Selling, general and administrative

^[1]

$ 106,795

$ 87,190

Cost of products sold

75,630

61,607

Gross profit

31,165

25,583

Operating expenses:

Research and development

6,805

4,508

16,992

14,520

Total operating expenses

23,797

19,028

Operating income

7,368

6,555

Other expense (income):

Interest and financing expense

539

Miscellaneous

(121)

Income Before Income Taxes

6,771

6,613

Income tax provision (benefit)

1,457

(18,386)

Net income

5,314

24,999

Net income attributable to non-controlling interest

109

Net income attributable to Ultralife Corporation

5,205

24,930

Other comprehensive income (loss):

Foreign currency translation adjustments

255

(1,175)

Comprehensive income attributable to Ultralife Corporation

$ 5,460

$ 23,755

Net income per share attributable to Ultralife Corporation common shareholders – Basic: (in dollars per share)

$ 0.33

$ 1.57

Net income per share attributable to Ultralife Corporation common shareholders – Diluted: (in dollars per share)

$ 0.32

$ 1.53

Weighted average shares outstanding – Basic (in shares)

15,783

15,882

Weighted average shares outstanding – Diluted (in shares)

16,179

16,347

[1]	Sales classified to U.S. include shipments to U.S.-based prime contractors which in some cases may serve non-U.S. projects

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]	Total
Balance (in shares) at Dec. 31, 2017	19,670,928
Balance at Dec. 31, 2017	$ 1,966	$ 180,211	$ (1,611)	$ (82,894)	$ (18,469)	$ (154)	$ 79,049
Cumulative effect adjustment at Dec. 31, 2017				(71)			(71)
Share repurchases					(742)		$ (742)
Stock option exercises (in shares)	382,407						422,793
Stock option exercises	$ 39	1,529					$ 1,568
Tax withholdings on option exercises					(55)		(55)
Stock-based compensation -stock options		817					817
Stock-based compensation -restricted stock		73					73
Foreign currency translation adjustments			(1,175)				(1,175)
Net income				24,930		69	$ 24,999
Balance (in shares) at Dec. 31, 2018	20,053,335						15,920,585
Balance at Dec. 31, 2018	$ 2,005	182,630	(2,786)	(58,035)	(19,266)	(85)	$ 104,463
Share repurchases					(1,957)		$ (1,957)
Stock option exercises (in shares)	208,881						208,881
Stock option exercises	$ 21	909					$ 930
Tax withholdings on option exercises					(8)		(8)
Stock-based compensation -stock options		623					623
Stock-based compensation -restricted stock		130					130
Foreign currency translation adjustments			255				255
Net income				5,205		109	$ 5,314
Stock-based compensation -restricted stock (in shares)	5,834
Balance (in shares) at Dec. 31, 2019	20,268,050						15,866,868
Balance at Dec. 31, 2019	$ 2,026	$ 184,292	$ (2,531)	$ (52,830)	$ (21,231)	$ 24	$ 109,750

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
OPERATING ACTIVITIES:
Net income	$ 5,314	$ 24,999
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation	2,220	1,972
Amortization of intangible assets	525	397
Amortization of financing fees	44	36
Stock-based compensation	753	890
Deferred income tax expense	1,211	(18,643)
Changes in operating assets and liabilities:
Accounts receivable	(10,416)	(1,511)
Inventories, gross	(3,319)	2,348
Inventory reserves	1,123	838
Prepaid expenses and other assets	(1,575)	373
Income taxes receivable and payable	25	9
Accounts payable and other liabilities	1,125	(822)
Net cash (used in) provided by operating activities	(2,970)	10,886
INVESTING ACTIVITIES:
Purchase of SWE, net of cash acquired	(25,248)
Purchases of property, plant and equipment	(6,281)	(4,185)
Net cash used in investing activities	(31,529)	(4,185)
FINANCING ACTIVITIES:
Proceeds from revolving credit facility	10,182
Proceeds from term loan facility	8,000
Payment of term loan facility	(866)
Repurchase of common stock	(1,957)	(742)
Payment of debt issuance costs	(157)
Proceeds from exercise of stock options	930	1,568
Tax withholdings on stock-based awards	(8)	(55)
Proceeds from government grant		397
Net cash provided by financing activities	16,124	1,168
Effect of exchange rate changes on cash	(154)	(265)
INCREASE (DECREASE) IN CASH	(18,529)	7,604
Cash - Beginning of year	25,934	18,330
Cash - End of year	7,405	25,934
Supplemental cash flow information:
Construction in process in accounts payable	74	1,616
Income taxes paid	266	220
Interest paid	$ 576	$ 132

Note 1 - Summary of Options and Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Business Description and Accounting Policies [Text Block]

Note

- Summary of Operations and Significant Accounting Policies

a.	Description of Business

As used in this annual report, unless otherwise indicated, the terms “we”, “our” and “us” refer to Ultralife Corporation (“Ultralife”) and includes our wholly-owned subsidiaries, ABLE New Energy Co., Limited and its wholly-owned subsidiary ABLE New Energy Co.; Ltd; Ultralife UK LTD and its wholly-owned subsidiary, Accutronics Ltd; Ultralife Batteries (UK) Ltd.; Southwest Electronic Energy Corporation and its wholly-owned subsidiary, CLB, INC.; and our majority-owned joint venture Ultralife Batteries India Private Limited.

We offer products and services ranging from power solutions to communications and electronics systems. Through our engineering and collaborative approach to problem solving, we serve government, defense and commercial customers across the globe. We design, manufacture, install and maintain power and communications systems including: rechargeable and non-rechargeable batteries, charging systems, communications and electronics systems and accessories, and custom engineered systems. We sell our products worldwide through a variety of trade channels, including original equipment manufacturers (“OEMs”), industrial and defense supply distributors, and directly to U.S. and international defense departments.

b.	Principles of Consolidation

The consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of Ultralife Corporation, our wholly-owned subsidiaries, Ultralife Batteries (UK) Ltd., Ultralife UK LTD, and its wholly-owned subsidiary Accutronics Ltd, ABLE New Energy Co., Limited and its wholly-owned subsidiary ABLE New Energy Co., Ltd. (“ABLE” collectively), Southwest Electronic Energy Corporation and its wholly-owned subsidiary, CLB, INC. (“SWE” collectively) (Note

), and our majority-owned subsidiary Ultralife Batteries India Private Limited (“India JV”). Intercompany accounts and transactions have been eliminated in consolidation.

c.	Management's Use of Judgment and Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year end and the reported amounts of revenues and expenses during the reporting period. Key areas affected by estimates include: (a) carrying value of goodwill and intangible assets; (b) reserves for deferred tax assets, excess and obsolete inventory, warranties, and bad debts; (c) valuation of assets acquired and liabilities assumed in business combinations; (d) various expense accruals; and (e) stock-based compensation. Our actual results could differ from these estimates.

d.	Reclassifications

Certain items previously reported in specific financial statement captions are reclassified to conform to the current presentation. There were

material reclassifications for the years ended

December 31, 2019

and

2018.

Cash

Our cash balances

may

at times exceed federally insured limits. We have

not

experienced any losses in these accounts and believe we are

not

exposed to any significant risk with respect to cash.

f.	Accounts Receivable and Allowance for Doubtful Accounts

We extend credit to our customers in the normal course of business. We perform ongoing credit evaluations and generally do

not

require collateral. Payment terms are generally

days. Trade accounts receivable are recorded at their invoiced amounts, net of allowance for doubtful accounts. We evaluate the adequacy of our allowance for doubtful accounts quarterly. Accounts outstanding for longer than contractual payment terms are considered past due and are reviewed for collectability. We maintain reserves for potential credit losses based upon our historical experience and the aging of specific receivables. Receivable balances are written off when collection is deemed unlikely.

g.	Inventories

Inventories are stated at the lower of cost or net realizable value with cost determined under the

first

-in,

first

-out (FIFO) method. We record provisions for excess, obsolete or slow-moving inventory based on changes in customer demand, technology developments or other economic factors.

h.	Property, Plant and Equipment

Property, plant and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives. Estimated useful lives are as follows (in years):

Buildings	10	–	40
Machinery and Equipment	5	–	10
Furniture and Fixtures	3	–	10
Computer Hardware and Software	3	–	5
Leasehold Improvements	Lesser of useful life or lease term

Betterments, renewals and extraordinary repairs that extend the life of the assets are capitalized. Other repairs and maintenance costs are expensed when incurred. When disposed, the cost and accumulated depreciation applicable to assets retired are removed from the accounts and the gain or loss on disposition is recognized in operating income.

i.	Long-Lived Assets, Goodwill and Intangibles

We assess all of our long-lived assets for impairment when events or circumstances indicate that their carrying amounts

may

not

be recoverable. For property, plant and equipment and amortizable intangible assets, this is accomplished by comparing the expected undiscounted future cash flows of the assets with the respective carrying amount as of the date of assessment. If the expected undiscounted future cash flows exceed the respective carrying amount as of the date of assessment,

impairment is recognized. Should aggregate future cash flows be less than the carrying value, a write-down would be required, measured as the difference between the carrying value and the fair value of the asset. Fair value is estimated as the present value of expected discounted future cash flows. The discount rate used in our evaluation is an industry-based weighted average cost of capital.

The purchase price paid to effect an acquisition is allocated to the acquired tangible and intangible assets and liabilities at fair value. We do

not

amortize goodwill and intangible assets with indefinite lives, but instead evaluate these assets for impairment at least annually, or when events indicate that impairment exists. We amortize intangible assets that have definite lives so that the economic benefits of the intangible assets are being recognized over their weighted-average estimated useful life.

The quantitative impairment test for goodwill consists of a comparison of the fair value of the reporting unit with the carrying amount of the reporting unit to which it is assigned. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered

not

impaired. If the carrying amount of a reporting unit exceeds its fair value, a

second

step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The impairment test for intangible assets with indefinite lives consists of a comparison of the fair value of the intangible assets with their carrying amounts. If the carrying value of the intangible assets exceeds the fair value, an impairment loss is recognized in an amount equal to that excess.

j.	Translation of Foreign Currency

The financial statements of our foreign subsidiaries are translated from the functional currency into U.S. dollar equivalents, with translation adjustments recorded as the sole component of accumulated other comprehensive loss. Exchange gains and losses related to foreign currency transactions and balances denominated in currencies other than the functional currency are recognized in net income.

k .	Revenue Recognition

Revenues are generated from the sale of products. Performance obligations are met and revenue is recognized upon transfer of control to the customer, which is generally upon shipment. When contract terms require transfer of control upon delivery at a customer’s location, revenue is recognized on the date of delivery. Revenue is measured as the amount of consideration we expect to receive in exchange for shipped product. Sales, value-added and other taxes billed and collected from customers are excluded from revenue. Customers, including distributors, do

not

have a general right of return. For products shipped under vendor managed inventory arrangements, revenue is recognized and billed when the product is consumed by the customer, at which point control has transferred and there are

further obligations by the Company.

Revenues recognized from prior period performance obligations for the years ended

December 31, 2019

and

2018

were

not

material.

As of

December 31, 2019

and

2018,

the Company had

unsatisfied performance obligations for contracts with an original expected duration of greater than

one

year. Pursuant to Topic

606,

we have applied the practical expedient with respect to disclosure of the deferral and future expected timing of revenue recognition for transaction price allocated to remaining performance obligations.

Deferred revenue, unbilled revenue and deferred contract costs recorded on our consolidated balance sheets as of

December 31, 2019

and

2018

were

not

material.

l.	Warranty Reserves

We generally offer standard warranties against product defects. We do

not

offer separate service-type warranties. We estimate future warranty costs to be incurred for product failure rates, material usage and service costs in the development of our warranty obligations. Estimated future costs are based on actual past experience and are generally estimated as a percentage of sales over the warranty period. Warranty costs are recorded as costs of products sold. Provision for warranty costs is recorded in other current liabilities and other long-term liabilities on our consolidated balance sheets based on the duration of the warranty. Refer to Note

m.	Shipping and Handling Costs

Costs incurred by us related to shipping and handling are included in cost of products sold. Amounts charged to customers pertaining to these costs are reflected as revenue.

n.	Sales Commissions

Sales commissions are expensed as incurred for contracts with an expected duration of

one

year or less. There were

sales commissions capitalized as of

December 31, 2019

and

2018.

o.	Research and Development

Research and development expenditures are charged to operations as incurred. The majority of research and development expenses pertain to salaries and benefits, developmental supplies, depreciation and other contracted services. For the years ended

December 31, 2019

and

2018,

we expended

$8,025

and

$5,230,

respectively, on research and development, including costs of

$1,220

and

$722,

respectively, on customer sponsored research and development activities, which are included in cost of goods sold.

p.	Environmental Costs

Environmental expenditures that relate to current operations are expensed. Remediation costs that relate to an existing condition caused by past operations are accrued when it is probable that these costs will be incurred and can be reasonably estimated.

q.	Income Taxes

We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Pursuant to ASC

740,

a valuation allowance is recognized when the realizability of deferred tax assets is

not

more likely than

not,

on the basis of all available evidence, both positive and negative, weighted based on objective verifiability.

r.	Concentration Related to Customers and Suppliers

We have

two

customers, both large defense primary contractors, which comprised

14%

and

12%

of our total revenues in

2019,

respectively, and

and

16%

of our total revenues in

2018,

respectively.

2019

revenues from these

two

customers represented

64%

of our total Communications Systems segment revenues and

15%

of our total Battery & Energy Products segment revenues.

2018

revenues from these

two

customers represented

34%

of our total Communications Systems segment revenues and

20%

of our total Battery & Energy Products segment revenues. There were

other customers that comprised greater than

10%

of our total revenues during these years.

Currently, we do

not

experience significant seasonal trends in our revenues. Since a significant portion of our revenues are based on purchases from U.S. and allied country defense departments, the timing of our sales could be impacted by delays in the government budget process and the decisions to deploy resources to support military purchases of our products.

We generally do

not

distribute our products to a concentrated geographical area nor is there a significant concentration of credit risks arising from individuals or groups of customers engaged in similar activities, or who have similar economic characteristics. While direct and indirect sales to the U.S. Department of Defense have been substantial during

2019

and

2018,

we do

not

consider this customer to be a significant credit risk.

Certain materials and components used in our products are available only from a single or a limited number of suppliers. As such, some materials and components could become in short supply resulting in limited availability and/or increased costs. Additionally, we

may

elect to develop relationships with a single or limited number of suppliers for materials and components that are otherwise generally available. Although we believe that alternative suppliers are available to supply materials and components that could replace materials and components currently used and that, if necessary, we would be able to redesign our products to make use of such alternatives, any interruption in the supply from any supplier that serves as a sole source could delay product shipments and have a material adverse effect on our business, financial condition and results of operations. We have experienced interruptions of product deliveries by sole source suppliers in the past.

s.	Fair Value Measurements and Disclosures

Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into

three

levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level

Quoted prices in active markets for identical assets or liabilities.

Level

Observable inputs, other than Level

prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are

not

active; or other inputs that are observable or that we corroborate with observable market data for substantially the full term of the related assets or liabilities.

Level

Unobservable inputs supported by little or

market activity that are significant to the fair value of the assets or liabilities.

The fair value of financial instruments approximated their carrying values at

December 31, 2019

and

2018.

The fair value of cash, trade accounts receivable, trade accounts payable, accrued liabilities, and the current portion of long-term debt approximates carrying value due to the short-term nature of these instruments. The carrying value of long-term debt approximates fair value, as the variable interest rates approximate current market rates.

t.	Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income attributable to Ultralife Corporation by the weighted average shares of common stock outstanding for the period. Diluted EPS reflects the assumed exercise and conversion of dilutive outstanding stock options and unvested restricted stock, if any, applying the treasury stock method.

For the year ended

December 31, 2019,

the calculation of diluted EPS included

899,041

stock options and

31,666

restricted stock awards. Inclusion of these shares resulted in

396,536

additional shares in the calculation of diluted EPS. There were

642,751

outstanding stock options as of

December 31, 2019

excluded from the calculation of diluted EPS, as inclusion of these shares would have been anti-dilutive.

For the year ended

December 31, 2018,

the calculation of diluted EPS included

1,127,837

stock options and

17,500

restricted stock awards. Inclusion of these shares resulted in

465,004

additional shares in the calculation of diluted EPS. There were

448,250

outstanding stock options as of

December 31, 2018

excluded from the calculation of diluted EPS, as inclusion of these shares would have been anti-dilutive.

u.	Stock-Based Compensation

We have various stock-based employee compensation plans that are described more fully in Note

The compensation cost relating to share-based payment transactions is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the employee’s requisite service period (generally the vesting period of the equity award).

v.	Segment Reporting

We have

two

operating segments – Battery & Energy Products, and Communications Systems. The basis for determining our operating segments is the manner in which financial information is used in monitoring our operations. Management operates and organizes itself according to business units that comprise unique products and services across geographic locations.

w.	Recent Accounting Pronouncements

Recently Adopted Accounting Guidance

Leases

Effective

January 1, 2019,

the Company adopted Accounting Standards Update

2016

–

Leases

(Topic

842

). Adoption of the new standard did

not

materially impact the prior year consolidated statements of operations and cash flows. The prior year consolidated balance sheet has been revised for the effects of the new standard. The effects to our consolidated balance sheet as of

December 31, 2018

are presented below.

The Company adopted the new standard applying the modified retrospective approach. The Company measured and recognized leases upon adoption which had commenced as of the beginning or during the prior year. The package of practical expedients permitted under the transition guidance of the new standard was elected which allowed us to carry forward the historical lease classification and determination of whether an arrangement is or contains a lease on existing leases. The use-of-hindsight transition practical expedient was applied to determine the lease term for existing leases, which resulted in the lengthening of the lease term at commencement for

one

of our operating facilities.

At contract inception, the Company determines whether the arrangement is or contains a lease and determines the lease classification. The lease term is determined based on the non-cancellable term of the lease adjusted to the extent optional renewal terms and termination rights are reasonably certain. Lease expense is recognized evenly over the lease term. Variable lease payments are recognized as period costs. The present value of remaining lease payments is recognized as a liability on the balance sheet with a corresponding right-of-use asset adjusted for prepaid or accrued lease payments. The Company uses its incremental borrowing rate for the discount rate, unless the interest rate implicit in the lease contract is readily determinable. The Company has adopted the practical expedients to

not

separate non-lease components from lease components and to

not

present short-term leases on the balance sheet.

The impact on the consolidated balance sheet as of

December 31, 2018

is shown below.

Impact to Previously Reported Results

Consolidated Balance Sheet as of

December 31, 2018:

	As Previously Reported			Lease Standard Adjustment			As Adjusted
Other noncurrent assets	$	82		$	805		$	887
Prepaid expenses and other current assets		2,429			(61	)		2,368
Accrued expenses and other current liabilities		3,534			439			3,973
Other noncurrent liabilities		32			376			408
Accumulated deficit		(57,964	)		(71	)		(58,035	)

See Note

for further disclosure regarding lease accounting.

Recent

Accounting Guidance

Not

Yet Adopted

June 2016,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU")

2016

13,

Financial Instruments-Credit Losses (Topic

326

), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2022.

The Company is currently assessing the impact that adopting this new accounting standard will have on our consolidated financial statements.

January 2017,

the FASB issued ASU

2017

04,

“Intangibles – Goodwill and Other (Topic

350

) – Simplifying the Test for Goodwill Impairment”, which eliminates the

two

-step process that required identification of potential impairment and a separate measure of the actual impairment. The annual assessment of goodwill impairment will be determined by using the difference between the carrying amount and the fair value of the reporting unit. The standard is effective for annual and interim impairment tests performed in periods beginning after

December 15, 2019

and is to be applied on a prospective basis. The Company is currently assessing the impact that adopting this new accounting standard will have on our consolidated financial statements.

Note 2 - Acquisition

12 Months Ended

Dec. 31, 2019

Subsequent Events [Text Block]

Note

–

Acquisition

May 1, 2019,

the Company completed the acquisition of

100%

of the issued and outstanding shares of Southwest Electronic Energy Corporation, a Texas corporation (“SWE”), for an aggregate purchase price of

$26,190

inclusive of

$942

cash acquired and post-closing adjustments.

SWE is a leading independent designer and manufacturer of high-performance smart battery systems and battery packs to customer specifications using lithium cells. SWE serves a variety of industrial markets, including oil & gas, remote monitoring, process control and marine, which demand uncompromised safety, service, reliability and quality. The Company acquired SWE as a bolt-on acquisition to further support our strategy of commercial revenue diversification by providing entry to the oil and gas exploration and production, and subsea electrification markets, which are currently unserved by Ultralife. Another key benefit includes obtaining a highly valuable technical team of battery pack and charger system engineers and technicians to add to our new product development-based revenue growth initiatives in our commercial end-markets particularly asset tracking, smart metering and other industrial applications.

The acquisition of SWE was completed pursuant to a Stock Purchase Agreement dated

May 1, 2019 (

the “Stock Purchase Agreement”) by and among Ultralife, SWE, Southwest Electronic Energy Medical Research Institute, a Texas non-profit (the “Seller”), and Claude Leonard Backstein, an individual (the “Shareholder”). The Stock Purchase Agreement contains customary terms and conditions including representations, warranties and indemnification provisions. A portion of the consideration paid to the Seller is being held in escrow for indemnification purposes.

The aggregate purchase price for the acquisition was funded by the Company through a combination of cash on hand and borrowings under the Credit Facilities (Note

The purchase price allocation was determined in accordance with the accounting treatment of a business combination pursuant to FASB ASC Topic

805,

Business Combinations (ASC

805

). Accordingly, the fair value of the consideration was determined, and the assets acquired and liabilities assumed have been recorded at their fair values at the date of the acquisition. The excess of the purchase price over the estimated fair values has been recorded as goodwill.

The allocation of purchase price to the assets acquired and liabilities assumed at the date of the acquisition is presented in the table below. Management is responsible for determining the fair value of the tangible and intangible assets acquired and liabilities assumed as of the date of acquisition. Management considered several factors, including reference to an analysis performed under ASC

805

solely for the purpose of allocating the purchase price to the assets acquired and liabilities assumed. The Company’s estimates are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable. These valuations require the use of management’s assumptions, which would

not

reflect unanticipated events and circumstances that

may

occur.

Cash	$	942
Accounts receivable		3,621
Inventories		4,685
Other current assets		431
Property, plant and equipment		9,177
Goodwill		6,534
Customer relationships		2,522
Trade name		1,127
Accounts payable		(1,060	)
Other current liabilities		(778	)
Deferred tax liability, net		(1,011	)
Net assets acquired	$	26,190

The goodwill included in the Company’s purchase price allocation presented above represents the value of SWE’s assembled and trained workforce, the incremental value that SWE engineering and technology will bring to the Company and the revenue growth which is expected to occur over time which is attributable to increased market penetration from future new products and customers. The goodwill acquired in connection with the acquisition is

not

deductible for income tax purposes.

The operating results and cash flows of SWE are reflected in the Company’s consolidated financial statements from the date of acquisition. SWE is included in the Battery & Energy Products segment.

For the year ended

December 31, 2019,

SWE contributed revenue of

$18,746

and net income of

$1,238,

inclusive of a

$264

increase in cost of products sold for the fair value step-up of acquired inventory sold during the period, non-recurring expenses of

$165

directly related to the acquisition, interest expense of

$453

directly related to the financing of the SWE acquisition, and amortization expense of

$161

on acquired identifiable intangible assets.

During the year ended

December 31, 2019,

the Company incurred non-recurring transaction costs of

$322

directly attributable to the acquisition. Debt issuance costs of

$157,

including placement, renewal and legal fees, are amortized to interest expense over a weighted average life of

4.6

years based on the terms of the related Credit Facilities. Other non-recurring transaction costs of

$165,

including

one

-time accounting, legal and due diligence services, were expensed during the year.

The following supplemental pro forma information presents the combined results of operations, inclusive of the purchase accounting adjustments and

one

-time acquisition-related expenses described above, as if the acquisition of SWE had been completed on

January

2018,

the beginning of the comparable prior period.

The supplemental pro forma results do

not

exclude the agreed upon departure of the Shareholder from SWE and dissolution of the SWE Board of Directors upon consummation of the acquisition or the realization of any expected synergies or other cost reductions following the completion of the business combination. The supplemental pro forma results are presented for informational purposes only and should

not

be considered indicative of the financial position or results of operations had the acquisition been completed as of the dates indicated and does

not

purport to indicate the future combined financial position or results of operation.

Set forth below are the unaudited supplemental pro forma results of the Company and SWE for the years ended

December 31, 2019

and

2018

as if the acquisition had occurred as of

January

2018.

	Years Ended December 31
	2019		2018
Revenue	$	115,590	$	115,566
Operating income		8,008		6,278
Net Income attributable to Ultralife Corporation		5,526		24,280
Net income per share attributable to Ultralife Corporation:
Basic	$	0.35	$	1.53
Diluted	$	0.34	$	1.49

Note 3 - Debt	12 Months Ended
Note 3 - Debt	Dec. 31, 2019
Notes to Financial Statements
Debt Disclosure [Text Block]	Note 3 – Debt Credit Facilities On May 1, 2019, Ultralife, SWE, and CLB, INC., a Texas corporation and wholly owned subsidiary of SWE (“CLB”), as borrowers, entered into the First Amendment Agreement (the “First Amendment Agreement”) with KeyBank National Association (“KeyBank” or the “Bank”), as lender and administrative agent, to amend the Credit and Security Agreement by and among Ultralife and KeyBank dated May 31, 2017 ( the “Credit Agreement”, and together with the First Amendment Agreement, the “Amended Credit Agreement”). The Amended Credit Agreement, among other things, provides for a five -year, $8,000 senior secured term loan (the “Term Loan Facility”) and extends the term of the $30,000 senior secured revolving credit facility (the “Revolving Credit Facility”, and together with the Term Loan Facility, the “Credit Facilities”) through May 31, 2022. Up to six months prior to May 31, 2022, the Revolving Credit Facility may be increased to $50,000 with the Bank’s concurrence. Upon closing of the SWE acquisition on May 1, 2019, the Company drew down the full amount of the Term Loan Facility and $6,782 under the Revolving Credit Facility. As of December 31, 2019, the Company had $7,134 outstanding principal on the Term Loan Facility, of which $1,372 is included in current portion of long-term debt on the balance sheet, and $10,182 outstanding principal on the Revolving Credit Facility. As of December 31, 2019, total unamortized debt issuance costs of $164 associated with the Amended Credit Agreement are classified as a reduction of long-term debt on the balance sheet. The Company is required to repay the borrowings under the Term Loan Facility in sixty ( 60 ) equal consecutive monthly payments commencing on May 31, 2019, in arrears, together with applicable interest. All unpaid principal and accrued and unpaid interest with respect to the Term Loan Facility is due and payable in full on April 30, 2024. All unpaid principal and accrued and unpaid interest with respect to the Revolving Credit Facility is due and payable in full on May 31, 2022. The Company may voluntarily prepay principal amounts outstanding at any time subject to certain restrictions. As of December 31, 2019, the aggregate principal amounts of long-term debt are scheduled to mature as follows: $1,420 in 2021, $11,650 in 2022, $1,519 in 2023, and $1,355 in 2024. In addition to the customary affirmative and negative covenants, the Company must maintain a consolidated fixed charge coverage ratio of equal to or greater than 1.15 to 1.0, and a consolidated senior leverage ratio of equal to or less than 2.5 to 1.0, each as defined in the Amended Credit Agreement. The Company was in full compliance with its covenants as of December 31, 2019. Borrowings under the Credit Facilities are secured by substantially all the assets of the Company. Availability under the Revolving Credit Facility is subject to certain borrowing base limits based on receivables and inventories. Interest will accrue on outstanding indebtedness under the Credit Facilities at the Base Rate or the Overnight LIBOR Rate, as selected by the Company, plus the applicable margin. The Base Rate is the higher of (a) the Prime Rate, (b) the Federal Funds Effective Rate plus 50 basis points, and (c) the Overnight LIBOR Rate plus one hundred basis points. The applicable margin ranges from zero to negative 50 basis points for the Base Rate and from 185 to 215 basis points for the Overnight LIBOR Rate and are determined based on the Company’s senior leverage ratio. As of December 31, 2019, the variable interest rates were 3.56% for the Revolving Credit Facility and 3.41% for the Term Loan Facility. The Company must pay a fee of 0.1% to 0.2% based on the average daily unused availability under the Revolving Credit Facility. Payments must be made by the Company to the extent borrowings exceed the maximum amount then permitted to be drawn on the Credit Facilities and from the proceeds of certain transactions. Upon the occurrence of an event of default, the outstanding obligations may be accelerated and the Bank will have other customary remedies including resort to the security interest the Company provided to the Bank.

Note 4 - Share Repurchase Program	12 Months Ended
Note 4 - Share Repurchase Program	Dec. 31, 2019
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	Note 4 – Share Repurchase Program On October 31, 2018, the Company’s Board of Directors approved a share repurchase program (the “Share Repurchase Program”) which became effective on November 1, 2018, under which the Company is authorized to purchase up to 2.5 million shares of its outstanding common stock over a period not to exceed twelve months. Under the Share Repurchase Program, shares may be purchased in open market transactions, including through block purchases, through privately negotiated transactions, or pursuant to any trading plan that may be adopted in accordance with Rule 10b5 - 1 of the Securities Exchange Act of 1934. The timing, manner, price and amount of any repurchase will be determined at the Company’s discretion and the Share Repurchase Program may be suspended, terminated or modified by the Company’s Board of Directors at any time for any reason and does not obligate the Company to purchase any specific number of shares. Under the Program, all purchases will be made in accordance with Securities Exchange Act Rule 10b - 18, which sets certain restrictions on the method, timing, price and volume of open market stock repurchases. During 2019, we repurchased a total of 267,300 shares of our common stock for an aggregate consideration (including fees and commissions) of $1,957. From the inception of the Share Repurchase Program on November 1, 2018, we repurchased a total of 372,974 shares of our common stock for an aggregate consideration (including fees and commissions) of $2,699.

Note 5 - Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2019

Supplemental Balance Sheet Disclosures [Text Block]

Note

- Supplemental Balance Sheet Information

a.	Cash and Restricted Cash

The Company had cash and restricted cash totaling

$7,405

and

$25,934

as of

December 31, 2019

and

2018,

respectively.

	December 31
	201 9		201 8
Cash	$	7,135	$	25,583
Restricted cash		270		351
Total	$	7,405	$	25,934

As of

December 31, 2019

and

December 31, 2018,

restricted cash included

$188

and

$266,

respectively, relating to a government grant awarded in the People’s Republic of China to fund specified technological research and development initiatives. The grant proceeds are realized to income as a direct offset to expense as the related expenditures are incurred. For the year ended

December 31, 2019,

grant proceeds of

$78

were realized to income. As of

December 31, 2019

and

December 31, 2018,

restricted cash included euro-denominated deposits of

$82

and

$85,

respectively, withheld by the Dutch tax authorities and

third

-party VAT representatives in connection with a previously utilized logistics arrangement in the Netherlands. Restricted cash is included as a component of the cash balance for purposes of the consolidated statements of cash flows.

b. Inventory, Net

Inventories are stated at the lower of cost or net realizable value with cost determined under the

first

-in,

first

-out (FIFO) method. The composition of inventories, net was:

	December 31
	2019		2018
Raw materials	$	18,485	$	13,274
Work in process		2,548		2,016
Finished products		8,726		7,553
Total	$	29,759	$	22,843

Property, Plant and Equipment

Major classes of property, plant and equipment consisted of the following:

	December 31
	2019			2018
Land	$	1,273		$	123
Buildings and leasehold improvements		8,148			8,267
Machinery and equipment		62,562			51,261
Furniture and fixtures		2,112			2,058
Computer hardware and software		6,528			5,590
Construction in progress		4,730			4,302
		85,353			71,601
Less – Accumulated depreciation		(62,828	)		(60,857	)
Total	$	22,525		$	10,744

Depreciation expense was

$2,220

and

$1,972

for the years ended

December 31, 2019

and

2018,

respectively.

Goodwill and Other Intangible Assets

The Company performed its annual impairment tests of goodwill and other indefinite-lived intangible assets as of the

first

day of the fiscal

fourth

quarter of

2019

and

2018.

The Company performed a quantitative impairment test as of

September 30, 2019

of its

five

identified goodwill reporting units including a reporting unit for SWE (Note

) which is a component of the Battery & Energy Products segment. The fair value for the reporting units could

not

be determined using readily available quoted Level

inputs or Level

inputs that were observable in active markets. Therefore, we used a discounted cash flow model to estimate the fair value of the reporting units, using Level

inputs. To estimate the fair value of the reporting units, we used significant estimates and judgments, including an assessment of our future revenue prospects, revenue growth rates and profit margins based on internal forecasts, industry and market based terminal growth rates, inputs to the weighted-average cost of capital used to discount future cash flows, and earnings multiples.

The Company performed a quantitative impairment test of its

four

other indefinite-lived intangible assets (trademarks). The fair value of our trademarks could

not

be determined using readily available quoted Level

inputs or Level

inputs that were observable in active markets. Therefore, we used a relief from royalty approach to estimate the fair value of our trademarks, using Level

inputs. Significant estimates and judgments included an assessment of our future revenue prospects, industry and market based terminal growth rates, inputs to the weighted-average cost of capital used to discount future cash flows, and royalty rates based on external market data.

As a result of the impairment tests performed for

2019

and

2018,

we determined that

impairments existed. Fair value exceeded carrying value for all reporting units and trademarks by more than

10%,

except for the goodwill test as of

September 30, 2019

for SWE which was acquired

five

months prior.

There is a possibility that our goodwill and other intangible assets could be impaired in the future should there be a significant change in our internal forecasts and other assumptions used in our impairment analysis.

The following table summarizes the goodwill activity by segment for the years ended

December 31, 2019

and

2018:

	Battery & Energy Products			Communications Systems		Total
Balance – January 1, 2018	$	8,965		$	11,493	$	20,458
Effect of foreign currency translation		(349	)		-		(349	)
Balance – December 31, 2018		8,616			11,493		20,109
Acquisition of SWE		6,534			-		6,534
Effect of foreign currency translation		110			-		110
Balance – December 31, 2019	$	15,260		$	11,493	$	26,753

The composition of intangible assets was:

	December 31, 201 9
	Cost		Accumulated amortization		Net
Trademarks	$	3,403	$	-	$	3,403
Customer relationships		9,080		4,721		4,359
Patents and technology		5,521		4,869		652
Distributor relationships		377		377		-
Trade name		1,511		204		1,307
Total other intangible assets	$	19,892	$	10,171	$	9,721

	December 31, 201 8
	Cost		Accumulated a mortization		Net
Trademarks	$	3,405	$	-	$	3,405
Customer relationships		6,471		4,392		2,079
Patents and technology		5,486		4,725		761
Distributor relationships		377		377		-
Trade name		370		111		259
Total other intangible assets	$	16,109	$	9,605	$	6,504

The change in the cost value of other intangible assets is a result of the SWE acquisition (Note

) and the effect of foreign currency translations.

Amortization of other intangible assets was included in the following financial statement captions:

	Year ended December 31
	201 9		2018
Research and development expense	$	130	$	147
Selling, general and administrative expense		395		250
Total	$	525	$	397

Future amortization expense of amortizable intangible assets will be approximately

$360,

$341,

$326,

$323

and

$313

for the

five

fiscal years ending

December 31, 2020

through

2024,

respectively.

Note 6 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Text Block]

Note

- Commitments and Contingencies

Indemnity

Our organizational documents provide that our directors or officers will be reimbursed for all expenses, to the fullest extent permitted by law arising out of their performance.

b.	Purchase Commitments

As of

December 31, 2019,

we have made commitments to purchase approximately

$1,185

of production machinery and equipment.

China

Our operating facility in China presents risks including, but

not

limited to, changes in local regulatory requirements, changes in labor laws, local wage laws, environmental regulations, taxes and operating licenses, compliance with U.S. regulatory requirements, including the Foreign Corrupt Practices Act, uncertainties as to application and interpretation of local laws and enforcement of contract and intellectual property rights, currency restrictions, currency exchange controls, fluctuations of currency, and currency revaluations, eminent domain claims, civil unrest, power outages, water shortages, labor shortages, labor disputes, increase in labor costs, rapid changes in government, economic and political policies, political or civil unrest, acts of terrorism, or the threat of boycotts, other civil disturbances and the possible impact of the imposition of tariffs by the U.S. Government on

Volt batteries that we manufacture in China as well as any retaliating trade policies or restrictions. Any such disruptions could depress our earnings and have other material adverse effects on our business, financial condition and results of operations.

d.	Employment Contracts

We have an employment contract with Michael D. Popielec, our President and Chief Executive Officer, which remains in effect until terminated by either party. This agreement provides for a base salary, as adjusted for increases at the discretion of our Board of Directors, and includes incentive bonuses based upon attainment of specified quantitative and qualitative performance goals. This agreement also provides for severance payments in the event of specified events of termination of employment. In addition, this agreement provides for a lump sum payment in the event of termination of employment in connection with a change in control.

As part of our employment commencement process, employees are required to enter into agreements providing for confidentiality of certain information and the assignment of rights to inventions made by them while employed by us. These agreements also contain certain non-competition and non-solicitation provisions effective during the employment term and for varying periods thereafter depending on position and location. There can be

assurance that we will be able to enforce these agreements. All of our employees agree to abide by the terms of a Code of Ethics policy that provides for the confidentiality of certain information received during the course of their employment.

e.	Product Warranties

We estimate future warranty costs to be incurred for product failure rates, material usage and service costs in the development of our warranty obligations. Estimated future costs are based on actual past experience and are generally estimated as a percentage of sales over the warranty period. Changes in our product warranty liability during the years ended

December 31, 2019

and

2018

were as follows:

	201 9			201 8
Balance, January 1	$	95		$	149
Assumed warranty obligations – SWE		145			-
Provision for warranties issued		114			7
Settlements made		(159	)		(61	)
Balance, December 31	$	195		$	95

f .	Contingencies and L egal Matters

We are subject to legal proceedings and claims that arise from time to time in the normal course of business. We believe that the final disposition of any such matters will

not

have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, recognizing that legal matters are subject to inherent uncertainties, there exists the possibility that ultimate resolution of these matters could have a material adverse impact on the Company’s financial position, results of operations or cash flows in the period in which any such effects are recorded. We are

not

aware of any such situations at this time.

Note 7 - Shareholders' Equity

12 Months Ended

Dec. 31, 2019

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

Note

- Shareholders' Equity

a.	Stock-Based Compensation Expense

We recorded non-cash stock compensation expense in each period as follows:

	Year ended December 31
	201 9		201 8
Stock options	$	623	$	817
Restricted stock grants		130		73
Total	$	753	$	890

These are more fully discussed as follows:

b.	Stock Options

We have various stock-based employee compensation plans, for which compensation cost is recognized in the financial statements. The cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity award).

Our shareholders have approved various equity-based plans that permit the grant of stock options, restricted stock and other equity-based awards. In addition, our shareholders have approved the grant of stock options outside of these plans.

June 2004,

our shareholders adopted the

2004

Long-Term Incentive Plan (

“2004

LTIP”) pursuant to which we were authorized to issue up to

750,000

shares of common stock and grant stock options, restricted stock awards, stock appreciation rights and other stock-based awards. Through shareholder approved amendments to the LTIP in

2006,

2008,

2011,

and

2013,

the total number of shares authorized under the

2004

LTIP was increased to

2,900,000.

June 2014,

our shareholders approved the

2014

Long-Term Incentive Plan (

“2014

LTIP”) as the successor plan to the

2004

LTIP that expired on

June 10, 2014.

Under the

2014

LTIP, a total of

1,750,000

shares of common stock will be available for grant of awards. Of the total number of shares of common stock available for awards under the

2014

LTIP,

more than

800,000

shares of common stock

may

be used for awards other than stock options and stock appreciation rights. Grants under the

2014

LTIP

may

be awarded through

June 2, 2024.

Stock options granted under the LTIPs are either Incentive Stock Options (“ISOs”) or Non-Qualified Stock Options (“NQSOs”). Key employees are eligible to receive ISOs and NQSOs; however, directors and consultants are eligible to receive only NQSOs. Most ISOs vest over a

three

-year period and expire on the

seventh

anniversary of the grant date. As of

December 31, 2019,

there were

610,628

stock options outstanding under the

2004

LTIP and

931,164

stock options outstanding under the

2014

LTIP.

December 30, 2010,

pursuant to the terms of his employment agreement, we granted our President and Chief Executive Officer, Michael D. Popielec, options to purchase shares of common stock under the

2004

LTIP as follows: (i)

50,000

shares at

$6.42,

vesting in annual increments of

12,500

shares over a

four

-year period commencing

December 30, 2011; (

ii)

250,000

shares at

$6.42,

vesting in annual increments of

62,500

shares over a

four

-year period commencing

December 30, 2011; (

iii)

200,000

shares at

$10.00,

with vesting to begin on the date the stock reaches a closing price of

$10.00

per share for

trading days within a

-day trading period, with such vesting in annual increments of

50,000

shares over the

four

anniversary dates of that date; and (iv)

200,000

shares at

$15.00,

with vesting to begin on the date the stock reaches a closing price of

$15.00

per share for

trading days within a

-day trading period, with such vesting in annual increments of

50,000

shares over the

four

anniversary dates of that date. The options set forth in items (ii), (iii) and (iv) were subject to shareholder approval of an amendment to the

2004

LTIP, which approval was obtained on

June 7, 2011.

All such options in items (i) and (ii) were due to expire on

December 30, 2017.

April 19, 2017,

the Company’s Board of Directors extended the expiration date to

December 30, 2020.

All such options in items (iii) and (iv) were due to expire as of the later of

December 30, 2017

and

five

years after the initial vesting commences, but in

event later than

December 30, 2020.

July 25, 2018,

the Company’s Board of Directors modified the option in item (iii) such that the option will vest immediately upon the Company’s common stock

first

reaching a closing price

$10.00

for

trading days in a

trading-day period. The option became fully vested during the

third

quarter of

2018

and expires

December 30, 2020.

The transaction has been accounted for as an equity award modification pursuant to Accounting Standards Codification Topic

718,

Compensation – Stock Compensation. During the

third

quarter

2018,

the Company recognized compensation cost of

$182

representing the incremental fair value of the modified award computed as of the modification date as the difference between the fair value of the modified award and the fair value of the original award immediately before it was modified. The incremental fair value was determined using a Monte Carlo simulation option-pricing model consistent with the valuation methodology used to value and recognize the original award. The market-based conditions for the option in item (iv) had

not

been met as of

December 31, 2019.

As of

December 31, 2019,

there was

$737

of total unrecognized compensation costs related to outstanding stock options, which we expect to recognize over a weighted average period of

1.2

years.

We use the Black-Scholes option-pricing model to estimate fair value of stock-based awards. The following weighted average assumptions were used to value options granted during the years ended

December 31, 2019

and

2018:

	Year ended December 31
	2019			2018
Risk-free interest rate		1.8	%		2.6	%
Volatility factor		48.3	%		46.8	%
Weighted average expected life (years)		5.3			5.0
Forfeiture rate		10.0	%		10.0	%
Dividends		0.0	%		0.0	%

We used a Monte Carlo simulation option-pricing model to estimate the fair value of market performance stock-based awards, of which there were

new awards for the years ended

December 31, 2019

and

2018.

We calculate expected volatility for stock options by taking an average of historical volatility over the expected term. The computation of expected term was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards and vesting schedules. The interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield in effect at the time of grant. Forfeiture rates are calculated by dividing unvested shares forfeited by beginning shares outstanding. The pre-vesting forfeiture rate is calculated yearly and is determined using a historical

twelve

-quarter rolling average of the forfeiture rates.

The following tables summarize data for the stock options issued by us:

Year e nded December 31, 201 9
	Number of share s			Weighted average exercise price per share		Weighted average remaining contractual term		Aggregate intrinsic value
Shares under option – January 1		1,576,087		$	6.58
Options granted		282,500			8.27
Options exercised		(208,881	)		4.45
Options forfeited or expired		(107,914	)		10.93
Shares under option – December 31		1,541,792		$	6.88		3.21	$	1,991
Vested and expected to vest - December 31		1,445,563		$	6.79		3.04	$	1,959

Options exercisable – December 31		1,083,581		$	6.28		2.09	$	1,872

Year e nded December 31, 201 8
	Number of shares			Weighted average exercise price per share
Shares under option – January 1		1,860,211		$	5.96
Options granted		217,500			9.68
Options exercised		(422,793	)		4.49
Options forfeited or expired		(78,831	)		11.75
Shares under option – December 31		1,576,087		$	6.58

Options exercisable – December 31		1,064,127		$	5.89

The following table represents additional information about stock options outstanding at

December 31, 2019:

			Option outstanding						Options exercisable
Range of exercise prices			Number of outstanding options		Weighted- average remaining contractual life		Weighted- average exercise price		Number of options exercisable		Weighted- average exercise price
$3.22	-	$3.99		244,377		1.70	$	3.82		244,377	$	3.82
$4.00	-	$5.99		336,331		3.81		4.95		269,601		4.79
$6.00	-	$9.99		761,084		4.02		7.89		369,603		6.99
$10.00				200,000		1.00		10.00		200,000		10.00

$3.22	-	$10.00		1,541,792		3.21	$	6.88		1,083,581	$	6.28

The weighted average fair value of options granted during the years ended

December 31, 2019

and

2018

was

$3.77

and

$4.22,

respectively. The total intrinsic value of options (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) exercised during the years ended

December 31, 2019

and

2018

was

$931

and

$1,722,

respectively.

Cash received from option exercises under our stock-based compensation plans for the years ended

December 31, 2019

and

2018

was

$930

and

$1,568,

respectively.

c.	Restricted Stock Awards

April 2019,

20,000

shares of restricted stock were awarded to certain of our employees at a weighted-average grant date fair value of

$11.12

per share. In

January 2018,

17,500

shares of restricted stock were awarded to certain of our employees at a weighted-average grant date fair value of

$7.16

per share. All outstanding restricted shares vest in equal annual installments over

three

years. Unrecognized compensation cost related to these restricted shares was

$145

December 31, 2019.

d.	Reserved Shares

There were

486,272

shares of common stock available for future issuance under equity compensation plans as of

December 31, 2019.

Note 8 - Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Text Block]

Note

- Income Taxes

For the years ended

December 31, 2019

and

2018,

we recognized income tax expense (benefit) of

$1,457

and (

$18,386

), respectively.

	Year ended December 31
	2019			2018
Current:
Federal	$	-		$	-
State		43			-
Foreign		203			257
		246			257
Deferred:
Federal		1,236			(18,514	)
State		-			-
Foreign		(25	)		(129	)
		1,211			(18,643	)
Total income tax provision	$	1,457		$	(18,386	)

The income tax benefit for

2018

primarily represents a non-cash benefit of

$18,652

upon recognizing the release of the valuation allowance on our U.S. deferred tax assets as of

December 31, 2018.

As of

December 31, 2018,

the Company recognized the release of the valuation allowance on our net operating loss carryforwards and other U.S. deferred tax assets on the basis of management’s assessment. In evaluating the realizability of our U.S. deferred tax assets, management considered all available evidence and concluded that positive factors, including further demonstration of sustained profitability in our core business and continued improvement in our ability to achieve internal earnings forecasts, outweighed all negative factors, including our history of operating losses (prior to

2015

) and historical operating volatility in our core business. Our assessment also considered our expectation to utilize our domestic net operating loss carryforwards, which expire

2020

thru

2035,

and our general business tax credits, which expire

2028

thru

2037.

Based on the results of our assessment, management concluded that it is more likely than

not

that our U.S. deferred tax assets will be fully realized. As of

December 31, 2019,

our domestic net operating loss carryforwards and general business tax credits were

$58,400

and

$1,907,

respectively.

As of

December 31, 2019

and

2018,

for certain past operations in the U.K., we continue to report a valuation allowance for net operating loss carryforwards of approximately

$10,600,

nearly all of which can be carried forward indefinitely. Management has concluded that the realizability of the U.K. net operating loss carryforwards is

not

more likely than

not,

as utilization of the net operating losses

may

be limited due to the change in the past U.K. operation. These net operating losses in the U.K. cannot currently be used to reduce taxable income at our other U.K. subsidiary, Accutronics Ltd. There are

other deferred tax assets related to the past U.K. operations. As of

December 31, 2019

and

2018,

we have

not

recognized a valuation allowance against our other foreign deferred tax assets, as we believe that it is more likely than

not

that they will be realized. We will continue to evaluate the realizability of our deferred tax assets in future periods.

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows:

	December 31
	2019			2018
Deferred tax assets:
Property, plant and equipment	$	-		$	168
Net operating loss carryforwards		14,579			15,622
Tax credit carryforwards		1,907			1,817
Intangible assets		1,283			1,231
Accrued expenses, reserves and other		2,265			1,838
Total deferred tax assets		20,034			20,676
Valuation allowance for deferred tax assets		(1,942	)		(1,942	)
Net deferred tax assets		18,092			18,734

Deferred tax liabilities:
Other		-			(25	)
Property, plant and equipment		(342	)		-
Intangible assets		(5,087	)		(3,856	)
Total deferred tax liabilities		(5,429	)		(3,881	)

Net deferred tax assets	$	12,663		$	14,853

Net deferred tax assets (liabilities) are comprised of the following balance sheet amounts:

	December 31
	2019			2018

Deferred tax assets	$	13,222		$	15,444
Deferred tax liabilities		(559	)		(591	)
	$	12,663		$	14,853

December 31, 2019,

the Company maintains its assertion that all foreign earnings will be indefinitely reinvested in those operations.

For financial reporting purposes, income from continuing operations before income taxes is as follows:

	Year ended December 31
	2019		2018
United States	$	5,992	$	6,226
Foreign		779		387
	$	6,771	$	6,613

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to income from continuing operations before income taxes as follows:

	Year ended December 31
	2019			2018

Statutory income tax rate		21	%		21	%
(Increase) decrease in tax provision resulting from:
Equity compensation		(0.4	)		(2.9	)
Income tax credits		(0.4	)		(1.0	)
Foreign tax rates		(0.5	)		0.3
Valuation allowance		-			(297.3	)
Other		1.8			2.0
Effective income tax rate		21.5	%		(277.9	)%

Accounting for Uncertainty in Income Taxes

There were

unrecognized tax benefits related to uncertain tax positions at

December 31, 2019

and

2018.

As a result of our operations, we file income tax returns in various jurisdictions including U.S. federal, U.S. state and foreign jurisdictions. We are routinely subject to examination by taxing authorities in these various jurisdictions. Our U.S. tax matters for the years

2000

through

2019

remain subject to examination by the Internal Revenue Service (“IRS”) due to our net operating loss carryforwards. Our U.S. tax matters for the years

2000

through

2019

remain subject to examination by various state and local tax jurisdictions due to our net operating loss carryforwards. Our tax matters for the years

2010

through

2019

remain subject to examination by the respective foreign tax jurisdiction authorities.

Note 9 - Operating Leases

12 Months Ended

Dec. 31, 2019

Lessee, Operating Leases [Text Block]

Note

– Operating Leases

The Company has operating leases predominantly for operating facilities. As of

December 31, 2019,

the remaining lease terms on our operating leases range from less than

one

year to approximately

years. Renewal options to extend our leases have been exercised. Termination options are

not

reasonably certain of exercise by the Company. There is

transfer of title or option to purchase the leased assets upon expiration. There are

residual value guarantees or material restrictive covenants. In

July 2019,

the Company entered into a

five

-year agreement to extend the operating lease term of its Shenzhen facility.

The components of lease expense for the current and prior-year comparative periods were as follows:

	Year ended December 31
	2019		2018
Operating lease cost	$	628	$	590
Variable lease cost		84		89
Total lease cost	$	712	$	679

Supplemental cash flow information related to leases was as follows:

	Year ended December 31
	2019		2018
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	611	$	592
Right-of-use assets obtained in exchange for lease liabilities:	$	1,586	$	-

Supplemental balance sheet information related to leases was as follows:

		December 31
	Balance Sheet Classification	2019			2018
Assets:
Operating lease right-of-use asset	Other noncurrent assets	$	1,866		$	805

Liabilities:
Current operating lease liability	Accrued expenses and other current liabilities	$	620		$	439
Operating lease liability, net of current portion	Other noncurrent liabilities		1,247			376
Total operating lease liability		$	1,867		$	815

Weighted-average remaining lease term (years)			3.7			2.1

Weighted-average discount rate			4.5	%		4.5	%

Future minimum lease payments as of

December 31, 2019

are as follows:

Maturity of Operating Lease Liabilities
2020		685
2021		470
2022		355
2023		364
2024		182
Thereafter		0
Total lease payments		2,056
Less: Imputed interest		(189	)
Present value of remaining lease payments	$	1,867

Note 11 - Business Segment Information

12 Months Ended

Dec. 31, 2019

Segment Reporting Disclosure [Text Block]

Note

- Business Segment Information

We report our results in

two

operating segments: Battery & Energy Products and Communications Systems. The Battery & Energy Products segment includes: Lithium

-volt, cylindrical and various other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems and accessories. The Communications Systems segment includes: RF amplifiers, power supplies, cable and connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, integrated communication systems for fixed or vehicle applications and communications and electronics systems design. We believe that reporting performance at the gross profit level is the best indicator of segment performance.

2019:

	Battery & Energy Products		Communications Systems		Corporate			Total
Revenue	$	83,996	$	22,799	$	-		$	106,795
Segment contribution		22,813		8,352		(23,797	)		7,368
Other expense						597			597
Income tax expense						1,457			1,457
Non-controlling interest						109			109
Net income attributable to Ultralife								$	5,205

Total assets	$	79,413	$	40,458	$	24,686		$	144,557
Capital expenditures	$	5,805	$	44	$	432		$	6,281
Goodwill	$	15,260	$	11,493		-		$	26,753
Depreciation and amortization of intangible assets	$	2,104	$	364	$	277		$	2,745
Stock-based compensation	$	355	$	119	$	279		$	753

2018:

	Battery & Energy Products		Communications Systems		Corporate			Total
Revenue	$	70,497	$	16,693	$	-		$	87,190
Segment contribution		19,574		6,009		(19,028	)		6,555
Other income						(58	)		(58	)
Income tax benefit						(18,386	)		(18,386	)
Non-controlling interest						69			69
Net income attributable to Ultralife								$	24,930

Total assets	$	50,648	$	27,482	$	42,718		$	120,848
Capital expenditures	$	2,948	$	614	$	623		$	4,185
Goodwill	$	8,616	$	11,493		-		$	20,109
Depreciation and amortization of intangible assets	$	1,611	$	375	$	383		$	2,369
Stock-based compensation	$	333	$	106	$	451		$	890

Long-lived assets (including goodwill and intangible assets) held outside the U.S., principally in the United Kingdom and China, were

$12,414

and

$11,502

December 31, 2019

and

2018,

respectively.

U.S. and Non-U.S. Revenue Information

201 9 :	Total Revenue		United States			Non-United States
Battery & Energy Products	$	83,996	$	42,224		$	41,772
Communications Systems		22,799		21,151			1,648
Total	$	106,795	$	63,375		$	43,420
				59	%		41	%

201 8 :	Total Revenue		United States			Non-United States
Battery & Energy Products	$	70,497	$	37,898		$	32,599
Communications Systems		16,693		15,156			1,537
Total	$	87,190	$	53,054		$	34,136
				61	%		39	%

Sales classified to U.S. include shipments to U.S.-based prime contractors which in some cases

may

serve non-U.S. projects

Commercial and Government/Defense Revenue Information:

201 9 :	Total Revenue		Commercial			Government/ Defense
Battery & Energy Products	$	83,996	$	59,682		$	24,314
Communications Systems		22,799		-			22,799
Total	$	106,795	$	59,682		$	47,113
				56	%		44	%

201 8 :	Total Revenue		Commercial			Government/ Defense
Battery & Energy Products	$	70,497	$	41,044		$	29,453
Communications Systems		16,693		-			16,693
Total	$	87,190	$	41,044		$	46,146
				47	%		53	%

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

b.	Principles of Consolidation

), and our majority-owned subsidiary Ultralife Batteries India Private Limited (“India JV”). Intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates, Policy [Policy Text Block]

c.	Management's Use of Judgment and Estimates

Reclassification, Policy [Policy Text Block]

d.	Reclassifications

Certain items previously reported in specific financial statement captions are reclassified to conform to the current presentation. There were

material reclassifications for the years ended

December 31, 2019

and

2018.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash

Our cash balances

may

at times exceed federally insured limits. We have

not

experienced any losses in these accounts and believe we are

not

exposed to any significant risk with respect to cash.

Receivable [Policy Text Block]

f.	Accounts Receivable and Allowance for Doubtful Accounts

We extend credit to our customers in the normal course of business. We perform ongoing credit evaluations and generally do

not

require collateral. Payment terms are generally

Inventory, Policy [Policy Text Block]

g.	Inventories

Inventories are stated at the lower of cost or net realizable value with cost determined under the

first

-in,

first

-out (FIFO) method. We record provisions for excess, obsolete or slow-moving inventory based on changes in customer demand, technology developments or other economic factors.

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

h.	Property, Plant and Equipment

Buildings	10	–	40
Machinery and Equipment	5	–	10
Furniture and Fixtures	3	–	10
Computer Hardware and Software	3	–	5
Leasehold Improvements	Lesser of useful life or lease term

Goodwill and Intangible Assets, Policy [Policy Text Block]

i.	Long-Lived Assets, Goodwill and Intangibles

We assess all of our long-lived assets for impairment when events or circumstances indicate that their carrying amounts

may

not

The purchase price paid to effect an acquisition is allocated to the acquired tangible and intangible assets and liabilities at fair value. We do

not

impaired. If the carrying amount of a reporting unit exceeds its fair value, a

second

Foreign Currency Transactions and Translations Policy [Policy Text Block]

j.	Translation of Foreign Currency

Revenue [Policy Text Block]

k .	Revenue Recognition

not

further obligations by the Company.

Revenues recognized from prior period performance obligations for the years ended

December 31, 2019

and

2018

were

not

material.

As of

December 31, 2019

and

2018,

the Company had

unsatisfied performance obligations for contracts with an original expected duration of greater than

one

year. Pursuant to Topic

606,

Deferred revenue, unbilled revenue and deferred contract costs recorded on our consolidated balance sheets as of

December 31, 2019

and

2018

were

not

material.

Guarantees, Indemnifications and Warranties Policies [Policy Text Block]

l.	Warranty Reserves

We generally offer standard warranties against product defects. We do

not

Shipping and Handling Costs [Policy Text Block]

m.	Shipping and Handling Costs

Costs incurred by us related to shipping and handling are included in cost of products sold. Amounts charged to customers pertaining to these costs are reflected as revenue.

Sales Commissions [Policy Text Block]

n.	Sales Commissions

Sales commissions are expensed as incurred for contracts with an expected duration of

one

year or less. There were

sales commissions capitalized as of

December 31, 2019

and

2018.

Research and Development Expense, Policy [Policy Text Block]

o.	Research and Development

December 31, 2019

and

2018,

we expended

$8,025

and

$5,230,

respectively, on research and development, including costs of

$1,220

and

$722,

respectively, on customer sponsored research and development activities, which are included in cost of goods sold.

Environmental Cost, Expense Policy [Policy Text Block]

p.	Environmental Costs

Income Tax, Policy [Policy Text Block]

q.	Income Taxes

740,

a valuation allowance is recognized when the realizability of deferred tax assets is

not

more likely than

not,

on the basis of all available evidence, both positive and negative, weighted based on objective verifiability.

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

r.	Concentration Related to Customers and Suppliers

We have

two

customers, both large defense primary contractors, which comprised

14%

and

12%

of our total revenues in

2019,

respectively, and

and

16%

of our total revenues in

2018,

respectively.

2019

revenues from these

two

customers represented

64%

of our total Communications Systems segment revenues and

15%

of our total Battery & Energy Products segment revenues.

2018

revenues from these

two

customers represented

34%

of our total Communications Systems segment revenues and

20%

of our total Battery & Energy Products segment revenues. There were

other customers that comprised greater than

10%

of our total revenues during these years.

Currently, we do

not

We generally do

not

2019

and

2018,

we do

not

consider this customer to be a significant credit risk.

may

Fair Value Measurement, Policy [Policy Text Block]

s.	Fair Value Measurements and Disclosures

three

levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level

Quoted prices in active markets for identical assets or liabilities.

Level

Observable inputs, other than Level

prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are

not

active; or other inputs that are observable or that we corroborate with observable market data for substantially the full term of the related assets or liabilities.

Level

Unobservable inputs supported by little or

market activity that are significant to the fair value of the assets or liabilities.

The fair value of financial instruments approximated their carrying values at

December 31, 2019

and

2018.

Earnings Per Share, Policy [Policy Text Block]

t.	Earnings Per Share

For the year ended

December 31, 2019,

the calculation of diluted EPS included

899,041

stock options and

31,666

restricted stock awards. Inclusion of these shares resulted in

396,536

additional shares in the calculation of diluted EPS. There were

642,751

outstanding stock options as of

December 31, 2019

excluded from the calculation of diluted EPS, as inclusion of these shares would have been anti-dilutive.

For the year ended

December 31, 2018,

the calculation of diluted EPS included

1,127,837

stock options and

17,500

restricted stock awards. Inclusion of these shares resulted in

465,004

additional shares in the calculation of diluted EPS. There were

448,250

outstanding stock options as of

December 31, 2018

excluded from the calculation of diluted EPS, as inclusion of these shares would have been anti-dilutive.

Share-based Payment Arrangement [Policy Text Block]

u.	Stock-Based Compensation

We have various stock-based employee compensation plans that are described more fully in Note

Segment Reporting, Policy [Policy Text Block]

v.	Segment Reporting

We have

two

New Accounting Pronouncements, Policy [Policy Text Block]

w.	Recent Accounting Pronouncements

Recently Adopted Accounting Guidance

Leases

Effective

January 1, 2019,

the Company adopted Accounting Standards Update

2016

–

Leases

(Topic

842

). Adoption of the new standard did

not

December 31, 2018

are presented below.

one

of our operating facilities.

not

separate non-lease components from lease components and to

not

present short-term leases on the balance sheet.

The impact on the consolidated balance sheet as of

December 31, 2018

is shown below.

Impact to Previously Reported Results

Consolidated Balance Sheet as of

December 31, 2018:

	As Previously Reported			Lease Standard Adjustment			As Adjusted
Other noncurrent assets	$	82		$	805		$	887
Prepaid expenses and other current assets		2,429			(61	)		2,368
Accrued expenses and other current liabilities		3,534			439			3,973
Other noncurrent liabilities		32			376			408
Accumulated deficit		(57,964	)		(71	)		(58,035	)

See Note

for further disclosure regarding lease accounting.

Recent

Accounting Guidance

Not

Yet Adopted

June 2016,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU")

2016

13,

Financial Instruments-Credit Losses (Topic

326

December 15, 2022.

The Company is currently assessing the impact that adopting this new accounting standard will have on our consolidated financial statements.

January 2017,

the FASB issued ASU

2017

04,

“Intangibles – Goodwill and Other (Topic

350

) – Simplifying the Test for Goodwill Impairment”, which eliminates the

two

December 15, 2019

and is to be applied on a prospective basis. The Company is currently assessing the impact that adopting this new accounting standard will have on our consolidated financial statements.

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

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment, Estimated Useful Life [Table Text Block]

Buildings	10	–	40
Machinery and Equipment	5	–	10
Furniture and Fixtures	3	–	10
Computer Hardware and Software	3	–	5
Leasehold Improvements	Lesser of useful life or lease term

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

	As Previously Reported			Lease Standard Adjustment			As Adjusted
Other noncurrent assets	$	82		$	805		$	887
Prepaid expenses and other current assets		2,429			(61	)		2,368
Accrued expenses and other current liabilities		3,534			439			3,973
Other noncurrent liabilities		32			376			408
Accumulated deficit		(57,964	)		(71	)		(58,035	)

Note 2 - Acquisition (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Cash	$	942
Accounts receivable		3,621
Inventories		4,685
Other current assets		431
Property, plant and equipment		9,177
Goodwill		6,534
Customer relationships		2,522
Trade name		1,127
Accounts payable		(1,060	)
Other current liabilities		(778	)
Deferred tax liability, net		(1,011	)
Net assets acquired	$	26,190

Business Acquisition, Pro Forma Information [Table Text Block]

	Years Ended December 31
	2019		2018
Revenue	$	115,590	$	115,566
Operating income		8,008		6,278
Net Income attributable to Ultralife Corporation		5,526		24,280
Net income per share attributable to Ultralife Corporation:
Basic	$	0.35	$	1.53
Diluted	$	0.34	$	1.49

Note 5 - Supplemental Balance Sheet Information (Tables)

12 Months Ended

Dec. 31, 2019

Cash, Cash Equivalents and Investments [Table Text Block]

	December 31
	201 9		201 8
Cash	$	7,135	$	25,583
Restricted cash		270		351
Total	$	7,405	$	25,934

Schedule of Inventory, Current [Table Text Block]

	December 31
	2019		2018
Raw materials	$	18,485	$	13,274
Work in process		2,548		2,016
Finished products		8,726		7,553
Total	$	29,759	$	22,843

Property, Plant and Equipment [Table Text Block]

	December 31
	2019			2018
Land	$	1,273		$	123
Buildings and leasehold improvements		8,148			8,267
Machinery and equipment		62,562			51,261
Furniture and fixtures		2,112			2,058
Computer hardware and software		6,528			5,590
Construction in progress		4,730			4,302
		85,353			71,601
Less – Accumulated depreciation		(62,828	)		(60,857	)
Total	$	22,525		$	10,744

Schedule of Goodwill [Table Text Block]

	Battery & Energy Products			Communications Systems		Total
Balance – January 1, 2018	$	8,965		$	11,493	$	20,458
Effect of foreign currency translation		(349	)		-		(349	)
Balance – December 31, 2018		8,616			11,493		20,109
Acquisition of SWE		6,534			-		6,534
Effect of foreign currency translation		110			-		110
Balance – December 31, 2019	$	15,260		$	11,493	$	26,753

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	December 31, 201 9
	Cost		Accumulated amortization		Net
Trademarks	$	3,403	$	-	$	3,403
Customer relationships		9,080		4,721		4,359
Patents and technology		5,521		4,869		652
Distributor relationships		377		377		-
Trade name		1,511		204		1,307
Total other intangible assets	$	19,892	$	10,171	$	9,721

	December 31, 201 8
	Cost		Accumulated a mortization		Net
Trademarks	$	3,405	$	-	$	3,405
Customer relationships		6,471		4,392		2,079
Patents and technology		5,486		4,725		761
Distributor relationships		377		377		-
Trade name		370		111		259
Total other intangible assets	$	16,109	$	9,605	$	6,504

Finite-lived Intangible Assets Amortization Expense [Table Text Block]

	Year ended December 31
	201 9		2018
Research and development expense	$	130	$	147
Selling, general and administrative expense		395		250
Total	$	525	$	397

Note 7 - Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

	Year ended December 31
	201 9		201 8
Stock options	$	623	$	817
Restricted stock grants		130		73
Total	$	753	$	890

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

	Year ended December 31
	2019			2018
Risk-free interest rate		1.8	%		2.6	%
Volatility factor		48.3	%		46.8	%
Weighted average expected life (years)		5.3			5.0
Forfeiture rate		10.0	%		10.0	%
Dividends		0.0	%		0.0	%

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

Year e nded December 31, 201 9
	Number of share s			Weighted average exercise price per share		Weighted average remaining contractual term		Aggregate intrinsic value
Shares under option – January 1		1,576,087		$	6.58
Options granted		282,500			8.27
Options exercised		(208,881	)		4.45
Options forfeited or expired		(107,914	)		10.93
Shares under option – December 31		1,541,792		$	6.88		3.21	$	1,991
Vested and expected to vest - December 31		1,445,563		$	6.79		3.04	$	1,959

Options exercisable – December 31		1,083,581		$	6.28		2.09	$	1,872

Year e nded December 31, 201 8
	Number of shares			Weighted average exercise price per share
Shares under option – January 1		1,860,211		$	5.96
Options granted		217,500			9.68
Options exercised		(422,793	)		4.49
Options forfeited or expired		(78,831	)		11.75
Shares under option – December 31		1,576,087		$	6.58

Options exercisable – December 31		1,064,127		$	5.89

Share-based Payment Arrangement, Option, Exercise Price Range [Table Text Block]

			Option outstanding						Options exercisable
Range of exercise prices			Number of outstanding options		Weighted- average remaining contractual life		Weighted- average exercise price		Number of options exercisable		Weighted- average exercise price
$3.22	-	$3.99		244,377		1.70	$	3.82		244,377	$	3.82
$4.00	-	$5.99		336,331		3.81		4.95		269,601		4.79
$6.00	-	$9.99		761,084		4.02		7.89		369,603		6.99
$10.00				200,000		1.00		10.00		200,000		10.00

$3.22	-	$10.00		1,541,792		3.21	$	6.88		1,083,581	$	6.28

Note 8 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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

	Year ended December 31
	2019			2018
Current:
Federal	$	-		$	-
State		43			-
Foreign		203			257
		246			257
Deferred:
Federal		1,236			(18,514	)
State		-			-
Foreign		(25	)		(129	)
		1,211			(18,643	)
Total income tax provision	$	1,457		$	(18,386	)

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

	December 31
	2019			2018
Deferred tax assets:
Property, plant and equipment	$	-		$	168
Net operating loss carryforwards		14,579			15,622
Tax credit carryforwards		1,907			1,817
Intangible assets		1,283			1,231
Accrued expenses, reserves and other		2,265			1,838
Total deferred tax assets		20,034			20,676
Valuation allowance for deferred tax assets		(1,942	)		(1,942	)
Net deferred tax assets		18,092			18,734

Deferred tax liabilities:
Other		-			(25	)
Property, plant and equipment		(342	)		-
Intangible assets		(5,087	)		(3,856	)
Total deferred tax liabilities		(5,429	)		(3,881	)

Net deferred tax assets	$	12,663		$	14,853

Schedule of Net Deferred Tax Liabilities [Table Text Block]

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="margin-right: 15%; margin-left: 54pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: thin solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2019</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2018</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 64%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Deferred tax assets</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,222</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,444</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Deferred tax liabilities</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(559</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(591</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;" nowrap="nowrap">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,663</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,853</div></td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> </table></div>

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

	Year ended December 31
	2019		2018
United States	$	5,992	$	6,226
Foreign		779		387
	$	6,771	$	6,613

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

	Year ended December 31
	2019			2018

Statutory income tax rate		21	%		21	%
(Increase) decrease in tax provision resulting from:
Equity compensation		(0.4	)		(2.9	)
Income tax credits		(0.4	)		(1.0	)
Foreign tax rates		(0.5	)		0.3
Valuation allowance		-			(297.3	)
Other		1.8			2.0
Effective income tax rate		21.5	%		(277.9	)%

Note 9 - Operating Leases (Tables)

12 Months Ended

Dec. 31, 2019

Lease, Cost [Table Text Block]

	Year ended December 31
	2019		2018
Operating lease cost	$	628	$	590
Variable lease cost		84		89
Total lease cost	$	712	$	679

Lessee, Lease, Cash Flow Information [Table Text Block]

	Year ended December 31
	2019		2018
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	611	$	592
Right-of-use assets obtained in exchange for lease liabilities:	$	1,586	$	-

Lessee, Lease, Balance Sheet Information [Table Text Block]

		December 31
	Balance Sheet Classification	2019			2018
Assets:
Operating lease right-of-use asset	Other noncurrent assets	$	1,866		$	805

Liabilities:
Current operating lease liability	Accrued expenses and other current liabilities	$	620		$	439
Operating lease liability, net of current portion	Other noncurrent liabilities		1,247			376
Total operating lease liability		$	1,867		$	815

Weighted-average remaining lease term (years)			3.7			2.1

Weighted-average discount rate			4.5	%		4.5	%

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Maturity of Operating Lease Liabilities
2020		685
2021		470
2022		355
2023		364
2024		182
Thereafter		0
Total lease payments		2,056
Less: Imputed interest		(189	)
Present value of remaining lease payments	$	1,867

Note 11 - Business Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Battery & Energy Products		Communications Systems		Corporate			Total
Revenue	$	83,996	$	22,799	$	-		$	106,795
Segment contribution		22,813		8,352		(23,797	)		7,368
Other expense						597			597
Income tax expense						1,457			1,457
Non-controlling interest						109			109
Net income attributable to Ultralife								$	5,205

Total assets	$	79,413	$	40,458	$	24,686		$	144,557
Capital expenditures	$	5,805	$	44	$	432		$	6,281
Goodwill	$	15,260	$	11,493		-		$	26,753
Depreciation and amortization of intangible assets	$	2,104	$	364	$	277		$	2,745
Stock-based compensation	$	355	$	119	$	279		$	753

	Battery & Energy Products		Communications Systems		Corporate			Total
Revenue	$	70,497	$	16,693	$	-		$	87,190
Segment contribution		19,574		6,009		(19,028	)		6,555
Other income						(58	)		(58	)
Income tax benefit						(18,386	)		(18,386	)
Non-controlling interest						69			69
Net income attributable to Ultralife								$	24,930

Total assets	$	50,648	$	27,482	$	42,718		$	120,848
Capital expenditures	$	2,948	$	614	$	623		$	4,185
Goodwill	$	8,616	$	11,493		-		$	20,109
Depreciation and amortization of intangible assets	$	1,611	$	375	$	383		$	2,369
Stock-based compensation	$	333	$	106	$	451		$	890

Revenue from External Customers by Geographic Areas [Table Text Block]

201 9 :	Total Revenue		United States			Non-United States
Battery & Energy Products	$	83,996	$	42,224		$	41,772
Communications Systems		22,799		21,151			1,648
Total	$	106,795	$	63,375		$	43,420
				59	%		41	%

201 8 :	Total Revenue		United States			Non-United States
Battery & Energy Products	$	70,497	$	37,898		$	32,599
Communications Systems		16,693		15,156			1,537
Total	$	87,190	$	53,054		$	34,136
				61	%		39	%

Schedule of Revenues from External Customers by Business Segment Sector [Table Text Block]

201 9 :	Total Revenue		Commercial			Government/ Defense
Battery & Energy Products	$	83,996	$	59,682		$	24,314
Communications Systems		22,799		-			22,799
Total	$	106,795	$	59,682		$	47,113
				56	%		44	%

201 8 :	Total Revenue		Commercial			Government/ Defense
Battery & Energy Products	$	70,497	$	41,044		$	29,453
Communications Systems		16,693		-			16,693
Total	$	87,190	$	41,044		$	46,146
				47	%		53	%

Note 1 - Summary of Options and Significant Accounting Policies (Details Textual) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) shares	Dec. 31, 2018 USD ($) shares
Research and Development Expense, Gross \| $	$ 8,025	$ 5,230
Customer Funded Research and Development Expense Included in Cost of Goods Sold \| $	$ 1,220	$ 722
Weighted Average Number Diluted Shares Outstanding Adjustment, Total	396,536	465,004
Number of Operating Segments	2
Share-based Payment Arrangement, Option [Member]
Incremental Common Shares Attributable to Share-based Payment Arrangements, Total	899,041	1,127,837
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	642,751	448,250
Restricted Stock [Member]
Incremental Common Shares Attributable to Share-based Payment Arrangements, Total	31,666	17,500
Customer Concentration Risk [Member] \| Revenue Benchmark [Member]
Number of Major Customers	2	2
Customer Concentration Risk [Member] \| Revenue Benchmark [Member] \| Large Defense Primary Contractor, 1 [Member]
Concentration Risk, Percentage	14.00%	7.00%
Customer Concentration Risk [Member] \| Revenue Benchmark [Member] \| Large Defense Primary Contractor, 2 [Member]
Concentration Risk, Percentage	12.00%	16.00%
Customer Concentration Risk [Member] \| Revenue, Segment Benchmark [Member]
Number of Major Customers	2	2
Customer Concentration Risk [Member] \| Revenue, Segment Benchmark [Member] \| Two Customers [Member] \| Communications Systems Segment [Member]
Concentration Risk, Percentage	64.00%	34.00%
Customer Concentration Risk [Member] \| Revenue, Segment Benchmark [Member] \| Two Customers [Member] \| Battery & Energy Products Segment [Member]
Concentration Risk, Percentage	15.00%	20.00%

Note 1 - Summary of Operations and Significant Accounting Policies - Property, Plant and Equipment Estimated Useful Life (Details)	12 Months Ended
	Dec. 31, 2019
Building [Member] \| Minimum [Member]
Estimated useful lives (Year)	10 years
Building [Member] \| Maximum [Member]
Estimated useful lives (Year)	40 years
Machinery and Equipment [Member] \| Minimum [Member]
Estimated useful lives (Year)	5 years
Machinery and Equipment [Member] \| Maximum [Member]
Estimated useful lives (Year)	10 years
Furniture and Fixtures [Member] \| Minimum [Member]
Estimated useful lives (Year)	3 years
Furniture and Fixtures [Member] \| Maximum [Member]
Estimated useful lives (Year)	10 years
Computer Equipment [Member] \| Minimum [Member]
Estimated useful lives (Year)	3 years
Computer Equipment [Member] \| Maximum [Member]
Estimated useful lives (Year)	5 years
Leasehold Improvements [Member]
Leasehold Improvements	Lesser of useful life or lease term

Note 1 - Summary of Operations and Significant Accounting Policies - Impact to Previously Reported Results (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Other noncurrent assets	$ 1,963	$ 887
Prepaid expenses and other current assets	3,103	2,368
Accrued expenses and other current liabilities		3,973
Other noncurrent liabilities	1,278	408
Accumulated deficit	$ (52,830)	(58,035)
Previously Reported [Member]
Other noncurrent assets		82
Prepaid expenses and other current assets		2,429
Accrued expenses and other current liabilities		3,534
Other noncurrent liabilities		32
Accumulated deficit		(57,964)
Restatement Adjustment [Member] \| Accounting Standards Update 2016-02 [Member]
Other noncurrent assets		805
Prepaid expenses and other current assets		(61)
Accrued expenses and other current liabilities		439
Other noncurrent liabilities		376
Accumulated deficit		$ (71)

Note 2 - Acquisition (Details Textual) - USD ($) $ in Thousands		12 Months Ended
	May 01, 2019	Dec. 31, 2019	Dec. 31, 2018
Payments to Acquire Businesses, Net of Cash Acquired, Total		$ 25,248
Payments of Debt Issuance Costs		157
Southwest Electronic Energy Corporation [Member]
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual		18,746
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual		1,238
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory		264
Business Combination, Acquisition Related Costs		165
Southwest Electronic Energy Corporation [Member]
Business Acquisition, Percentage of Voting Interests Acquired	100.00%
Payments to Acquire Businesses, Net of Cash Acquired, Total	$ 26,190
Cash Acquired from Acquisition	$ 942
Business Combination, Acquisition Related Costs		322
Business Combination, Interest Expense, Financing		453
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles		161
Payments of Debt Issuance Costs		$ 157
Long-term Debt, Weighted Average Term		4 years 219 days
Southwest Electronic Energy Corporation [Member] \| Accounting, Legal, and Due Diligence Services [Member]
Business Combination, Acquisition Related Costs		$ 165

Note 2 - Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2019	May 01, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill	$ 26,753		$ 20,109	$ 20,458
Southwest Electronic Energy Corporation [Member]
Cash		$ 942
Accounts receivable		3,621
Inventories		4,685
Other current assets		431
Property, plant and equipment		9,177
Goodwill		6,534
Accounts payable		(1,060)
Other current liabilities		(778)
Deferred tax liability, net		(1,011)
Net assets acquired		26,190
Southwest Electronic Energy Corporation [Member] \| Customer Relationships [Member]
Intangible assets		2,522
Southwest Electronic Energy Corporation [Member] \| Trade Names [Member]
Intangible assets		$ 1,127

Note 2 - Acquisition - Pro Forma Information (Details) - Southwest Electronic Energy Corporation [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue	$ 115,590	$ 115,566
Operating income	8,008	6,278
Net Income attributable to Ultralife Corporation	$ 5,526	$ 24,280
Basic (in dollars per share)	$ 0.35	$ 1.53
Diluted (in dollars per share)	$ 0.34	$ 1.49

Note 3 - Debt (Details Textual) $ in Thousands		12 Months Ended
Note 3 - Debt (Details Textual) $ in Thousands	May 01, 2019 USD ($) Rate	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	May 31, 2019
Proceeds from Long-term Lines of Credit		$ 10,182
Term Loan Facility [Member]
Debt Instrument, Number of Monthly Payment				60
Amended Credit Agreement [Member]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months		1,420
Long-term Debt, Maturities, Repayments of Principal in Year Two		11,650
Long-term Debt, Maturities, Repayments of Principal in Year Three		1,519
Long-term Debt, Maturities, Repayments of Principal in Year Four		1,355
Amended Credit Agreement [Member] \| Term Loan Facility [Member]
Secured Debt, Total		$ 7,134
Debt Instrument, Interest Rate, Effective Percentage		3.41%
Amended Credit Agreement [Member] \| Term Loan Facility [Member] \| Long-term Debt, Current Maturities [Member]
Secured Debt, Total		$ 1,372
Amended Credit Agreement [Member] \| Revolving Credit Facility [Member]
Proceeds from Long-term Lines of Credit	$ 6,782
Long-term Line of Credit, Total		10,182
Debt Issuance Costs, Gross		$ 164
Minimum Fixed Charge Coverage Ratio	1.15
Maximum Consolidated Senior Leverage Ratio \| Rate	250.00%
Debt Instrument, Interest Rate, Effective Percentage		3.56%
Amended Credit Agreement [Member] \| Revolving Credit Facility [Member] \| Minimum [Member]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.10%
Amended Credit Agreement [Member] \| Revolving Credit Facility [Member] \| Maximum [Member]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.20%
Amended Credit Agreement [Member] \| Revolving Credit Facility [Member] \| Fed Funds Effective Rate Overnight Index Swap Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Amended Credit Agreement [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Amended Credit Agreement [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	1.85%
Amended Credit Agreement [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	2.15%
Amended Credit Agreement [Member] \| Revolving Credit Facility [Member] \| Base Rate [Member] \| Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	0.00%
Amended Credit Agreement [Member] \| Revolving Credit Facility [Member] \| Base Rate [Member] \| Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	(0.50%)
KeyBank [Member] \| Amended Credit Agreement [Member] \| Term Loan Facility [Member]
Debt Instrument, Term	5 years
Debt Instrument, Face Amount	$ 8,000
KeyBank [Member] \| Amended Credit Agreement [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	30,000
Line Of Credit Facility Maximum Borrowing Capacity Contingent On Bank Approval	$ 50,000

Note 4 - Share Repurchase Program (Details Textual) - USD ($) $ in Thousands	12 Months Ended		14 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Nov. 01, 2018
Treasury Stock, Shares, Acquired	267,300		372,974
Treasury Stock, Value, Acquired, Cost Method	$ 1,957	$ 742	$ 2,699
Maximum [Member]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased				2,500,000

Note 5 - Supplemental Balance Sheet Information (Details Textual) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance	$ 7,405	$ 25,934	$ 18,330
Restricted Cash and Cash Equivalents, Total	270	351
Revenues, Total	106,795	87,190
Depreciation, Total	$ 2,220	1,972
Number of Reporting Units	5
Goodwill, Impairment Loss	$ 0	0
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	360
Finite-Lived Intangible Assets, Amortization Expense, Year Two	341
Finite-Lived Intangible Assets, Amortization Expense, Year Three	326
Finite-Lived Intangible Assets, Amortization Expense, Year Four	323
Finite-Lived Intangible Assets, Amortization Expense, Year Five	313
Grant [Member]
Revenues, Total	78
CHINA
Restricted Cash and Cash Equivalents, Total	188	266
NETHERLANDS
Restricted Cash and Cash Equivalents, Total	$ 82	$ 85

Note 5 - Supplemental Balance Sheet Information - Cash and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash	$ 7,135	$ 25,583
Restricted cash	270	351
Total	$ 7,405	$ 25,934	$ 18,330

Note 5 - Supplemental Balance Sheet Information - Components of Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Raw materials	$ 18,485	$ 13,274
Work in process	2,548	2,016
Finished products	8,726	7,553
Total	$ 29,759	$ 22,843

Note 5 - Supplemental Balance Sheet Information - Components of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property, plant and equipment, gross	$ 85,353	$ 71,601
Less – Accumulated depreciation	(62,828)	(60,857)
Total	22,525	10,744
Land [Member]
Property, plant and equipment, gross	1,273	123
Building and Building Improvements [Member]
Property, plant and equipment, gross	8,148	8,267
Machinery and Equipment [Member]
Property, plant and equipment, gross	62,562	51,261
Furniture and Fixtures [Member]
Property, plant and equipment, gross	2,112	2,058
Computer Equipment [Member]
Property, plant and equipment, gross	6,528	5,590
Construction in Progress [Member]
Property, plant and equipment, gross	$ 4,730	$ 4,302

Note 5 - Supplemental Balance Sheet Information - Summary of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Goodwill balance	$ 20,109	$ 20,458
Effect of foreign currency translation	110	(349)
Acquisition of SWE	6,534
Goodwill balance	26,753	20,109
Battery & Energy Products Segment [Member]
Goodwill balance	8,616	8,965
Effect of foreign currency translation	110	(349)
Acquisition of SWE	6,534
Goodwill balance	15,260	8,616
Communications Systems Segment [Member]
Goodwill balance	11,493	11,493
Effect of foreign currency translation
Acquisition of SWE
Goodwill balance	$ 11,493	$ 11,493

Note 5 - Supplemental Balance Sheet Information - Composition of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Cost	$ 19,892	$ 16,109
Accumulated Amortization	10,171	9,605
Net	9,721	6,504
Trademarks [Member]
Cost	3,403	3,405
Accumulated Amortization	0	0
Net	3,403	3,405
Customer Relationships [Member]
Cost	9,080	6,471
Accumulated Amortization	4,721	4,392
Net	4,359	2,079
Patented Technology [Member]
Cost	5,521	5,486
Accumulated Amortization	4,869	4,725
Net	652	761
Distributor Relationships [Member]
Cost	377	377
Accumulated Amortization	377	377
Net
Trade Names [Member]
Cost	1,511	370
Accumulated Amortization	204	111
Net	$ 1,307	$ 259

Note 6 - Commitments and Contingencies - Changes in Produce Warranty Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Balance, January 1	$ 95	$ 149
Assumed warranty obligations – SWE	145
Provision for warranties issued	114	7
Settlements made	(159)	(61)
Balance, December 31	$ 195	$ 95

Note 7 - Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended			3 Months Ended	12 Months Ended
	Jul. 25, 2018	Dec. 30, 2010	Apr. 30, 2019	Jan. 31, 2018	Jun. 30, 2014	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2004
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance							1,541,792	1,576,087	1,860,211
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross							282,500	217,500
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price							$ 8.27	$ 9.68
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount							$ 737
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition							1 year 73 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value							$ 3.77	$ 4.22
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value							$ 931	$ 1,722
Proceeds from Stock Options Exercised							$ 930	$ 1,568
Common Stock, Capital Shares Reserved for Future Issuance							486,272
Restricted Stock [Member]
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount							$ 145
The 2004 Long-term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized							2,900,000			750,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance							610,628	931,164
The 2004 Long-term Incentive Plan [Member] \| President [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		5 years
Option Accelerated Vesting, Stock Price Trigger	$ 10
Option Accelerated Vesting, Threshold Trading Days	15 days
Share-based Payment Arrangement, Accelerated Cost						$ 182
The 2004 Long-term Incentive Plan [Member] \| Options I [Member] \| President [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		50,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 6.42
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Incremental Vesting Shares		12,500
The 2004 Long-term Incentive Plan [Member] \| Options II [Member] \| President [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		250,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 6.42
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Incremental Vesting Shares		62,500
The 2004 Long-term Incentive Plan [Member] \| Options III [Member] \| President [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		200,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 10
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Incremental Vesting Shares		50,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Minimum Closing Share Price		$ 10
The 2004 Long-term Incentive Plan [Member] \| Options IV [Member] \| President [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		200,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 15
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Incremental Vesting Shares		50,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Minimum Closing Share Price		$ 15
The 2014 Long-term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized					1,750,000
The 2014 Long-term Incentive Plan [Member] \| Awards Other than Stock Options and SARs [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized					800,000
The 2014 Long-term Incentive Plan [Member] \| Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				3 years
Stock Issued During Period, Shares, Restricted Stock Award, Gross			20,000	17,500
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 11.12	$ 7.16
Incentive Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period					7 years

Note 7 - Stock-based Compensation - Stock Option Assumptions (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Risk-free interest rate	1.80%	2.60%
Volatility factor	48.30%	46.80%
Weighted Average Expected Life (Year)	5 years 109 days	5 years
Forfeiture rate	10.00%	10.00%
Dividends	0.00%	0.00%

Note 7 - Shareholders' Equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Shares under Option, beginning of period (in shares)	1,576,087	1,860,211
Options outstanding - weighted average exercise price (in dollars per share)	$ 6.58	$ 5.96
Options granted (in shares)	282,500	217,500
Options granted - weighted average exercise price (in dollars per share)	$ 8.27	$ 9.68
Options exercised (in shares)	(208,881)	(422,793)
Options exercised - weighted average exercise price (in dollars per share)	$ 4.45	$ 4.49
Options forfeited or expired (in shares)	(107,914)	(78,831)
Options forfeited or expired - weighted average exercise price (in dollars per share)	$ 10.93	$ 11.75
Shares under option, end of period (in shares)	1,541,792	1,576,087
Options outstanding - weighted average exercise price (in dollars per share)	$ 6.88	$ 6.58
Options outstanding - weighted average remaining contractual term (Year)	3 years 76 days
Options outstanding - aggregate intrinsic value	$ 1,991
Vested and Expected to Vest (in shares)	1,445,563
Options vested and expected to vest - weighted average exercise price (in dollars per share)	$ 6.79
Options vested and expected to vest - weighted average remaining contractual term (Year)	3 years 14 days
Options vested and expected to vest - aggregate intrinsic value	$ 1,959
Options Exercisable (in shares)	1,083,581	1,064,127
Options exercisable, weighted-average exercise price (in dollars per share)	$ 6.28	$ 5.89
Options exercisable - weighted average remaining contractual term (Year)	2 years 32 days
Options exercisable - aggregate intrinsic value	$ 1,872

Note 7 - Shareholders' Equity - Options Range of Exercise Prices (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Lower range limit (in dollars per share)	$ 3.22
Upper range limit (in dollars per share)	$ 10
Options outstanding, number of outstanding options (in shares)	1,541,792
Options outstanding, weighted-average remaining contractual life (Year)	3 years 76 days
Options outstanding, weighted-average exercise price (in dollars per share)	$ 6.88
Options exercisable, number of options exercisable (in shares)	1,083,581
Options exercisable, weighted-average exercise price (in dollars per share)	$ 6.28	$ 5.89
Range One [Member]
Lower range limit (in dollars per share)	3.22
Upper range limit (in dollars per share)	$ 3.99
Options outstanding, number of outstanding options (in shares)	244,377
Options outstanding, weighted-average remaining contractual life (Year)	1 year 255 days
Options outstanding, weighted-average exercise price (in dollars per share)	$ 3.82
Options exercisable, number of options exercisable (in shares)	244,377
Options exercisable, weighted-average exercise price (in dollars per share)	$ 3.82
Range Two [Member]
Lower range limit (in dollars per share)	4
Upper range limit (in dollars per share)	$ 5.99
Options outstanding, number of outstanding options (in shares)	336,331
Options outstanding, weighted-average remaining contractual life (Year)	3 years 295 days
Options outstanding, weighted-average exercise price (in dollars per share)	$ 4.95
Options exercisable, number of options exercisable (in shares)	269,601
Options exercisable, weighted-average exercise price (in dollars per share)	$ 4.79
Range Three [Member]
Lower range limit (in dollars per share)	6
Upper range limit (in dollars per share)	$ 9.99
Options outstanding, number of outstanding options (in shares)	761,084
Options outstanding, weighted-average remaining contractual life (Year)	4 years 7 days
Options outstanding, weighted-average exercise price (in dollars per share)	$ 7.89
Options exercisable, number of options exercisable (in shares)	369,603
Options exercisable, weighted-average exercise price (in dollars per share)	$ 6.99
Range Four [Member]
Lower range limit (in dollars per share)	10
Upper range limit (in dollars per share)	$ 10
Options outstanding, number of outstanding options (in shares)	200,000
Options outstanding, weighted-average remaining contractual life (Year)	1 year
Options outstanding, weighted-average exercise price (in dollars per share)	$ 10
Options exercisable, number of options exercisable (in shares)	200,000
Options exercisable, weighted-average exercise price (in dollars per share)	$ 10

Note 8 - Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Expense (Benefit), Total	$ 1,457	$ (18,386)
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount		18,652
Unrecognized Tax Benefits, Ending Balance	0	$ 0
General Business Tax Credit Carryforward [Member]
Tax Credit Carryforward, Amount	1,907
Domestic Tax Authority [Member] \| Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards, Total	$ 58,400
Open Tax Year	2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019
Foreign Tax Authority [Member]
Open Tax Year	2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Foreign Tax Authority [Member] \| Her Majesty's Revenue and Customs (HMRC) [Member]
Operating Loss Carryforwards, Total	$ 10,600
State and Local Jurisdiction [Member]
Open Tax Year	2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019

Note 8 - Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Federal
State	43
Foreign	203	257
Total current tax provision	246	257
Federal	1,236	(18,514)
State
Foreign	(25)	(129)
Total deferred tax provision (benefit)	1,211	(18,643)
Total income tax provision	$ 1,457	$ (18,386)

Note 8 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property, plant and equipment		$ 168
Net operating loss carryforwards	14,579	15,622
Tax credit carryforwards	1,907	1,817
Intangible assets	1,283	1,231
Accrued expenses, reserves and other	2,265	1,838
Total deferred tax assets	20,034	20,676
Valuation allowance for deferred tax assets	(1,942)	(1,942)
Net deferred tax assets	18,092	18,734
Other		(25)
Property, plant and equipment	342
Intangible assets	(5,087)	(3,856)
Total deferred tax liabilities	(5,429)	(3,881)
Net deferred tax assets	$ 12,663	$ 14,853

Note 8 - Income Taxes - Net Deferred Tax Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets	$ 13,222	$ 15,444
Deferred tax liabilities	(559)	(591)
Net Deferred Tax Assets	$ 12,663	$ 14,853

Note 8 - Income Taxes - United States and Foreign Income (Loss) From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
United States	$ 5,992	$ 6,226
Foreign	779	387
Income Before Income Taxes	$ 6,771	$ 6,613

Note 8 - Income Taxes - Effective Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Statutory income tax rate	21.00%	21.00%
Equity compensation	(0.40%)	(2.90%)
Income tax credits	(0.40%)	(1.00%)
Foreign tax rates	(0.50%)	0.30%
Valuation allowance		(297.30%)
Other	1.80%	2.00%
Effective income tax rate	21.50%	(277.90%)

Note 9 - Operating Leases - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Operating lease cost	$ 628	$ 590
Variable lease cost	84	89
Total lease cost	$ 712	$ 679

Note 9 - Operating Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Operating lease right-of-use asset	$ 1,866	$ 805
Current operating lease liability	620	439
Operating lease liability, net of current portion	1,247	376
Total operating lease liability	$ 1,867	$ 815
Weighted-average remaining lease term (years) (Year)	3 years 255 days	2 years 36 days
Weighted-average discount rate	4.50%	4.50%

Note 9 - Operating Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
2020	$ 685
2021	470
2022	355
2023	364
2024	182
Thereafter	0
Total lease payments	2,056
Less: Imputed interest	(189)
Present value of remaining lease payments	$ 1,867	$ 815

Note 11 - Business Segment Information - Segment Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue	$ 106,795	$ 87,190
Segment contribution	7,368	6,555
Other income (expense)	597	(58)
Income tax provision (benefit)	1,457	(18,386)
Non-controlling interest	109	69
Net income attributable to Ultralife	5,205	24,930
Total assets	144,557	120,848
Capital expenditures	6,281	4,185
Goodwill	26,753	20,109	$ 20,458
Depreciation and amortization of intangible assets	2,745	2,369
Stock-based compensation	753	890
Battery & Energy Products Segment [Member]
Revenue	83,996	70,497
Segment contribution	22,813	19,574
Total assets	79,413	50,648
Capital expenditures	5,805	2,948
Goodwill	15,260	8,616	8,965
Depreciation and amortization of intangible assets	2,104	1,611
Stock-based compensation	355	333
Communications Systems Segment [Member]
Revenue	22,799	16,693
Segment contribution	8,352	6,009
Total assets	40,458	27,482
Capital expenditures	44	614
Goodwill	11,493	11,493	$ 11,493
Depreciation and amortization of intangible assets	364	375
Stock-based compensation	119	106
Corporate Segment [Member]
Revenue
Segment contribution	(23,797)	(19,028)
Other income (expense)	597	(58)
Income tax provision (benefit)	1,457	(18,386)
Non-controlling interest	109	69
Total assets	24,686	42,718
Capital expenditures	432	623
Goodwill
Depreciation and amortization of intangible assets	277	383
Stock-based compensation	$ 279	$ 451

Note 11 - Business Segment Information - Domestic and International Revenue by Segment (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

^[1]

$ 106,795

$ 87,190

^[1]

UNITED STATES

^[1]

$ 63,375

$ 53,054

^[1]

59.00%

61.00%

Non-US [Member]

^[1]

$ 43,420

$ 34,136

Battery & Energy Products Segment [Member]

^[1]

41.00%

39.00%

Battery & Energy Products Segment [Member] | UNITED STATES

^[1]

$ 83,996

$ 70,497

Battery & Energy Products Segment [Member] | Non-US [Member]

^[1]

42,224

37,898

Communications Systems Segment [Member]

^[1]

41,772

32,599

Communications Systems Segment [Member] | UNITED STATES

^[1]

22,799

16,693

Communications Systems Segment [Member] | Non-US [Member]

^[1]

21,151

15,156

^[1]

$ 1,648

$ 1,537

[1]	Sales classified to U.S. include shipments to U.S.-based prime contractors which in some cases may serve non-U.S. projects

Note 11 - Business Segment Information - Revenue by Business Segment Sector (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

^[1]

$ 106,795

$ 87,190

^[1]

Commercial [Member]

$ 59,682

$ 41,044

Government & Defense [Member]

56.00%

47.00%

$ 47,113

$ 46,146

Battery & Energy Products Segment [Member]

44.00%

53.00%

Battery & Energy Products Segment [Member] | Commercial [Member]

^[1]

$ 83,996

$ 70,497

Battery & Energy Products Segment [Member] | Government & Defense [Member]

59,682

41,044

Communications Systems Segment [Member]

24,314

29,453

Communications Systems Segment [Member] | Commercial [Member]

^[1]

22,799

16,693

Communications Systems Segment [Member] | Government & Defense [Member]