Emagin (EMAN) 10-Q 13 May 14 2014 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 30, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Mar-14	'
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'
Entity Registrant Name	'EMAGIN CORP	'
Entity Central Index Key	'0001046995	'
Entity Filer Category	'Smaller Reporting Company	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	23,989,902

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
ASSETS	'	'
Cash and cash equivalents	$2,063	$4,032
Investments	5,750	6,250
Accounts receivable, net	4,753	4,319
Inventories, net	4,740	3,434
Prepaid expenses and other current assets	773	745
Total current assets	18,079	18,780
Long-term investments	500	750
Equipment, furniture and leasehold improvements, net	9,196	9,119
Other assets	27	27
Total assets	27,802	28,676
LIABILITIES AND SHAREHOLDERS' EQUITY	'	'
Accounts payable	1,830	1,470
Accrued expenses	2,656	2,812
Other current liabilities	380	395
Total current liabilities	4,866	4,677
Commitments and contingencies (Note 8)	'	'
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 March 31, 2014 and December 31, 2013	'	'
Common stock, $.001 par value: authorized 200,000,000 shares, issued and outstanding, 23,989,902 shares as of March 31, 2014 and 23,928,619 as of December 31, 2013	24	24
Additional paid in capital	226,606	226,051
Accumulated deficit	-203,194	-201,576
Treasury stock, 162,066 shares as of March 31, 2014 and December 31, 2013	-500	-500
Total shareholders' equity	22,936	23,999
Total liabilities and shareholders' equity	$27,802	$28,676

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
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	23,989,902	23,928,619
Common stock, shares outstanding	23,989,902	23,928,619
Treasury stock, shares	162,066	162,066
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

Condensed_Consolidated_Stateme

Condensed Consolidated Statements Of Operations (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Revenue:	'	'
Product	$6,259	$8,129
Contract	19	374
Total revenue, net	6,278	8,503
Cost of goods sold:	'	'
Product	4,332	4,537
Contract	15	215
Total cost of goods sold	4,347	4,752
Gross profit	1,931	3,751
Operating expenses:	'	'
Research and development	1,426	1,190
Selling, general and administrative	2,119	2,239
Total operating expenses	3,545	3,429
(Loss) Income from operations	-1,614	322
Other income (expense):	'	'
Interest expense, net	-11	-11
Other income, net	7	14
Total other income (expense), net	-4	3
(Loss) income before provision for income taxes	-1,618	325
Provision for income taxes	'	120
Net (loss) income	-1,618	205
Less net income allocated to participating securities	'	50
Net (loss) income allocated to common shares	($1,618)	$155
(Loss) income per share, basic	($0.07)	$0.01
(Loss) income per share, diluted	($0.07)	$0.01
Weighted average number of shares outstanding:	'	'
Basic	23,778,110	23,527,072
Diluted	23,778,110	25,332,976

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements Of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net (loss) income	($1,618)	$205
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:	'	'
Depreciation and amortization	256	204
Amortization of bond premium	'	10
Inventory reserve	175	29
Stock-based compensation	490	619
Loss on sale of asset	7	'
Changes in operating assets and liabilities:	'	'
Accounts receivable	-434	-471
Inventories, net	-1,482	50
Prepaid expenses and other current assets	-28	-155
Accounts payable, accrued expenses, and other current liabilities	189	632
Net cash (used in) provided by operating activities	-2,445	1,123
Cash flows from investing activities:	'	'
Purchase of equipment	-346	-150
Proceeds from sale of asset	7	'
Maturities of investments	2,750	3,000
Purchase of investments	-2,000	-2,750
Net cash provided by investing activities	411	100
Cash flows from financing activities:	'	'
Proceeds from exercise of stock options	65	24
Net cash provided by financing activities	65	24
Net (decrease) increase in cash and cash equivalents	-1,969	1,247
Cash and cash equivalents, beginning of period	4,032	4,385
Cash and cash equivalents, end of period	2,063	5,632
Cash paid for interest	3	3
Cash paid for taxes	'	$20

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2014
Summary of Significant Accounting Policies [Abstract]	'
Summary of Significant Accounting Policies	'
	Note 1:   Summary of Significant Accounting Policies
	The Business
	eMagin Corporation (the “Company”) designs, develops, manufactures, and markets OLED (organic light emitting diode) on silicon microdisplays and virtual imaging products which utilize OLED microdisplays. The Company’s products are sold mainly in North America, Asia, and Europe.
	Basis of Presentation
	In the opinion of management, the accompanying unaudited condensed consolidated financial statements of eMagin Corporation and its subsidiary reflect all adjustments, including normal recurring accruals, necessary for a fair presentation.  All significant intercompany balances and transactions have been eliminated in consolidation.  Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the Securities and Exchange Commission.  The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited condensed consolidated financial statements are read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.  The results of operations for the period ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year.  The consolidated condensed financial statements of December 31, 2013 are derived from audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.
	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 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 on product sales is recognized when persuasive evidence of an arrangement exists, such as when a purchase order or contract is received from the customer, the price is fixed, title and risk of loss to the goods has changed and there is a reasonable assurance of collection of the sales proceeds. We obtain written purchase authorizations from our customers for a specified amount of product at a specified price and consider delivery to have occurred at the time of shipment.
	Revenues from research and development activities 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, labor and subcontractor 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.
	New Accounting Pronouncement
	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.  This new guidance was effective for annual and interim periods beginning after December 15, 2013.  The Company adopted ASU 2013-11 effective January 1, 2014 and it did not have a significant impact on the Company’s financial statements.
	Investments
	Investments consist of FDIC-insured certificates of deposit (“CDs”) which are classified as held-to-maturity since the Company has the positive intent and ability to hold them until maturity. The CDs are carried at cost which approximates fair value.  As of March 31, 2014, the current investments mature within one year and the long-term investments within 14 months.
	Net (Loss) Income per Common Share
	Basic (loss) income per share is computed using the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of common stock equivalent shares, such as stock options, warrants, and convertible preferred stock. Diluted (loss) income per share is computed using the weighted average number of common shares outstanding and potentially dilutive common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is anti-dilutive.
	The Company’s Series B Convertible Preferred stock (“Preferred Stock – Series B”) is considered a participating security as the preferred stock participates in dividends with the common stock, which requires the use of the two-class method when computing basic and diluted earnings per share.  The Preferred Stock – Series B is not required to absorb any net loss. Though the Company paid a one-time special dividend in 2012, the Company does not expect to continue to pay dividends on its common or preferred stock in the near future.
	For the three months ended March 31, 2014, the Company has reported a net loss and as a result, basic and diluted net loss per common share are the same.  Therefore, in calculating net loss per share amounts, shares underlying the potentially dilutive common stock equivalents were excluded from the calculation of diluted net income per common share because their effect was anti-dilutive.
	The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share data) for the three months ended March 31, 2013:
		Three Months Ended
		31-Mar-13
		(unaudited)
		Income			Shares	Per Share Amount
	Basic EPS
	Net Income	$	205
	Income allocated to participating securities		50
	Income allocated to common shares	$	155		23,527,072	$	0.01
	Diluted EPS
	Diluted potential common shares (1)				1,805,904
	Income allocated to common shares	$	155		25,332,976	$	0.01
	(1) Dilutive potential common shares consist of shares of common stock issuable upon exercise of outstanding stock options and warrants.
	The following is a table of the potentially dilutive common stock equivalents for the three month periods ended March 31, 2014 and 2013 that were not included in diluted EPS as their effect would be anti-dilutive:
			Three Months Ended March 31,
			2014	2013
	Options and warrants		5,672,198	2,841,215
	Convertible preferred stock		7,545,333	—
	Total potentially dilutive common stock equivalents		13,217,531	2,841,215

Accounts_Receivables_net

Accounts Receivables, net	3 Months Ended
	Mar. 31, 2014
Accounts Receivables, net [Abstract]	'
Accounts Receivables, net	'
	Note 2:  Accounts Receivable, net
	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 consisted of the following (in thousands):
		31-Mar-14		December 31,
		(unaudited)		2013
	Accounts receivable	$	4,898	$	4,464
	Less allowance for doubtful accounts		-145		-145
	Net receivable	$	4,753	$	4,319

Inventories_net

Inventories, net	3 Months Ended
	Mar. 31, 2014
Inventories, net [Abstract]	'
Inventories, net	'
	Note 3:  Inventories, net
	The components of inventories are as follows (in thousands):
		31-Mar-14		December 31,
		(unaudited)		2013
	Raw materials	$	2,234	$	1,905
	Work in process		2,059		987
	Finished goods		717		637
	Total inventories		5,010		3,529
	Less inventory reserve		-270		-95
	Total inventories, net	$	4,740	$	3,434

Line_of_Credit

Line of Credit	3 Months Ended
	Mar. 31, 2014
Line of Credit [Abstract]	'
Line of Credit	'
	Note 4:  Line of Credit
	At March 31, 2014, the Company had 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 are: interest rate is Prime plus 4% but not less than 7.25%, the minimum monthly interest payment is $1,000 and the early termination fee is $6,000.  The renewal date of the line of credit is September 1, 2014.  The Company’s obligations under the credit facility are secured by its assets.  For the three months ended March 31, 2014 and 2013, the Company had not borrowed on its line of credit.

Stockbased_Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2014
Stock-based Compensation [Abstract]	'
Stock-based Compensation	'
	Note 5:  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 our expense categories for the three month periods ended March 31, 2014 and 2013 (in thousands):
		Three Months Ended
		March 31,
		(unaudited)
		2014			2013
	Cost of revenue	$	70		$	79
	Research and development		143			155
	Selling, general and administrative		277			385
	Total stock compensation expense	$	490		$	619
	At March 31, 2014, total unrecognized compensation costs related to stock options was approximately $0.9 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 2 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 Three Months Ended
		March 31,
		2014		2013
	Dividend yield	0	%	0	%
	Risk free interest rates	0.78 – 1.61	%	0.37 - 0.88	%
	Expected  volatility	62.9 to 67.8	%	71.6 to 73.8	%
	Expected term (in years)	3.5 to 5.0		3.5 to 5.0
	The Company paid a special one-time dividend in 2012  however, the Company does not expect to continue to pay dividends in the near future and therefore the Company 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.
	A summary of the Company’s stock option activity for the three months ended March 31, 2014 is presented in the following table (unaudited):
		Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (In Years)		Aggregate Intrinsic Value
	Outstanding at December 31, 2013		4,597,186		$	3.82
	Options granted		151,175			3.24
	Options exercised		-61,283			1.05
	Options forfeited		-13,780			3.72
	Options cancelled or expired		-1,100			4.15
	Outstanding at March 31, 2014		4,672,198		$	3.84		4.42	$	1,800,311
	Vested or expected to vest at March 31, 2014 (1)		4,651,155		$	3.84		4.42	$	1,800,227
	Exercisable at March 31, 2014		4,156,181		$	3.83		4.40	$	1,798,214
	(1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options.
	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.  For the three months ended March 31, 2014, the aggregate intrinsic value of options exercised was approximately $84 thousand.   The Company issues new shares of common stock upon exercise of stock options.

Shareholders_Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2014
Shareholders' Equity [Abstract]	'
Shareholders' Equity	'
	Note 6:  Shareholders’ Equity
	Preferred Stock - Series B Convertible Preferred Stock (“the Preferred Stock – Series B”)
	As of March 31, 2014 and December 31, 2013, there were 5,659 shares of Preferred Stock – Series B issued and outstanding.
	Common Stock
	The Company received approximately $65 thousand for the exercise of 61,283 stock options in the three months ended March 31, 2014. The Company received approximately $24 thousand for the exercise of 12,655 stock options in the three months ended March 31, 2013.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2014
Income Taxes [Abstract]	'
Income Taxes	'
	Note 7:  Income Taxes
	The Company’s effective tax rate is calculated quarterly based upon current assumptions relating to the full year’s estimated operating results and various tax-related items. The Company’s effective tax rate for the three months ended March 31, 2014 and 2013 was 0% and 36.9%, respectively.  The difference between the effective tax rate of 0% and the U.S. federal statutory rate of 34% for the three months ended March 31, 2014 was primarily due to the increase of the valuation allowance on deferred tax assets. The difference between the effective tax rate of 36.9% and the U.S. federal statutory rate of 34% for the three months ended March 31, 2013  was primarily due to the impact of state income taxes and alternative minimum tax.
	At December 31, 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 2013 operating loss and projected cumulative loss through 2014, it was more likely than not that none of its deferred tax assets would be realized and therefore, recorded a full valuation allowance. As the Company incurred an operating loss for the three month period ended March 31, 2014 and is still projecting a cumulative loss through 2014, it is still more likely than not that none of its deferred tax assets would be realized and therefore, the Company continued to record a full valuation allowance.  The Company’s net operating loss carry forward amounts substantially expire in 2028.
	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.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2014
Commitments and Contingencies [Abstract]	'
Commitments and Contingencies	'
	Note 8:  Commitments and Contingencies
	Royalty Payments
	On January 13, 2014, Global OLED Technology, LLC (“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 a certain license agreement.  GOT also sought a declaratory judgment mandating 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 in attempts to amicably resolve the dispute between the parties without the costs associated with a lengthy litigation.  The Company recorded a $0.5 million liability on the Company’s Consolidated Balance Sheets as of December 31, 2013 and March 31, 2014, respectively, and a selling, general and administrative expense on the Company’s Consolidated Statements of Operations for the year ended December 31, 2013 as a reasonable estimate of the loss contingency related to this matter.
	On April 29, 2014, the Company and GOT entered into a settlement agreement resolving the matter in full.  Pursuant to the settlement agreement, the parties agreed to terminate the patent license agreements entered into in 1998 and 1999, respectively, between FED Corporation (predecessor to the Company) and Eastman Kodak Company (predecessor to GOT), in exchange for mutual releases and the payment by the Company of a one-time settlement amount, substantially all of which was recorded as an expense by the Company as described above. In addition, the parties agreed to dismiss with prejudice the lawsuit commenced by GOT in January 2014.
	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. In May 2014, the Company renewed its lease agreement with IBM until May 31, 2019.  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 $302 thousand and $303 thousand, respectively, for the three months ended March 31, 2014 and 2013.
	Equipment Purchase Commitments
	The Company has committed to equipment purchases of approximately $0.6 million at March 31, 2014.

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2014
Concentrations [Abstract]	'
Concentrations	'
	Note 9:  Concentrations
	For the three months ended March 31, 2014 and 2013, approximately 47% and 62%, respectively, of the Company’s net revenues were derived from customers in the United States and approximately 53% and 38%, respectively, of the Company’s net revenues were derived from international customers.   For the three months ended March 31, 2014, there was no customer that accounted for more than 10% of its net revenue and for the three months ended March 31, 2013, three customers accounted for 36% of its net revenue.
	The following is a schedule of revenue by geographic location (in thousands):
		Three Months Ended
		March 31,
		(unaudited)
		2014		2013
	North and South America	$	3,006	$	5,622
	Europe, Middle East, and Africa		2,395		2,107
	Asia Pacific		877		774
	Total	$	6,278	$	8,503
	The Company purchases principally all of its silicon wafers from a single supplier located in Taiwan.

Summary_of_Signiicant_Accounti

Summary of Signiicant Accounting Policies (Policy)	3 Months Ended
	Mar. 31, 2014
Summary of Significant Accounting Policies [Abstract]	'
Basis of Presentation	'
	Basis of Presentation
	In the opinion of management, the accompanying unaudited condensed consolidated financial statements of eMagin Corporation and its subsidiary reflect all adjustments, including normal recurring accruals, necessary for a fair presentation.  All significant intercompany balances and transactions have been eliminated in consolidation.  Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the Securities and Exchange Commission.  The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited condensed consolidated financial statements are read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.  The results of operations for the period ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year.  The consolidated condensed financial statements of December 31, 2013 are derived from audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.
	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 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 on product sales is recognized when persuasive evidence of an arrangement exists, such as when a purchase order or contract is received from the customer, the price is fixed, title and risk of loss to the goods has changed and there is a reasonable assurance of collection of the sales proceeds. We obtain written purchase authorizations from our customers for a specified amount of product at a specified price and consider delivery to have occurred at the time of shipment.
	Revenues from research and development activities 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, labor and subcontractor 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.
New Accounting Pronouncements	'
	New Accounting Pronouncement
	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.  This new guidance was effective for annual and interim periods beginning after December 15, 2013.  The Company adopted ASU 2013-11 effective January 1, 2014 and it did not have a significant impact on the Company’s financial statements.
Investments	'
	Investments
	Investments consist of FDIC-insured certificates of deposit (“CDs”) which are classified as held-to-maturity since the Company has the positive intent and ability to hold them until maturity. The CDs are carried at cost which approximates fair value.  As of March 31, 2014, the current investments mature within one year and the long-term investments within 14 months.
Net (Loss) Income per Common Share	'
	Net (Loss) Income per Common Share
	Basic (loss) income per share is computed using the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of common stock equivalent shares, such as stock options, warrants, and convertible preferred stock. Diluted (loss) income per share is computed using the weighted average number of common shares outstanding and potentially dilutive common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is anti-dilutive.
	The Company’s Series B Convertible Preferred stock (“Preferred Stock – Series B”) is considered a participating security as the preferred stock participates in dividends with the common stock, which requires the use of the two-class method when computing basic and diluted earnings per share.  The Preferred Stock – Series B is not required to absorb any net loss. Though the Company paid a one-time special dividend in 2012, the Company does not expect to continue to pay dividends on its common or preferred stock in the near future.
	For the three months ended March 31, 2014, the Company has reported a net loss and as a result, basic and diluted net loss per common share are the same.  Therefore, in calculating net loss per share amounts, shares underlying the potentially dilutive common stock equivalents were excluded from the calculation of diluted net income per common share because their effect was anti-dilutive.
	The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share data) for the three months ended March 31, 2013:
		Three Months Ended
		31-Mar-13
		(unaudited)
		Income			Shares	Per Share Amount
	Basic EPS
	Net Income	$	205
	Income allocated to participating securities		50
	Income allocated to common shares	$	155		23,527,072	$	0.01
	Diluted EPS
	Diluted potential common shares (1)				1,805,904
	Income allocated to common shares	$	155		25,332,976	$	0.01
	(1) Dilutive potential common shares consist of shares of common stock issuable upon exercise of outstanding stock options and warrants.
	The following is a table of the potentially dilutive common stock equivalents for the three month periods ended March 31, 2014 and 2013 that were not included in diluted EPS as their effect would be anti-dilutive:
			Three Months Ended March 31,
			2014	2013
	Options and warrants		5,672,198	2,841,215
	Convertible preferred stock		7,545,333	—
	Total potentially dilutive common stock equivalents		13,217,531	2,841,215

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2014
Summary of Significant Accounting Policies [Abstract]	'
Schedule of Earnings Per Share, Basic and Diluted	'
		Three Months Ended
		31-Mar-13
		(unaudited)
		Income			Shares	Per Share Amount
	Basic EPS
	Net Income	$	205
	Income allocated to participating securities		50
	Income allocated to common shares	$	155		23,527,072	$	0.01
	Diluted EPS
	Diluted potential common shares (1)				1,805,904
	Income allocated to common shares	$	155		25,332,976	$	0.01
	(1) Dilutive potential common shares consist of shares of common stock issuable upon exercise of outstanding stock options and warrants.
Potentially Dilutive Common Stock Equivalents	'
			Three Months Ended March 31,
			2014	2013
	Options and warrants		5,672,198	2,841,215
	Convertible preferred stock		7,545,333	—
	Total potentially dilutive common stock equivalents		13,217,531	2,841,215

Accounts_Receivables_net_Table

Accounts Receivables, net (Tables)	3 Months Ended
	Mar. 31, 2014
Accounts Receivables, net [Abstract]	'
Schedule of Accounts Receivable	'
		31-Mar-14		December 31,
		(unaudited)		2013
	Accounts receivable	$	4,898	$	4,464
	Less allowance for doubtful accounts		-145		-145
	Net receivable	$	4,753	$	4,319

Inventories_net_Tables

Inventories, net (Tables)	3 Months Ended
	Mar. 31, 2014
Inventories, net [Abstract]	'
Schedule of Components of Inventories	'
		31-Mar-14		December 31,
		(unaudited)		2013
	Raw materials	$	2,234	$	1,905
	Work in process		2,059		987
	Finished goods		717		637
	Total inventories		5,010		3,529
	Less inventory reserve		-270		-95
	Total inventories, net	$	4,740	$	3,434

Stockbased_Compensation_Tables

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2014
Stock-based Compensation [Abstract]	'
Allocation Of Stock-Based Compensation To Expense Catagories	'
		Three Months Ended
		March 31,
		(unaudited)
		2014			2013
	Cost of revenue	$	70		$	79
	Research and development		143			155
	Selling, general and administrative		277			385
	Total stock compensation expense	$	490		$	619
Key Assumptions Used For Black-Scholes Option Pricing Model	'
		For the Three Months Ended
		March 31,
		2014		2013
	Dividend yield	0	%	0	%
	Risk free interest rates	0.78 – 1.61	%	0.37 - 0.88	%
	Expected  volatility	62.9 to 67.8	%	71.6 to 73.8	%
	Expected term (in years)	3.5 to 5.0		3.5 to 5.0
Stock Option Activity	'
		Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (In Years)		Aggregate Intrinsic Value
	Outstanding at December 31, 2013		4,597,186		$	3.82
	Options granted		151,175			3.24
	Options exercised		-61,283			1.05
	Options forfeited		-13,780			3.72
	Options cancelled or expired		-1,100			4.15
	Outstanding at March 31, 2014		4,672,198		$	3.84		4.42	$	1,800,311
	Vested or expected to vest at March 31, 2014 (1)		4,651,155		$	3.84		4.42	$	1,800,227
	Exercisable at March 31, 2014		4,156,181		$	3.83		4.40	$	1,798,214
	(1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options.

Concentrations_Tables

Concentrations (Tables)	3 Months Ended
	Mar. 31, 2014
Concentrations [Abstract]	'
Concentrations	'
		Three Months Ended
		March 31,
		(unaudited)
		2014		2013
	North and South America	$	3,006	$	5,622
	Europe, Middle East, and Africa		2,395		2,107
	Asia Pacific		877		774
	Total	$	6,278	$	8,503

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Schedule of Earnings Per Share, Basic and Diluted) (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Summary of Significant Accounting Policies [Abstract]	'	'
Net income	($1,618)	$205
Income allocated to participating securities	'	50
Net (loss) income allocated to common shares	-1,618	155
Diluted potential common shares	'	'	[1]
Income allocated to common shares, diluted	'	$155
Income allocated to common shares, basic shares	23,778,110	23,527,072
Diluted potential common shares	'	1,805,904	[1]
Income allocated to common shares, diluted shares	23,778,110	25,332,976
Income allocated to common shares, per share, basic	($0.07)	$0.01
Income allocated to common shares, per share, diluted	($0.07)	$0.01
[1]	Dilutive potential common shares consist of shares of common stock issuable upon exercise of outstanding stock options and warrants.

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Potentially Dilutive Common Stock Equivalents) (Details)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Total potentially dilutive common stock equivalents	13,217,531	2,841,215
Options and Warrants [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Total potentially dilutive common stock equivalents	5,672,198	2,841,215
Convertible Preferred Stock [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Total potentially dilutive common stock equivalents	7,545,333	'

Accounts_Receivables_net_Detai

Accounts Receivables, net (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Accounts Receivables, net [Abstract]	'	'
Accounts receivable	$4,898	$4,464
Less allowance for doubtful accounts	-145	-145
Net receivable	$4,753	$4,319

Inventories_net_Details

Inventories, net (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Inventories, net [Abstract]	'	'
Raw materials	$2,234	$1,905
Work in process	2,059	987
Finished goods	717	637
Total inventories	5,010	3,529
Less inventory reserve	-270	-95
Total inventories, net	$4,740	$3,434

Line_of_Credit_Details

Line of Credit (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Sep. 01, 2013
			Amended Credit Facility [Member]
Line of Credit Facility [Line Items]	'	'	'
Line of credit facility, maximum borrowing capacity	$3,000,000	'	'
Eligible accounts receivable percentage	75.00%	'	'
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.	'	'
Monthly interest payment required	1,000	'	'
Interest rate plus Prime	'	'	4.00%
Minimum interest rate	'	'	7.25%
Early termination fee	6,000	'	'
Renewal date for credit facility	1-Sep-14	'	'
Outstanding amount on credit facility	$0	$0	'

Stockbased_Compensation_Narrat

Stock-based Compensation (Narrative) (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014
Stock-based Compensation [Abstract]	'
Unrecognized stock option compensation net of for feitures	$0.90
Unrecognized stock option compensation recognition term	'2 years
Expected dividend yield	0.00%

Stockbased_Compensation_Alloca

Stock-based Compensation (Allocation Of Stock-Based Compensation To Expense Catagories) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'
Total stock compensation expense	$490	$619
Cost of Sales [Member]	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'
Total stock compensation expense	70	79
Research and Development Expense [Member]	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'
Total stock compensation expense	143	155
Selling, General and Administrative Expenses [Member]	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'
Total stock compensation expense	$277	$385

Stockbased_Compensation_Key_As

Stock-based Compensation (Key Assumptions Used For Black-Scholes Option Pricing Model) (Details)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Dividend yield	0.00%	0.00%
Risk free interest rates, minimum	0.78%	0.37%
Risk free interest rates, maximum	1.61%	0.88%
Expected volatility, minimum	62.90%	71.60%
Expected volatility, maximum	67.80%	73.80%
Minimum [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Expected term (in years)	'3 years 6 months	'3 years 6 months
Maximum [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Expected term (in years)	'5 years	'5 years

Stockbased_Compensation_Stock_

Stock-based Compensation (Stock Option Activity) (Details) (USD $)	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Stock-based Compensation [Abstract]	'		'
Outstanding at December 31, 2013, shares	4,597,186		'
Options granted, shares	151,175		'
Options exercised, shares	-61,283		-12,655
Options forfeited, shares	-13,780		'
Options cancelled or expired, shares	-1,100		'
Outstanding at March 31, 2014, shares	4,672,198		'
Vested or expected to vest at March 31, 2014, shares	4,651,155	[1]	'
Exercisable at March 31, 2014, shares	4,156,181		'
Outstanding at December 31, 2013, exercise price	$3.82		'
Options granted, exercise price	$3.24		'
Options exercised, exercise price	$1.05		'
Options forfeited, exercise price	$3.72		'
Options cancelled or expired, exercise price	$4.15		'
Outstanding at March 31, 2014, exercise price	$3.84		'
Vested or expected to vest at March 31, 2014, exercise price	$3.84	[1]	'
Exercisable at March 31, 2014, exercise price	$3.83		'
Outstanding at March 31, 2014, contractual life	'4 years 5 months 1 day		'
Vested or expected to vest at March 31, 2014, contractual life	'4 years 5 months 1 day	[1]	'
Exercisable at March 31, 2014, contractual life	'4 years 4 months 24 days		'
Outstanding at March 31, 2014, intrinsic value	$1,800,311		'
Vested or expected to vest at March 31, 2014, intrinsic value	1,800,227	[1]	'
Exercisable at March 31, 2014, intrinsic value	1,798,214		'
Aggregate intrinsic value of options exercised	$84,000		'
[1]	The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options

Shareholders_Equity_Details

Shareholders' Equity (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Dec. 31, 2013
			Series B Convertible Preferred Stock [Member]	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
Proceeds from stock options exercised	$65	$24	'	'
Exercise of common stock options, shares	61,283	12,655	'	'

Income_Taxes_Details

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Taxes [Abstract]	'	'
Effective tax rate	0.00%	36.90%
Federal statutory rate	34.00%	34.00%
Operating loss carry forward amounts substantially expire	'2028	'

Commitments_And_Contingencies_

Commitments And Contingencies (Details) (USD $)	3 Months Ended					12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
			Hopewell Junction, New York [Member]	Bellevue, Washington [Member]	Santa Clara, California [Member]	Global OLED Technology [Member]
			sqft	sqft	sqft	Royalty Agreement [Member]
Commitments And Contingencies [Line Items]	'	'	'	'	'	'
Selling, general and administrative expense	$2,119,000	$2,239,000	'	'	'	$500,000
Area of leased real estate property	'	'	37,000	6,300	2,400	'
Lease expiration date	'	'	31-May-19	31-Aug-14	31-Dec-14	'
Rent expense	302,000	303,000	'	'	'	'
Equipment purchases commitments	$600,000	'	'	'	'	'

Concentrations_Details

Concentrations (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'
Revenues	$6,278	$8,503
North And South America [Member]	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'
Revenues	3,006	5,622
Europe, Middle East, And Africa [Member]	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'
Revenues	2,395	2,107
Asia Pacific [Member]	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'
Revenues	$877	$774
United States [Member]	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'
Net revenues, percentage	47.00%	62.00%
International [Member]	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'
Net revenues, percentage	53.00%	38.00%
No Customer [Member]	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'
Net revenues, percentage	10.00%	'
Number of customers	0	'
Three Customers [Member]	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'
Net revenues, percentage	'	36.00%
Number of customers	'	3