P10 Industries (PIOE) 10-Q 30 Apr 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 28, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	ACTIVE POWER INC
Entity Central Index Key	1044435
Current Fiscal Year End Date	-19
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE
Entity Common Stock, Shares Outstanding		23,106,403

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$11,727	$14,824
Restricted cash	538	40
Accounts receivable, net of allowance for doubtful accounts of $245 and $212 at March 31, 2015 and December 31, 2014, respectively	11,802	11,222
Inventories, net	7,397	6,845
Prepaid expenses and other	859	800
Total current assets	32,323	33,731
Property and equipment, net	1,891	2,076
Deposits and other	285	291
Total assets	34,499	36,098
Current liabilities:
Accounts payable	4,102	4,044
Accrued expenses	3,640	4,134
Deferred revenue	3,068	2,771
Revolving line of credit	5,535	5,535
Total current liabilities	16,345	16,484
Long-term liabilities	760	821
Commitments and contingencies
Stockholders' equity:
Preferred stock - $0.001 par value; 2,000 shares authorized	0	0
Common stock - $0.001 par value; 40,000 shares authorized; 23,165 and 23,162 shares issued and 23,106 and 23,094 shares outstanding at March 31, 2015 and December 31, 2014, respectively	23	23
Treasury stock	-234	-231
Additional paid-in capital	302,990	302,667
Accumulated deficit	-285,554	-283,995
Other accumulated comprehensive income	169	329
Total stockholders' equity	17,394	18,793
Total liabilities and stockholders' equity	$34,499	$36,098

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, except Share data, unless otherwise specified
Current assets:
Accounts receivable, allowance for doubtful accounts	$245	$212
Stockholders' equity:
Preferred Stock, par value (in dollars per share)	$0.00	$0.00
Preferred Stock, shares authorized (in shares)	2,000,000	2,000,000
Common Stock, par value (in dollars per share)	$0.00	$0.00
Common Stock, shares authorized (in shares)	40,000,000	40,000,000
Common Stock, shares issued (in shares)	23,165,000	23,162,000
Common Stock, shares outstanding (in shares)	23,106,000	23,094,000

Condensed_Consolidated_Stateme

Condensed Consolidated Statement of Operations and Comprehensive Loss (Unaudited) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Revenues:
Product revenue	$9,548	$7,457
Service and other revenue	3,581	3,481
Total revenue	13,129	10,938
Cost of goods sold:
Cost of product revenue	6,971	5,905
Cost of service and other revenue	1,851	2,105
Total cost of goods sold	8,822	8,010
Gross profit	4,307	2,928
Operating expenses:
Research and development	1,516	2,080
Selling and marketing	2,706	2,888
General and administrative	1,558	1,606
Total operating expenses	5,780	6,574
Loss from Operations	-1,473	-3,646
Interest expense, net	-79	-101
Other income (expense), net	-7	-127
Net loss	-1,559	-3,874
Net loss per share, basic and diluted (usd per share)	($0.07)	($0.19)
Shares used in computing net loss per share, basic and diluted (in shares)	23,130	20,574
Comprehensive loss:
Net loss	-1,559	-3,874
Translation loss on subsidiaries denominated in foreign currencies	-160	-2
Comprehensive loss	($1,719)	($3,876)

Condensed_Consolidated_Stateme1

Condensed Consolidated Statement of Stockholders' Equity (USD $)	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Deficit	Other Accumulated Comprehensive Income (Loss)
In Thousands, unless otherwise specified
Balance at Dec. 31, 2014	$18,793	$23	($231)	$302,667	($283,995)	$329
Balance (in shares) at Dec. 31, 2014		23,162	56
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Release of Restricted Stock	0	0	0	0	0	0
Release of Restricted Stock (in shares)		3	0
Shares held in treasury	-3	0	-3	0	0	0
Shares held in treasury (in shares)		0	2
Net translation gain on foreign subsidiaries	-160		0	0	0	-160
Stock-based compensation	323		0	323	0	0
Net loss	-1,559		0	0	-1,559	0
Balance at Mar. 31, 2015	$17,394	$23	($234)	$302,990	($285,554)	$169
Balance (in shares) at Mar. 31, 2015		23,165	58

Condensed_Consolidated_Stateme2

Condensed Consolidated Statement of Cash Flows (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Operating activities
Net loss	($1,559)	($3,874)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation expense	293	314
Net change to allowance for doubtful accounts	33	-52
Stock-based compensation	323	333
Changes in operating assets and liabilities:
Restricted cash	-498	0
Accounts receivable	-613	-271
Inventories	-552	-901
Prepaid expenses and other assets	-53	104
Accounts payable	58	1,434
Accrued expenses	-494	-1,053
Deferred revenue	297	-172
Long term liabilities	-61	5
Net cash used in operating activities	-2,826	-4,133
Investing activities
Purchases of property and equipment	-140	-56
Net cash used in investing activities	-140	-56
Financing activities
Proceeds from public offering of common stock, net of issuance costs	0	10,485
Proceeds from employee stock option exercises	0	108
Taxes paid related to net share settlement of equity awards	-3	-7
Net cash (used in) provided by financing activities	-3	10,586
Effects of exchange rates on cash	-128	-2
Change in cash and cash equivalents	-3,097	6,395
Cash and cash equivalents, beginning of period	14,824	12,261
Cash and cash equivalents, end of period	$11,727	$18,656

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation
	Active Power, Inc. and its subsidiaries (collectively, “we”, “us”, “Active Power” or “Company”) design, manufacture, sell, and service flywheel-based uninterruptible power supply (“UPS”) products that use kinetic energy to provide short-term power as a cleaner alternative to conventional electro-chemical battery-based energy storage.  We also design, manufacture, sell, and service modular infrastructure solutions (“MIS”) that integrate critical power components into a pre-packaged, purpose built enclosure that may include our UPS products as a component. Our products and solutions are based on our patented flywheel and power electronics technology and are designed to ensure continuity for data centers and other mission critical operations in the event of power disturbances.
	Our products and solutions are designed to deliver continuous conditioned power during power disturbances such as voltage sags and surges, and to provide ride-through power in the event of a brief utility failure, supporting operations until utility power is restored or a longer term alternative power source, such as a diesel generator, is started. We sell our products globally through our direct sales force, manufacturer’s representatives, distributors, original equipment manufacturers (“OEM”), and IT partners in the Americas, in Europe, Middle East, and Africa (“EMEA”), and in the Asia Pacific region (“APAC”).
	We also offer services, including hardware and software maintenance, on all Active Power products, and other professional services such as assessment and implementation, for our customers’ infrastructure projects.
	We were founded as a Texas Corporation in 1992 and reincorporated in Delaware in 2000. Our headquarters are in Austin, Texas, with international offices in the United Kingdom, Germany, and China.
	The accompanying condensed consolidated balance sheet as of December 31, 2014, which has been derived from our audited financial statements, and the unaudited condensed consolidated financial statements as of March 31, 2015 have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting, and include the accounts of the Company and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although we believe the disclosures made are adequate to make the information not misleading. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring items) necessary to present fairly the consolidated financial position of the Company and its consolidated results of operations and cash flows. These interim financial statements should be read in conjunction with the financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2014.

Significant_Accounting_Policie

Significant Accounting Policies and Supplemental Balance Sheet Information	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Significant Accounting Policies and Supplemental Balance Sheet Information	Significant Accounting Policies and Supplemental Balance Sheet Information
	For a complete description of our principal accounting policies see Note 1. “Summary of Significant Accounting Policies,” to our Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014.  Shown below are certain of our principal accounting policies.
	Restricted Cash
	Our restricted cash balance of $0.5 million as of March 31, 2015 consists of a $6,000 deposit guarantee for our building lease in Germany, which renews every six months through the term of the lease agreement, a $30,000 performance guarantee to a customer that was secured with a letter of credit, which expires in June 2017, and a $0.5 million performance guarantee to a customer that was secured with a letter of credit, which expires in July 2015. As of December 31, 2014, our restricted cash balance was $40,000 which consisted primarily of secured performance and deposit guarantees.
	Receivables
	Accounts receivable consist of the following (in thousands):
		March 31, 2015			December 31, 2014
	Trade receivables	$	12,047		$	11,434
	Less: Allowance for doubtful accounts	(245		)	(212		)
		$	11,802		$	11,222
	We estimate an allowance for doubtful accounts based on factors related to the credit risk of each customer. Historically, our credit losses have been minimal, primarily because the majority of our revenues were generated from large customers, such as Caterpillar, Inc. (“Caterpillar”) and Hewlett Packard Corporation (“HP”). We perform credit evaluations of new customers and when necessary we require deposits, prepayments or use of bank instruments such as trade letters of credit to mitigate our credit risk. We write off uncollectable trade receivables, and record any recoveries of previous write offs against the allowance. Our standard payment terms are net 30 days; however we have agreements with certain larger customers and certain distributors that allow for more extended terms at or above net 60 days.
	Inventories, net
	Inventories, net are stated at the lower of cost or market, using the first-in-first-out method, and consisted of the following (in thousands, net of allowance):
		March 31, 2015			December 31, 2014
	Raw materials	$	5,654		$	5,440
	Work in process	1,589			473
	Finished goods	154			932
		$	7,397		$	6,845
	Accrued Expenses
	Accrued expenses consist of the following (in thousands):
		March 31, 2015			December 31, 2014
	Compensation, severance and benefits	$	1,571		$	1,296
	Warranty liability	469			475
	Taxes, other than income	381			1,080
	Professional fees	357			463
	Other	862			820
		$	3,640		$	4,134
	Warranty Liability
	Generally, the warranty period for our power quality products is 12 months from the date of commissioning or 18 months from the date of shipment from Active Power, whichever period is shorter. Occasionally, we provide longer warranty periods to certain customers. The warranty period for products sold to our primary OEM customer, Caterpillar, is 12 months from the date of shipment to the end-user, or up to 36 months from shipment from Active Power. This is dependent upon Caterpillar complying with our storage requirements for our products in order to preserve this warranty period beyond the standard 18-month limit. We provide for the estimated cost of product warranties at the time revenue is recognized and this accrual is included in accrued expenses and long-term liabilities on the accompanying consolidated balance sheet.
	Changes in our warranty liability are as follows (in thousands):
	Balance at December 31, 2014	$	527
	Warranty expense	247
	Payments	(272		)
	Balance at March 31, 2015	$	502
	Warranty liability included in Accrued expenses	$	469
	Warranty liability included in Long-term liabilities	33
	Balance at March 31, 2015	$	502
	Revenue Recognition
	We recognize revenue when four criteria are met: (i) persuasive evidence that an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured. In general, revenue is recognized when revenue-generating transactions fall into one of the following categories of revenue recognition:
	•	We recognize product revenue at the time of shipment for a significant portion of all products sold directly to customers and through distributors because title and risk of loss typically pass on delivery to the common carrier. Our customers and distributors do not have the right to return products. If title and risk of loss pass at some other point in time, we recognize such revenue for our customers when the product is delivered to the customer and title and risk of loss have passed.  We may enter into bill-and-hold arrangements and when this happens delivery may not occur, but other criteria are reviewed to determine proper timing of revenue recognition.
	•	Unless performed under a maintenance contract, we recognize installation, service and maintenance revenue at the time the service is performed.
	•	We recognize revenue associated with maintenance agreements over the life of the contracts using the straight-line method, which approximates the expected timing in which applicable services are performed. Amounts collected in advance of revenue recognition are recorded as a current liability in the deferred revenue line of the consolidated balance sheet or as a long-term liability based on the time from the balance sheet date to the future date of revenue recognition.
	•	We recognize revenue on certain rental programs over the life of the rental agreements using the straight-line method. Amounts collected in advance of revenue recognition are recorded as a current or long-term liability based on the time from the balance sheet date to the future date of revenue recognition.
	When collectability is not reasonably assured, we defer revenue and will recognize revenue as payments are received.
	Multiple element arrangements (“MEAs”) are arrangements to sell products to customers that frequently include multiple deliverables. Our most significant MEAs include the sale of one or more of our CleanSource® UPS or CleanSource PowerHouse products, combined with one or more of the following products: design services, project management, commissioning and installation services, spare parts or consumables, and maintenance agreements. Delivery of the various products or performance of services within the arrangement may or may not coincide. Certain services related to design and consulting may occur prior to product delivery. Commissioning and installation typically take place within six months of product delivery, depending upon customer requirements. Maintenance agreements, consumables, and repair, maintenance or consulting services are generally delivered over a period of one to five years. In certain arrangements revenue recognized is limited to the amount invoiced or received that is not contingent on the delivery of future products and services.
	When arrangements include multiple elements, we allocate revenue to each element based on the relative selling price and recognize revenue when the elements have standalone value and the four criteria for revenue recognition have been met. We establish the selling price of each element based on Vendor Specific Objective Evidence (“VSOE”) if available, Third Party Evidence (“TPE”) if VSOE is not available, or best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. We generally determine selling price based on amounts charged separately for the delivered and undelivered elements to similar customers in standalone sales of the specific elements. When arrangements include a maintenance agreement, we recognize revenue related to the maintenance agreement at the stated contractual price on a straight-line basis over the life of the agreement.
	Any taxes imposed by governmental authorities on our revenue-producing transactions with customers are shown in our consolidated statements of operations on a net-basis; that is, excluded from our reported revenues.
	Recently issued accounting pronouncements not yet adopted
	In August 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, (“ASU 2014-15”), “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern”. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. We do not expect the adoption of this standard will have a material effect on our financial statements.
	In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”, “Topic 606”. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance, and creates a Topic 606 Revenue from Contracts with Customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We will adopt this guidance January 1, 2017. We are evaluating the new guidelines to see if they will have a significant impact on our consolidated results of operation, financial condition or cash flows.

Net_Loss_Per_Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share
	The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data):
		Three Months Ended March 31,
		2015			2014
	Net loss	$	(1,559	)	$	(3,874	)
	Basic and dilutive:
	Weighted-average shares of common stock outstanding used in computing basic and diluted net loss per share	23,130			20,574
	Basic and diluted net loss per share	$	(0.07	)	$	(0.19	)
	The calculation of diluted loss per share excludes 3,132,744 and 2,673,364 shares of common stock issuable upon exercise of employee stock options for the three months ended March 31, 2015 and 2014, respectively, and non-vested shares of common stock issuable upon exercise of 17,143 and 42,923 restricted stock units for the three months ended March 31, 2015 and 2014, respectively, because their inclusion would be anti-dilutive.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments
	Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to satisfy a liability in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy is established, which categorizes the inputs used in measuring fair value as follows:
	Level 1—Quoted prices in active markets for identical assets or liabilities.
	Level 2—Significant observable inputs other than quoted prices in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
	Level 3—One or more significant inputs that are unobservable and supported by little or no market data.
	Highest priority is given for Level 1 input and lower priority to Level 3 inputs. A financial instrument's level is based on the lowest level of any input that is significant to the fair value measurement. No changes were made to our methodology.
	Our Level 1 assets consist of cash equivalents, which are primarily invested in money-market funds. These assets are classified as Level 1 because they are valued using quoted prices in active markets and other relevant information generated by market transactions involving identical assets and liabilities. The fair value was $3.1 million as of March 31, 2015 and December 31, 2014.
	For cash and cash equivalents, accounts receivable, accounts payable and our revolving line of credit, the carrying amount approximates fair value because of the relative short maturity of those instruments.

Guarantees

Guarantees	3 Months Ended
	Mar. 31, 2015
Guarantees [Abstract]
Guarantees	Guarantees
	In certain geographical regions, particularly Europe, we are sometimes required to issue performance guarantees to our customers as a condition of sale. These guarantees usually provide financial protection to our customers in the event that we fail to fulfill our delivery or warranty obligations. We secure these guarantees with standby letters of credit through our bank. At March 31, 2015, we had a $6,000 deposit guarantee outstanding for our building lease in Germany which renews every six months through the term of the lease agreement, a $30,000 performance guarantee to a customer that was secured with a letter of credit, which expires in June 2017, and a $0.5 million performance guarantee to a customer that was secured with a letter of credit, which expires in July 2015. At December 31, 2014, our restricted cash balance was $40,000 which consisted primarily of secured performance and deposit guarantees. Our restricted cash, as shown on the balance sheet, is related to these guarantees.

Revolving_Line_of_Credit

Revolving Line of Credit	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
Revolving Line of Credit	Revolving Line of Credit
	On July 28, 2014, we entered into a Third Amended and Restated Loan and Security Agreement (“Loan Agreement”) with Silicon Valley Bank (“SVB”). This amended three-year loan facility provides for a secured revolving line of credit in an aggregate amount of up to eighty percent (80%) of the facility amount of $18.8 million, or $15.0 million, and increased our inventory and purchase order availability from $3.5 million to $7.0 million, subject to certain borrowing bases. Purchase orders and eligible inventory are subject to a sublimit of $4.0 million, and accounts receivable in the UK and Germany have a $5.0 million sublimit.  If we maintain our Liquidity Ratio of 2.50:1.00 for the immediately preceding Reconciliation Period, the sublimit will be uncapped. We are currently in compliance with all loan covenants under the Loan Agreement. Further, the Third Amendment extends the maturity date to August 5, 2017 and reduces the finance charge to a per annum rate equal to SVB's prime rate, subject to a minimum prime rate of 4.00%, plus (a) 0.50% for eligible accounts, inventory and purchase orders when we are Borrowing Base Eligible (as defined in the Loan Agreement), or (b) 1.20% for eligible accounts when we are not Borrowing Base Eligible.
	The loans made to us under the Loan Agreement are secured by a lien on substantially all of our assets, including the assets of Active Power Solutions Limited, our wholly-owned United Kingdom subsidiary, and the assets of Active Power (Germany) GmbH, our indirect wholly-owned German subsidiary.  The only direct or indirect subsidiaries of Active Power, Inc. that are not guarantors under the Loan Agreement are Active Power China (Beijing) Co. Ltd. and immaterial subsidiaries that are not operating companies.  There are no restrictions on the ability of any of the subsidiary guarantors to transfer funds to Active Power, Inc. in the form of loans, advances or dividends, except as provided by applicable law.
	The other key terms of the Loan Agreement remain unchanged, including customary affirmative covenants, a minimum liquidity ratio, the borrowing base eligibility (formerly called the “streamline ratio”), reporting requirements, and other terms and conditions. We are currently in compliance with all loan covenants under the loan facility. As of March 31, 2015, we had outstanding borrowings of $5.5 million under this loan facility and, based on the borrowing base formula, the additional amount available to us was $6.0 million at March 31, 2015. For further information regarding this loan facility, refer to our Annual Report on Form 10-K for the year ended December 31, 2014, and to our Current Report on Form 8-K filed on July 29, 2014.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies
	We may be involved, either as plaintiff or defendant, in a variety of ongoing claims, demands, suits, investigations, tax matters and proceedings that arise from time to time in the ordinary course of its business. In evaluating whether a contingency should be disclosed, the Company considers if there is at least a reasonable possibility that a loss or an additional loss may have been incurred, and either an accrual is not made because any of the conditions, or an exposure to loss exists in excess of the amount accrued. We evaluated all potentially significant litigation, government investigations, claims or assessments in which we are involved and determined there were no contingent losses, either accrued or reasonably possible of loss that could materially affect its results of operations, financial condition, or cash flows.
	We record an accrual with respect to a claim, suit, investigation or proceeding when it is reasonably probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Any recorded liabilities, including any changes to such liabilities for the quarter ended March 31, 2015, were not material to the Consolidated Financial Statements.
	The following is a summary of our more significant legal matters.
	SEC Inquiry
	By letter dated September 30, 2013, the SEC Division of Enforcement notified us that it is conducting an investigation regarding us, including matters relating to our public statements regarding Digital China Information Services Company Limited (“Digital China”) and our distribution relationships in China. We have been and intend to continue cooperating fully with the SEC. As of the date of this filing, we believe we have provided all requested material to the SEC.
	Stockholder Litigation
	Class action complaint
	On September 10, 2013, a purported class action complaint was filed in the United States District Court for the Western District of Texas against us and certain of our former executives. The case is captioned Don Lee v. Active Power, Inc., et. al. (Civil Action No. 1:13-cv-00797-SS). As amended, the complaint alleges that on February 19, 2013, we reported that we had begun working with an unnamed Chinese distributor partner, and that on April 30, 2013, we announced in press releases and conference calls that we had entered into a strategic distribution partnership with Digital China. However, on September 5, 2013, after the close of trading, we disclosed that our partnership was with Qiyuan Network System Limited, which is neither an affiliate nor a subsidiary of Digital China. The amended complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder, and seeks unspecified damages on behalf of all stockholders who purchased common stock between February 19 and September 5, 2013.  On March 7, 2014, we filed a motion to dismiss the class action complaint.  Our motion was denied by the Court on July 2, 2014.  On August 11, 2014, we filed an answer to the class action complaint, and on September 2, 2014, the Court declined to certify its order of July 2, 2014 for an interlocutory appeal to the United States Court of Appeals for the Fifth Circuit.
	On September 23, 2014, we reached an agreement in principle and entered into a memorandum of understanding to settle the class action complaint.  The parties to the class action signed a definitive settlement agreement on December 2, 2014, which was granted preliminary approval by the Court on January 7, 2015. The proposed settlement would resolve for all defendants all of the issues that are pending in the class action complaint.  If completed, the class action settlement would result in a payment of $1.5 million to the settlement class, inclusive of fees and expenses.  We anticipate that the total settlement amount and related expenses would be paid from insurance proceeds.  The proposed settlement is not yet consummated, and is subject to a number of conditions.  The proposed settlement is also subject to final approval by the Court at a hearing scheduled for May 15, 2015.
	Derivative actions
	On September 13, 2013 and October 14, 2013, two separate stockholders filed complaints in the District Court of Travis County, Texas, purporting to bring derivative actions on behalf of us against certain current and former officers and directors of the Company. The first derivative action is captioned Okumura v. Almgren, et. al. (Cause No. D-1-GN-13-003230), and the second derivative action is captioned Shaev v. Milner, et. al. (Cause No. D-1-GN-13-003557). The allegations of each derivative complaint mirror those of the class action complaint, and they assert claims for breach of fiduciary duty, unjust enrichment, and/or abuse of control and seek damages on our behalf.  These derivative actions were stayed by agreement pending resolution of the motion to dismiss the securities class action. The stay was lifted and on August 4, 2014, the parties filed a joint motion to consolidate the two derivative cases.  On September 18, 2014, the District Court appointed lead counsel in the consolidated derivative action.
	On September 23, 2014, we reached an agreement in principle and entered into a memorandum of understanding to settle the consolidated derivative actions.  The parties to the consolidated derivative actions signed a definitive settlement agreement on January 30, 2015, which was granted preliminary approval by the Court on March 10, 2015. The proposed settlement would resolve for all defendants all of the issues that are pending in the consolidated derivative actions.  The proposed consolidated derivative settlement includes, among other things, certain governance improvements by us. We anticipate that the settlement fees and related expenses would be paid entirely from insurance proceeds.  The proposed settlement is not yet consummated, and is subject to a number of conditions.  The proposed settlement is also subject to final approval by the Court at a hearing scheduled for May 12, 2015.

Significant_Accounting_Policie1

Significant Accounting Policies and Supplemental Balance Sheet Information - Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Restricted Cash	Restricted Cash
	Our restricted cash balance of $0.5 million as of March 31, 2015 consists of a $6,000 deposit guarantee for our building lease in Germany, which renews every six months through the term of the lease agreement, a $30,000 performance guarantee to a customer that was secured with a letter of credit, which expires in June 2017, and a $0.5 million performance guarantee to a customer that was secured with a letter of credit, which expires in July 2015. As of December 31, 2014, our restricted cash balance was $40,000 which consisted primarily of secured performance and deposit guarantees.
Receivables	We estimate an allowance for doubtful accounts based on factors related to the credit risk of each customer. Historically, our credit losses have been minimal, primarily because the majority of our revenues were generated from large customers, such as Caterpillar, Inc. (“Caterpillar”) and Hewlett Packard Corporation (“HP”). We perform credit evaluations of new customers and when necessary we require deposits, prepayments or use of bank instruments such as trade letters of credit to mitigate our credit risk. We write off uncollectable trade receivables, and record any recoveries of previous write offs against the allowance. Our standard payment terms are net 30 days; however we have agreements with certain larger customers and certain distributors that allow for more extended terms at or above net 60 days.
Inventories, net	Inventories, net
	Inventories, net are stated at the lower of cost or market, using the first-in-first-out method
Warranty Liability	Warranty Liability
	Generally, the warranty period for our power quality products is 12 months from the date of commissioning or 18 months from the date of shipment from Active Power, whichever period is shorter. Occasionally, we provide longer warranty periods to certain customers. The warranty period for products sold to our primary OEM customer, Caterpillar, is 12 months from the date of shipment to the end-user, or up to 36 months from shipment from Active Power. This is dependent upon Caterpillar complying with our storage requirements for our products in order to preserve this warranty period beyond the standard 18-month limit. We provide for the estimated cost of product warranties at the time revenue is recognized and this accrual is included in accrued expenses and long-term liabilities on the accompanying consolidated balance sheet.
Revenue Recognition	Revenue Recognition
	We recognize revenue when four criteria are met: (i) persuasive evidence that an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured. In general, revenue is recognized when revenue-generating transactions fall into one of the following categories of revenue recognition:
	•	We recognize product revenue at the time of shipment for a significant portion of all products sold directly to customers and through distributors because title and risk of loss typically pass on delivery to the common carrier. Our customers and distributors do not have the right to return products. If title and risk of loss pass at some other point in time, we recognize such revenue for our customers when the product is delivered to the customer and title and risk of loss have passed.  We may enter into bill-and-hold arrangements and when this happens delivery may not occur, but other criteria are reviewed to determine proper timing of revenue recognition.
	•	Unless performed under a maintenance contract, we recognize installation, service and maintenance revenue at the time the service is performed.
	•	We recognize revenue associated with maintenance agreements over the life of the contracts using the straight-line method, which approximates the expected timing in which applicable services are performed. Amounts collected in advance of revenue recognition are recorded as a current liability in the deferred revenue line of the consolidated balance sheet or as a long-term liability based on the time from the balance sheet date to the future date of revenue recognition.
	•	We recognize revenue on certain rental programs over the life of the rental agreements using the straight-line method. Amounts collected in advance of revenue recognition are recorded as a current or long-term liability based on the time from the balance sheet date to the future date of revenue recognition.
	When collectability is not reasonably assured, we defer revenue and will recognize revenue as payments are received.
	Multiple element arrangements (“MEAs”) are arrangements to sell products to customers that frequently include multiple deliverables. Our most significant MEAs include the sale of one or more of our CleanSource® UPS or CleanSource PowerHouse products, combined with one or more of the following products: design services, project management, commissioning and installation services, spare parts or consumables, and maintenance agreements. Delivery of the various products or performance of services within the arrangement may or may not coincide. Certain services related to design and consulting may occur prior to product delivery. Commissioning and installation typically take place within six months of product delivery, depending upon customer requirements. Maintenance agreements, consumables, and repair, maintenance or consulting services are generally delivered over a period of one to five years. In certain arrangements revenue recognized is limited to the amount invoiced or received that is not contingent on the delivery of future products and services.
	When arrangements include multiple elements, we allocate revenue to each element based on the relative selling price and recognize revenue when the elements have standalone value and the four criteria for revenue recognition have been met. We establish the selling price of each element based on Vendor Specific Objective Evidence (“VSOE”) if available, Third Party Evidence (“TPE”) if VSOE is not available, or best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. We generally determine selling price based on amounts charged separately for the delivered and undelivered elements to similar customers in standalone sales of the specific elements. When arrangements include a maintenance agreement, we recognize revenue related to the maintenance agreement at the stated contractual price on a straight-line basis over the life of the agreement.
	Any taxes imposed by governmental authorities on our revenue-producing transactions with customers are shown in our consolidated statements of operations on a net-basis; that is, excluded from our reported revenues.
Recently issued accounting pronouncements not yet adopted	Recently issued accounting pronouncements not yet adopted
	In August 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, (“ASU 2014-15”), “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern”. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. We do not expect the adoption of this standard will have a material effect on our financial statements.
	In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”, “Topic 606”. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance, and creates a Topic 606 Revenue from Contracts with Customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We will adopt this guidance January 1, 2017. We are evaluating the new guidelines to see if they will have a significant impact on our consolidated results of operation, financial condition or cash flows.

Significant_Accounting_Policie2

Significant Accounting Policies and Supplemental Balance Sheet Information (Tables)	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivables	Accounts receivable consist of the following (in thousands):
		March 31, 2015			December 31, 2014
	Trade receivables	$	12,047		$	11,434
	Less: Allowance for doubtful accounts	(245		)	(212		)
		$	11,802		$	11,222
Schedule of inventory	Inventories, net are stated at the lower of cost or market, using the first-in-first-out method, and consisted of the following (in thousands, net of allowance):
		March 31, 2015			December 31, 2014
	Raw materials	$	5,654		$	5,440
	Work in process	1,589			473
	Finished goods	154			932
		$	7,397		$	6,845
Accrued Expenses	Accrued expenses consist of the following (in thousands):
		March 31, 2015			December 31, 2014
	Compensation, severance and benefits	$	1,571		$	1,296
	Warranty liability	469			475
	Taxes, other than income	381			1,080
	Professional fees	357			463
	Other	862			820
		$	3,640		$	4,134
Changes in warranty liability	Changes in our warranty liability are as follows (in thousands):
	Balance at December 31, 2014	$	527
	Warranty expense	247
	Payments	(272		)
	Balance at March 31, 2015	$	502
	Warranty liability included in Accrued expenses	$	469
	Warranty liability included in Long-term liabilities	33
	Balance at March 31, 2015	$	502

Net_Loss_Per_Share_Tables

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Computation of basic and diluted net (income) loss per share	The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data):
		Three Months Ended March 31,
		2015			2014
	Net loss	$	(1,559	)	$	(3,874	)
	Basic and dilutive:
	Weighted-average shares of common stock outstanding used in computing basic and diluted net loss per share	23,130			20,574
	Basic and diluted net loss per share	$	(0.07	)	$	(0.19	)

Significant_Accounting_Policie3

Significant Accounting Policies and Supplemental Balance Sheet Information (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
	Product
	Criteria
Restricted Cash [Abstract]
Restricted cash	$538	$40
Receivables [Abstract]
Trade receivables	12,047	11,434
Less: Allowance for doubtful accounts	-245	-212
Accounts receivable, net	11,802	11,222
Inventory [Abstract]
Raw materials	5,654	5,440
Work in process	1,589	473
Finished goods	154	932
Inventories, net	7,397	6,845
Accrued Expenses [Abstract]
Compensation, severance and benefits	1,571	1,296
Warranty liability	469	475
Taxes, other than income	381	1,080
Professional fees	357	463
Other	862	820
Accrued expenses	3,640	4,134
Warranty Liability [Abstract]
Standard power quality products warranty period from date of commissioning	12 months
Standard power quality products warranty period from date of shipment	18 months
Standard products warranty period for primary OEM customer	12 months
Extended products warranty period from date of shipment to primary OEM customer, Maximum	36 months
Changes in warranty liability [Roll Forward]
Balance at December 31, 2014	527
Warranty expense	247
Payments	-272
Balance at March 31, 2015	502
Warranty liability	469	475
Long-term warranty liability	33
Balance at March 31, 2015	502
Revenue Recognition [Abstract]
Number of criteria to be met for revenue recognition	4
Minimum number of CleanSource UPS or PowerHouse products included in significant MEAs	1
Minimum number of second tier products included in significant MEAs	1
Commissioning and installation period	6 months
EMAs, consumables, repair, maintenance and consulting services general deliverable period, minimum	1 year
EMAs, consumables, repair, maintenance and consulting services general deliverable period, maximum	5 years
Performance Guarantee
Restricted Cash [Abstract]
Deposit guarantees outstanding for building lease	6
Performance Guarantee | Expires April 2015
Restricted Cash [Abstract]
Performance guarantee outstanding deposit for building lease	30
Performance Guarantee | Expires June 2017
Restricted Cash [Abstract]
Performance guarantee outstanding deposit for building lease	$500

Net_Loss_Per_Share_Details

Net Loss Per Share (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Net loss	($1,559)	($3,874)
Basic and dilutive: [Abstract]
Weighted-average shares of common stock outstanding (in shares)	23,130,000	20,574,000
Basic and diluted net loss per share (usd per share)	($0.07)	($0.19)
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock equivalents excluded from calculation because effect would have been anti-dilutive (in shares)	3,132,744	2,673,364
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock equivalents excluded from calculation because effect would have been anti-dilutive (in shares)	17,143	42,923

Fair_Value_of_Financial_Instru1

Fair Value of Financial Instruments (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Millions, unless otherwise specified
Fair Value Disclosures [Abstract]
Money-market funds for which the fair value was determined	$3.10	$3.10

Guarantees_Details

Guarantees (Details) (Performance Guarantee, USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Guarantor Obligations [Line Items]
Deposit guarantees outstanding for building lease	$6
Performance guarantees outstanding to customers		40
Expires April 2015
Guarantor Obligations [Line Items]
Performance guarantee outstanding deposit for fixed asset	30
Expires June 2017
Guarantor Obligations [Line Items]
Performance guarantee outstanding deposit for fixed asset	$500

Revolving_Line_of_Credit_Detai

Revolving Line of Credit (Details) (Revolving Line of Credit, USD $)	0 Months Ended	3 Months Ended
	Jul. 28, 2014	Mar. 31, 2015	Jul. 28, 2014	Jul. 27, 2014
Line of Credit Facility [Abstract]
Extension of loan facility term	3 years
Percentage of borrowing capacity	80.00%		80.00%
Maximum borrowing capacity				$18,750,000
Current borrowing capacity	15,000,000		15,000,000
Inventory and purchase order availability	7,000,000		7,000,000	3,500,000
Purchase orders and eligible inventory sublimit	4,000,000		4,000,000
Liquidity Ratio for immediate reconciliation period	2.5		2.5
Outstanding loan facility borrowings		5,500,000
Additional borrowing base		6,000,000
Silicon Valley Bank | Prime Rate
Line of Credit Facility [Abstract]
Minimum prime rate	4.00%
Silicon Valley Bank | Minimum | Prime Rate
Line of Credit Facility [Abstract]
Basis spread on prime rate	0.50%
Silicon Valley Bank | Maximum | Prime Rate
Line of Credit Facility [Abstract]
Basis spread on prime rate	1.20%
U.K. and Germany
Line of Credit Facility [Abstract]
Accounts receivable sublimit	$5,000,000		$5,000,000

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Cash settlement inclusive of fees and expenses	$1.50