P10 Industries (PIOE) 10-Q 31 Oct 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 29, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'ACTIVE POWER INC	'
Entity Central Index Key	'0001044435	'
Current Fiscal Year End Date	'--12-31	'
Entity Well-known Seasoned Issuer	'No	'
Entity Voluntary Filers	'No	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	23,091,237
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-14	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$13,804	$12,261
Restricted cash	42	520
Accounts receivable, net of allowance for doubtful accounts of $217 and $313 at September 30, 2014 and December 31, 2013, respectively	11,186	9,075
Inventories, net	8,964	12,020
Prepaid expenses and other	715	680
Total current assets	34,711	34,556
Property and equipment, net	2,333	3,056
Deposits and other	297	295
Total assets	37,341	37,907
Current liabilities:	'	'
Accounts payable	2,476	2,993
Accrued expenses	4,119	5,583
Deferred revenue	3,590	2,749
Revolving line of credit	5,535	5,535
Total current liabilities	15,720	16,860
Long-term liabilities	852	741
Stockholders' equity:	'	'
Preferred Stock - $0.001 par value; 2,000 shares authorized	0	0
Common stock - $0.001 par value; 40,000 and 30,000 shares authorized; 23,160 and 19,452 shares issued and 23,091 and 19,388 shares outstanding at September 30, 2014 and December 31, 2013, respectively	23	19
Treasury stock	-229	-215
Additional paid-in capital	302,325	290,964
Accumulated deficit	-281,951	-271,168
Other accumulated comprehensive income	601	706
Total stockholders' equity	20,769	20,306
Total liabilities and stockholders' equity	$37,341	$37,907

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, except Per Share data, unless otherwise specified
Current assets:	'	'
Accounts receivable, allowance for doubtful accounts	$217	$313
Stockholders' equity:	'	'
Preferred Stock, par value (in dollars per share)	$0.00	$0.00
Preferred Stock, shares authorized (in shares)	2,000	2,000
Common Stock, par value (in dollars per share)	$0.00	$0.00
Common Stock, shares authorized (in shares)	40,000	30,000
Common Stock, shares issued (in shares)	23,160	19,452
Common Stock, shares outstanding (in shares)	23,091	19,388

Condensed_Consolidated_Stateme

Condensed Consolidated Statement of Operations and Comprehensive Loss (Unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues:	'	'	'	'
Product revenue	$9,729	$8,023	$24,670	$34,858
Service and other revenue	2,963	5,131	9,114	12,915
Total revenue	12,692	13,154	33,784	47,773
Cost of goods sold:	'	'	'	'
Cost of product revenue	7,490	6,784	19,747	25,373
Cost of service and other revenue	1,442	2,426	5,434	7,180
Total cost of goods sold	8,932	9,210	25,181	32,553
Gross profit	3,760	3,944	8,603	15,220
Operating expenses:	'	'	'	'
Research and development	1,516	2,149	5,196	5,580
Selling and marketing	2,891	2,714	8,931	8,684
General and administrative	1,455	2,046	4,530	4,759
Total operating expenses	5,862	6,909	18,657	19,023
Loss from Operations	-2,102	-2,965	-10,054	-3,803
Interest expense, net	-94	-118	-301	-282
Other income (expense), net	-42	-52	-170	-139
Loss before income taxes	-2,238	-3,135	-10,525	-4,224
Income tax expense	-258	0	-258	0
Net loss	-2,496	-3,135	-10,783	-4,224
Net loss per share, basic and diluted (in dollars per share)	($0.11)	($0.16)	($0.48)	($0.22)
Shares used in computing net loss per share, basic and diluted (in shares)	23,124	19,337	22,271	19,188
Comprehensive loss:	'	'	'	'
Net loss	-2,496	-3,135	-10,783	-4,224
Translation gain (loss) on subsidiaries denominated in foreign currencies	-95	238	-75	39
Comprehensive loss	($2,591)	($2,897)	($10,858)	($4,185)

Condensed_Consolidated_Stateme1

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (USD $)	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Comprehensive Income (Loss) [Member]	Total
In Thousands, unless otherwise specified
Balance at Dec. 31, 2013	$19	($215)	$290,964	($271,168)	$706	$20,306
Balance (in shares) at Dec. 31, 2013	19,452	51	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'
Employee stock option exercises	0	0	129	0	0	129
Employee stock option exercises (in shares)	43	0	'	'	'	'
Release of Restricted Stock	0	0	0	0	0	0
Release of Restricted Stock (in shares)	14	0	'	'	'	'
Shares held in treasury	0	-14	0	0	0	-14
Shares held in treasury (in shares)	0	5	'	'	'	'
Net translation loss on foreign subsidiaries	0	0	0	0	-105	-105
Stock-based compensation	0	0	798	0	0	798
Sale of common stock, net of issuance costs	4	0	10,434	0	0	10,438
Sale of common stock, net of issuance costs (in shares)	3,651	0	'	'	'	'
Net Loss	0	0	0	-10,783	0	-10,783
Balance at Sep. 30, 2014	$23	($229)	$302,325	($281,951)	$601	$20,769
Balance (in shares) at Sep. 30, 2014	23,160	56	'	'	'	'

Condensed_Consolidated_Stateme2

Condensed Consolidated Statement of Cash Flows (Unaudited) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Operating activities	'	'
Net loss	($10,783)	($4,224)
Adjustments to reconcile net loss to cash (used in) provided by operating activites:	'	'
Depreciation expense	922	804
Change to allowance for doubtful accounts	-96	350
Loss (gain) on disposal of fixed assets	-15	33
Impairment on fixed assets	57	69
Stock-based compensation	798	916
Changes in operating assets and liabilities:	'	'
Restricted cash	478	-511
Accounts receivable	-2,014	8,799
Inventories	3,056	-2,613
Prepaid expenses and other assets	-37	-1,808
Accounts payable	-517	425
Accrued expenses	-1,464	174
Deferred revenue	841	-1,504
Long term liabilities	111	24
Net cash provided by (used in) operating activities	-8,663	934
Investing activities	'	'
Purchases of property and equipment	-291	-927
Proceeds from sale of fixed assets	19	68
Net cash used in investing activities	-272	-859
Financing activities	'	'
Proceeds from public offering of common stock, net of issuance costs	10,438	0
Proceeds from employee stock purchases	129	683
Issuance costs, shelf registration	0	-20
Taxes paid related to net share settlement of equity awards	-14	-49
Net cash provided by financing activities	10,553	614
Translation gain (loss) on subsidiaries in foreign currencies	-75	39
Change in cash and cash equivalents	1,543	728
Cash and cash equivalents, beginning of period	12,261	13,524
Cash and cash equivalents, end of period	$13,804	$14,252

Basis_of_Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2014
Basis of Presentation [Abstract]	'
Basis of Presentation	'
	1	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 Manufacturer (“OEM”) channel, 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, 2013, which has been derived from our audited financial statements, and the unaudited condensed consolidated financial statements 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. 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

Significant_Accounting_Policie

Significant Accounting Policies and Supplemental Balance Sheet Information	9 Months Ended
	Sep. 30, 2014
Significant Accounting Policies and Supplemental Balance Sheet Information [Abstract]	'
Significant Accounting Policies and Supplemental Balance Sheet Information	'
	2	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, 2013.  Shown below are certain of our principal accounting policies.
	Restricted Cash
	Our restricted cash balance of $42,000 as of September 30, 2014 consists of a $7,000 deposit guarantee for our building lease in the United Kingdom, which expired in October 2014 and a $35,000 performance guarantee outstanding for a term of 24 months to a customer that was secured with a letter of credit. As of December 31, 2013, our restricted cash balance was $0.5 million which consisted primarily of secured performance and deposit guarantees. As of the period ended September 30, 2014, all of these guarantees were satisfied.
	Receivables
	Accounts receivable consist of the following (in thousands):
			September 30,			December 31,
			2014			2013
	Trade receivables		$	11,403		$	9,388
	Less: Allowance for doubtful accounts			(217	)		(313	)
			$	11,186		$	9,075
	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”).
	Inventories
	Inventories consist of the following (in thousands, net of allowance):
			September 30,			December 31,
			2014			2013
	Raw materials		$	4,472		$	4,521
	Work in process			2,028			2,429
	Finished goods			2,464			5,070
			$	8,964		$	12,020
	Accrued Expenses
	Accrued expenses consist of the following (in thousands):
			September 30,			December 31,
			2014			2013
	Compensation, severance and benefits		$	1,563		$	2,685
	Warranty liability			346			529
	Property, Sales, Federal and VAT Taxes			1,077			483
	Professional fees			412			759
	Other			721			1,127
			$	4,119		$	5,583
	In September 2014, we settled a tax examination of our German subsidiary for years 2007 through 2011.  We recorded a provision for income taxes of $0.3 million in the quarter ended September 30, 2014 related to settlement of the German tax examination.
	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 offer 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 presented in the following table (in thousands):
	Balance at December 31, 2013		$	562
	Warranty expense			399
	Payments			(532	)
	Adjustments			(50	)
	Balance at September 30, 2014		$	379
	Warranty liability included in Accrued expenses		$	346
	Warranty liability included in Long-term liabilities			33
	Balance at September 30, 2014		$	379
	Revenue Recognition
	In general, 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. Our revenue-generating transactions generally 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. 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.
		●	We recognize installation, service and maintenance revenue at the time the service is performed.
		●	We recognize revenue associated with extended maintenance agreements (“EMAs”) 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 agreement 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.
		●	Shipping costs reimbursed by the customer are included in revenue.
	When collectability is not reasonably assured, we defer revenue and will recognize revenue on a cost recovery basis 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 EMAs. 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. EMAs, consumables, and repair, maintenance or consulting services generally are 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 an EMA, we recognize revenue related to the EMA 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. The Company does not expect that the adoption of this standard will have a material effect on its 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. The Company 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	9 Months Ended
	Sep. 30, 2014
Net Loss Per Share [Abstract]	'
Net Loss Per Share	'
	3	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						Nine Months Ended
			September 30,						September 30,
			2014			2013			2014			2013
	Net loss		$	(2,496	)	$	(3,135	)	$	(10,783	)	$	(4,224	)
	Basic and dilutive:
	Weighted-average shares of common stock oustanding			23,124			19,337			22,271			19,188
	Basic and diluted net loss per share		$	(0.11	)	$	(0.16	)	$	(0.48	)	$	(0.22	)
	The calculation of diluted loss per share excludes 2,361,866 and 1,943,064 shares of common stock issuable upon exercise of employee stock options for the nine months ended September 30, 2014 and 2013, respectively, and non-vested shares of common stock issuable upon exercise of 25,943 and 96,299 restricted stock units for the nine months ended September 30, 2014 and 2013, respectively, because their inclusion would be anti-dilutive.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2014
Fair Value of Financial Instruments [Abstract]	'
Fair Value of Financial Instruments	'
	4	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, fair value 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.
	Inputs are referred to as assumptions that market participants would use in pricing the asset or liability. The uses of inputs in the valuation process are categorized into a three-level fair value hierarchy.
	Our financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable and our revolving line of credit. We believe all of these financial instruments are recorded at amounts that approximate their current market values.
	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.
	Our cash and cash equivalents include money-market funds for which the fair value was determined using Level 1 inputs and was $3.1 million as of September 30, 2014 and December 31, 2013. For cash and cash equivalents, accounts receivable, and accounts payable, the carrying amount approximates fair value because of the relative short maturity of those instruments.

Guarantees

Guarantees	9 Months Ended
	Sep. 30, 2014
Guarantees [Abstract]	'
Guarantees	'
	5	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, 2014, we had a $7,000 deposit guarantee outstanding for our building lease in the United Kingdom which expired on October 24, 2014 and a $35,000 performance guarantee outstanding for a term of 24 months to a customer that was secured with a letter of credit. At December 31, 2013, we had a $0.5 million performance guarantee outstanding to a customer that was secured with a letter of credit. This guarantee expired on April 17, 2014. 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, 2014
Revolving Line of Credit [Abstract]	'
Revolving Line of Credit	'
	6	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 $18.75 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 UK accounts receivable 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.
	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. On July 28, 2014, Active Power (Germany) GmbH, a wholly-owned subsidiary of Active Power (Switzerland) AG, entered into a Borrower Joinder Supplement with Active Power and Silicon Valley Bank, under which Active Power (Germany) GmbH guaranteed all of the obligations of Active Power under the Loan Agreement and secured its obligations under the Loan Agreement with a security interest on substantially all of its assets.
	The other key terms of the Loan Agreement remain unchanged, including customary affirmative covenants, a minimum liquidity ratio, the borrowing base eligibility (formerly called “streamline ratio”), reporting requirements, and other terms and conditions. We are currently in compliance with all loan covenants under the loan facility. As of September 30, 2014, 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 for use ranged between $2.1 million and $5.6 million during the quarter. For further information regarding this loan facility, refer to our Annual Report on Form 10-K for the year ended December 31, 2013, and to our Current Report on Form 8-K filed on July 29, 2014.

Stockholders_Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2014
Stockholders' Equity [Abstract]	'
Stockholders' Equity	'
	7	Stockholders’ Equity
	On May 28, 2014, our stockholders approved an amendment to the Company’s Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 30 million shares to 40 million shares.
	In March 2014, we sold approximately 3.7 million shares of common stock at a purchase price of $3.15 per share in a public underwritten offering made under a shelf registration statement that we had filed with the SEC and that had been declared effective in June 2013. This offering resulted in proceeds, net of expenses including underwriting discounts, commissions and fees of $0.8 million and professional service expenses of $0.2 million, of approximately $10.4 million. The proceeds from this offering will be used by us to help fund our working capital requirements and for general corporate purposes.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies [Abstract]	'
Commitments and Contingencies	'
	8	Commitments and Contingencies
	The Company 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.  The Company evaluated all potentially significant litigation, government investigations, claims or assessments in which the Company is involved and determined there were no contingent losses, either accrued or reasonably possible of loss that could materially effect its results of operations, financial condition, or cash flows.
	The Company records 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, 2014, were not material to the Consolidated Financial Statements.
	The following is a summary of the more significant legal matters involving the Company.
	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.
	Audit Committee Internal Investigation
	The audit committee of our Board of Directors, with the assistance of independent counsel, conducted an investigation into the facts and circumstances surrounding our agreements and transactions with Qiyuan Network Systems Limited (“Qiyuan”), including the statements made regarding Qiyuan’s affiliation with Digital China. This investigation was completed in February 2014. The audit committee of our Board of Directors and the Company reviewed the results of the investigation and concluded that the investigation had not uncovered any relevant material information not disclosed in our various filings with the Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2013.
	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.
	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 in 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.
	Proposed settlements
	On September 23, 2014, we reached agreements in principle and entered into memorandums of understanding to settle both the class action complaint and the consolidated derivative actions.  The proposed settlements would resolve for all defendants all of the issues that are pending in the class action complaint and in the consolidated derivative actions.  If completed, the class action settlement would result in a payment of $1.5 million to the settlement class, inclusive of fees and expenses.  The proposed consolidated derivative settlement includes, among other things, certain governance improvements by us.  We anticipate that the total settlement amounts and related expenses would be paid from insurance proceeds.  The proposed settlements are not yet consummated, and are subject to a number of conditions. The terms outlined in the memorandums of understanding are subject to the parties concluding definitive settlement agreements. The proposed settlements are also subject to final approval by our insurance carrier and by the Courts following completion of a fairness hearing. Hearing dates have not yet been set on final approval of the proposed settlements.

Summary_of_Significant_Account

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2014
Significant Accounting Policies and Supplemental Balance Sheet Information [Abstract]	'
Restricted Cash	'
	Restricted Cash
	Our restricted cash balance of $42,000 as of September 30, 2014 consists of a $7,000 deposit guarantee for our building lease in the United Kingdom, which expired in October 2014 and a $35,000 performance guarantee outstanding for a term of 24 months to a customer that was secured with a letter of credit. As of December 31, 2013, our restricted cash balance was $0.5 million which consisted primarily of secured performance and deposit guarantees. As of the period ended September 30, 2014, all of these guarantees were satisfied.
Receivables	'
	Receivables
	Accounts receivable consist of the following (in thousands):
			September 30,			December 31,
			2014			2013
	Trade receivables		$	11,403		$	9,388
	Less: Allowance for doubtful accounts			(217	)		(313	)
			$	11,186		$	9,075
	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”).
Inventories	'
	Inventories
	Inventories consist of the following (in thousands, net of allowance):
			September 30,			December 31,
			2014			2013
	Raw materials		$	4,472		$	4,521
	Work in process			2,028			2,429
	Finished goods			2,464			5,070
			$	8,964		$	12,020
Accrued Expenses	'
	Accrued Expenses
	Accrued expenses consist of the following (in thousands):
			September 30,			December 31,
			2014			2013
	Compensation, severance and benefits		$	1,563		$	2,685
	Warranty liability			346			529
	Property, Sales, Federal and VAT Taxes			1,077			483
	Professional fees			412			759
	Other			721			1,127
			$	4,119		$	5,583
	In September 2014, we settled a tax examination of our German subsidiary for years 2007 through 2011.  We recorded a provision for income taxes of $0.3 million in the quarter ended September 30, 2014 related to settlement of the German tax examination.
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 offer 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 presented in the following table (in thousands):
	Balance at December 31, 2013		$	562
	Warranty expense			399
	Payments			(532	)
	Adjustments			(50	)
	Balance at September 30, 2014		$	379
	Warranty liability included in Accrued expenses		$	346
	Warranty liability included in Long-term liabilities			33
	Balance at September 30, 2014		$	379
Revenue Recognition	'
	Revenue Recognition
	In general, 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. Our revenue-generating transactions generally 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. 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.
		●	We recognize installation, service and maintenance revenue at the time the service is performed.
		●	We recognize revenue associated with extended maintenance agreements (“EMAs”) 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 agreement 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.
		●	Shipping costs reimbursed by the customer are included in revenue.
	When collectability is not reasonably assured, we defer revenue and will recognize revenue on a cost recovery basis 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 EMAs. 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. EMAs, consumables, and repair, maintenance or consulting services generally are 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 an EMA, we recognize revenue related to the EMA 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. The Company does not expect that the adoption of this standard will have a material effect on its 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. The Company 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_Policie1

Significant Accounting Policies and Supplemental Balance Sheet Information (Tables)	9 Months Ended
	Sep. 30, 2014
Significant Accounting Policies and Supplemental Balance Sheet Information [Abstract]	'
Accounts receivables	'
	Accounts receivable consist of the following (in thousands):
		September 30,			December 31,
		2014			2013
	Trade receivables	$	11,403		$	9,388
	Less: Allowance for doubtful accounts		(217	)		(313	)
		$	11,186		$	9,075
Schedule of inventory	'
	Inventories consist of the following (in thousands, net of allowance):
		September 30,			December 31,
		2014			2013
	Raw materials	$	4,472		$	4,521
	Work in process		2,028			2,429
	Finished goods		2,464			5,070
		$	8,964		$	12,020
Accrued Expenses	'
	Accrued expenses consist of the following (in thousands):
		September 30,			December 31,
		2014			2013
	Compensation, severance and benefits	$	1,563		$	2,685
	Warranty liability		346			529
	Property, Sales, Federal and VAT Taxes		1,077			483
	Professional fees		412			759
	Other		721			1,127
		$	4,119		$	5,583
Changes in warranty liability	'
	Changes in our warranty liability are presented in the following table (in thousands):
	Balance at December 31, 2013	$	562
	Warranty expense		399
	Payments		(532	)
	Adjustments		(50	)
	Balance at September 30, 2014	$	379
	Warranty liability included in Accrued expenses	$	346
	Warranty liability included in Long-term liabilities		33
	Balance at September 30, 2014	$	379

Net_Loss_Per_Share_Tables

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2014
Net Loss 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						Nine Months Ended
		September 30,						September 30,
		2014			2013			2014			2013
	Net loss	$	(2,496	)	$	(3,135	)	$	(10,783	)	$	(4,224	)
	Basic and dilutive:
	Weighted-average shares of common stock oustanding		23,124			19,337			22,271			19,188
	Basic and diluted net loss per share	$	(0.11	)	$	(0.16	)	$	(0.48	)	$	(0.22	)

Significant_Accounting_Policie2

Significant Accounting Policies and Supplemental Balance Sheet Information (Details) (USD $)	3 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2013
	Criteria	Criteria
	Product	Product
Restricted Cash [Abstract]	'	'	'
Restricted cash	$42	$42	$520
Receivables [Abstract]	'	'	'
Trade receivables	11,403	11,403	9,388
Less: Allowance for doubtful accounts	-217	-217	-313
Accounts receivable, net	11,186	11,186	9,075
Inventory [Abstract]	'	'	'
Raw materials	4,472	4,472	4,521
Work in process	2,028	2,028	2,429
Finished goods	2,464	2,464	5,070
Inventories	8,964	8,964	12,020
Accrued Expenses [Abstract]	'	'	'
Compensation, severance and benefits	1,563	1,563	2,685
Warranty liability	346	346	529
Property, Sales, Federal and VAT Taxes	1,077	1,077	483
Professional fees	412	412	759
Other	721	721	1,127
Accrued expenses	4,119	4,119	5,583
Provision for income taxes for settlement of the German tax examination	300	'	'
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]	'	'	'
Beginning Balance	'	562	'
Warranty expense	'	399	'
Payments	'	-532	'
Adjustments	'	-50	'
Ending Balance	379	379	'
Warranty liability included in accrued expenses	346	346	529
Long-term warranty liability	33	33	'
Warranty accrual at end of period	379	379	'
Revenue Recognition [Abstract]	'	'	'
Number of criteria to be met for revenue recognition	4	4	'
Minimum number of CleanSource UPS or PowerHouse products included in significant MEAs	1	1	'
Minimum number of second tier products included in significant MEAs	1	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 [Member]	'	'	'
Restricted Cash [Abstract]	'	'	'
Lease Expiration Date	'	24-Oct-14	'
Deposit guarantees outstanding for building lease	7	7	'
Performance guarantee outstanding deposit for building lease	$35	$35	'
Term of performance guarantee outstanding deposit	'	'24 months	'

Net_Loss_Per_Share_Details

Net Loss Per Share (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net Loss Per Share [Abstract]	'	'	'	'
Net loss	($2,496)	($3,135)	($10,783)	($4,224)
Basic and dilutive: [Abstract]	'	'	'	'
Weighted-average shares of common stock outstanding (in shares)	23,124,000	19,337,000	22,271,000	19,188,000
Basic and diluted net loss per share	($0.11)	($0.16)	($0.48)	($0.22)
Stock Options [Member]	'	'	'	'
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)	'	'	2,361,866	1,943,064
Restricted Stock Units (RSUs) [Member]	'	'	'	'
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)	'	'	25,943	96,299

Fair_Value_of_Financial_Instru1

Fair Value of Financial Instruments (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Millions, unless otherwise specified
Fair Value of Financial Instruments [Abstract]	'	'
Money-market funds for which the fair value was determined	$3.10	$3.10

Guarantees_Details

Guarantees (Details) (Performance Guarantee [Member], USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Performance Guarantee [Member]	'	'
Guarantor Obligations [Line Items]	'	'
Deposit guarantees outstanding for building lease	$7,000	'
Building lease expiry date	24-Oct-14	'
Performance guarantee outstanding deposit for fixed asset	35,000	'
Term of performance guarantee outstanding deposit for fixed asset	'24 months	'
Performance guarantees outstanding to customers	'	$500,000

Revolving_Line_of_Credit_Detai

Revolving Line of Credit (Details) (Revolving Line of Credit [Member], USD $)	9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014
Revolving Line of Credit [Member]	'	'
Line of Credit Facility [Abstract]	'	'
Extension of loan facility term	'3 years	'
Percentage of borrowing capacity	80.00%	'
Current borrowing capacity	$15,000,000	'
Maximum borrowing capacity	18,750,000	'
Borrowing Base Sublimits Inventory and Purchase Orders	7,000,000	3,500,000
Purchase orders and eligible inventory are subject to a sublimit	4,000,000	'
Purchase orders and eligible inventory are subject to a sublimit for UK	5,000,000	'
Liquidity Ratio for immediate reconciliation period	2.5	'
Additional borrowing base	5,600,000	2,100,000
Outstanding loan facility borrowings	$5,500,000	'

Stockholders_Equity_Details

Stockholders' Equity (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	28-May-14	Dec. 31, 2013
Stockholders' Equity [Abstract]	'	'	'	'
Common Stock, shares authorized (in shares)	40,000,000	'	30,000,000	30,000,000
Additional shares of common stock sold (in shares)	3,700,000	'	'	'
Purchase price per share (in dollars per share)	$3.15	'	'	'
Commissions and fees related to issuance of stock	$800,000	'	'	'
Professional fees related to issuance of stock	200,000	'	'	'
Proceeds from public offering of common stock, net of issuance costs	$10,438,000	$0	'	'

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014
Commitments and Contingencies [Abstract]	'
Cash settlement inclusive of fees and expenses	$1.50