Document and Entity Information
Document and Entity Information - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Jun. 10, 2024 | Sep. 30, 2022 | |
Cover [Abstract] | |||
Entity Central Index Key | 0001009759 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2023 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-15957 | ||
Entity Registrant Name | CAPSTONE GREEN ENERGY HOLDINGS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-1514270 | ||
Entity Address, Address Line One | 16640 Stagg Street | ||
Entity Address, City or Town | Van Nuys | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 91406 | ||
City Area Code | 818 | ||
Local Phone Number | 734-5300 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Entity Listing, Par Value Per Share | $ 0.001 | ||
No Trading Symbol Flag | true | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | true | ||
Document Financial Statement Restatement Recovery Analysis [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 32.9 | ||
Entity Common Stock, Shares Outstanding | 18,546,649 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | Marcum LLP | ||
Auditor Firm ID | 688 | ||
Auditor Location | Los Angeles, CA |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 12,839 | $ 22,559 |
Accounts receivable, net of allowances of $4,813 at March 31, 2023 and $586 at March 31, 2022 | 7,102 | 15,894 |
Inventories, net | 37,328 | 30,167 |
Prepaid expenses and other current assets | 7,447 | 5,519 |
Total current assets | 64,716 | 74,139 |
Property, plant, equipment and rental assets, net | 24,275 | 17,792 |
Finance lease right-of-use assets | 4,529 | 246 |
Operating lease right-of-use assets | 8,808 | 5,959 |
Non-current portion of inventories | 3,112 | 1,680 |
Other assets | 2,591 | 2,676 |
Total assets | 108,031 | 102,492 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 30,290 | 25,130 |
Accrued salaries and wages | 1,223 | 1,147 |
Accrued warranty reserve | 1,576 | 1,483 |
Deferred revenue | 23,372 | 14,835 |
Finance lease liability, current | 773 | 89 |
Operating lease liability, current | 2,492 | 586 |
Factory protection plan liability | 10,844 | 9,170 |
Term note payable | 50,983 | 50,949 |
Total current liabilities | 121,553 | 103,389 |
Deferred revenue, non-current | 817 | 981 |
Finance lease liability, non-current | 2,903 | 190 |
Operating lease liability, non-current | 6,588 | 5,619 |
Other non-current liabilities | 265 | |
Total liabilities | 132,126 | 110,179 |
Commitments and contingencies (Note 13) | ||
Stockholders' (Deficiency) Equity: | ||
Preferred stock, $.001 par value; 1,000,000 shares authorized; none issued | ||
Common stock, $.001 par value; 51,500,000 shares authorized, 18,511,555 shares issued and 18,394,541 shares outstanding at March 31, 2023; 15,398,368 shares issued and 15,296,735 shares outstanding at March 31, 2022 | 18 | 15 |
Additional paid-in capital | 955,228 | 946,969 |
Accumulated deficit | (977,202) | (952,583) |
Treasury stock, at cost; 117,014 shares at March 31, 2023 and 101,633 shares at March 31, 2022 | (2,139) | (2,088) |
Total stockholders' (deficiency) equity | (24,095) | (7,687) |
Total liabilities and stockholders' (deficiency) equity | $ 108,031 | $ 102,492 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Accounts receivable, allowances | ||
Accounts receivable, allowances | $ 4,813 | $ 586 |
Preferred stock | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 51,500,000 | 51,500,000 |
Common stock, shares issued (in shares) | 18,511,555 | 15,398,368 |
Common stock, shares outstanding (in shares) | 18,394,541 | 15,296,735 |
Treasury stock | ||
Treasury stock, shares (in shares) | 117,014 | 101,633 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue, net: | ||||||||
Total revenue, net | $ 21,010 | $ 20,124 | $ 18,765 | $ 38,889 | $ 59,899 | $ 73,882 | $ 63,964 | |
Cost of goods sold: | ||||||||
Total cost of goods sold | 19,310 | 16,734 | 16,251 | 32,985 | 52,295 | 64,818 | 58,323 | |
Gross profit | 1,700 | 3,390 | 2,514 | 5,904 | 7,604 | 9,064 | 5,641 | |
Operating expenses: | ||||||||
Research and development | 633 | 603 | 490 | 1,093 | 1,726 | 2,376 | 3,359 | |
Selling, general and administrative | 5,597 | 5,107 | 4,919 | 10,026 | 15,623 | 25,148 | 22,242 | |
Total operating expenses | 6,230 | 5,710 | 5,409 | 11,119 | 17,349 | 27,524 | 25,601 | |
Loss from operations | (4,530) | (2,320) | (2,895) | (5,215) | (9,745) | (18,460) | (19,960) | |
Other income (expense) | 5 | (50) | 2 | (48) | (43) | (33) | 642 | |
Interest income | 42 | 26 | 6 | 32 | 74 | 141 | 21 | |
Interest expense | 1,853 | 1,305 | 1,311 | 2,616 | 4,469 | (6,163) | (5,004) | |
Gain on debt extinguishment | $ 1,900 | 1,950 | ||||||
Loss before provision for income taxes | (6,336) | (3,649) | (4,198) | (7,847) | (14,183) | (24,515) | (22,351) | |
Provision for income taxes | 4 | 2 | 6 | 6 | 7 | 19 | ||
Net loss | (6,336) | (3,653) | (4,200) | (7,853) | (14,189) | (24,522) | (22,370) | |
Less: Deemed dividend on purchase warrant for common shares | 97 | 97 | 97 | 97 | ||||
Net loss attributable to common stockholders | $ (6,336) | $ (3,750) | $ (4,200) | $ (7,950) | $ (14,286) | $ (24,619) | $ (22,370) | |
Net loss per common share attributable to common stockholders-basic (in dollars per share) | $ (0.35) | $ (0.22) | $ (0.27) | $ (0.50) | $ (0.85) | $ (1.43) | $ (1.52) | |
Net loss per common share attributable to common stockholders-diluted (in dollars per share) | $ (0.35) | $ (0.22) | $ (0.27) | $ (0.50) | $ (0.85) | $ (1.43) | $ (1.52) | |
Weighted average shares used to calculate basic net loss per common share attributable to common stockholders (in shares) | 18,351 | 16,785 | 15,318 | 16,056 | 16,824 | 17,206,000 | 14,727,000 | |
Weighted average shares used to calculate diluted net loss per common share attributable to common stockholders (in shares) | 18,351 | 16,785 | 15,318 | 16,056 | 16,824 | 17,206,000 | 14,727,000 | |
Product and accessories | ||||||||
Revenue, net: | ||||||||
Total revenue, net | $ 11,427 | $ 9,594 | $ 9,534 | $ 19,128 | $ 30,555 | $ 35,033 | $ 32,720 | |
Cost of goods sold: | ||||||||
Total cost of goods sold | 12,467 | 11,044 | 9,769 | 20,813 | 33,280 | 39,938 | 37,106 | |
Parts, service and rentals | ||||||||
Revenue, net: | ||||||||
Total revenue, net | 9,583 | 10,530 | 9,231 | 19,761 | 29,344 | 38,849 | 31,244 | |
Cost of goods sold: | ||||||||
Total cost of goods sold | $ 6,843 | $ 5,690 | $ 6,482 | $ 12,172 | $ 19,015 | $ 24,880 | $ 21,217 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIENCY) EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock | Total |
Balance at Mar. 31, 2021 | $ 13 | $ 934,381 | $ (930,213) | $ (1,949) | $ 2,232 |
Balance (in shares) at Mar. 31, 2021 | 12,898,144 | ||||
Balance, treasury stock (in shares) at Mar. 31, 2021 | 73,954 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Purchase of treasury stock | $ (139) | (139) | |||
Purchase of treasury stock (in shares) | 27,679 | ||||
Vested restricted stock awards | 100 | 100 | |||
Vested restricted stock awards (in shares) | 124,184 | ||||
Stock-based compensation | 1,245 | 1,245 | |||
Stock awards to Board of Directors (in shares) | 70,260 | ||||
Issuance of common stock, net of issuance costs | $ 2 | 11,243 | 11,245 | ||
Issuance of common stock, net of issuance costs (in shares) | 2,305,780 | ||||
Net loss | (22,370) | (22,370) | |||
Balance at Mar. 31, 2022 | $ 15 | 946,969 | (952,583) | $ (2,088) | $ (7,687) |
Balance (in shares) at Mar. 31, 2022 | 15,398,368 | 15,398,368 | |||
Balance, treasury stock (in shares) at Mar. 31, 2022 | 101,633 | 101,633 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | $ (4,200) | ||||
Balance at Jun. 30, 2022 | (11,655) | ||||
Balance at Mar. 31, 2022 | $ 15 | 946,969 | (952,583) | $ (2,088) | $ (7,687) |
Balance (in shares) at Mar. 31, 2022 | 15,398,368 | 15,398,368 | |||
Balance, treasury stock (in shares) at Mar. 31, 2022 | 101,633 | 101,633 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | $ (7,853) | ||||
Balance at Sep. 30, 2022 | (7,904) | ||||
Balance at Mar. 31, 2022 | $ 15 | 946,969 | (952,583) | $ (2,088) | $ (7,687) |
Balance (in shares) at Mar. 31, 2022 | 15,398,368 | 15,398,368 | |||
Balance, treasury stock (in shares) at Mar. 31, 2022 | 101,633 | 101,633 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | $ (14,189) | ||||
Balance at Dec. 31, 2022 | (14,008) | ||||
Balance at Mar. 31, 2022 | $ 15 | 946,969 | (952,583) | $ (2,088) | $ (7,687) |
Balance (in shares) at Mar. 31, 2022 | 15,398,368 | 15,398,368 | |||
Balance, treasury stock (in shares) at Mar. 31, 2022 | 101,633 | 101,633 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Purchase of treasury stock | $ (51) | $ (51) | |||
Purchase of treasury stock (in shares) | 15,381 | ||||
Vested restricted stock awards | 52 | 52 | |||
Vested restricted stock awards (in shares) | 124,104 | ||||
Stock-based compensation | 863 | 863 | |||
Stock awards to Board of Directors (in shares) | 54,585 | ||||
Issuance of common stock, net of issuance costs | $ 3 | 7,247 | 7,250 | ||
Issuance of common stock, net of issuance costs (in shares) | 2,934,498 | ||||
Deemed dividend on purchase warrant for common shares | 97 | (97) | |||
Net loss | (24,522) | (24,522) | |||
Balance at Mar. 31, 2023 | $ 18 | $ 955,228 | $ (977,202) | $ (2,139) | $ (24,095) |
Balance (in shares) at Mar. 31, 2023 | 18,511,555 | 18,511,555 | |||
Balance, treasury stock (in shares) at Mar. 31, 2023 | 117,014 | 117,014 | |||
Balance at Jun. 30, 2022 | $ (11,655) | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (3,653) | ||||
Balance at Sep. 30, 2022 | (7,904) | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (6,336) | ||||
Balance at Dec. 31, 2022 | $ (14,008) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (24,522) | $ (22,370) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 3,177 | 1,915 |
Amortization of financing costs and discounts | 68 | 35 |
Amortization of right-of-use assets | 1,330 | 657 |
(Gain) loss on debt extinguishment | (1,950) | |
Bad debt expense (recovery) | 4,277 | 391 |
Inventory provision | 961 | 791 |
Provision for warranty expenses | 592 | 646 |
Stock-based compensation | 863 | 1,245 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,060 | (3,383) |
Inventories | (11,521) | (9,105) |
Prepaid expenses, other current assets and other assets | (1,210) | 164 |
Accounts payable and accrued expenses | 5,660 | 5,098 |
Operating lease liability | (1,304) | (613) |
Accrued salaries and wages and long-term liabilities | 77 | (743) |
Accrued warranty reserve | (499) | (5,013) |
Deferred revenue | 8,373 | 3,229 |
Factory protection plan liability | 1,674 | 1,508 |
Net cash used in operating activities | (7,944) | (27,498) |
Cash Flows from Investing Activities: | ||
Expenditures for property, plant, equipment and rental assets | (8,222) | (9,924) |
Net cash used in investing activities | (8,222) | (9,924) |
Cash Flows from Financing Activities: | ||
Repayment of notes payable and lease obligations | (804) | (685) |
Cash used in employee stock-based transactions | (52) | (138) |
Net proceeds from issuance of common stock and warrants | 7,302 | 11,271 |
Net cash provided by financing activities | 6,446 | 10,448 |
Net (decrease) in Cash and Cash Equivalents | (9,720) | (26,974) |
Cash and Cash Equivalents, Beginning of Period | 22,559 | 49,533 |
Cash and Cash Equivalents, End of Period | 12,839 | 22,559 |
Supplemental Disclosures of Cash Flow Information - cash paid during the period for: | ||
Interest | 5,701 | 5,095 |
Supplemental Disclosures of Cash Flow Information - cash paid during the period for: | ||
Income taxes | 13 | 20 |
Supplemental Disclosures of Non-Cash Information: | ||
Acquisition of property and equipment through accounts payable | 29 | 264 |
Renewal of insurance contracts financed by notes payable | 665 | 567 |
Issuance of common stock for services to be received | $ 75 | |
Deemed dividend | 97 | |
Right-of-use assets obtained in exchange for lease obligations | 8,170 | |
Rental assets capitalized from inventory | $ 1,687 |
Description of the Company and
Description of the Company and Basis of Presentation | 12 Months Ended |
Mar. 31, 2023 | |
Description of the Company and Basis of Presentation | |
Description of the Company and Basis of Presentation | 1. Description of the Company and Basis of Presentation Capstone Green Energy Corporation (“Capstone”, “We” or the “Company”) is a provider of customized microgrid solutions, on-site resilient green Energy as a Service (EaaS) solutions, and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. These solutions include stationary distributed power generation applications and distribution networks, including cogeneration (combined heat and power (“CHP”), integrated combined heat and power (“ICHP”), and combined cooling, heat and power (“CCHP”), renewable energy, natural resources, and critical power supply. In April 2021, we added additional products to our portfolio and shifted our focus to four key business lines. Our Energy Conversion Products business lines is driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. Through our Energy-as-a-Service business line, we offer rental solutions utilizing our microturbine energy systems and battery storage systems, comprehensive factory protection plan service contracts that guarantee life-cycle costs, as well as aftermarket spare parts. Our two emerging business lines are Energy Storage Products and Hydrogen Energy Solutions. Our Energy Storage Products business line designs and installs microgrid storage systems, creating customized solutions using a combination of battery technologies and monitoring software. Through our Hydrogen Energy Solutions business line, we offer customers a variety of hydrogen products, including the Company’s microturbine energy systems. Because these are new offerings, Energy Storage Products and Hydrogen Energy Solutions revenue has been immaterial to date. The Company was organized in 1988 and has been commercially producing its microturbine generators since 1998. This Annual Report on Form 10-K (this “Form 10-K”) refers to the Company’s fiscal years ended March 31 as its “Fiscal” years. The consolidated financial statements include the accounts of the Company, Capstone Turbine International, Inc., its wholly owned subsidiary that was formed in June 2004, and Capstone Turbine Financial Services, LLC, its wholly owned subsidiary that was formed in October 2015, after elimination of inter-company transactions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Cash Equivalents Fair Value of Financial Instruments Accounts Receivable Balance, March 31, 2021 $ 197 Additions charged to expenses 391 Bad debt write-off (2) Balance, March 31, 2022 $ 586 Additions charged to expenses 4,277 Bad debt write-off (50) Balance, March 31, 2023 $ 4,813 Inventories Depreciation and Amortization two lease term or the estimated useful lives of the assets, whichever is shorter Long-Lived Assets Deferred Revenue Revenue The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation Microturbine Products Accessories Parts and Services Factory Protection Plan 30-day 5 10 15 Some FPPs offer a labor reimbursement on the labor performed on a microturbine system. Due to the nature of the arrangement, labor reimbursements are accounted for under ASC 460. See below for additional information on the labor reimbursement within the FPP offering. Comprehensive factory protection plan service contracts require payment at the beginning of the contract period. Advance payments are not considered a significant financing component as they are typically received less than one year before the related performance obligations are satisfied. These payments are treated as a contract liability and are classified in deferred revenue in the Consolidated Balance Sheets. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Consolidated Statement of Operations. The deferred revenue relating to the annual maintenance service contracts is recognized in the Consolidated Statement of Operations on a straight-line basis over the expected term of the contract. Significant Judgments - Contracts with Multiple Performance Obligations The Company enters into contracts with its customers that often include promises to transfer multiple products, parts, accessories, FPP and services. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment. Products, parts and accessories are distinct as such services are often sold separately. In determining whether FPP and other service contracts are distinct, the Company considers the following factors for each FPP and services agreement: availability of the services from other vendors, the nature of the services, the timing of when the services contract was signed in comparison to the product delivery date and the contractual dependence of the product on the customer’s satisfaction with the professional services work. To date, the Company has concluded that all of the FPP and services contracts included in contracts with multiple performance obligations are distinct. The Company allocates the transaction price to each performance obligation on a relative stand-alone selling price (“SSP”) basis. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where systems and services are sold, price lists, its go-to-market strategy, historical sales and contract prices. The determination of SSP is made through consultation with and approval by the Company’s management, taking into consideration the go-to-market strategy. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to SSP. In certain cases, the Company is able to establish SSP based on observable prices of products or services sold separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when it has observable prices. If SSP is not directly observable, for example when pricing is highly variable, the Company uses a range of SSP. The Company determines the SSP range using information that may include market conditions or other observable inputs. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size and geography. Practical Expedients We apply a practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. Warranty Factory Protection Plan Service Cost Reimbursement Each FPP is a 30-day 5 10 15 The labor reimbursement is separate and distinct from the parts offering; therefore the Company allocates a portion of the transaction price to the labor reimbursement based on SSP. The Company applies judgment in determining the SSP as the labor reimbursement is not sold separately. The Company will recognize a liability at the inception of the executed FPP agreement for the premium received in advance for the Labor offering. Income will be recognized on a net, straight-line basis with labor reimbursement costs recognized when incurred. Research and Development (“R&D”) Income Taxes ASC Topic 740-10, Income Taxes Contingencies Risk Concentrations Sales to E-Finity Distributed Generation, LLC (“E-Finity”) and RSP Systems accounted for 12% and 11%, respectively, of the Company’s revenue for Fiscal 2023. Sales to E-Finity accounted for 18% of the Company’s revenue for Fiscal 2022. Additionally, E-Finity accounted for 12% of net accounts receivable as of March 31, 2023, and E-Finity and Radian Oil & Gas Services Co. accounted for 28% and 14% of net accounts receivable as of March 31, 2022, respectively. Certain components of the Company’s products are available from a limited number of suppliers. An interruption in supply could cause a delay in manufacturing, which would affect operating results adversely. Estimates and Assumptions Net Loss Per Common Share Stock-Based Compensation Leases In calculating the right of use asset and lease liability, the Company elects to combine lease and non-lease components. The Company excludes short-term leases having initial terms of twelve months or less from the new guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term. Going Concern We reduced our outstanding debt via proceedings in U.S. Chapter 11 Bankruptcy Court. On September 28, 2023, the Company filed for a prepackaged financial restructuring with its Senior Lender, Goldman Sachs under the U.S. Chapter 11 Bankruptcy laws, as further discussed in Note 17–Subsequent Events in the Notes to Consolidated Financial Statements. The Company emerged from Bankruptcy on December 7, 2023, and affected the financial and organizational restructuring. Given our current cash position, lack of liquidity, limits to accessing capital and debt funding options, the economic and market risk of the forecast, there is substantial doubt regarding the Company’s ability to continue as a going concern and our ability to meet our financial obligations as they become due over the next twelve months from the date of issuance of our Fiscal 2023 financial statements. Segment Reporting Year Ended March 31, 2023 2022 United States $ 45,071 $ 30,269 Mexico 2,990 3,706 All other North America 1,412 600 Total North America 49,473 34,575 Russia 3,045 3,381 All other Europe 11,553 10,872 Total Europe 14,598 14,253 Asia 3,251 5,978 Australia 2,840 4,195 All other 3,720 4,963 Total Revenue $ 73,882 $ 63,964 The following table summarizes the Company’s revenue by product (in thousands): Year Ended March 31, 2023 2022 C30 $ 383 $ 1,101 C65 12,021 8,763 C200 4,035 3,213 C400 321 1,555 C600 4,361 5,344 C800 — 4,935 C1000 12,075 6,456 Microturbine Products $ 33,196 $ 31,367 Accessories 1,837 1,353 Total Product and Accessories 35,033 32,720 Parts and Service 30,684 28,475 Rentals 8,165 2,769 Total Revenue $ 73,882 $ 63,964 Substantially all of the Company’s operating assets are in the United States. Impact of Recently Issued Accounting Standards Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this ASU provide guidance for estimating credit losses on certain types of financial instruments, including trade receivables, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable forecasts. With certain exceptions, the transition to the new guidance will be through a cumulative effect adjustment to opening accumulated deficit as of the beginning of the first reporting period in which the guidance is adopted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) (“ASU 2019-10”), which defers the adoption of ASU 2016-13 for Smaller Reporting Companies (“SRCs”) as defined by the SEC for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. On April 1, 2023, the Company adopted Financial Instruments—Credit Losses (Topic 326). The standard will require entities to record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. The adoption did not have a material impact on its financial statements. Management considers the applicability and impact of all Accounting Standards Updates (“ASUs”). The ASUs not listed were assessed and determined by management to be either not applicable or are expected to have minimal impact on our consolidated financial position and/or results of operations. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2023 | |
Inventories | |
Inventories | 3. Inventories Inventories are valued at the lower of cost (determined on a FIFO basis) or net realizable value and consisted of the following (in thousands): March 31, March 31, 2023 2022 Raw materials $ 29,222 $ 20,071 Finished goods 13,695 13,637 Total 42,917 33,708 Less: inventory reserve (2,477) (1,861) Less: non-current portion (3,112) (1,680) Total inventory, net-current portion $ 37,328 $ 30,167 The non-current portion of inventories represents that portion of the inventories in excess of amounts expected to be used in the next twelve months. The non-current inventories are primarily comprised of repair parts for older generation products that are still in operation but are not technologically compatible with current configurations. The weighted average age of the non-current portion of inventories on hand as of March 31, 2023 and 2022 were 0.9 years and 1.2 years, respectively. The Company expects to use the non-current portion of the inventories on hand as of March 31, 2023 over the periods presented in the following table (in thousands): Non-current Inventory Balance Expected Expected Period of Use to be Used 13 to 24 months $ 1,469 25 to 36 months 1,643 Total $ 3,112 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | 4. Property, Plant and Equipment Property, plant, equipment and rental assets consisted of the following (in thousands): March 31, March 31, 2023 2022 Machinery, equipment, automobiles and furniture $ 14,760 $ 15,945 Leasehold improvements 8,868 8,848 Molds and tooling 3,516 3,469 Rental assets 26,868 16,751 54,012 45,013 Less: accumulated depreciation (29,737) (27,221) Total property, plant, equipment and rental assets, net $ 24,275 $ 17,792 The Company regularly assesses the useful lives of property and equipment and retires assets no longer in service. Depreciation expense for property, plant, equipment and rental assets was $3.2 million and $1.8 million for Fiscal 2023 and 2022, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2023 | |
Intangible Assets | |
Intangible Assets | 5. Intangible Assets Intangible assets, net of amortization include intellectual property such as manufacturing licenses providing the Company with the ability to manufacture recuperator cores previously purchased from Solar Turbines Incorporated (“Solar”) and were fully amortized as of March 31, 2023 and March 31, 2022. The Company is required to pay a per-unit royalty fee over a seventeen-year period for cores manufactured and sold by the Company using the technology. Royalties of approximately $23,100 and $22,600 were earned by Solar for Fiscal 2023 and 2022, respectively. Earned royalties of approximately $99,500 and $76,400 were unpaid as of March 31, 2023 and 2022, respectively, and are included in accrued expenses in the accompanying consolidated balance sheets. Amortization expense for the intangible assets was zero and $0.1 million for Fiscal 2023 and 2022, respectively. |
Accrued Warranty Reserve
Accrued Warranty Reserve | 12 Months Ended |
Mar. 31, 2023 | |
Accrued Warranty Reserve | |
Accrued Warranty Reserve | 6. Accrued Warranty Reserve The Company provides for the estimated costs of warranties at the time revenue is recognized. The specific terms and conditions of those warranties vary depending upon the microturbine product sold and the geography of sale. The Company’s product warranties generally start from the delivery date and continue for up to twenty-four months. Factors that affect the Company’s warranty obligation include product failure rates, anticipated hours of product operations and costs of repair or replacement in correcting product failures. These factors are estimates that may change based on new information that becomes available each period. Similarly, the Company also accrues the estimated costs to address reliability repairs on products no longer in warranty when, in the Company’s judgment, and in accordance with a specific plan developed by the Company, it is prudent to provide such repairs. The Company assesses the adequacy of recorded warranty liabilities quarterly and adjusts the liability as necessary. When the Company has sufficient evidence that product changes are altering the historical failure occurrence rates, the impact of such changes is then taken into account in estimating future warranty liabilities. Changes in the accrued warranty reserve consisted of the following (in thousands): March 31, March 31, 2023 2022 Balance, beginning of the period $ 1,483 $ 5,850 Standard warranty provision 592 646 Deductions for warranty claims (499) (5,013) Balance, end of the period $ 1,576 $ 1,483 During the fourth quarter of Fiscal 2021, the Company recorded a specific $4.9 million accrual related to a reliability repair program to account for the replacement of remaining high-risk failure parts in some of the Company’s fielded units due to a supplier defect. As of March 31, 2023, the accrual related to this reliability repair program was zero as the Company has determined it replaced a sufficient quantity of high-risk failure parts in its fielded units under this reliability repair program and that it should be terminated. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Mar. 31, 2023 | |
Revenue Recognition | |
Revenue Recognition | 7. Revenue Recognition The following table presents disaggregated revenue by business group (in thousands): Year Ended March 31, 2023 2022 Microturbine Products $ 33,196 $ 31,367 Accessories 1,837 1,353 Total Product and Accessories 35,033 32,720 Parts and Service (1) 30,684 28,475 Rentals 8,165 2,769 Total Revenue $ 73,882 $ 63,964 (1) $0.4 million and $0.3 million of parts and service revenue reported were non-ASC-606 revenue related to the labor reimbursement of FPP contracts as of March 31, 2023 and 2022, respectively. Contract Balances The Company’s deferred revenues consist of advance payments for microturbine products, parts, accessories, and parts ordered under an FPP plan, but not yet delivered (contract liabilities), as well as advanced payments on service obligations and extended warranties. The current portion of deferred revenue is included in Deferred revenue and the non-current portion of deferred revenue is included in Deferred revenue, non-current in the consolidated balance sheets. As of March 31, 2023, the balance of deferred revenue was approximately $24.2 million compared to $15.8 million as of March 31, 2022. This overall increase in the balance of deferred revenue of $8.4 million during Fiscal 2023 was comprised of increases in deferred revenue attributable to deposits of $8.4 million and FPP contracts of $0.3 million, offset by a decrease in deferred revenue attributable to Distributor Support System (“DSS program”) of $0.3 million. Changes in deferred revenue are as follows (in thousands): March 31, March 31, 2023 2022 Opening balance, beginning of the period $ 15,816 $ 12,587 Closing balance, end of the period $ 24,189 $ 15,816 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 13,026 $ 11,303 Deferred revenue attributed to FPP contracts represents the unearned portion of the Company’s agreements. FPP agreements are generally paid quarterly in advance with revenue recognized on a straight-line basis over the contract period. The DSS program provides additional support for distributor business development activities, customer lead generation, brand awareness and tailored marketing services for each of the Company’s major geography and market vertical. This program is funded by the Company’s distributors and was developed to provide improved worldwide distributor training, sales efficiency, website development, company branding and provide funding for increased strategic marketing activities. DSS program revenue is generally paid quarterly with revenue recognized on a straight-line basis over a calendar year period. Deposits are primarily non-refundable cash payments from distributors for future orders. As of March 31, 2023, approximately $4.9 million of revenue is expected to be recognized from remaining performance obligations for FPP service contracts. The Company expects to recognize revenue on approximately $4.1 million of these remaining performance obligations over the next 12 months and the balance of $0.8 million will be recognized thereafter. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2023 | |
Income Taxes | |
Income Taxes | 8. Income Taxes Loss before provision for income taxes consisted of the following for the years ended March 31, 2023 and 2022 (in thousands): Year Ended March 31, 2023 2022 United States $ (24,560) $ (22,391) Foreign 45 40 Loss before provision for income taxes $ (24,515) $ (22,351) Current income tax provision is the amount of income taxes reported or expected to be reported on our income tax return. The provision for current income taxes was $7,000 and $19,000 for the years ended March 31, 2023 and March 31, 2022, respectively. The current income taxes were related to state income and foreign taxes. The Company did not have current federal income taxes for the fiscal years ended March 31, 2023 and March 31, 2022. Actual income tax expense differed from the amount computed by applying statutory corporate income tax rates to loss from operations before income taxes. A reconciliation of income tax (benefit) expense to the federal statutory rate follows (in thousands): Year Ended March 31, 2023 2022 Federal income tax benefit at the statutory rate $ (5,148) $ (4,694) State taxes, net of federal effect (1,837) (714) Foreign taxes — 5 Expiring NOLs and tax credits 10,156 11,028 Impact of state rate change 107 (142) Valuation allowance (3,532) (5,552) Shortfall in tax benefit—stock compensation 262 75 True-up (5) — Other 4 13 Income tax expense $ 7 $ 19 The Company’s deferred tax assets and liabilities consisted of the following at March 31, 2023 and 2022 (in thousands): Year Ended March 31, 2023 2022 Deferred tax assets: Inventories $ 3,456 $ 2,194 Warranty reserve 3,140 2,513 Bad debt reserve 1,217 199 Deferred revenue 2,385 2,284 Net operating loss (“NOL”) carryforwards 126,180 130,928 Tax credit carryforwards 12,686 13,370 Depreciation, amortization and impairment loss 496 — Lease liability 2,113 1,464 Interest limitation 6,330 4,655 Other 1,279 1,095 Deferred tax assets 159,282 158,702 Valuation allowance for deferred tax assets (153,171) (156,702) Deferred tax assets, net of valuation allowance 6,111 2,000 Deferred tax liabilities: Depreciation, amortization and impairment loss (3,998) (594) Right of use assets (2,113) (1,406) Net deferred tax assets $ — $ — Because of the uncertainty surrounding the timing of realizing the benefits of favorable tax attributes in future income tax returns, the Company has placed a valuation allowance against its net deferred income tax assets. The change in valuation allowance for fiscal years ended March 31, 2023 and 2022 was $3.5 million and $5.5 million, respectively. The Company’s NOL and tax credit carryforwards for federal and state income tax purposes at March 31, 2023 were as follows (in thousands): Expiration Amount Period Federal NOL generated before April 1, 2018 $ 449,151 2023 - 2038 Federal NOL generated after March 31, 2018 $ 89,643 Indefinite State NOL $ 185,650 2025 - 2039 Federal tax credit carryforwards $ 5,029 2023 - 2038 State tax credit carryforwards $ 9,692 Indefinite The NOLs and federal and state tax credits can be carried forward to offset future taxable income, if any. Utilization of the NOLs and tax credits are subject to an annual limitation of approximately $57.3 million due to the ownership change limitations provided by the Internal Revenue Code of 1986 and similar state provisions. The federal tax credit carryforward is a research and development credit, which may be carried forward. The state tax credits consist of a research and development credit can be carried forward indefinitely. Accounting Standards Codification (“ASC”) 740, Income Taxes clarifies the accounting for income taxes by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. ASC 740 also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. Based on management’s evaluation, the total amount of unrecognized tax benefits related to research and development credits as of March 31, 2023 and 2022 was $1.9 million. There were no interest or penalties related to unrecognized tax benefits as of March 31, 2023 or March 31, 2022. The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of March 31, 2023 and 2022 was $1.9 million. However, this impact would be offset by an equal increase in the deferred tax valuation allowance as the Company has recorded a full valuation allowance against its deferred tax assets because of uncertainty as to future realization. The fully reserved recognized federal and state deferred tax assets related to research and development credits balance as of March 31, 2023 and 2022 was $5.0 million and $9.7 million, and $5.7 million and $9.7 million, respectively. A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits is as follows (in thousands): Balance at March 31, 2021 $ 1,946 Gross increase related to prior year tax positions — Gross increase related to current year tax positions — Lapse of statute of limitations (48) Balance at March 31, 2022 $ 1,898 Gross increase related to prior year tax positions — Gross increase related to current year tax positions — Lapse of statute of limitations (42) Balance at March 31, 2023 $ 1,856 The Company does not expect a material change to its unrecognized tax benefits over the next twelve months. The Company files income tax returns in the U.S. federal jurisdiction and various state, local and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state, local or non-U.S. income tax examinations by tax authorities for the years before 2017. However, net operating loss carryforwards remain subject to examination to the extent they are carried forward and impact a year that is open to examination by tax authorities. The Company's evaluation was performed for the tax years which remain subject to examination by major tax jurisdictions as of March 31, 2023. When applicable, the Company accounts for interest and penalties generated by tax contingencies as interest and other expense, net in the statements of operations. |
Stockholders' Equity (Deficienc
Stockholders' Equity (Deficiency) | 12 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity (Deficiency) | |
Stockholders' Equity (Deficiency) | 9. Stockholders’ Equity (Deficiency) The following table summarizes, by consolidated statements of operations line item, stock-based compensation expense (in thousands): Year Ended March 31, 2023 2022 Cost of goods sold $ 37 $ 109 Research and development 97 79 Selling, general and administrative 729 1,057 Stock-based compensation expense $ 863 $ 1,245 2000 and 2017 Equity Incentive Plans In June 2017, the Company’s Board of Directors (the “Board”) adopted the Capstone Green Energy Corporation 2017 Equity Incentive Plan (the “2017 Plan”), which was approved by the stockholders at the Company’s 2017 annual meeting of stockholders on August 31, 2017 (the “2017 Annual Meeting”). The 2017 Plan initially provided for awards of up to 300,000 shares of Common Stock. The 2017 Plan is administered by the Compensation and Human Capital Committee designated by the Board (the “Compensation Committee”). The Compensation Committee’s authority includes determining the number of incentive awards and vesting provisions. On June 5, 2018, the Board adopted an amendment to the 2017 Plan to increase the aggregate number of shares of Common Stock authorized for issuance under the 2017 Plan by 300,000 shares of Common Stock. The amendment of the 2017 Plan was approved by the Company’s stockholders at the 2018 annual meeting of stockholders on August 30, 2018. Since this time, the Company’s stockholders have approved amendments to increase the aggregate number of shares authorized for issuance under the 2017 Plan by an additional 2,200,000 shares of Common Stock, including, most recently, on June 7, 2022, the Board adopted Amendment No. 6 (the “Plan Amendment”) of the 2017 Plan to increase the aggregate number of shares of Common Stock authorized for issuance under the 2017 Plan by 600,000 shares of Common Stock. The Plan amendment was approved by the Company’s stockholders at the 2022 annual meeting of stockholders on September 12, 2022. As of March 31, 2023, there were 984,411 shares available for future grants under the 2017 Plan. Restricted Stock Units and Performance Restricted Stock Units The Company issued restricted stock units under the Company’s 2000 Equity Incentive Plan, as well as issued (and may in the future issue) restricted stock units under the 2017 Plan, to employees, non-employee directors and consultants. The restricted stock units are valued based on the closing price of the Company’s Common Stock on the date of issuance, and compensation cost is recorded on a straight-line basis over the vesting period. The restricted stock units issued to employees vest over a period of two three one one Weighted Average Grant Date Fair Restricted Stock Units and Performance Restricted Stock Units Shares Value Non-vested restricted stock units outstanding at March 31, 2022 591,805 $ 5.66 Granted 646,814 2.04 Vested and issued (179,471) 5.76 Forfeited (216,517) 4.54 Non-vested restricted stock units outstanding at March 31, 2023 842,631 3.13 Restricted stock units expected to vest beyond March 31, 2023 842,631 $ 3.13 The following table provides additional information on restricted stock units and performance restricted stock units: Year Ended March 31, 2023 2022 Restricted stock compensation expense (in thousands) $ 863 $ 1,245 Aggregate fair value of restricted stock units vested and issued (in thousands) $ 477 $ 936 Weighted average grant date fair value of restricted stock units granted during the period $ 2.29 $ 5.40 As of March 31, 2023, there was approximately $1.6 million of total compensation cost related to unvested restricted stock units that is expected to be recognized as expense over a weighted average period of 2.1 years. The Company’s PRSU activity is included in the above restricted stock unit tables. The PRSU program has a three-year performance measurement period. The performance measurement occurs in the third year (for a three-year grant) following the grant date. The program is intended to have overlapping performance measurement periods (e.g., a new three-year cycle begins each year on April 1), subject to Compensation Committee approval. The overall performance at the end of the three-year period will be defined as the average of the yearly goals to determine the payout. Overall performance and payout at the end of the three-year period will be defined as the average of the three annual goals achievement. At the end of each performance measurement period, the Compensation Committee will determine the achievement against the performance objectives. During Fiscal 2023, the Company granted 72,412 PRSUs with a three-year performance measurement and the criteria measured by the Company’s aftermarket sales absorption. During Fiscal 2022, the Company granted 35,986 PRSUs with a third-year The weighted average per share grant date fair value of PRSUs granted during Fiscal 2023 and 2022 was $3.80 and $8.39, respectively. Based on the Company’s assessment as of March 31, 2023, the Company will not meet the threshold of the performance measurements, and as a result, no compensation expense was recorded during Fiscal 2023 and 2022. Compensation expense is recognized over the corresponding requisite service period and will be adjusted in subsequent reporting periods if the Company’s assessment of the probable level of achievement of the performance goals change. The Company will continue to assess the likelihood of the PRSU threshold being met until the end of the applicable performance period. Stockholder Rights Plan On May 6, 2019, the Board declared a dividend of one right (a “New Right”) for each of the Company’s issued and outstanding shares of Common Stock. The dividend was paid to the stockholders of record at the close of business on May 16, 2019 (the “Record Date”). Each New Right entitles the registered holder, subject to the terms of the NOL Rights Agreement (as defined below), to purchase from the Company one one-thousandth of a share of the Company’s Series B Junior Participating Preferred Stock (the “Preferred Stock”) at a price of $5.22 (the “Exercise Price”), subject to certain adjustments. The description and terms of the New Rights are set forth in the Rights Agreement dated as of May 6, 2019 (the “NOL Rights Agreement”) between the Company and Broadridge Financial Solutions, Inc., as Rights Agent (the “Rights Agent”). The NOL Rights Agreement replaced the Company’s Rights Agreement, dated May 6, 2016, by and between the Company and Broadridge Financial Solutions, Inc., as successor-in-interest to Computershare Inc., as rights agent (the “Original Rights Agreement”). The Original Rights Agreement, and the rights thereunder to purchase fractional shares of Preferred Stock, expired at 5:00 p.m., New York City time, on May 6, 2019 and the NOL Rights Agreement was entered into immediately thereafter. The purpose of the NOL Rights Agreement is to diminish the risk that the Company’s ability to use its net operating losses and certain other tax assets (collectively, “Tax Benefits”) to reduce potential future federal income tax obligations would become subject to limitations by reason of the Company’s experiencing an “ownership change,” as defined in Section 382 of the Internal Revenue Code of 1986, as amended (the “Tax Code”). A company generally experiences such an ownership change if the percentage of its stock owned by its “5-percent shareholders,” as defined in Section 382 of the Tax Code, increases by more than 50 percentage points over a rolling three-year period. The NOL Rights Agreement is designed to reduce the likelihood that the Company will experience an ownership change under Section 382 of the Tax Code by (i) discouraging any person or group from becoming a 4.9% or greater shareholder and (ii) discouraging any existing 4.9% or greater shareholder from acquiring additional shares of the Company’s stock. The New Rights will not be exercisable until the earlier to occur of (i) the close of business on the tenth business day after a public announcement or filing that a person has, or group of affiliated or associated persons have, become an “Acquiring Person,” which is defined as a person or group of affiliated or associated persons who, at any time after the date of the NOL Rights Agreement, have acquired, or obtained the right to acquire, beneficial ownership of 4.9% or more of the Company’s outstanding shares of Common Stock, subject to certain exceptions or (ii) the close of business on the tenth business day after the commencement of, or announcement of an intention to commence, a tender offer or exchange offer the consummation of which would result in any person becoming an Acquiring Person (the earlier of such dates being called the “Distribution Date”). Certain synthetic interests in securities created by derivative positions, whether or not such interests are considered to be ownership of the underlying Common Stock or are reportable for purposes of Regulation 13D of the Exchange Act, are treated as beneficial ownership of the number of shares of Common Stock equivalent to the economic exposure created by the derivative position, to the extent actual shares of the Common Stock are directly or indirectly held by counterparties to the derivatives contracts. With respect to certificates representing shares of Common Stock outstanding as of the Record Date, until the Distribution Date, the New Rights will be evidenced by such certificates for shares of Common Stock registered in the names of the holders thereof, and not by separate Rights Certificates, as described further below. With respect to book entry shares of Common Stock outstanding as of the Record Date, until the Distribution Date, the New Rights will be evidenced by the balances indicated in the book entry account system of the transfer agent for the Common Stock. Until the earlier of the Distribution Date and the Expiration Date, as described below, the transfer of any shares of Common Stock outstanding on the Record Date will also constitute the transfer of the New Rights associated with such shares of Common Stock. As soon as practicable after the Distribution Date, separate certificates evidencing the New Rights (“Right Certificates”) will be mailed to holders of record of the Common Stock as of the close of business on the Distribution Date, and such Right Certificates alone will evidence the New Rights. The New Rights, which are not exercisable until the Distribution Date, will expire prior to the earliest of (i) May 6, 2022 or such later day as may be established by the Board prior to the expiration of the New Rights, provided that the extension is submitted to the Company’s stockholders for ratification at the next annual meeting of stockholders of the Company succeeding such extension; (ii) the time at which the New Rights are redeemed pursuant to the NOL Rights Agreement; (iii) the time at which the New Rights are exchanged pursuant to the NOL Rights Agreement; (iv) the time at which the New Rights are terminated upon the occurrence of certain transactions; (v) the close of business on the first day after the Company’s 2019 annual meeting of stockholders, if approval by the stockholders of the Company of the NOL Rights Agreement has not been obtained on or prior to the close of business on the first day after the Company’s 2019 annual meeting of stockholders; (vi) the close of business on the effective date of the repeal of Section 382 of the Tax Code, if the Board determines that the NOL Rights Agreement is no longer necessary or desirable for the preservation of Tax Benefits; and (vii) the close of business on the first day of a taxable year of the Company to which the Board determines that no Tax Benefits are available to be carried forward, (the earliest of (i), (ii), (iii), (iv), (v), (vi) and (vii) is referred to as the “Expiration Date”). Each share of Preferred Stock will be entitled, when, as and if declared, to a preferential per share quarterly dividend payment equal to the greater of (i) $1.00 per share or (ii) an amount equal to 1,000 times the aggregate quarterly dividend declared per share of Common Stock since the immediately preceding quarterly dividend payment date for the Common Stock (or, with respect to the first quarterly dividend payment on the Common Stock, since the first issuance of the Preferred Stock). Each share of Preferred Stock will entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the stockholders of the Company. In the event of any merger, consolidation or other transaction in which shares of Common Stock are converted or exchanged, each share of Preferred Stock will be entitled to receive 1,000 times the amount received per one share of Common Stock. On April 7, 2022, the Board approved an extension of the NOL Rights Agreement from May 6, 2022 to May 6, 2025. This extension was approved by the stockholders at the 2022 annual meeting of stockholders held on September 12, 2022. Offerings of Common Stock and Warrants Common Stock Offerings On June 17, 2021, the Company entered into an amended and restated underwriting agreement (the “Wainwright Underwriting Agreement”) with H.C. Wainwright & Co., LLC (”Wainwright”) whereby the Company agreed to sell to Wainwright, and Wainwright agreed to purchase, in a firm commitment underwritten public offering 1,904,763 shares (the “Wainwright Shares”) of the Company’s Common Stock, $0.001 par value per share (the “Wainwright Offering”). The offering price to the public in the Offering was $5.25 per share of Common Stock, and the Underwriter agreed to purchase the Wainwright Shares from the Company pursuant to the Wainwright Underwriting Agreement at a price of $4.91 per share, representing an underwriting discount of 6.5% . Pursuant to the Wainwright Underwriting Agreement, the Company also granted Wainwright an option to purchase, for a period of 30 days from the date of the Underwriting Agreement, up to an additional 285,714 shares of Common Stock (the “Option Shares”). On June 21, 2021, Wainwright exercised the option in full. The Wainwright Offering of the Wainwright Shares was registered pursuant to a shelf registration statement (No. 333-254290) on Form S-3 filed by the Company with the Securities and Exchange Commission on March 22, 2021, and declared effective on April 14, 2021 (the “Registration Statement”), and made pursuant to a prospectus supplement, dated June 17, 2021, and accompanying prospectus that form a part of the Registration Statement relating to the Offering. The Offering closed on June 22, 2021, and the Company received net proceeds of $10.5 million after deducting $1.0 million in underwriting discounts, commissions and offering expenses paid by the Company. On August 18, 2022, the Company entered into an underwriting agreement (the “Lake Street Underwriting Agreement”) with Lake Street Capital Markets, LLC and Joseph Gunnar and Company, LLC (the “Underwriters”) whereby the Company agreed to sell to the Underwriters, and the Underwriters agreed to purchase, in a firm commitment underwritten public offering 2,934,498 (the “Lake Street Shares”) of the Company’s Common Stock, $0.001 par value per share (the “Lake Street Offering”) and accompanying warrants to purchase up to 2,934,498 shares of common stock. The offering price to the public in the Offering was $2.75 per share of Common Stock and accompanying warrant, and the Underwriter agreed to purchase the shares and accompanying warrants from the Company pursuant to the Underwriting Agreement at a price of $2.585 per share and accompanying warrant, representing an underwriting discount of 6.0%. The Lake Street Offering of the Lake Street Shares was registered pursuant to the Registration Statement, and made pursuant to a prospectus supplement, dated August 22, 2022, and accompanying prospectus that form a part of the Registration Statement relating to the Lake Street Offering. The Lake Street Offering closed on August 24, 2022, and the Company received net proceeds of $7.3 million after deducting $0.8 million in underwriting discounts, commissions and offering expenses paid by the Company. Warrants Goldman Warrant On February 4, 2019, the Company sold to Goldman Sachs & Co. LLC (the “Holder”), a Purchase Warrant Warrant On December 9, 2019, the Company entered into an Amendment No. 1 to the Purchase Warrant for Common Shares (the “Amendment No. 1”) with Special Situations Investing Group II, LLC (as successor in interest to Goldman Sachs & Co. LLC) (the “Warrant Holder”) that amends the Warrant. The Amendment No. 1 amended the Warrant to increase the number of Warrant Shares issuable under the Warrant (on a post-reverse split basis) and to decrease the exercise price from $8.86 per share (on a post-reverse split basis) to $3.80 per share (the “Per Share Warrant Exercise Price”). The Amendment No. 1 also amends the Warrant such that the Per Share Anti-Dilution Price is equal to the Per Share Warrant Exercise Price. As a result of the decrease in exercise price, the Company recorded the change in valuation of $0.3 million as additional debt discount with a corresponding entry to additional paid-in capital in the condensed consolidated balance sheets and statements of stockholders equity. On June 16, 2020, the Company entered into an Amendment No. 2 to the Purchase Warrant for Common Shares (“Amendment No. 2”) with the Warrant Holder to increase the number of Warrant Shares (as defined therein) issuable under the Warrant and to decrease the exercise price from $3.80 per share to $2.61 per share (the “Per Share Warrant Exercise Price”). The Company would receive aggregate gross proceeds of $1,186,313 if the outstanding Warrant is exercised at the new Per Share Warrant Exercise Price. Amendment No. 2 also amends the Warrant such that the Per Share Anti-Dilution Price (as defined therein) is equal to the Per Share Warrant Exercise Price as provided in the Amendment No. 2 to the Warrant. As a result of the decrease in exercise price, the Company recorded the change in valuation of $0.1 million as additional debt discount with a corresponding entry to additional paid in capital in the condensed consolidated balance sheets and statements of stockholders equity. All other terms and provisions in the Warrant remain in effect. Goldman “2020 Warrant” On October 1, 2020, the Company entered into an Amendment No. 3 to the Purchase Warrant for Common Shares (the “Amendment No. 3”) with Special Situations Investing Group II, LLC (as successor in interest to Goldman Sachs & Co. LLC) (the “Warrant Holder”) that amends that certain Purchase Warrant for Common Shares originally issued by the Company to Goldman Sachs & Co. LLC, dated February 4, 2019, as amended (the “Original Warrant”). Amendment No. 3 amends the Original Warrant to amend Section 2.1, Section 2.2(c) and Section 18.1 of the Warrant to, among other things, make certain changes necessitated by the issuance of a second Warrant (the “2020 Warrant”) to the Warrant Holder pursuant to the Company’s entry into the Amended & Restated (“A&R”) Note Purchase Agreement (See Note 11 – Term Note Payable). On October 1, 2020, and pursuant to the Company’s entry into the A&R Note Purchase Agreement, the Company sold to the Warrant Holder the 2020 Warrant to purchase up to 291,295 shares (the “2020 Warrant Shares”) of the Company’s Common Stock. The 2020 Warrant was sold to the Warrant Holder at a purchase price of $10,000 , in a private placement exempt from registration under the Securities Act. The 2020 Warrant may be exercised by the Warrant Holder at any time after October 1, 2020 at an exercise price equal to $4.76 and expired on February 4, 2024 . The Warrant contains standard adjustment provisions in the event of additional stock issuances below the exercise price of the warrant, stock splits, combinations, rights offerings and similar transactions. The value of the Warrant was $0.8 million, and has been classified as an equity instrument in additional paid in capital in the Company’s consolidated balance sheets. The value of the Warrant was determined using the Black-Scholes Option Pricing model using the following assumptions: Risk-free interest rate 0.2% Contractual term 3 years Expected volatility 81.0% Amendment No. 2 also amends the Warrant such that the Per Share Anti-Dilution Price (as defined therein) is equal to the Per Share Warrant Exercise Price as provided in the Amendment No. 2 to the Warrant. As a result of the decrease in exercise price, the Company recorded the change in valuation of $0.1 million as additional debt discount with a corresponding entry to additional paid in capital in the condensed consolidated balance sheets and statements of stockholders equity. All other terms and provisions in the Warrant remain in effect. September 2019 Pre-Funded and Series D Warrants On September 4, 2019, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with certain institutional and accredited investors pursuant to which the Company agreed to issue and sell in a registered direct offering (the “Registered Direct Offering”) an aggregate of 580,000 shares of Common Stock, at a negotiated purchase price of $5.00 per share, and pre-funded warrants to purchase up to an aggregate of 440,000 shares of Common Stock at a negotiated purchase price of $5.00 per Pre-Funded Warrant, for aggregate gross proceeds of approximately $5.1 million (580,000 shares of Common Stock plus 440,000 pre-funded warrants at a $5.00 per share purchase price), before deducting placement agent fees and other offering expenses. Net proceeds from the offering were $4.6 million. The offering closed on September 9, 2019. On October 24, 2019, a warrant holder exercised its rights to the warrant agreement to exercise on a cash basis 440,000 pre-funded warrants at an exercise price of $0.001 per share under the warrant agreement. In a concurrent private placement, the Company issued to the purchasers warrants to purchase 765,000 shares of Common Stock, which represent 75% of the number of shares of Common Stock and shares underlying the Pre-Funded Warrants purchased in the Registered Direct Offering, pursuant to the Securities Purchase Agreement. The Common Warrants will be exercisable for shares of Common Stock at an initial exercise price of $6.12 per share for a period of five years, starting on April 2, 2020 and expiring on April 2, 2025. In January 2021, three warrant holders exercised their rights to the warrant agreement to exercise on a cashless basis 690,000 Series D warrants at an exercise price of $6.12 per share under the warrant agreement. In accordance with terms of the warrant agreement, after taking into account the shares withheld to satisfy the cashless exercise option, the Company issued 352,279 shares of Common Stock. As of March 31, 2023, there were 75,000 Series D warrants outstanding. August 2022 Warrants On August 24, 2022, the Company issued 2,934,498 of common stock warrants with an exercise price of $2.75 in conjunction with the Lake Street Offering. Stock to Vendors From time to time, the Company may enter into agreements with vendors for sponsorship, marketing or investor relation services whereby it may agree to compensate the vendor in cash and unregistered shares of Common Stock of the Company. The value of the unregistered shares of Common Stock is recorded as prepaid marketing cost and included in prepaid expenses and other current assets and stockholder’s equity in the Condensed Consolidated Balance Sheets and is amortized in proportion to the terms of their respective agreements. On February 17, 2021 and April 1, 2021, the Company issued 105,933 and 9,541 shares of the Company’s Common Stock, under a sponsorship agreement and an investor relations consulting agreement, respectively to vendors. The prepaid marketing cost amortization associated with the Common Stock issued were $1.0 million during Fiscal 2022, and were included in selling, general and administrative expense in the Consolidated Statements of Operations. As of March 31, 2023, there are no amounts remaining in prepaid marketing cost, prepaid expenses and other current assets in the Consolidated Balance Sheets related to the value of shares issued under the sponsorship agreement and investor relations consulting agreement. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | 10. Fair Value Measurements The FASB has established a framework for measuring fair value in generally accepted accounting principles. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described as follows: Level 1. Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2. Inputs to the valuation methodology include: ● Quoted prices for similar assets or liabilities in active markets ● Quoted prices for identical or similar assets or liabilities in inactive markets ● Inputs other than quoted prices that are observable for the asset or liability ● Inputs that are derived principally from or corroborated by observable market data by correlation or other means If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3. Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Basis for Valuation The carrying values reported in the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate their fair values because of the immediate or short-term maturities of these financial instruments. The term note payable has been recorded net of a discount based on the fair value of the associated warrant and capitalized debt issuance costs and as of March 31, 2022 includes both the Three-Year Term Note and the SBA Paycheck Protection Program (“PPP”) Loan as discussed in Note 11–Term Note Payable. The carrying values and estimated fair values of these obligations are as follows (in thousands): As of As of March 31, 2023 March 31, 2022 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Term note payable $ 50,983 $ 51,000 $ 50,949 $ 51,000 |
Term Note Payable
Term Note Payable | 12 Months Ended |
Mar. 31, 2023 | |
Term Note Payable | |
Term Note Payable | 11. Term Note Payable Three-Year Term Note On February 4, 2019, the Company entered into a Note Purchase Agreement (as amended, the “Note Purchase Agreement”), by and among the Company, certain subsidiaries of the Company party thereto as guarantors, Goldman Sachs Specialty Lending Holdings, Inc. and any other purchasers party thereto from time to time (collectively, the “Purchaser”). Under the Note Purchase Agreement, the Company sold to the Purchaser $30.0 million aggregate principal amount of senior secured notes (the “Notes”), bearing interest at a rate of 13.0% per annum and payable quarterly on March 31, June 30, September 30 and December 31 of each year until maturity. On October 1, 2020, the Company entered into an Amended & Restated Note Purchase Agreement (the “A&R Note Purchase Agreement”). The A&R Note Purchase Agreement amends and restates that certain Note Purchase Agreement, as amended, dated February 4, 2019, by and among the Company, certain of its subsidiaries as guarantors, the Collateral Agent and various purchasers party thereto. Under the A&R Note Purchase Agreement, the Company issued an additional $20 million in Notes, increasing total borrowings to $50.0 million. Following entry into the A&R Note Purchase Agreement, all outstanding Notes bear interest at the Adjusted (London Interbank Offer) LIBO Rate (as defined in the A&R Note Purchase Agreement) plus 8.75% per annum, payable on the last day of each interest period of one-, two-, three- or six-months (but, in the case of a six-month interest period, every three months). The Notes do not amortize and the entire principal balance is due in a single payment on the maturity date, September 1, 2024. As of March 31, 2023, $51.0 million in borrowings were outstanding under the Notes, which includes the accrual for an exit fee to be paid at maturity or upon pre-payment. Obligations under the A&R Note Purchase Agreement are secured by all of the Company’s assets, including intellectual property and general intangibles. The A&R Note Purchase Agreement contains customary covenants, including, among others, covenants that restrict the Company’s ability to incur debt, grant liens, make certain investments and acquisitions, pay dividends, repurchase equity interests, repay certain debt, amend certain contracts, enter into affiliate transactions and asset sales or make certain equity issuances (including equity issuances that would cause an ownership change within the meaning of Section 382 of the Internal Revenue Code), and covenants that require the Company to, among other things, provide annual, quarterly and monthly financial statements, together with related compliance certificates, maintain its property in good condition, maintain insurance and comply with applicable laws. The financial covenants of the A&R Note Purchase Agreement require the Company not to exceed specified levels of Adjusted EBITDA losses relative to its financial model, beginning with the fiscal quarter ending September 30, 2021. Additionally, the Company shall not permit the Company’s minimum consolidated liquidity, which consists of its cash and cash equivalents, to be less than $9.0 million. Furthermore, the covenants require the Company to expand its Rental Fleet (as defined in the A&R Note Purchase Agreement) by (i) at least 6.25 MW by the 9-month anniversary of the Closing Date, and (ii) at least 12.50 MW by the 18-month anniversary of the Closing Date. On May 12, 2021, the Company and the collateral agent, entered into a First Amendment (the “Amendment”), to the A&R Note Purchase Agreement. The Amendment amends certain provisions of the A&R Note Purchase Agreement, including to (a) require the Company to expand its Rental Fleet (as defined in the A&R Note Purchase Agreement) by (i) at least 2.00 MW by the 9-month anniversary of the Closing Date (instead of 6.25 MW as provided in the A&R Note Purchase Agreement prior to the Amendment), and (ii) at least 12.50 MW by the 18-month anniversary of the Closing Date (which is unchanged from the covenant set forth in in the A&R Note Purchase Agreement prior to the Amendment), and (b) increase the Company’s minimum consolidated liquidity requirement from $9.0 million to $12.2 million for the period from May 12, 2021 to March 31, 2022, and $9.0 million thereafter. The financial covenants of the A&R Note Purchase Agreement require the Company not to exceed specified levels of Adjusted EBITDA losses relative to its financial model, beginning with the fiscal quarter ending September 30, 2021. As of March 31, 2022, the Company was not in compliance with the Adjusted EBITDA covenant contained in the A&R Note Purchase Agreement and did not cure such non-compliance by prepaying the Notes. As a result, the Company was in breach of the Adjusted EBITDA covenant as of May 27, 2022. On July 13, 2022 the Company entered into the A&R NPA Second Amendment with the Purchaser and the Collateral Agent, pursuant to which (i) the Purchaser and the Collateral Agent waived our breach of the Adjusted EBITDA covenant and (ii) the A&R Note Purchase Agreement has been amended to, among other things, add certain new covenants, including requirements that the Company uses its commercially reasonable best efforts to raise at least $10 million through a sale of its common stock by September 14, 2022 and refinance the Notes by October 1, 2022. As a result of the Company’s restated earnings, we were not in compliance with the Adjusted EBITDA covenant contained in the A&R Note Purchase Agreement. The breach required a change in classification of the term note payable to a current liability on our consolidated balance sheet resulting in a liquidity issue for the Company (see Note 17–Subsequent Events in the Notes to the Consolidated Financial Statements for further discussion of the outstanding debt and the post emergence financing). The Notes have been recorded net of a discount based on the debt issuance costs totaling $0.1 million. Amortization of the debt discount and debt issuance costs was $34,000 for both Fiscal 2023 and 2022, based on an effective interest rate, and has been recorded as interest expense in the consolidated statements of operations. Interest expense related to the Notes payable during Fiscal 2023 and 2022 was $6.2 million and $5.0 million, respectively, and includes $34,000 in amortization of debt issuance costs in both periods. SBA Paycheck Protection Program Loan On April 15, 2020, the Company submitted an application to its banking partner Western Alliance Bank, an Arizona corporation (“Western Alliance”) under the Small Business Administration (the “SBA”) Paycheck Protection Program (“PPP”) enabled by the Coronavirus Aid, Relief and Economic Security Act of 2020 (the “CARES Act”). Western Alliance entered into a note on April 24, 2020 with the Company and agreed to make available to the Company a loan in the amount of $2,610,200 (the “PPP Loan”). The Company received the full amount of the PPP Loan on April 24, 2020 (the “Initial Disbursement Date) and has used the proceeds to support fixed costs such as payroll costs, rent and utilities in accordance with the relevant terms and conditions of the CARES Act. The advance under the Loan bears interest at a rate per annum of 1% . The term of the PPP Loan is two years , ending April 24, 2022 . On May 13, 2020, the Company repaid $660,200 of the PPP Loan in accordance with the Fourth Amendment to the Note Purchase Agreement between the Company and Goldman Sachs Specialty Lending Group, L.P. In February 2021, the Company applied for forgiveness of the PPP Loan, and the loan was forgiven in full on June 30, 2021 (see “Gain and Loss on Extinguishment of Debt” below). Gain and Loss on Extinguishment of Debt |
Leases
Leases | 12 Months Ended |
Mar. 31, 2023 | |
Leases | |
Leases | 12. Leases Lessor The Company rents microturbine equipment to our customer for twelve At March 31, 2023, the Company’s minimum rental revenue to be received under operating leases were as follows (in thousands): Operating Year Ending March 31, Leases 2024 $ 1,756 2025 1,756 2026 466 2027 — 2028 — Thereafter — Total minimum rental revenue $ 3,978 Lessee The Company leases facilities and equipment under various non-cancelable operating and finance leases expiring at various times through Fiscal 2037. All of the leases require the Company to pay maintenance, insurance and property taxes. The lease agreements for primary office and manufacturing facilities provide for rent escalation over the lease term and renewal options for five-year periods During Fiscal 2023, the Company entered into several rental agreements to rent used microturbine equipment from customers where that equipment was not currently in use. These rental agreements provide the Company an option to extend the lease, however, the Company is not likely to exercise these options and they are therefore not included in the determination of the lease term. These agreements totaled approximately 9.8 MW of microturbines and have an average term of 36 months, and a total commitment value of approximately $8.9 million. The components of lease expense were as follows (in thousands): Year Ended March 31, 2023 2022 Finance lease costs (1) $ 697 $ 80 Operating lease costs 2,291 1,157 Total lease costs $ 2,988 $ 1,237 (1) Interest expense is included in finance lease costs. Supplemental balance sheet information related to the leases was as follows (in thousands): March 31, 2023 March 31, 2022 Finance lease right-of-use assets $ 4,529 $ 246 Operating lease right-of-use assets 8,808 5,959 Total right-of-use assets $ 13,337 $ 6,205 Finance lease liability, current $ 773 $ 89 Operating lease liability, current 2,492 586 Finance lease liability, non-current 2,903 190 Operating lease liability, non-current 6,588 5,619 Total lease liabilities $ 12,756 $ 6,484 Finance leases: Weighted average remaining lease life 2.27 years 3.49 years Weighted average discount rate 13.00% 5.00% Operating leases: Weighted average remaining lease life 4.86 years 8.35 years Weighted average discount rate 12.00% 12.00% Supplemental cash flow information related to the leases was as follows (in thousands): Year Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Financing cash flows from finance leases $ 803 $ 92 Operating cash flows from finance leases $ 45 $ 17 Operating cash flows from operating leases $ 2,258 $ 1,106 Right-of-use assets obtained in exchange for lease obligations Finance leases $ 3,991 $ — Operating leases $ 4,179 $ 1,877 Other supplemental operating lease information consists of the following: At March 31, 2023, the Company’s minimum commitments under non-cancelable operating and finance leases were as follows (in thousands): Finance Operating Year Ending March 31, Leases Leases 2024 $ 1,017 $ 3,477 2025 1,017 3,424 2026 1,963 2,412 2027 — 255 2028 — 256 Thereafter — 2,138 Total lease payments $ 3,997 $ 11,962 Less: imputed interest (321) (2,882) Present value of lease liabilities $ 3,676 $ 9,080 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | 13. Commitments and Contingencies Purchase Commitments As of March 31, 2023, the Company had firm commitments to purchase inventories of approximately $54.2 million through Fiscal 2026. Certain inventory delivery dates and related payments are not scheduled; therefore amounts under these firm purchase commitments will be payable upon the receipt of the related inventories. Other Commitments The Company has agreements with certain of its distributors requiring that, if the Company renders parts obsolete in inventories the distributors own and hold in support of their obligations to serve fielded microturbines, then the Company is required to replace the affected stock at no cost to the distributors. While the Company has never incurred costs or obligations for these types of replacements, it is possible that future changes in the Company’s product technology could result and yield costs to the Company if significant amounts of inventory are held at distributors. As of March 31, 2023, no significant inventories were held at distributors. Legal Matters Capstone Turbine Corporation v. Turbine International, LLC. On February 3, 2020, Capstone Turbine Corporation filed suit against its former distributor, Turbine International, LLC (“Turbine Intl.”), in the Superior Court of California for the County of Los Angeles under the following caption: Capstone Turbine Corporation v. Turbine International, LLC; Case No. 20STCV04372 (“Capstone-Turbine Intl. Litigation”). The Company has alleged claims against Turbine Intl. for breach of contract and for injunctive relief relating to the parties’ prior distributor relationship, which terminated at the end of March 2018, and Turbine Intl.’s failure to satisfy its payment obligations under certain financial agreements, namely an accounts receivable agreement and promissory note in favor of Capstone. As remedies for these claims, the Company is seeking compensatory, consequential, along with injunctive relief and attorney’s fees, interest, and costs. On March 18, 2020, Turbine Intl. filed its answer and cross-claims in the Capstone-Turbine Intl. Litigation. In its cross-claims, Turbine Intl. asserted claims against Capstone, and individually against Mr. James Crouse, Capstone’s Chief Revenue Officer, for breach of contract under the distributor agreement, accounts receivable agreement and promissory note, fraud, breach of the covenant of good faith and fair dealing, unjust enrichment and constructive trust, negligent misrepresentation, violation of the California unfair practices act, violation of racketeer influenced corrupt organizations act, and conspiracy to commit fraud. As remedies for these alleged claims, Turbine Intl. are seeking compensatory, consequential, and punitive damages along with attorney’s fees, interest, and costs. Capstone answered the cross-claims on May 7, 2020. On June 29, 2020, Capstone filed a motion to file a First Amended Complaint that would add, among other things, a claim for enforcement of a guaranty signed by an entity related to Turbine Intl., Hispania Petroleum, S.A., and personal claims against the principals of Turbine Intl. and Hispania. That motion was granted on August 19, 2020, and the First Amended Complaint (“FAC”) is now on file. All of the new defendants have been served and have filed answers. The Company has not recorded any liability as of March 31, 2023 as the matter is too early to estimate. As of March 31, 2023, discovery had been served and answered on both sides. On May 17, 2024, the trial was set for July 29, 2024; and the court ordered the parties to mediate the matter by June 19, 2024. SEC Investigation In June 2023, prior to the issuance of the Company’s consolidated financial statements for the fiscal year ended March 31, 2023, the Audit Committee of the Company’s Board commenced the Revenue Recognition Investigation into certain accounting and internal control matters of the Company, principally focused on certain revenue recognition matters, and self-reported its findings to the Division of Enforcement of the Securities and Exchange Commission (the “SEC”) upon the conclusion of the Revenue Recognition Investigation. Following the self-report, The SEC Enforcement Division has commenced an investigation into the circumstances surrounding the Restatement (the “SEC Investigation”). The Audit Committee further self-reported its findings pursuant to the FPP Investigation to the SEC. The Company is cooperating with the SEC in connection with its investigation. Investigations of this nature may be costly and require management to devote significant time and attention away from the ongoing operation of the business. The Company cannot predict the duration or outcome of this matter. Cal Microturbine Arbitration On March 13, 2024, Cal Microturbine, a distributor of the Company, submitted a demand for arbitration before the American Arbitration Association seeking, among other things, approximately $24.5 million in damages and alleging that the Company breached its distributor agreement with Cal Microturbine and committed fraud in allowing another company, Capstone Engineered Solutions, to sell, rent and service turbines in Cal Microturbine’s exclusive territory under the distribution agreement. The parties are in the process of selecting the arbitration panel. The matter is in its preliminary stages with no hearing date set as of the date hereof. The Company cannot estimate the outcome and will fight this claim vigorously. Spitzer v. Flexon, Jamison, Juric, Robinson, and Hencken On October 13, 2023, a putative securities class action was filed in the U.S. District Court for the Central District of California, captioned Spitzer v. Flexon, et al., Case No. 2:23-cv-08659, naming certain of the Company’s current and former directors and officers as defendants. The suit alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder based on allegedly false and misleading statements regarding, and allegedly inadequate disclosure surrounding, the Company’s business, operations and prospects and the circumstances leading up to the restatement of the Company’s quarterly and annual financial statements. The suit is purportedly brought on behalf of persons and entities that purchased or otherwise acquired the Company’s securities between June 14, 2021 and September 22, 2023 and seeks to recover unspecified compensatory damages and other relief, including attorney’s fees. The Company may incur significant legal expenses in defending the legal matters described above during the pendency of these matters, and in connection with any other potential legal matters, including expenses for the potential reimbursement of legal fees of officers and directors under indemnification obligations. The Company anticipates these legal fees to not exceed the insurance deductible of $1.2 million. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2023 | |
Employee Benefit Plans | |
Employee Benefit Plans | 14. Employee Benefit Plans The Company maintains a defined contribution 401(k) profit-sharing plan in which all employees are eligible to participate. Employees may contribute up to Internal Revenue Service annual limits or, if less, 90% of their eligible compensation. Employees are fully vested in their contributions to the plan. The plan also provides for both Company matching and discretionary contributions, which are determined by the Board. The Company has been matching 50 cents on the dollar up to 6% of the employee’s contributions since February 2019. Prior to that date, the Company had been matching 50 cents on the dollar up to 4% of the employee’s contributions since October 2006. There were no Company contributions to the plan prior to October 2006. The Company’s match vests 25% a year over four years starting from the employee’s hire date. The Company recorded expense of approximately $0.2 million and $0.3 million for Fiscal 2023 and 2022, respectively. |
Other Assets
Other Assets | 12 Months Ended |
Mar. 31, 2023 | |
Other Assets | |
Other Assets | 15. Other Assets The Company was a party to a Development and License Agreement with Carrier Corporation (“Carrier”) regarding the payment of royalties on the sale of each of the Company’s 200 kilowatt (“C200”) microturbines. In 2013, the Company reached its repayment threshold level and the fixed rate royalty was reduced by 50%. On July 25, 2018, the Company and Carrier entered into a Second Amendment to the Development and License Agreement (“Second Amendment”) whereby the Company agreed to pay Carrier approximately $3.0 million to conclude the Company’s current royalty obligation under the Development and License Agreement, dated as of September 4, 2007, as amended (“Development Agreement”) and release the Company from any future royalty payment obligations. The Second Amendment also removed non-compete provisions from the Development Agreement, allowing the Company to design market or sell its C200 System in conjunction with any energy system and compete with Carrier products in the CCHP market. On September 19, 2018, the Company paid in full the negotiated royalty settlement of $3.0 million to Carrier, and as such, there is no further royalty obligation to Carrier. The prepaid royalty of $3.0 million has been recorded under the captions “Prepaid expenses and other current assets” and “Other assets” in the accompanying consolidated balance sheets and will be amortized in the accompanying consolidated statements of operations over a 15-year amortization period through September 2033 using an effective royalty rate. A 15-year amortization period is the minimum expected life cycle of the current generation of product. The effective royalty rate is calculated as the prepaid royalty settlement divided by total projected C200 System units over the 15-year amortization period. On a quarterly basis, the Company will perform a re-forecast of C200 System unit shipments, to determine if an adjustment to the effective royalty rate is necessary. Accordingly, if the Company’s future projections change, its effective royalty rates would change, which could affect the amount and timing of royalty expense the Company recognizes. If impairment exists, then the prepaid royalty asset could be written down to fair value. Prepaid royalties are classified as current assets to the extent that such amounts will be recognized in the Company’s consolidated statements of operations within the next twelve months. The current and long-term portions of prepaid royalties, included in other current assets and other assets, respectively, consisted of (in thousands): March 31, March 31, 2023 2022 Other current assets $ 124 $ 124 Other assets 2,381 2,506 Royalty-related assets $ 2,505 $ 2,630 |
Restatement of Consolidated Fin
Restatement of Consolidated Financial Statements | 12 Months Ended |
Mar. 31, 2023 | |
Restatement of Consolidated Financial Statements | |
Restatement of Consolidated Financial Statements | 16. Restatement of Consolidated Financial Statements As previously disclosed in the Current Report on Form 8-K filed by the Company on September 22, 2023 with the SEC, the Company’s previously issued financial statements included in its Annual Reports on Form 10-K for the fiscal year ended March 31, 2022, and each of the interim financial statements for the quarterly periods in 2023, 2022, and 2021 included in its Quarterly Reports on Form 10-Q (collectively, the “Restated Periods”), should no longer be relied upon and a restatement is required for these previously issued consolidated financial statements. In accordance with ASC Topic 250, Accounting Changes and Error Corrections, the Company has restated herein the unaudited financial information for the quarterly periods ended June 30, 2022, September 30, 2022, and December 31, 2022. The categories of misstatements and their impact on the Company’s previously issued consolidated financial statements are described in more detail below. Restatement of Previously Issued Consolidated Financial Statements In connection with the restatement, the Company restated the consolidated financial statements as of and for the years ended March 31, 2022 and March 31, 2021, as well as the relevant unaudited quarterly financial information for the quarterly periods ended June 30, 2021, September 30, 2021, December 31, 2021, June 30, 2020, September 30, 2020, and December 31, 2020 in its 2022 Annual Report, as amended, on Form 10-K/A, filed with the SEC on June 12, 2024. Description of Misstatements The following includes descriptions of the significant adjustments to the Company’s financial position and results of operations from previously reported consolidated financial statements. Revenue Recognition of Bill-and-Hold Arrangements (“Bill and Hold”) Some of previously recognized revenue that did not meet the bill-and-hold criteria, related to products, parts, and accessories that were subsequently returned to the Company. In the third quarter of fiscal year 2023, the Company began recording a sales return allowance for returned systems. Under the revised revenue recognition policy, the sales return allowance is no longer required . To correct this error, (i) the revenue and cost of goods sold were reversed in the period in which the accounting errors took place, (ii) the revenue and cost of goods sold was recognized in subsequent periods when all of the revenue recognition criteria had been met, and (iii) the bad debt expense relating to prematurely recognized revenue was reversed in the periods prior to achieving the revenue recognition criteria and recognized in subsequent periods consistent with the Company’s policy, and (iv) the sales return allowance was reversed in the period in which it was originally recorded. Additionally, the related adjustments to accounts receivable, inventory, accrued expenses, and deferred revenue were made in the consolidated financial statements for the relevant Restated Periods. In correcting for the bill-and-hold error, sales were identified where revenue was prematurely recognized, and the Company had entered into a subsequent agreement to lease the system from the customer to re-rent the system to others as part of the Company’s rental fleet (“Re-rent Agreement”). The Re-rent Agreements were recorded as finance leases under ASC 842, Leases. The related lease payments to the customer were recorded as a reduction to the customer’s outstanding accounts receivable balance from the initial recognition of the sale and no cash was exchanged. As the initial sale of the system to the customer did not satisfy the requirements for revenue recognition and the Re-rent Agreement lacked economic substance, the Company concluded the Re-rent Agreements were improperly accounted for as finance leases. Additionally, resulting from mandatory buyout clauses contained in certain Re-rent Agreements, the amounts owed to the customer as stated in the Re-rent Agreement exceeded the accounts receivable associated with the prematurely recognized sale. The Company concluded this payment reflected consideration payable to a customer under ASC 606. To correct this error (i) the finance lease right-of-use asset and lease liability were removed and the related system was recognized as a rental asset in the period the Re-rent Agreements were executed, (ii) the finance lease costs, including interest expense, and right-of-use asset amortization were reversed in the period the Re-rent Agreements were executed and subsequent periods, and (iii) consideration payable to a customer was recognized in the period the Re-rent Agreements were executed . Recognition of Costs Associated with Factory Protection Plan Contracts (“FPP Contracts”) for the term of the contract, typically 5, 10, 15, or 20 years, and recorded the costs when the replacement parts shipped and when the labor reimbursement request was received. In addition, FPP revenues and costs were presented on a gross basis in the Consolidated Statements of Operations. As part of the restatement efforts, the Company reviewed the previous accounting conclusions related to FPP recognition, including a separate analysis of the spare parts and labor reimbursement offerings and the general terms of the contract. For FPP Contract revenue, under both the spare parts and labor reimbursement offerings, the Company concluded revenue was properly recognized. As it relates to the accounting for spare parts (“FPP Parts”), the Company concluded the timing of cost recognition was delayed and the cost should be recognized when the customer orders the spare parts. As it relates to the accounting for labor reimbursement (“FPP Labor”), the income, based on the respective standalone selling price, and related costs should be presented on a net basis in the Consolidated Statements of Operations. In addition, the Company concluded the FPP Contract term is 30 days, as the customer has the right to cancel with a 30-day notice. The Company has since revised its policy, and related internal controls, to properly consider the recognize FPP Contracts. To correct this error, as it relates to FPP Parts, the cost of goods sold was recognized at the time the spare parts order was received and a liability was recognized for any orders that had not been shipped to the customers in the period the accounting error took place. As it relates to FPP Labor, the labor reimbursement cost was reversed out of cost of goods sold and reclassified to revenue, net. The Company also revised the FPP contract disclosure included in Note 2 – Summary of Significant Accounting Policies to reflect the revised classification of the contract term. The Company also corrected for revenue improperly recognized relating to a cancelled FPP contract. Note Classification Reclassifications Reclassifications • Finance and operating lease right-of-use assets, previously presented in Property, plant, equipment and rental assets, net and Other assets, respectively, have been reclassified to Finance lease right-of-use assets and Operating lease right-of-use assets, respectively. • Current finance and operating lease liabilities, both previously presented in Current portion of notes payable and lease obligations, have been reclassified to Finance lease liability, current and Operating lease liability, current, respectively. • Long-term finance and operating lease liabilities, both previously presented in Long-term portion of notes payable and lease obligations, have been reclassified to Finance lease liability, non-current and Operating lease liability, non-current, respectively. Description of Quarterly Restatement Tables The following tables present the impact of the restatement on the previously reported Consolidated Balance Sheets, Consolidated Statements of Operations, and Statements of Cash Flows for quarterly periods ended June 30, 2022, September 30, 2022, and December 31, 2022. Changes to the Consolidated Statements of Stockholders’ Equity (Deficiency) for the quarterly periods ended June 30, 2022, September 30, 2022, and December 31, 2022 as a result of the restatement are due to the changes in net income. The values as previously reported for the quarterly periods ended June 30, 2022, September 30, 2022, and December 31, 2022 were derived from our Quarterly Reports on Form 10-Q filed on August 11, 2022, November 14, 2022, and February 14, 2023, respectively. As of June 30, 2022 FPP Note (in thousands) As Reported Reclassifications Bill and Hold Contracts Classification As Restated Assets Current Assets: Cash and cash equivalents $ 16,914 $ — $ — $ — $ — $ 16,914 Accounts receivable, net of allowances 24,168 — (9,871) (18) — 14,279 Inventories, net 18,608 — 9,255 — — 27,863 Prepaid expenses and other current assets 6,468 — — — — 6,468 Total current assets 66,158 — (616) (18) — 65,524 Property, plant, equipment and rental assets, net 21,694 (2,560) 1,484 — — 20,618 Finance lease right-of-use assets — 2,560 (1,886) — — 674 Operating lease right-of-use assets — 6,321 — — — 6,321 Non-current portion of accounts receivable 1,056 — (1,056) — — — Non-current portion of inventories 2,013 — — — — 2,013 Other assets 8,933 (6,321) — — — 2,612 Total assets $ 99,854 $ — $ (2,074) $ (18) $ — $ 97,762 Liabilities and Stockholders’ (Deficiency) Equity Current Liabilities: Accounts payable and accrued expenses $ 22,238 $ — $ — $ — $ — $ 22,238 Accrued salaries and wages 1,360 — — — — 1,360 Accrued warranty reserve 1,527 — — — — 1,527 Deferred revenue 9,694 — 3,988 — — 13,682 Current portion of notes payable and lease obligations 1,930 (1,409) — — — 521 Finance lease liability, current — 645 (454) — — 191 Operating lease liability, current — 764 — — — 764 Factory protection plan liability — — — 10,727 — 10,727 Term note payable — — — — 50,957 50,957 Total current liabilities 36,749 — 3,534 10,727 50,957 101,967 Deferred revenue, non-current 934 — — — — 934 Long-term portion of notes payable and lease obligations 7,627 (7,627) — — — — Finance lease liability, non-current — 1,853 (1,376) — — 477 Operating lease liability, non-current — 5,774 — — — 5,774 Term note payable, non-current 50,957 — — — (50,957) — Other long-term liabilities — — 265 — — 265 Total liabilities 96,267 — 2,423 10,727 — 109,417 Stockholders’ (Deficiency) Equity: Common stock 15 — — — — 15 Additional paid-in capital 947,237 — — — — 947,237 Accumulated deficit (941,541) — (4,497) (10,745) — (956,783) Treasury stock (2,124) — — — — (2,124) Total stockholders’ (deficiency) equity 3,587 — (4,497) (10,745) — (11,655) Total liabilities and stockholders' (deficiency) equity $ 99,854 $ — $ (2,074) $ (18) $ — $ 97,762 As of September 30, 2022 FPP Note (in thousands) As Reported Reclassifications Bill and Hold Contracts Classification As Restated Assets Current Assets: Cash and cash equivalents $ 23,780 $ — $ — $ — $ — $ 23,780 Accounts receivable, net of allowances 18,189 — (4,540) (74) — 13,575 Inventories, net 21,801 — 10,293 — — 32,094 Prepaid expenses and other current assets 7,039 — — — — 7,039 Total current assets 70,809 — 5,753 (74) — 76,488 Property, plant, equipment and rental assets, net 25,375 (6,888) 1,607 — — 20,094 Finance lease right-of-use assets — 6,888 (2,080) — — 4,808 Operating lease right-of-use assets — 9,075 — — — 9,075 Non-current portion of accounts receivable 1,109 — (1,109) — — — Non-current portion of inventories 2,277 — — — — 2,277 Other assets 11,735 (9,075) — — — 2,660 Total assets $ 111,305 $ — $ 4,171 $ (74) $ — $ 115,402 Liabilities and Stockholders’ (Deficiency) Equity Current Liabilities: Accounts payable and accrued expenses $ 24,344 $ — $ — $ — $ — $ 24,344 Accrued salaries and wages 1,123 — — — — 1,123 Accrued warranty reserve 1,662 — — — — 1,662 Deferred revenue 10,686 — 9,581 — — 20,267 Current portion of notes payable and lease obligations 3,215 (2,955) — — — 260 Finance lease liability, current — 1,262 (496) — — 766 Operating lease liability, current — 1,693 — — — 1,693 Factory protection plan liability — — — 10,192 — 10,192 Term note payable — — — — 50,966 50,966 Total current liabilities 41,030 — 9,085 10,192 50,966 111,273 Deferred revenue, non-current 915 — — — — 915 Long-term portion of notes payable and lease obligations 12,321 (12,321) — — — — Finance lease liability, non-current — 4,749 (1,468) — — 3,281 Operating lease liability, non-current — 7,572 — — — 7,572 Term note payable, non-current 50,966 — — — (50,966) — Other long-term liabilities — — 265 — — 265 Total liabilities 105,232 — 7,882 10,192 — 123,306 Stockholders’ (Deficiency) Equity: Common stock 18 — — — — 18 Additional paid-in capital 954,750 — — — — 954,750 Accumulated deficit (946,556) — (3,711) (10,266) — (960,533) Treasury stock (2,139) — — — — (2,139) Total stockholders’ (deficiency) equity 6,073 — (3,711) (10,266) — (7,904) Total liabilities and stockholders' (deficiency) equity $ 111,305 $ — $ 4,171 $ (74) $ — $ 115,402 As of December 31, 2022 FPP (in thousands) As Reported Reclassifications Bill and Hold Contracts As Restated Assets Current Assets: Cash and cash equivalents $ 16,618 $ — $ — $ — $ 16,618 Accounts receivable, net of allowances 15,119 — (3,579) (129) 11,411 Inventories, net 25,602 — 8,267 — 33,869 Prepaid expenses and other current assets 7,125 — — — 7,125 Total current assets 64,464 — 4,688 (129) 69,023 Property, plant, equipment and rental assets, net 25,906 (6,694) 1,565 — 20,777 Finance lease right-of-use assets — 6,694 (2,025) — 4,669 Operating lease right-of-use assets — 8,702 — — 8,702 Non-current portion of accounts receivable 107 — (107) — — Non-current portion of inventories 3,055 — — — 3,055 Other assets 11,334 (8,702) — — 2,632 Total assets $ 104,866 $ — $ 4,121 $ (129) $ 108,858 Liabilities and Stockholders’ (Deficiency) Equity Current Liabilities: Accounts payable and accrued expenses $ 26,087 $ — $ (284) $ — $ 25,803 Accrued salaries and wages 1,421 — — — 1,421 Accrued warranty reserve 1,540 — — — 1,540 Deferred revenue 9,699 — 7,772 — 17,471 Current portion of notes payable and lease obligations 2,201 (2,201) — — — Finance lease liability, current — 908 (118) — 790 Operating lease liability, current — 1,293 — — 1,293 Factory protection plan liability — — — 11,848 11,848 Term note payable 50,974 — — — 50,974 Total current liabilities 91,922 — 7,370 11,848 111,140 Deferred revenue, non-current 817 — — — 817 Long-term portion of notes payable and lease obligations 11,036 (11,036) — — — Finance lease liability, non-current — 3,464 (392) — 3,072 Operating lease liability, non-current — 7,572 — — 7,572 Term note payable, non-current — Other long-term liabilities — — 265 — 265 Total liabilities 103,775 — 7,243 11,848 122,866 Stockholders’ (Deficiency) Equity: Common stock 18 — — — 18 Additional paid-in capital 954,982 — — — 954,982 Accumulated deficit (951,770) — (3,122) (11,977) (966,869) Treasury stock (2,139) — — — (2,139) Total stockholders’ (deficiency) equity 1,091 — (3,122) (11,977) (14,008) Total liabilities and stockholders' (deficiency) equity $ 104,866 $ — $ 4,121 $ (129) $ 108,858 Three Months Ended June 30, 2022 FPP (in thousands) As Reported Bill and Hold Contracts As Restated Revenue, net: Product and accessories $ 9,167 $ 367 $ — $ 9,534 Parts, service and rentals 9,485 (70) (184) 9,231 Total revenue, net 18,652 297 (184) 18,765 Cost of goods sold: Product and accessories 8,891 878 — 9,769 Parts, service and rentals 5,055 36 1,391 6,482 Total cost of goods sold 13,946 914 1,391 16,251 Gross profit 4,706 (617) (1,575) 2,514 Operating expenses: Research and development 490 — — 490 Selling, general and administrative 4,919 — — 4,919 Total operating expenses 5,409 — — 5,409 Loss from operations (703) (617) (1,575) (2,895) Other income (expense) 2 — — 2 Interest income 6 — — 6 Interest expense (1,362) 51 — (1,311) Gain (loss) on debt extinguishment — — — — Loss before provision for income taxes (2,057) (566) (1,575) (4,198) Provision for income taxes 2 — — 2 Net loss (2,059) (566) (1,575) (4,200) Less: Deemed dividend on purchase warrant for common shares — — — — Net loss attributable to common stockholders $ (2,059) $ (566) $ (1,575) $ (4,200) Net loss per share—basic and diluted $ (0.13) $ (0.04) $ (0.10) $ (0.27) Weighted average shares outstanding 15,318 15,318 15,318 15,318 Three Months Ended September 30, 2022 FPP (in thousands) As Reported Bill and Hold Contracts As Restated Revenue, net: Product and accessories $ 10,603 $ (1,009) $ — $ 9,594 Parts, service and rentals 10,172 529 (171) 10,530 Total revenue, net 20,775 (480) (171) 20,124 Cost of goods sold: Product and accessories 12,496 (1,452) — 11,044 Parts, service and rentals 6,103 237 (650) 5,690 Total cost of goods sold 18,599 (1,215) (650) 16,734 Gross profit 2,176 735 479 3,390 Operating expenses: Research and development 603 — — 603 Selling, general and administrative 5,107 — — 5,107 Total operating expenses 5,710 — — 5,710 Loss from operations (3,534) 735 479 (2,320) Other income (expense) (50) — — (50) Interest income 26 — — 26 Interest expense (1,356) 51 — (1,305) Gain (loss) on debt extinguishment — — — — Loss before provision for income taxes (4,914) 786 479 (3,649) Provision for income taxes 4 — — 4 Net loss (4,918) 786 479 (3,653) Less: Deemed dividend on purchase warrant for common shares 97 — — 97 Net loss attributable to common stockholders $ (5,015) $ 786 $ 479 $ (3,750) Net loss per share—basic and diluted $ (0.30) $ 0.05 $ 0.03 $ (0.22) Weighted average shares outstanding 16,785 16,785 16,785 16,785 Six Months Ended September 30, 2022 FPP (in thousands) As Reported Bill and Hold Contracts As Restated Revenue, net: Product and accessories $ 19,770 $ (642) $ — $ 19,128 Parts, service and rentals 19,657 459 (355) 19,761 Total revenue, net 39,427 (183) (355) 38,889 Cost of goods sold: Product and accessories 21,387 (574) — 20,813 Parts, service and rentals 11,158 273 741 12,172 Total cost of goods sold 32,545 (301) 741 32,985 Gross profit 6,882 118 (1,096) 5,904 Operating expenses: Research and development 1,093 — — 1,093 Selling, general and administrative 10,026 — — 10,026 Total operating expenses 11,119 — — 11,119 Loss from operations (4,237) 118 (1,096) (5,215) Other income (expense) (48) — — (48) Interest income 32 — — 32 Interest expense (2,718) 102 — (2,616) Gain (loss) on debt extinguishment — — — — Loss before provision for income taxes (6,971) 220 (1,096) (7,847) Provision for income taxes 6 — — 6 Net loss (6,977) 220 (1,096) (7,853) Less: Deemed dividend on purchase warrant for common shares 97 — — 97 Net loss attributable to common stockholders $ (7,074) $ 220 $ (1,096) $ (7,950) Net loss per share—basic and diluted $ (0.44) $ 0.01 $ (0.07) $ (0.50) Weighted average shares outstanding 16,056 16,056 16,056 16,056 Three Months Ended December 31, 2022 FPP (in thousands) As Reported Bill and Hold Contracts As Restated Revenue, net: Product and accessories $ 10,003 $ 1,424 $ — $ 11,427 Parts, service and rentals 9,603 172 (192) 9,583 Total revenue, net 19,606 1,596 (192) 21,010 Cost of goods sold: Product and accessories 11,630 837 — 12,467 Parts, service and rentals 5,307 17 1,519 6,843 Total cost of goods sold 16,937 854 1,519 19,310 Gross profit 2,669 742 (1,711) 1,700 Operating expenses: Research and development 633 — — 633 Selling, general and administrative 5,397 200 — 5,597 Total operating expenses 6,030 200 — 6,230 Loss from operations (3,361) 542 (1,711) (4,530) Other income (expense) 5 — — 5 Interest income 42 — — 42 Interest expense (1,900) 47 — (1,853) Gain (loss) on debt extinguishment — — — — Loss before provision for income taxes (5,214) 589 (1,711) (6,336) Provision for income taxes — — — — Net loss (5,214) 589 (1,711) (6,336) Less: Deemed dividend on purchase warrant for common shares — — — — Net loss attributable to common stockholders $ (5,214) $ 589 $ (1,711) $ (6,336) Net loss per share—basic and diluted $ (0.28) $ 0.03 $ (0.09) $ (0.35) Weighted average shares outstanding 18,351 18,351 18,351 18,351 Nine Months Ended December 31, 2022 FPP (in thousands) As Reported Bill and Hold Contracts As Restated Revenue, net: Product and accessories $ 29,773 $ 782 $ — $ 30,555 Parts, service and rentals 29,260 631 (547) 29,344 Total revenue, net 59,033 1,413 (547) 59,899 Cost of goods sold: Product and accessories 33,017 263 — 33,280 Parts, service and rentals 16,465 290 2,260 19,015 Total cost of goods sold 49,482 553 2,260 52,295 Gross profit 9,551 860 (2,807) 7,604 Operating expenses: Research and development 1,726 — — 1,726 Selling, general and administrative 15,423 200 — 15,623 Total operating expenses 17,149 200 — 17,349 Loss from operations (7,598) 660 (2,807) (9,745) Other income (expense) (43) — — (43) Interest income 74 — — 74 Interest expense (4,618) 149 — (4,469) Gain (loss) on debt extinguishment — — — — Loss before provision for income taxes (12,185) 809 (2,807) (14,183) Provision for income taxes 6 — — 6 Net loss (12,191) 809 (2,807) (14,189) Less: Deemed dividend on purchase warrant for common shares 97 — — 97 Net loss attributable to common stockholders $ (12,288) $ 809 $ (2,807) $ (14,286) Net loss per share—basic and diluted $ (0.73) $ 0.05 $ (0.17) $ (0.85) Weighted average shares outstanding 16,824 16,824 16,824 16,824 Three Months Ended June 30, 2022 FPP (in thousands) As Reported Reclassifications Bill and Hold Contracts As Restated Cash Flows from Operating Activities: Net loss $ (2,059) $ — $ (566) $ (1,575) $ (4,200) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 661 — (10) — 651 Amortization of financing costs and discounts 43 — — — 43 Amortization of right-of-use assets 151 — — — 151 Inventory provision 270 — — — 270 Provision for warranty expenses 174 — — — 174 Stock-based compensation 232 — — — 232 Changes in operating assets and liabilities: Accounts receivable 653 — 926 18 1,597 Inventories (746) — 924 — 178 Prepaid expenses, other current assets and other assets (253) — — — (253) Accounts payable and accrued expenses (3,112) 179 265 — (2,668) Operating lease liability — (179) — — (179) Accrued salaries and wages and long-term liabilities 212 — — — 212 Accrued warranty reserve (130) — — — (130) Deferred revenue 462 — (1,662) — (1,200) Factory protection plan liability — — — 1,557 1,557 Net cash used in operating activities (3,442) — (123) — (3,565) Cash Flows from Investing Activities: Expenditures for property, plant, equipment and rental assets (1,887) — — — (1,887) Net cash used in investing activities (1,887) — — — (1,887) Cash Flows from Financing Activities: Repayment of notes payable and lease obligations (316) — 123 — (193) Cash used in employee stock-based transactions (36) — — — (36) Net proceeds from issuance of common stock and warrants 36 — — — 36 Net cash used in financing activities (316) — 123 — (193) Net increase (decrease) increase in Cash and Cash Equivalents (5,645) — — — (5,645) Cash and Cash Equivalents, Beginning of Period 22,559 — — — 22,559 Cash and Cash Equivalents, End of Period $ 16,914 $ — $ — $ — $ 16,914 Six Months Ended September 30, 2022 FPP (in thousands) As Reported Reclassifications Bill and Hold Contracts As Restated Cash Flows from Operating Activities: Net loss $ (6,977) $ — $ 220 $ (1,096) $ (7,853) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,493 — (23) — 1,470 Amortization of financing costs and discounts 51 — — — 51 Amortization of right-of-use assets 475 — — — 475 Bad debt expense (recovery) 75 — — — 75 Inventory provision 420 — — — 420 Provision for warranty expenses 364 — — — 364 (Gain) loss on disposal of equipment 279 — — — 279 Stock-based compensation 386 — — — 386 Changes in operating assets and liabilities: Accounts receivable 6,504 — (4,502) 74 2,076 Inventories (4,353) — (278) — (4,631) Prepaid expenses, other current assets and other assets (874) — — — (874) Accounts payable and accrued expenses (1,667) 531 265 — (871) Operating lease liability — (531) — — (531) Accrued salaries and wages and long-term liabilities (23) — — — (23) Accrued warranty reserve (185) — — — (185) Deferred revenue 1,435 — 3,931 — 5,366 Factory protection plan liability — — — 1,022 1,022 Net cash used in operating activities (2,597) — (387) — (2,984) Cash Flows from Investing Activities: Expenditures for property, plant, equipment and rental assets (2,564) — — — (2,564) Net cash used in investing activities (2,564) — — — (2,564) Cash Flows from Financing Activities: Repayment of notes payable and lease obligations (868) — 387 — (481) Cash used in employee stock-based transactions (52) — — — (52) Net proceeds from issuance of common stock and warrants 7,302 — — — 7,302 Net cash provided by financing activities 6,382 — 387 — 6,769 Net increase (decrease) increase in Cash and Cash Equivalents 1,221 — — — 1,221 Cash and Cash Equivalents, Beginning of Period 22,559 — — — 22,559 Cash and Cash Equivalents, End of Period $ 23,780 $ — $ — $ — $ 23,780 Nine Months Ended December 31, 2022 FPP (in thousands) As Reported Reclassifications Bill and Hold Contracts As Restated Cash Flows from Operating Activities: Net loss $ (12,191) $ — $ 809 $ (2,807) $ (14,189) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 2,345 — (36) — 2,309 Amortization of financing costs and discounts 60 — — — 60 Amortization of right-of-use assets 848 — — — 848 Bad debt expense (recovery) 237 — 200 — 437 Inventory provision 771 — — — 771 Provision for warranty expenses 369 — — — 369 Provision for sales returns, net 81 — (81) — — Stock-based compensation 617 — — — 617 Changes in operating assets and liabilities: Accounts receivable 9,077 — (5,481) 129 3,725 Inventories (9,080) — 1,545 — (7,535) Prepaid expenses, other current assets and other assets (933) — — — (933) Accounts payable and accrued expenses (276) 931 265 — 920 Operating lease liability — (931) — — (931) Accrued salaries and wages and long-term liabilities 274 — — — 274 Accrued warranty reserve (312) — — — (312) Deferred revenue 350 — 2,122 — 2,472 Factory protection plan liability — — — 2,678 2,678 Net cash used in operating activities (7,763) — (657) — (8,420) Cash Flows from Investing Activities: Expenditures for property, plant, equipment and rental assets (3,999) — — — (3,999) Net cash used in investing activities (3,999) — — — (3,999) Cash Flows from Financing Activities: Repayment of notes payable and lease obligations (1,429) — 657 — (772) Cash used in employee stock-based transactions (52) — — — (52) Net proceeds from issuance of common stock and warrants 7,302 — — — 7,302 Net cash provided by financing activities 5,821 — 657 — 6,478 Net increase (decrease) increase in Cash and Cash Equivalents (5,941) — — — (5,941) Cash and Cash Equivalents, Beginning of Period 22,559 — — — 22,559 Cash and Cash Equivalents, End of Period $ 16,618 $ — $ — $ — $ 16,618 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2023 | |
Subsequent Events | |
Subsequent Events | 17. Subsequent Events On July 6, 2023, the Company entered into a Fourth Amendment (the “Fourth Amendment”) to the A&R Note Purchase Agreement among the Company, certain subsidiaries of the Company, Goldman and the purchaser party thereto (the “Purchaser”). The Fourth Amendment provides for (i) the waiver by the Purchaser and the Collateral Agent of the Company’s breach of the minimum Consolidated Liquidity covenant contained in the A&R Note Purchase Agreement, the failure to make the interest payment for the most recently ended quarter and certain other breaches specified therein; (ii) the extension of the maturity of the $50 million aggregate principal amount of Notes outstanding pursuant to the A&R Note Purchase Agreement from October 1, 2023 to September 1, 2024; (iii) an amendment fee payable by the Company at maturity equal to 1.00% of the principal balance of the Notes on the Effective Date; (iv) a due date for the next interest payment on the date that is 30 days from the Effective Date, which interest payment was originally due on July 3, 2023; (v) following the Company’s entry into a Transaction Support Agreement (as defined below), the payment-in-kind of the quarterly interest payments that are due following the next the interest payment; (vi) a new minimum Consolidated Liquidity covenant requirement of $4.0 million, commencing on July 14, 2023, which amount will increase to $4.5 million on August 16, 2023 and to $6.0 million on August 31, 2023; (vii) the replacement of the Adjusted LIBO Rate with a Term SOFR interest rate benchmark; (viii) the ability for Goldman to either (A) force a conversion of the interest rate benchmark to Base Rate or (B) impose default interest during an Event of Default; (ix) the right for one designated Goldman board observer to attend the meetings of the Company’s Board of Directors (and committees thereof) in a non-voting capacity, subject to certain customary exceptions; and (x) the amendment to certain provisions of the A&R Note Purchase Agreement, including to add a number of new covenants. Those new covenants include requirements that the Company (i) enter into a transaction support agreement with one or more lenders in form and substance mutually satisfactory to Goldman and the Company (the “Transaction Support Agreement”) within 30 days of the Effective Date; (ii) subject to necessary stockholder approvals, execute and deliver, or reach agreement on substantially final versions of, the definitive documentation with respect of the transactions specified in the Transaction Support Agreement in form and substance satisfactory to the Collateral Agent within 45 days after the Effective Date; (iii) close the transactions specified by the Transaction Support Agreement by September 15, 2023; and (iv) provide a Section 382 analysis (i.e., an analysis relating to the potential limitation of the use of the Company’s net operating loss carryforwards due to ownership changes, which loss carryforwards the Company understands may be potentially valuable in one or more transaction structures) to Goldman on a quarterly basis. The Fourth Amendment also imposes restrictions on the Company’s ability to (i) pay professional fees for the next 30 days in excess of $2,000,000 in the aggregate; (ii) make certain other cash disbursements in excess of thresholds set forth in the Fourth Amendment; and (iii) amend existing, or enter into new, employment agreements or pay or incur any bonus or severance payment. On August 16, 2023, the Company entered into a Fifth Amendment (the “Fifth Amendment”) to the A&R Note Purchase Agreement among the Company, certain subsidiaries of the Company, Goldman and the purchaser. The Fifth Amendment provides for (i) the waiver by the Purchaser and the Collateral Agent of the Company’s breach of a covenant contained in the A&R Note Purchase Agreement to enter into a transaction support agreement with one or more lenders in form and substance mutually satisfactory to the Collateral Agent and the Company (the “Transaction Support Agreement”) within 30 days of the Fourth Amendment Effective Date and the failure to make an interest payment within 30 days of the Fourth Amendment Effective Date; (ii) a due date for the next interest payment on August 22, 2023 or such later date as is agreed to by the Collateral Agent in its sole discretion, which interest payment was originally due within 30 days of the effective date of the Fourth Amendment to the A&R Note Purchase Agreement; (iii) a minimum Consolidated Liquidity covenant requirement of $3.5 million, commencing on July 14, 2023 and operative through September 1, 2024; and (iv) the amendment of the milestones with respect of the Transaction Support Agreement to require that the Company (A) agree to the terms and form of the Transaction Support Agreement (which may include a structure including bankruptcy proceedings) with one or more lenders in form and substance mutually satisfactory to the Collateral Agent and the Company by August 22, 2023 or such later date as is agreed to by the Collateral Agent in its sole discretion,(B) subject to any necessary stockholder approvals, execute and deliver, or reach agreement on substantially final versions of, the definitive documentation with respect of the transactions specified in the Transaction Support Agreement in form and substance satisfactory to the Collateral Agent by August 31, 2023 or such later date as is agreed to by the Collateral Agent in its sole discretion, and (C) that the Company shall have closed the transactions specified by the Transaction Support Agreement by September 15, 2023 or such later date as is agreed by the Collateral Agent in its sole discretion. On September 22, 2023, the Company entered into a Sixth Amendment (the “Sixth Amendment”) to the Amended and Restated Note Purchase Agreement among the Company, certain subsidiaries of the Company, Goldman Sachs Specialty Lending Group, L.P. and the purchaser. Pursuant to the Sixth Amendment, the Company issued and the Purchaser purchased for $3,000,000 in cash additional senior secured notes on September 22, 2023 (the “Additional Notes”). The Additional Notes bear interest at the SOFR Rate plus 8.75% per annum, payable-in-kind on the last day of each interest period of one-, two-, three- or six-months (but, in the case of a six-month interest period, every three-months). The entire principal amount of the Additional Notes is due and payable on September 1, 2024 (the “Maturity Date”). The Additional Notes do not amortize and the entire principal balance is due in a single payment on the Maturity Date. Voluntary Filing under Chapter 11 On September 28, 2023, the Company and its wholly owned direct subsidiaries, Capstone Turbine International, Inc. (“Capstone Turbine International”) and Capstone Turbine Financial Services, LLC. (together with the Company, the “Debtors”), commenced voluntary proceedings under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). The Chapter 11 proceedings were jointly administered under the caption In re Capstone Green Energy Corporation, Inc., et al. Concurrent with the petition, the Debtors entered into the Transaction Support Agreement with the pre-petition senior secured creditor, Broad Street Credit Holdings, LLC. (“Broad Street”), and Goldman Sachs Specialty Lending Group, L.P. (the “Collateral Agent”). The Transaction Support Agreement, among other things, provides that Broad Street and the Collateral Agent will support the Debtors’ restructuring efforts as set forth in, and subject to the terms and conditions of, the Transaction Support Agreement. The Transaction Support Agreement contains customary conditions, representations, and warranties of the parties and is subject to a number of conditions, including, among others, the accuracy of the representations and warranties of the parties and compliance with the obligations set forth in the Transaction Support Agreement. The Transaction Support Agreement also provides for termination by the parties upon the occurrence of certain events. DIP Note Purchase Agreement On October 3, 2023, the Debtors entered into a super-priority senior secured debtor-in-possession note purchase agreement (the “DIP Note Purchase Agreement”) with Broad Street and the Collateral Agent. Broad Street provided the Debtors with a credit facility (the “DIP Facility”) in an aggregate principal amount of $30.0 million, consisting of (1) $12.0 million new money DIP notes, and (2) a roll-up of secured obligations under the existing pre-petition debt with Broad Street in the amount of $18.0 million, subject to the terms and conditions set forth in the DIP Note Purchase Agreement. On September 28, 2023, the Debtors filed the Motion of Debtors for Interim and Final Orders (I) Authorizing the Debtors to Obtain Senior Secured Postpetition Financing, (II) Granting Liens and Superpriority Administrative Expense Status, (III) Authorizing the Use of Cash Collateral, (IV) Granting Adequate Protection to Pre-Petition Secured Parties, (V) Scheduling a Final Hearing, and (VI) Granting Related Relief On October 2, 2023, the Bankruptcy Court granted the DIP Motion and entered an interim order (the “Interim DIP Order”) approving the DIP Facility on an interim basis and providing the Debtors with the necessary liquidity to continue to operate in Chapter 11. Upon entry of the Interim DIP Order and satisfaction of all applicable conditions precedent, as set forth in the DIP Note Purchase Agreement, the Debtors were authorized to make a single, initial draw of $9.0 million on the DIP Facility (the “Initial Draw”). The remaining $3.0 million of the DIP Facility became available to be drawn by the Debtors on November 13, 2023, after the Bankruptcy Court entered the Final DIP Order (the “Final Order”). The amount was drawn by the Debtors on October 24, 2023, after the entry of the Final Order and compliance with the terms, conditions, and covenants to be set forth in the DIP Documents. Substantially all of the Debtors’ assets were encumbered by first-priority liens of the Purchaser. The Bankruptcy Court originally set a final hearing date on November 7, 2023, in accordance with the requirements of the Transaction Support Agreement. On November 3, 2023, the final hearing was cancelled and rescheduled to November 13, 2023, with the permission of the Bankruptcy Court. Emergence from Voluntary Chapter 11 Proceedings The Bankruptcy Court confirmed the Plan on November 14, 2023, and the Debtors satisfied all conditions required for Plan effectiveness and emerged from the Chapter 11 Cases ("Emergence") on December 7, 2023. On or following the emergence date and pursuant to the terms of the Plan, the following occurred or became effective: ▪Restructuring: The Company was reorganized pursuant to the Transaction Support Agreement and became a private company that continues to own assets consisting of (i) all of the Company’s right, title, and interest in and to certain trademarks of the Company and (ii) assets owned by the Company relating to distributor support services ((i) and (ii) together, the “Retained Assets”) and certain income tax attributes that remained with Reorganized PrivateCo. Capstone Turbine International became a publicly traded company and was renamed Capstone Green Energy Holdings, Inc. This entity is the successor entity for purposes of Securities and Exchange Commission registration. Pre-petition equity holders received 100% of the common equity in this public entity, subject to dilution for any equity incentive plans implemented as part of the reorganization. All equity of the predecessor entity was cancelled, and the predecessor entity became a reorganized private company. The reorganized private company equity is owned 100% by the pre-petition senior secured lender in exchange for the satisfaction of $35.0 million of its pre-petition claims, and $10.0 million of its DIP claim. A new subsidiary to the public entity was created, issuing 100% of its common equity to the public entity, and 100% of its preferred equity to the reorganized private entity. Such new subsidiary conducts all of the Capstone business (other than in respect of the Retained Assets). The preferred equity is convertible at the option of the holder at any time to 37.5% of the common equity deemed outstanding, making the common equity of the new subsidiary subject to dilution to 62.5% ownership. ▪Exit Financing: The DIP Facility converted into an exit facility (as defined herein) for an aggregate principal amount of $27.0 million, consisting of (1) $7.0 million new money notes, (2) a roll-up of secured obligations under the pre-petition debt in the amount of $8.0 million, and (3) a roll-up of the DIP new money notes of $12.0 million, subject to the terms and conditions set forth in the Exit Note Purchase Agreement by and among Capstone Green Energy LLC, as the issuer, Capstone Green Energy Holdings, Inc. and Capstone Turbine Financial Services, LLC, as the guarantors, Broad Street and the Collateral Agent. The new money notes mature two years from the Effective Date, and the roll-up debts mature three years from the emergence date. Interest is calculated using a SOFR rate plus an applicable margin, and a portion is paid-in-kind until the third year following emergence. In the original Plan, the exit facility was to be for an aggregate principal amount of $25.0 million, with only $5.0 million in new money notes. The final approved Plan increased the new money notes to $7.0 million upon the confirmation of the Plan by Bankruptcy Court. Nasdaq Delisting of Common Stock Effective at the opening of the trading session on October 5, 2023, the Company’s common stock was suspended from trading on the Nasdaq Capital Market. Effective October 23, 2023, the Company’s common stock was delisted from the Nasdaq Capital Market. Capstone Green Energy Holdings, Inc. 2023 Equity Incentive Plan In connection with the Emergence, on November 30, 2023, the Capstone Green Energy Holdings, Inc. 2023 Equity Incentive Plan (the “Incentive Plan”) was approved and adopted by the Board. The Incentive Plan is intended to, among other things, (i) attract and retain the types of employees, consultants and directors who will contribute the Company’s long-term success, (ii) provide incentives that align the interests of employees, consultants and directors with those of the stockholders of the Company, and (iii) promote the success of the Company’s business. The Incentive Plan was not approved by the Company’s stockholders. All outstanding unvested equity awards outstanding under the Capstone Green Energy Corporation 2017 Equity Incentive Plan were cancelled on the Effective Date in accordance with the Plan. The Incentive Plan is administered by the Compensation and Human Capital Committee or the Board. No more than 3,000,000 shares of New Common Stock are available for the grant of awards under the Incentive Plan. The Company intends to issue equity awards to incentivize employees whose unvested equity awards were terminated in accordance with the Plan. The aggregate value of awards granted during a single fiscal year to any non-employee director, together with any cash fees paid or to be paid to such non-employee director during the fiscal year and the value of awards granted to such non-employee director under any other equity compensation plan of the Company during the fiscal year, will not exceed a total value of $300,000. The Board at any time, and from time to time, may amend or terminate the Incentive Plan. However, (i) in some situations, no amendment shall be effective unless approved by the stockholders of the Company to the extent stockholder approval is necessary to satisfy any applicable laws, and (ii) rights under any award granted before an amendment shall not be impaired by any amendment without the grantee’s written. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Cash Equivalents | Cash Equivalents |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Accounts Receivable | Accounts Receivable Balance, March 31, 2021 $ 197 Additions charged to expenses 391 Bad debt write-off (2) Balance, March 31, 2022 $ 586 Additions charged to expenses 4,277 Bad debt write-off (50) Balance, March 31, 2023 $ 4,813 |
Inventories | Inventories |
Depreciation and Amortization | Depreciation and Amortization two lease term or the estimated useful lives of the assets, whichever is shorter |
Long-Lived Assets | Long-Lived Assets |
Deferred Revenue | Deferred Revenue |
Revenue | Revenue The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation Microturbine Products Accessories Parts and Services Factory Protection Plan 30-day 5 10 15 Some FPPs offer a labor reimbursement on the labor performed on a microturbine system. Due to the nature of the arrangement, labor reimbursements are accounted for under ASC 460. See below for additional information on the labor reimbursement within the FPP offering. Comprehensive factory protection plan service contracts require payment at the beginning of the contract period. Advance payments are not considered a significant financing component as they are typically received less than one year before the related performance obligations are satisfied. These payments are treated as a contract liability and are classified in deferred revenue in the Consolidated Balance Sheets. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Consolidated Statement of Operations. The deferred revenue relating to the annual maintenance service contracts is recognized in the Consolidated Statement of Operations on a straight-line basis over the expected term of the contract. Significant Judgments - Contracts with Multiple Performance Obligations The Company enters into contracts with its customers that often include promises to transfer multiple products, parts, accessories, FPP and services. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment. Products, parts and accessories are distinct as such services are often sold separately. In determining whether FPP and other service contracts are distinct, the Company considers the following factors for each FPP and services agreement: availability of the services from other vendors, the nature of the services, the timing of when the services contract was signed in comparison to the product delivery date and the contractual dependence of the product on the customer’s satisfaction with the professional services work. To date, the Company has concluded that all of the FPP and services contracts included in contracts with multiple performance obligations are distinct. The Company allocates the transaction price to each performance obligation on a relative stand-alone selling price (“SSP”) basis. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where systems and services are sold, price lists, its go-to-market strategy, historical sales and contract prices. The determination of SSP is made through consultation with and approval by the Company’s management, taking into consideration the go-to-market strategy. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to SSP. In certain cases, the Company is able to establish SSP based on observable prices of products or services sold separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when it has observable prices. If SSP is not directly observable, for example when pricing is highly variable, the Company uses a range of SSP. The Company determines the SSP range using information that may include market conditions or other observable inputs. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size and geography. Practical Expedients We apply a practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. |
Warranty | Warranty Factory Protection Plan Service Cost Reimbursement Each FPP is a 30-day 5 10 15 The labor reimbursement is separate and distinct from the parts offering; therefore the Company allocates a portion of the transaction price to the labor reimbursement based on SSP. The Company applies judgment in determining the SSP as the labor reimbursement is not sold separately. The Company will recognize a liability at the inception of the executed FPP agreement for the premium received in advance for the Labor offering. Income will be recognized on a net, straight-line basis with labor reimbursement costs recognized when incurred. |
Research and Development ("R&D") | Research and Development (“R&D”) |
Income Taxes | Income Taxes ASC Topic 740-10, Income Taxes |
Contingencies | Contingencies |
Risk Concentrations | Risk Concentrations Sales to E-Finity Distributed Generation, LLC (“E-Finity”) and RSP Systems accounted for 12% and 11%, respectively, of the Company’s revenue for Fiscal 2023. Sales to E-Finity accounted for 18% of the Company’s revenue for Fiscal 2022. Additionally, E-Finity accounted for 12% of net accounts receivable as of March 31, 2023, and E-Finity and Radian Oil & Gas Services Co. accounted for 28% and 14% of net accounts receivable as of March 31, 2022, respectively. Certain components of the Company’s products are available from a limited number of suppliers. An interruption in supply could cause a delay in manufacturing, which would affect operating results adversely. |
Estimates and Assumptions | Estimates and Assumptions |
Net Loss Per Common Share | Net Loss Per Common Share |
Stock-Based Compensation | Stock-Based Compensation |
Leases | Leases In calculating the right of use asset and lease liability, the Company elects to combine lease and non-lease components. The Company excludes short-term leases having initial terms of twelve months or less from the new guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term. |
Going Concern | Going Concern We reduced our outstanding debt via proceedings in U.S. Chapter 11 Bankruptcy Court. On September 28, 2023, the Company filed for a prepackaged financial restructuring with its Senior Lender, Goldman Sachs under the U.S. Chapter 11 Bankruptcy laws, as further discussed in Note 17–Subsequent Events in the Notes to Consolidated Financial Statements. The Company emerged from Bankruptcy on December 7, 2023, and affected the financial and organizational restructuring. Given our current cash position, lack of liquidity, limits to accessing capital and debt funding options, the economic and market risk of the forecast, there is substantial doubt regarding the Company’s ability to continue as a going concern and our ability to meet our financial obligations as they become due over the next twelve months from the date of issuance of our Fiscal 2023 financial statements. |
Segment Reporting | Segment Reporting Year Ended March 31, 2023 2022 United States $ 45,071 $ 30,269 Mexico 2,990 3,706 All other North America 1,412 600 Total North America 49,473 34,575 Russia 3,045 3,381 All other Europe 11,553 10,872 Total Europe 14,598 14,253 Asia 3,251 5,978 Australia 2,840 4,195 All other 3,720 4,963 Total Revenue $ 73,882 $ 63,964 The following table summarizes the Company’s revenue by product (in thousands): Year Ended March 31, 2023 2022 C30 $ 383 $ 1,101 C65 12,021 8,763 C200 4,035 3,213 C400 321 1,555 C600 4,361 5,344 C800 — 4,935 C1000 12,075 6,456 Microturbine Products $ 33,196 $ 31,367 Accessories 1,837 1,353 Total Product and Accessories 35,033 32,720 Parts and Service 30,684 28,475 Rentals 8,165 2,769 Total Revenue $ 73,882 $ 63,964 Substantially all of the Company’s operating assets are in the United States. |
Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this ASU provide guidance for estimating credit losses on certain types of financial instruments, including trade receivables, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable forecasts. With certain exceptions, the transition to the new guidance will be through a cumulative effect adjustment to opening accumulated deficit as of the beginning of the first reporting period in which the guidance is adopted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) (“ASU 2019-10”), which defers the adoption of ASU 2016-13 for Smaller Reporting Companies (“SRCs”) as defined by the SEC for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. On April 1, 2023, the Company adopted Financial Instruments—Credit Losses (Topic 326). The standard will require entities to record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. The adoption did not have a material impact on its financial statements. Management considers the applicability and impact of all Accounting Standards Updates (“ASUs”). The ASUs not listed were assessed and determined by management to be either not applicable or are expected to have minimal impact on our consolidated financial position and/or results of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Schedule of changes in the accounts receivable allowances | Balance, March 31, 2021 $ 197 Additions charged to expenses 391 Bad debt write-off (2) Balance, March 31, 2022 $ 586 Additions charged to expenses 4,277 Bad debt write-off (50) Balance, March 31, 2023 $ 4,813 |
Schedule of geographic revenue information based on the primary operating location of the Company's customers | Year Ended March 31, 2023 2022 United States $ 45,071 $ 30,269 Mexico 2,990 3,706 All other North America 1,412 600 Total North America 49,473 34,575 Russia 3,045 3,381 All other Europe 11,553 10,872 Total Europe 14,598 14,253 Asia 3,251 5,978 Australia 2,840 4,195 All other 3,720 4,963 Total Revenue $ 73,882 $ 63,964 |
Summary of Company's revenue by product | The following table summarizes the Company’s revenue by product (in thousands): Year Ended March 31, 2023 2022 C30 $ 383 $ 1,101 C65 12,021 8,763 C200 4,035 3,213 C400 321 1,555 C600 4,361 5,344 C800 — 4,935 C1000 12,075 6,456 Microturbine Products $ 33,196 $ 31,367 Accessories 1,837 1,353 Total Product and Accessories 35,033 32,720 Parts and Service 30,684 28,475 Rentals 8,165 2,769 Total Revenue $ 73,882 $ 63,964 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Inventories | |
Summary of inventory | Inventories are valued at the lower of cost (determined on a FIFO basis) or net realizable value and consisted of the following (in thousands): March 31, March 31, 2023 2022 Raw materials $ 29,222 $ 20,071 Finished goods 13,695 13,637 Total 42,917 33,708 Less: inventory reserve (2,477) (1,861) Less: non-current portion (3,112) (1,680) Total inventory, net-current portion $ 37,328 $ 30,167 |
Schedule of expected usage for non-current inventory | The Company expects to use the non-current portion of the inventories on hand as of March 31, 2023 over the periods presented in the following table (in thousands): Non-current Inventory Balance Expected Expected Period of Use to be Used 13 to 24 months $ 1,469 25 to 36 months 1,643 Total $ 3,112 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment | |
Schedule of property, plant and equipment | Property, plant, equipment and rental assets consisted of the following (in thousands): March 31, March 31, 2023 2022 Machinery, equipment, automobiles and furniture $ 14,760 $ 15,945 Leasehold improvements 8,868 8,848 Molds and tooling 3,516 3,469 Rental assets 26,868 16,751 54,012 45,013 Less: accumulated depreciation (29,737) (27,221) Total property, plant, equipment and rental assets, net $ 24,275 $ 17,792 |
Accrued Warranty Reserve (Table
Accrued Warranty Reserve (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accrued Warranty Reserve | |
Schedule of changes in accrued warranty reserve | Changes in the accrued warranty reserve consisted of the following (in thousands): March 31, March 31, 2023 2022 Balance, beginning of the period $ 1,483 $ 5,850 Standard warranty provision 592 646 Deductions for warranty claims (499) (5,013) Balance, end of the period $ 1,576 $ 1,483 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Revenue Recognition | |
Schedule of disaggregated revenue by business group | The following table presents disaggregated revenue by business group (in thousands): Year Ended March 31, 2023 2022 Microturbine Products $ 33,196 $ 31,367 Accessories 1,837 1,353 Total Product and Accessories 35,033 32,720 Parts and Service (1) 30,684 28,475 Rentals 8,165 2,769 Total Revenue $ 73,882 $ 63,964 |
Schedule of changes in deferred revenue | Changes in deferred revenue are as follows (in thousands): March 31, March 31, 2023 2022 Opening balance, beginning of the period $ 15,816 $ 12,587 Closing balance, end of the period $ 24,189 $ 15,816 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 13,026 $ 11,303 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Income Taxes | |
Schedule of loss before provision for income taxes | Loss before provision for income taxes consisted of the following for the years ended March 31, 2023 and 2022 (in thousands): Year Ended March 31, 2023 2022 United States $ (24,560) $ (22,391) Foreign 45 40 Loss before provision for income taxes $ (24,515) $ (22,351) |
Schedule of reconciliation of income tax (benefit) expense to the federal statutory rate | A reconciliation of income tax (benefit) expense to the federal statutory rate follows (in thousands): Year Ended March 31, 2023 2022 Federal income tax benefit at the statutory rate $ (5,148) $ (4,694) State taxes, net of federal effect (1,837) (714) Foreign taxes — 5 Expiring NOLs and tax credits 10,156 11,028 Impact of state rate change 107 (142) Valuation allowance (3,532) (5,552) Shortfall in tax benefit—stock compensation 262 75 True-up (5) — Other 4 13 Income tax expense $ 7 $ 19 |
Schedule of the Company's deferred tax assets and liabilities | Year Ended March 31, 2023 2022 Federal income tax benefit at the statutory rate $ (5,148) $ (4,694) State taxes, net of federal effect (1,837) (714) Foreign taxes — 5 Expiring NOLs and tax credits 10,156 11,028 Impact of state rate change 107 (142) Valuation allowance (3,532) (5,552) Shortfall in tax benefit—stock compensation 262 75 True-up (5) — Other 4 13 Income tax expense $ 7 $ 19 The Company’s deferred tax assets and liabilities consisted of the following at March 31, 2023 and 2022 (in thousands): Year Ended March 31, 2023 2022 Deferred tax assets: Inventories $ 3,456 $ 2,194 Warranty reserve 3,140 2,513 Bad debt reserve 1,217 199 Deferred revenue 2,385 2,284 Net operating loss (“NOL”) carryforwards 126,180 130,928 Tax credit carryforwards 12,686 13,370 Depreciation, amortization and impairment loss 496 — Lease liability 2,113 1,464 Interest limitation 6,330 4,655 Other 1,279 1,095 Deferred tax assets 159,282 158,702 Valuation allowance for deferred tax assets (153,171) (156,702) Deferred tax assets, net of valuation allowance 6,111 2,000 Deferred tax liabilities: Depreciation, amortization and impairment loss (3,998) (594) Right of use assets (2,113) (1,406) Net deferred tax assets $ — $ — |
Schedule of the Company's NOL and tax credit carry forwards for federal and state income tax purposes | The Company’s NOL and tax credit carryforwards for federal and state income tax purposes at March 31, 2023 were as follows (in thousands): Expiration Amount Period Federal NOL generated before April 1, 2018 $ 449,151 2023 - 2038 Federal NOL generated after March 31, 2018 $ 89,643 Indefinite State NOL $ 185,650 2025 - 2039 Federal tax credit carryforwards $ 5,029 2023 - 2038 State tax credit carryforwards $ 9,692 Indefinite |
Schedule of reconciliation of the beginning and ending amount of total gross unrecognized tax benefits | A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits is as follows (in thousands): Balance at March 31, 2021 $ 1,946 Gross increase related to prior year tax positions — Gross increase related to current year tax positions — Lapse of statute of limitations (48) Balance at March 31, 2022 $ 1,898 Gross increase related to prior year tax positions — Gross increase related to current year tax positions — Lapse of statute of limitations (42) Balance at March 31, 2023 $ 1,856 |
Stockholders' Equity (Deficie_2
Stockholders' Equity (Deficiency) (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity (Deficiency) | |
Summary of stock-based compensation expense by statement of operations line item | The following table summarizes, by consolidated statements of operations line item, stock-based compensation expense (in thousands): Year Ended March 31, 2023 2022 Cost of goods sold $ 37 $ 109 Research and development 97 79 Selling, general and administrative 729 1,057 Stock-based compensation expense $ 863 $ 1,245 |
Summary of stock option activity | Weighted Average Grant Date Fair Restricted Stock Units and Performance Restricted Stock Units Shares Value Non-vested restricted stock units outstanding at March 31, 2022 591,805 $ 5.66 Granted 646,814 2.04 Vested and issued (179,471) 5.76 Forfeited (216,517) 4.54 Non-vested restricted stock units outstanding at March 31, 2023 842,631 3.13 Restricted stock units expected to vest beyond March 31, 2023 842,631 $ 3.13 |
Summary of restricted stock activity | The following table provides additional information on restricted stock units and performance restricted stock units: Year Ended March 31, 2023 2022 Restricted stock compensation expense (in thousands) $ 863 $ 1,245 Aggregate fair value of restricted stock units vested and issued (in thousands) $ 477 $ 936 Weighted average grant date fair value of restricted stock units granted during the period $ 2.29 $ 5.40 |
Schedule of fair value assumptions - warrants | Risk-free interest rate 0.2% Contractual term 3 years Expected volatility 81.0% |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Fair Value Measurements | |
Schedule of carrying values and estimated fair values of these obligations | The carrying values and estimated fair values of these obligations are as follows (in thousands): As of As of March 31, 2023 March 31, 2022 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Term note payable $ 50,983 $ 51,000 $ 50,949 $ 51,000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Leases | |
Schedule of Company's minimum rental revenue to be received under operating leases | At March 31, 2023, the Company’s minimum rental revenue to be received under operating leases were as follows (in thousands): Operating Year Ending March 31, Leases 2024 $ 1,756 2025 1,756 2026 466 2027 — 2028 — Thereafter — Total minimum rental revenue $ 3,978 |
Schedule of operating leases | Year Ended March 31, 2023 2022 Finance lease costs (1) $ 697 $ 80 Operating lease costs 2,291 1,157 Total lease costs $ 2,988 $ 1,237 (1) Interest expense is included in finance lease costs. |
Schedule of supplemental information related to the leases | Supplemental balance sheet information related to the leases was as follows (in thousands): March 31, 2023 March 31, 2022 Finance lease right-of-use assets $ 4,529 $ 246 Operating lease right-of-use assets 8,808 5,959 Total right-of-use assets $ 13,337 $ 6,205 Finance lease liability, current $ 773 $ 89 Operating lease liability, current 2,492 586 Finance lease liability, non-current 2,903 190 Operating lease liability, non-current 6,588 5,619 Total lease liabilities $ 12,756 $ 6,484 Finance leases: Weighted average remaining lease life 2.27 years 3.49 years Weighted average discount rate 13.00% 5.00% Operating leases: Weighted average remaining lease life 4.86 years 8.35 years Weighted average discount rate 12.00% 12.00% Supplemental cash flow information related to the leases was as follows (in thousands): Year Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Financing cash flows from finance leases $ 803 $ 92 Operating cash flows from finance leases $ 45 $ 17 Operating cash flows from operating leases $ 2,258 $ 1,106 Right-of-use assets obtained in exchange for lease obligations Finance leases $ 3,991 $ — Operating leases $ 4,179 $ 1,877 |
Schedule of Company's minimum commitments under non-cancelable operating and finance leases | At March 31, 2023, the Company’s minimum commitments under non-cancelable operating and finance leases were as follows (in thousands): Finance Operating Year Ending March 31, Leases Leases 2024 $ 1,017 $ 3,477 2025 1,017 3,424 2026 1,963 2,412 2027 — 255 2028 — 256 Thereafter — 2,138 Total lease payments $ 3,997 $ 11,962 Less: imputed interest (321) (2,882) Present value of lease liabilities $ 3,676 $ 9,080 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Other Assets | |
Schedule of current and long-term portions of prepaid royalties | The current and long-term portions of prepaid royalties, included in other current assets and other assets, respectively, consisted of (in thousands): March 31, March 31, 2023 2022 Other current assets $ 124 $ 124 Other assets 2,381 2,506 Royalty-related assets $ 2,505 $ 2,630 |
Restatement of Consolidated F_2
Restatement of Consolidated Financial Statements (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Restatement of Consolidated Financial Statements | |
Schedule of quarterly financial information | As of June 30, 2022 FPP Note (in thousands) As Reported Reclassifications Bill and Hold Contracts Classification As Restated Assets Current Assets: Cash and cash equivalents $ 16,914 $ — $ — $ — $ — $ 16,914 Accounts receivable, net of allowances 24,168 — (9,871) (18) — 14,279 Inventories, net 18,608 — 9,255 — — 27,863 Prepaid expenses and other current assets 6,468 — — — — 6,468 Total current assets 66,158 — (616) (18) — 65,524 Property, plant, equipment and rental assets, net 21,694 (2,560) 1,484 — — 20,618 Finance lease right-of-use assets — 2,560 (1,886) — — 674 Operating lease right-of-use assets — 6,321 — — — 6,321 Non-current portion of accounts receivable 1,056 — (1,056) — — — Non-current portion of inventories 2,013 — — — — 2,013 Other assets 8,933 (6,321) — — — 2,612 Total assets $ 99,854 $ — $ (2,074) $ (18) $ — $ 97,762 Liabilities and Stockholders’ (Deficiency) Equity Current Liabilities: Accounts payable and accrued expenses $ 22,238 $ — $ — $ — $ — $ 22,238 Accrued salaries and wages 1,360 — — — — 1,360 Accrued warranty reserve 1,527 — — — — 1,527 Deferred revenue 9,694 — 3,988 — — 13,682 Current portion of notes payable and lease obligations 1,930 (1,409) — — — 521 Finance lease liability, current — 645 (454) — — 191 Operating lease liability, current — 764 — — — 764 Factory protection plan liability — — — 10,727 — 10,727 Term note payable — — — — 50,957 50,957 Total current liabilities 36,749 — 3,534 10,727 50,957 101,967 Deferred revenue, non-current 934 — — — — 934 Long-term portion of notes payable and lease obligations 7,627 (7,627) — — — — Finance lease liability, non-current — 1,853 (1,376) — — 477 Operating lease liability, non-current — 5,774 — — — 5,774 Term note payable, non-current 50,957 — — — (50,957) — Other long-term liabilities — — 265 — — 265 Total liabilities 96,267 — 2,423 10,727 — 109,417 Stockholders’ (Deficiency) Equity: Common stock 15 — — — — 15 Additional paid-in capital 947,237 — — — — 947,237 Accumulated deficit (941,541) — (4,497) (10,745) — (956,783) Treasury stock (2,124) — — — — (2,124) Total stockholders’ (deficiency) equity 3,587 — (4,497) (10,745) — (11,655) Total liabilities and stockholders' (deficiency) equity $ 99,854 $ — $ (2,074) $ (18) $ — $ 97,762 As of September 30, 2022 FPP Note (in thousands) As Reported Reclassifications Bill and Hold Contracts Classification As Restated Assets Current Assets: Cash and cash equivalents $ 23,780 $ — $ — $ — $ — $ 23,780 Accounts receivable, net of allowances 18,189 — (4,540) (74) — 13,575 Inventories, net 21,801 — 10,293 — — 32,094 Prepaid expenses and other current assets 7,039 — — — — 7,039 Total current assets 70,809 — 5,753 (74) — 76,488 Property, plant, equipment and rental assets, net 25,375 (6,888) 1,607 — — 20,094 Finance lease right-of-use assets — 6,888 (2,080) — — 4,808 Operating lease right-of-use assets — 9,075 — — — 9,075 Non-current portion of accounts receivable 1,109 — (1,109) — — — Non-current portion of inventories 2,277 — — — — 2,277 Other assets 11,735 (9,075) — — — 2,660 Total assets $ 111,305 $ — $ 4,171 $ (74) $ — $ 115,402 Liabilities and Stockholders’ (Deficiency) Equity Current Liabilities: Accounts payable and accrued expenses $ 24,344 $ — $ — $ — $ — $ 24,344 Accrued salaries and wages 1,123 — — — — 1,123 Accrued warranty reserve 1,662 — — — — 1,662 Deferred revenue 10,686 — 9,581 — — 20,267 Current portion of notes payable and lease obligations 3,215 (2,955) — — — 260 Finance lease liability, current — 1,262 (496) — — 766 Operating lease liability, current — 1,693 — — — 1,693 Factory protection plan liability — — — 10,192 — 10,192 Term note payable — — — — 50,966 50,966 Total current liabilities 41,030 — 9,085 10,192 50,966 111,273 Deferred revenue, non-current 915 — — — — 915 Long-term portion of notes payable and lease obligations 12,321 (12,321) — — — — Finance lease liability, non-current — 4,749 (1,468) — — 3,281 Operating lease liability, non-current — 7,572 — — — 7,572 Term note payable, non-current 50,966 — — — (50,966) — Other long-term liabilities — — 265 — — 265 Total liabilities 105,232 — 7,882 10,192 — 123,306 Stockholders’ (Deficiency) Equity: Common stock 18 — — — — 18 Additional paid-in capital 954,750 — — — — 954,750 Accumulated deficit (946,556) — (3,711) (10,266) — (960,533) Treasury stock (2,139) — — — — (2,139) Total stockholders’ (deficiency) equity 6,073 — (3,711) (10,266) — (7,904) Total liabilities and stockholders' (deficiency) equity $ 111,305 $ — $ 4,171 $ (74) $ — $ 115,402 As of December 31, 2022 FPP (in thousands) As Reported Reclassifications Bill and Hold Contracts As Restated Assets Current Assets: Cash and cash equivalents $ 16,618 $ — $ — $ — $ 16,618 Accounts receivable, net of allowances 15,119 — (3,579) (129) 11,411 Inventories, net 25,602 — 8,267 — 33,869 Prepaid expenses and other current assets 7,125 — — — 7,125 Total current assets 64,464 — 4,688 (129) 69,023 Property, plant, equipment and rental assets, net 25,906 (6,694) 1,565 — 20,777 Finance lease right-of-use assets — 6,694 (2,025) — 4,669 Operating lease right-of-use assets — 8,702 — — 8,702 Non-current portion of accounts receivable 107 — (107) — — Non-current portion of inventories 3,055 — — — 3,055 Other assets 11,334 (8,702) — — 2,632 Total assets $ 104,866 $ — $ 4,121 $ (129) $ 108,858 Liabilities and Stockholders’ (Deficiency) Equity Current Liabilities: Accounts payable and accrued expenses $ 26,087 $ — $ (284) $ — $ 25,803 Accrued salaries and wages 1,421 — — — 1,421 Accrued warranty reserve 1,540 — — — 1,540 Deferred revenue 9,699 — 7,772 — 17,471 Current portion of notes payable and lease obligations 2,201 (2,201) — — — Finance lease liability, current — 908 (118) — 790 Operating lease liability, current — 1,293 — — 1,293 Factory protection plan liability — — — 11,848 11,848 Term note payable 50,974 — — — 50,974 Total current liabilities 91,922 — 7,370 11,848 111,140 Deferred revenue, non-current 817 — — — 817 Long-term portion of notes payable and lease obligations 11,036 (11,036) — — — Finance lease liability, non-current — 3,464 (392) — 3,072 Operating lease liability, non-current — 7,572 — — 7,572 Term note payable, non-current — Other long-term liabilities — — 265 — 265 Total liabilities 103,775 — 7,243 11,848 122,866 Stockholders’ (Deficiency) Equity: Common stock 18 — — — 18 Additional paid-in capital 954,982 — — — 954,982 Accumulated deficit (951,770) — (3,122) (11,977) (966,869) Treasury stock (2,139) — — — (2,139) Total stockholders’ (deficiency) equity 1,091 — (3,122) (11,977) (14,008) Total liabilities and stockholders' (deficiency) equity $ 104,866 $ — $ 4,121 $ (129) $ 108,858 Three Months Ended June 30, 2022 FPP (in thousands) As Reported Bill and Hold Contracts As Restated Revenue, net: Product and accessories $ 9,167 $ 367 $ — $ 9,534 Parts, service and rentals 9,485 (70) (184) 9,231 Total revenue, net 18,652 297 (184) 18,765 Cost of goods sold: Product and accessories 8,891 878 — 9,769 Parts, service and rentals 5,055 36 1,391 6,482 Total cost of goods sold 13,946 914 1,391 16,251 Gross profit 4,706 (617) (1,575) 2,514 Operating expenses: Research and development 490 — — 490 Selling, general and administrative 4,919 — — 4,919 Total operating expenses 5,409 — — 5,409 Loss from operations (703) (617) (1,575) (2,895) Other income (expense) 2 — — 2 Interest income 6 — — 6 Interest expense (1,362) 51 — (1,311) Gain (loss) on debt extinguishment — — — — Loss before provision for income taxes (2,057) (566) (1,575) (4,198) Provision for income taxes 2 — — 2 Net loss (2,059) (566) (1,575) (4,200) Less: Deemed dividend on purchase warrant for common shares — — — — Net loss attributable to common stockholders $ (2,059) $ (566) $ (1,575) $ (4,200) Net loss per share—basic and diluted $ (0.13) $ (0.04) $ (0.10) $ (0.27) Weighted average shares outstanding 15,318 15,318 15,318 15,318 Three Months Ended September 30, 2022 FPP (in thousands) As Reported Bill and Hold Contracts As Restated Revenue, net: Product and accessories $ 10,603 $ (1,009) $ — $ 9,594 Parts, service and rentals 10,172 529 (171) 10,530 Total revenue, net 20,775 (480) (171) 20,124 Cost of goods sold: Product and accessories 12,496 (1,452) — 11,044 Parts, service and rentals 6,103 237 (650) 5,690 Total cost of goods sold 18,599 (1,215) (650) 16,734 Gross profit 2,176 735 479 3,390 Operating expenses: Research and development 603 — — 603 Selling, general and administrative 5,107 — — 5,107 Total operating expenses 5,710 — — 5,710 Loss from operations (3,534) 735 479 (2,320) Other income (expense) (50) — — (50) Interest income 26 — — 26 Interest expense (1,356) 51 — (1,305) Gain (loss) on debt extinguishment — — — — Loss before provision for income taxes (4,914) 786 479 (3,649) Provision for income taxes 4 — — 4 Net loss (4,918) 786 479 (3,653) Less: Deemed dividend on purchase warrant for common shares 97 — — 97 Net loss attributable to common stockholders $ (5,015) $ 786 $ 479 $ (3,750) Net loss per share—basic and diluted $ (0.30) $ 0.05 $ 0.03 $ (0.22) Weighted average shares outstanding 16,785 16,785 16,785 16,785 Six Months Ended September 30, 2022 FPP (in thousands) As Reported Bill and Hold Contracts As Restated Revenue, net: Product and accessories $ 19,770 $ (642) $ — $ 19,128 Parts, service and rentals 19,657 459 (355) 19,761 Total revenue, net 39,427 (183) (355) 38,889 Cost of goods sold: Product and accessories 21,387 (574) — 20,813 Parts, service and rentals 11,158 273 741 12,172 Total cost of goods sold 32,545 (301) 741 32,985 Gross profit 6,882 118 (1,096) 5,904 Operating expenses: Research and development 1,093 — — 1,093 Selling, general and administrative 10,026 — — 10,026 Total operating expenses 11,119 — — 11,119 Loss from operations (4,237) 118 (1,096) (5,215) Other income (expense) (48) — — (48) Interest income 32 — — 32 Interest expense (2,718) 102 — (2,616) Gain (loss) on debt extinguishment — — — — Loss before provision for income taxes (6,971) 220 (1,096) (7,847) Provision for income taxes 6 — — 6 Net loss (6,977) 220 (1,096) (7,853) Less: Deemed dividend on purchase warrant for common shares 97 — — 97 Net loss attributable to common stockholders $ (7,074) $ 220 $ (1,096) $ (7,950) Net loss per share—basic and diluted $ (0.44) $ 0.01 $ (0.07) $ (0.50) Weighted average shares outstanding 16,056 16,056 16,056 16,056 Three Months Ended December 31, 2022 FPP (in thousands) As Reported Bill and Hold Contracts As Restated Revenue, net: Product and accessories $ 10,003 $ 1,424 $ — $ 11,427 Parts, service and rentals 9,603 172 (192) 9,583 Total revenue, net 19,606 1,596 (192) 21,010 Cost of goods sold: Product and accessories 11,630 837 — 12,467 Parts, service and rentals 5,307 17 1,519 6,843 Total cost of goods sold 16,937 854 1,519 19,310 Gross profit 2,669 742 (1,711) 1,700 Operating expenses: Research and development 633 — — 633 Selling, general and administrative 5,397 200 — 5,597 Total operating expenses 6,030 200 — 6,230 Loss from operations (3,361) 542 (1,711) (4,530) Other income (expense) 5 — — 5 Interest income 42 — — 42 Interest expense (1,900) 47 — (1,853) Gain (loss) on debt extinguishment — — — — Loss before provision for income taxes (5,214) 589 (1,711) (6,336) Provision for income taxes — — — — Net loss (5,214) 589 (1,711) (6,336) Less: Deemed dividend on purchase warrant for common shares — — — — Net loss attributable to common stockholders $ (5,214) $ 589 $ (1,711) $ (6,336) Net loss per share—basic and diluted $ (0.28) $ 0.03 $ (0.09) $ (0.35) Weighted average shares outstanding 18,351 18,351 18,351 18,351 Nine Months Ended December 31, 2022 FPP (in thousands) As Reported Bill and Hold Contracts As Restated Revenue, net: Product and accessories $ 29,773 $ 782 $ — $ 30,555 Parts, service and rentals 29,260 631 (547) 29,344 Total revenue, net 59,033 1,413 (547) 59,899 Cost of goods sold: Product and accessories 33,017 263 — 33,280 Parts, service and rentals 16,465 290 2,260 19,015 Total cost of goods sold 49,482 553 2,260 52,295 Gross profit 9,551 860 (2,807) 7,604 Operating expenses: Research and development 1,726 — — 1,726 Selling, general and administrative 15,423 200 — 15,623 Total operating expenses 17,149 200 — 17,349 Loss from operations (7,598) 660 (2,807) (9,745) Other income (expense) (43) — — (43) Interest income 74 — — 74 Interest expense (4,618) 149 — (4,469) Gain (loss) on debt extinguishment — — — — Loss before provision for income taxes (12,185) 809 (2,807) (14,183) Provision for income taxes 6 — — 6 Net loss (12,191) 809 (2,807) (14,189) Less: Deemed dividend on purchase warrant for common shares 97 — — 97 Net loss attributable to common stockholders $ (12,288) $ 809 $ (2,807) $ (14,286) Net loss per share—basic and diluted $ (0.73) $ 0.05 $ (0.17) $ (0.85) Weighted average shares outstanding 16,824 16,824 16,824 16,824 Three Months Ended June 30, 2022 FPP (in thousands) As Reported Reclassifications Bill and Hold Contracts As Restated Cash Flows from Operating Activities: Net loss $ (2,059) $ — $ (566) $ (1,575) $ (4,200) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 661 — (10) — 651 Amortization of financing costs and discounts 43 — — — 43 Amortization of right-of-use assets 151 — — — 151 Inventory provision 270 — — — 270 Provision for warranty expenses 174 — — — 174 Stock-based compensation 232 — — — 232 Changes in operating assets and liabilities: Accounts receivable 653 — 926 18 1,597 Inventories (746) — 924 — 178 Prepaid expenses, other current assets and other assets (253) — — — (253) Accounts payable and accrued expenses (3,112) 179 265 — (2,668) Operating lease liability — (179) — — (179) Accrued salaries and wages and long-term liabilities 212 — — — 212 Accrued warranty reserve (130) — — — (130) Deferred revenue 462 — (1,662) — (1,200) Factory protection plan liability — — — 1,557 1,557 Net cash used in operating activities (3,442) — (123) — (3,565) Cash Flows from Investing Activities: Expenditures for property, plant, equipment and rental assets (1,887) — — — (1,887) Net cash used in investing activities (1,887) — — — (1,887) Cash Flows from Financing Activities: Repayment of notes payable and lease obligations (316) — 123 — (193) Cash used in employee stock-based transactions (36) — — — (36) Net proceeds from issuance of common stock and warrants 36 — — — 36 Net cash used in financing activities (316) — 123 — (193) Net increase (decrease) increase in Cash and Cash Equivalents (5,645) — — — (5,645) Cash and Cash Equivalents, Beginning of Period 22,559 — — — 22,559 Cash and Cash Equivalents, End of Period $ 16,914 $ — $ — $ — $ 16,914 Six Months Ended September 30, 2022 FPP (in thousands) As Reported Reclassifications Bill and Hold Contracts As Restated Cash Flows from Operating Activities: Net loss $ (6,977) $ — $ 220 $ (1,096) $ (7,853) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,493 — (23) — 1,470 Amortization of financing costs and discounts 51 — — — 51 Amortization of right-of-use assets 475 — — — 475 Bad debt expense (recovery) 75 — — — 75 Inventory provision 420 — — — 420 Provision for warranty expenses 364 — — — 364 (Gain) loss on disposal of equipment 279 — — — 279 Stock-based compensation 386 — — — 386 Changes in operating assets and liabilities: Accounts receivable 6,504 — (4,502) 74 2,076 Inventories (4,353) — (278) — (4,631) Prepaid expenses, other current assets and other assets (874) — — — (874) Accounts payable and accrued expenses (1,667) 531 265 — (871) Operating lease liability — (531) — — (531) Accrued salaries and wages and long-term liabilities (23) — — — (23) Accrued warranty reserve (185) — — — (185) Deferred revenue 1,435 — 3,931 — 5,366 Factory protection plan liability — — — 1,022 1,022 Net cash used in operating activities (2,597) — (387) — (2,984) Cash Flows from Investing Activities: Expenditures for property, plant, equipment and rental assets (2,564) — — — (2,564) Net cash used in investing activities (2,564) — — — (2,564) Cash Flows from Financing Activities: Repayment of notes payable and lease obligations (868) — 387 — (481) Cash used in employee stock-based transactions (52) — — — (52) Net proceeds from issuance of common stock and warrants 7,302 — — — 7,302 Net cash provided by financing activities 6,382 — 387 — 6,769 Net increase (decrease) increase in Cash and Cash Equivalents 1,221 — — — 1,221 Cash and Cash Equivalents, Beginning of Period 22,559 — — — 22,559 Cash and Cash Equivalents, End of Period $ 23,780 $ — $ — $ — $ 23,780 Nine Months Ended December 31, 2022 FPP (in thousands) As Reported Reclassifications Bill and Hold Contracts As Restated Cash Flows from Operating Activities: Net loss $ (12,191) $ — $ 809 $ (2,807) $ (14,189) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 2,345 — (36) — 2,309 Amortization of financing costs and discounts 60 — — — 60 Amortization of right-of-use assets 848 — — — 848 Bad debt expense (recovery) 237 — 200 — 437 Inventory provision 771 — — — 771 Provision for warranty expenses 369 — — — 369 Provision for sales returns, net 81 — (81) — — Stock-based compensation 617 — — — 617 Changes in operating assets and liabilities: Accounts receivable 9,077 — (5,481) 129 3,725 Inventories (9,080) — 1,545 — (7,535) Prepaid expenses, other current assets and other assets (933) — — — (933) Accounts payable and accrued expenses (276) 931 265 — 920 Operating lease liability — (931) — — (931) Accrued salaries and wages and long-term liabilities 274 — — — 274 Accrued warranty reserve (312) — — — (312) Deferred revenue 350 — 2,122 — 2,472 Factory protection plan liability — — — 2,678 2,678 Net cash used in operating activities (7,763) — (657) — (8,420) Cash Flows from Investing Activities: Expenditures for property, plant, equipment and rental assets (3,999) — — — (3,999) Net cash used in investing activities (3,999) — — — (3,999) Cash Flows from Financing Activities: Repayment of notes payable and lease obligations (1,429) — 657 — (772) Cash used in employee stock-based transactions (52) — — — (52) Net proceeds from issuance of common stock and warrants 7,302 — — — 7,302 Net cash provided by financing activities 5,821 — 657 — 6,478 Net increase (decrease) increase in Cash and Cash Equivalents (5,941) — — — (5,941) Cash and Cash Equivalents, Beginning of Period 22,559 — — — 22,559 Cash and Cash Equivalents, End of Period $ 16,618 $ — $ — $ — $ 16,618 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Changes in the accounts receivable allowances | ||||
Accounts receivable allowance, beginning balance | $ 586 | $ 586 | $ 586 | $ 197 |
Additions charged to expenses | $ 75 | $ 437 | 4,277 | 391 |
Bad debt write-off | (50) | (2) | ||
Accounts receivable allowance, ending balance | $ 4,813 | $ 586 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Depreciation and Amortization (Details) | Mar. 31, 2023 |
Minimum | |
Depreciation and Amortization | |
Estimated useful lives | 2 years |
Maximum | |
Depreciation and Amortization | |
Estimated useful lives | 10 years |
Leasehold improvements | |
Depreciation and Amortization | |
Property, Plant, and Equipment, Useful Life, Term, Description | us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Long-Lived Assets (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2023 USD ($) | |
Long-Lived Assets | |
Finite-lived intangible impairment | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Revenue - General Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Recent Accounting Pronouncements | |||||
Factory protection plan, contract term | 30 days | ||||
Factory protection plan liability | $ 10,844 | $ 11,848 | $ 10,192 | $ 10,727 | $ 9,170 |
Period One Member | Previously Reported | |||||
Recent Accounting Pronouncements | |||||
Factory protection plan, contract term | 5 years | ||||
Period Two Member | Previously Reported | |||||
Recent Accounting Pronouncements | |||||
Factory protection plan, contract term | 10 years | ||||
Period Three Member | Previously Reported | |||||
Recent Accounting Pronouncements | |||||
Factory protection plan, contract term | 15 years | ||||
Period Four Member | Previously Reported | |||||
Recent Accounting Pronouncements | |||||
Factory protection plan, contract term | 20 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Revenue - Practical Expedients (Details) | 12 Months Ended |
Mar. 31, 2023 | |
Practical Expedients | |
Practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period would have been one year or less | true |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Warranty (Details) | 12 Months Ended |
Mar. 31, 2023 | |
Warranty | |
Warranty period | 24 months |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Research and Development (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Research and Development ("R&D") | ||
Total offsets to R&D expenses | $ 0 | $ 0 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Risk Concentrations (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Risk Concentrations | ||||
Aggregate balances that exceed insurance coverage | $ 12,100 | |||
Bad debt expense | $ 75 | $ 437 | $ 4,277 | $ 391 |
Revenue from Contract with Customer Benchmark | Customer concentrations | RSP Systems | ||||
Risk Concentrations | ||||
Concentration percentage (as a percent) | 11% | |||
Revenue from Contract with Customer Benchmark | Customer concentrations | E-Finity | ||||
Risk Concentrations | ||||
Concentration percentage (as a percent) | 12% | 18% | ||
Net accounts receivable | Credit concentration | E-Finity | ||||
Risk Concentrations | ||||
Concentration percentage (as a percent) | 12% | 14% | ||
Net accounts receivable | Credit concentration | Radian Oil And Gas Services Co | ||||
Risk Concentrations | ||||
Concentration percentage (as a percent) | 28% |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Net Loss Per Common Share (Details) - shares shares in Millions | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive stock options and restricted stock units | ||
Net Loss Per Common Share | ||
Antidilutive securities excluded from diluted net loss per common share computations (in shares) | 0.8 | 0.6 |
Warrants | ||
Net Loss Per Common Share | ||
Antidilutive securities excluded from diluted net loss per common share computations (in shares) | 3.8 | 0.8 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Liquidity and Going Concern - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Summary of Significant Accounting Policies | |||||||
Net loss | $ 6,336 | $ 3,653 | $ 4,200 | $ 7,853 | $ 14,189 | $ 24,522 | $ 22,370 |
Cash used in operating activities | (3,565) | (2,984) | (8,420) | (7,944) | (27,498) | ||
Cash and cash equivalents | $ 16,618 | $ 23,780 | $ 16,914 | $ 23,780 | $ 16,618 | 12,839 | $ 22,559 |
Outstanding debt at fair value | $ 51,000 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Segment Reporting - Geographic Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Geographic revenue information | |||||||
Total Revenue | $ 21,010 | $ 20,124 | $ 18,765 | $ 38,889 | $ 59,899 | $ 73,882 | $ 63,964 |
Total North America | |||||||
Geographic revenue information | |||||||
Total Revenue | 49,473 | 34,575 | |||||
United States | |||||||
Geographic revenue information | |||||||
Total Revenue | 45,071 | 30,269 | |||||
Mexico | |||||||
Geographic revenue information | |||||||
Total Revenue | 2,990 | 3,706 | |||||
All other North America | |||||||
Geographic revenue information | |||||||
Total Revenue | 1,412 | 600 | |||||
Total Europe | |||||||
Geographic revenue information | |||||||
Total Revenue | 14,598 | 14,253 | |||||
Russia | |||||||
Geographic revenue information | |||||||
Total Revenue | 3,045 | 3,381 | |||||
All other Europe | |||||||
Geographic revenue information | |||||||
Total Revenue | 11,553 | 10,872 | |||||
Asia | |||||||
Geographic revenue information | |||||||
Total Revenue | 3,251 | 5,978 | |||||
Australia | |||||||
Geographic revenue information | |||||||
Total Revenue | 2,840 | 4,195 | |||||
All other | |||||||
Geographic revenue information | |||||||
Total Revenue | $ 3,720 | $ 4,963 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Segment Reporting - Revenue by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue by product | |||||||
Total Revenue | $ 21,010 | $ 20,124 | $ 18,765 | $ 38,889 | $ 59,899 | $ 73,882 | $ 63,964 |
Product and accessories | |||||||
Revenue by product | |||||||
Total Revenue | $ 11,427 | $ 9,594 | $ 9,534 | $ 19,128 | $ 30,555 | 35,033 | 32,720 |
Total from Micro turbine Products | |||||||
Revenue by product | |||||||
Total Revenue | 33,196 | 31,367 | |||||
C30 | |||||||
Revenue by product | |||||||
Total Revenue | 383 | 1,101 | |||||
C65 | |||||||
Revenue by product | |||||||
Total Revenue | 12,021 | 8,763 | |||||
C200 | |||||||
Revenue by product | |||||||
Total Revenue | 4,035 | 3,213 | |||||
C400 | |||||||
Revenue by product | |||||||
Total Revenue | 321 | 1,555 | |||||
C600 | |||||||
Revenue by product | |||||||
Total Revenue | 4,361 | 5,344 | |||||
C800 | |||||||
Revenue by product | |||||||
Total Revenue | 4,935 | ||||||
C1000 | |||||||
Revenue by product | |||||||
Total Revenue | 12,075 | 6,456 | |||||
Accessories | |||||||
Revenue by product | |||||||
Total Revenue | 1,837 | 1,353 | |||||
Parts and Service | |||||||
Revenue by product | |||||||
Total Revenue | 30,684 | 28,475 | |||||
Rentals | |||||||
Revenue by product | |||||||
Total Revenue | $ 8,165 | $ 2,769 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Impact of Recently Issued Accounting Standards (Details) - Accounting Standards Update 2016-13 | Apr. 01, 2023 |
Recent Accounting Pronouncements | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 01, 2023 |
Inventories - Tabular Disclosur
Inventories - Tabular Disclosure (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 |
Inventories | |||||
Raw materials | $ 29,222 | $ 20,071 | |||
Finished goods | 13,695 | 13,637 | |||
Total | 42,917 | 33,708 | |||
Less: inventory reserve | (2,477) | (1,861) | |||
Less: non-current portion | (3,112) | $ (3,055) | $ (2,277) | $ (2,013) | (1,680) |
Total inventory, net-current portion | $ 37,328 | $ 33,869 | $ 32,094 | $ 27,863 | $ 30,167 |
Inventories - Noncurrent - Gene
Inventories - Noncurrent - General Information (Details) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Inventories | ||
Weighted average age of noncurrent inventories | 10 months 24 days | 1 year 2 months 12 days |
Inventories - Noncurrent - Tabu
Inventories - Noncurrent - Tabular Disclosure (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 |
Inventories | |||||
Non-current inventory, 13 to 24 Months | $ 1,469 | ||||
Non-current inventory, 25 to 36 Months | 1,643 | ||||
Total | $ 3,112 | $ 3,055 | $ 2,277 | $ 2,013 | $ 1,680 |
Property, Plant and Equipment -
Property, Plant and Equipment - Tabular Disclosure (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 |
Property, Plant and Equipment, Net [Abstract] | |||||
Property, plant, equipment and rental assets, gross | $ 54,012 | $ 45,013 | |||
Less: accumulated depreciation | 29,737 | 27,221 | |||
Total property, plant, equipment and rental assets, net | 24,275 | $ 20,777 | $ 20,094 | $ 20,618 | 17,792 |
Machinery, equipment, automobiles and furniture | |||||
Property, Plant and Equipment, Net [Abstract] | |||||
Property, plant, equipment and rental assets, gross | 14,760 | 15,945 | |||
Leasehold improvements | |||||
Property, Plant and Equipment, Net [Abstract] | |||||
Property, plant, equipment and rental assets, gross | 8,868 | 8,848 | |||
Molds and tooling | |||||
Property, Plant and Equipment, Net [Abstract] | |||||
Property, plant, equipment and rental assets, gross | 3,516 | 3,469 | |||
Rental assets | |||||
Property, Plant and Equipment, Net [Abstract] | |||||
Property, plant, equipment and rental assets, gross | $ 26,868 | $ 16,751 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment | ||
Depreciation expense | $ 3.2 | $ 1.8 |
Intangible Assets - Solar Turbi
Intangible Assets - Solar Turbines (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Intangible Assets | ||
Years subject to payment of per-unit royalty fees | 17 years | |
Royalties earned | $ 23,100 | $ 22,600 |
Unpaid earned royalties | $ 99,500 | $ 76,400 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Intangible Assets | ||
Amortization expense | $ 0 | $ 0.1 |
Accrued Warranty Reserve (Detai
Accrued Warranty Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Accrued Warranty Reserve | |||
Maximum period of product warranties | 24 months | ||
Balance, beginning of the period | $ 1,483 | $ 5,850 | |
Standard warranty provision | 592 | 646 | |
Deductions for warranty claims | (499) | (5,013) | |
Balance, end of the period | $ 5,850 | 1,576 | $ 1,483 |
Accrual related to reliability repair programs | $ 4,900 | $ 0 |
Revenue Recognition - Revenues
Revenue Recognition - Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue, net: | |||||||
Total revenue, net | $ 21,010 | $ 20,124 | $ 18,765 | $ 38,889 | $ 59,899 | $ 73,882 | $ 63,964 |
Product and accessories | |||||||
Revenue, net: | |||||||
Total revenue, net | $ 11,427 | $ 9,594 | $ 9,534 | $ 19,128 | $ 30,555 | 35,033 | 32,720 |
Total from Micro turbine Products | |||||||
Revenue, net: | |||||||
Total revenue, net | 33,196 | 31,367 | |||||
Accessories | |||||||
Revenue, net: | |||||||
Total revenue, net | 1,837 | 1,353 | |||||
Parts and Service | |||||||
Revenue, net: | |||||||
Total revenue, net | 30,684 | 28,475 | |||||
Revenue under non-ASC-606 related to labor reimbursement of FPP contracts | 400 | 300 | |||||
Rentals | |||||||
Revenue, net: | |||||||
Total revenue, net | 8,165 | 2,769 | |||||
Total North America | |||||||
Revenue, net: | |||||||
Total revenue, net | 49,473 | 34,575 | |||||
United States | |||||||
Revenue, net: | |||||||
Total revenue, net | 45,071 | 30,269 | |||||
Mexico | |||||||
Revenue, net: | |||||||
Total revenue, net | 2,990 | 3,706 | |||||
All other North America | |||||||
Revenue, net: | |||||||
Total revenue, net | 1,412 | 600 | |||||
Russia | |||||||
Revenue, net: | |||||||
Total revenue, net | 3,045 | 3,381 | |||||
All other Europe | |||||||
Revenue, net: | |||||||
Total revenue, net | 11,553 | 10,872 | |||||
Total Europe | |||||||
Revenue, net: | |||||||
Total revenue, net | 14,598 | 14,253 | |||||
Asia | |||||||
Revenue, net: | |||||||
Total revenue, net | 3,251 | 5,978 | |||||
Australia | |||||||
Revenue, net: | |||||||
Total revenue, net | 2,840 | 4,195 | |||||
All other | |||||||
Revenue, net: | |||||||
Total revenue, net | $ 3,720 | $ 4,963 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances - General Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Contract with Customer, Liability | ||||||
Contract with customer, liability | $ 24,189 | $ 15,816 | $ 12,587 | |||
Increase (decrease) in contract with customer, liability | $ (1,200) | $ 5,366 | $ 2,472 | 8,373 | $ 3,229 | |
Increase (decrease) in contract with customer, liability, deposits | 8,400 | |||||
Increase (decrease) in contract with customer, liability, Factory Protection Plan contracts | 300 | |||||
Increase (decrease) in contract with customer, liability, Distributor Support System program | $ (300) |
Revenue Recognition - Contrac_2
Revenue Recognition - Contract Balances - Tabular Disclosure (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Contract with Customer, Liability | |||
Contract with customer, liability | $ 24,189 | $ 15,816 | $ 12,587 |
Change in Contract with Customer, Liability | |||
Contract with customer, liability, revenue recognized | $ 13,026 | $ 11,303 |
Revenue Recognition - Contrac_3
Revenue Recognition - Contract Balances - Performance Obligations (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 4.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 4.1 |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 0.8 |
Remaining performance obligation, expected timing of satisfaction, period |
Income Taxes - Loss Before Prov
Income Taxes - Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Loss before provision for income taxes | |||||||
United States | $ (24,560) | $ (22,391) | |||||
Foreign | 45 | 40 | |||||
Loss before provision for income taxes | $ (6,336) | $ (3,649) | $ (4,198) | $ (7,847) | $ (14,183) | $ (24,515) | $ (22,351) |
Income Taxes - Tax Provision (D
Income Taxes - Tax Provision (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Current income tax provision | ||
Provision for current income taxes | $ 7,000 | $ 19,000 |
Current federal income taxes | $ 0 | $ 0 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Reconciliation of income tax (benefit) expense to the federal statutory rate | ||||||
Federal income tax benefit at the statutory rate | $ (5,148) | $ (4,694) | ||||
State taxes, net of federal effect | (1,837) | (714) | ||||
Foreign taxes | 5 | |||||
Expiring NOLs and tax credits | 10,156 | 11,028 | ||||
Impact of state rate change | 107 | (142) | ||||
Valuation allowance | (3,532) | (5,552) | ||||
Shortfall in tax benefit - stock compensation | 262 | 75 | ||||
True-up | (5) | |||||
Other | 4 | 13 | ||||
Income tax expense | $ 4 | $ 2 | $ 6 | $ 6 | $ 7 | $ 19 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Deferred tax assets: | ||
Inventories | $ 3,456 | $ 2,194 |
Warranty reserve | 3,140 | 2,513 |
Bad debt reserve | 1,217 | 199 |
Deferred revenue | 2,385 | 2,284 |
Net operating loss (NOL) carryforwards | 126,180 | 130,928 |
Tax credit carryforwards | 12,686 | 13,370 |
Depreciation, amortization and impairment loss | 496 | |
Lease liability | 2,113 | 1,464 |
Interest limitation | 6,330 | 4,655 |
Other | 1,279 | 1,095 |
Deferred tax assets | 159,282 | 158,702 |
Valuation allowance for deferred tax assets | (153,171) | (156,702) |
Deferred tax assets, net of valuation allowance | 6,111 | 2,000 |
Deferred tax liabilities: | ||
Depreciation, amortization and impairment loss | (3,998) | (594) |
Right of use assets | (2,113) | (1,406) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Change in Valuat
Income Taxes - Change in Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Valuation allowance | ||
Change in valuation allowance | $ 3.5 | $ 5.5 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carryforwards (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Domestic Tax Authority | Earliest Tax Year | |
Net Operating Loss Carryforwards | |
NOL | $ 449,151 |
Domestic Tax Authority | Latest Tax Year | |
Net Operating Loss Carryforwards | |
NOL | 89,643 |
State | |
Net Operating Loss Carryforwards | |
NOL | $ 185,650 |
Income Taxes - Tax Credit Carry
Income Taxes - Tax Credit Carryforwards - General Information (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Domestic Tax Authority | |
Tax Credit Carryforwards | |
Tax credit carry forwards | $ 5,029 |
State | |
Tax Credit Carryforwards | |
Tax credit carry forwards | $ 9,692 |
Income Taxes - Net Operating _2
Income Taxes - Net Operating Loss and Tax Credit Carryforwards (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Income Taxes | |
Annual limitation amount on utilization of the NOLs and tax credits | $ 57.3 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits - General Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 |
Income Taxes | |||
Total amount of unrecognized tax benefits | $ 1,856 | $ 1,898 | $ 1,946 |
Interest or penalties related to unrecognized tax benefits | 0 | 0 | |
Unrecognized tax benefits, that if recognized, would affect the effective tax rate | $ 1,900 | $ 1,900 |
Income Taxes - Tax Credit Car_2
Income Taxes - Tax Credit Carryforwards - Deferred Tax Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Mar. 31, 2022 |
Domestic Tax Authority | ||
Deferred Tax Assets | ||
Deferred tax assets related to research and development credits | $ 5 | $ 9.7 |
State | ||
Deferred Tax Assets | ||
Deferred tax assets related to research and development credits | $ 5.7 | $ 9.7 |
Income Taxes - Unrecognized T_2
Income Taxes - Unrecognized Tax Benefits - Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reconciliation of the beginning and ending amount of total gross unrecognized tax benefits | ||
Balance at the beginning of the period | $ 1,898 | $ 1,946 |
Lapse of statute of limitations | (42) | (48) |
Balance at the end of the period | $ 1,856 | $ 1,898 |
Stockholders' Equity (Deficie_3
Stockholders' Equity (Deficiency) - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stock-Based Compensation | ||
Stock-based compensation expense | $ 863 | $ 1,245 |
Cost of goods sold | ||
Stock-Based Compensation | ||
Stock-based compensation expense | 37 | 109 |
Research and development | ||
Stock-Based Compensation | ||
Stock-based compensation expense | 97 | 79 |
Selling, general and administrative | ||
Stock-Based Compensation | ||
Stock-based compensation expense | $ 729 | $ 1,057 |
Stockholders' Equity (Deficie_4
Stockholders' Equity (Deficiency) - 2000 Equity Incentive Plan and 2017 Equity Incentive Plan (Details) - 2017 Plan - shares | Jun. 07, 2022 | Aug. 30, 2018 | Jun. 05, 2018 | Mar. 31, 2023 |
Stock-Based Compensation | ||||
Number of shares of common stock reserved for issuance (in shares) | 300,000 | |||
Number of shares of common stock increased under amended and restated plan (in shares) | 600,000 | 2,200,000 | 300,000 | |
Number of shares available for future grant (in shares) | 984,411 |
Stockholders' Equity (Deficie_5
Stockholders' Equity (Deficiency) - Restricted Stock Units and Performance Restricted Stock Units - General Information (Details) - Restricted stock units | 12 Months Ended |
Mar. 31, 2023 item | |
Share-based Payment Arrangement, Nonemployee | |
Additional disclosures | |
Vesting period | 1 year |
Share-based Payment Arrangement, Tranche One | Share-based Payment Arrangement, Employee | |
Additional disclosures | |
Vesting period | 2 years |
Vesting percentage (as a percent) | 100% |
Share-based Payment Arrangement, Tranche Two | Share-based Payment Arrangement, Employee | |
Additional disclosures | |
Vesting period | 3 years |
Vesting percentage (as a percent) | 1% |
Vesting periods | 3 |
Share-based Payment Arrangement, Tranche Two, Annual Periods | Share-based Payment Arrangement, Employee | |
Additional disclosures | |
Vesting percentage (as a percent) | 33.33% |
Share-based Payment Arrangement, Tranche Three | Share-based Payment Arrangement, Employee | |
Additional disclosures | |
Vesting period | 4 years |
Vesting percentage (as a percent) | 1% |
Vesting periods | 4 |
Share-based Payment Arrangement, Tranche Three, Annual Periods | Share-based Payment Arrangement, Employee | |
Additional disclosures | |
Vesting percentage (as a percent) | 25% |
Stockholders' Equity (Deficie_6
Stockholders' Equity (Deficiency) - Restricted Stock Units and Performance Restricted Stock Units - Activity (Details) | 12 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Shares | |
Nonvested, balance at the beginning of the period (in shares) | shares | 591,805 |
Granted (in shares) | shares | 646,814 |
Vested and issued (in shares) | shares | (179,471) |
Forfeited (in shares) | shares | (216,517) |
Nonvested, balance at the end of the period (in shares) | shares | 842,631 |
Awards expected to vest (in shares) | shares | 842,631 |
Weighted Average Grant-Date Fair Value | |
Nonvested restricted stock units outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 5.66 |
Granted (in dollars per share) | $ / shares | 2.04 |
Vested and issued (in dollars per share) | $ / shares | 5.76 |
Forfeited (in dollars per share) | $ / shares | 4.54 |
Nonvested restricted stock units outstanding at the end of the period (in dollars per share) | $ / shares | 3.13 |
Awards expected to vest (in dollars per share) | $ / shares | $ 3.13 |
Stockholders' Equity (Deficie_7
Stockholders' Equity (Deficiency) - Restricted Stock Units and Performance Restricted Stock Units - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Additional disclosures | ||
Stock-based compensation expense | $ 863 | $ 1,245 |
Weighted average grant of restricted stock units granted during the period (in dollars per share) | $ 2.04 | |
Restricted stock units | ||
Additional disclosures | ||
Stock-based compensation expense | $ 863 | 1,245 |
Aggregate fair value of restricted stock units vested and issued | $ 477 | $ 936 |
Weighted average grant of restricted stock units granted during the period (in dollars per share) | $ 2.29 | $ 5.40 |
Stockholders' Equity (Deficie_8
Stockholders' Equity (Deficiency) - Restricted Stock Units and Performance Restricted Stock Units - Unvested Restricted Stock Units (Details) - Restricted stock units $ in Millions | 12 Months Ended |
Mar. 31, 2023 USD ($) | |
Stock-based Compensation | |
Unrecognized compensation cost | $ 1.6 |
Weighted average period for recognizing compensation cost | 2 years 1 month 6 days |
Stockholders' Equity (Deficie_9
Stockholders' Equity (Deficiency) - Restricted Stock Units and Performance Restricted Stock Units - Performance Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Additional disclosures | ||
Granted (in shares) | 646,814 | |
Stock-based compensation expense | $ 863 | $ 1,245 |
Granted (in dollars per share) | $ 2.04 | |
Restricted stock units | ||
Additional disclosures | ||
Stock-based compensation expense | $ 863 | $ 1,245 |
Granted (in dollars per share) | $ 2.29 | $ 5.40 |
Performance Shares | ||
Additional disclosures | ||
Granted (in shares) | 72,412 | 35,986 |
Performance measurement period | 3 years | 3 years |
Performance goal payment as a percentage of target | 50% | |
Stock-based compensation expense | $ 0 | $ 0 |
Granted (in dollars per share) | $ 3.80 | $ 8.39 |
Performance Shares | Share-based Payment Arrangement, Tranche Two | ||
Additional disclosures | ||
Performance measurement period | 3 years | |
Performance Shares | Maximum | ||
Additional disclosures | ||
Performance goal payment as a percentage of target | 150% |
Stockholders' Equity (Defici_10
Stockholders' Equity (Deficiency) - Stockholder Rights Plan (Details) - Series B Junior Participating Preferred Stock | May 06, 2019 Vote $ / shares |
Stockholder Rights Plan | |
Preferred stock conversion basis | 1 |
Purchase price (in dollars per share) | $ 5.22 |
Beneficial ownership of common stock (as a percent) | 4.90% |
Preferred stock dividend minimum if declared | $ 1 |
Preferred stock rights ratio over common stock | 1,000 |
Number of votes per share | Vote | 1,000 |
Ratio of consideration received in event of conversion or exchange transaction | 1,000 |
Stockholders' Equity (Defici_11
Stockholders' Equity (Deficiency) - Offerings of Common Stock and Warrants - Common Stock Offering (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 24, 2022 | Aug. 18, 2022 | Jun. 22, 2021 | Jun. 17, 2021 | Mar. 31, 2023 | Mar. 31, 2022 |
Sale of Stock | ||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||
Over-Allotment Option | ||||||
Sale of Stock | ||||||
Common stock sold (in shares) | 2,934,498 | 1,904,763 | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||
Offering price to public | 2.75 | 5.25 | ||||
Underwriters, Share Price | $ 2.585 | $ 4.91 | ||||
Percentage Of Underwriters Discount | 6% | 6.50% | ||||
Period Of Underwriters Option To Purchase Shares | 30 days | |||||
Number Of Options Shares | 285,714 | |||||
Net proceeds of public stock offering | $ 7.3 | $ 10.5 | ||||
Payments Of Underwriting Discounts, Commissions And Offering Expenses | $ 0.8 | $ 1 |
Stockholders' Equity (Defici_12
Stockholders' Equity (Deficiency) - Offerings of Common Stock and Warrants - General Information (Details) | 1 Months Ended | ||||||||
Oct. 01, 2020 USD ($) $ / shares shares | Jun. 16, 2020 USD ($) $ / shares | Dec. 09, 2019 USD ($) $ / shares | Oct. 24, 2019 $ / shares shares | Sep. 04, 2019 $ / shares shares | Feb. 04, 2019 USD ($) $ / shares shares | Jan. 31, 2021 item $ / shares shares | Mar. 31, 2023 USD ($) shares | Aug. 24, 2022 $ / shares shares | |
Goldman Warrant, Purchase Warrant for Common Shares | |||||||||
Warrants | |||||||||
Issued warrants (in shares) | 1 | ||||||||
Exercise price (in dollars per share) | $ / shares | $ 2.61 | $ 3.80 | $ 8.86 | ||||||
Aggregate shares called by warrants (in shares) | 404,634 | 463,067 | |||||||
Aggregate shares called by each warrant (in shares) | 404,634 | ||||||||
Purchase price of warrants | $ | $ 150,000 | ||||||||
Date from which warrants exercisable | Aug. 04, 2019 | ||||||||
Maturity date | Feb. 04, 2024 | ||||||||
Expected proceeds from warrants | $ | $ 1,186,313 | ||||||||
Amortization of debt discount (additional debt discount) | $ | $ (100,000) | $ (100,000) | $ (300,000) | ||||||
Value of warrants | $ | $ 2,300,000 | ||||||||
Goldman 2020 Warrant, Purchase Warrant for Common Shares | |||||||||
Warrants | |||||||||
Issued warrants (in shares) | 1 | ||||||||
Exercise price (in dollars per share) | $ / shares | $ 4.76 | ||||||||
Aggregate shares called by warrants (in shares) | 291,295 | ||||||||
Aggregate shares called by each warrant (in shares) | 291,295 | ||||||||
Date from which warrants exercisable | Oct. 01, 2020 | ||||||||
Maturity date | Feb. 04, 2024 | ||||||||
Private placement, purchase price | $ | $ 10,000 | ||||||||
Value of warrants | $ | $ 800,000 | ||||||||
September 2019 Pre-Funded Common Stock Warrants | |||||||||
Warrants | |||||||||
Exercise price (in dollars per share) | $ / shares | $ 0.001 | ||||||||
Aggregate shares called by warrants (in shares) | 440,000 | ||||||||
Purchase price per warrant (in dollars per share) | $ / shares | $ 5 | ||||||||
Warrants exercised (in shares) | 440,000 | ||||||||
September 2019 Series D Common Stock Warrants | |||||||||
Warrants | |||||||||
Outstanding warrants (in shares) | 75,000 | ||||||||
Exercise price (in dollars per share) | $ / shares | $ 6.12 | $ 6.12 | |||||||
Aggregate shares called by warrants (in shares) | 765,000 | ||||||||
Term | 5 years | ||||||||
Date from which warrants exercisable | Apr. 02, 2020 | ||||||||
Maturity date | Apr. 02, 2025 | ||||||||
Shares as percentage of Registered Direct Offering (as a percent) | 75% | ||||||||
Number of warrant holders | item | 3 | ||||||||
Warrants exercised (in shares) | 690,000 | ||||||||
Warrants exercised, shares issued (in shares) | 352,279 | ||||||||
August 2022 Warrants | |||||||||
Warrants | |||||||||
Exercise price (in dollars per share) | $ / shares | $ 2.75 | ||||||||
Aggregate shares called by warrants (in shares) | 2,934,498 |
Stockholders' Equity (Defici_13
Stockholders' Equity (Deficiency) - Offerings of Common Stock and Warrants - Valuation Assumptions (Details) | Mar. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques | |
Warrants and Rights Outstanding, Valuation Technique | us-gaap:ValuationTechniqueOptionPricingModelMember |
Goldman 2020 Warrant, Purchase Warrant for Common Shares | Measurement Input, Risk Free Interest Rate | |
Fair Value Measurement Inputs and Valuation Techniques | |
Warrants and Rights Outstanding, Measurement Input | 0.002 |
Goldman 2020 Warrant, Purchase Warrant for Common Shares | Measurement Input, Expected Term | |
Fair Value Measurement Inputs and Valuation Techniques | |
Warrants and Rights Outstanding, Measurement Input | 3 |
Goldman 2020 Warrant, Purchase Warrant for Common Shares | Measurement Input, Price Volatility | |
Fair Value Measurement Inputs and Valuation Techniques | |
Warrants and Rights Outstanding, Measurement Input | 0.810 |
Stockholders' Equity (Defici_14
Stockholders' Equity (Deficiency) - Offerings of Common Stock and Warrants - Additional Information (Details) $ / shares in Units, $ in Millions | Sep. 04, 2019 USD ($) $ / shares shares |
Stockholders' Equity (Deficiency) | |
Registered Direct Offering, common stock, aggregate shares offered, shares (in shares) | shares | 580,000 |
Registered Direct Offering, common stock, aggregate shares offered, share price (in dollars per share) | $ / shares | $ 5 |
Proceeds from issuance of common stock and warrants, Registered Direct Offering | $ 5.1 |
Proceeds from issuance of common stock and warrants, net of offering costs | $ 4.6 |
Stockholders' Equity (Defici_15
Stockholders' Equity (Deficiency) - Offerings of Common Stock and Warrants - Stock to Vendors (Details) - Andretti Autosport 6, Inc. - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2021 | Feb. 17, 2021 | Mar. 31, 2022 | |
Offerings of Common Stock and Warrants and At-the-Market Offering Program | |||
Shares issued (in shares) | 9,541 | 105,933 | |
Sponsorship agreement, sponsorship fee, amortization of prepaid marketing credit | $ 1 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Carrying Value | ||
Carrying values and estimated fair values of obligations | ||
Term note payable | $ 50,983 | $ 50,949 |
Estimated Fair Value | ||
Carrying values and estimated fair values of obligations | ||
Term note payable | $ 51,000 | $ 51,000 |
Term Note Payable - Three-Year
Term Note Payable - Three-Year Term Note - General Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Dec. 07, 2023 | Oct. 01, 2020 USD ($) | Feb. 04, 2019 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) MW | Mar. 31, 2022 USD ($) | Apr. 21, 2023 USD ($) | Apr. 05, 2023 USD ($) | Mar. 13, 2023 USD ($) | Jul. 13, 2022 USD ($) | May 12, 2021 USD ($) MW | May 11, 2021 USD ($) | |
Term Note Payable | ||||||||||||||
Term of loan | 3 years | |||||||||||||
Amortization of debt issuance costs | $ 43 | $ 51 | $ 60 | $ 68 | $ 35 | |||||||||
Term Note Payable | Senior Notes | ||||||||||||||
Term Note Payable | ||||||||||||||
Term of loan | 3 years | |||||||||||||
Long-term debt | 51,000 | |||||||||||||
Debt discount and debt issuance costs, net | 100 | |||||||||||||
Amortization of the debt discount and debt issuance costs | 34 | 34 | ||||||||||||
Interest expense, debt | 6,200 | 5,000 | ||||||||||||
Amortization of debt issuance costs | 34 | $ 34 | ||||||||||||
Term Note Payable, Note Purchase Agreement | Senior Notes | ||||||||||||||
Term Note Payable | ||||||||||||||
Debt instrument, issuance date | Feb. 04, 2019 | |||||||||||||
Aggregate principal amount | $ 30,000 | |||||||||||||
Interest rate (as a percent) | 13% | |||||||||||||
Debt instrument, frequency of periodic payment | quarterly | |||||||||||||
Term Note Payable, Amended and Restated Note Purchase Agreement | Senior Notes | ||||||||||||||
Term Note Payable | ||||||||||||||
Debt instrument, issuance date | Oct. 01, 2020 | |||||||||||||
Proceeds from Issuance of Debt | $ 20,000 | |||||||||||||
Long-term debt | $ 50,000 | |||||||||||||
Variable interest rate basis spread (as a percent) | 8.75% | |||||||||||||
Debt instrument, covenants, minimum consolidated liquidity | $ 9,000 | $ 9,000 | $ 12,200 | $ 9,000 | ||||||||||
Debt instrument, covenants, minimum power of Rental Fleet by 9-month anniversary of Closing Date | MW | 6.25 | 6.25 | ||||||||||||
Debt instrument, covenants, minimum power of Rental Fleet by 18-month anniversary of Closing Date | MW | 12.50 | 12.50 | ||||||||||||
Requirements to use commercially reasonable best efforts to raise at least financing through a sale of common stock by September 14, 2022 | $ 10,000 | |||||||||||||
Amount of minimum consolidated liquidity covenant breached | $ 9,000 | |||||||||||||
Term Note Payable, Amended and Restated Note Purchase Agreement | Senior Notes | Funds Held in Wells Fargo Bank | ||||||||||||||
Term Note Payable | ||||||||||||||
Amount of cash and cash equivalents transferred | $ 9,000 | $ 9,000 | ||||||||||||
Term Note Payable, Amended and Restated Note Purchase Agreement | Senior Notes | Minimum | ||||||||||||||
Term Note Payable | ||||||||||||||
Debt instrument, covenants, minimum power of Rental Fleet by 9-month anniversary of Closing Date | MW | 2 |
Term Note Payable - SBA Paychec
Term Note Payable - SBA Paycheck Protection Program Loan (Details) - USD ($) | Dec. 07, 2023 | May 13, 2020 | Apr. 24, 2020 |
Term Note Payable | |||
Term of loan | 3 years | ||
Paycheck Protection Program, CARES Act | Loans Payable | |||
Term Note Payable | |||
Loan amount | $ 2,610,200 | ||
Debt instrument, issuance date | Apr. 24, 2020 | ||
Interest rate (as a percent) | 1% | ||
Term of loan | 2 years | ||
Debt instrument, maturity date | Apr. 24, 2022 | ||
Loans repaid | $ 660,200 |
Term Note Payable - Three-Yea_2
Term Note Payable - Three-Year Term Note - Gain on Extinguishment of Debt (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Mar. 31, 2022 | |
Gain on extinguishment of debt | ||
Gain (loss) on extinguishment of debt | $ 1,900,000 | $ 1,950,000 |
Paycheck Protection Program, CARES Act | Loans Payable | ||
Gain on extinguishment of debt | ||
Previously repaid debt | $ 660,200 |
Leases - Maturity of Lessor Ope
Leases - Maturity of Lessor Operating Leases Revenue (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Minimum rental revenue to be received under operating leases | |
2024 | $ 1,756 |
2025 | 1,756 |
2026 | 466 |
Total minimum rental revenue | $ 3,978 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lease, Cost | ||
Finance lease costs | $ 697 | $ 80 |
Operating lease costs | 2,291 | 1,157 |
Total lease costs | $ 2,988 | $ 1,237 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 |
Leases | |||||
Finance lease right-of-use assets | $ 4,529 | $ 4,669 | $ 4,808 | $ 674 | $ 246 |
Operating lease right-of-use assets | 8,808 | 8,702 | 9,075 | 6,321 | 5,959 |
Total right-of-use assets | 13,337 | 6,205 | |||
Finance lease liability, current | 773 | 790 | 766 | 191 | 89 |
Operating lease liability, current | 2,492 | 1,293 | 1,693 | 764 | 586 |
Finance lease liability, non-current | 2,903 | 3,072 | 3,281 | 477 | 190 |
Operating lease liability, non-current | 6,588 | $ 7,572 | $ 7,572 | $ 5,774 | 5,619 |
Total lease liabilities | $ 12,756 | $ 6,484 | |||
Finance leases, weighted average remaining lease life | 2 years 3 months 7 days | 3 years 5 months 26 days | |||
Finance leases, weighted average discount rate | 13% | 5% | |||
Operating leases, weighted average remaining lease life | 4 years 10 months 9 days | 8 years 4 months 6 days | |||
Operating leases, weighted average discount rate | 12% | 12% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases | ||
Cash paid for amounts included in the measurement of lease liabilities, financing cash flows from finance leases | $ 803 | $ 92 |
Cash paid for amounts included in the measurement of lease liabilities, operating cash flows from finance leases | 45 | 17 |
Cash paid for amounts included in the measurement of lease liabilities, operating cash flows from operating leases | 2,258 | 1,106 |
Right-of-use assets obtained in exchange for lease obligations, finance leases | 3,991 | |
Right-of-use assets obtained in exchange for lease obligations, operating leases | $ 4,179 | $ 1,877 |
Leases - Minimum Commitments un
Leases - Minimum Commitments under Non-cancelable Leases (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Maturities of finance lease liabilities: | |
2024 | $ 1,017 |
2025 | 1,017 |
2026 | 1,963 |
Total lease payments, finance lease | 3,997 |
Less: imputed interest, finance lease | (321) |
Present value of finance lease liabilities | 3,676 |
Maturities of operating lease liabilities: | |
2024 | 3,477 |
2025 | 3,424 |
2026 | 2,412 |
2027 | 255 |
2028 | 256 |
Thereafter | 2,138 |
Total lease payments, operating lease | 11,962 |
Less: imputed interest, operating lease | (2,882) |
Present value of operating lease liabilities | $ 9,080 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2023 USD ($) MW | |
Lessee, Finance Lease, Description | |
Extension option | true |
Minimum | |
Lessee, Finance Lease, Description | |
Term of contract | 12 months |
Maximum | |
Lessee, Finance Lease, Description | |
Term of contract | 36 months |
Primary Office and Manufacturing Facilities | |
Lessee, Operating Lease, Description | |
Renewal options, operating leases | true |
Renewal options term, operating leases | 5 years |
Lessee, Finance Lease, Description | |
Renewal options, finance leases | true |
Renewal options term, finance leases | 5 years |
Unused Microturbine Equipment Customer [Member] | |
Lessee, Finance Lease, Description | |
Capacity of Microturbine | MW | 9.8 |
Average Lease Agreement Term | 36 months |
Total Commitment Value of Lease Agreement | $ | $ 8.9 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Commitments (Details) - USD ($) $ in Millions | Mar. 13, 2024 | Oct. 13, 2023 | Mar. 31, 2023 |
Commitments and Contingencies | |||
Loss contingency, damages sought, value | $ 24.5 | ||
Maximum legal fees, insurance deductible | $ 1.2 | ||
Purchase Commitment [Member] | |||
Commitments and Contingencies | |||
Commitment to purchase inventories | $ 54.2 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2019 | Mar. 31, 2023 | Mar. 31, 2022 | |
Employee Benefit Plans | |||
Maximum employee contribution as percentage of their eligible compensation | 90% | ||
Employer's matching contribution (as a percent) | 50% | 50% | |
Employer's matching contribution, percentage of employee's gross pay (as a percent) | 4% | 6% | |
Employer's contributions made since the inception of the plan | $ 0 | ||
Employer's match vesting percentage | 25% | ||
Employer's match vesting period starting from employee's hire date | 4 years | ||
Expense recorded | $ 0.2 | $ 0.3 |
Other Assets - General Informat
Other Assets - General Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 19, 2018 USD ($) | Sep. 30, 2013 | Mar. 31, 2023 USD ($) kW | Mar. 31, 2022 USD ($) | Sep. 18, 2018 USD ($) | Jul. 25, 2018 USD ($) | |
Other Assets | ||||||
Prepaid royalty | $ 2,505 | $ 2,630 | ||||
Carrier | ||||||
Other Assets | ||||||
Reduction in fixed rate royalty (as a percent) | 50% | |||||
Accrued royalties | $ 0 | $ 3,000 | ||||
Payment of royalty settlement | $ 3,000 | |||||
Prepaid royalty | $ 3,000 | |||||
Amortization period of prepaid royalty | 15 years | |||||
Carrier | C200 | ||||||
Other Assets | ||||||
Capacity of microturbine (in kW) | kW | 200 |
Other Assets - Tabular Disclosu
Other Assets - Tabular Disclosure (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Royalty-related assets | ||
Royalty-related assets | $ 2,505 | $ 2,630 |
Other current assets | ||
Royalty-related assets | ||
Royalty-related assets | 124 | 124 |
Other assets | ||
Royalty-related assets | ||
Royalty-related assets | $ 2,381 | $ 2,506 |
Restatement of Consolidated F_3
Restatement of Consolidated Financial Statements - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Current Assets: | ||||||
Cash and cash equivalents | $ 12,839 | $ 16,618 | $ 23,780 | $ 16,914 | $ 22,559 | |
Accounts receivable, net of allowances | 7,102 | 11,411 | 13,575 | 14,279 | 15,894 | |
Inventories, net | 37,328 | 33,869 | 32,094 | 27,863 | 30,167 | |
Prepaid expenses and other current assets | 7,447 | 7,125 | 7,039 | 6,468 | 5,519 | |
Total current assets | 64,716 | 69,023 | 76,488 | 65,524 | 74,139 | |
Property, plant, equipment and rental assets, net | 24,275 | 20,777 | 20,094 | 20,618 | 17,792 | |
Finance lease right-of-use assets | 4,529 | 4,669 | 4,808 | 674 | 246 | |
Operating lease right-of-use assets | 8,808 | 8,702 | 9,075 | 6,321 | 5,959 | |
Non-current portion of inventories | 3,112 | 3,055 | 2,277 | 2,013 | 1,680 | |
Other assets | 2,591 | 2,632 | 2,660 | 2,612 | 2,676 | |
Total assets | 108,031 | 108,858 | 115,402 | 97,762 | 102,492 | |
Current Liabilities: | ||||||
Accounts payable and accrued expenses | 30,290 | 25,803 | 24,344 | 22,238 | 25,130 | |
Accrued salaries and wages | 1,223 | 1,421 | 1,123 | 1,360 | 1,147 | |
Accrued warranty reserve | 1,576 | 1,540 | 1,662 | 1,527 | 1,483 | |
Deferred revenue | 23,372 | 17,471 | 20,267 | 13,682 | 14,835 | |
Finance lease liability, current | 773 | 790 | 766 | 191 | 89 | |
Operating lease liability, current | 2,492 | 1,293 | 1,693 | 764 | 586 | |
Current portion of notes payable and lease obligations | 260 | 521 | ||||
Factory protection plan liability | 10,844 | 11,848 | 10,192 | 10,727 | 9,170 | |
Term note payable | 50,974 | 50,966 | 50,957 | |||
Total current liabilities | 121,553 | 111,140 | 111,273 | 101,967 | 103,389 | |
Deferred revenue, non-current | 817 | 817 | 915 | 934 | 981 | |
Finance lease liability, non-current | 2,903 | 3,072 | 3,281 | 477 | 190 | |
Operating lease liability, non-current | 6,588 | 7,572 | 7,572 | 5,774 | 5,619 | |
Other non-current liabilities | 265 | 265 | 265 | 265 | ||
Total liabilities | 132,126 | 122,866 | 123,306 | 109,417 | 110,179 | |
Stockholders' (Deficiency) Equity: | ||||||
Preferred stock | ||||||
Common stock | 18 | 18 | 18 | 15 | 15 | |
Additional paid-in capital | 955,228 | 954,982 | 954,750 | 947,237 | 946,969 | |
Accumulated deficit | (977,202) | (966,869) | (960,533) | (956,783) | (952,583) | |
Treasury stock | (2,139) | (2,139) | (2,139) | (2,124) | (2,088) | |
Total stockholders' (deficiency) equity | (24,095) | (14,008) | (7,904) | (11,655) | (7,687) | $ 2,232 |
Total liabilities and stockholders' (deficiency) equity | $ 108,031 | 108,858 | 115,402 | 97,762 | $ 102,492 | |
Bill and Hold | ||||||
Current Assets: | ||||||
Accounts receivable, net of allowances | (3,579) | (4,540) | (9,871) | |||
Inventories, net | 8,267 | 10,293 | 9,255 | |||
Total current assets | 4,688 | 5,753 | (616) | |||
Property, plant, equipment and rental assets, net | 1,565 | 1,607 | 1,484 | |||
Finance lease right-of-use assets | (2,025) | (2,080) | (1,886) | |||
Non-current portion of accounts receivable | (107) | (1,109) | (1,056) | |||
Total assets | 4,121 | 4,171 | (2,074) | |||
Current Liabilities: | ||||||
Accounts payable and accrued expenses | (284) | |||||
Deferred revenue | 7,772 | 9,581 | 3,988 | |||
Finance lease liability, current | (118) | (496) | (454) | |||
Total current liabilities | 7,370 | 9,085 | 3,534 | |||
Finance lease liability, non-current | (392) | (1,468) | (1,376) | |||
Other non-current liabilities | 265 | 265 | 265 | |||
Total liabilities | 7,243 | 7,882 | 2,423 | |||
Stockholders' (Deficiency) Equity: | ||||||
Accumulated deficit | (3,122) | (3,711) | (4,497) | |||
Total stockholders' (deficiency) equity | (3,122) | (3,711) | (4,497) | |||
Total liabilities and stockholders' (deficiency) equity | 4,121 | 4,171 | (2,074) | |||
FPP Contracts | ||||||
Current Assets: | ||||||
Accounts receivable, net of allowances | (129) | (74) | (18) | |||
Total current assets | (129) | (74) | (18) | |||
Total assets | (129) | (74) | (18) | |||
Current Liabilities: | ||||||
Factory protection plan liability | 11,848 | 10,192 | 10,727 | |||
Total current liabilities | 11,848 | 10,192 | 10,727 | |||
Total liabilities | 11,848 | 10,192 | 10,727 | |||
Stockholders' (Deficiency) Equity: | ||||||
Accumulated deficit | (11,977) | (10,266) | (10,745) | |||
Total stockholders' (deficiency) equity | (11,977) | (10,266) | (10,745) | |||
Total liabilities and stockholders' (deficiency) equity | (129) | (74) | (18) | |||
Note Reclassification | ||||||
Current Liabilities: | ||||||
Term note payable | 50,966 | 50,957 | ||||
Total current liabilities | 50,966 | 50,957 | ||||
Term note payable, net | (50,966) | (50,957) | ||||
Previously Reported | ||||||
Current Assets: | ||||||
Cash and cash equivalents | 16,618 | 23,780 | 16,914 | |||
Accounts receivable, net of allowances | 15,119 | 18,189 | 24,168 | |||
Inventories, net | 25,602 | 21,801 | 18,608 | |||
Prepaid expenses and other current assets | 7,125 | 7,039 | 6,468 | |||
Total current assets | 64,464 | 70,809 | 66,158 | |||
Property, plant, equipment and rental assets, net | 25,906 | 25,375 | 21,694 | |||
Non-current portion of accounts receivable | 107 | 1,109 | 1,056 | |||
Non-current portion of inventories | 3,055 | 2,277 | 2,013 | |||
Other assets | 11,334 | 11,735 | 8,933 | |||
Total assets | 104,866 | 111,305 | 99,854 | |||
Current Liabilities: | ||||||
Accounts payable and accrued expenses | 26,087 | 24,344 | 22,238 | |||
Accrued salaries and wages | 1,421 | 1,123 | 1,360 | |||
Accrued warranty reserve | 1,540 | 1,662 | 1,527 | |||
Deferred revenue | 9,699 | 10,686 | 9,694 | |||
Current portion of notes payable and lease obligations | 2,201 | 3,215 | 1,930 | |||
Term note payable | 50,974 | |||||
Total current liabilities | 91,922 | 41,030 | 36,749 | |||
Deferred revenue, non-current | 817 | 915 | 934 | |||
Long-term portion of notes payable and lease obligations | 11,036 | 12,321 | 7,627 | |||
Term note payable, net | 50,966 | 50,957 | ||||
Total liabilities | 103,775 | 105,232 | 96,267 | |||
Stockholders' (Deficiency) Equity: | ||||||
Common stock | 18 | 18 | 15 | |||
Additional paid-in capital | 954,982 | 954,750 | 947,237 | |||
Accumulated deficit | (951,770) | (946,556) | (941,541) | |||
Treasury stock | (2,139) | (2,139) | (2,124) | |||
Total stockholders' (deficiency) equity | 1,091 | 6,073 | 3,587 | |||
Total liabilities and stockholders' (deficiency) equity | 104,866 | 111,305 | 99,854 | |||
Classifications | ||||||
Current Assets: | ||||||
Property, plant, equipment and rental assets, net | (6,694) | (6,888) | (2,560) | |||
Finance lease right-of-use assets | 6,694 | 6,888 | 2,560 | |||
Operating lease right-of-use assets | 8,702 | 9,075 | 6,321 | |||
Other assets | (8,702) | (9,075) | (6,321) | |||
Current Liabilities: | ||||||
Finance lease liability, current | 908 | 1,262 | 645 | |||
Operating lease liability, current | 1,293 | 1,693 | 764 | |||
Current portion of notes payable and lease obligations | (2,201) | (2,955) | (1,409) | |||
Long-term portion of notes payable and lease obligations | (11,036) | (12,321) | (7,627) | |||
Finance lease liability, non-current | 3,464 | 4,749 | 1,853 | |||
Operating lease liability, non-current | $ 7,572 | $ 7,572 | $ 5,774 |
Restatement of Consolidated F_4
Restatement of Consolidated Financial Statements - Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue, net: | |||||||
Total revenue, net | $ 21,010 | $ 20,124 | $ 18,765 | $ 38,889 | $ 59,899 | $ 73,882 | $ 63,964 |
Cost of goods sold: | |||||||
Total cost of goods sold | 19,310 | 16,734 | 16,251 | 32,985 | 52,295 | 64,818 | 58,323 |
Gross profit | 1,700 | 3,390 | 2,514 | 5,904 | 7,604 | 9,064 | 5,641 |
Operating expenses: | |||||||
Research and development | 633 | 603 | 490 | 1,093 | 1,726 | 2,376 | 3,359 |
Selling, general and administrative | 5,597 | 5,107 | 4,919 | 10,026 | 15,623 | 25,148 | 22,242 |
Total operating expenses | 6,230 | 5,710 | 5,409 | 11,119 | 17,349 | 27,524 | 25,601 |
Loss from operations | (4,530) | (2,320) | (2,895) | (5,215) | (9,745) | (18,460) | (19,960) |
Other income (expense) | 5 | (50) | 2 | (48) | (43) | (33) | 642 |
Interest income | 42 | 26 | 6 | 32 | 74 | 141 | 21 |
Interest expense | (1,853) | (1,305) | (1,311) | (2,616) | (4,469) | 6,163 | 5,004 |
Loss before provision for income taxes | (6,336) | (3,649) | (4,198) | (7,847) | (14,183) | (24,515) | (22,351) |
Provision for income taxes | 4 | 2 | 6 | 6 | 7 | 19 | |
Net loss | (6,336) | (3,653) | (4,200) | (7,853) | (14,189) | (24,522) | (22,370) |
Less: Deemed dividend on purchase warrant for common shares | 97 | 97 | 97 | 97 | |||
Net loss attributable to common stockholders | $ (6,336) | $ (3,750) | $ (4,200) | $ (7,950) | $ (14,286) | $ (24,619) | $ (22,370) |
Net loss per common share attributable to common stockholders-basic (in dollars per share) | $ (0.35) | $ (0.22) | $ (0.27) | $ (0.50) | $ (0.85) | $ (1.43) | $ (1.52) |
Net loss per common share attributable to common stockholders-diluted (in dollars per share) | $ (0.35) | $ (0.22) | $ (0.27) | $ (0.50) | $ (0.85) | $ (1.43) | $ (1.52) |
Weighted average shares used to calculate basic net loss per common share attributable to common stockholders (in shares) | 18,351 | 16,785 | 15,318 | 16,056 | 16,824 | 17,206,000 | 14,727,000 |
Weighted average shares used to calculate diluted net loss per common share attributable to common stockholders (in shares) | 18,351 | 16,785 | 15,318 | 16,056 | 16,824 | 17,206,000 | 14,727,000 |
Bill and Hold | |||||||
Revenue, net: | |||||||
Total revenue, net | $ 1,596 | $ (480) | $ 297 | $ (183) | $ 1,413 | ||
Cost of goods sold: | |||||||
Total cost of goods sold | 854 | (1,215) | 914 | (301) | 553 | ||
Gross profit | 742 | 735 | (617) | 118 | 860 | ||
Operating expenses: | |||||||
Selling, general and administrative | 200 | 200 | |||||
Total operating expenses | 200 | 200 | |||||
Loss from operations | 542 | 735 | (617) | 118 | 660 | ||
Interest expense | 47 | 51 | 51 | 102 | 149 | ||
Loss before provision for income taxes | 589 | 786 | (566) | 220 | 809 | ||
Net loss | 589 | 786 | (566) | 220 | 809 | ||
Net loss attributable to common stockholders | $ 589 | $ 786 | $ (566) | $ 220 | $ 809 | ||
Net loss per common share attributable to common stockholders-basic (in dollars per share) | $ 0.03 | $ 0.05 | $ (0.04) | $ 0.01 | $ 0.05 | ||
Net loss per common share attributable to common stockholders-diluted (in dollars per share) | $ 0.03 | $ 0.05 | $ (0.04) | $ 0.01 | $ 0.05 | ||
Weighted average shares used to calculate basic net loss per common share attributable to common stockholders (in shares) | 18,351 | 16,785 | 15,318 | 16,056 | 16,824 | ||
Weighted average shares used to calculate diluted net loss per common share attributable to common stockholders (in shares) | 18,351 | 16,785 | 15,318 | 16,056 | 16,824 | ||
FPP Contracts | |||||||
Revenue, net: | |||||||
Total revenue, net | $ (192) | $ (171) | $ (184) | $ (355) | $ (547) | ||
Cost of goods sold: | |||||||
Total cost of goods sold | 1,519 | (650) | 1,391 | 741 | 2,260 | ||
Gross profit | (1,711) | 479 | (1,575) | (1,096) | (2,807) | ||
Operating expenses: | |||||||
Loss from operations | (1,711) | 479 | (1,575) | (1,096) | (2,807) | ||
Loss before provision for income taxes | (1,711) | 479 | (1,575) | (1,096) | (2,807) | ||
Net loss | (1,711) | 479 | (1,575) | (1,096) | (2,807) | ||
Net loss attributable to common stockholders | $ (1,711) | $ 479 | $ (1,575) | $ (1,096) | $ (2,807) | ||
Net loss per common share attributable to common stockholders-basic (in dollars per share) | $ (0.09) | $ 0.03 | $ (0.10) | $ (0.07) | $ (0.17) | ||
Net loss per common share attributable to common stockholders-diluted (in dollars per share) | $ (0.09) | $ 0.03 | $ (0.10) | $ (0.07) | $ (0.17) | ||
Weighted average shares used to calculate basic net loss per common share attributable to common stockholders (in shares) | 18,351 | 16,785 | 15,318 | 16,056 | 16,824 | ||
Weighted average shares used to calculate diluted net loss per common share attributable to common stockholders (in shares) | 18,351 | 16,785 | 15,318 | 16,056 | 16,824 | ||
Previously Reported | |||||||
Revenue, net: | |||||||
Total revenue, net | $ 19,606 | $ 20,775 | $ 18,652 | $ 39,427 | $ 59,033 | ||
Cost of goods sold: | |||||||
Total cost of goods sold | 16,937 | 18,599 | 13,946 | 32,545 | 49,482 | ||
Gross profit | 2,669 | 2,176 | 4,706 | 6,882 | 9,551 | ||
Operating expenses: | |||||||
Research and development | 633 | 603 | 490 | 1,093 | 1,726 | ||
Selling, general and administrative | 5,397 | 5,107 | 4,919 | 10,026 | 15,423 | ||
Total operating expenses | 6,030 | 5,710 | 5,409 | 11,119 | 17,149 | ||
Loss from operations | (3,361) | (3,534) | (703) | (4,237) | (7,598) | ||
Other income (expense) | 5 | (50) | 2 | (48) | (43) | ||
Interest income | 42 | 26 | 6 | 32 | 74 | ||
Interest expense | (1,900) | (1,356) | (1,362) | (2,718) | (4,618) | ||
Loss before provision for income taxes | (5,214) | (4,914) | (2,057) | (6,971) | (12,185) | ||
Provision for income taxes | 4 | 2 | 6 | 6 | |||
Net loss | (5,214) | (4,918) | (2,059) | (6,977) | (12,191) | ||
Less: Deemed dividend on purchase warrant for common shares | 97 | 97 | 97 | ||||
Net loss attributable to common stockholders | $ (5,214) | $ (5,015) | $ (2,059) | $ (7,074) | $ (12,288) | ||
Net loss per common share attributable to common stockholders-basic (in dollars per share) | $ (0.28) | $ (0.30) | $ (0.13) | $ (0.44) | $ (0.73) | ||
Net loss per common share attributable to common stockholders-diluted (in dollars per share) | $ (0.28) | $ (0.30) | $ (0.13) | $ (0.44) | $ (0.73) | ||
Weighted average shares used to calculate basic net loss per common share attributable to common stockholders (in shares) | 18,351 | 16,785 | 15,318 | 16,056 | 16,824 | ||
Weighted average shares used to calculate diluted net loss per common share attributable to common stockholders (in shares) | 18,351 | 16,785 | 15,318 | 16,056 | 16,824 | ||
Product and accessories | |||||||
Revenue, net: | |||||||
Total revenue, net | $ 11,427 | $ 9,594 | $ 9,534 | $ 19,128 | $ 30,555 | $ 35,033 | $ 32,720 |
Cost of goods sold: | |||||||
Total cost of goods sold | 12,467 | 11,044 | 9,769 | 20,813 | 33,280 | 39,938 | 37,106 |
Product and accessories | Bill and Hold | |||||||
Revenue, net: | |||||||
Total revenue, net | 1,424 | (1,009) | 367 | (642) | 782 | ||
Cost of goods sold: | |||||||
Total cost of goods sold | 837 | (1,452) | 878 | (574) | 263 | ||
Product and accessories | Previously Reported | |||||||
Revenue, net: | |||||||
Total revenue, net | 10,003 | 10,603 | 9,167 | 19,770 | 29,773 | ||
Cost of goods sold: | |||||||
Total cost of goods sold | 11,630 | 12,496 | 8,891 | 21,387 | 33,017 | ||
Parts, service and rentals | |||||||
Revenue, net: | |||||||
Total revenue, net | 9,583 | 10,530 | 9,231 | 19,761 | 29,344 | 38,849 | 31,244 |
Cost of goods sold: | |||||||
Total cost of goods sold | 6,843 | 5,690 | 6,482 | 12,172 | 19,015 | $ 24,880 | $ 21,217 |
Parts, service and rentals | Bill and Hold | |||||||
Revenue, net: | |||||||
Total revenue, net | 172 | 529 | (70) | 459 | 631 | ||
Cost of goods sold: | |||||||
Total cost of goods sold | 17 | 237 | 36 | 273 | 290 | ||
Parts, service and rentals | FPP Contracts | |||||||
Revenue, net: | |||||||
Total revenue, net | (192) | (171) | (184) | (355) | (547) | ||
Cost of goods sold: | |||||||
Total cost of goods sold | 1,519 | (650) | 1,391 | 741 | 2,260 | ||
Parts, service and rentals | Previously Reported | |||||||
Revenue, net: | |||||||
Total revenue, net | 9,603 | 10,172 | 9,485 | 19,657 | 29,260 | ||
Cost of goods sold: | |||||||
Total cost of goods sold | $ 5,307 | $ 6,103 | $ 5,055 | $ 11,158 | $ 16,465 |
Restatement of Consolidated F_5
Restatement of Consolidated Financial Statements - Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities: | |||||
Net loss | $ (4,200) | $ (7,853) | $ (14,189) | $ (24,522) | $ (22,370) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation and amortization | 651 | 1,470 | 2,309 | 3,177 | 1,915 |
Amortization of financing costs and discounts | 43 | 51 | 60 | 68 | 35 |
Amortization of right-of-use assets | 151 | 475 | 848 | 1,330 | 657 |
Inventory provision | 270 | 420 | 771 | 961 | 791 |
Provision for warranty expenses | 174 | 364 | 369 | 592 | 646 |
Stock-based compensation | 232 | 386 | 617 | 863 | 1,245 |
Bad debt expense (recovery) | 75 | 437 | 4,277 | 391 | |
Gain on disposal of equipment | 279 | ||||
Changes in operating assets and liabilities: | |||||
Accounts receivable | 1,597 | 2,076 | 3,725 | 4,060 | (3,383) |
Inventories | 178 | (4,631) | (7,535) | (11,521) | (9,105) |
Prepaid expenses, other current assets and other assets | (253) | (874) | (933) | (1,210) | 164 |
Accounts payable and accrued expenses | (2,668) | (871) | 920 | 5,660 | 5,098 |
Operating lease liability | (179) | (531) | (931) | (1,304) | (613) |
Accrued salaries and wages and long-term liabilities | 212 | (23) | 274 | 77 | (743) |
Accrued warranty reserve | (130) | (185) | (312) | (499) | (5,013) |
Deferred revenue | (1,200) | 5,366 | 2,472 | 8,373 | 3,229 |
Factory protection plan liability | 1,557 | 1,022 | 2,678 | 1,674 | 1,508 |
Net cash used in operating activities | (3,565) | (2,984) | (8,420) | (7,944) | (27,498) |
Cash Flows from Investing Activities: | |||||
Expenditures for property, plant, equipment and rental assets | (1,887) | (2,564) | (3,999) | (8,222) | (9,924) |
Net cash used in investing activities | (1,887) | (2,564) | (3,999) | (8,222) | (9,924) |
Cash Flows from Financing Activities: | |||||
Repayment of notes payable and lease obligations | (193) | (481) | (772) | (804) | (685) |
Cash used in employee stock-based transactions | (36) | (52) | (52) | (52) | (138) |
Net proceeds from issuance of common stock and warrants | 36 | 7,302 | 7,302 | 7,302 | 11,271 |
Net cash provided by financing activities | (193) | 6,769 | 6,478 | 6,446 | 10,448 |
Net (decrease) in Cash and Cash Equivalents | (5,645) | 1,221 | (5,941) | (9,720) | (26,974) |
Cash and Cash Equivalents, Beginning of Period | 22,559 | 22,559 | 22,559 | 22,559 | 49,533 |
Cash and Cash Equivalents, End of Period | 16,914 | 23,780 | 16,618 | 12,839 | 22,559 |
Bill and Hold | |||||
Cash Flows from Operating Activities: | |||||
Net loss | (566) | 220 | 809 | ||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation and amortization | (10) | (23) | (36) | ||
Provision for sales returns | (81) | ||||
Bad debt expense (recovery) | 200 | ||||
Changes in operating assets and liabilities: | |||||
Accounts receivable | 926 | (4,502) | (5,481) | ||
Inventories | 924 | (278) | 1,545 | ||
Accounts payable and accrued expenses | 265 | 265 | 265 | ||
Deferred revenue | (1,662) | 3,931 | 2,122 | ||
Net cash used in operating activities | (123) | (387) | (657) | ||
Cash Flows from Financing Activities: | |||||
Repayment of notes payable and lease obligations | 123 | 387 | 657 | ||
Net cash provided by financing activities | 123 | 387 | 657 | ||
FPP Contracts | |||||
Cash Flows from Operating Activities: | |||||
Net loss | (1,575) | (1,096) | (2,807) | ||
Changes in operating assets and liabilities: | |||||
Accounts receivable | 18 | 74 | 129 | ||
Factory protection plan liability | 1,557 | 1,022 | 2,678 | ||
Previously Reported | |||||
Cash Flows from Operating Activities: | |||||
Net loss | (2,059) | (6,977) | (12,191) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation and amortization | 661 | 1,493 | 2,345 | ||
Amortization of financing costs and discounts | 43 | 51 | 60 | ||
Amortization of right-of-use assets | 151 | 475 | 848 | ||
Inventory provision | 270 | 420 | 771 | ||
Provision for warranty expenses | 174 | 364 | 369 | ||
Provision for sales returns | 81 | ||||
Stock-based compensation | 232 | 386 | 617 | ||
Bad debt expense (recovery) | 75 | 237 | |||
Gain on disposal of equipment | 279 | ||||
Changes in operating assets and liabilities: | |||||
Accounts receivable | 653 | 6,504 | 9,077 | ||
Inventories | (746) | (4,353) | (9,080) | ||
Prepaid expenses, other current assets and other assets | (253) | (874) | (933) | ||
Accounts payable and accrued expenses | (3,112) | (1,667) | (276) | ||
Accrued salaries and wages and long-term liabilities | 212 | (23) | 274 | ||
Accrued warranty reserve | (130) | (185) | (312) | ||
Deferred revenue | 462 | 1,435 | 350 | ||
Net cash used in operating activities | (3,442) | (2,597) | (7,763) | ||
Cash Flows from Investing Activities: | |||||
Expenditures for property, plant, equipment and rental assets | (1,887) | (2,564) | (3,999) | ||
Net cash used in investing activities | (1,887) | (2,564) | (3,999) | ||
Cash Flows from Financing Activities: | |||||
Repayment of notes payable and lease obligations | (316) | (868) | (1,429) | ||
Cash used in employee stock-based transactions | (36) | (52) | (52) | ||
Net proceeds from issuance of common stock and warrants | 36 | 7,302 | 7,302 | ||
Net cash provided by financing activities | (316) | 6,382 | 5,821 | ||
Net (decrease) in Cash and Cash Equivalents | (5,645) | 1,221 | (5,941) | ||
Cash and Cash Equivalents, Beginning of Period | 22,559 | 22,559 | 22,559 | $ 22,559 | |
Cash and Cash Equivalents, End of Period | 16,914 | 23,780 | 16,618 | $ 22,559 | |
Classifications | |||||
Changes in operating assets and liabilities: | |||||
Accounts payable and accrued expenses | 179 | 531 | 931 | ||
Operating lease liability | $ (179) | $ (531) | $ (931) |
Subsequent Events (Details)
Subsequent Events (Details) | Dec. 07, 2023 USD ($) | Oct. 24, 2023 USD ($) | Oct. 02, 2023 USD ($) | Sep. 22, 2023 USD ($) | Aug. 16, 2023 USD ($) | Jul. 06, 2023 USD ($) item | Oct. 01, 2020 USD ($) | Nov. 30, 2023 USD ($) shares | Oct. 03, 2023 USD ($) | Mar. 31, 2023 USD ($) | Mar. 13, 2023 USD ($) | May 12, 2021 USD ($) | May 11, 2021 USD ($) |
Subsequent Events | |||||||||||||
Term of loan | 3 years | ||||||||||||
Increase in DIP new money notes | $ 7,000,000 | ||||||||||||
Term Note Payable, Amended and Restated Note Purchase Agreement | Senior Notes | |||||||||||||
Subsequent Events | |||||||||||||
Debt instrument, covenants, minimum consolidated liquidity | $ 9,000,000 | $ 9,000,000 | $ 12,200,000 | $ 9,000,000 | |||||||||
Proceeds from Issuance of Debt | $ 20,000,000 | ||||||||||||
Variable interest rate basis spread (as a percent) | 8.75% | ||||||||||||
Subsequent Event | |||||||||||||
Subsequent Events | |||||||||||||
Percentage of common equity received by pre-petition holders | 100% | ||||||||||||
Percentage of reorganized private company equity owned by pre-petition senior secured lender | 100% | ||||||||||||
Amount of petition claims | $ 35,000,000 | ||||||||||||
Amount of DIP claim | $ 10,000,000 | ||||||||||||
Maximum awards granted during a fiscal year per participant | $ 300,000 | ||||||||||||
Subsequent Event | 2023 Equity Incentive Plan | |||||||||||||
Subsequent Events | |||||||||||||
Number of shares available for future grant (in shares) | shares | 3,000,000 | ||||||||||||
Subsequent Event | Subsidiaries [Member] | |||||||||||||
Subsequent Events | |||||||||||||
Percentage of common equity issued to public entity | 100% | ||||||||||||
Percentage of preferred equity held by reorganized private entity | 100% | ||||||||||||
Percentage of common equity that can be converted to from preferred equity | 37.50% | ||||||||||||
Percentage of equity of new subsidiary subject to dilution | 62.5 | ||||||||||||
Subsequent Event | Term Note Payable, Amended and Restated Note Purchase Agreement | Senior Notes | |||||||||||||
Subsequent Events | |||||||||||||
Aggregate principal amount | $ 50,000,000 | ||||||||||||
Fee payable on principal balance (as percentage) | 1% | ||||||||||||
Debt Instrument commencement period of interest payment | 30 days | 30 days | |||||||||||
Debt instrument, covenants, minimum consolidated liquidity | $ 3,500,000 | ||||||||||||
Number of designated board observer to attend board meetings | item | 1 | ||||||||||||
Commencement period of transaction support agreement | 30 days | ||||||||||||
Satisfactory term of collateral agent | 30 days | 45 days | |||||||||||
Term of payment of professional fees | 30 days | ||||||||||||
Professional fee payable | $ 2,000,000 | ||||||||||||
Proceeds from Issuance of Debt | $ 3,000,000 | ||||||||||||
Variable interest rate basis spread (as a percent) | 8.75% | ||||||||||||
Subsequent Event | Term Note Payable, Amended and Restated Note Purchase Agreement | Senior Notes | Scenario One [Member] | |||||||||||||
Subsequent Events | |||||||||||||
Debt instrument, covenants, minimum consolidated liquidity | 4,000,000 | ||||||||||||
Subsequent Event | Term Note Payable, Amended and Restated Note Purchase Agreement | Senior Notes | Scenario Two [Member] | |||||||||||||
Subsequent Events | |||||||||||||
Debt instrument, covenants, minimum consolidated liquidity | 4,500,000 | ||||||||||||
Subsequent Event | Term Note Payable, Amended and Restated Note Purchase Agreement | Senior Notes | Scenario Three [Member] | |||||||||||||
Subsequent Events | |||||||||||||
Debt instrument, covenants, minimum consolidated liquidity | $ 6,000,000 | ||||||||||||
Subsequent Event | DIP Note Purchase Agreement | |||||||||||||
Subsequent Events | |||||||||||||
Aggregate principal amount | $ 3,000,000 | ||||||||||||
Amount of new money DIP notes | 12,000,000 | ||||||||||||
DIP note, borrowing outstanding | $ 18,000,000 | ||||||||||||
DIP Note, initial drawing amount | $ 3,000,000 | $ 9,000,000 | |||||||||||
Subsequent Event | Exit Financing | |||||||||||||
Subsequent Events | |||||||||||||
Aggregate principal amount | $ 27,000,000 | ||||||||||||
Amount of new money DIP notes | 5,000,000 | ||||||||||||
Subsequent Event | Roll-up of Secured Obligations | |||||||||||||
Subsequent Events | |||||||||||||
DIP note, borrowing outstanding | 8,000,000 | ||||||||||||
Subsequent Event | Roll-up of DIP new Money Notes | |||||||||||||
Subsequent Events | |||||||||||||
DIP note, borrowing outstanding | $ 12,000,000 | ||||||||||||
Term of loan | 2 years | ||||||||||||
Subsequent Event | New Money Notes | |||||||||||||
Subsequent Events | |||||||||||||
Amount of new money DIP notes | $ 7,000,000 | ||||||||||||
Subsequent Event | Original Exit Financing | |||||||||||||
Subsequent Events | |||||||||||||
Aggregate principal amount | $ 25,000,000 |