Emagin (EMAN) 10-Q13 Aug 142014 Q2 Quarterly reportFinancial data

Company Profile

Document_And_Entity_Informatio

Document And Entity Information	6 Months Ended
Document And Entity Information	Jun. 30, 2014	Jul. 31, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Jun-14	'
Document Fiscal Period Focus	'Q2	'
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	'	24,995,982

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
ASSETS	'	'
Cash and cash equivalents	$2,095	$4,032
Investments	3,500	6,250
Accounts receivable, net	6,055	4,319
Inventories, net	5,549	3,434
Prepaid expenses and other current assets	899	745
Total current assets	18,098	18,780
Long-term investments	'	750
Equipment, furniture and leasehold improvements, net	9,136	9,119
Other assets	106	27
Total assets	27,340	28,676
LIABILITIES AND SHAREHOLDERS' EQUITY	'	'
Accounts payable	1,674	1,470
Accrued expenses	1,977	2,812
Other current liabilities	605	395
Total current liabilities	4,256	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 June 30, 2014 and December 31, 2013	'	'
Common stock, $.001 par value: authorized 200,000,000 shares, issued and outstanding, 24,995,982 shares as of June 30, 2014 and 23,928,619 as of December 31, 2013	25	24
Additional paid in capital	227,801	226,051
Accumulated deficit	-204,242	-201,576
Treasury stock, 162,066 shares as of June 30, 2014 and December 31, 2013	-500	-500
Total shareholders' equity	23,084	23,999
Total liabilities and shareholders' equity	$27,340	$28,676

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 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	24,995,982	23,928,619
Common stock, shares outstanding	24,995,982	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		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenue:	'	'	'	'
Product	$6,956	$6,773	$13,215	$14,901
Contract	62	255	81	630
Total revenue, net	7,018	7,028	13,296	15,531
Cost of goods sold:	'	'	'	'
Product	4,838	4,437	9,170	8,974
Contract	11	200	26	416
Total cost of goods sold	4,849	4,637	9,196	9,390
Gross profit	2,169	2,391	4,100	6,141
Operating expenses:	'	'	'	'
Research and development	1,282	1,454	2,708	2,643
Selling, general and administrative	1,931	2,077	4,050	4,317
Total operating expenses	3,213	3,531	6,758	6,960
Loss from operations	-1,044	-1,140	-2,658	-819
Other income (expense):	'	'	'	'
Interest expense, net	-10	-11	-21	-21
Other income, net	7	23	14	36
Total other income (expense), net	-3	12	-7	15
Loss before benefit from income taxes	-1,047	-1,128	-2,665	-804
Benefit from income taxes	'	-120	'	'
Net loss	-1,047	-1,008	-2,665	-804
Less net income allocated to participating securities	'	'	'	'
Net loss allocated to common shares	($1,047)	($1,008)	($2,665)	($804)
Loss per share, basic	($0.04)	($0.04)	($0.11)	($0.03)
Loss per share, diluted	($0.04)	($0.04)	($0.11)	($0.03)
Weighted average number of shares outstanding:	'	'	'	'
Basic	23,940,800	23,586,413	23,859,455	23,556,743
Diluted	23,940,800	23,586,413	23,859,455	23,556,743

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements Of Cash Flows (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:	'	'
Net loss	($2,665)	($804)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:	'	'
Depreciation and amortization	538	425
Amortization of bond premium	'	17
Inventory reserve	321	16
Stock-based compensation	650	1,078
Loss (gain) on sale of asset	7	-9
Changes in operating assets and liabilities:	'	'
Accounts receivable	-1,737	292
Inventories, net	-2,437	-355
Prepaid expenses and other current and long-term assets	-235	-88
Accounts payable, accrued expenses, and other current liabilities	-421	-322
Net cash (used in) provided by operating activities	-5,979	250
Cash flows from investing activities:	'	'
Purchase of equipment	-567	-552
Proceeds from sale of asset	7	15
Maturities of investments	5,500	7,250
Purchase of investments	-2,000	-7,000
Net cash provided by (used in) investing activities	2,940	-287
Cash flows from financing activities:	'	'
Proceeds from exercise of stock options and warrants	1,102	257
Net cash provided by financing activities	1,102	257
Net (decrease) increase in cash and cash equivalents	-1,937	220
Cash and cash equivalents, beginning of period	4,032	4,385
Cash and cash equivalents, end of period	2,095	4,605
Cash paid for interest	6	3
Cash paid for taxes	'	$20

Summary_of_Significant_Account

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 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 June 30, 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 May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09 will be effective for the Company beginning January 1, 2017. Early adoption is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated 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 June 30, 2014, the investments mature within one year.

	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, (in thousands):





			Three Months Ended							Six Months Ended
			June 30.							June 30.
			(unaudited)							(unaudited)
			2014				2013			2014		2013
	Warranty accrual, beginning of period		$	380			$	276		$	394	$	276
	Provision for warranty costs			437				89			517		181
	Warranty expenditures			-214				-77			-308		-169
	Warranty accrual, end of period		$	603			$	288		$	603	$	288


	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 and six months ended June 30, 2014 and 2013, the Company 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 is a table of the potentially dilutive common stock equivalents for the three and six month periods ended June 30, 2014 and 2013 that were not included in diluted EPS as their effect would be anti-dilutive:



			Three Months Ended June 30,				Six Months Ended June 30,
			2014		2013		2014		2013
Options		4,679,929		5,605,713		4,679,929		5,605,713
Convertible preferred stock		7,545,333		7,545,333		7,545,333		7,545,333
Total potentially dilutive common stock equivalents		12,225,262		13,151,046		12,225,262		13,151,046

Accounts_Receivables_net

Accounts Receivables, net	6 Months Ended
Accounts Receivables, net	Jun. 30, 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):



		30-Jun-14		December 31,
		(unaudited)		2013
	Accounts receivable	$	6,200	$	4,464
	Less allowance for doubtful accounts		-145		-145
	Net receivable	$	6,055	$	4,319

Inventories_net

Inventories, net	6 Months Ended
Inventories, net	Jun. 30, 2014
Inventories, net [Abstract]	'
Inventories, net	'
	Note 3: Inventories, net

	The components of inventories are as follows (in thousands):



		30-Jun-14		December 31,
		(unaudited)		2013
	Raw materials	$	2,778	$	1,905
	Work in process		1,768		987
	Finished goods		1,419		637
	Total inventories		5,965		3,529
	Less inventory reserve		-416		-95
	Total inventories, net	$	5,549	$	3,434

Line_of_Credit

Line of Credit	6 Months Ended
Line of Credit	Jun. 30, 2014
Line of Credit [Abstract]	'
Line of Credit	'
	Note 4: Line of Credit

	At June 30, 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 six months ended June 30, 2014, the Company had not borrowed on its line of credit.

Stockbased_Compensation

Stock-based Compensation	6 Months Ended
Stock-based Compensation	Jun. 30, 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 and six month periods ended June 30, 2014 and 2013 (in thousands):




		Three Months Ended						Six Months Ended
		June 30.						June 30.
		(unaudited)						(unaudited)
		2014			2013			2014				2013
	Cost of revenue	$	33		$	72		$	103			$	151
	Research and development		42			137			185				292
	Selling, general and administrative		85			250			362				635
	Total stock compensation expense	$	160		$	459		$	650			$	1,078

	At June 30, 2014, total unrecognized compensation costs related to stock options was approximately $0.7 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 Six Months Ended
		June 30,
		2014		2013
	Dividend yield	0	%	0	%
	Risk free interest rates	0.78 – 1.61	%	0.35 - 1.48	%
	Expected volatility	60.3 to 67.8	%	70.9 to 73.8	%
	Expected term (in years)	3.25 to 5.0		3.5 to 5.0

	The Company does not expect to pay dividends in the near future 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 six months ended June 30, 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		195,423			3.11
	Options exercised		-67,363			1.06
	Options forfeited		-35,309			4.50
	Options cancelled or expired		-10,008			3.69
	Outstanding at June 30, 2014		4,679,929		$	3.83		4.44		$	1,397,761
	Vested or expected to vest at June 30, 2014 (1)		4,664,155		$	3.83		4.18		$	1,397,761
	Exercisable at June 30, 2014		4,285,632		$	3.83		4.17		$	1,397,761
	(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 and six months ended June 30, 2014, the aggregate intrinsic value of options exercised was approximately $9 thousand and $93 thousand, respectively. The Company issues new shares of common stock upon exercise of stock options.

Shareholders_Equity

Shareholders' Equity	6 Months Ended
Shareholders' Equity	Jun. 30, 2014
Shareholders' Equity [Abstract]	'
Shareholders' Equity	'
	Note 6: Shareholders’ Equity

	Preferred Stock - Series B Convertible Preferred Stock (“the Preferred Stock – Series B”)

	As of June 30, 2014 and December 31, 2013, there were 5,659 shares of Preferred Stock – Series B issued and outstanding.

	Common Stock

	The Company received approximately $7 thousand and $72 thousand for the exercise of 6,080 and 67,363 stock options in the three and six months ended June 30, 2014, respectively. The Company received approximately $233 thousand and $257 thousand for the exercise of 150,960 and 163,615 stock options in the three and six months ended June 30, 2013, respectively. In the three and six months ended June 30, 2014, the Company received approximately $1.0 million for the exercise of 1 million warrants.

Income_Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 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 both the six month periods ended June 30, 2014 and 2013 was 0%. The difference between the effective tax rate of 0% and the U.S. federal statutory rate of 34% for the six months ended June 30, 2014 was primarily due to recognizing a full valuation allowance. The difference between the effective tax rate of 0% and the U.S. federal statutory rate of 34% for the six months ended June 30, 2013 was primarily due to the change in the valuation allowance.

	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 June 30, 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	6 Months Ended
Commitments and Contingencies	Jun. 30, 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. The lease expires May 31, 2019. The administrative offices are located in Bellevue, Washington where the current lease expires on August 31, 2014 and the Company has negotiated a new lease for approximately 1,500 square feet effective September 1, 2014. Effective July 1, 2014, the Company has a new lease for approximately 1,800 square feet of office space for design and product development in Santa Clara, California with the lease expiring October 31, 2015.

	Rent expense was approximately $287 thousand and $589 thousand, respectively, for the three and six months ended June 30, 2014 and approximately $303 thousand and $606 thousand, respectively, for the three and six months ended 2013.

	Equipment Purchase Commitments

	The Company has committed to equipment purchases of approximately $0.5 million at June 30, 2014.

Concentrations

Concentrations	6 Months Ended
Concentrations	Jun. 30, 2014
Concentrations [Abstract]	'
Concentrations	'
	Note 9: Concentrations

	For the three and six months ended June 30, 2014, approximately 44% and 45%, respectively, of the Company’s net revenues were derived from customers in the United States and approximately 56% and 55%, respectively, of the Company’s net revenues were derived from international customers. For the three and six months ended June 30, 2013, approximately 66% and 64%, respectively, of the Company’s net revenues were derived from customers in the United States and approximately 34% and 36%, respectively, of the Company’s net revenues were derived from international customers. For the three and six months ended June 30, 2014, there was one customer that accounted for 18% and 12%, respectively, of its net revenue. For the three and six months ended June 30, 2013, two customers accounted for 33% and 26%, respectively, of its net revenue. As of June 30, 2014, two customers accounted for 37% of its accounts receivable.

	The following is a schedule of revenue by geographic location (in thousands):



		Three Months Ended				Six Months Ended
		June 30,				June 30,
		(unaudited)				(unaudited)
		2014		2013		2014		2013
	North and South America	$	3,295	$	4,718	$	6,301	$	10,340
	Europe, Middle East, and Africa		3,128		1,905		5,523		4,012
	Asia Pacific		595		405		1,472		1,179
	Total	$	7,018	$	7,028	$	13,296	$	15,531

	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)	6 Months Ended
Summary of Signiicant Accounting Policies (Policy)	Jun. 30, 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 June 30, 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 May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09 will be effective for the Company beginning January 1, 2017. Early adoption is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated 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 June 30, 2014, the investments mature within one year.

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, (in thousands):





		Three Months Ended						Six Months Ended
		June 30.						June 30.
		(unaudited)						(unaudited)
		2014			2013			2014		2013
	Warranty accrual, beginning of period	$	380		$	276		$	394	$	276
	Provision for warranty costs		437			89			517		181
	Warranty expenditures		-214			-77			-308		-169
	Warranty accrual, end of period	$	603		$	288		$	603	$	288


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 and six months ended June 30, 2014 and 2013, the Company 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 is a table of the potentially dilutive common stock equivalents for the three and six month periods ended June 30, 2014 and 2013 that were not included in diluted EPS as their effect would be anti-dilutive:



		Three Months Ended June 30,			Six Months Ended June 30,
		2014		2013	2014		2013
	Options	4,679,929		5,605,713	4,679,929		5,605,713
	Convertible preferred stock	7,545,333		7,545,333	7,545,333		7,545,333
	Total potentially dilutive common stock equivalents	12,225,262		13,151,046	12,225,262		13,151,046

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Tables)	6 Months Ended
Summary of Significant Accounting Policies (Tables)	Jun. 30, 2014
Summary of Significant Accounting Policies [Abstract]	'
Summary of Activity Related to Warranty Liability Included in Other Current Liabilities	'


		Three Months Ended						Six Months Ended
		June 30.						June 30.
		(unaudited)						(unaudited)
		2014			2013			2014		2013
	Warranty accrual, beginning of period	$	380		$	276		$	394	$	276
	Provision for warranty costs		437			89			517		181
	Warranty expenditures		-214			-77			-308		-169
	Warranty accrual, end of period	$	603		$	288		$	603	$	288


Potentially Dilutive Common Stock Equivalents	'


		Three Months Ended June 30,			Six Months Ended June 30,
		2014		2013	2014		2013
	Options	4,679,929		5,605,713	4,679,929		5,605,713
	Convertible preferred stock	7,545,333		7,545,333	7,545,333		7,545,333
	Total potentially dilutive common stock equivalents	12,225,262		13,151,046	12,225,262		13,151,046

Accounts_Receivables_net_Table

Accounts Receivables, net (Tables)	6 Months Ended
Accounts Receivables, net (Tables)	Jun. 30, 2014
Accounts Receivables, net [Abstract]	'
Schedule of Accounts Receivable	'


		30-Jun-14		December 31,
		(unaudited)		2013
	Accounts receivable	$	6,200	$	4,464
	Less allowance for doubtful accounts		-145		-145
	Net receivable	$	6,055	$	4,319

Inventories_net_Tables

Inventories, net (Tables)	6 Months Ended
Inventories, net (Tables)	Jun. 30, 2014
Inventories, net [Abstract]	'
Schedule of Components of Inventories	'


		30-Jun-14		December 31,
		(unaudited)		2013
	Raw materials	$	2,778	$	1,905
	Work in process		1,768		987
	Finished goods		1,419		637
	Total inventories		5,965		3,529
	Less inventory reserve		-416		-95
	Total inventories, net	$	5,549	$	3,434

Stockbased_Compensation_Tables

Stock-based Compensation (Tables)	6 Months Ended
Stock-based Compensation (Tables)	Jun. 30, 2014
Stock-based Compensation [Abstract]	'
Allocation Of Stock-Based Compensation To Expense Catagories	'




		Three Months Ended						Six Months Ended
		June 30.						June 30.
		(unaudited)						(unaudited)
		2014			2013			2014				2013
	Cost of revenue	$	33		$	72		$	103			$	151
	Research and development		42			137			185				292
	Selling, general and administrative		85			250			362				635
	Total stock compensation expense	$	160		$	459		$	650			$	1,078


Key Assumptions Used For Black-Scholes Option Pricing Model	'



		For the Six Months Ended
		June 30,
		2014		2013
	Dividend yield	0	%	0	%
	Risk free interest rates	0.78 – 1.61	%	0.35 - 1.48	%
	Expected volatility	60.3 to 67.8	%	70.9 to 73.8	%
	Expected term (in years)	3.25 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		195,423			3.11
	Options exercised		-67,363			1.06
	Options forfeited		-35,309			4.50
	Options cancelled or expired		-10,008			3.69
	Outstanding at June 30, 2014		4,679,929		$	3.83		4.44		$	1,397,761
	Vested or expected to vest at June 30, 2014 (1)		4,664,155		$	3.83		4.18		$	1,397,761
	Exercisable at June 30, 2014		4,285,632		$	3.83		4.17		$	1,397,761
	(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)	6 Months Ended
Concentrations (Tables)	Jun. 30, 2014
Concentrations [Abstract]	'
Concentrations	'



		Three Months Ended				Six Months Ended
		June 30,				June 30,
		(unaudited)				(unaudited)
		2014		2013		2014		2013
	North and South America	$	3,295	$	4,718	$	6,301	$	10,340
	Europe, Middle East, and Africa		3,128		1,905		5,523		4,012
	Asia Pacific		595		405		1,472		1,179
	Total	$	7,018	$	7,028	$	13,296	$	15,531

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Summary of Activity Related to Warranty Liability Included in Other Current Liabilities) (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Summary of Significant Accounting Policies [Abstract]	'	'	'	'
Warranty accrual, beginning of period	$380	$276	$394	$276
Provision for warranty costs	437	89	517	181
Warranty expenditures	-214	-77	-308	-169
Warranty accrual, end of period	$603	$288	$603	$288

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Potentially Dilutive Common Stock Equivalents) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Total potentially dilutive common stock equivalents	12,225,262	13,151,046	12,225,262	13,151,046
Stock Options [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Total potentially dilutive common stock equivalents	4,679,929	5,605,713	4,679,929	5,605,713
Series B Convertible Preferred Stock [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Total potentially dilutive common stock equivalents	7,545,333	7,545,333	7,545,333	7,545,333

Accounts_Receivables_net_Detai

Accounts Receivables, net (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Accounts Receivables, net [Abstract]	'	'
Accounts receivable	$6,200	$4,464
Less allowance for doubtful accounts	-145	-145
Net receivable	$6,055	$4,319

Inventories_net_Details

Inventories, net (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Inventories, net [Abstract]	'	'
Raw materials	$2,778	$1,905
Work in process	1,768	987
Finished goods	1,419	637
Total inventories	5,965	3,529
Less inventory reserve	-416	-95
Total inventories, net	$5,549	$3,434

Line_of_Credit_Details

Line of Credit (Details) (USD $)	0 Months Ended	6 Months Ended
Line of Credit (Details) (USD $)	Sep. 01, 2013	Jun. 30, 2014
Line of Credit [Abstract]	'	'
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

Stockbased_Compensation_Narrat

Stock-based Compensation (Narrative) (Details) (USD $)	6 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2014
Stock-based Compensation [Abstract]	'
Unrecognized stock option compensation net of for feitures	$0.70
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		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock compensation expense	$160	$459	$650	$1,078
Cost of Revenue [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock compensation expense	33	72	103	151
Research and Development [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock compensation expense	42	137	185	292
Selling, General and Administrative [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock compensation expense	$85	$250	$362	$635

Stockbased_Compensation_Key_As

Stock-based Compensation (Key Assumptions Used For Black-Scholes Option Pricing Model) (Details)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 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%	0.35%
Risk free interest rates, maximum	1.61%	1.48%
Expected volatility, minimum	60.30%	70.90%
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 3 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		6 Months Ended
	Jun. 30, 2014		Jun. 30, 2014
Stock-based Compensation [Abstract]	'		'
Outstanding at December 31, 2013, shares	'		4,597,186
Options granted, shares	'		195,423
Options exercised, shares	'		-67,363
Options forfeited, shares	'		-35,309
Options cancelled or expired, shares	'		-10,008
Outstanding at June 30, 2014, shares	4,679,929		4,679,929
Vested or expected to vest at June 30, 2014, shares	4,664,155	[1]	4,664,155	[1]
Exercisable at June 30, 2014, shares	4,285,632		4,285,632
Outstanding at December 31, 2013, exercise price	'		$3.82
Options granted, exercise price	'		$3.11
Options exercised, exercise price	'		$1.06
Options forfeited, exercise price	'		$4.50
Options cancelled or expired, exercise price	'		$3.69
Outstanding at June 30, 2014, exercise price	$3.83		$3.83
Vested or expected to vest at June 30, 2014, exercise price	$3.83	[1]	$3.83	[1]
Exercisable at June 30, 2014, exercise price	$3.83		$3.83
Outstanding at June 30, 2014, contractual life	'		'4 years 5 months 9 days
Vested or expected to vest at June 30, 2014, contractual life	'		'4 years 2 months 5 days	[1]
Exercisable at June 30, 2014, contractual life	'		'4 years 2 months 1 day
Outstanding at June 30, 2014, intrinsic value	$1,397,761		$1,397,761
Vested or expected to vest at June 30, 2014, intrinsic value	1,397,761	[1]	1,397,761	[1]
Exercisable at June 30, 2014, intrinsic value	1,397,761		1,397,761
Aggregate intrinsic value of options exercised	$9,000		$93,000

[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 $)	6 Months Ended				3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014
	Jun. 30, 2014	Jun. 30, 2013	Series B Convertible Preferred Stock [Member]	Series B Convertible Preferred Stock [Member]	Stock Options [Member]	Stock Options [Member]	Stock Options [Member]	Stock Options [Member]	Warrants [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	$1,102,000	$257,000	'	'	$7,000	$233,000	$72,000	$257,000	'
Exercises during period, shares	67,363	'	'	'	6,080	150,960	67,363	163,615	'
Proceeds from exercise of stock warrants	'	'	'	'	'	'	'	'	$1,000,000
Exercise of warrants	'	'	'	'	'	'	'	'	1,000,000

Income_Taxes_Details

Income Taxes (Details)	6 Months Ended
Income Taxes (Details)	Jun. 30, 2014	Jun. 30, 2013
Income Taxes [Abstract]	'	'
Effective tax rate	0.00%	0.00%
Federal statutory rate	34.00%	34.00%
Operating loss carry forward amounts substantially expire	31-Dec-28	'

Commitments_And_Contingencies_

Commitments And Contingencies (Details) (USD $)	3 Months Ended		6 Months Ended					12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Mar. 31, 2014
					Hopewell Junction, New York [Member]	Bellevue, Washington [Member]	Santa Clara, California [Member]	Global OLED Technology [Member]	Global OLED Technology [Member]
					sqft	sqft	sqft	Royalty Agreement [Member]	Royalty Agreement [Member]
Commitments And Contingencies [Line Items]	'	'	'	'	'	'	'	'	'
Loss contingency liability	'	'	'	'	'	'	'	$500,000	$500,000
Selling, general and administrative expense	1,931,000	2,077,000	4,050,000	4,317,000	'	'	'	500,000	'
Area of leased real estate property	'	'	'	'	37,000	1,500	1,800	'	'
Lease expiration date	'	'	'	'	31-May-19	31-Aug-14	31-Oct-15	'	'
Rent expense	287,000	303,000	589,000	606,000	'	'	'	'	'
Equipment purchases commitments	'	'	$500,000	'	'	'	'	'	'

Concentrations_Details

Concentrations (Details) (USD $)

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

0 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

0 Months Ended

In Thousands, unless otherwise specified

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

North And South America [Member]

Europe, Middle East, And Africa [Member]

Asia Pacific [Member]

One Customer [Member]

Two Customers [Member]

Revenues [Member]

Accounts Receivable [Member]

customer

United States [Member]

International [Member]

One Customer [Member]

Two Customers [Member]

Revenues from External Customers and Long-Lived Assets [Line Items]

Concentration risk, percentage

44.00%

66.00%

45.00%

64.00%

56.00%

34.00%

55.00%

36.00%

18.00%

12.00%

33.00%

26.00%

37.00%

Number of customers

Revenues

$7,018

$7,028

$13,296

$15,531

$3,295

$4,718

$6,301

$10,340

$3,128

$1,905

$5,523

$4,012

$595

$405

$1,472

$1,179