the ‘186 Patent. The Illinois Action also seeks the same declaratory judgment with respect to another Company patent, United States Patent No. 9,264,553 (the “553 Patent”), and which has not been asserted by the Company against any defendant and has been submitted to the USPTO for reissue. In early 2018, Shure added a claim that the ‘186 Patent is unenforceable. On May 22, 2017, the U.S. Supreme Court issued its opinion in the TC Heartland LLC v. Kraft Foods Group Brands LLC, No. 16–341. That opinion changed the law on permissible venues for patent litigation from any district in which there was personal jurisdiction over a defendant to only districts in which a defendant was incorporated or had a regular and established place of business. Given that none of the Defendants were incorporated or had a regular and established place of business in the District of Utah, on May 30, 2017, the Company filed an answer to the Illinois Action and counterclaims substantially the same as those in the Company’s Infringement Action, joining Biamp and QSC as counter-defendants with Shure in such counterclaims in the Illinois Action, and on May 31, 2017, the Company voluntarily dismissed the Infringement Action in Utah without prejudice. On November 14, 2017 the U.S. Federal District Court in the Northern District of Illinois granted Biamp’s and QSC’s motions to dismiss for lack of appropriate venue and followed up with a written opinion on March 16, 2018 consistent with its minute order on November 14, 2017. Also on March 16, the Court granted the Company’s motion to dismiss Shure’s declaratory judgment claim for noninfringement of the '553 Patent. On July 14, 2017, Shure filed a petition with Patent Trial and Appeals Board (“PTAB”) for inter partes review against the ‘553 Patent. On January 29, 2018, PTAB decided to institute inter partes review. On August 6, 2017, the Company filed a motion seeking a preliminary injunction to enjoin the defendants from continuing to infringe on the Company’s '186 Patent. On March 16, 2018 the Court denied the Company’s motion for preliminary injunction. On November 7, 2017, the U.S. Patent and Trademark Office awarded the Company U.S. Patent No. 9,813,806 ("the '806 Patent"). On February 6, 2018, the Company filed a motion for leave to file a Second Amended Counterclaim adding the '806 Patent to the case. The Court granted the motion the next day. On April 17, the Company filed a motion for preliminary injunction to enjoin Shure from continuing to infringe the Company’s '806 Patent. The Company intends to continue to vigorously enforce and defend its intellectual property rights in the Illinois Action. During twelve months ended December 31, 2016 and 2016, the Company recorded $408 and $1,111 respectively, of pretax gross expenses related to this intellectual property litigation to prevent infringement of the Company’s patents. In addition, the Company also capitalized $2,289 of litigation expenses related to this matter during the twelve months ended December 31, 2017. Former Employee Litigation On or about October 24, 2016, the Company received written notice from the United States Department of Labor, Occupational Health and Safety Administration (“OSHA”) that a complaint had been filed against it by a former employee. Among other things, the former employee’s OSHA complaint alleged harassment, retaliation, and violations of 18 U.S.C.A. Section 1514A, et seq. (the “Sarbanes-Oxley Act”), arising out of the termination of his employment with the Company on or about August 17, 2016 ( the “OSHA Complaint”). By letter dated March 2, 2017, the Company received notice that the same former employee who initiated the OSHA Complaint filed a complaint with the Utah Labor Commission, Anti-Discrimination & Labor Division (“UALD“), alleging that the employee's termination was discriminatory based upon a disability or, in the alternative, retaliatory for substantially the same reasons alleged in the OSHA Complaint. The charge was also forwarded to the United States Equal Employment and Opportunity Commission (“EEOC“) and was also recognized as a charge under the EEOC's federal jurisdiction. Following negotiations between the parties, the parties executed a settlement agreement on December 7, 2017 ( “the Agreement“) with respect to the OSHA Complaint. Per the terms of the Agreement, the Company's signing of the Agreement in no way constitutes an admission of a violation of any law or regulation enforced by OSHA. Around the same time in December 2017, the parties executed a side settlement agreement by which the former employee acknowledged that he does not believe that the Company engaged in activities which would be construed as violations of securities-related laws and agreed to withdraw his charge against the Company from the UALD and the EEOC. The charge was effectively withdrawn on December 6, 2017. During the twelve months ended December 31, 2016 and 2017, the Company recorded $927 and $152 respectively, of pretax gross expenses and settlement costs related to the defense of the OSHA Complaint and review of the allegations underlying the former employee’s OSHA complaint. The amount recorded in 2017 is net of recoveries from the insurance company towards this matter. The Company maintains an Employment Practices Liability policy with Chubb/Federal Insurance Company (the “EPL Policy”). Based on the allegations contained in the OSHA Complaint, the Company has tendered a claim for coverage under the EPL Policy. In addition, the Company is also involved from time to time in various claims and legal proceedings which arise in the normal course of our business. Such matters are subject to many uncertainties and outcomes that are not predictable. However, based on the information available to us, we do not believe any such other proceedings will have a material adverse effect on our business, results of operations, financial position, or liquidity. Conclusion We believe there are no other items that will have a material adverse impact on the Company’s financial position or results of operations. Legal proceedings are subject to all of the risks and uncertainties of legal proceedings and there can be no assurance as to the probable result of any legal proceedings. The Company believes it has adequately accrued for the aforementioned contingent liabilities. If adverse outcomes were to occur, our financial position, results of operations and cash flows could be negatively affected materially for the period in which the adverse outcomes are known.

Note 9 - Share-based Payments

12 Months Ended

Dec. 31, 2017

Shareholders' Equity and Share-based Payments [Text Block]

Share-Based Payments

Employee Stock Option Plans

The Company’s share-based incentive plans offering stock options primarily consists of

two

plans. Under both plans,

one

new share is issued for each stock option exercised. The plans are described below.

The Company’s

1998

Incentive Plan (the

“1998

Plan”) was the Company’s primary plan through

November 2007.

Under this plan shares of common stock was made available for issuance to employees and directors. Through

December 1999,

1,066,000

options were granted that would cliff vest after

9.8

years; however, such vesting was accelerated for

637,089

of these options upon meeting certain earnings per share goals through the fiscal year ended

June 30, 2003.

Subsequent to

December 1999

and through

June 2002,

1,248,250

options were granted that would cliff vest after

6.0

years; however, such vesting was accelerated for

300,494

of these options upon meeting certain earnings per share goals through the fiscal year ended

June 30, 2005.

The Company’s

2007

Equity Incentive Plan (the

“2007

Plan”) was restated and approved by the shareholders on

December 12, 2016.

Provisions of the restated

2007

Plan include the granting of up to

2,000,000

incentive and non-qualified stock options, stock appreciation rights, restricted stock and restricted stock units. Options

may

be granted to employees, officers, non-employee directors and other service providers and

may

be granted upon such terms as the Compensation Committee of the Board of Directors determines in their sole discretion.

Of the options granted subsequent to

June 2002,

all vesting schedules are based on

-year vesting schedules, with either

one

third

one

fourth

vesting on the

first

anniversary and the remaining options vesting ratably over the remainder of the vesting term. Generally, directors and officers have

-year vesting schedules and all other employees have

-year vesting schedules. Additionally, in the event of a change in control or the occurrence of a corporate transaction, the Company’s Board of Directors has the authority to elect that all unvested options shall vest and become exercisable immediately prior to the event or closing of the transaction. All options outstanding as of

December 31, 2017

had contractual lives of

ten

years.

Under the

1998

Plan,

2,500,000

shares were authorized for grant. As of

December 31, 2017,

there were

options outstanding under the

1998

Plan.

As of

December 31, 2017,

there were

764,430

options outstanding under the

2007

Plan. As of

December 31, 2017,

the

2007

Plan had

774,456

authorized unissued options, while there were

options remaining that could be granted under the

1998

Plan.

The Company uses judgment in determining the fair value of the share-based payments on the date of grant using an option-pricing model with assumptions regarding a number of highly complex and subjective variables. These variables include, but are

not

limited to, the risk-free interest rate of the awards, the expected life of the awards, the expected volatility over the term of the awards, and the expected dividends of the awards. The Company uses the Black-Scholes option pricing model to determine the fair value of share-based payments granted under the guidelines of ASC Topic

718.

In applying the Black-Scholes methodology to the options granted, the Company used the following assumptions:

	Year ended December 31,
	2017			2016			2015
Risk-free interest rate, average		2.21	%		1.52	%		2.00	%
Expected option life, average (in years)		7.9			6.1			6.1
Expected price volatility, average		40.71	%		43.75	%		44.30	%
Expected dividend yield		2.83	%		1.71	%		1.10	%

The risk-free interest rate is determined using the U.S. Treasury rate in effect as of the date of the grant, based on the expected life of the stock option. The expected life of the stock option is determined using historical data.

The expected price volatility is determined using a weighted average of daily historical volatility of the Company’s stock price over the corresponding expected option life.

Under guidelines of ASC Topic

718,

the Company recognizes the associated compensation cost for only those awards expected to vest on a straight-line basis over the underlying requisite service period. The Company estimated the forfeiture rates based on its historical experience and expectations about future forfeitures.

The following table shows the stock option activity:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
As of December 31, 2014		1,040,081		$	5.65		5.60	$	4,286
Granted		56,666			13.03
Reinstated		4,583			4.47
Expired and canceled		(1,000	)		3.42
Forfeited prior to vesting		(15,252	)		7.85
Exercised		(56,143	)		5.51
As of December 31, 2015		1,028,935		$	6.03		4.73	$	7,104
Granted		217,700			11.73
Expired and canceled		(4,186	)		12.03
Forfeited prior to vesting		(17,360	)		10.67
Exercised		(374,857	)		4.46
As of December 31, 2016		850,232		$	8.06		5.78	$	3,001
Granted		105,000			9.90
Expired and canceled		(3,144	)		10.29
Forfeited prior to vesting		(8,996	)		11.01
Exercised		(178,662	)		5.90
As of December 31, 2017		764,430		$	8.78		6.48	$	1,038
Vested and Expected to Vest at December 31, 2015		1,028,935		$	6.03		4.73	$	7,104
Vested at December 31, 2015		820,022		$	5.10		3.74	$	6,419
Vested and Expected to Vest at December 31, 2016		850,232		$	8.06		5.78	$	3,001
Vested at December 31, 2016		552,097		$	6.33		4.09	$	2,843
Vested and Expected to Vest at December 31, 2017		764,430		$	8.78		6.48	$	1,038
Vested at December 31, 2017		529,669		$	7.89		5.50	$	1,033

The weighted average per share fair value of options granted during the years ending

December 31, 2017,

2016

and

2015

was

$3.31,

$4.27,

and $

5.27

respectively. The total intrinsic value of options exercised during the years ended

December 31, 2017,

2016

and

2015

was

$646,

$2,824,

and

$404

respectively.

The total pre-tax compensation cost related to stock options recognized during the years ended

December 31, 2017,

2016,

and

2015

was

$665,

$667

and

$848,

respectively. Tax benefit from compensation cost related to stock options during the years ended

December 31, 2017,

2016

and

2015

was

$0,

$107

and

$41,

respectively. As of

December 31, 2017,

the total compensation cost related to stock options

not

yet recognized and before the effect of any forfeitures was

$829,

which is expected to be recognized over approximately the next

1.80

years on a straight-line basis.

Employee Stock Purchase Plan

During

2017,

the Company issued shares to employees under the Company’s

2016

Employee Stock Purchase Plan (the “ESPP”). The ESPP was approved by the Company’s shareholders on

December 12, 2016.

As of

December 31, 2017,

466,783

of the originally approved

500,000

shares were available for offerings under the ESPP. Offering periods under the ESPP commence on each

Jan 1

and

July 1,

and continue for a duration of

six

months. The ESPP is available to all employees who do

not

own, or are deemed to own, shares of stock making up an excess of

of the combined voting power of the Company, its parent or subsidiary.

During each offering period, each eligible employee

may

purchase shares under the ESPP after authorizing payroll deductions. Under the ESPP, each employee

may

purchase up to the lesser of

2,500

shares or

$25

of fair market value (based on the established purchase price) of the Company’s stock for each offering period. Unless the employee has previously withdrawn from the offering, his or her accumulated payroll deductions will be used to purchase common stock on the last business day of the period at a price equal to

85%

(or a

15%

discount) of the fair market value of the common stock on the

first

or last day of the offering period, whichever is lower.

Shares purchased and compensation expense associated with Employee Stock Purchase Plans were as follows:

	2017		2016		201 5
Shares purchased under ESPP plans		9,110		9,140		14,982
Plan compensation expense	$	13	$	18	$	31

Stock Repurchase Program and Cash Dividends

May 2012,

our Board of Directors authorized a stock repurchase program to purchase the Company’s common stock in the open market. A total of

272,767

shares costing

$2,598

were purchased under this program during the year ended

December 31, 2014.

The cost of shares purchased were recorded as a reduction to shareholders’ equity. On

December 2, 2016,

the Company announced the discontinuance of the stock repurchase program along with the initiation of a cash dividend plan.

March 9, 2016,

the Board of Directors of the Company authorized the repurchase of up to

$10

million of the Company’s outstanding shares of common stock under a new stock repurchase program. In connection with the repurchase authorization, the Company was authorized to complete the repurchase through open market transactions or through an accelerated share repurchase program, in each case to be executed at management’s discretion based on business and market conditions, stock price, trading restrictions, acquisition activity and other factors. The repurchase program

may

be suspended or discontinued at any time without prior notice. The transactions effectuated to date occurred in open market purchases.

March

2017,

the Board of Directors of the Company renewed and extended the repurchase program for up to an additional

$10

million of common stock over the next

twelve

months. In connection with the repurchase extension authorization, the Company was authorized to complete the repurchase through open market transactions or through an accelerated share repurchase program, in each case to be executed at management’s discretion based on business and market conditions, stock price, trading restrictions, acquisition activity and other factors. The repurchase program

may

be suspended or discontinued at any time without prior notice. The transactions effectuated to date occurred in open market purchases. This program terminated in

March 2018.

During the

twelve

months ended

December 31, 2017,

we acquired the following shares of common stock under the stock repurchase program authorized by the Board of Directors in

March 2016

and renewed and extended in

March 2017:

$ in thousands except per share price	Total Number of Shares Purchased (a)		Average Price Paid per Share (b)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (c)		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs ($ thousands) (d)

January 1 to March 31		78,956	$	11.75		78,956	$	9.9
April 1 to June 30		214,866		9.91		214,866		7.7
July 1 to September 30		139,570		7.84		139,570		6.6
October 1 to December 31		118,544		8.18		118,544		5.7
Total		551,936	$	9.28		551,936

From

March 11, 2016

March 17, 2016,

the Company offered to repurchase eligible vested options to purchase shares under the

1998

Plan and the

2007

Plan from employees and directors. The Company repurchased delivered options at a repurchase price equal to the difference between the closing market price on the date of the employee’s communication of accepting the repurchase offer and the exercise price of such employee’s delivered options, subject to applicable withholding taxes and charges. The Company repurchased

225,542

stock options from employees and directors at an average purchase price of

$7.77.

Note 10 - Significant Customers

12 Months Ended

Dec. 31, 2017

Concentration Risk Disclosure [Text Block]

10.

Significant Customers

Sales to significant customers that represented more than

percent of total revenues are as follows:

	Year ended December 31,
	2017			2016			2015
Customer A		16.1	%		16.3	%		14.2	%
Customer B		-	%*		-	%*		10.4	%
Total		16.1	%		16.3	%		24.6	%

* Sales did

not

exceed

10%

of the revenue.

The following table summarizes the percentage of total gross accounts receivable from significant customers:

	As of December 31,
	2017			2016
Customer A		20.3	%		13.4	%
Customer B		11.0	%		11.7	%
Total		31.3	%		25.1	%

These customers facilitate product sales to a large number of end-users,

none

of which is known to account for more than

percent of the Company’s revenue from product sales. Nevertheless, the loss of

one

or more of these customers could reduce revenue and have a material adverse effect on the Company’s business and results of operations.

Note 11 - Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Text Block]

11.

Fair Value Measurements

The fair value of the Company’s financial instruments reflects the amounts that the Company estimates it will receive in connection with the sale of an asset or pay in connection with the transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value hierarchy prioritizes the use of inputs used in valuation techniques into the following

three

levels:

Level

- Quoted prices in active markets for identical assets and liabilities.

Level

- Observable inputs other than quoted prices in active markets for identical assets and liabilities; quoted prices in markets that are

not

active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. This category generally includes U.S. Government and agency securities; municipal securities; mutual funds and securities sold and

not

yet settled.

Level

- Unobservable inputs.

The substantial majority of the Company’s financial instruments are valued using quoted prices in active markets or based on other observable inputs. The following tables set forth the fair value of the financial instruments re-measured by the Company as of

December 31, 2017

and

2016:

	Level 1		Level 2		Level 3		Total
December 31, 2017
Corporate bonds and notes	$	—	$	8,428	$	—	$	8,428
Municipal bonds		—		4,610		—		4,610
Total	$	—	$	13,038	$	—	$	13,038
December 31, 2016
Corporate bonds and notes	$	—	$	19,970	$	—	$	19,970
Municipal bonds		—		6,425		—		6,425
Total	$	—	$	26,395	$	—	$	26,395

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Note 12 - Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Text Block]

12.

Income Taxes

Consolidated income before taxes for domestic and foreign operations consisted of the following:

	Year ended December 31,
	2017			2016			2015
Domestic	$	(12,630	)	$	6,332		$	13,295
Foreign		(3,263	)		(2,454	)		(2,744	)
Total	$	(15,893	)	$	3,878		$	10,551

The Company’s (provision) for income taxes consisted of the following:

	Year ended December 31,
	2017			2016			201 5
Current:
Federal	$	577		$	(593	)	$	(3,386	)
State		(66	)		63			(344	)
Foreign		(682	)		(37	)		-
Total current		(171	)		(567	)		(3,730	)
Deferred:
Federal		1,497			(633	)		(220	)
State		480			(17	)		(10	)
Foreign		748			115			470
Total		2,725			(535	)		240
Change in valuation allowance		(833	)		(332	)		(285	)
Total deferred		1,892			(867	)		(45	)
Benefit/(provision) for income taxes	$	1,721		$	(1,434	)	$	(3,775	)

The income tax benefit (provision) differs from that computed at the federal statutory corporate income tax rate as follows:

	Year ended December 31,
	2017			2016			2015
Tax benefit (provision) at federal statutory rate	$	5,403		$	(1,318	)	$	(3,587	)
State income tax benefit (provision), net of federal benefit		439			(148	)		(408	)
Research and development tax credits		411			423			456
Subpart F inclusion		(370	)		-			-
Foreign earnings or losses taxed at different rates		(540	)		(292	)		(231	)
Tax rate change		(3,161	)		-			-
Other		372			233			280
Change in valuation allowance		(833	)		(332	)		(285	)
Tax benefit (provision)	$	1,721		$	(1,434	)	$	(3,775	)

The tax effects of significant temporary differences representing net deferred tax assets and liabilities consisted of the following:

	2017			2016
Deferred revenue	$	738		$	845
Basis difference in intangible assets		3,403			(56	)
Inventory reserve		2,089			2,650
Net operating loss carryforwards		1,627			1,391
Research and development tax credits		163			88
Accrued expenses		75			92
Stock-based compensation		327			584
Allowance for sales returns and doubtful accounts		119			70
Difference in property and equipment basis		(212	)		(350	)
Other		438			743
Total net deferred income tax asset		8,767			6,057
Less: Valuation allowance		(2,236	)		(1,403	)
Net deferred income tax asset (liability)	$	6,531		$	4,654

The Company has

not

provided for U.S. deferred income taxes or foreign withholding taxes on undistributed earnings of its non-U.S. subsidiaries since these earnings are intended to be reinvested indefinitely, in accordance with guidelines contained in ASC Topic

740,

Accounting for Income Taxes

. It is

not

practical to estimate the amount of additional taxes that might be payable on such undistributed earnings.

In accordance with ASC Topic

740,

the Company analyzed its valuation allowance at

December 31, 2017

and determined that, based upon available evidence, it is more likely than

not

that certain of its deferred tax assets

may

not

be realized and, as such, has established a valuation allowance against certain deferred tax assets. These deferred tax assets include foreign net operating loss carryforwards, foreign intangible assets, state R&D tax credit carryforwards, and capital loss carryforwards.

The Company has federal net operating loss (“NOL”) carryforwards of approximately

$692

(pre-tax), and Spain NOL carryforwards of approximately

$5,805.

The federal NOL carryforwards will begin to expire in

2029.

The Spain NOL carryforward does

not

expire.

Effective

July 1, 2007,

the Company adopted the accounting standards related to uncertain tax positions. This standard requires that tax positions be assessed using a

two

-step process. A tax position is recognized if it meets a “more likely than

not”

threshold, and is measured at the largest amount of benefit that is greater than

percent likely of being realized. Uncertain tax positions must be reviewed at each balance sheet date. Liabilities recorded as a result of this analysis must generally be recorded separately from any current or deferred income tax accounts.

The total amount of unrecognized tax benefits at

December 31, 2017

and

2016,

that would favorably impact our effective tax rate if recognized was

$647

and

$588,

respectively. As of

December 31, 2017

and

2016,

we accrued

$14

and

$87,

respectively, in interest and penalties related to unrecognized tax benefits. We account for interest expense and penalties for unrecognized tax benefits as part of our income tax provision.

Although we believe our estimates are reasonable, we can make

assurance that the final tax outcome of these matters will

not

be different from that which we have reflected in our historical income tax provisions and accruals. Such difference could have a material impact on our income tax provision and operating results in the period in which we make such determination.

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows:

	Year ended December 31,
	2017			2016
Balance - beginning of year	$	1,189		$	1,126
Additions based on tax positions related to the current year		67			16
Additions for tax positions of prior years		520			47
Reductions for tax positions of prior years		-			-
Settlements		(165	)		-
Lapse in statutes of limitations		(959	)		-
Uncertain tax positions, ending balance	$	652		$	1,189

The Company’s U.S. federal income tax returns for

2014

through

2017

are subject to examination. The Company also files in various state and foreign jurisdictions. With few exceptions, the Company is

longer subject to federal, state, or non-U.S. income tax examinations by tax authorities for years prior to

2014.

The Company completed its audit by the Internal Revenue Service (“IRS”) for its

2012

and

2013

tax returns in

2017.

As a result of the audit by the IRS, there were

material adjustments made to the Company’s tax return.

The Inland Revenue Department of Hong Kong, a Special Administrative Region (the “IRD”), commenced an examination of the Company’s Hong Kong profits tax returns for

2009

through

2011

in the

fourth

quarter of

2012,

which was completed subsequent to

December 31, 2017.

As a result of the audit, there were

material changes to the Company’s financial position. During the next

twelve

months, it is reasonably possible that the amount of the Company’s unrecognized income tax benefits could change significantly. These changes could be the result of our ongoing tax audits or the settlement of outstanding audit issues. However, due to the issues being examined, at the current time, an estimate of the range of reasonably possible outcomes cannot be made, beyond amounts currently accrued.

Note 13 - Geographic Sales Information

12 Months Ended

Dec. 31, 2017

Segment Reporting Disclosure [Text Block]

13.

Geographic Sales Information

The United States was the only country to contribute more than

percent of total revenues in each fiscal year. The Company’s revenues are substantially denominated in U.S. dollars and are summarized geographically as follows:

	Year ended December 31,
	2017		2016		201 5
United States	$	24,569	$	31,838	$	39,563
All other countries		17,235		16,799		18,233
Total	$	41,804	$	48,637	$	57,796

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Fiscal Period, Policy [Policy Text Block]

Fiscal Year

– This report on Form

-K includes consolidated balance sheets for the years ended

December 31, 2017

and

2016

and the related consolidated statements of operations and comprehensive income/(loss), cash flows, and shareholders’ equity for each of the years

2017,

2016

and

2015.

Consolidation, Policy [Policy Text Block]

Consolidation

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration Risk

– We depend on an outsourced manufacturing strategy for our products. We outsource the manufacture of all of our products (except digital signage products) to

third

may

second

source of manufacturing for a portion of our products.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash Equivalents

– The Company considers all highly-liquid investments with a maturity of

three

months or less, when purchased, to be cash equivalents. The Company places its temporary cash investments with high-quality financial institutions. At times, such investments

may

be in excess of the Federal Deposit Insurance Corporation insurance limits.

Marketable Securities, Policy [Policy Text Block]

Marketable Securities -

not

other-than-temporary impairments recognized during the years ended

December 31, 2017,

2016

and

2015.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

Accounts Receivable

– Accounts receivable are recorded at the invoiced amount. Generally, credit is granted to customers on a short-term basis without requiring collateral, and as such, these accounts receivable, do

not

bear interest, although a finance charge

may

first

not

probable. If the assumptions that are used to determine the allowance for doubtful accounts change , the Company

may

have to provide for a greater level of expense in future periods or reverse amounts provided in prior periods.

The Company’s allowance for doubtful accounts activity for the years ended as follows:

	Year Ended December 31,
	2017			2016			201 5
Balance at beginning of the year	$	187		$	54		$	58
Allowance increase (decrease)		287			148			36
Write offs , net of recoveries		(2	)		(15	)		(40	)
Balance at end of the year	$	472		$	187		$	54

Inventory, Policy [Policy Text Block]

Inventories

– Inventories are valued at the lower of cost or market, with cost computed on a

first

-in,

first

not

in excess of estimated realizable value. Consideration is given to obsolescence, excessive levels, deterioration, direct selling expenses, and other factors in evaluating net realizable value.

Distributor channel inventories include products that have been delivered to customers for which revenue recognition criteria have

not

been met.

$76

and

$21,

as of

December 31, 2017

and

2016,

respectively.

The inventory consists of current inventory of

$14,415

and long-term inventory of

$8,708.

Long term inventory represents inventory held in excess of our current (next

months) requirements based on our recent sales and forecasted level of sales.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

two

ten

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill and Intangible Assets –

three

ten

not

amortized.

Impairment of Goodwill -

350,

Intangibles – Goodwill and Other

the Company performs impairment tests of goodwill on an annual basis in the

fourth

fiscal quarter, or sooner if a triggering event occurs suggesting possible impairment of the values of these assets.

We assess the recoverability of our

one

reporting unit’s carrying value of goodwill by making a qualitative or quantitative assessment. If we begin with a qualitative assessment and are able to support the conclusion that it is

not

more likely than

not

that the fair value of the Company is less than its carrying value, we are

not

required to perform the

two

-step impairment test. Otherwise, using the two−step approach is required (See

Note

– Business Combinations, Goodwill and

Intangibles

). ClearOne and all of its subsidiaries are considered as

one

reporting unit for this purpose.

In the

first

not

impaired and

further review is required. However, if the fair value of the reporting unit is less than its carrying value, we perform the

second

step of the goodwill impairment test to determine the amount of the impairment charge, if any.

The

second

During the

third

quarter ended

September 30, 2017,

we recorded

$12,724,

or the entire value of goodwill, as an impairment charge.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Long-Lived Assets -

may

not

During the

twelve

months ended

December 31, 2017

we recorded

$769

as a charge for impairment of an intangible asset consisting of customer relationships.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

180

days for a total value generally

not

exceeding

15%

of the distributor’s or reseller’s net purchases during the preceding quarter. The distributor or reseller is, however, required to place a new purchase order for an amount

not

Revenue from product sales to distributors is

not

reporting the channel inventory, the revenue and associated cost of goods sold are deferred until the Company receives payment for the product sales made to such distributors or channel partners.

The amount of deferred cost of goods sold is included in distributor channel inventories.

The details of deferred revenue and associated cost of goods sold and gross profit are as follows:

	As of December 31,
	2017		2016
Deferred revenue	$	4,635	$	3,882
Deferred cost of goods sold		1,555		1,530
Deferred gross profit	$	3,080	$	2,352

The Company provides, at its discretion, advance replacement units to end-users on defective units of certain products under warranty. Since the purpose of these units is

not

Sales and Similar Taxes -

Taxes collected from customers and remitted to government authorities are reported on a net basis and thus are excluded from revenues.

Shipping and Handling Cost, Policy [Policy Text Block]

Shipping and Handling Costs –

Shipping and handling billed to customers is recorded as revenue. Shipping and handling costs are included in cost of goods sold.

Standard Product Warranty, Policy [Policy Text Block]

Warranty Costs

The details of changes in the Company’s warranty accrual are as follows:

	Year Ended December 31,
	2017			2016			201 5
Balance at the beginning of year	$	246		$	288		$	331
Accruals/additions		399			361			442
Usage/claims		(400	)		(403	)		(485	)
Balance at end of year	$	245		$	246		$	288

Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block]

Advertising

– The Company expenses advertising costs as incurred. Advertising costs consist of trade shows, magazine advertisements, and other forms of media. Advertising expenses for the years ended

December 31, 2017,

2016

and

2015

totaled

$1,079,

$836,

and

$728,

respectively, and are included under the caption “Sales and Marketing”.

Research and Development Expense, Policy [Policy Text Block]

Research and Product Development Costs

– The Company expenses research and product development costs as incurred.

Income Tax, Policy [Policy Text Block]

Income Taxes

not

that some or all of the deferred tax assets

may

not

December 31, 2017

and

2016,

the Company had a valuation allowance of

$2,236

and

$1,404,

respectively against foreign net operating losses, foreign intangible assets, capital losses carryforwards, and state research and development credits.

December 22, 2017,

the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act, which is generally effective for tax years beginning on

January 1, 2018,

makes broad and complex changes to the U.S. tax code, including, but

not

limited to, (

) reducing the U.S. federal corporate tax rate from

percent to

percent; (

) eliminating the corporate alternative minimum tax (AMT); (

) bonus depreciation that will allow for full expensing of qualified property; (

) creating a new limitation on deductible interest expense; (

) the repeal of the domestic production activity deduction; (

) the creation of the base erosion anti-abuse tax (BEAT), a new minimum tax; (

) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries and imposing a

one

-time repatriation tax on deemed repatriated earnings and profits of U.S.-owned foreign subsidiaries (the Transition Tax); (

) a new provision designed to tax global intangible low-taxed income (GILTI), which allows for the possibility of using foreign tax credits (FTCs) and a deduction of up to

percent to offset the income tax liability (subject to some limitations); and (

) changing rules related to uses and limitation of net operating loss carryforwards created in tax years beginning after

December 31, 2017.

Shortly after enactment, the Securities and Exchange Commission issued Staff Accounting Bulletin

No.

118

("SAB

118"

) which provided US GAAP guidance on the accounting for the Act's impact at

December 31, 2017.

A reporting entity

may

recognize provisional amounts, where the necessary information is

not

may

be adjusted within the

-month measurement period provided for under SAB

118.

The Transition Tax is based on the Company's post-

1986

not

result in additional U.S. tax.

The reduction in the corporate tax rate to

percent due to the Tax Act is effective

January 1, 2018.

Consequently, the Company has recorded a decrease related to the net deferred tax assets of approximately

$3.3

million with a corresponding net adjustment to deferred income tax expense of approximately

$3.3

million for the year ended

December 31, 2017.

The impact of the Tax Act

may

differ from amounts currently recorded, possibly materially, during the

-month measurement period due to, among other things, further refinement of the Company's calculations, changes in interpretations and assumptions the Company has made, guidance that

may

be issued and actions the Company

may

take as a result of the Tax Act.

The Company follows the provisions contained in ASC Topic

740,

Income Taxes.

The Company recognizes the tax benefit from an uncertain tax position only if it is at least more likely than

not

that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.

Earnings Per Share, Policy [Policy Text Block]

Earnings Per Share

– The following table sets forth the computation of basic and diluted earnings per common share:

	Year Ended December 31,
	2017			2016		201 5
Numerator:
Net income/(loss)	$	(14,172	)	$	2,444	$	6,776
Denominator:
Basic weighted average shares		8,576,588			9,021,980		9,127,385
Dilutive common stock equivalents using treasury stock method		-			284,054		467,274
Diluted weighted average shares		8,576,588			9,306,034		9,594,659

Basic earnings per common share:	$	(1.65	)	$	0.27	$	0.74
Diluted earnings per common share:	$	(1.65	)	$	0.26	$	0.71

Weighted average options outstanding		815,870			885,163		1,053,785
Anti-dilutive options not included in the computation		815,870			323,644		177,125

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Share-Based Payment

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements -

Recent Accounting Standards

Not

Yet Effective as of Fiscal Year End.

May 2014,

the FASB issued ASU

2014

09,

Revenue from Contracts with Customers (Topic

606

January 1, 2018.

The Company expects to adopt this accounting standard update on a modified retrospective basis in the

first

quarter of fiscal

2018,

and it is currently evaluating the impact of this accounting standard update on the consolidated financial statements.

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

December 15, 2018

and interim periods within fiscal years beginning after

December 15, 2018.

Early application will be permitted for all organizations. The Company has

not

yet selected a transition method and is currently evaluating the effect that the updated standard will have on the consolidated financial statements.

March 2016,

the FASB issued ASU

No.

2016

09,

2016

was effective for the Company on

January 1, 2017.

As a result of the adoption of ASU

2016

09,

August 2016,

the FASB issued ASU

No.

2016

15,

Classification of Certain Cash Receipts and Cash Payments, which addresses

eight

specific cash flow issues with the objective of reducing the existing diversity in practice. ASU

2016

is effective for the Company beginning

January 1, 2018

and the Company is currently evaluating the impact that ASU

2016

will have on the consolidated financial statements.

May 2017,

the FASB issued ASU

No.

2017

09,

Compensation—Stock Compensation (Topic

718

): Scope of Modification Accounting. The new guidance provides clarity and reduces both (

) diversity in practice and (

) cost and complexity when applying the guidance in Topic

718,

Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. The accounting standard update will be effective for The Company beginning

January 1, 2018

on a prospective basis, and early adoption is permitted. The Company has

not

yet selected a transition method and is currently evaluating the effect that the updated standard will have on the consolidated financial statements.

Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	Year Ended December 31,
	2017			2016			201 5
Balance at beginning of the year	$	187		$	54		$	58
Allowance increase (decrease)		287			148			36
Write offs , net of recoveries		(2	)		(15	)		(40	)
Balance at end of the year	$	472		$	187		$	54

Schedule of Deferred Revenue and Associated Cost of Goods Sold and Gross Profit [Table Text Block]

	As of December 31,
	2017		2016
Deferred revenue	$	4,635	$	3,882
Deferred cost of goods sold		1,555		1,530
Deferred gross profit	$	3,080	$	2,352

Schedule of Product Warranty Liability [Table Text Block]

	Year Ended December 31,
	2017			2016			201 5
Balance at the beginning of year	$	246		$	288		$	331
Accruals/additions		399			361			442
Usage/claims		(400	)		(403	)		(485	)
Balance at end of year	$	245		$	246		$	288

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Year Ended December 31,
	2017			2016		201 5
Numerator:
Net income/(loss)	$	(14,172	)	$	2,444	$	6,776
Denominator:
Basic weighted average shares		8,576,588			9,021,980		9,127,385
Dilutive common stock equivalents using treasury stock method		-			284,054		467,274
Diluted weighted average shares		8,576,588			9,306,034		9,594,659

Basic earnings per common share:	$	(1.65	)	$	0.27	$	0.74
Diluted earnings per common share:	$	(1.65	)	$	0.26	$	0.71

Weighted average options outstanding		815,870			885,163		1,053,785
Anti-dilutive options not included in the computation		815,870			323,644		177,125

Note 2 - Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

	Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
December 31, 2017
Available-for-sale securities:
Corporate bonds and notes	$	8,458	$	19	$	(49	)	$	8,428
Municipal bonds		4,637		1		(28	)		4,610
Total available-for-sale securities	$	13,095	$	20	$	(77	)	$	13,038

December 31, 2016
Available-for-sale securities:
Corporate bonds and notes	$	20,028	$	64	$	(122	)	$	19,970
Municipal bonds		6,463		6		(44	)		6,425
Total available-for-sale securities	$	26,491	$	70	$	(166	)	$	26,395

Available-for-sale Securities, Debt Maturities [Table Text Block]

	Amortized		Estimated
	cost		fair value

Due within one year	$	2,688	$	2,688
Due after one year through five years		10,408		10,350
Total available-for-sale securities	$	13,096	$	13,038

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

	Less than 12 months					More than 12 months					Total
	Estimated fair value		Gross unrealized holding losses			Estimated fair value		Gross unrealized holding losses			Estimated fair value		Gross unrealized holding losses
As of December 31, 2017
Corporate bonds and notes	$	3,799	$	(20	)		2,125	$	(30	)	$	5,924	$	(50	)
Municipal bonds		3,341		(18	)		657		(9	)		3,998		(27	)
	$	7,140	$	(38	)	$	2,782	$	(39	)	$	9,922	$	(77	)

Note 3 - Business Combinations, Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

	Estimated useful lives				As of December 31,
	(in years)				2017			2016
Tradename		5	to	7	$	555		$	555
Patents and technological know-how			10			8,578			6,010
Proprietary software		3	to	15		2,981			4,341
Other		3	to	5		323			324
Total intangible assets, gross						12,437			11,230
Accumulated amortization						(5,894	)		(5,553	)
Total intangible assets, net					$	6,543		$	5,677

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Years ending December 31,
2018	$	935
2019		831
2020		652
2021		652
2022		652
Thereafter		2,821
Total	$	6,543

Note 9 - Share-based Payments (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Year ended December 31,
	2017			2016			2015
Risk-free interest rate, average		2.21	%		1.52	%		2.00	%
Expected option life, average (in years)		7.9			6.1			6.1
Expected price volatility, average		40.71	%		43.75	%		44.30	%
Expected dividend yield		2.83	%		1.71	%		1.10	%

Share-based Compensation, Stock Options, Activity [Table Text Block]

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
As of December 31, 2014		1,040,081		$	5.65		5.60	$	4,286
Granted		56,666			13.03
Reinstated		4,583			4.47
Expired and canceled		(1,000	)		3.42
Forfeited prior to vesting		(15,252	)		7.85
Exercised		(56,143	)		5.51
As of December 31, 2015		1,028,935		$	6.03		4.73	$	7,104
Granted		217,700			11.73
Expired and canceled		(4,186	)		12.03
Forfeited prior to vesting		(17,360	)		10.67
Exercised		(374,857	)		4.46
As of December 31, 2016		850,232		$	8.06		5.78	$	3,001
Granted		105,000			9.90
Expired and canceled		(3,144	)		10.29
Forfeited prior to vesting		(8,996	)		11.01
Exercised		(178,662	)		5.90
As of December 31, 2017		764,430		$	8.78		6.48	$	1,038
Vested and Expected to Vest at December 31, 2015		1,028,935		$	6.03		4.73	$	7,104
Vested at December 31, 2015		820,022		$	5.10		3.74	$	6,419
Vested and Expected to Vest at December 31, 2016		850,232		$	8.06		5.78	$	3,001
Vested at December 31, 2016		552,097		$	6.33		4.09	$	2,843
Vested and Expected to Vest at December 31, 2017		764,430		$	8.78		6.48	$	1,038
Vested at December 31, 2017		529,669		$	7.89		5.50	$	1,033

Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity [Table Text Block]

	2017		2016		201 5
Shares purchased under ESPP plans		9,110		9,140		14,982
Plan compensation expense	$	13	$	18	$	31

Class of Treasury Stock [Table Text Block]

$ in thousands except per share price	Total Number of Shares Purchased (a)		Average Price Paid per Share (b)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (c)		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs ($ thousands) (d)

January 1 to March 31		78,956	$	11.75		78,956	$	9.9
April 1 to June 30		214,866		9.91		214,866		7.7
July 1 to September 30		139,570		7.84		139,570		6.6
October 1 to December 31		118,544		8.18		118,544		5.7
Total		551,936	$	9.28		551,936

Note 10 - Significant Customers (Tables)

12 Months Ended

Dec. 31, 2017

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

	Year ended December 31,
	2017			2016			2015
Customer A		16.1	%		16.3	%		14.2	%
Customer B		-	%*		-	%*		10.4	%
Total		16.1	%		16.3	%		24.6	%

	As of December 31,
	2017			2016
Customer A		20.3	%		13.4	%
Customer B		11.0	%		11.7	%
Total		31.3	%		25.1	%

Note 11 - Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	Level 1		Level 2		Level 3		Total
December 31, 2017
Corporate bonds and notes	$	—	$	8,428	$	—	$	8,428
Municipal bonds		—		4,610		—		4,610
Total	$	—	$	13,038	$	—	$	13,038
December 31, 2016
Corporate bonds and notes	$	—	$	19,970	$	—	$	19,970
Municipal bonds		—		6,425		—		6,425
Total	$	—	$	26,395	$	—	$	26,395

Note 12 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

	Year ended December 31,
	2017			2016			2015
Domestic	$	(12,630	)	$	6,332		$	13,295
Foreign		(3,263	)		(2,454	)		(2,744	)
Total	$	(15,893	)	$	3,878		$	10,551

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year ended December 31,
	2017			2016			201 5
Current:
Federal	$	577		$	(593	)	$	(3,386	)
State		(66	)		63			(344	)
Foreign		(682	)		(37	)		-
Total current		(171	)		(567	)		(3,730	)
Deferred:
Federal		1,497			(633	)		(220	)
State		480			(17	)		(10	)
Foreign		748			115			470
Total		2,725			(535	)		240
Change in valuation allowance		(833	)		(332	)		(285	)
Total deferred		1,892			(867	)		(45	)
Benefit/(provision) for income taxes	$	1,721		$	(1,434	)	$	(3,775	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year ended December 31,
	2017			2016			2015
Tax benefit (provision) at federal statutory rate	$	5,403		$	(1,318	)	$	(3,587	)
State income tax benefit (provision), net of federal benefit		439			(148	)		(408	)
Research and development tax credits		411			423			456
Subpart F inclusion		(370	)		-			-
Foreign earnings or losses taxed at different rates		(540	)		(292	)		(231	)
Tax rate change		(3,161	)		-			-
Other		372			233			280
Change in valuation allowance		(833	)		(332	)		(285	)
Tax benefit (provision)	$	1,721		$	(1,434	)	$	(3,775	)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	2017			2016
Deferred revenue	$	738		$	845
Basis difference in intangible assets		3,403			(56	)
Inventory reserve		2,089			2,650
Net operating loss carryforwards		1,627			1,391
Research and development tax credits		163			88
Accrued expenses		75			92
Stock-based compensation		327			584
Allowance for sales returns and doubtful accounts		119			70
Difference in property and equipment basis		(212	)		(350	)
Other		438			743
Total net deferred income tax asset		8,767			6,057
Less: Valuation allowance		(2,236	)		(1,403	)
Net deferred income tax asset (liability)	$	6,531		$	4,654

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	Year ended December 31,
	2017			2016
Balance - beginning of year	$	1,189		$	1,126
Additions based on tax positions related to the current year		67			16
Additions for tax positions of prior years		520			47
Reductions for tax positions of prior years		-			-
Settlements		(165	)		-
Lapse in statutes of limitations		(959	)		-
Uncertain tax positions, ending balance	$	652		$	1,189

Note 13 - Geographic Sales Information (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]

	Year ended December 31,
	2017		2016		201 5
United States	$	24,569	$	31,838	$	39,563
All other countries		17,235		16,799		18,233
Total	$	41,804	$	48,637	$	57,796

Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities			$ 0	$ 0	$ 0
Inventory, Net			14,415	11,377
Inventory, Noncurrent			$ 8,708	1,664
Number of Reporting Units			1
Goodwill, Impairment Loss	$ 12,724		$ 12,724
Impairment of Intangible Assets, Finite-lived			$ 769
Product Return Policy, Number Of Days			180 days
Product Return Policy, Not to Exceed Net Purchases During Preceeding Quarter, Percent			15.00%
Advertising Expense			$ 1,079	836	$ 728
Deferred Tax Assets, Valuation Allowance			$ 2,236	1,404
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			35.00%
Increase (Decrease) of Net Deferred Tax Assets			$ (3,300)
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability			3,300
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		21.00%
Customer Relationships [Member]
Impairment of Intangible Assets, Finite-lived			$ 769
Minimum [Member]
Property, Plant and Equipment, Useful Life			2 years
Finite-Lived Intangible Asset, Useful Life			3 years
Maximum [Member]
Property, Plant and Equipment, Useful Life			10 years
Finite-Lived Intangible Asset, Useful Life			10 years
Advance Replacement Units [Member]
Inventory, Net			$ 76	$ 21

Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies - Allowance for Doubtful Accounts Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Balance at beginning of the year	$ 187	$ 54	$ 58
Allowance increase (decrease)	287	148	36
Write offs , net of recoveries	(2)	(15)	(40)
Balance at end of the year	$ 472	$ 187	$ 54

Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies - Deferred Revenue and Associated Costs of Goods Sold and Gross Profit (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred revenue	$ 4,635	$ 3,882
Deferred cost of goods sold	1,555	1,530
Deferred gross profit	$ 3,080	$ 2,352

Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies - Warranty Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Balance at the beginning of year	$ 246	$ 288	$ 331
Accruals/additions	399	361	442
Usage/claims	(400)	(403)	(485)
Balance at end of year	$ 245	$ 246	$ 288

Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net income/(loss)	$ (14,172)	$ 2,444	$ 6,776
Basic weighted average shares outstanding (in shares)	8,576,588	9,021,980	9,127,385
Dilutive common stock equivalents using treasury stock method (in shares)		284,054	467,274
Diluted weighted average shares outstanding (in shares)	8,576,588	9,306,034	9,594,659
Basic earnings per common share: (in dollars per share)	$ (1.65)	$ 0.27	$ 0.74
Diluted earnings per common share: (in dollars per share)	$ (1.65)	$ 0.26	$ 0.71
Weighted average options outstanding (in shares)	815,870	885,163	1,053,785
Anti-dilutive options not included in the computation (in shares)	815,870	323,644	177,125

Note 2 - Marketable Securities - Available-for-sale Securities by Major Security Type (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Amortized cost	$ 13,095	$ 26,491
Gross unrealized holding gains	20	70
Gross unrealized holding losses	(77)	(166)
Available-for-sale securities	13,038	26,395
Corporate Debt Securities [Member]
Amortized cost	8,458	20,028
Gross unrealized holding gains	19	64
Gross unrealized holding losses	(49)	(122)
Available-for-sale securities	8,428	19,970
US States and Political Subdivisions Debt Securities [Member]
Amortized cost	4,637	6,463
Gross unrealized holding gains	1	6
Gross unrealized holding losses	(28)	(44)
Available-for-sale securities	$ 4,610	$ 6,425

Note 2 - Marketable Securities - Maturities of Available-for-sale Securities (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Due within one year, amortized cost	$ 2,688
Due within one year, estimated fair value	2,688
Due after one year through five years, amortized cost	10,408
Due after one year through five years, estimated fair value	10,350
Total available-for-sale securities, amortized cost	13,096
Total available-for-sale securities, estimated fair value	$ 13,038

Note 2 - Marketable Securities - Available-for-sale Marketable Securities in Gross Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Estimated fair value, less than 12 months	$ 7,140
Gross unrealized holding losses, less than 12 months	(38)
Estimated fair value, more than 12 months	2,782
Gross unrealized holding losses, more than 12 months	(39)
Estimated fair value	9,922
Gross unrealized holding losses	(77)
Corporate Debt Securities [Member]
Estimated fair value, less than 12 months	3,799
Gross unrealized holding losses, less than 12 months	(20)
Estimated fair value, more than 12 months	2,125
Gross unrealized holding losses, more than 12 months	(30)
Estimated fair value	5,924
Gross unrealized holding losses	(50)
US States and Political Subdivisions Debt Securities [Member]
Estimated fair value, less than 12 months	3,341
Gross unrealized holding losses, less than 12 months	(18)
Estimated fair value, more than 12 months	657
Gross unrealized holding losses, more than 12 months	(9)
Estimated fair value	3,998
Gross unrealized holding losses	$ (27)

Note 3 - Business Combinations, Goodwill and Intangible Assets (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Goodwill, Period Increase (Decrease)			$ (12,724,000)
Goodwill		$ 0	12,724,000
Goodwill, Impairment Loss	$ 12,724,000	12,724,000
Amortization of Intangible Assets		$ 932,000	$ 1,121,000	$ 1,258,000

Note 3 - Business Combinations, Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Intangible assets, gross	$ 12,437	$ 11,230
Accumulated amortization	(5,894)	(5,553)
Total	$ 6,543	5,677
Minimum [Member]
Estimated useful lives (Year)	3 years
Maximum [Member]
Estimated useful lives (Year)	10 years
Trade Names [Member]
Intangible assets, gross	$ 555	555
Trade Names [Member] \| Minimum [Member]
Estimated useful lives (Year)	5 years
Trade Names [Member] \| Maximum [Member]
Estimated useful lives (Year)	7 years
Patents and Technological Know-how [Member]
Estimated useful lives (Year)	10 years
Intangible assets, gross	$ 8,578	6,010
Proprietary Software [Member]
Intangible assets, gross	$ 2,981	4,341
Proprietary Software [Member] \| Minimum [Member]
Estimated useful lives (Year)	3 years
Proprietary Software [Member] \| Maximum [Member]
Estimated useful lives (Year)	15 years
Other Intangible Assets [Member]
Intangible assets, gross	$ 323	$ 324
Other Intangible Assets [Member] \| Minimum [Member]
Estimated useful lives (Year)	3 years
Other Intangible Assets [Member] \| Maximum [Member]
Estimated useful lives (Year)	5 years

Note 3 - Business Combinations, Goodwill and Intangible Assets - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
2018	$ 935
2019	831
2020	652
2021	652
2022	652
Thereafter	2,821
Total	$ 6,543	$ 5,677

Note 4 - Inventories (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Distributor Channel Inventories	$ 1,555	$ 1,530
Inventory Write-down	$ 649	$ 653	$ 496

Note 4 - Inventories - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Raw materials	$ 197	$ 2,291
Finished goods	14,218	9,086
Total	14,415	11,377
Raw materials	2,682	599
Finished goods	6,026	1,065
Total	$ 8,708	$ 1,664

Note 5 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment, Gross	$ 9,150	$ 8,867
Accumulated Depreciation and Amortization	(7,601)	(7,354)
Property, Plant and Equipment, Net	1,549	1,513
Office Furniture and Equipment [Member]
Property, Plant and Equipment, Gross	4,904	4,835
Leasehold Improvements [Member]
Property, Plant and Equipment, Gross	1,509	1,495
Vehicles [Member]
Property, Plant and Equipment, Gross	160
Manufacturing and Test Equipment [Member]
Property, Plant and Equipment, Gross	$ 2,577	$ 2,537
Minimum [Member]
Property, Plant and Equipment, Useful Life (Year)	2 years
Minimum [Member] \| Office Furniture and Equipment [Member]
Property, Plant and Equipment, Useful Life (Year)	3 years
Minimum [Member] \| Leasehold Improvements [Member]
Property, Plant and Equipment, Useful Life (Year)	1 year
Minimum [Member] \| Vehicles [Member]
Property, Plant and Equipment, Useful Life (Year)	5 years
Minimum [Member] \| Manufacturing and Test Equipment [Member]
Property, Plant and Equipment, Useful Life (Year)	2 years
Maximum [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Maximum [Member] \| Office Furniture and Equipment [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Maximum [Member] \| Leasehold Improvements [Member]
Property, Plant and Equipment, Useful Life (Year)	6 years
Maximum [Member] \| Vehicles [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Maximum [Member] \| Manufacturing and Test Equipment [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years

Note 6 - Leases and Deferred Rent (Details Textual) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) ft²	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Operating Leases, Rent Expense \| $	$ 999	$ 1,099	$ 1,420
Amortization of Deferred Charges \| $	$ 44	$ 73	$ 95
Facility in Gainesville [Member]
Area of Real Estate Property	5,000
Lessee, Operating Lease, Renewal Term	10 years
Facility in Hod Hasharon [Member]
Area of Real Estate Property	4,700
Lessee, Operating Lease, Renewal Term	2 years
Facility in Salt Lake City [Member]
Area of Real Estate Property	31,000
Warehouse in Shenzhen, China [Member]
Area of Real Estate Property	10,700
Facility in Austin, Texas [Member[
Area of Real Estate Property	7,070
Warehouse in Salt Lake City, Utah [Member]
Area of Real Estate Property	40,000

Note 6 - Leases and Deferred Rent - Future Minimum Lease Payments (Details) $ in Thousands	Dec. 31, 2017 USD ($)
2018	$ 762
2019	412
2020	182
2021	187
2022	193
Thereafter	472
Total minimum lease payments	$ 2,208

Note 7 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accrued salaries and other compensation	$ 1,072	$ 1,098
Sales and marketing programs	435	319
Product warranty	245	246
Other accrued liabilities	91	231
Total	$ 1,843	$ 1,894

Note 8 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Long-term Purchase Commitment, Amount	$ 3,402
Unrecognized Tax Benefits	652	$ 1,189	$ 1,126
Other Accrued Liabilities, Noncurrent	927	152
Litigation for Intellectual Property Infringement [Member]
Litigation Settlement, Expense	408	$ 1,111
Litigation Settlement, Expense Capitalized	$ 2,289

Note 9 - Share-based Payments (Details Textual) - USD ($)		1 Months Ended	3 Months Ended				12 Months Ended						30 Months Ended
	Mar. 17, 2016	Dec. 31, 1999	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2005	Jun. 30, 2003	Jun. 30, 2002	Mar. 01, 2017	Dec. 12, 2016	Mar. 09, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross							105,000	217,700	56,666
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period							10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			764,430				764,430	850,232	1,028,935	1,040,081
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value							$ 3.31	$ 4.27	$ 5.27
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value							$ 646,000	$ 2,824,000	$ 404,000
Allocated Share-based Compensation Expense							665,000	667,000	848,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense							0	107,000	41,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options			$ 829,000				$ 829,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition							1 year 292 days
Stock Issued During Period, Value, Employee Stock Purchase Plan							$ 66,000	87,000	$ 155,000
Stock Repurchased During Period, Shares			118,544	139,570	214,866	78,956	551,936			272,767
Stock Repurchased During Period, Value							$ 5,119,000	$ 6,086,000		$ 2,598,000
Stock Repurchase Program, Authorized Amount																$ 10,000,000
Stock Repurchase Program, Additional Authorized Amount														$ 10,000,000
Directors and Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period							3 years
Other Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period							4 years
The 1998 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		1,066,000											1,248,250
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		9 years 292 days											6 years
Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number											300,494	637,089
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			2,500,000				2,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			0				0
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares, Authorized and Unissued			0				0
The 2007 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized															2,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			764,430				764,430
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares, Authorized and Unissued			774,456				774,456
The 2007 Equity Incentive Plan [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period							3 years
The 2007 Equity Incentive Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period							4 years
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			500,000				500,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			466,783				466,783
ESPP Participation Criteria, Maximum Percentage of Voting Power			5.00%				5.00%
Stock Issued During Period, Shares, Employee Stock Purchase Plans							9,110	9,140	14,982
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent							85.00%
Share-based Compensation Arrangement by Share-based Payment Award, Discount on Purchase Price of Common Stock, Percent							15.00%
Employee Stock Purchase Plan [Member] \| Maximum [Member]
Stock Issued During Period, Shares, Employee Stock Purchase Plans							2,500
Stock Issued During Period, Value, Employee Stock Purchase Plan							$ 25,000
The 1998 Incentive Plan and 2007 Equity Incentive Plan [Member] \| Employees and Directors [Member]
Stock Options Repurchased During Period, Shares	225,542
Stock Options Repurchase Program, Average Purchase Price Per Share	$ 7.77

Note 9 - Share-based Payments - Black-scholes Assumptions (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Risk-free interest rate, average	2.21%	1.52%	2.00%
Expected option life, average (in years) (Year)	7 years 328 days	6 years 36 days	6 years 36 days
Expected price volatility, average	40.71%	43.75%	44.30%
Expected dividend yield	2.83%	1.71%	1.10%

Note 9 - Share-based Payments - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of shares, outstanding at beginning of period (in shares)	850,232	1,028,935	1,040,081
Weighted average exercise price, beginning of period (in dollars per share)	$ 8.06	$ 6.03	$ 5.65
Weighted average remaining contractual term (Year)	6 years 175 days	5 years 284 days	4 years 266 days	5 years 219 days
Aggregate intrinsic value	$ 1,038	$ 3,001	$ 7,104	$ 4,286
Number of shares, granted (in shares)	105,000	217,700	56,666
Weighted average exercise price, granted (in dollars per share)	$ 9.90	$ 11.73	$ 13.03
Number of shares, reinstated (in shares)			4,583
Weighted average exercise price, reinstated (in dollars per share)			$ 4.47
Number of shares, expired and canceled (in shares)	(3,144)	(4,186)	(1,000)
Weighted average exercise price, expired and canceled (in dollars per share)	$ 10.29	$ 12.03	$ 3.42
Number of shares, forfeited prior to vesting (in shares)	(8,996)	(17,360)	(15,252)
Weighted average exercise price, forfeited prior to vesting (in dollars per share)	$ 11.01	$ 10.67	$ 7.85
Number of shares, exercised (in shares)	(178,662)	(374,857)	(56,143)
Weighted average exercise price, exercised (in dollars per share)	$ 5.90	$ 4.46	$ 5.51
Number of shares, outstanding at end of period (in shares)	764,430	850,232	1,028,935	1,040,081
Weighted average exercise price, end of period (in dollars per share)	$ 8.78	$ 8.06	$ 6.03	$ 5.65
Number of shares, vested and expected to vest (in shares)	764,430	850,232	1,028,935
Weighted average exercise price, vested and expected to vest (in dollars per share)	$ 8.78	$ 8.06	$ 6.03
Weighted average remaining contractual term, vested and expected to vest (Year)	6 years 175 days	5 years 284 days	4 years 266 days
Aggregate intrinsic value, vested and expected to vest	$ 1,038	$ 3,001	$ 7,104
Number of shares, vested at end of period (in shares)	529,669	552,097	820,022
Weighted average exercise price, vested at end of period (in dollars per share)	$ 7.89	$ 6.33	$ 5.10
Weighted average remaining contractual term, vested (Year)	5 years 182 days	4 years 32 days	3 years 270 days
Aggregate intrinsic value, vested	$ 1,033	$ 2,843	$ 6,419

Note 9 - Share-based Payments - Employee Stock Purchase Plans (Details) - Employee Stock Purchase Plan [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Shares purchased under ESPP plans (in shares)	9,110	9,140	14,982
Plan compensation expense	$ 13	$ 18	$ 31

Note 9 - Share-based Payments - Stock Repurchase Program (Details) - USD ($)	3 Months Ended				12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2014
Total number of shares purchased (in shares)	118,544	139,570	214,866	78,956	551,936	272,767
Average price paid per share (in dollars per share)	$ 8.18	$ 7.84	$ 9.91	$ 11.75	$ 9.28
Approximate dollar value of shares that may yet be purchased under the plans or programs	$ 5,700	$ 6,600	$ 7,700	$ 9,900	$ 5,700
Publicly Announced Stock Repurchase Program [Member]
Total number of shares purchased (in shares)	118,544	139,570	214,866	78,956	551,936

Note 10 - Significant Customers - Concentration Risk by Risk Factor of Sales Revenue and Accounts Receivable (Details) - Customer Concentration Risk [Member]

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Sales Revenue, Net [Member]

Sales Revenue, Net [Member] | Customer A [Member]

16.10%

16.30%

24.60%

Sales Revenue, Net [Member] | Customer B [Member]

16.10%

16.30%

14.20%

Accounts Receivable [Member]

^[1]

10.40%

Accounts Receivable [Member] | Customer A [Member]

31.30%

25.10%

Accounts Receivable [Member] | Customer B [Member]

20.30%

13.40%