P10 Industries (PIOE) 10-Q 3 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 21, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	ACTIVE POWER INC
Entity Central Index Key	1,044,435
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		23,114,059

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 8,629	$ 12,260
Restricted cash	37	36
Accounts receivable, net of allowance for doubtful accounts of $37 and $70 at September 30, 2016 and December 31, 2015, respectively	4,963	8,849
Inventories, net	7,266	6,466
Prepaid expenses and other	601	792
Total current assets	21,496	28,403
Property and equipment, net	1,301	1,914
Deposits and other	267	278
Total assets	23,064	30,595
Current liabilities:
Accounts payable	1,726	2,852
Accrued expenses	3,753	4,494
Deferred revenue	4,580	3,576
Revolving line of credit	5,535	5,535
Total current liabilities	15,594	16,457
Long-term liabilities	357	583
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; 23,177 and 23,171 shares issued and 23,114 and 23,109 shares outstanding at September 30, 2016 and December 31, 2015, respectively	23	23
Treasury stock	(241)	(240)
Additional paid-in capital	305,045	304,094
Accumulated deficit	(297,678)	(290,454)
Other accumulated comprehensive income	(36)	132
Total stockholders’ equity	7,113	13,555
Total liabilities and stockholders’ equity	$ 23,064	$ 30,595

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current Assets:
Accounts receivable, allowance for doubtful accounts	$ 37	$ 70
Stockholders’ equity:
Preferred stock, par value (in usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (shares)	2,000,000	2,000,000
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (shares)	40,000,000	40,000,000
Common stock, shares issued (shares)	23,177,000	23,171,000
Common stock, shares outstanding (shares)	23,114,000	23,109,000

Condensed Consolidated Statemen

Condensed Consolidated Statement of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Product revenue	$ 7,036	$ 11,168	$ 17,690	$ 33,621
Service and other revenue	3,154	3,744	8,895	11,275
Total revenue	10,190	14,912	26,585	44,896
Cost of goods sold:
Cost of product revenue	5,317	8,496	14,626	24,556
Cost of service and other revenue	1,796	2,492	5,289	6,611
Total cost of goods sold	7,113	10,988	19,915	31,167
Gross profit	3,077	3,924	6,670	13,729
Operating expenses:
Research and development	1,094	1,448	3,405	4,394
Selling and marketing	1,782	2,636	5,996	8,057
General and administrative	1,470	1,468	4,214	4,550
Total operating expenses	4,346	5,552	13,615	17,001
Loss from operations	(1,269)	(1,628)	(6,945)	(3,272)
Interest expense	(85)	(95)	(255)	(252)
Other income (expense), net	22	(13)	(24)	(29)
Net loss	$ (1,332)	$ (1,736)	$ (7,224)	$ (3,553)
Net loss per share, basic and diluted (in usd per share)	$ (0.06)	$ (0.08)	$ (0.31)	$ (0.15)
Shares used in computing net loss per share, basic and diluted	23,144	23,135	23,141	23,132
Comprehensive loss:
Net loss	$ (1,332)	$ (1,736)	$ (7,224)	$ (3,553)
Translation loss on subsidiaries denominated in foreign currencies	(58)	(65)	(168)	(132)
Comprehensive loss	$ (1,390)	$ (1,801)	$ (7,392)	$ (3,685)

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Equity - 9 months ended Sep. 30, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Deficit	Other Accumulated Comprehensive Income (Loss)
Balance at Dec. 31, 2015	$ 13,555	$ 23	$ (240)	$ 304,094	$ (290,454)	$ 132
Balance (in shares) at Dec. 31, 2015		23,171	62
Increase (Decrease) in Stockholders' Equity
Release of restricted stock	0
Release of restricted stock (in shares)		6
Shares held in treasury	(1)		$ (1)
Shares held in treasury (in shares)			1
Net translation loss on foreign subsidiaries	(168)					(168)
Stock-based compensation	951			951
Net loss	(7,224)				(7,224)
Balance at Sep. 30, 2016	$ 7,113	$ 23	$ (241)	$ 305,045	$ (297,678)	$ (36)
Balance (in shares) at Sep. 30, 2016		23,177	63

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities
Net loss	$ (7,224)	$ (3,553)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation expense	596	763
Net change to allowance for doubtful accounts	(33)	(103)
Loss on disposal of fixed assets	8	0
Stock-based compensation	943	1,043
Changes in operating assets and liabilities:
Restricted cash	(1)	3
Accounts receivable	3,919	(2,738)
Inventories	(692)	(1,193)
Prepaid expenses and other assets	202	373
Accounts payable	(1,126)	1,075
Accrued expenses	(741)	196
Deferred revenue	1,005	907
Long term liabilities	(225)	(191)
Net cash used in operating activities	(3,369)	(3,418)
Investing activities
Purchases of property and equipment	(115)	(679)
Net cash used in investing activities	(115)	(679)
Financing activities
Taxes paid related to net share settlement of equity awards	(1)	(8)
Net cash used in financing activities	(1)	(8)
Effects of exchange rates on cash	(146)	(104)
Change in cash and cash equivalents	(3,631)	(4,209)
Cash and cash equivalents, beginning of period	12,260	14,824
Cash and cash equivalents, end of period	$ 8,629	$ 10,615

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
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. In the third quarter of 2016, 97% of our product revenue came from the sale of UPS systems and 3% from the sale of MIS products. 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, the 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. We currently do not expect to able to meet our liquidity needs over the next 12 months. Our current projections show that we have risk of not generating sufficient cash flow to support operations within the next 12 months. As of September 30, 2016, we had limited financial resources and were using significant cash in our operations. These factors raise substantial doubt about our ability to continue as a going concern. Our ability to achieve profitability and positive cash flow would be dependent on higher bookings and revenue than we have been able to achieve to date. As the result of this uncertainty regarding our ability to continue as a going concern, on September 29, 2016 as part of a strategic decision we entered into an asset purchase agreement with Langley Holdings plc, a United Kingdom public limited company (“Langley”), and Piller USA, Inc., a wholly owned subsidiary of Langley. If the acquisition is completed, Piller USA will acquire substantially all of the assets of Active Power for the purchase price of $1.00 in cash and the assumption of substantially all of Active Power’s liabilities. Such liabilities include all lease obligations in excess of $3.3 million . The obligations are in addition to the $16.0 million of balance sheet liabilities, of Active Power, and Active Power will retain (i) certain patent rights, (ii) its tax assets, and (iii) cash in an amount equal to the excess, if any, of the net assets of Active Power acquired by Piller USA over $5.0 million. We expect that the closing under this asset purchase agreement will occur during the fourth quarter of 2016. If the acquisition is completed as expected, Active Power would incur a loss on disposal of approximately $5.0 million in the fourth quarter of 2016. We have reviewed the held for sale criteria along with the discontinued operations requirements as part of ASU 2014-08 Topic 205 and 360. The initial criteria for classification of held for sale are as follows (205-20-45-1E): a. Management having the authority to approve the action commits to a plan to sell the entity to be sold; b. The entity to be sold is available for immediate sale in its present condition subject to terms that are usual and customary for sales of such entities; c. An active program to locate a buyer or buyers and other actions required to complete the plan to sell the entity to be sold has been initiated; d. The sale of the entity to be sold is probable and transfer of the entity to be sold is expected to be completed within one year; e. Entity to be sold is being actively marketed for sale at a price that is reasonable in relation to its current fair value; f. Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Although the contemplated sale meets criteria b through f, it does not meet the first criteria to qualify as a held for sale because management must obtain stockholder approval for this transaction to be completed. A special meeting of stockholders will be held on November 16, 2016 seeking approval for the sale. We also evaluated this transaction to determine whether this sale falls under the requirements for discontinued operations and all the disclosures required. A component or a group of components of an entity are required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: a. The component of an entity or group of components of an entity meets the criteria in paragraphs 205-20-45-1E to be classified as held for sale; b. The component of an entity or group of components of an entity is disposed of by sale; or c. The component of an entity or group of components of an entity is disposed of other than by sale in accordance with paragraph 360-10-45-15 (for example, by abandonment or in distribution to owners in a spinoff). We do not believe that this transaction meets the above criteria as this transaction does not qualify as held for sale, mainly because management does not have the authority to approve this transaction without stockholder approval. After the closing of the pending sale, which is subject to stockholder approval, we will transition our business model to monetize the retained intellectual property assets, and to acquire profitable businesses. We are in active negotiations with several parties to provide additional funding or contribute such businesses to support this business strategy. No adjustments have been made in the accompanying condensed consolidated financial statements to the amounts and classification of assets and liabilities which could result should we be unable to continue as a going concern. The accompanying condensed consolidated balance sheet as of December 31, 2015 , which has been derived from our audited financial statements, and the unaudited condensed consolidated financial statements as of September 30, 2016 , 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 Active Power 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 US GAAP 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 Active Power 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, 2015 .

Significant Accounting Policies

Significant Accounting Policies and Supplemental Balance Sheet Information	9 Months Ended
	Sep. 30, 2016
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, 2015 . Shown below are certain of our principal accounting policies. Restricted Cash Our restricted cash balance of $37,000 as of September 30, 2016 , 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 and a $31,000 performance guarantee to a customer that was secured with a letter of credit, which expires in June 2017 . As of December 31, 2015 , our restricted cash balance was $36,000 , which consisted of secured performance and deposit guarantees. Receivables Accounts receivable consist of the following (in thousands): September 30, 2016 December 31, 2015 Trade receivables $ 5,000 $ 8,919 Less: Allowance for doubtful accounts (37 ) (70 ) $ 4,963 $ 8,849 We estimate an allowance for doubtful accounts based on factors related to the credit risk of each customer. Historically, credit losses have been minimal, primarily because the majority of our revenues were generated from large customers, such as Caterpillar, Inc. (“Caterpillar”). 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 may have agreements with certain larger customers and certain distributors that allow for more extended terms at or above net 60 days. Inventories, net Inventories are stated at the lower of cost or market, using the first-in-first-out method, and consist of the following (in thousands, net of allowances of $0.8 million at both September 30, 2016 and December 31, 2015 , respectively): September 30, 2016 December 31, 2015 Raw materials $ 4,566 $ 4,748 Work in process 2,188 1,425 Finished goods 512 293 $ 7,266 $ 6,466 Property and Equipment Long-Lived Assets Accrued Expenses Accrued expenses consist of the following (in thousands): September 30, 2016 December 31, 2015 Compensation, severance and benefits $ 794 $ 727 Management incentive bonus 1,074 1,282 Warranty liability 323 531 Taxes, other than income 373 518 Professional fees 327 441 Deferred Rent and other 862 995 $ 3,753 $ 4,494 Warranty Liability Generally, the warranty period for our 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, whichever period is shorter. 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, 2015 $ 572 Warranty expense 33 Payments (258 ) Balance at September 30, 2016 $ 347 Warranty liability included in accrued expenses $ 323 Warranty liability included in long-term liabilities 24 Balance at September 30, 2016 $ 347 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 pass on delivery to the common carrier. Our customers and distributors do not have the right to return products. We may enter into bill-and-hold arrangements and when this occurs physical delivery may not be present, but other criteria are reviewed to determine proper timing of revenue recognition. There were no bill and hold transactions in 2015 and 2016. • 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 or services: 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. 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 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 relative selling 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 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, (“ASU 2016-15”), Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This amendment eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU 2016-15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be prospectively as of the earliest date practicable. We are evaluating the new guidance to determine the impact that adopting this new accounting standard will have on our consolidated financial statements and footnote disclosures. ASU 2016-15 if Effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early application is permitted, including adoption in an interim period. In March 2016, the FASB issued ASU No. 2016-09, (“ASU 2016-09”), Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update simplify several aspects of the accounting for share-based payment award transactions including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. For public entities, ASU 2016-09 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We do not expect the adoption of this standard will have a material effect on our consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, (“ASU 2016-02”), Leases (Topic 842). The amendments in this update require lessees to recognize a lease liability measured on a discounted basis and a right-of-use asset for all leases at the commencement date. For public entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, and is to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. 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. In November 2015, the FASB issued ASU No. 2015-17, (“ASU 2015-17”), Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The amendments in this update simplify the presentation of deferred income taxes and require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This update applies to all entities that present a classified statement of financial position. These amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. If the guidance is applied prospectively, disclosure is made in the first interim and first annual period of change, the nature of and reason for the change in accounting principle and a statement that prior periods were not retrospectively adjusted. If the guidance is applied retrospectively, disclosure is made in the first interim and first annual period of change, the nature of and reason for the change in accounting principle and quantitative information about the effects of the accounting change on prior periods. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We do not expect the adoption of this standard will have a material effect on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, (“ASU 2015-11”), Inventory (Topic 330): Simplifying the Measurement of Inventory. ASU 2015-11 requires an entity to measure in scope inventory at the lower of cost and net realizable value. The amendment does not apply to inventory that is measured using the last-in, first-out or the retail inventory method. For public entities, ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, and is to be applied prospectively. We do not expect the adoption of this standard will have a material effect on our consolidated financial statements. In August 2014, the FASB issued 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. This will have an impact to future filings and disclosures going forward. In May 2014, the FASB issued ASU No. 2014-09, (“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. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which defers the effective date of its new revenue recognition standard by one year. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations by amending certain existing illustrative examples and adding additional illustrative examples. In April 2016, the FASB issued ASU No. 2016-10, (“ASU 2016-10”) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which adds further guidance on identifying performance obligations and improves the operability and understanding of the licensing implementation guidance. In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, which rescinds SEC paragraphs pursuant to the SEC Staff Announcement, “Rescission of Certain SEC Staff Observer Comments upon Adoption of Topic 606,” and the SEC Staff Announcement, “Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or Equity”. The FASB also issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which addresses narrow-scope improvements to the guidance on collectability, noncash consideration, and completed contracts at transition. Additionally, the amendments in this update provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. We will adopt this guidance beginning January 1, 2018. We are evaluating the new guidelines to determine 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	9 Months Ended
	Sep. 30, 2016
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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net loss $ (1,332 ) $ (1,736 ) $ (7,224 ) $ (3,553 ) Basic and dilutive: Weighted-average shares of common stock outstanding used in computing basic and diluted net loss per share 23,144 23,135 23,141 23,132 Basic and diluted net loss per share $ (0.06 ) $ (0.08 ) $ (0.31 ) $ (0.15 ) The calculation of diluted loss per share excludes 3,174,195 and 3,296,829 shares of common stock issuable upon exercise of employee stock options for the nine months ended September 30, 2016 and 2015 , respectively, and non-vested shares of restricted stock units issuable upon vesting of 410,200 and 10,413 shares for the nine months ended September 30, 2016 and 2015 , respectively, because their inclusion would be anti-dilutive.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2016
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 during the periods presented. As of December 31, 2015, our Level 1 assets consisted of cash equivalents, which were primarily invested in money-market funds. These assets were classified as Level 1 because they were valued using quoted prices in active markets and other relevant information generated by market transactions involving identical assets and liabilities. During the third quarter of 2016, we transferred the balance of our cash equivalents into cash held in our operating account. The fair value of our Level 1 assets was $0 and $3.1 million as of September 30, 2016 and December 31, 2015 , respectively. 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	9 Months Ended
	Sep. 30, 2016
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 September 30, 2016 , we had a $6,000 deposit guarantee for our building lease in Germany, which renews every six months through the term of the lease agreement and a $31,000 performance guarantee to a customer that was secured with a letter of credit, which expires in June 2017 . As of December 31, 2015 , our restricted cash balance was $36,000 , which consisted of secured performance and deposit guarantees. We do not believe that there is any reasonably foreseeable risk that we will not be able to meet the performance obligations. Our restricted cash, as shown on the balance sheet, is related to these guarantees.

Revolving Line of Credit

Revolving Line of Credit	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Revolving Line of Credit	Revolving Line of Credit Our Second Amended and Restated Loan and Security Agreement dated August 5, 2010 (as amended on March 5, 2012, August 15, 2012 and July 28, 2014, the “Loan Agreement”) with Silicon Valley Bank (“SVB”) gives us flexibility to help fund our business operations and manage our working capital requirements. The Loan Agreement provides for a secured revolving line of credit with a maturity date of August 5, 2017. Until that date, we may borrow an aggregate amount of up to eighty percent ( 80% ) of the facility amount of $18.8 million , or $15.0 million , subject to certain borrowing bases. We may also request that SVB issue up to $1.5 million of letters of credit on our behalf as a portion of the total facility amount. The facility allows us to borrow against our U.S., United Kingdom (“U.K.”) and German accounts receivables and also allows us to borrow against our eligible inventory and purchase orders. Purchase orders and eligible inventory are subject to a sublimit of $3.0 million and $4.0 million , respectively, and accounts receivable for U.K. and Germany have a $5.0 million sublimit. However, if we maintain our liquidity ratio at or above 2.50 :1.00 for the immediately preceding two reconciliation periods the sublimits will be uncapped. The liquidity ratio is defined as unrestricted cash, cash equivalents and marketable securities on which SVB has a perfected security interest, plus the aggregate amount of eligible accounts receivable accounts divided by all obligations we owe to SVB. The finance charge is 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, or (b) 1.20% for eligible accounts when we are not Borrowing Base Eligible. We are “Borrowing Base Eligible” when our liquidity ratio is equal to or greater than 1.75 :1.00 at all times for at least sixty consecutive days. The revolving 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 (“Active Power Limited”), our wholly-owned U.K. 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 Loan Agreement includes customary affirmative covenants for a credit facility of this size and type, including delivery of financial statements, compliance with laws, maintenance of insurance, and maintenance and protection of intellectual property rights. Further, the Loan Agreement contains customary negative covenants for a credit facility of this size and type, including covenants that limit or restrict our ability, among other things, to sell all or any part of our business, dispose of assets, change our business, change our CEO or CFO without replacing such person within 120 days, have a change in control, make acquisitions, merge or be acquired, incur indebtedness, grant liens, make investments, make distributions, repurchase stock, and enter into certain transactions with affiliates. The Loan Agreement contains customary events of default that include, among other things, non-payment defaults, covenant defaults, material adverse change defaults, insolvency defaults, material judgment defaults and inaccuracy of representations and warranty defaults. The financial covenant requires us to maintain a liquidity ratio equal to or greater than 1.25 :1.00. The occurrence of an event of default could result in the acceleration of obligations under the Loan Agreement, in which case we must repay all loans and related charges, fees and amounts then due and payable, and Active Power Limited may be required to pay any such amounts under the Guarantee and Debenture Agreement, dated August 5, 2010 between Active Power Limited and SVB. At the election of SVB, upon the occurrence and during the continuance of an event of default, finance charges or interest rates, as applicable, will increase an additional 5.00% per annum above the rate that is otherwise applicable thereto upon the occurrence of such event of default, and the collateral handling fees will increase by 0.50% . We are in compliance with the covenants and restrictions under the Loan Agreement as of the date of this report. If we fail to stay in compliance with our covenants or experience some other event of default, we may be forced to repay the outstanding borrowings under this credit facility. During 2012, we borrowed $5.5 million under the Loan Agreement based on our short term liquidity requirements, and have not borrowed any additional amounts after this initial borrowing. As of September 30, 2016 , we had outstanding borrowings of $5.5 million under this Loan Agreement. Based on the then current borrowing base formula, the additional amount available for our use at September 30, 2016 was $1.2 million . As of December 31, 2015 , our additional amount available to us was $5.9 million . For further information regarding this loan facility, refer to our Annual Report on Form 10-K for the year ended December 31, 2015 , and to our Current Report on Form 8-K filed on July 29, 2014. Pursuant to the asset purchase agreement we executed with Langley Holdings and Piller USA regarding the sale of our existing operations, at the closing our borrowings under the Loan Agreement will be repaid by Langley Holdings in full and the Loan Agreement will terminate.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
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 our business. We evaluated all potentially significant litigation, government investigations, claims or assessments in which we are involved and do not believe that any of these matters, individually or in the aggregate, will result in losses that are materially in excess of amounts already recognized, if any. 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 September 30, 2016 , were not material to the Consolidated Financial Statements. The following is a summary of the more significant legal matters involving the Company. SEC Inquiry As previously disclosed, by letter dated September 30, 2013, the SEC Division of Enforcement notified us that it was conducting an investigation regarding us, including matters relating to our public statements regarding Digital China Information Service Company Limited and our distribution relationships in China. On March 31, 2016, we received notification from the SEC that it had concluded its investigation and that no enforcement action had been recommended against us.

Shareholder Rights Plan

Shareholder Rights Plan	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Shareholder Rights Plan	Shareholder Rights Plan On June 15, 2016, our Board of Directors adopted a shareholder rights plan designed to protect our substantial net operating loss carryforwards from the effect of limitations imposed by federal and state tax rules following an ownership change. This plan was designed to deter an ownership change (as defined in IRC Section 382) from occurring, and therefore protect our ability to utilize our federal and state net operating loss carryforwards in the future. Our board of directors has established a procedure to consider requests to exempt the acquisition of our common stock from the rights agreement, if such acquisition would not limit or impair the availability of our net operating loss carryforwards. In connection with the adoption of the shareholder rights plan, our Board of Directors approved a Certificate of Designations of Series B Junior Participating Preferred Stock designating 50,000 shares of such preferred stock. On June 16, 2016, we filed the Certificate of Designations with the Secretary of State of the State of Delaware, and the Certificate of Designations became effective on such date. The shareholder rights plan will expire on the first day after our 2017 annual meeting of stockholders unless our stockholders ratify the plan prior to such date, in which case the term of the plan would be extended to three years . We are asking our stockholders to ratify the plan at the special meeting of stockholders we called for approval of the sale of substantially all of our assets to Piller USA at the special meeting of stockholders on November 16, 2016.

Significant Accounting Polici15

Significant Accounting Policies and Supplemental Balance Sheet Information (Policies)	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Restricted Cash	Restricted Cash Our restricted cash balance of $37,000 as of September 30, 2016 , 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 and a $31,000 performance guarantee to a customer that was secured with a letter of credit, which expires in June 2017 . As of December 31, 2015 , our restricted cash balance was $36,000 , which consisted 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, credit losses have been minimal, primarily because the majority of our revenues were generated from large customers, such as Caterpillar, Inc. (“Caterpillar”). 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 may 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 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 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, whichever period is shorter. 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 pass on delivery to the common carrier. Our customers and distributors do not have the right to return products. We may enter into bill-and-hold arrangements and when this occurs physical delivery may not be present, but other criteria are reviewed to determine proper timing of revenue recognition. There were no bill and hold transactions in 2015 and 2016. • 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 or services: 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. 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 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 relative selling 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 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, (“ASU 2016-15”), Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This amendment eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU 2016-15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be prospectively as of the earliest date practicable. We are evaluating the new guidance to determine the impact that adopting this new accounting standard will have on our consolidated financial statements and footnote disclosures. ASU 2016-15 if Effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early application is permitted, including adoption in an interim period. In March 2016, the FASB issued ASU No. 2016-09, (“ASU 2016-09”), Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update simplify several aspects of the accounting for share-based payment award transactions including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. For public entities, ASU 2016-09 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We do not expect the adoption of this standard will have a material effect on our consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, (“ASU 2016-02”), Leases (Topic 842). The amendments in this update require lessees to recognize a lease liability measured on a discounted basis and a right-of-use asset for all leases at the commencement date. For public entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, and is to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. 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. In November 2015, the FASB issued ASU No. 2015-17, (“ASU 2015-17”), Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The amendments in this update simplify the presentation of deferred income taxes and require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This update applies to all entities that present a classified statement of financial position. These amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. If the guidance is applied prospectively, disclosure is made in the first interim and first annual period of change, the nature of and reason for the change in accounting principle and a statement that prior periods were not retrospectively adjusted. If the guidance is applied retrospectively, disclosure is made in the first interim and first annual period of change, the nature of and reason for the change in accounting principle and quantitative information about the effects of the accounting change on prior periods. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We do not expect the adoption of this standard will have a material effect on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, (“ASU 2015-11”), Inventory (Topic 330): Simplifying the Measurement of Inventory. ASU 2015-11 requires an entity to measure in scope inventory at the lower of cost and net realizable value. The amendment does not apply to inventory that is measured using the last-in, first-out or the retail inventory method. For public entities, ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, and is to be applied prospectively. We do not expect the adoption of this standard will have a material effect on our consolidated financial statements. In August 2014, the FASB issued 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. This will have an impact to future filings and disclosures going forward. In May 2014, the FASB issued ASU No. 2014-09, (“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. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which defers the effective date of its new revenue recognition standard by one year. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations by amending certain existing illustrative examples and adding additional illustrative examples. In April 2016, the FASB issued ASU No. 2016-10, (“ASU 2016-10”) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which adds further guidance on identifying performance obligations and improves the operability and understanding of the licensing implementation guidance. In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, which rescinds SEC paragraphs pursuant to the SEC Staff Announcement, “Rescission of Certain SEC Staff Observer Comments upon Adoption of Topic 606,” and the SEC Staff Announcement, “Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or Equity”. The FASB also issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which addresses narrow-scope improvements to the guidance on collectability, noncash consideration, and completed contracts at transition. Additionally, the amendments in this update provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. We will adopt this guidance beginning January 1, 2018. We are evaluating the new guidelines to determine if they will have a significant impact on our consolidated results of operation, financial condition or cash flows.

Significant Accounting Polici16

Significant Accounting Policies and Supplemental Balance Sheet Information (Tables)	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivables	Accounts receivable consist of the following (in thousands): September 30, 2016 December 31, 2015 Trade receivables $ 5,000 $ 8,919 Less: Allowance for doubtful accounts (37 ) (70 ) $ 4,963 $ 8,849
Schedule of inventory	Inventories are stated at the lower of cost or market, using the first-in-first-out method, and consist of the following (in thousands, net of allowances of $0.8 million at both September 30, 2016 and December 31, 2015 , respectively): September 30, 2016 December 31, 2015 Raw materials $ 4,566 $ 4,748 Work in process 2,188 1,425 Finished goods 512 293 $ 7,266 $ 6,466
Schedule of accrued expenses	Accrued expenses consist of the following (in thousands): September 30, 2016 December 31, 2015 Compensation, severance and benefits $ 794 $ 727 Management incentive bonus 1,074 1,282 Warranty liability 323 531 Taxes, other than income 373 518 Professional fees 327 441 Deferred Rent and other 862 995 $ 3,753 $ 4,494
Changes in warranty liability	Changes in our warranty liability are as follows (in thousands): Balance at December 31, 2015 $ 572 Warranty expense 33 Payments (258 ) Balance at September 30, 2016 $ 347 Warranty liability included in accrued expenses $ 323 Warranty liability included in long-term liabilities 24 Balance at September 30, 2016 $ 347

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Computation of basic and diluted 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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net loss $ (1,332 ) $ (1,736 ) $ (7,224 ) $ (3,553 ) Basic and dilutive: Weighted-average shares of common stock outstanding used in computing basic and diluted net loss per share 23,144 23,135 23,141 23,132 Basic and diluted net loss per share $ (0.06 ) $ (0.08 ) $ (0.31 ) $ (0.15 )

Basis of Presentation - Product

Basis of Presentation - Products (Details) - Product Revenue	3 Months Ended
	Sep. 30, 2016
UPS Systems
Product Information [Line Items]
Product revenue, in percentage	97.00%
MIS Products
Product Information [Line Items]
Product revenue, in percentage	3.00%

Basis of Presentation - Asset P

Basis of Presentation - Asset Purchase Agreement (Details) - Subsequent Event - Forecast - Discontinued Operations	3 Months Ended
	Dec. 31, 2016USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase price	$ 1
Lease obligations (excess of)	3,300,000
Balance sheet liabilities	16,000,000
Net assets retained, benchmark	5,000,000
Loss on disposal	$ 5,000,000

Significant Accounting Polici20

Significant Accounting Policies and Supplemental Balance Sheet Information - Additional Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Restricted Cash
Restricted cash		$ 37	$ 36
Building lease, renewal term	6 months
Receivables
Trade receivables		5,000	8,919
Less: Allowance for doubtful accounts		(37)	(70)
Accounts receivable, net		4,963	8,849
Standard payment term	30 days
Extended payment term	60 days
Inventories, net
Allowances		800	800
Raw materials		4,566	4,748
Work in process		2,188	1,425
Finished goods		512	293
Inventories, net		7,266	6,466
Accrued Expenses
Compensation, severance and benefits		794	727
Management incentive bonus		1,074	1,282
Warranty liability		323	531
Taxes, other than income		373	518
Professional fees		327	441
Deferred Rent and other		862	995
Accrued expenses		3,753	4,494
Warranty Liability
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
Beginning balance	$ 572
Warranty expense	33
Payments	(258)
Ending balance	347
Warranty liability included in accrued expenses		323	531
Warranty liability included in long-term liabilities		24
Balance at period end	$ 572	347	$ 572
Performance Guarantee
Restricted Cash
Deposit guarantees outstanding for building lease		6
Performance Guarantee | Expires June 2017
Restricted Cash
Performance guarantee outstanding deposit for building lease		$ 31

Significant Accounting Polici21

Significant Accounting Policies and Supplemental Balance Sheet Information - Revenue Recognition (Details)	9 Months Ended
	Sep. 30, 2016product
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Commissioning and installation period	6 months
Minimum
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Number of CleanSource UPS or PowerHouse products included in significant MEAs	1
Number of second tier products included in significant MEAs	1
Maintenance agreements, consumables, repair, maintenance and consulting services general deliverable period	1 year
Maximum
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Maintenance agreements, consumables, repair, maintenance and consulting services general deliverable period	5 years

Net Loss Per Share (Details)

Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net loss	$ (1,332)	$ (1,736)	$ (7,224)	$ (3,553)
Basic and dilutive:
Weighted-average shares of common stock outstanding used in computing basic and diluted net loss per share (in shares)	23,144,000	23,135,000	23,141,000	23,132,000
Basic and diluted net loss per share (in usd per share)	$ (0.06)	$ (0.08)	$ (0.31)	$ (0.15)
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)			3,174,195	3,296,829
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)			410,200	10,413

Fair Value of Financial Instr23

Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money-market funds, fair value	$ 0	$ 3.1

Guarantees (Details)

Guarantees (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Guarantor Obligations [Line Items]
Building lease, renewal term	6 months
Performance Guarantee
Guarantor Obligations [Line Items]
Deposit guarantees outstanding for building lease	$ 6
Performance guarantees outstanding to customers		$ 36
Performance Guarantee | Expires June 2017
Guarantor Obligations [Line Items]
Performance guarantee outstanding deposit for fixed asset	$ 31

Revolving Line of Credit (Detai

Revolving Line of Credit (Details)	Jul. 28, 2014USD ($)reconciliation_period	Sep. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2012USD ($)
Revolving Line of Credit
Line of Credit Facility Inventory Borrowing Rates [Line Items]
Maximum borrowing capacity, percentage	80.00%
Maximum borrowing capacity	$ 18,800,000
Current borrowing capacity	15,000,000
Borrowing base sublimits, purchase orders	3,000,000
Borrowing base sublimits, inventory	$ 4,000,000
Liquidity ratio for reconciliation period	2.50
Number of reconciliation periods used to evaluate sublimits | reconciliation_period	2
Restrictive covenant, CEO or CFO replacement restriction, number of days	120 days
Minimum liquidity ratio requirement	1.25
Increase in rate on finance charges or interest rates as applicable, in event of default	5.00%
Increase in rate on collateral handling fees in event of default	0.50%
Line of credit facility outstanding		$ 5,500,000		$ 5,500,000
Line of credit facility, amount available for use		$ 1,200,000	$ 5,900,000
Revolving Line of Credit | Silicon Valley Bank
Line of Credit Facility Inventory Borrowing Rates [Line Items]
Liquidity ratio, borrowing base eligibility threshold	1.75
Liquidity ratio, borrowing base eligibility threshold, minimum evaluation period	60 days
Revolving Line of Credit | Silicon Valley Bank | Prime Rate
Line of Credit Facility Inventory Borrowing Rates [Line Items]
Minimum prime rate	4.00%
Revolving Line of Credit | Silicon Valley Bank | Minimum | Prime Rate
Line of Credit Facility Inventory Borrowing Rates [Line Items]
Basis spread on prime rate	0.50%
Revolving Line of Credit | Silicon Valley Bank | Maximum | Prime Rate
Line of Credit Facility Inventory Borrowing Rates [Line Items]
Basis spread on prime rate	1.20%
Revolving Line of Credit | U.K. and Germany
Line of Credit Facility Inventory Borrowing Rates [Line Items]
Borrowing base sublimits, accounts receivable	$ 5,000,000
Letter of Credit
Line of Credit Facility Inventory Borrowing Rates [Line Items]
Maximum borrowing capacity	$ 1,500,000

Shareholder Rights Plan (Detail

Shareholder Rights Plan (Details) - shares	Jun. 16, 2016	Sep. 30, 2016	Jun. 15, 2016	Dec. 31, 2015
Class of Stock [Line Items]
Preferred stock, number of shares designated		2,000,000		2,000,000
Shareholder rights plan, term extension if plan is ratified before expiration date	3 years
Series B Junior Participating Preferred Stock
Class of Stock [Line Items]
Preferred stock, number of shares designated			50,000