Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Registrant Name | 'EMAGIN CORP | ' | ' |
Entity Central Index Key | '0001046995 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Public Float | ' | ' | $58.50 |
Entity Common Stock, Shares Outstanding | ' | 23,928,619 | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $4,032 | $4,385 |
Investments | 6,250 | 8,520 |
Accounts receivable, net | 4,319 | 5,154 |
Inventories, net | 3,434 | 3,223 |
Prepaid expenses and other current assets | 745 | 653 |
Total current assets | 18,780 | 21,935 |
Long-term investments | 750 | 500 |
Equipment, furniture and leasehold improvements, net | 9,119 | 8,099 |
Other assets | 27 | 124 |
Deferred tax asset | ' | 8,881 |
Total assets | 28,676 | 39,539 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' |
Accounts payable | 1,470 | 1,002 |
Accrued compensation | 1,155 | 1,188 |
Other accrued expenses | 1,436 | 1,313 |
Advance payments | 155 | 72 |
Deferred revenue | 66 | 60 |
Other current liabilities | 395 | 277 |
Total current liabilities | 4,677 | 3,912 |
Commitments and contingencies (Note 11) | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, $.001 par value: authorized 10,000,000 shares: Series B Convertible Preferred stock, (liquidation preference of $5,659,000) stated value $1,000 per share, $.001 par value: 10,000 shares designated and 5,659 issued and outstanding as of December 31, 2013 and December 31, 2012 | ' | ' |
Common stock, $.001 par value: authorized 200,000,000 shares, issued and outstanding, 23,928,619 shares as of December 31, 2013 and 23,674,541 as of December 31, 2012 | 24 | 24 |
Additional paid in capital | 226,051 | 223,575 |
Accumulated deficit | -201,576 | -187,509 |
Treasury stock, 162,066 shares as of December 31, 2013 and 150,000 shares as of December 31, 2012 | -500 | -463 |
Total shareholders' equity | 23,999 | 35,627 |
Total liabilities and shareholders' equity | $28,676 | $39,539 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 23,928,619 | 23,674,541 |
Common stock, shares outstanding | 23,928,619 | 23,674,541 |
Treasury stock, shares | 162,066 | 150,000 |
Series B Convertible Preferred Stock [Member] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock - Series B, liquidation preference | $5,659,000 | $5,659,000 |
Preferred stock, stated value | $1,000 | $1,000 |
Preferred stock, shares issued | 5,659 | 5,659 |
Preferred stock, shares outstanding | 5,659 | 5,659 |
Designated Series B Convertible Preferred Stock, shares | 10,000 | 10,000 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | ' | ' |
Product | $26,315 | $26,112 |
Contract | 1,675 | 4,448 |
Total revenue, net | 27,990 | 30,560 |
Cost of goods sold: | ' | ' |
Product | 18,573 | 13,526 |
Contract | 991 | 2,089 |
Total cost of goods sold | 19,564 | 15,615 |
Gross profit | 8,426 | 14,945 |
Operating expenses: | ' | ' |
Research and development | 5,023 | 4,738 |
Selling, general and administrative | 8,605 | 8,584 |
Total operating expenses | 13,628 | 13,322 |
(Loss) Income from operations | -5,202 | 1,623 |
Other income (expense): | ' | ' |
Interest expense, net | -31 | -29 |
Other income, net | 50 | 43 |
Total other income (expense), net | 19 | 14 |
(Loss) income before income tax | -5,183 | 1,637 |
Income tax expense (benefit) | 8,884 | -615 |
Net (loss) income | -14,067 | 2,252 |
Less net income allocated to participating securities | ' | 755 |
Net (loss) income allocated to common shares | ($14,067) | $1,497 |
(Loss) income per share, basic | ($0.60) | $0.06 |
(Loss) income per share, diluted | ($0.60) | $0.06 |
Weighted average number of shares outstanding: | ' | ' |
Basic | 23,639,554 | 23,486,463 |
Diluted | 23,639,554 | 25,382,125 |
Cash dividends declared per common share | ' | $0.10 |
Consolidated_Statements_Of_Cha
Consolidated Statements Of Changes In Shareholders' Equity (USD $) | Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance at Dec. 31, 2011 | ' | $24 | ($95) | $220,838 | ($186,656) | $34,111 |
Balance, shares at Dec. 31, 2011 | 5,659 | 23,513,978 | -25,000 | ' | ' | ' |
Exercise of common stock options | ' | ' | ' | 255 | ' | 255 |
Exercise of common stock options, shares | ' | 160,563 | ' | ' | ' | 160,563 |
Stock-based compensation | ' | ' | ' | 2,482 | ' | 2,482 |
Purchase of treasury stock | ' | ' | -368 | ' | ' | -368 |
Purchase of treasury stock, shares | ' | ' | -125,000 | ' | ' | ' |
Cash dividend | ' | ' | ' | ' | -3,105 | -3,105 |
Net (loss) income | ' | ' | ' | ' | 2,252 | 2,252 |
Balance at Dec. 31, 2012 | ' | 24 | -463 | 223,575 | -187,509 | 35,627 |
Balance, shares at Dec. 31, 2012 | 5,659 | 23,674,541 | -150,000 | ' | ' | ' |
Exercise of common stock options | ' | ' | ' | 394 | ' | 394 |
Exercise of common stock options, shares | ' | 254,078 | ' | ' | ' | 254,078 |
Stock-based compensation | ' | ' | ' | 2,082 | ' | 2,082 |
Purchase of treasury stock | ' | ' | -37 | ' | ' | -37 |
Purchase of treasury stock, shares | ' | ' | -12,066 | ' | ' | ' |
Net (loss) income | ' | ' | ' | ' | -14,067 | -14,067 |
Balance at Dec. 31, 2013 | ' | $24 | ($500) | $226,051 | ($201,576) | $23,999 |
Balance, shares at Dec. 31, 2013 | 5,659 | 23,928,619 | -162,066 | ' | ' | ' |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ' | ' |
Net (loss) income | ($14,067) | $2,252 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 905 | 368 |
Reduction in provision for doubtful accounts | -86 | -36 |
Amortization of bond premium | 20 | 36 |
Inventory reserve | 24 | 65 |
Stock-based compensation | 2,082 | 2,482 |
Gain on sale of asset | -9 | ' |
Deferred income taxes | 8,881 | -716 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 922 | 458 |
Inventories, net | -235 | -528 |
Prepaid expenses and other current assets | ' | 355 |
Advance payments | 83 | -105 |
Deferred revenue | 6 | -78 |
Accounts payable, accrued compensation and accrued expenses | 558 | 296 |
Other current liabilities | 118 | -22 |
Net cash (used in) provided by operating activities | -798 | 4,827 |
Cash flows from investing activities: | ' | ' |
Purchase of equipment | -1,927 | -2,483 |
Proceeds from sale of asset | 15 | ' |
Maturities of investments | 14,000 | 7,995 |
Purchase of investments | -12,000 | -10,307 |
Net cash provided by (used in) investing activities | 88 | -4,795 |
Cash flows from financing activities: | ' | ' |
Proceeds from exercise of stock options | 394 | 255 |
Purchase of treasury stock | -37 | -368 |
Cash dividends paid | ' | -3,105 |
Net cash provided by (used in) financing activities | 357 | -3,218 |
Net decrease in cash and cash equivalents | -353 | -3,186 |
Cash and cash equivalents, beginning of period | 4,385 | 7,571 |
Cash and cash equivalents, end of period | 4,032 | 4,385 |
Cash paid for interest, net of amount capitalized of $11 thousand and $13 thousand in 2013 and 2012, respectively | 1 | 1 |
Cash paid for taxes | $101 | ' |
Consolidated_Statements_Of_Cas1
Consolidated Statements Of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements Of Cash Flows [Abstract] | ' | ' |
Capitalized interest | $11 | $13 |
Nature_of_Business
Nature of Business | 12 Months Ended |
Dec. 31, 2013 | |
Nature of Business [Abstract] | ' |
Nature of Business | ' |
Note 1 - Nature Of Business | |
eMagin Corporation and its wholly owned subsidiary (the “Company”) designs, manufactures and supplies OLED-on-silicon microdisplays and virtual imaging products which utilize OLED microdisplays. The Company’s products are sold mainly in North America, Asia, and Europe. | |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Significant Accounting Policies [Abstract] | ' | |||||||||||
Significant Accounting Policies | ' | |||||||||||
Note 2: Significant Accounting Policies | ||||||||||||
Principles of consolidation | ||||||||||||
The accompanying consolidated financial statements include the accounts of eMagin Corporation and its wholly owned subsidiary. All intercompany transactions have been eliminated in consolidation. | ||||||||||||
Use of estimates | ||||||||||||
In accordance with accounting principles generally accepted in the United States of America, management utilizes certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments related to, among others, allowance for doubtful accounts, warranty reserves, inventory reserves, stock-based compensation expense, deferred tax asset valuation allowances, litigation, fair value of financial instruments and other loss contingencies. Management bases its estimates and judgments on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. | ||||||||||||
Revenue and cost recognition | ||||||||||||
Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, selling price is fixed or determinable and collection is reasonably assured. Product revenue is generally recognized when products are shipped to customers. | ||||||||||||
The Company also earns revenues from certain research and development (“R&D”) activities (contract revenues) under both firm fixed-price contracts and cost-type contracts. Revenues relating to firm fixed-price contracts and cost-type contracts are generally recognized on the percentage-of-completion method of accounting as costs are incurred (cost-to-cost basis). Progress is generally based on a cost-to-cost approach however an alternative method may be used such as physical progress, labor hours or others depending on the type of contract. Physical progress is determined as a combination of input and output measures as deemed appropriate by the circumstances. Contract costs include all direct material and labor costs and an allocation of allowable indirect costs as defined by each contract, as periodically adjusted to reflect revised agreed upon rates. These rates are subject to audit by the other party. | ||||||||||||
Product warranty | ||||||||||||
The Company offers a one-year product replacement warranty. In general, the standard policy is to repair or replace the defective products. The Company accrues for estimated returns of defective products at the time revenue is recognized based on historical activity as well as for specific known product issues. The determination of these accruals requires the Company to make estimates of the frequency and extent of warranty activity and estimate future costs to replace the products under warranty. If the actual warranty activity and/or repair and replacement costs differ significantly from these estimates, adjustments to cost of revenue may be required in future periods. | ||||||||||||
The following table provides a summary of the activity related to the Company's warranty liability, included in other current liabilities, during the years ended December 31, 2013 and 2012 (in thousands): | ||||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Beginning balance | $ | 276 | $ | 281 | ||||||||
Warranty accruals | 425 | 331 | ||||||||||
Warranty usage | -307 | -336 | ||||||||||
Ending balance | $ | 394 | $ | 276 | ||||||||
Research and development expenses | ||||||||||||
Research and development costs are expensed as incurred. | ||||||||||||
Cash and cash equivalents | ||||||||||||
All highly liquid instruments with an original maturity of three months or less at the date of purchase are considered to be cash equivalents. | ||||||||||||
Investments | ||||||||||||
Investments consist of debt securities including corporate obligations and FDIC-insured certificates of deposit with maturities up to eighteen months. The Company classifies these securities as held-to-maturity since it has the positive intent and ability to hold them until maturity. These securities are carried at amortized cost. | ||||||||||||
The held-to-maturity investments consist of the following as of December 31, 2013 and 2012 (in thousands): | ||||||||||||
31-Dec-13 | ||||||||||||
Amortized | Gross | Gross | Aggregate | |||||||||
Cost | Unrecognized | Unrecognized | Fair Value | |||||||||
Gains | Losses | |||||||||||
Current investments: | ||||||||||||
Certificates of deposit | $ | 6,250 | $ | — | $ | — | $ | 6,250 | ||||
Long-term investments: | ||||||||||||
Certificates of deposit | $ | 750 | $ | — | $ | — | $ | 750 | ||||
31-Dec-12 | ||||||||||||
Amortized | Gross | Gross | Aggregate | |||||||||
Cost | Unrecognized | Unrecognized | Fair Value | |||||||||
Gains | Losses | |||||||||||
Current investments: | ||||||||||||
Corporate debt securities | $ | 1,520 | $ | — | $ | — | $ | 1,520 | ||||
Certificates of deposit | 7,000 | — | — | 7,000 | ||||||||
Total current investments | $ | 8,520 | $ | — | $ | — | $ | 8,520 | ||||
Long-term investments: | ||||||||||||
Certificates of deposits | $ | 500 | $ | — | $ | — | $ | 500 | ||||
As of December 31, 2013, the current investments mature within one year and the long-term investments within 18 months. | ||||||||||||
Accounts receivable | ||||||||||||
The majority of the Company’s commercial accounts receivable are due from Original Equipment Manufacturers ("OEM’s”). Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are payable in U.S. dollars, are due within 30-90 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Any account outstanding longer than the contractual payment terms is considered past due. | ||||||||||||
Allowance for doubtful accounts | ||||||||||||
The allowance for doubtful accounts reflects an estimate of probable losses inherent in the accounts receivable balance. The allowance is determined based on a variety of factors, including the length of time receivables are past due, historical experience, the customer's current ability to pay its obligation, and the condition of the general economy and the industry as a whole. The Company will record a specific reserve for individual accounts when the Company becomes aware of a customer's inability to meet its financial obligations, deterioration in the customer's operating results or financial position, or deterioration in the customer’s credit history. If circumstances related to customers change, the Company would further adjust estimates of the recoverability of receivables. Account balances, when determined to be uncollectible, are charged against the allowance. | ||||||||||||
Inventory | ||||||||||||
Inventory is stated at the lower of cost or market. Cost is determined using the first-in first-out method. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. The Company regularly reviews inventory quantities on hand, future purchase commitments with the Company’s suppliers, and the estimated utility of the inventory. If the Company review indicates a reduction in utility below carrying value, the inventory is reduced to a new cost basis. | ||||||||||||
Equipment, furniture and leasehold improvements | ||||||||||||
Equipment, furniture and leasehold improvements are stated at cost. Depreciation on equipment is calculated using the straight-line method of depreciation over its estimated useful life. Amortization of leasehold improvements is calculated by using the straight-line method over the shorter of their estimated useful lives or lease terms. Expenditures for maintenance and repairs are charged to expense as incurred. | ||||||||||||
The Company performs impairment tests on its long-lived assets when circumstances indicate that their carrying amounts may not be recoverable. If required, recoverability is tested by comparing the estimated future undiscounted cash flows of the asset or asset group to its carrying value. Impairment losses, if any, are recognized based on the excess of the assets' carrying amounts over their estimated fair values. | ||||||||||||
Intangible assets | ||||||||||||
The Company’s intangible assets consist of patents that are amortized over their estimated useful lives of fifteen years using the straight line method. Total intangible amortization expense was approximately $4 thousand for each of the years ended December 31, 2013 and 2012, respectively. The accumulated amortization as of December 31, 2013 was $37 thousand. | ||||||||||||
Advertising | ||||||||||||
Costs related to advertising and promotion of products are charged to sales and marketing expense as incurred. Advertising expense was $0 for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||
Shipping and handling fees | ||||||||||||
The Company includes costs related to shipping and handling in cost of goods sold. | ||||||||||||
Income taxes | ||||||||||||
The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The effect on deferred tax assets and liabilities of changes in tax rates will be recognized as income or expense in the period that the change occurs. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Changes in circumstances, assumptions and clarification of uncertain tax regimes may require changes to any valuation allowances associated with the Company’s deferred tax assets. | ||||||||||||
Due to the Company’s operating loss carryforwards, all tax years remain open to examination by the major taxing jurisdictions to which the Company is subject. In the event that the Company is assessed interest or penalties at some point in the future, it will be classified in the financial statements as tax expense. | ||||||||||||
Income (loss) per common share | ||||||||||||
Basic income (loss) per share (“Basic EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period. Diluted income per share (“Diluted EPS”) is computed by dividing the net income (loss) by the weighted average number of common shares outstanding during the reporting period while also giving effect to all potentially dilutive common shares that were outstanding during the reporting period. | ||||||||||||
In accordance with ASC 260, entities that have issued securities other than common stock that participate in dividends with the common stock (“participating securities”) are required to apply the two-class method to compute basic EPS. The two-class method is an earnings allocation method under which EPS is calculated for each class of common stock and participating security as if all such earnings had been distributed during the period. On December 22, 2008, the Company issued Convertible Preferred Stock – Series B which participates in dividends with the Company’s common stock and is therefore considered to be a participating security. The participating convertible preferred stock is not required to absorb any net loss. The Company uses the more dilutive method of calculating the diluted earnings per share, either the two class method or “if-converted” method. Under the “if-converted” method, the convertible preferred stock is assumed to have been converted into common shares at the beginning of the period. | ||||||||||||
For the year ended December 31, 2012, the Company used the two class method to calculate diluted earnings per share. For the year ended December 31, 2013, the Company reported a loss and as a result, basic and diluted loss per common share are the same. | ||||||||||||
The following table summarizes the net income (loss) allocated to common shares and the basic and diluted shares used in the net (loss) income per share computations (in thousands, except share data): | ||||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Net (loss) income | $ | -14,067 | $ | 2,252 | ||||||||
Less dividends attributable to participating securities | — | 755 | ||||||||||
Less income attributable to participating securities | — | — | ||||||||||
Net (loss) income to common shares - basic and diluted | $ | -14,067 | $ | 1,497 | ||||||||
Weighted average shares outstanding for basic earnings per share | 23,639,554 | 23,486,463 | ||||||||||
Dilutive effect of outstanding common stock options and warrants | — | 1,895,662 | ||||||||||
Weighted average shares outstanding for diluted earnings per share | 23,639,554 | 25,382,125 | ||||||||||
Options and warrants | 5,597,186 | 2,884,434 | ||||||||||
Convertible preferred stock | 7,545,333 | — | ||||||||||
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect | 13,142,519 | 2,884,434 | ||||||||||
Comprehensive income | ||||||||||||
Companies are required to report as comprehensive income all changes in equity during a period, except those resulting from investments by owners and distributions to owners, for the period in which they are recognized. Comprehensive income is the total of net income and other comprehensive income items, such as unrealized gains or losses on foreign currency translation adjustments. Comprehensive income must be reported on the face of the annual financial statements. The Company's operations did not give rise to any material items includable in comprehensive income, which were not already in net income for the years ended December 31, 2013 and 2012. Accordingly, the Company's comprehensive income is the same as its net income for the periods presented. | ||||||||||||
Stock-based compensation | ||||||||||||
The Company uses the fair value method of accounting for share-based compensation arrangements. The fair values of stock options are estimated at the date of grant using the Black-Scholes option valuation model. Stock-based compensation expense is reduced for estimated forfeitures and is amortized over the vesting period using the straight-line method. | ||||||||||||
Concentration of credit risk | ||||||||||||
The majority of eMagin’s products are sold throughout North America, Asia, and Europe. Sales to the Company’s recurring customers are generally made on open account while sales to occasional customers are typically made on a prepaid basis. eMagin performs periodic credit evaluations on its recurring customers and generally does not require collateral. An allowance for doubtful accounts is maintained for credit losses. | ||||||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and short-term and long-term investments. The Company’s cash and cash equivalents are deposited with financial institutions which, at times, may exceed federally insured limits. The Company has funds invested in a money market account which are not insured. The Company has Certificates of Deposits (“CDs”) classified as short and long-term investments, which are federally insured. To date, the Company has not experienced any loss associated with this risk. | ||||||||||||
Recently issued accounting standards | ||||||||||||
In July 2013, the FASB issued ASU 2013-11, Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, an amendment to FASB Accounting Standards Codification (“ASC”) Topic 740, Income Taxes (“FASB ASC Topic 740”). The amendment provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for reporting periods after January 1, 2014 and is not expected to have an impact on the Company’s financial statements. | ||||||||||||
Accounts_Receivables_net
Accounts Receivables, net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounts Receivables, net [Abstract] | ' | ||||||||
Accounts Receivables, net | ' | ||||||||
Note 3: Accounts Receivable, net | |||||||||
Accounts receivable consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accounts receivable | $ | 4,464 | $ | 5,386 | |||||
Less allowance for doubtful accounts | -145 | -232 | |||||||
Net receivable | $ | 4,319 | $ | 5,154 | |||||
Inventories_net
Inventories, net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories, net [Abstract] | ' | ||||||||
Inventories, net | ' | ||||||||
Note 4: Inventories, net | |||||||||
The components of inventories were as follows (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 1,905 | $ | 1,745 | |||||
Work in process | 987 | 898 | |||||||
Finished goods | 637 | 651 | |||||||
Total inventories | 3,529 | 3,294 | |||||||
Less inventory reserve | -95 | -71 | |||||||
Total inventories, net | $ | 3,434 | $ | 3,223 | |||||
Prepaid_Expenses_And_Other_Cur
Prepaid Expenses And Other Current Assets | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Prepaid Expense and Other Current Assets [Abstract] | ' | |||||||
Prepaid Expenses And Other Current Assets | ' | |||||||
Note 5 – Prepaid Expenses And Other Current Assets | ||||||||
Prepaid expenses and other current assets consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Vendor prepayments | $ | 52 | $ | 54 | ||||
Other prepaid expenses* | 693 | 599 | ||||||
Total prepaid expenses and other current assets | $ | 745 | $ | 653 | ||||
*No individual amounts greater than 5% of current assets. | ||||||||
Equipment_Furniture_And_Leaseh
Equipment, Furniture And Leasehold Improvements | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Equipment, Furniture And Leasehold Improvements [Abstract] | ' | |||||||
Equipment, Furniture And Leasehold Improvements | ' | |||||||
Note 6 – Equipment, Furniture And Leasehold Improvements | ||||||||
Equipment, furniture and leasehold improvements consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Computer hardware and software | $ | 1,391 | $ | 1,151 | ||||
Lab and factory equipment | 10,760 | 10,090 | ||||||
Furniture, fixtures and office equipment | 329 | 324 | ||||||
Assets under capital leases | 66 | 66 | ||||||
Construction in progress | 2,801 | 1,800 | ||||||
Leasehold improvements | 473 | 473 | ||||||
Total equipment, furniture and leasehold improvements | 15,820 | 13,904 | ||||||
Less: accumulated depreciation | -6,701 | -5,805 | ||||||
Equipment, furniture and leasehold improvements, net | $ | 9,119 | $ | 8,099 | ||||
Depreciation expense was $900 thousand and $364 thousand for the years ended December 31, 2013 and 2012, respectively. Assets under capital leases are fully amortized. | ||||||||
Debt
Debt | 12 Months Ended |
Dec. 31, 2013 | |
Debt [Abstract] | ' |
Debt | ' |
Note 7– Debt | |
For the years ended December 31, 2013 and 2012, interest expense includes interest paid, capitalized or accrued of approximately $42 thousand, respectively, on outstanding debt. | |
Line of Credit | |
At December 31, 2013, the Company had available a credit facility with Access Business Finance, LLC (“Access”) under which the Company may borrow up to a maximum of $3 million based on a borrowing base equivalent of 75% of eligible accounts receivable. | |
The terms of the line of credit are: the minimum monthly interest payment is $1,000; the interest rate is Prime plus 4% but not less than 7.25%; and the early termination fee is $6,000. The renewal date of the line of credit is September 1, 2014. | |
In 2013 and 2012, the Company paid $30,000 in loan fees to Access which were charged to prepaid expense and amortized over the life of the agreement. The Company’s obligations under the agreement are secured by its assets. As of December 31, 2013, the Company had not borrowed on its line of credit. | |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Taxes [Abstract] | ' | |||||||
Income Taxes | ' | |||||||
Note 8 - INCOME TAXES | ||||||||
Net (loss) income before income taxes consists of the following (in thousands): | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Domestic | $ | -5,183 | $ | 1,637 | ||||
Total | $ | -5,183 | $ | 1,637 | ||||
The federal and state income tax (benefit) provision is summarized as follows (in thousands): | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Current: | $ | $ | ||||||
Federal | 1 | 74 | ||||||
State | 2 | 27 | ||||||
Total current tax expense | 3 | 101 | ||||||
Deferred: | ||||||||
Federal | 8,803 | -709 | ||||||
State | 78 | -7 | ||||||
Total deferred tax expense (benefit) | 8,881 | -716 | ||||||
Total tax expense (benefit) | $ | 8,884 | $ | -615 | ||||
Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating losses and tax credit carryforwards. | ||||||||
The tax effects of significant items comprising the Company’s deferred taxes as of December 31 are as follows (numbers are in thousands): | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Deferred tax assets: | ||||||||
Federal and state net operating loss carryforwards | $ | 36,284 | $ | 34,868 | ||||
Research and development tax credit carryforwards | 1,979 | 1,571 | ||||||
Stock based compensation | 3,665 | 2,995 | ||||||
Other provision and expenses not currently deductible | 755 | 659 | ||||||
Total deferred tax assets | 42,683 | 40,093 | ||||||
Deferred tax liabilities: | ||||||||
Depreciation and amortization | -374 | -7 | ||||||
Prepaid expenses | -191 | -162 | ||||||
Total deferred liabilities | -565 | -169 | ||||||
Less valuation allowance | -42,118 | -31,043 | ||||||
Net deferred tax asset | $ | — | $ | 8,881 | ||||
The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The effect on deferred tax assets and liabilities of changes in tax rates will be recognized as income or expense in the period that the change occurs. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Changes in circumstances, assumptions and clarification of uncertain tax regimes may require changes to any valuation allowances associated with the Company’s deferred tax assets. | ||||||||
Realization of the future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carryforward period. Through December 31, 2009, the Company’s net deferred tax assets were fully reserved due to uncertainty of realization through future earnings. In 2010, the Company determined that based on all available evidence, both positive and negative, and based on the weight of the available evidence, including the Company’s cumulative taxable income over the past three years and expected profitability in 2011 through 2013 that certain of its deferred tax assets were more likely than not realizable through future earnings. Accordingly, the Company reduced its valuation allowance by $9.1 million and recorded a corresponding tax benefit of $9.1 million. | ||||||||
In 2011, the Company determined that it is more likely than not that $8.2 million of its deferred tax asset will be realized and no additional valuation allowance was released. In 2012, the Company determined that based on all available evidence, both positive and negative, and based on the weight of the available evidence, including the Company’s continued profitability and projected cumulative taxable income through 2017 that certain of its deferred tax assets were more likely than not realizable through future earnings. The Company recorded a $0.7 million reduction of its deferred tax asset valuation allowance which increased its net deferred tax asset to $8.9 million and recorded a corresponding income tax benefit of $0.7 million. | ||||||||
In 2013, the Company determined that based on all available evidence, both positive and negative, and based on the weight of the available evidence, including the Company’s recent operating loss in 2013 and a projected cumulative loss through 2014, it was more likely than not that none of its deferred tax assets will be realized. Therefore, it recorded a full valuation allowance and recorded income tax expense of $8.9 million. | ||||||||
As of December 31, 2013 and 2012, the Company had net deferred tax assets before its valuation allowance of approximately of $42.1 and $39.9 million, respectively, primarily resulting from the future tax benefit of net operating loss carryforwards. The amount of the valuation allowance for deferred tax assets associated with excess tax deduction from stock-based compensation arrangement that is allocated to contributed capital if the future tax benefits are subsequently recognized is $1.2 million at December 31, 2013. | ||||||||
During the year ended December 31, 2013, the Company did not utilize its prior years’ net operating loss carryforwards. As of December 31, 2013, eMagin has federal and state net operating loss carryforwards of approximately $109.7 million and $2.4 million, respectively. The federal research and development tax credit carryforwards are approximately $2 million. The federal net operating losses and tax credit carryforwards will expire as follows: | ||||||||
Net | Research and | |||||||
Operating | Development | |||||||
Losses | Tax Credits | |||||||
(in millions) | ||||||||
2019-2021 | $ | 18.9 | $ | 0.8 | ||||
2022-2025 | 40.2 | — | ||||||
2026-2034 | 50.6 | 1.2 | ||||||
$ | 109.7 | $ | 2.0 | |||||
The utilization of net operating losses is subject to a limitation due to the change of ownership provisions under Section 382 of the Internal Revenue Code and similar state provisions. Such limitation may result in the expiration of the net operating losses before their utilization. The Company has done an analysis regarding prior year ownership changes, and it has been determined that the Section 382 limitation on the utilization of net operating losses will currently not materially affect the Company's ability to utilize its net operating losses. | ||||||||
The difference between the statutory federal income tax rate on the Company's pre-tax loss and the Company's effective income tax rate is summarized as follows: | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
U.S. Federal income tax expense at federal statutory rate | 34 | % | 34 | % | ||||
Change in valuation allowance | -214 | -81 | ||||||
Change in effective state tax rate | 1 | 2 | ||||||
Credits | 8 | 7 | ||||||
Other, net | — | 1 | ||||||
Effective tax rate | -171 | % | -37 | % | ||||
The Company did not have unrecognized tax benefits at December 31, 2013 and 2012. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2013 and 2012, the Company recognized no interest and penalties. | ||||||||
The Company files income tax returns in the U.S. federal jurisdiction, California, Florida, New York and Virginia. Due to the Company's operating losses, all tax years remain open to examination by major taxing jurisdictions to which the Company is subject. | ||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Shareholders' Equity [Abstract] | ' |
Shareholders' Equity | ' |
Note 9: Shareholders’ Equity | |
Preferred Stock - Series B Convertible Preferred Stock (“the Preferred Stock – Series B”) | |
As of December 31, 2013 and 2012, there were 5,659 shares of Preferred Stock – Series B issued and outstanding. | |
Common Stock | |
The Company received approximately $394 thousand and $255 thousand for the exercise of 254,078 and 160,563 stock options during the years ended December 31, 2013 and 2012, respectively. No warrants were exercised during 2013 and 2012. | |
During the year ended December 31, 2013, the Company repurchased 12,066 shares at an average cost of $2.99 per share. During the twelve months ended December 30, 2012, the Company repurchased 125,000 shares at an average cost of $2.95 per share. At December 31, 2013, there was approximately $2.0 million remaining under the stock repurchase plan. | |
Stock_Compensation
Stock Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Stock Compensation [Abstract] | ' | |||||||||||||
Stock Compensation | ' | |||||||||||||
Note 10: Stock Compensation | ||||||||||||||
Employee stock purchase plan | ||||||||||||||
In 2005, the shareholders approved the 2005 Employee Stock Purchase Plan (“ESPP”). The ESPP provides the Company’s employees with the opportunity to purchase common stock through payroll deductions. Employees may purchase stock semi-annually at a price that is 85% of the fair market value at certain plan-defined dates. At December 31, 2013, the number of shares of common stock available for issuance was 300,000. As of December 31, 2013, the plan had not been implemented. | ||||||||||||||
Incentive compensation plans | ||||||||||||||
The Amended and Restated 2003 Employee Stock Option Plan (the “2003 Plan”) provided for grants of shares of common stock and options to purchase shares of common stock to employees, officers, directors and consultants. The 2003 Plan terminated July 2, 2013. No additional options can be granted from the plan though options granted before the 2003 Plan terminated may be exercised until the grant expires. In 2013 prior to the termination of the 2003 Plan, there were 385,937 options granted from the 2003 Plan. | ||||||||||||||
The 2008 Incentive Stock Plan (the “2008 Plan”) adopted and approved by the Board of Directors on November 5, 2008 provides for grants of common stock and options to purchase shares of common stock to employees, officers, directors and consultants. The 2008 Plan has an aggregate of 2 million shares. In 2013, there were no options issued from the 2008 Plan. | ||||||||||||||
The 2011 Incentive Stock Plan (the “2011 Plan”) was approved by the Company’s shareholders on November 3, 2011. The 2011 Plan provides for grants of common stock and options to purchase common stock to employees, officers, directors and consultants. The Board of Directors reserved 1.4 million shares of common stock for issuance under the 2011 Plan. On June 7, 2012, at the Company’s Annual Meeting, the shareholders approved an Amended and Restated 2011 Incentive Stock Plan which eliminated the evergreen provision and prohibits the repricing or exchange of stock options without shareholder approval. In 2013, there were no options issued from the 2011 Plan. | ||||||||||||||
The 2013 Incentive Stock Plan (the “2013 Plan”) adopted and approved by the shareholders on May 17, 2013 provides for grants of common stock and options to purchase shares of common stock to employees, officers, directors and consultants. The 2013 Plan has an aggregate of 1.5 million shares. In 2013, there were 59,565 options granted from this plan. | ||||||||||||||
Vesting terms of the options range from immediate vesting to a ratable vesting period of 5 years. Option activity for the years ended December 31, 2013 and 2012 is summarized as follows: | ||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (In Years) | Aggregate Intrinsic Value | |||||||||||
Outstanding at December 31, 2011 | 4,242,251 | $ | 3.93 | |||||||||||
Options granted | 800,203 | 3.50 | ||||||||||||
Options exercised | -160,563 | 1.59 | ||||||||||||
Options forfeited | -172,912 | 6.54 | ||||||||||||
Options cancelled or expired | -23,545 | 6.94 | ||||||||||||
Outstanding at December 31, 2012 | 4,685,434 | $ | 3.82 | |||||||||||
Options granted | 445,502 | 3.45 | ||||||||||||
Options exercised | -254,078 | 1.55 | ||||||||||||
Options forfeited | -129,766 | 4.08 | ||||||||||||
Options cancelled or expired | -149,906 | 6.34 | ||||||||||||
Outstanding at December 31, 2013 | 4,597,186 | $ | 3.82 | 4.53 | $ | 2,357,350 | ||||||||
Vested or expected to vest at December 31, 2013 (1) | 4,566,774 | $ | 3.82 | 4.54 | $ | 2,356,707 | ||||||||
Exercisable at December 31, 2013 | 3,836,920 | $ | 3.54 | 4.71 | $ | 2,341,286 | ||||||||
(1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. | ||||||||||||||
At December 31, 2013, there were 1,696,163 shares available for grant under the 2013, 2011, and 2008 Plans. | ||||||||||||||
The aggregate intrinsic value in the table above represents the difference between the exercise price of the underlying options and the quoted price of the Company’s common stock on December 31, 2013 for the options that were in-the-money. As of December 31, 2013 there were 1,597,720 options that were in-the-money. The Company’s closing stock price was $2.83 as of December 31, 2013. The Company issues new shares of common stock upon exercise of stock options. The intrinsic value of the 2013 options exercised was $0.5 million of which $0.2 million is an excess tax benefit. | ||||||||||||||
Stock- based compensation | ||||||||||||||
The Company uses the fair value method of accounting for share-based compensation arrangements. The fair value of stock options is estimated at the date of grant using the Black-Scholes option valuation model. Stock-based compensation expense is reduced for estimated forfeitures and is amortized over the vesting period using the straight-line method. | ||||||||||||||
The following table summarizes the allocation of non-cash stock-based compensation to the Company’s expense categories for the three and nine month periods ended December 31, 2013 and 2012 (in thousands): | ||||||||||||||
For the Years Ended | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Cost of revenue | $ | 285 | $ | 282 | ||||||||||
Research and development | 566 | 586 | ||||||||||||
Selling, general and administrative | 1,231 | 1,614 | ||||||||||||
Total stock compensation expense | $ | 2,082 | $ | 2,482 | ||||||||||
At December 31, 2013, total unrecognized compensation costs related to stock options was approximately $1.1 million, net of estimated forfeitures. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures and is expected to be recognized over a weighted average period of approximately 1.6 years. | ||||||||||||||
The following key assumptions were used in the Black-Scholes option pricing model to determine the fair value of stock options granted: | ||||||||||||||
For the Years Ended | ||||||||||||||
December 31 , | ||||||||||||||
2013 | 2012 | |||||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||||
Risk free interest rates | 0.35 – 1.48 | % | 0.31 - 0.87 | % | ||||||||||
Expected volatility | 63 to 74 | % | 72 to 81 | % | ||||||||||
Expected term (in years) | 3.5 to 5.0 | 3.0 to 5.5 | ||||||||||||
The weighted average fair value per share for options granted in 2013 and 2012 was $1.81 and $1.95, respectively. | ||||||||||||||
There was no dividend declared and paid in 2013. Though the Company paid a special one-time dividend in 2012, the Company does not expect to pay dividends in the near future therefore it used an expected dividend yield of 0%. The risk-free interest rate used in the Black-Scholes option pricing model is based on the implied yield at the time of grant available on U.S. Treasury securities with an equivalent term. Expected volatility is based on the weighted average historical volatility of the Company’s common stock for the equivalent term. The expected term of options represents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on historical experience and vesting schedules of similar awards. | ||||||||||||||
Warrants | ||||||||||||||
At December 31, 3013 and 2012, there were 1 million warrants to purchase shares of common stock outstanding and exercisable at an exercise price of $1.03 and expiration date of June 22, 2014. | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
Note 11: Commitments and Contingencies | |
Royalty Payments | |
The Company signed a license agreement on March 29, 1999 with Eastman Kodak (“Kodak’), under which it is obligated to make royalty payments. Under this agreement, the Company must pay to Kodak a minimum royalty plus a certain percentage of net sales with respect to certain products, which percentages are defined in the agreement. The percentages are on a sliding scale depending on the amount of sales generated. Any minimum royalties paid will be credited against the amounts due based on the percentage of sales. The royalty agreement terminates upon the expiration of the issued patent which is the last to expire. The Company was notified that Kodak sold substantially all rights and obligations under the Company’s license agreement to Global OLED Technology (“GOT”) as of December 30, 2009. | |
In late 2008, the Company began evaluating the status of its manufacturing process and the use of the intellectual property (“IP”) associated with its license agreement. After this analysis and after making a few changes to its manufacturing process, by the end of 2008 the Company had stopped using the IP covered under the license agreement. The last royalty payment under the license agreement was made in November 2009. The Company determined that it is no longer required to pay the minimum royalty payment and as such has not paid or accrued this amount. | |
In April 2011, the Company received a request for royalty payments from a representative of GOT. The Company responded by stating that the license was no longer in force and that the request for royalties was untimely. On January 13, 2014, GOT filed a complaint against the Company in the New York State Supreme Court sitting in Dutchess County, NY seeking damages for unpaid annual minimum royalties, unpaid royalties on net sales of certain licensed products, unpaid interest, and damages for breach of confidentiality provisions, in each case allegedly arising under the Company’s license agreement. GOT also seeks a declaratory judgment seeking specific performance of the parties obligations under the license agreement in accordance with the terms and conditions thereof, a full accounting of net sales thereunder and recoupment of reasonable costs and attorneys’ fees. Following the filing of the complaint, GOT and the Company engaged in discussions which remain ongoing in attempts to amicably resolve the dispute between the parties without the costs associated with a lengthy litigation. The Company believes that progress towards a mutually agreeable resolution is being made as of the date of this filing. However, no definitive agreement has been entered into between GOT and the Company, and the outcome of the discussions is uncertain and cannot be predicted with any certainty. Nevertheless, the Company believes that a reasonable estimate of the loss contingency related to this matter is approximately $0.5 million. Therefore the Company recorded a $0.5 million liability on the Company’s Consolidated Balance Sheets and a selling, general and administrative expense on the Company’s Consolidated Statements of Operations as of December 31, 2013. | |
Operating Leases | |
The Company leases office facilities and office, lab and factory equipment under operating leases. Certain leases provide for payments of monthly operating expenses. The Company currently has lease commitments for space in Hopewell Junction, New York, Bellevue, Washington, and Santa Clara, California. | |
The Company’s manufacturing facilities are leased from IBM in Hopewell Junction, New York. The Company leases approximately 37,000 square feet to house its equipment for OLED microdisplay fabrication and for research and development, an assembly area and administrative offices. The lease expires May 31, 2014 with the option of extending the lease for five years. The corporate headquarters are located in Bellevue, Washington where eMagin leases approximately 6,300 square feet. The lease expires on August 31, 2014. In addition, the Company leases approximately 2,400 square feet of office space for design and product development in Santa Clara, California and the lease expires December 31, 2014. | |
Rent expense was approximately $1.2 million for years ended December 31, 2013 and 2012, respectively. The future minimum lease payments through 2014 are $0.5 million. | |
Equipment Purchase Commitments | |
The Company has committed to equipment purchases of approximately $1.2 million at December 31, 2013. | |
Employee benefit plans | |
eMagin has a defined contribution plan (the 401(k) Plan) under Section 401(k) of the Internal Revenue Code, which is available to all employees who meet established eligibility requirements. Employee contributions are generally limited to 15% of the employee's compensation. Under the provisions of the 401(k) Plan, eMagin may match a portion of the participating employees' contributions. For the years ended December 31, 2013 and 2012, the matched contributions to the 401(k) Plan were $0.1 million and $0, respectively. | |
Employment agreements | |
2013 | |
On December 31, 2013 and effective as of January 1, 2014, the Company and Andrew G. Sculley, Jr. entered into an Amended and Restated Employment Agreement (the “Sculley Employment Agreement”), which amends and restates in its entirety the Executive Employment Agreement, dated as of June 1, 2011. Pursuant to the Sculley Employment Agreement, Mr. Sculley will continue serving as the Company’s President and Chief Executive Officer. The Sculley Employment Agreement will continue until June 30, 2016 unless it is terminated sooner pursuant to its terms. Under the Sculley Employment Agreement, Mr. Sculley will be paid an annual salary of $410,000. Mr. Sculley may receive equity-related instruments on an annual basis in amounts and subject to vesting and other terms and conditions as the Board of Directors or Compensation Committee of the Board of Directors may determine. During the term of the Sculley Employment Agreement, the Company shall use its reasonable good faith efforts to cause Mr. Sculley to be elected to the Company’s Board of Directors. | |
Pursuant to the Sculley Employment Agreement, Mr. Sculley’s employment may be terminated by the Company with or without Cause (as defined in the Sculley Employment Agreement) and he may terminate his employment for Good Reason (as defined in the Sculley Employment Agreement), among other reasons. If Mr. Sculley’s employment is terminated without Cause or if he terminates it for Good Reason, then Mr. Sculley shall, at the Company’s sole discretion, be entitled to the lesser of (i) the total amount of his base salary that remains unpaid under the Sculley Employment Agreement, which shall be paid monthly, or (ii) monthly salary payments for twelve (12) months, based on Mr. Sculley’s monthly rate of base salary at the date of such termination, which the Company may pay in a lump-sum in lieu of the aforementioned monthly payments. The payment of the severance is contingent upon Mr. Sculley executing a release agreement, such release becoming effective, and only so long as Mr. Sculley does not revoke or breach the provision of the release or the restrictive covenants set forth in Sections 4 and 5 of the Sculley Employment Agreement. Mr. Sculley shall also be entitled to (i) payment for accrued and unused vacation; (ii) the immediate vesting of any non-vested equity-related instruments granted pursuant to Section 2.6 of the Sculley Employment Agreement; and (iii) any bonuses which have accrued prior to the date of Mr. Sculley’s termination. If the Sculley Employment Agreement is terminated with Cause or if Mr. Sculley terminates it without Good Reason then Mr. Sculley shall cease to accrue salary, personal time off, benefits and other compensation on the date of such termination. | |
On December 31, 2013 and effective as of January 1, 2014, the Company and Paul C. Campbell entered into an Amended and Restated Employment Agreement (the “Campbell Employment Agreement”), which amends and restates in its entirety the Executive Employment Agreement, dated as of May 8, 2012. Pursuant to the Campbell Employment Agreement, Mr. Campbell will continue serving as the Company’s Chief Financial Officer and Treasurer. The Campbell Employment Agreement will continue until December 31, 2015 unless it is terminated sooner pursuant to its terms. Under the Campbell Employment Agreement, Mr. Campbell will be paid an annual salary of $335,000. Mr. Campbell may receive equity-related instruments on an annual basis in amounts and subject to vesting and other terms and conditions as the Board of Directors or Compensation Committee of the Board of Directors may determine. | |
Pursuant to the Campbell Employment Agreement, Mr. Campbell’s employment may be terminated by the Company with or without Cause (as defined in the Campbell Employment Agreement) and he may terminate his employment for Good Reason (as defined in the Campbell Employment Agreement), among other reasons. If Mr. Campbell’s employment is terminated without Cause or if he terminates it for Good Reason, then Mr. Campbell shall, at the Company’s sole discretion, be entitled to the lesser of (i) the total amount of his base salary that remains unpaid under the Campbell Employment Agreement, which shall be paid monthly, or (ii) monthly salary payments for twelve (12) months, based on Mr. Campbell’s monthly rate of base salary at the date of such termination, which the Company may pay in a lump-sum in lieu of the aforementioned monthly payments. The payment of the severance is contingent upon Mr. Campbell executing a release agreement, such release becoming effective, and only so long as Mr. Campbell does not revoke or breach the provision of the release or the restrictive covenants set forth in Sections 4 and 5 of the Campbell Employment Agreement. Mr. Campbell shall also be entitled to (i) payment for accrued and unused vacation; (ii) the immediate vesting of any non-vested equity-related instruments granted pursuant to Section 2.6 of the Campbell Employment Agreement; and (iii) any bonuses which have accrued prior to the date of Mr. Campbell’s termination. If the Campbell Employment Agreement is terminated with Cause or if Mr. Campbell terminates it without Good Reason then Mr. Campbell shall cease to accrue salary, personal time off, benefits and other compensation on the date of such termination. | |
Pursuant to the Campbell Employment Agreement, Mr. Campbell agreed to relocate his personal domicile to New York State and to perform his services to the Company from the Company’s facilities in Hopewell Junction, New York. Pursuant to the Campbell Employment Agreement, the Company shall pay for certain relocation related expenses up to a maximum of $10,000. | |
The Company and Gabriel G. Matus entered into an employment agreement, dated as of April 30, 2013 (the “Matus Employment Agreement”), pursuant to which Mr. Matus will serve as the Company’s Senior Vice President, General Counsel and Secretary. Mr. Matus’ employment with the Company commenced on May 13, 2013 (the “Commencement Date”) and shall continue until May 13, 2015, unless terminated sooner pursuant to the Matus Employment Agreement. Pursuant to the Matus Employment Agreement, Mr. Matus is paid a base salary of $234,000 per annum. Promptly after the Commencement Date, Mr. Matus and the Company entered into a stock option agreement (the “Matus Option Agreement”) pursuant to which Mr. Matus will also be entitled to receive an option to purchase such number of shares (the “Shares”) of the Company’s common stock equal to $50,000 (using the Black Sholes method of valuing such option based on the closing price of the Company’s common stock on the date of the grant), which option shall terminate on the earlier to occur of five years from its grant or upon the other applicable termination provisions contained in the Option Agreement. The Option Agreement entitles Mr. Matus to purchase the Shares for $3.50 per share, the closing price of the Company’s common stock on the date of grant. Subject to the terms and conditions of the Employment Agreement and the Option Agreement, the option to purchase the Shares shall vest as follows: 1/3 shall vest one year from the date of the Employment Agreement, 1/3 shall vest two years from the date of the Employment Agreement, and the remaining 1/3 shall vest three years from the date of the Employment Agreement, provided that if Mr. Matus does not continue his employment with the Company any unvested options shall be void. | |
If Mr. Matus voluntarily terminates his employment with the Company, other than for Good Reason (as such term is defined in the Employment Agreement), he shall cease to accrue salary, personal time off, benefits and other compensation on the date of voluntary termination and all unvested stock options granted to Mr. Matus will be void. The Company may terminate Mr. Matus’ employment with or without cause. If the Company terminates Mr. Matus’ employment without Cause (as such term is defined in the Employment Agreement) after 120 days from the date of the Employment Agreement, Mr. Matus will be entitled to monthly salary payments for twelve (12) months, based on his monthly rate of base salary at the date of such termination, provided, however, in lieu of the aforementioned monthly payments the Company may in its sole discretion pay such amounts in a single lump-sum payment. In addition, any non-vested options pursuant to the Employment Agreement shall vest immediately. Mr. Matus shall also be entitled to receive (i) payment for accrued and unpaid vacation pay, and (ii) all bonuses that have accrued during the term of the Employment Agreement but have not been paid. | |
2012 | |
Effective as of December 25, 2012, Susan R. Taylor resigned as Senior Vice President, General Counsel and Corporate Secretary and her employment agreement was terminated. | |
Effective as of May 8, 2012, the Company and Paul Campbell entered into an executive employment agreement (the “Employment Agreement”) pursuant to which Mr. Campbell would continue serving as the Company’s Chief Financial Officer and Treasurer until December 31, 2013. Under the Employment Agreement, Mr. Campbell was paid an annual base salary of $318,000 and received stock options valued at $82,400 on May 8, 2012 and $123,600 on December 31, 2012. | |
Concentrations
Concentrations | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Concentrations [Abstract] | ' | ||||||||
Concentrations | ' | ||||||||
Note 12: Concentrations | |||||||||
The following is a schedule of revenue by geographic location (in thousands): | |||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
North and South America | $ | 17,674 | $ | 21,191 | |||||
Europe, Middle East, and Africa | 7,632 | 6,773 | |||||||
Asia Pacific | 2,684 | 2,596 | |||||||
Total | $ | 27,990 | $ | 30,560 | |||||
For the Years Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Domestic | 62 | % | 67 | % | |||||
International | 38 | % | 33 | % | |||||
The Company purchases principally all of its silicon wafers from a single supplier located in Taiwan. | |||||||||
In 2013, there were 2 customers that accounted for 22% of its revenue and 17% of its accounts receivable. In 2012, there was 1 customer that accounted for 17% of its net revenue and 8% of its outstanding receivable. | |||||||||
At December 31, 2013 and 2012, there were 10 customers who comprised 70% and 75%, respectively, of the outstanding accounts receivable. In 2013 and 2012, the Company had 2 customers that together accounted for 26% and 29%, respectively, of its outstanding receivable. | |||||||||
Quarterly_Financial_Informatio
Quarterly Financial Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Quarterly Financial Information [Abstract] | ' | ||||||||||||
Quarterly Financial Information | ' | ||||||||||||
Note 13 – QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||
Summarized quarterly financial information for 2013 and 2012 are as follows (in thousands except share data): | |||||||||||||
Quarters Ended | |||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||
Revenues | $ | 8,503 | $ | 7,028 | $ | 6,329 | $ | 6,130 | |||||
Gross margin | $ | 3,751 | $ | 2,391 | $ | 2,225 | $ | 59 | |||||
Net (loss) income before income tax | $ | 325 | $ | -1,128 | $ | -1,057 | $ | -3,323 | |||||
Net (loss) income | $ | 205 | $ | -1,008 | $ | -4,559 | $ | -8,705 | |||||
Net (loss) income per share - basic | $ | 0.01 | $ | -0.04 | $ | -0.19 | $ | -0.37 | |||||
Net (loss) income per share - diluted | $ | 0.01 | $ | -0.04 | $ | -0.19 | $ | -0.37 | |||||
Weighted average number of shares outstanding - basic | 23,527,072 | 23,586,413 | 23,718,106 | 23,726,626 | |||||||||
Weighted average number of shares outstanding - diluted | 25,332,976 | 23,586,413 | 23,718,106 | 23,726,626 | |||||||||
Quarters Ended | |||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||
Revenues | $ | 6,137 | $ | 8,587 | $ | 7,510 | $ | 8,326 | |||||
Gross margin | $ | 2,681 | $ | 4,513 | $ | 3,649 | $ | 4,102 | |||||
Net (loss) income before income tax | $ | -718 | $ | 918 | $ | 561 | $ | 876 | |||||
Net (loss) income | $ | -452 | $ | 577 | $ | 340 | $ | 1,787 | |||||
Net (loss) income per share - basic | $ | -0.02 | $ | 0.02 | $ | 0.01 | $ | 0.04 | |||||
Net (loss) income per share - diluted | $ | -0.02 | $ | 0.02 | $ | 0.01 | $ | 0.04 | |||||
Weighted average number of shares outstanding - basic | 23,507,172 | 23,469,677 | 23,444,361 | 23,524,541 | |||||||||
Weighted average number of shares outstanding - diluted | 23,507,172 | 25,167,605 | 25,393,035 | 25,445,909 | |||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note 14 – SUBSEQUENT EVENTS | |
On March 5, 2014, the Company received a notification to stop shipments to a customer pending review of a possible wire bonding problem in a microdisplay. Similar notices from two other customers have been received by the Company. These customers, who supply systems to government programs that include the Company’s displays, have indicated that they will not accept the Company’s displays until the issue has been resolved. Hence, this issue will result in a delay of shipments to these customers, which will impact the revenue for the quarter ended March 31, 2014. The Company believes that upon completion of its review and with concurrence of the applicable customers, anticipated shipments of the Company’s products to such customers will resume shortly. However, because we cannot predict the extent of the delay at this time, and because the Company will make use of excess capacity resulting from the delay in shipments to continue to manufacture and ship products to other customers, we cannot estimate the impact on revenue for the quarter ended March 31, 2014. For one of the three customers involved, the applicable displays accounted for over 10% of the Company’s 2013 revenues and for all three customers combined, the applicable displays accounted for approximately 19% of 2013 revenues. | |
Signicant_Accounting_Policies_
Signicant Accounting Policies (Policy) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Significant Accounting Policies [Abstract] | ' | |||||||||||
Principles of consolidation | ' | |||||||||||
Principles of consolidation | ||||||||||||
The accompanying consolidated financial statements include the accounts of eMagin Corporation and its wholly owned subsidiary. All intercompany transactions have been eliminated in consolidation. | ||||||||||||
Use of estimates | ' | |||||||||||
Use of estimates | ||||||||||||
In accordance with accounting principles generally accepted in the United States of America, management utilizes certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments related to, among others, allowance for doubtful accounts, warranty reserves, inventory reserves, stock-based compensation expense, deferred tax asset valuation allowances, litigation, fair value of financial instruments and other loss contingencies. Management bases its estimates and judgments on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. | ||||||||||||
Revenue and Cost Recognition | ' | |||||||||||
Revenue and cost recognition | ||||||||||||
Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, selling price is fixed or determinable and collection is reasonably assured. Product revenue is generally recognized when products are shipped to customers. | ||||||||||||
The Company also earns revenues from certain research and development (“R&D”) activities (contract revenues) under both firm fixed-price contracts and cost-type contracts. Revenues relating to firm fixed-price contracts and cost-type contracts are generally recognized on the percentage-of-completion method of accounting as costs are incurred (cost-to-cost basis). Progress is generally based on a cost-to-cost approach however an alternative method may be used such as physical progress, labor hours or others depending on the type of contract. Physical progress is determined as a combination of input and output measures as deemed appropriate by the circumstances. Contract costs include all direct material and labor costs and an allocation of allowable indirect costs as defined by each contract, as periodically adjusted to reflect revised agreed upon rates. These rates are subject to audit by the other party. | ||||||||||||
Product warranty | ' | |||||||||||
Product warranty | ||||||||||||
The Company offers a one-year product replacement warranty. In general, the standard policy is to repair or replace the defective products. The Company accrues for estimated returns of defective products at the time revenue is recognized based on historical activity as well as for specific known product issues. The determination of these accruals requires the Company to make estimates of the frequency and extent of warranty activity and estimate future costs to replace the products under warranty. If the actual warranty activity and/or repair and replacement costs differ significantly from these estimates, adjustments to cost of revenue may be required in future periods. | ||||||||||||
The following table provides a summary of the activity related to the Company's warranty liability, included in other current liabilities, during the years ended December 31, 2013 and 2012 (in thousands): | ||||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Beginning balance | $ | 276 | $ | 281 | ||||||||
Warranty accruals | 425 | 331 | ||||||||||
Warranty usage | -307 | -336 | ||||||||||
Ending balance | $ | 394 | $ | 276 | ||||||||
Research and development expenses | ' | |||||||||||
Research and development expenses | ||||||||||||
Research and development costs are expensed as incurred. | ||||||||||||
Cash and cash equivalents | ' | |||||||||||
Cash and cash equivalents | ||||||||||||
All highly liquid instruments with an original maturity of three months or less at the date of purchase are considered to be cash equivalents. | ||||||||||||
Investments | ' | |||||||||||
Investments | ||||||||||||
Investments consist of debt securities including corporate obligations and FDIC-insured certificates of deposit with maturities up to eighteen months. The Company classifies these securities as held-to-maturity since it has the positive intent and ability to hold them until maturity. These securities are carried at amortized cost. | ||||||||||||
The held-to-maturity investments consist of the following as of December 31, 2013 and 2012 (in thousands): | ||||||||||||
31-Dec-13 | ||||||||||||
Amortized | Gross | Gross | Aggregate | |||||||||
Cost | Unrecognized | Unrecognized | Fair Value | |||||||||
Gains | Losses | |||||||||||
Current investments: | ||||||||||||
Certificates of deposit | $ | 6,250 | $ | — | $ | — | $ | 6,250 | ||||
Long-term investments: | ||||||||||||
Certificates of deposit | $ | 750 | $ | — | $ | — | $ | 750 | ||||
31-Dec-12 | ||||||||||||
Amortized | Gross | Gross | Aggregate | |||||||||
Cost | Unrecognized | Unrecognized | Fair Value | |||||||||
Gains | Losses | |||||||||||
Current investments: | ||||||||||||
Corporate debt securities | $ | 1,520 | $ | — | $ | — | $ | 1,520 | ||||
Certificates of deposit | 7,000 | — | — | 7,000 | ||||||||
Total current investments | $ | 8,520 | $ | — | $ | — | $ | 8,520 | ||||
Long-term investments: | ||||||||||||
Certificates of deposits | $ | 500 | $ | — | $ | — | $ | 500 | ||||
As of December 31, 2013, the current investments mature within one year and the long-term investments within 18 months. | ||||||||||||
Accounts receivable | ' | |||||||||||
Accounts receivable | ||||||||||||
The majority of the Company’s commercial accounts receivable are due from Original Equipment Manufacturers ("OEM’s”). Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are payable in U.S. dollars, are due within 30-90 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Any account outstanding longer than the contractual payment terms is considered past due. | ||||||||||||
Allowance for doubtful accounts | ' | |||||||||||
Allowance for doubtful accounts | ||||||||||||
The allowance for doubtful accounts reflects an estimate of probable losses inherent in the accounts receivable balance. The allowance is determined based on a variety of factors, including the length of time receivables are past due, historical experience, the customer's current ability to pay its obligation, and the condition of the general economy and the industry as a whole. The Company will record a specific reserve for individual accounts when the Company becomes aware of a customer's inability to meet its financial obligations, deterioration in the customer's operating results or financial position, or deterioration in the customer’s credit history. If circumstances related to customers change, the Company would further adjust estimates of the recoverability of receivables. Account balances, when determined to be uncollectible, are charged against the allowance. | ||||||||||||
Inventory | ' | |||||||||||
Inventory | ||||||||||||
Inventory is stated at the lower of cost or market. Cost is determined using the first-in first-out method. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. The Company regularly reviews inventory quantities on hand, future purchase commitments with the Company’s suppliers, and the estimated utility of the inventory. If the Company review indicates a reduction in utility below carrying value, the inventory is reduced to a new cost basis. | ||||||||||||
Equipment, furniture and leasehold improvements | ' | |||||||||||
Equipment, furniture and leasehold improvements | ||||||||||||
Equipment, furniture and leasehold improvements are stated at cost. Depreciation on equipment is calculated using the straight-line method of depreciation over its estimated useful life. Amortization of leasehold improvements is calculated by using the straight-line method over the shorter of their estimated useful lives or lease terms. Expenditures for maintenance and repairs are charged to expense as incurred. | ||||||||||||
The Company performs impairment tests on its long-lived assets when circumstances indicate that their carrying amounts may not be recoverable. If required, recoverability is tested by comparing the estimated future undiscounted cash flows of the asset or asset group to its carrying value. Impairment losses, if any, are recognized based on the excess of the assets' carrying amounts over their estimated fair values. | ||||||||||||
Intangible assets | ' | |||||||||||
Intangible assets | ||||||||||||
The Company’s intangible assets consist of patents that are amortized over their estimated useful lives of fifteen years using the straight line method. Total intangible amortization expense was approximately $4 thousand for each of the years ended December 31, 2013 and 2012, respectively. The accumulated amortization as of December 31, 2013 was $37 thousand. | ||||||||||||
Advertising | ' | |||||||||||
Advertising | ||||||||||||
Costs related to advertising and promotion of products are charged to sales and marketing expense as incurred. Advertising expense was $0 for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||
Shipping and handling fees | ' | |||||||||||
Shipping and handling fees | ||||||||||||
The Company includes costs related to shipping and handling in cost of goods sold. | ||||||||||||
Income taxes | ' | |||||||||||
Income taxes | ||||||||||||
The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The effect on deferred tax assets and liabilities of changes in tax rates will be recognized as income or expense in the period that the change occurs. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Changes in circumstances, assumptions and clarification of uncertain tax regimes may require changes to any valuation allowances associated with the Company’s deferred tax assets. | ||||||||||||
Due to the Company’s operating loss carryforwards, all tax years remain open to examination by the major taxing jurisdictions to which the Company is subject. In the event that the Company is assessed interest or penalties at some point in the future, it will be classified in the financial statements as tax expense. | ||||||||||||
Income (loss) per common share | ' | |||||||||||
Income (loss) per common share | ||||||||||||
Basic income (loss) per share (“Basic EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period. Diluted income per share (“Diluted EPS”) is computed by dividing the net income (loss) by the weighted average number of common shares outstanding during the reporting period while also giving effect to all potentially dilutive common shares that were outstanding during the reporting period. | ||||||||||||
In accordance with ASC 260, entities that have issued securities other than common stock that participate in dividends with the common stock (“participating securities”) are required to apply the two-class method to compute basic EPS. The two-class method is an earnings allocation method under which EPS is calculated for each class of common stock and participating security as if all such earnings had been distributed during the period. On December 22, 2008, the Company issued Convertible Preferred Stock – Series B which participates in dividends with the Company’s common stock and is therefore considered to be a participating security. The participating convertible preferred stock is not required to absorb any net loss. The Company uses the more dilutive method of calculating the diluted earnings per share, either the two class method or “if-converted” method. Under the “if-converted” method, the convertible preferred stock is assumed to have been converted into common shares at the beginning of the period. | ||||||||||||
For the year ended December 31, 2012, the Company used the two class method to calculate diluted earnings per share. For the year ended December 31, 2013, the Company reported a loss and as a result, basic and diluted loss per common share are the same. | ||||||||||||
The following table summarizes the net income (loss) allocated to common shares and the basic and diluted shares used in the net (loss) income per share computations (in thousands, except share data): | ||||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Net (loss) income | $ | -14,067 | $ | 2,252 | ||||||||
Less dividends attributable to participating securities | — | 755 | ||||||||||
Less income attributable to participating securities | — | — | ||||||||||
Net (loss) income to common shares - basic and diluted | $ | -14,067 | $ | 1,497 | ||||||||
Weighted average shares outstanding for basic earnings per share | 23,639,554 | 23,486,463 | ||||||||||
Dilutive effect of outstanding common stock options and warrants | — | 1,895,662 | ||||||||||
Weighted average shares outstanding for diluted earnings per share | 23,639,554 | 25,382,125 | ||||||||||
Options and warrants | 5,597,186 | 2,884,434 | ||||||||||
Convertible preferred stock | 7,545,333 | — | ||||||||||
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect | 13,142,519 | 2,884,434 | ||||||||||
Comprehensive income | ' | |||||||||||
Comprehensive income | ||||||||||||
Companies are required to report as comprehensive income all changes in equity during a period, except those resulting from investments by owners and distributions to owners, for the period in which they are recognized. Comprehensive income is the total of net income and other comprehensive income items, such as unrealized gains or losses on foreign currency translation adjustments. Comprehensive income must be reported on the face of the annual financial statements. The Company's operations did not give rise to any material items includable in comprehensive income, which were not already in net income for the years ended December 31, 2013 and 2012. Accordingly, the Company's comprehensive income is the same as its net income for the periods presented. | ||||||||||||
Stock-based compensation | ' | |||||||||||
Stock-based compensation | ||||||||||||
The Company uses the fair value method of accounting for share-based compensation arrangements. The fair values of stock options are estimated at the date of grant using the Black-Scholes option valuation model. Stock-based compensation expense is reduced for estimated forfeitures and is amortized over the vesting period using the straight-line method. | ||||||||||||
Concentration of credit risk | ' | |||||||||||
Concentration of credit risk | ||||||||||||
The majority of eMagin’s products are sold throughout North America, Asia, and Europe. Sales to the Company’s recurring customers are generally made on open account while sales to occasional customers are typically made on a prepaid basis. eMagin performs periodic credit evaluations on its recurring customers and generally does not require collateral. An allowance for doubtful accounts is maintained for credit losses. | ||||||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and short-term and long-term investments. The Company’s cash and cash equivalents are deposited with financial institutions which, at times, may exceed federally insured limits. The Company has funds invested in a money market account which are not insured. The Company has Certificates of Deposits (“CDs”) classified as short and long-term investments, which are federally insured. To date, the Company has not experienced any loss associated with this risk. | ||||||||||||
Recently issued accounting standards | ' | |||||||||||
Recently issued accounting standards | ||||||||||||
In July 2013, the FASB issued ASU 2013-11, Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, an amendment to FASB Accounting Standards Codification (“ASC”) Topic 740, Income Taxes (“FASB ASC Topic 740”). The amendment provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for reporting periods after January 1, 2014 and is not expected to have an impact on the Company’s financial statements | ||||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Significant Accounting Policies [Abstract] | ' | |||||||||||
Warranty Liability | ' | |||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Beginning balance | $ | 276 | $ | 281 | ||||||||
Warranty accruals | 425 | 331 | ||||||||||
Warranty usage | -307 | -336 | ||||||||||
Ending balance | $ | 394 | $ | 276 | ||||||||
Held-to-Maturity Investments | ' | |||||||||||
31-Dec-13 | ||||||||||||
Amortized | Gross | Gross | Aggregate | |||||||||
Cost | Unrecognized | Unrecognized | Fair Value | |||||||||
Gains | Losses | |||||||||||
Current investments: | ||||||||||||
Certificates of deposit | $ | 6,250 | $ | — | $ | — | $ | 6,250 | ||||
Long-term investments: | ||||||||||||
Certificates of deposit | $ | 750 | $ | — | $ | — | $ | 750 | ||||
31-Dec-12 | ||||||||||||
Amortized | Gross | Gross | Aggregate | |||||||||
Cost | Unrecognized | Unrecognized | Fair Value | |||||||||
Gains | Losses | |||||||||||
Current investments: | ||||||||||||
Corporate debt securities | $ | 1,520 | $ | — | $ | — | $ | 1,520 | ||||
Certificates of deposit | 7,000 | — | — | 7,000 | ||||||||
Total current investments | $ | 8,520 | $ | — | $ | — | $ | 8,520 | ||||
Long-term investments: | ||||||||||||
Certificates of deposits | $ | 500 | $ | — | $ | — | $ | 500 | ||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Net (loss) income | $ | -14,067 | $ | 2,252 | ||||||||
Less dividends attributable to participating securities | — | 755 | ||||||||||
Less income attributable to participating securities | — | — | ||||||||||
Net (loss) income to common shares - basic and diluted | $ | -14,067 | $ | 1,497 | ||||||||
Weighted average shares outstanding for basic earnings per share | 23,639,554 | 23,486,463 | ||||||||||
Dilutive effect of outstanding common stock options and warrants | — | 1,895,662 | ||||||||||
Weighted average shares outstanding for diluted earnings per share | 23,639,554 | 25,382,125 | ||||||||||
Options and warrants | 5,597,186 | 2,884,434 | ||||||||||
Convertible preferred stock | 7,545,333 | — | ||||||||||
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect | 13,142,519 | 2,884,434 | ||||||||||
Accounts_Receivables_net_Table
Accounts Receivables, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounts Receivables, net [Abstract] | ' | ||||||||
Schedule of Accounts Receivable | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accounts receivable | $ | 4,464 | $ | 5,386 | |||||
Less allowance for doubtful accounts | -145 | -232 | |||||||
Net receivable | $ | 4,319 | $ | 5,154 | |||||
Inventories_net_Tables
Inventories, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories, net [Abstract] | ' | ||||||||
Schedule of Components of Inventories | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 1,905 | $ | 1,745 | |||||
Work in process | 987 | 898 | |||||||
Finished goods | 637 | 651 | |||||||
Total inventories | 3,529 | 3,294 | |||||||
Less inventory reserve | -95 | -71 | |||||||
Total inventories, net | $ | 3,434 | $ | 3,223 | |||||
Prepaid_Expenses_And_Other_Cur1
Prepaid Expenses And Other Current Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Prepaid Expense and Other Current Assets [Abstract] | ' | |||||||
Prepaid Expenses And Other Current Assets | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Vendor prepayments | $ | 52 | $ | 54 | ||||
Other prepaid expenses* | 693 | 599 | ||||||
Total prepaid expenses and other current assets | $ | 745 | $ | 653 | ||||
Equipment_Furniture_And_Leaseh1
Equipment, Furniture And Leasehold Improvements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Equipment, Furniture And Leasehold Improvements [Abstract] | ' | |||||||
Equipment, Furniture and Leasehold Improvements | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Computer hardware and software | $ | 1,391 | $ | 1,151 | ||||
Lab and factory equipment | 10,760 | 10,090 | ||||||
Furniture, fixtures and office equipment | 329 | 324 | ||||||
Assets under capital leases | 66 | 66 | ||||||
Construction in progress | 2,801 | 1,800 | ||||||
Leasehold improvements | 473 | 473 | ||||||
Total equipment, furniture and leasehold improvements | 15,820 | 13,904 | ||||||
Less: accumulated depreciation | -6,701 | -5,805 | ||||||
Equipment, furniture and leasehold improvements, net | $ | 9,119 | $ | 8,099 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Taxes [Abstract] | ' | |||||||
Net (loss) income before income taxes | ' | |||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Domestic | $ | -5,183 | $ | 1,637 | ||||
Total | $ | -5,183 | $ | 1,637 | ||||
Federal and State Income Tax (Benefit) Provision | ' | |||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Current: | $ | $ | ||||||
Federal | 1 | 74 | ||||||
State | 2 | 27 | ||||||
Total current tax expense | 3 | 101 | ||||||
Deferred: | ||||||||
Federal | 8,803 | -709 | ||||||
State | 78 | -7 | ||||||
Total deferred tax expense (benefit) | 8,881 | -716 | ||||||
Total tax expense (benefit) | $ | 8,884 | $ | -615 | ||||
Deferred Tax Assets And Liabilities | ' | |||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Deferred tax assets: | ||||||||
Federal and state net operating loss carryforwards | $ | 36,284 | $ | 34,868 | ||||
Research and development tax credit carryforwards | 1,979 | 1,571 | ||||||
Stock based compensation | 3,665 | 2,995 | ||||||
Other provision and expenses not currently deductible | 755 | 659 | ||||||
Total deferred tax assets | 42,683 | 40,093 | ||||||
Deferred tax liabilities: | ||||||||
Depreciation and amortization | -374 | -7 | ||||||
Prepaid expenses | -191 | -162 | ||||||
Total deferred liabilities | -565 | -169 | ||||||
Less valuation allowance | -42,118 | -31,043 | ||||||
Net deferred tax asset | $ | — | $ | 8,881 | ||||
Federal Net Operating Losses And Tax Credit Carryforwards | ' | |||||||
Net | Research and | |||||||
Operating | Development | |||||||
Losses | Tax Credits | |||||||
(in millions) | ||||||||
2019-2021 | $ | 18.9 | $ | 0.8 | ||||
2022-2025 | 40.2 | — | ||||||
2026-2034 | 50.6 | 1.2 | ||||||
$ | 109.7 | $ | 2.0 | |||||
Reconciliation Of Effective Tax Rate | ' | |||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
U.S. Federal income tax expense at federal statutory rate | 34 | % | 34 | % | ||||
Change in valuation allowance | -214 | -81 | ||||||
Change in effective state tax rate | 1 | 2 | ||||||
Credits | 8 | 7 | ||||||
Other, net | — | 1 | ||||||
Effective tax rate | -171 | % | -37 | % | ||||
Stock_Compensation_Tables
Stock Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Stock Compensation [Abstract] | ' | |||||||||||||
Stock Option Activity | ' | |||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (In Years) | Aggregate Intrinsic Value | |||||||||||
Outstanding at December 31, 2011 | 4,242,251 | $ | 3.93 | |||||||||||
Options granted | 800,203 | 3.50 | ||||||||||||
Options exercised | -160,563 | 1.59 | ||||||||||||
Options forfeited | -172,912 | 6.54 | ||||||||||||
Options cancelled or expired | -23,545 | 6.94 | ||||||||||||
Outstanding at December 31, 2012 | 4,685,434 | $ | 3.82 | |||||||||||
Options granted | 445,502 | 3.45 | ||||||||||||
Options exercised | -254,078 | 1.55 | ||||||||||||
Options forfeited | -129,766 | 4.08 | ||||||||||||
Options cancelled or expired | -149,906 | 6.34 | ||||||||||||
Outstanding at December 31, 2013 | 4,597,186 | $ | 3.82 | 4.53 | $ | 2,357,350 | ||||||||
Vested or expected to vest at December 31, 2013 (1) | 4,566,774 | $ | 3.82 | 4.54 | $ | 2,356,707 | ||||||||
Exercisable at December 31, 2013 | 3,836,920 | $ | 3.54 | 4.71 | $ | 2,341,286 | ||||||||
(1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. | ||||||||||||||
Allocation Of Stock-Based Compensation To Expense Catagories | ' | |||||||||||||
For the Years Ended | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Cost of revenue | $ | 285 | $ | 282 | ||||||||||
Research and development | 566 | 586 | ||||||||||||
Selling, general and administrative | 1,231 | 1,614 | ||||||||||||
Total stock compensation expense | $ | 2,082 | $ | 2,482 | ||||||||||
Key Assumptions Used For Black-Scholes Option Pricing Model | ' | |||||||||||||
For the Years Ended | ||||||||||||||
December 31 , | ||||||||||||||
2013 | 2012 | |||||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||||
Risk free interest rates | 0.35 – 1.48 | % | 0.31 - 0.87 | % | ||||||||||
Expected volatility | 63 to 74 | % | 72 to 81 | % | ||||||||||
Expected term (in years) | 3.5 to 5.0 | 3.0 to 5.5 | ||||||||||||
Concentrations_Tables
Concentrations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Concentrations [Abstract] | ' | ||||||||
Schedule of Revenue by Geographic Location | ' | ||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
North and South America | $ | 17,674 | $ | 21,191 | |||||
Europe, Middle East, and Africa | 7,632 | 6,773 | |||||||
Asia Pacific | 2,684 | 2,596 | |||||||
Total | $ | 27,990 | $ | 30,560 | |||||
For the Years Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Domestic | 62 | % | 67 | % | |||||
International | 38 | % | 33 | % | |||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Quarterly Financial Information [Abstract] | ' | ||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||
Quarters Ended | |||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||
Revenues | $ | 8,503 | $ | 7,028 | $ | 6,329 | $ | 6,130 | |||||
Gross margin | $ | 3,751 | $ | 2,391 | $ | 2,225 | $ | 59 | |||||
Net (loss) income before income tax | $ | 325 | $ | -1,128 | $ | -1,057 | $ | -3,323 | |||||
Net (loss) income | $ | 205 | $ | -1,008 | $ | -4,559 | $ | -8,705 | |||||
Net (loss) income per share - basic | $ | 0.01 | $ | -0.04 | $ | -0.19 | $ | -0.37 | |||||
Net (loss) income per share - diluted | $ | 0.01 | $ | -0.04 | $ | -0.19 | $ | -0.37 | |||||
Weighted average number of shares outstanding - basic | 23,527,072 | 23,586,413 | 23,718,106 | 23,726,626 | |||||||||
Weighted average number of shares outstanding - diluted | 25,332,976 | 23,586,413 | 23,718,106 | 23,726,626 | |||||||||
Quarters Ended | |||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||
Revenues | $ | 6,137 | $ | 8,587 | $ | 7,510 | $ | 8,326 | |||||
Gross margin | $ | 2,681 | $ | 4,513 | $ | 3,649 | $ | 4,102 | |||||
Net (loss) income before income tax | $ | -718 | $ | 918 | $ | 561 | $ | 876 | |||||
Net (loss) income | $ | -452 | $ | 577 | $ | 340 | $ | 1,787 | |||||
Net (loss) income per share - basic | $ | -0.02 | $ | 0.02 | $ | 0.01 | $ | 0.04 | |||||
Net (loss) income per share - diluted | $ | -0.02 | $ | 0.02 | $ | 0.01 | $ | 0.04 | |||||
Weighted average number of shares outstanding - basic | 23,507,172 | 23,469,677 | 23,444,361 | 23,524,541 | |||||||||
Weighted average number of shares outstanding - diluted | 23,507,172 | 25,167,605 | 25,393,035 | 25,445,909 | |||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies [Line Items] | ' | ' |
Standard product warranty period | '1 year | ' |
Advertising expense | $0 | $0 |
Patents [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Estimated useful life | '15 years | ' |
Intangible assets, amortization expense | 4 | 4 |
Intangbile assets, accumulated amortization | $37 | ' |
Minimum [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Accounts receivable, balance due | '30 days | ' |
Maximum [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Accounts receivable, balance due | '90 days | ' |
Significant_Accounting_Policie3
Significant Accounting Policies (Product Warranty) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies [Abstract] | ' | ' |
Beginning balance | $276 | $281 |
Warranty accruals | 425 | 331 |
Warranty usage | -307 | -336 |
Ending balance | $394 | $276 |
Significant_Accounting_Policie4
Significant Accounting Policies (Held-To-Maturity Investments) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Current Investments [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Amortized Cost | ' | $8,520 |
Held-to-maturity investments, Gross Unrecognized Gains | ' | ' |
Held-to-maturity investments, Gross Unrecognized Losses | ' | ' |
Held-to-maturity investments, Aggregate Fair Value | ' | 8,520 |
Investments maturity period | '1 year | ' |
Long-term Investments [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investments maturity period | '18 months | ' |
Corporate Debt Securities [Member] | Current Investments [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Amortized Cost | ' | 1,520 |
Held-to-maturity investments, Gross Unrecognized Gains | ' | ' |
Held-to-maturity investments, Gross Unrecognized Losses | ' | ' |
Held-to-maturity investments, Aggregate Fair Value | ' | 1,520 |
Certificates of Deposit [Member] | Current Investments [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Amortized Cost | 6,250 | 7,000 |
Held-to-maturity investments, Gross Unrecognized Gains | ' | ' |
Held-to-maturity investments, Gross Unrecognized Losses | ' | ' |
Held-to-maturity investments, Aggregate Fair Value | 6,250 | 7,000 |
Certificates of Deposit [Member] | Long-term Investments [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Amortized Cost | 750 | 500 |
Held-to-maturity investments, Gross Unrecognized Gains | ' | ' |
Held-to-maturity investments, Gross Unrecognized Losses | ' | ' |
Held-to-maturity investments, Aggregate Fair Value | $750 | $500 |
Significant_Accounting_Policie5
Significant Accounting Policies (Schedule of Income (Loss) Per Share, Basic and Diluted) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income | ($8,705) | ($4,559) | ($1,008) | $205 | $1,787 | $340 | $577 | ($452) | ($14,067) | $2,252 |
Less dividends attributable to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 755 |
Less income attributable to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income to common shares - basic and diluted | ' | ' | ' | ' | ' | ' | ' | ' | ($14,067) | $1,497 |
Weighted average shares outstanding for basic earnings per share | 23,726,626 | 23,718,106 | 23,586,413 | 23,527,072 | 23,524,541 | 23,444,361 | 23,469,677 | 23,507,172 | 23,639,554 | 23,486,463 |
Dilutive effect of outstanding common stock options and warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,895,662 |
Weighted average shares outstanding for diluted earnings per share | 23,726,626 | 23,718,106 | 23,586,413 | 25,332,976 | 25,445,909 | 25,393,035 | 25,167,605 | 23,507,172 | 23,639,554 | 25,382,125 |
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect | ' | ' | ' | ' | ' | ' | ' | ' | 13,142,519 | 2,884,434 |
Options and Warrants [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect | ' | ' | ' | ' | ' | ' | ' | ' | 5,597,186 | 2,884,434 |
Convertible Preferred Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect | ' | ' | ' | ' | ' | ' | ' | ' | 7,545,333 | ' |
Accounts_Receivables_net_Detai
Accounts Receivables, net (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Receivables, net [Abstract] | ' | ' |
Accounts receivable | $4,464 | $5,386 |
Less allowance for doubtful accounts | -145 | -232 |
Net receivable | $4,319 | $5,154 |
Inventories_net_Details
Inventories, net (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories, net [Abstract] | ' | ' |
Raw materials | $1,905 | $1,745 |
Work in process | 987 | 898 |
Finished goods | 637 | 651 |
Total inventories | 3,529 | 3,294 |
Less inventory reserve | -95 | -71 |
Total inventories, net | $3,434 | $3,223 |
Prepaid_Expenses_And_Other_Cur2
Prepaid Expenses And Other Current Assets (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Concentration Risk [Line Items] | ' | ' | ||
Total prepaid expenses and other current assets | $745 | $653 | ||
Prepaid Expenses And Other Current Assets [Member] | ' | ' | ||
Concentration Risk [Line Items] | ' | ' | ||
Vendor prepayments | 52 | 54 | ||
Other prepaid expenses | 693 | [1] | 599 | [1] |
Total prepaid expenses and other current assets | $745 | $653 | ||
Other prepaid expenses in excess of 5% of current assets | 0.00% | 0.00% | ||
[1] | No individual amounts greater than 5% of current assets. |
Equipment_Furniture_And_Leaseh2
Equipment, Furniture And Leasehold Improvements (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Total equipment, furniture and leasehold improvements | $15,820 | $13,904 |
Less: accumulated depreciation | -6,701 | -5,805 |
Equipment, furniture and leasehold improvements, net | 9,119 | 8,099 |
Depreciation expense | 900 | 364 |
Computer Hardware And Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total equipment, furniture and leasehold improvements | 1,391 | 1,151 |
Lab And Factory Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total equipment, furniture and leasehold improvements | 10,760 | 10,090 |
Furniture, Fixtures, And Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total equipment, furniture and leasehold improvements | 329 | 324 |
Assets Under Capital Leases [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total equipment, furniture and leasehold improvements | 66 | 66 |
Construction In Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total equipment, furniture and leasehold improvements | 2,801 | 1,800 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total equipment, furniture and leasehold improvements | $473 | $473 |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Line of Credit Facility [Line Items] | ' | ' |
Interest paid, capitalized or accrued | $42,000 | $42,000 |
Line of credit facility, borrowing capacity, description | 'the Company may borrow up to a maximum of $3 million based on a borrowing base equivalent of 75% of eligible accounts receivable. | ' |
Line of credit facility, maximum borrowing capacity | 3,000,000 | ' |
Eligible accounts receivable percentage | 75.00% | ' |
Monthly interest payment required | 1,000 | ' |
Early termination fee | 6,000 | ' |
Amortizable loan fees | 30,000 | 30,000 |
Outstanding amount on credit facility | $0 | ' |
Amended Credit Facility [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Interest rate plus Prime | 4.00% | ' |
Minimum interest rate | 7.25% | ' |
Scenario, Forecast [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Renewal date for credit facility | 1-Sep-14 | ' |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2011 | |
Income Taxes [Abstract] | ' | ' | ' | ' |
Valuation allowance increase (decrease) | ' | ($700,000) | ($9,100,000) | ' |
Deferred tax asset that will more than likely be realized | ' | 8,900,000 | ' | 8,200,000 |
Tax expense (benefit) | 8,881,000 | -716,000 | -9,100,000 | ' |
Net deferred tax assets | 42,100,000 | 39,900,000 | ' | ' |
Contributed capital adjustment if future tax benefits are subsequently recognized | 1,200,000 | ' | ' | ' |
Federal net operating loss carryforwards | 109,700,000 | ' | ' | ' |
State net operating loss carryforwards | 2,400,000 | ' | ' | ' |
Research and development tax credit carryforwards | $1,979,000 | $1,571,000 | ' | ' |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income before Income Tax) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | ($5,183) | $1,637 |
(Loss) income before income tax | ($3,323) | ($1,057) | ($1,128) | $325 | $876 | $561 | $918 | ($718) | ($5,183) | $1,637 |
Income_Taxes_Schedule_of_Feder
Income Taxes (Schedule of Federal and State Income Tax (Benefit) Provision) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Income Taxes [Abstract] | ' | ' | ' |
Federal | $1 | $74 | ' |
State | 2 | 27 | ' |
Total current tax expense | 3 | 101 | ' |
Federal | 8,803 | -709 | ' |
State | 78 | -7 | ' |
Total deferred tax expense (benefit) | 8,881 | -716 | -9,100 |
Total tax expense (benefit) | $8,884 | ($615) | ' |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Taxes [Abstract] | ' | ' |
Federal and state net operating loss carryforwards | $36,284 | $34,868 |
Research and development tax credit carryforwards | 1,979 | 1,571 |
Stock based compensation | 3,665 | 2,995 |
Other provisions and expenses not currently deductible | 755 | 659 |
Total deferred tax assets | 42,683 | 40,093 |
Depreciation and amortization | -374 | -7 |
Prepaid expenses | -191 | -162 |
Total deferred liabilities | -565 | -169 |
Less valuation allowance | -42,118 | -31,043 |
Net deferred tax asset | ' | $8,881 |
Income_Taxes_Federal_Net_Opera
Income Taxes (Federal Net Operating Losses And Tax Credit Carryforwards) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net Operating Losses | $109,700,000 | ' |
Research and Development Tax Credits | 1,979,000 | 1,571,000 |
2019-2021 [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net Operating Losses | 18,900,000 | ' |
Research and Development Tax Credits | 800,000 | ' |
2022-2025 [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net Operating Losses | 40,200,000 | ' |
2026-2034 [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net Operating Losses | 50,600,000 | ' |
Research and Development Tax Credits | $1,200,000 | ' |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Effective Tax Rate) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' | ' |
U.S. Federal income tax expense at federal statutory rate | 34.00% | 34.00% |
Change in valuation allowance | -214.00% | -81.00% |
Change in effective state tax rate | 1.00% | 2.00% |
Credits | 8.00% | 7.00% |
Other, net | ' | 1.00% |
Effective tax rate | -171.00% | -37.00% |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Shareholders' Equity [Line Items] | ' | ' |
Proceeds from stock options exercised | $394,000 | $255,000 |
Exercise of common stock options, shares | 254,078 | 160,563 |
Shares repurchased | 12,066 | 125,000 |
Average cost of shares purchased | $2.99 | $2.95 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $2,000,000 | ' |
Series B Convertible Preferred Stock [Member] | ' | ' |
Shareholders' Equity [Line Items] | ' | ' |
Preferred stock, shares issued | 5,659 | 5,659 |
Preferred stock, shares outstanding | 5,659 | 5,659 |
Stock Options [Member] | ' | ' |
Shareholders' Equity [Line Items] | ' | ' |
Exercise of common stock options, shares | 254,078 | 160,563 |
Stock_Compensation_Narrative_D
Stock Compensation (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 05, 2008 | Dec. 31, 2013 | Nov. 03, 2011 | Dec. 31, 2013 | 17-May-13 | Dec. 31, 2013 | ||
Maximum [Member] | The 2005 Plan [Member] | The 2003 Plan [Member] | The 2008 Plan [Member] | The 2008 Plan [Member] | The 2011 Plan [Member] | The 2011 Plan [Member] | The 2013 Plan [Member] | The 2013 Plan [Member] | The 2011, 2008 and 2003 Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Shares authorized | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | 1,400,000 | ' | 1,500,000 | ' | |
Shares available for grant | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | 1,696,163 | |
Employee purchase price, percentage of fair market value | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | |
Options granted, shares | 445,502 | 800,203 | ' | ' | 385,937 | 0 | ' | 0 | ' | 59,565 | ' | ' | |
Ratable vesting period | '4 years 6 months 15 days | [1] | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options in-the-money | 1,597,720 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Closing stock price | $2.83 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Expected dividend yield | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Intrinsic value of options exercised | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Excess tax benefit | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Unrecognized stock option compensation net of for feitures | $1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Unrecognized compensation cost, weighted average period of recognition | '1 year 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Weighted average fair value per share for options granted | $1.81 | $1.95 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Dividend yield | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Warrant shares | 1,000,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Warrants exercise price per share | 1.03 | 1.03 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. |
Stock_Compensation_Stock_Optio
Stock Compensation (Stock Option Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
Stock Compensation [Abstract] | ' | ' | |
Outstanding, shares | 4,685,434 | 4,242,251 | |
Options granted, shares | 445,502 | 800,203 | |
Options exercised, shares | -254,078 | -160,563 | |
Options forfeited, shares | -129,766 | -172,912 | |
Options cancelled or expired, shares | -149,906 | -23,545 | |
Outstanding, shares | 4,597,186 | 4,685,434 | |
Vested or expected to vest, shares | 4,566,774 | [1] | ' |
Exercisable, shares | 3,836,920 | ' | |
Outstanding, exercise price | $3.82 | $3.93 | |
Options granted, exercise price | $3.45 | $3.50 | |
Options exercised, exercise price | $1.55 | $1.59 | |
Options forfeited, exercise price | $4.08 | $6.54 | |
Options cancelled or expired, exercise price | $6.34 | $6.94 | |
Outstanding, exercise price | $3.82 | $3.82 | |
Vested or expected to vest, exercise price | $3.82 | [1] | ' |
Exercisable, exercise price | $3.54 | ' | |
Outstanding, contractual life | '4 years 6 months 11 days | ' | |
Vested or expected to vest, contractual life | '4 years 6 months 15 days | [1] | ' |
Exercisable, contractual life | '4 years 8 months 16 days | ' | |
Outstanding, intrinsic value | $2,357,350 | ' | |
Vested or expected to vest, intrinsic value | 2,356,707 | [1] | ' |
Exercisable, intrinsic value | $2,341,286 | ' | |
[1] | The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. |
Stock_Compensation_Allocation_
Stock Compensation (Allocation Of Stock-Based Compensation To Expense Catagories) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Total stock compensation expense | $2,082 | $2,482 |
Cost of Sales [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Total stock compensation expense | 285 | 282 |
Research and Development Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Total stock compensation expense | 566 | 586 |
Selling, General and Administrative Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Total stock compensation expense | $1,231 | $1,614 |
Stock_Compensation_Key_Assumpt
Stock Compensation (Key Assumptions Used For Black-Scholes Option Pricing Model) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Dividend yield | 0.00% | 0.00% |
Risk free interest rates, minimum | 0.35% | 0.31% |
Risk free interest rates, maximum | 1.48% | 0.87% |
Expected volatility, minimum | 63.00% | 72.00% |
Expected volatility, maximum | 74.00% | 81.00% |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected term (in years) | '3 years 6 months | '3 years |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected term (in years) | '5 years | '5 years 6 months |
Commitments_And_Contingencies_
Commitments And Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | 20 Months Ended | 12 Months Ended | 24 Months Ended | 36 Months Ended | 24 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | 8-May-12 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2016 | 13-May-15 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Chief Financial Officer And Treasurer [Member] | Chief Financial Officer And Treasurer [Member] | Chief Financial Officer And Treasurer [Member] | Senior Vice President, General Counsel and Secretary [Member] | First Third Of Options Vest [Member] | Second Third Of Options Vest [Member] | Final Third Of Options Vest [Member] | One Year From Date Of Employment Agreement [Member] | Two Years From Date Of Employment Agreement [Member] | Three Years From Date Of Employment Agreement [Member] | Royalty Agreement [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Hopewell Junction, New York [Member] | Bellevue, Washington [Member] | Santa Clara, California [Member] | |||
Senior Vice President, General Counsel and Secretary [Member] | Senior Vice President, General Counsel and Secretary [Member] | Senior Vice President, General Counsel and Secretary [Member] | Senior Vice President, General Counsel and Secretary [Member] | Senior Vice President, General Counsel and Secretary [Member] | Senior Vice President, General Counsel and Secretary [Member] | Global OLED Technology [Member] | Chief Financial Officer And Treasurer [Member] | President and Chief Executive Officer [Member] | Senior Vice President, General Counsel and Secretary [Member] | Maximum [Member] | sqft | sqft | sqft | |||||||
Chief Financial Officer And Treasurer [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimate of loss contingency | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000 | ' | ' | ' | ' | ' | ' | ' |
Selling, general and administrative expense | 8,605,000 | 8,584,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' |
Area of leased real estate property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,000 | 6,300 | 2,400 |
Lease expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-May-14 | 31-Aug-14 | 31-Dec-14 |
Lease extension option time frame | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Future minimum lease payments through 2014 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expense | 1,200,000 | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution limitation to percentage of compensation | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employer contributions | 100,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equipment purchases commitments | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual base salary | ' | ' | 318,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 335,000 | 410,000 | 234,000 | ' | ' | ' | ' |
Employee relocation related expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' |
Stock options, value | $1,100,000 | ' | ' | $123,600 | $82,400 | $50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, purchase price per share | ' | ' | ' | ' | ' | $3.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | '1 year | '2 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.33% | 33.33% | 33.33% | ' | ' | ' | ' | ' | ' | ' | ' |
Salary payment entitlement threshold, number of days | '120 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, grant date fair value per share | $1.81 | $1.95 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentrations_Narrative_Detai
Concentrations (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
customer | customer | |
One Customer [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Number of customers | ' | 1 |
Revenue, percentage | ' | 17.00% |
Two Customers [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Number of customers | 2 | ' |
Revenue, percentage | 22.00% | ' |
Two Additional Customers [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Number of customers | 2 | 2 |
Ten Customers [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Number of customers | 10 | 10 |
Accounts Receivable [Member] | One Customer [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Accounts receivable, percentage | ' | 8.00% |
Accounts Receivable [Member] | Two Customers [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Accounts receivable, percentage | 17.00% | ' |
Accounts Receivable [Member] | Two Additional Customers [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Accounts receivable, percentage | 26.00% | 29.00% |
Accounts Receivable [Member] | Ten Customers [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Accounts receivable, percentage | 70.00% | 75.00% |
Concentrations_Revenue_By_Geog
Concentrations (Revenue By Geographic Location) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $6,130 | $6,329 | $7,028 | $8,503 | $8,326 | $7,510 | $8,587 | $6,137 | $27,990 | $30,560 |
North And South America [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 17,674 | 21,191 |
Europe, Middle East, And Africa [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 7,632 | 6,773 |
Asia Pacific [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $2,684 | $2,596 |
Sales [Member] | Domestic [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue by geographic location, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 62.00% | 67.00% |
Sales [Member] | International [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue by geographic location, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 38.00% | 33.00% |
Quarterly_Financial_Informatio2
Quarterly Financial Information Disclosure (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $6,130 | $6,329 | $7,028 | $8,503 | $8,326 | $7,510 | $8,587 | $6,137 | $27,990 | $30,560 |
Gross margin | 59 | 2,225 | 2,391 | 3,751 | 4,102 | 3,649 | 4,513 | 2,681 | 8,426 | 14,945 |
Net (loss) income before income tax | -3,323 | -1,057 | -1,128 | 325 | 876 | 561 | 918 | -718 | -5,183 | 1,637 |
Net (loss) income | ($8,705) | ($4,559) | ($1,008) | $205 | $1,787 | $340 | $577 | ($452) | ($14,067) | $2,252 |
Net (loss) income per share - basic | ($0.37) | ($0.19) | ($0.04) | $0.01 | $0.04 | $0.01 | $0.02 | ($0.02) | ($0.60) | $0.06 |
Net (loss) income per share - diluted | ($0.37) | ($0.19) | ($0.04) | $0.01 | $0.04 | $0.01 | $0.02 | ($0.02) | ($0.60) | $0.06 |
Weighted average number of shares outstanding - basic | 23,726,626 | 23,718,106 | 23,586,413 | 23,527,072 | 23,524,541 | 23,444,361 | 23,469,677 | 23,507,172 | 23,639,554 | 23,486,463 |
Weighted average number of shares outstanding - diluted | 23,726,626 | 23,718,106 | 23,586,413 | 25,332,976 | 25,445,909 | 25,393,035 | 25,167,605 | 23,507,172 | 23,639,554 | 25,382,125 |
Subsequent_Events_Details
Subsequent Events (Details) | 12 Months Ended | ||||
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
One Customer [Member] | One Customer [Member] | One Customer [Member] | Three Customers [Member] | Three Customers [Member] | |
customer | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | |
Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | ||
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||
Delayed Shipments [Member] | Delayed Shipments [Member] | ||||
customer | customer | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Number of customers | 1 | ' | 1 | ' | 3 |
Revenue, percentage | 17.00% | 10.00% | ' | 19.00% | ' |