Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Registrant Name | EMAGIN CORP | ||
Entity Central Index Key | 1046995 | ||
Entity Filer Category | Smaller Reporting Company | ||
Current Fiscal Year End Date | -19 | ||
Entity Public Float | $36.90 | ||
Entity Common Stock, Shares Outstanding | 25,195,107 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $5,290 | $4,032 |
Investments | 750 | 6,250 |
Accounts receivable, net | 4,044 | 4,319 |
Inventories, net | 4,586 | 3,434 |
Prepaid expenses and other current assets | 656 | 745 |
Total current assets | 15,326 | 18,780 |
Long-term investments | 750 | |
Equipment, furniture and leasehold improvements, net | 9,417 | 9,119 |
Intangibles and other assets | 382 | 27 |
Total assets | 25,125 | 28,676 |
Current liabilities: | ||
Accounts payable | 1,027 | 1,470 |
Accrued compensation | 1,145 | 1,155 |
Other accrued expenses | 812 | 1,436 |
Advance payment | 74 | 155 |
Deferred revenue | 331 | 66 |
Other current liabilities | 664 | 395 |
Total current liabilities | 4,053 | 4,677 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Preferred stock, $.001 par value: authorized 10,000,000 shares: Series B Convertible Preferred stock, (liquidation preference of $5,659,000) stated value $1,000 per share, $.001 par value: 10,000 shares designated and 5,659 issued and outstanding as of December 31, 2014 and December 31, 2013 | ||
Common stock, $.001 par value: authorized 200,000,000 shares, issued and outstanding, 25,195,107 shares as of December 31, 2014 and 23,928,619 as of December 31, 2013 | 25 | 24 |
Additional paid-in capital | 228,380 | 226,051 |
Accumulated deficit | -206,833 | -201,576 |
Treasury stock, 162,066 shares as of December 31, 2014 and 2013 | -500 | -500 |
Total shareholders' equity | 21,072 | 23,999 |
Total liabilities and shareholders' equity | $25,125 | $28,676 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 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 | 25,195,107 | 23,928,619 |
Common stock, shares outstanding | 25,195,107 | 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 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Revenue: | ||
Product | $24,061 | $26,315 |
Contract | 1,654 | 1,675 |
Total revenue, net | 25,715 | 27,990 |
Cost of goods sold: | ||
Product | 17,384 | 18,573 |
Contract | 946 | 991 |
Total cost of goods sold | 18,330 | 19,564 |
Gross profit | 7,385 | 8,426 |
Operating expenses: | ||
Research and development | 4,511 | 5,023 |
Selling, general and administrative | 8,125 | 8,605 |
Total operating expenses | 12,636 | 13,628 |
Loss from operations | -5,251 | -5,202 |
Other income (expense): | ||
Interest expense, net | -28 | -31 |
Other income, net | 22 | 50 |
Total other income (expense), net | -6 | 19 |
Loss before provision for income taxes | -5,257 | -5,183 |
Provision for income taxes | 8,884 | |
Net loss | ($5,257) | ($14,067) |
Loss per share, basic | ($0.22) | ($0.60) |
Loss per share, diluted | ($0.22) | ($0.60) |
Weighted average number of shares outstanding: | ||
Basic | 24,376,259 | 23,639,554 |
Diluted | 24,376,259 | 23,639,554 |
Consolidated_Statements_Of_Cha
Consolidated Statements Of Changes In Shareholders' Equity (USD $) | Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance at Dec. 31, 2012 | $24 | ($463) | $223,575 | ($187,509) | $35,627 | |
Balance, shares at Dec. 31, 2012 | 5,659 | 23,674,541 | -150,000 | |||
Exercise of common stock options | 394 | 394 | ||||
Exercise of common stock options, shares | 254,078 | 254,078 | ||||
Stock-based compensation | 2,082 | 2,082 | ||||
Purchase of treasury stock | -37 | -37 | ||||
Purchase of treasury stock, shares | -12,066 | |||||
Net loss | -14,067 | -14,067 | ||||
Balance at Dec. 31, 2013 | 24 | -500 | 226,051 | -201,576 | 23,999 | |
Balance, shares at Dec. 31, 2013 | 5,659 | 23,928,619 | -162,066 | |||
Exercise of common stock options | 275 | 275 | ||||
Exercise of common stock options, shares | 266,488 | 266,488 | ||||
Exercise of common stock warrants | 1 | 1,029 | 1,030 | |||
Exercise of common stock warrants, shares | 1,000,000 | |||||
Stock-based compensation | 1,025 | 1,025 | ||||
Net loss | -5,257 | -5,257 | ||||
Balance at Dec. 31, 2014 | $25 | ($500) | $228,380 | ($206,833) | $21,072 | |
Balance, shares at Dec. 31, 2014 | 5,659 | 25,195,107 | -162,066 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows from operating activities: | ||
Net loss | ($5,257) | ($14,067) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,181 | 905 |
Increase (reduction) in provision for doubtful accounts | 582 | -86 |
Amortization of bond premium | 20 | |
Inventory reserve | 202 | 24 |
Stock-based compensation | 1,025 | 2,082 |
Loss (gain) on sale of asset | 8 | -9 |
Deferred income taxes | 8,881 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | -307 | 922 |
Inventories, net | -1,355 | -235 |
Prepaid expenses and other current assets | 8 | |
Advance payments | -81 | 83 |
Deferred revenue | 265 | 6 |
Accounts payable, accrued compensation, accrued expenses, and other current liabilities | -957 | 676 |
Net cash used in operating activities | -4,686 | -798 |
Cash flows from investing activities: | ||
Purchase of equipment | -1,479 | -1,927 |
Proceeds from sale of asset | 8 | 15 |
Purchase of intangibles | -140 | |
Maturities of investments | 8,250 | 14,000 |
Purchase of investments | -2,000 | -12,000 |
Net cash provided by investing activities | 4,639 | 88 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options and warrants | 1,305 | 394 |
Purchase of treasury stock | -37 | |
Net cash provided by financing activities | 1,305 | 357 |
Net increase (decrease) in cash and cash equivalents | 1,258 | -353 |
Cash and cash equivalents, beginning of period | 4,032 | 4,385 |
Cash and cash equivalents, end of period | 5,290 | 4,032 |
Cash paid for interest, net of amount capitalized of $13 and $11 thousand in 2014 and 2013, respectively | 1 | |
Cash paid for taxes | 101 | |
Non-cash investing activities [Abstract] | ||
Intangible assets - patents | $150 |
Consolidated_Statements_Of_Cas1
Consolidated Statements Of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Consolidated Statements Of Cash Flows [Abstract] | ||
Capitalized interest | $13 | $11 |
Nature_Of_Business
Nature Of Business | 12 Months Ended |
Dec. 31, 2014 | |
Nature Of Business [Abstract] | |
Nature Of Business | |
Note 1 - Nature Of Business | |
eMagin Corporation and its wholly owned subsidiary (the “Company”) designs, manufactures and supplies OLED-on-silicon microdisplays and virtual imaging products which utilize OLED microdisplays. The Company’s products are sold mainly in North America, Asia, and Europe. | |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Significant Accounting Policies [Abstract] | ||||||||
Significant Accounting Policies | ||||||||
Note 2: Significant Accounting Policies | ||||||||
Principles of consolidation | ||||||||
The accompanying consolidated financial statements include the accounts of eMagin Corporation and its wholly owned subsidiary. All intercompany transactions have been eliminated in consolidation. | ||||||||
Use of estimates | ||||||||
In accordance with accounting principles generally accepted in the United States of America, management utilizes certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments related to, among others, allowance for doubtful accounts, warranty reserves, inventory reserves, stock-based compensation expense, deferred tax asset valuation allowances, fair value of financial instruments, 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 is recognized when persuasive evidence of an arrangement exists, delivery has occurred, selling price is fixed or determinable and collection is reasonably assured. Product revenue is generally recognized when products are shipped to customers. | ||||||||
The Company also earns revenues from certain research and development (“R&D”) activities (contract revenues) under both firm fixed-price contracts and cost-type contracts. Revenues relating to firm fixed-price contracts and cost-type contracts are generally recognized on the percentage-of-completion method of accounting as costs are incurred (cost-to-cost basis). Progress is generally based on a cost-to-cost approach however an alternative method may be used such as physical progress, labor hours or others depending on the type of contract. Physical progress is determined as a combination of input and output measures as deemed appropriate by the circumstances. Contract costs include all direct material and labor costs and an allocation of allowable indirect costs as defined by each contract, as periodically adjusted to reflect revised agreed upon rates. These rates are subject to audit by the other party. | ||||||||
Product warranty | ||||||||
The Company offers a one-year product replacement warranty. In general, the standard policy is to repair or replace the defective products. The Company accrues for estimated returns of defective products at the time revenue is recognized based on historical activity as well as for specific known product issues. The determination of these accruals requires the Company to make estimates of the frequency and extent of warranty activity and estimate future costs to replace the products under warranty. If the actual warranty activity and/or repair and replacement costs differ significantly from these estimates, adjustments to cost of revenue may be required in future periods. | ||||||||
The following table provides a summary of the activity related to the Company's warranty liability, included in other current liabilities, during the years ended December 31, 2014 and 2013 (in thousands): | ||||||||
For the Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Beginning balance | $ | 394 | $ | 276 | ||||
Warranty accruals | 760 | 425 | ||||||
Warranty usage | -491 | -307 | ||||||
Ending balance | $ | 663 | $ | 394 | ||||
Research and development expenses | ||||||||
Research and development costs are expensed as incurred. | ||||||||
Cash and cash equivalents | ||||||||
All highly liquid instruments with an original maturity of three months or less at the date of purchase are considered to be cash equivalents. | ||||||||
Investments | ||||||||
Investments consist of FDIC-insured certificates of deposit which the Company classifies as held-to-maturity since it has the positive intent and ability to hold them until maturity and the investments are carried at amortized cost. As of December 31, 2014 and 2013, the held-to-maturity investments were $0.75 million and $7 million, respectively, maturing within 6 months and 18 months, respectively. | ||||||||
Accounts receivable | ||||||||
The majority of the Company’s commercial accounts receivable are due from Original Equipment Manufacturers ("OEM’s”). Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are payable in U.S. dollars, are due within 30-90 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Any account outstanding longer than the contractual payment terms is considered past due. | ||||||||
Allowance for doubtful accounts | ||||||||
The allowance for doubtful accounts reflects an estimate of probable losses inherent in the accounts receivable balance. The allowance is determined based on a variety of factors, including the length of time receivables are past due, historical experience, the customer's current ability to pay its obligation, and the condition of the general economy and the industry as a whole. The Company will record a specific reserve for individual accounts when the Company becomes aware of a customer's inability to meet its financial obligations, deterioration in the customer's operating results or financial position, or deterioration in the customer’s credit history. If circumstances related to customers change, the Company would further adjust estimates of the recoverability of receivables. Account balances, when determined to be uncollectible, are charged against the allowance. | ||||||||
Inventory | ||||||||
Inventory is stated at the lower of cost or market. Cost is determined using the first-in first-out method. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. The Company regularly reviews inventory quantities on hand, future purchase commitments with the Company’s suppliers, and the estimated utility of the inventory. If the Company review indicates a reduction in utility below carrying value, the inventory is reduced to a new cost basis. | ||||||||
Equipment, furniture and leasehold improvements | ||||||||
Equipment, furniture and leasehold improvements are stated at cost. Depreciation on equipment is calculated using the straight-line method of depreciation over its estimated useful life. Amortization of leasehold improvements is calculated by using the straight-line method over the shorter of their estimated useful lives or lease terms. Expenditures for maintenance and repairs are charged to expense as incurred. | ||||||||
The Company performs impairment tests on its long-lived assets when circumstances indicate that their carrying amounts may not be recoverable. If required, recoverability is tested by comparing the estimated future undiscounted cash flows of the asset or asset group to its carrying value. Impairment losses, if any, are recognized based on the excess of the assets' carrying amounts over their estimated fair values. | ||||||||
Intangible assets | ||||||||
The Company’s intangible assets are patents that are recorded at purchase price as of the date acquired and amortized over the expected useful life which is generally the remaining life of the patent. During 2014, the Company purchased several patents for $290 thousand which will be amortized over their remaining useful life. The net book value of all intangible assets was $301 thousand at December 31, 2014. The accumulated amortization as of December 31, 2014 was $54 thousand. As of December 31, 2014, the weighted average remaining useful life of the patents was approximately 6.9 years. | ||||||||
Total intangible amortization expense was approximately $16 thousand and $4 thousand for each of the years ended December 31, 2014 and 2013, respectively. Estimated amortization expense for the next five years, beginning with 2015, is as follows: $58 thousand, $54 thousand, $54 thousand, $54 thousand, $32 thousand and thereafter, $49 thousand. | ||||||||
Advertising | ||||||||
Costs related to advertising and promotion of products are charged to sales and marketing expense as incurred. There was no advertising expense for the years ended December 31, 2014 and 2013. | ||||||||
Shipping and handling fees | ||||||||
The Company includes costs related to shipping and handling in cost of goods sold. | ||||||||
Income taxes | ||||||||
The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The effect on deferred tax assets and liabilities of changes in tax rates will be recognized as income or expense in the period that the change occurs. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Changes in circumstances, assumptions and clarification of uncertain tax regimes may require changes to any valuation allowances associated with the Company’s deferred tax assets. | ||||||||
Due to the Company’s operating loss carryforwards, all tax years remain open to examination by the major taxing jurisdictions to which the Company is subject. In the event that the Company is assessed interest or penalties at some point in the future, it will be classified in the financial statements as tax expense. | ||||||||
Income (loss) per common share | ||||||||
Basic income (loss) per share (“Basic EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period. Diluted income (loss) per share (“Diluted EPS”) is computed by dividing the net income (loss) by the weighted average number of common shares outstanding during the reporting period while also giving effect to all potentially dilutive common shares that were outstanding during the reporting period. | ||||||||
In accordance with ASC 260, entities that have issued securities other than common stock that participate in dividends with the common stock (“participating securities”) are required to apply the two-class method to compute basic EPS. The two-class method is an earnings allocation method under which EPS is calculated for each class of common stock and participating security as if all such earnings had been distributed during the period. On December 22, 2008, the Company issued Convertible Preferred Stock – Series B which participates in dividends with the Company’s common stock and is therefore considered to be a participating security. The participating convertible preferred stock is not required to absorb any net loss. The Company uses the more dilutive method of calculating the diluted earnings per share, either the two class method or “if-converted” method. Under the “if-converted” method, the convertible preferred stock is assumed to have been converted into common shares at the beginning of the period. | ||||||||
For the years ended December 31, 2014 and 2013, the Company reported a net loss and as a result, basic and diluted 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 years ended December 31, 2014 and 2013 that were not included in diluted EPS as their effect would be anti-dilutive: | ||||||||
For the Years Ended December 31, | ||||||||
2014 | 2013 | |||||||
Options | 4,510,107 | 4,597,186 | ||||||
Warrants | — | 1,000,000 | ||||||
Convertible preferred stock | 7,545,333 | 7,545,333 | ||||||
Total potentially dilutive common stock equivalents | 12,055,440 | 13,142,519 | ||||||
Comprehensive income (loss) | ||||||||
Comprehensive income (loss) refers to net income (loss) and other revenue, expenses, gains and losses that, under generally accepted accounting principles, are recorded as an element of shareholders’ equity but are excluded from the calculation of net income (loss). | ||||||||
The Company's operations did not give rise to any material items includable in comprehensive income (loss), which were not already in net income (loss) for the years ended December 31, 2014 and 2013. Accordingly, the Company's comprehensive income (loss) is the same as its net income (loss) for the periods presented. | ||||||||
Stock-based compensation | ||||||||
The Company uses the fair value method of accounting for share-based compensation arrangements. The fair values of stock options are estimated at the date of grant using the Black-Scholes option valuation model. Stock-based compensation expense is reduced for estimated forfeitures and is amortized over the vesting period using the straight-line method. | ||||||||
Concentration of credit risk | ||||||||
The majority of eMagin’s products are sold throughout North America, Asia, and Europe. Sales to the Company’s recurring customers are generally made on open account while sales to occasional customers are typically made on a prepaid basis. eMagin performs periodic credit evaluations on its recurring customers and generally does not require collateral. An allowance for doubtful accounts is maintained for credit losses. | ||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and short-term and long-term investments. The Company’s cash and cash equivalents are deposited with financial institutions which, at times, may exceed federally insured limits. The Company has funds invested in a money market account which are not insured. The Company has Certificates of Deposits (“CDs”) classified as short and long-term investments, which are federally insured. To date, the Company has not experienced any loss associated with this risk. | ||||||||
Recently issued accounting standards | ||||||||
In 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. | ||||||||
Accounts_Receivables_Net
Accounts Receivables, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts Receivables, Net [Abstract] | |||||||||
Accounts Receivables, Net | |||||||||
Note 3: Accounts Receivable, net | |||||||||
Accounts receivable consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Accounts receivable | $ | 4,717 | $ | 4,464 | |||||
Less allowance for doubtful accounts | -673 | -145 | |||||||
Accounts receivable, net | $ | 4,044 | $ | 4,319 | |||||
Inventories_Net
Inventories, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories, Net [Abstract] | |||||||||
Inventories, Net | Note 4: Inventories, net | ||||||||
The components of inventories were as follows (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 2,506 | $ | 1,905 | |||||
Work in process | 1,086 | 987 | |||||||
Finished goods | 1,291 | 637 | |||||||
Total inventories | 4,883 | 3,529 | |||||||
Less inventory reserve | -297 | -95 | |||||||
Total inventories, net | $ | 4,586 | $ | 3,434 | |||||
Prepaid_Expenses_And_Other_Cur
Prepaid Expenses And Other Current Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Prepaid Expense And Other Current Assets [Abstract] | ||||||||
Prepaid Expenses And Other Current Assets | Note 5 – Prepaid Expenses and Other Current Assets | |||||||
Prepaid expenses and other current assets consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Vendor prepayments | $ | 152 | $ | 52 | ||||
Other prepaid expenses* | 504 | 693 | ||||||
Total prepaid expenses and other current assets | $ | 656 | $ | 745 | ||||
*No individual amounts greater than 5% of current assets. | ||||||||
Equipment_Furniture_And_Leaseh
Equipment, Furniture And Leasehold Improvements | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Equipment, Furniture And Leasehold Improvements [Abstract] | ||||||||
Equipment, Furniture And Leasehold Improvements | Note 6 – Equipment, Furniture and Leasehold Improvements | |||||||
Equipment, furniture and leasehold improvements consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Computer hardware and software | $ | 1,410 | $ | 1,391 | ||||
Lab and factory equipment | 13,084 | 10,760 | ||||||
Furniture, fixtures and office equipment | 344 | 329 | ||||||
Assets under capital leases | 66 | 66 | ||||||
Construction in progress | 1,905 | 2,801 | ||||||
Leasehold improvements | 473 | 473 | ||||||
Total equipment, furniture and leasehold improvements | 17,282 | 15,820 | ||||||
Less: accumulated depreciation | -7,865 | -6,701 | ||||||
Equipment, furniture and leasehold improvements, net | $ | 9,417 | $ | 9,119 | ||||
Depreciation expense was $1.2 million and $900 thousand for the years ended December 31, 2014 and 2013, respectively. Assets under capital leases are fully amortized. | ||||||||
Debt
Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt [Abstract] | |
Debt | Note 7– Debt |
For the years ended December 31, 2014 and 2013, interest expense includes interest paid, capitalized or accrued of approximately $42 thousand on outstanding debt. | |
Line of Credit | |
At December 31, 2014, the Company had available a credit facility with Access Business Finance, LLC (“Access”) under which the Company may borrow up to a maximum of $3 million based on a borrowing base equivalent of 75% of eligible accounts receivable. | |
The terms of the line of credit are: the minimum monthly interest payment is $1 thousand; the interest rate is Prime plus 4% but not less than 7.25%; and the early termination fee is $6 thousand. The renewal date of the line of credit is September 1, 2015. | |
In 2014 and 2013, the Company paid $30 thousand in loan fees to Access which were charged to prepaid expense and amortized over the life of the agreement. The Company’s obligations under the agreement are secured by its assets. As of December 31, 2014, the Company had not borrowed on its line of credit. | |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Taxes [Abstract] | ||||||||
Income Taxes | Note 8 - INCOME TAXES | |||||||
Net loss before income taxes consists of the following (in thousands): | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Domestic | $ | -5,257 | $ | -5,183 | ||||
Total | $ | -5,257 | $ | -5,183 | ||||
The federal and state income tax provision is summarized as follows (in thousands): | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Current: | $ | $ | ||||||
Federal | - | 1 | ||||||
State | - | 2 | ||||||
Total current tax expense | - | 3 | ||||||
Deferred: | ||||||||
Federal | - | 8,803 | ||||||
State | - | 78 | ||||||
Total deferred tax expense | - | 8,881 | ||||||
Total tax expense | $ | - | $ | 8,884 | ||||
Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating losses and tax credit carryforwards. | ||||||||
The tax effects of significant items comprising the Company’s deferred taxes as of December 31 are as follows (numbers are in thousands): | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Deferred tax assets: | ||||||||
Federal and state net operating loss carryforwards | $ | 37,635 | $ | 36,284 | ||||
Research and development tax credit carryforwards | 2,214 | 1,979 | ||||||
Stock based compensation | 3,922 | 3,665 | ||||||
Other provision and expenses not currently deductible | 1,093 | 755 | ||||||
Total deferred tax assets | 44,864 | 42,683 | ||||||
Deferred tax liabilities: | ||||||||
Depreciation and amortization | -682 | -374 | ||||||
Prepaid expenses | -145 | -191 | ||||||
Total deferred liabilities | -827 | -565 | ||||||
Less valuation allowance | -44,037 | -42,118 | ||||||
Net deferred tax asset | $ | — | $ | — | ||||
The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The effect on deferred tax assets and liabilities of changes in tax rates will be recognized as income or expense in the period that the change occurs. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Changes in circumstances, assumptions and clarification of uncertain tax regimes may require changes to any valuation allowances associated with the Company’s deferred tax assets. | ||||||||
In 2013, the Company determined that based on all available evidence, both positive and negative, and based on the weight of the available evidence, including the Company’s recent operating loss in 2013 and a projected cumulative loss through 2014, it was more likely than not that none of its deferred tax assets will be realized. Therefore, it recorded a full valuation allowance and recorded income tax expense of $8.9 million. In 2014, the Company had an operating loss and cumulative loss and it determined it is still more likely than not that none of its deferred tax assets would be realized and therefore it maintained a full valuation allowance. | ||||||||
As of December 31, 2014 and 2013, the Company had net deferred tax assets before its valuation allowance of approximately $44 million and $42.1 million, respectively, primarily resulting from the future tax benefit of net operating loss carryforwards. The amount of the valuation allowance for deferred tax assets associated with excess tax deduction from stock-based compensation arrangement that is allocated to contributed capital if the future tax benefits are subsequently recognized is $1.3 million at December 31, 2014. | ||||||||
During the year ended December 31, 2014, the Company did not utilize its prior years’ net operating loss carryforwards. As of December 31, 2014, eMagin has federal and state net operating loss carryforwards of approximately $114.1 million and $1.2 million, respectively. The federal research and development tax credit carryforwards are approximately $2.2 million. The federal net operating losses and tax credit carryforwards will expire as follows: | ||||||||
Net | Research and | |||||||
Operating | Development | |||||||
Losses | Tax Credits | |||||||
(in millions) | ||||||||
2018-2021 | $ | 44.6 | $ | 0.8 | ||||
2022-2025 | 42.8 | — | ||||||
2026-2034 | 26.7 | 1.4 | ||||||
$ | 114.1 | $ | 2.2 | |||||
The utilization of net operating losses is subject to a limitation due to the change of ownership provisions under Section 382 of the Internal Revenue Code and similar state provisions. Such limitation may result in the expiration of the net operating losses before their utilization. The Company has done an analysis regarding prior year ownership changes, and it has been determined that the Section 382 limitation on the utilization of net operating losses will currently not materially affect the Company's ability to utilize its net operating losses. | ||||||||
The difference between the statutory federal income tax rate on the Company's pre-tax loss and the Company's effective income tax rate is summarized as follows: | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
U.S. Federal income tax expense at federal statutory rate | 34 | % | 34 | % | ||||
Change in valuation allowance | -37 | -214 | ||||||
Change in effective state tax rate | -2 | 1 | ||||||
Credits | 5 | 8 | ||||||
Effective tax rate | — | % | -171 | % | ||||
The Company did not have unrecognized tax benefits at December 31, 2014 and 2013. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2014 and 2013, the Company recognized no interest and penalties. | ||||||||
The Company files income tax returns in the U.S. federal jurisdiction, California, Florida, and New York. Due to the Company's operating losses, all tax years remain open to examination by major taxing jurisdictions to which the Company is subject. | ||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 9: Shareholders’ Equity |
Preferred Stock - Series B Convertible Preferred Stock (“the Preferred Stock – Series B”) | |
The Company has designated 10,000 shares of the Company’s preferred stock as Preferred Stock – Series B at a stated value of $1,000 per share. The Preferred Stock – Series B is convertible into common stock at a conversion price of $0.75 per share. The holders of the Preferred Stock – Series B are not entitled to receive dividends unless the Company’s Board of Directors declare a dividend for holders of the Company’s common stock and then the dividend shall be equal to the amount that such holder would have been entitled to receive if the holder converted its Preferred Stock – Series B into shares of the Company’s common stock. In the event of a liquidation, dissolution, or winding up of the Company, the Preferred Stock – Series B is entitled to receive liquidation preference before the Common Stock. The Company may at its option redeem the Preferred Stock – Series B by providing the required notice to the holders of the Preferred Stock – Series B and paying an amount equal to $1,000 multiplied by the number of shares for all of such holder’s shares of outstanding Preferred Stock – Series B to be redeemed. | |
As of December 31, 2014 and 2013, there were 5,659 shares of Preferred Stock – Series B issued and outstanding. | |
Common Stock | |
The Company received approximately $275 thousand and $394 thousand for the exercise of 266,488 and 254,078 stock options during the years ended December 31, 2014 and 2013, respectively. For the year ended December 31, 2014, the Company received approximately $1.0 million from the exercise of 1 million warrants. There were no warrants exercised during 2013. | |
During the year ended December 31, 2014, the Company did not repurchase stock and during the year ended December 31, 2013, the Company repurchased 12,066 shares at an average cost of $2.99 per share. At December 31, 2014, there was approximately $2.0 million remaining under the stock repurchase plan. | |
Stock_Compensation
Stock Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Stock Compensation [Abstract] | ||||||||||||||
Stock Compensation | Note 10: Stock Compensation | |||||||||||||
Employee stock purchase plan | ||||||||||||||
In 2005, the shareholders approved the 2005 Employee Stock Purchase Plan (“ESPP”). The ESPP provides the Company’s employees with the opportunity to purchase common stock through payroll deductions. Employees may purchase stock semi-annually at a price that is 85% of the fair market value at certain plan-defined dates. At December 31, 2014, the number of shares of common stock available for issuance was 300,000. As of December 31, 2014, the plan had not been implemented. | ||||||||||||||
Incentive compensation plans | ||||||||||||||
The Amended and Restated 2003 Employee Stock Option Plan (the “2003 Plan”) provided for grants of shares of common stock and options to purchase shares of common stock to employees, officers, directors and consultants. The 2003 Plan terminated July 2, 2013. No additional options can be granted from the plan though options granted before the 2003 Plan terminated may be exercised until the grant expires. | ||||||||||||||
The 2008 Incentive Stock Plan (the “2008 Plan”) adopted and approved by the Board of Directors on November 5, 2008 provides for grants of common stock and options to purchase shares of common stock to employees, officers, directors and consultants. The 2008 Plan has an aggregate of 2 million shares. In 2014, there were no options issued from the 2008 Plan. | ||||||||||||||
The 2011 Incentive Stock Plan (the “2011 Plan”) was approved by the Company’s shareholders on November 3, 2011. The 2011 Plan provides for grants of common stock and options to purchase common stock to employees, officers, directors and consultants. The Board of Directors reserved 1.4 million shares of common stock for issuance under the 2011 Plan. On June 7, 2012, at the Company’s Annual Meeting, the shareholders approved an Amended and Restated 2011 Incentive Stock Plan which eliminated the evergreen provision and prohibits the repricing or exchange of stock options without shareholder approval. In 2014, there were no options issued from the 2011 Plan. | ||||||||||||||
The 2013 Incentive Stock Plan (the “2013 Plan”) adopted and approved by the shareholders on May 17, 2013 provides for grants of common stock and options to purchase shares of common stock to employees, officers, directors and consultants. The 2013 Plan has an aggregate of 1.5 million shares. In 2014, there were 404,113 options granted from this plan. | ||||||||||||||
Vesting terms of the options range from immediate vesting to a ratable vesting period of 5 years. Option activity for the years ended December 31, 2014 and 2013 is summarized as follows: | ||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (In Years) | Aggregate Intrinsic Value | |||||||||||
Outstanding at December 31, 2013 | 4,597,186 | $ | 3.82 | |||||||||||
Options granted | 404,113 | 2.63 | ||||||||||||
Options exercised | -266,488 | 1.03 | ||||||||||||
Options forfeited | -109,055 | 3.89 | ||||||||||||
Options cancelled or expired | -115,649 | 5.84 | ||||||||||||
Outstanding at December 31, 2014 | 4,510,107 | $ | 3.83 | 3.93 | $ | 1,292,171 | ||||||||
Vested or expected to vest at December 31, 2014 (1) | 4,493,527 | $ | 3.83 | 3.93 | $ | 1,291,519 | ||||||||
Exercisable at December 31, 2014 | 4,095,661 | $ | 3.87 | 3.89 | $ | 1,246,530 | ||||||||
(1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. | ||||||||||||||
At December 31, 2014, there were 1,369,464 shares available for grant under the 2013, 2011, and 2008 Plans. | ||||||||||||||
The aggregate intrinsic value in the table above represents the difference between the exercise price of the underlying options and the quoted price of the Company’s common stock on December 31, 2014 for the options that were in-the-money. As of December 31, 2014 there were 1,337,104 options that were in-the-money. The Company’s closing stock price was $2.32 as of December 31, 2014. The Company issues new shares of common stock upon exercise of stock options. The intrinsic value of the 2014 options exercised was $0.4 million of which $0.2 million is an excess tax benefit. | ||||||||||||||
Stock- based compensation | ||||||||||||||
The Company uses the fair value method of accounting for share-based compensation arrangements. The fair value of stock options is estimated at the date of grant using the Black-Scholes option valuation model. Stock-based compensation expense is reduced for estimated forfeitures and is amortized over the vesting period using the straight-line method. | ||||||||||||||
The following table summarizes the allocation of non-cash stock-based compensation to the Company’s expense categories for the years ended December 31, 2014 and 2013 (in thousands): | ||||||||||||||
For the Years Ended | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Cost of revenue | $ | 154 | $ | 285 | ||||||||||
Research and development | 262 | 566 | ||||||||||||
Selling, general and administrative | 609 | 1,231 | ||||||||||||
Total stock compensation expense | $ | 1,025 | $ | 2,082 | ||||||||||
At December 31, 2014, total unrecognized compensation costs related to stock options was approximately $0.4 million, net of estimated forfeitures. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures and is expected to be recognized over a weighted average period of approximately 1.3 years. | ||||||||||||||
The following key assumptions were used in the Black-Scholes option pricing model to determine the fair value of stock options granted: | ||||||||||||||
For the Years Ended | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||||
Risk free interest rates | 0.78 – 1.85 | % | 0.35 - 1.48 | % | ||||||||||
Expected volatility | 59.1 to 67.8 | % | 63 to 74 | % | ||||||||||
Expected term (in years) | 3.25 to 5.0 | 3.5 to 5.0 | ||||||||||||
The weighted average fair value per share for options granted in 2014 and 2013 was $1.25 and $1.81, respectively. | ||||||||||||||
There was no dividend declared and paid in 2014. Though the Company paid a special one-time dividend in 2012, the Company does not expect to pay dividends in the near future therefore it used an expected dividend yield of 0%. The risk-free interest rate used in the Black-Scholes option pricing model is based on the implied yield at the time of grant available on U.S. Treasury securities with an equivalent term. Expected volatility is based on the weighted average historical volatility of the Company’s common stock for the equivalent term. The expected term of options represents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on historical experience and vesting schedules of similar awards. | ||||||||||||||
Warrants | ||||||||||||||
At December 31, 3014, there were no warrants outstanding and at December 31, 2013, there were 1 million warrants to purchase shares of common stock outstanding and exercisable at an exercise price of $1.03 with an expiration date of June 22, 2014. | ||||||||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note 11: 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 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 and Santa Clara, California. | |
The Company’s corporate headquarters and 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 in May 2019. The Company leases approximately 1,800 square feet of office space for design and product development in Santa Clara, California and the lease expires in October 2015. In Bellevue, Washington, eMagin leases approximately 1,500 square feet on a month-to-month basis. | |
Rent expense was approximately $1.1 million and $1.2 million for years ended December 31, 2014 and 2013, respectively. The future minimum lease payments for the years 2015 through 2018 are $0.9 million annually and for 2019, $0.4 million. | |
Equipment Purchase Commitments | |
The Company has committed to equipment purchases of approximately $0.4 million at December 31, 2014. | |
Employee benefit plans | |
eMagin has a defined contribution plan (the 401(k) Plan) under Section 401(k) of the Internal Revenue Code, which is available to all employees who meet established eligibility requirements. Employee contributions are generally limited to 15% of the employee's compensation. Under the provisions of the 401(k) Plan, eMagin may match a portion of the participating employees' contributions. For the years ended December 31, 2014 and 2013, the matched contributions to the 401(k) Plan were $0.07 million and $0.1 million, respectively. | |
Employment agreements | |
2014 | |
On May 13, 2014, the Company and Jerome T. Carollo executed an Amended and Restated Employment Agreement (the “Carollo Employment Agreement”), which amended and restated in its entirety the Executive Employment Agreement, effective as of March 21, 2011. Pursuant to the Employment Agreement, Mr. Carollo will continue to serve as the Company’s Senior Vice President, Business Development until May 13, 2016. Mr. Carollo is paid a base salary of $292,000 and received stock options valued at $50,000. | |
If the Company terminates Mr. Carollo’s employment without Cause, or if Mr. Carollo resigns from his employment for Good Reason, or if Mr. Carollo’s employment is terminated or significantly changed or his salary is decreased as a result of a Change of Control, then Mr. Carollo will be entitled to either the total amount of the base salary that remains unpaid, or monthly salary payments for twelve (12) months, based on his monthly rate of base salary at the date of such termination. However, in lieu of the aforementioned monthly payments, the Company may in its sole discretion pay such payments in a single lump-sum. Mr. Carollo shall also be entitled to payment for accrued and unused vacation, the immediate vesting of any non-vested equity-related instruments granted under the Employment Agreement, and any bonuses which have accrued prior to the date of termination. If Mr. Carollo voluntarily resigns from his employment with the Company, other than for Good Reason as defined in the Employment Agreement, or if the Company terminates the his employment for Cause as defined in the Employment Agreement, then Mr. Carollo shall cease to accrue salary, paid time off, employee benefits and other compensation which would have become payable after the date of such resignation or termination, as applicable. See Note 14 – Subsequent Events. | |
Effective August 29, 2014, Gabriel G. Matus resigned as Senior Vice President, General Counsel, Secretary and Chief Ethics Officer of the Company and his Employment Agreement was terminated. | |
2013 | |
On December 31, 2013 and effective as of January 1, 2014, the Company and Andrew G. Sculley, Jr. entered into an Amended and Restated Employment Agreement (the “Sculley Employment Agreement”), which amended and restated in its entirety the Executive Employment Agreement, dated as of June 1, 2011. Pursuant to the Sculley Employment Agreement, Mr. Sculley will continue serving as the Company’s President and Chief Executive Officer until June 30, 2016 unless it is terminated sooner pursuant to its terms. Under the Sculley Employment Agreement, Mr. Sculley is paid an annual salary of $410,000. Mr. Sculley may receive equity-related instruments on an annual basis in amounts and subject to vesting and other terms and conditions as the Board of Directors or Compensation Committee of the Board of Directors may determine. During the term of the Sculley Employment Agreement, the Company shall use its reasonable good faith efforts to cause Mr. Sculley to be elected to the Company’s Board of Directors. | |
Pursuant to the Sculley Employment Agreement, Mr. Sculley’s employment may be terminated by the Company with or without Cause (as defined in the Sculley Employment Agreement) and he may terminate his employment for Good Reason (as defined in the Sculley Employment Agreement), among other reasons. If Mr. Sculley’s employment is terminated without Cause or if he terminates it for Good Reason, then Mr. Sculley shall, at the Company’s sole discretion, be entitled to the lesser of (i) the total amount of his base salary that remains unpaid under the Sculley Employment Agreement, which shall be paid monthly, or (ii) monthly salary payments for twelve (12) months, based on Mr. Sculley’s monthly rate of base salary at the date of such termination, which the Company may pay in a lump-sum in lieu of the aforementioned monthly payments. The payment of the severance is contingent upon Mr. Sculley executing a release agreement, such release becoming effective, and only so long as Mr. Sculley does not revoke or breach the provision of the release or the restrictive covenants set forth in Sections 4 and 5 of the Sculley Employment Agreement. Mr. Sculley shall also be entitled to (i) payment for accrued and unused vacation; (ii) the immediate vesting of any non-vested equity-related instruments granted pursuant to Section 2.6 of the Sculley Employment Agreement; and (iii) any bonuses which have accrued prior to the date of Mr. Sculley’s termination. If the Sculley Employment Agreement is terminated with Cause or if Mr. Sculley terminates it without Good Reason then Mr. Sculley shall cease to accrue salary, personal time off, benefits and other compensation on the date of such termination. | |
On December 31, 2013 and effective as of January 1, 2014, the Company and Paul C. Campbell entered into an Amended and Restated Employment Agreement (the “Campbell Employment Agreement”), which amended and restated in its entirety the Executive Employment Agreement, dated as of May 8, 2012. Pursuant to the Campbell Employment Agreement, Mr. Campbell will continue serving as the Company’s Chief Financial Officer and Treasurer until December 31, 2015 unless it is terminated sooner pursuant to its terms. Under the Campbell Employment Agreement, Mr. Campbell is paid an annual salary of $335,000. Mr. Campbell may receive equity-related instruments on an annual basis in amounts and subject to vesting and other terms and conditions as the Board of Directors or Compensation Committee of the Board of Directors may determine. | |
Pursuant to the Campbell Employment Agreement, Mr. Campbell’s employment may be terminated by the Company with or without Cause (as defined in the Campbell Employment Agreement) and he may terminate his employment for Good Reason (as defined in the Campbell Employment Agreement), among other reasons. If Mr. Campbell’s employment is terminated without Cause or if he terminates it for Good Reason, then Mr. Campbell shall, at the Company’s sole discretion, be entitled to the lesser of (i) the total amount of his base salary that remains unpaid under the Campbell Employment Agreement, which shall be paid monthly, or (ii) monthly salary payments for twelve (12) months, based on Mr. Campbell’s monthly rate of base salary at the date of such termination, which the Company may pay in a lump-sum in lieu of the aforementioned monthly payments. The payment of the severance is contingent upon Mr. Campbell executing a release agreement, such release becoming effective, and only so long as Mr. Campbell does not revoke or breach the provision of the release or the restrictive covenants set forth in Sections 4 and 5 of the Campbell Employment Agreement. Mr. Campbell shall also be entitled to (i) payment for accrued and unused vacation; (ii) the immediate vesting of any non-vested equity-related instruments granted pursuant to Section 2.6 of the Campbell Employment Agreement; and (iii) any bonuses which have accrued prior to the date of Mr. Campbell’s termination. If the Campbell Employment Agreement is terminated with Cause or if Mr. Campbell terminates it without Good Reason then Mr. Campbell shall cease to accrue salary, personal time off, benefits and other compensation on the date of such termination. Pursuant to the Campbell Employment Agreement, the Company paid for certain relocation related expenses up to a maximum of $10,000. | |
The Company and Gabriel G. Matus entered into an employment agreement, dated as of April 30, 2013 (the “Matus Employment Agreement”), pursuant to which Mr. Matus will serve as the Company’s Senior Vice President, General Counsel and Secretary. Mr. Matus’ employment with the Company commenced on May 13, 2013 (the “Commencement Date”) and shall continue until May 13, 2015, unless terminated sooner pursuant to the Matus Employment Agreement. Pursuant to the Matus Employment Agreement, Mr. Matus is paid a base salary of $234,000 per annum and received stock options valued at $50,000. | |
If Mr. Matus voluntarily terminates his employment with the Company, other than for Good Reason (as such term is defined in the Employment Agreement), he shall cease to accrue salary, personal time off, benefits and other compensation on the date of voluntary termination and all unvested stock options granted to Mr. Matus will be void. The Company may terminate Mr. Matus’ employment with or without cause. If the Company terminates Mr. Matus’ employment without Cause (as such term is defined in the Employment Agreement) after 120 days from the date of the Employment Agreement, Mr. Matus will be entitled to monthly salary payments for twelve (12) months, based on his monthly rate of base salary at the date of such termination, provided, however, in lieu of the aforementioned monthly payments the Company may in its sole discretion pay such amounts in a single lump-sum payment. In addition, any non-vested options pursuant to the Employment Agreement shall vest immediately. Mr. Matus shall also be entitled to receive (i) payment for accrued and unpaid vacation pay, and (ii) all bonuses that have accrued during the term of the Employment Agreement but have not been paid. | |
Future sales concessions | |
In the first quarter of 2014, the Company received a notification to stop shipments to three of its customers regarding a possible wire bonding problem in some of the microdisplays shipped to these customers. Shipments to two of the three customers resumed in 2014. As the third customer (“this Customer”) was not interested in continuing to use eMagin’s standard commercial microdisplay which was originally shipped, eMagin has been working, at this Customer’s request, on a more mechanically robust display configuration. This Customer provided a proposal to eMagin which the Company countered with a proposal that provided concessions to this Customer predicated on future business. To date, there is no executed agreement. However, it is more likely than not that ultimately there will be a final proposal with acceptance of some concessions. It is reasonably possible that eMagin will incur a future loss once the terms of the proposal are finalized; however, given the uncertainty that still exists, the amount of the potential future loss cannot be reasonably estimated at this time. | |
Concentrations
Concentrations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Concentrations [Abstract] | |||||||||
Concentrations | Note 12: Concentrations | ||||||||
The following is a schedule of revenue by geographic location (in thousands): | |||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
North and South America | $ | 13,560 | $ | 17,674 | |||||
Europe, Middle East, and Africa | 9,246 | 7,632 | |||||||
Asia Pacific | 2,909 | 2,684 | |||||||
Total | $ | 25,715 | $ | 27,990 | |||||
For the Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Domestic | 51 | % | 62 | % | |||||
International | 49 | % | 38 | % | |||||
The Company purchases principally all of its silicon wafers from a single supplier located in Taiwan. | |||||||||
In 2014, there was no customer that accounted for 10% of its revenue. In 2013, there were 2 customers that accounted for 22% of its revenue and 17% of its accounts receivable. | |||||||||
At December 31, 2014 and 2013, there were 10 customers who comprised 78% and 70%, respectively, of the outstanding accounts receivable. In 2014, the Company had 3 customers that together accounted for 44% of its outstanding receivable and in 2013, 2 customers that together 26% of its outstanding receivable. | |||||||||
Quarterly_Financial_Informatio
Quarterly Financial Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Quarterly Financial Information [Abstract] | |||||||||||||
Quarterly Financial Information | Note 13 – QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||
Summarized quarterly financial information for 2014 and 2013 are as follows (in thousands except share data): | |||||||||||||
Quarters Ended | |||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||
Revenues | $ | 6,278 | $ | 7,018 | $ | 5,699 | $ | 6,720 | |||||
Gross profit | $ | 1,931 | $ | 2,169 | $ | 1,745 | $ | 1,539 | |||||
Net loss before income tax | $ | -1,618 | $ | -1,047 | $ | -1,036 | $ | -1,556 | |||||
Net loss | $ | -1,618 | $ | -1,047 | $ | -1,036 | $ | -1,556 | |||||
Net loss per share - basic | $ | -0.07 | $ | -0.04 | $ | -0.04 | $ | -0.07 | |||||
Net loss per share - diluted | $ | -0.07 | $ | -0.04 | $ | -0.04 | $ | -0.07 | |||||
Weighted average number of shares outstanding - basic | 23,778,110 | 23,940,800 | 24,842,945 | 24,943,181 | |||||||||
Weighted average number of shares outstanding - diluted | 23,778,110 | 23,940,800 | 24,842,945 | 24,943,181 | |||||||||
Quarters Ended | |||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||
Revenues | $ | 8,503 | $ | 7,028 | $ | 6,329 | $ | 6,130 | |||||
Gross profit | $ | 3,751 | $ | 2,391 | $ | 2,225 | $ | 59 | |||||
Net (loss) income before income tax | $ | 325 | $ | -1,128 | $ | -1,057 | $ | -3,323 | |||||
Net (loss) income | $ | 205 | $ | -1,008 | $ | -4,559 | $ | -8,705 | |||||
Net (loss) income per share - basic | $ | 0.01 | $ | -0.04 | $ | -0.19 | $ | -0.37 | |||||
Net (loss) income per share - diluted | $ | 0.01 | $ | -0.04 | $ | -0.19 | $ | -0.37 | |||||
Weighted average number of shares outstanding - basic | 23,527,072 | 23,586,413 | 23,718,106 | 23,726,626 | |||||||||
Weighted average number of shares outstanding - diluted | 25,332,976 | 23,586,413 | 23,718,106 | 23,726,626 | |||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | |
Note 14 – SUBSEQUENT EVENTS | |
Effective January 16, 2015, Jerome T. Carollo resigned as Senior Vice President of Business Development and his Employment Agreement was terminated. | |
Signicant_Accounting_Policies_
Signicant Accounting Policies (Policy) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Significant Accounting Policies [Abstract] | ||||||||
Principles Of Consolidation | Principles of consolidation | |||||||
The accompanying consolidated financial statements include the accounts of eMagin Corporation and its wholly owned subsidiary. All intercompany transactions have been eliminated in consolidation. | ||||||||
Use Of Estimates | Use of estimates | |||||||
In accordance with accounting principles generally accepted in the United States of America, management utilizes certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments related to, among others, allowance for doubtful accounts, warranty reserves, inventory reserves, stock-based compensation expense, deferred tax asset valuation allowances, fair value of financial instruments, 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 is recognized when persuasive evidence of an arrangement exists, delivery has occurred, selling price is fixed or determinable and collection is reasonably assured. Product revenue is generally recognized when products are shipped to customers. | ||||||||
The Company also earns revenues from certain research and development (“R&D”) activities (contract revenues) under both firm fixed-price contracts and cost-type contracts. Revenues relating to firm fixed-price contracts and cost-type contracts are generally recognized on the percentage-of-completion method of accounting as costs are incurred (cost-to-cost basis). Progress is generally based on a cost-to-cost approach however an alternative method may be used such as physical progress, labor hours or others depending on the type of contract. Physical progress is determined as a combination of input and output measures as deemed appropriate by the circumstances. Contract costs include all direct material and labor costs and an allocation of allowable indirect costs as defined by each contract, as periodically adjusted to reflect revised agreed upon rates. These rates are subject to audit by the other party. | ||||||||
Product Warranty | Product warranty | |||||||
The Company offers a one-year product replacement warranty. In general, the standard policy is to repair or replace the defective products. The Company accrues for estimated returns of defective products at the time revenue is recognized based on historical activity as well as for specific known product issues. The determination of these accruals requires the Company to make estimates of the frequency and extent of warranty activity and estimate future costs to replace the products under warranty. If the actual warranty activity and/or repair and replacement costs differ significantly from these estimates, adjustments to cost of revenue may be required in future periods. | ||||||||
The following table provides a summary of the activity related to the Company's warranty liability, included in other current liabilities, during the years ended December 31, 2014 and 2013 (in thousands): | ||||||||
For the Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Beginning balance | $ | 394 | $ | 276 | ||||
Warranty accruals | 760 | 425 | ||||||
Warranty usage | -491 | -307 | ||||||
Ending balance | $ | 663 | $ | 394 | ||||
Research And Development Expenses | Research and development expenses | |||||||
Research and development costs are expensed as incurred. | ||||||||
Cash And Cash equivalents | Cash and cash equivalents | |||||||
All highly liquid instruments with an original maturity of three months or less at the date of purchase are considered to be cash equivalents. | ||||||||
Investments | Investments | |||||||
Investments consist of FDIC-insured certificates of deposit which the Company classifies as held-to-maturity since it has the positive intent and ability to hold them until maturity and the investments are carried at amortized cost. As of December 31, 2014 and 2013, the held-to-maturity investments were $0.75 million and $7 million, respectively, maturing within 6 months and 18 months, respectively. | ||||||||
Accounts Receivable | Accounts receivable | |||||||
The majority of the Company’s commercial accounts receivable are due from Original Equipment Manufacturers ("OEM’s”). Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are payable in U.S. dollars, are due within 30-90 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Any account outstanding longer than the contractual payment terms is considered past due. | ||||||||
Allowance For Doubtful Accounts | Allowance for doubtful accounts | |||||||
The allowance for doubtful accounts reflects an estimate of probable losses inherent in the accounts receivable balance. The allowance is determined based on a variety of factors, including the length of time receivables are past due, historical experience, the customer's current ability to pay its obligation, and the condition of the general economy and the industry as a whole. The Company will record a specific reserve for individual accounts when the Company becomes aware of a customer's inability to meet its financial obligations, deterioration in the customer's operating results or financial position, or deterioration in the customer’s credit history. If circumstances related to customers change, the Company would further adjust estimates of the recoverability of receivables. Account balances, when determined to be uncollectible, are charged against the allowance. | ||||||||
Inventory | Inventory | |||||||
Inventory is stated at the lower of cost or market. Cost is determined using the first-in first-out method. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. The Company regularly reviews inventory quantities on hand, future purchase commitments with the Company’s suppliers, and the estimated utility of the inventory. If the Company review indicates a reduction in utility below carrying value, the inventory is reduced to a new cost basis. | ||||||||
Equipment, Furniture And Leasehold Improvements | Equipment, furniture and leasehold improvements | |||||||
Equipment, furniture and leasehold improvements are stated at cost. Depreciation on equipment is calculated using the straight-line method of depreciation over its estimated useful life. Amortization of leasehold improvements is calculated by using the straight-line method over the shorter of their estimated useful lives or lease terms. Expenditures for maintenance and repairs are charged to expense as incurred. | ||||||||
The Company performs impairment tests on its long-lived assets when circumstances indicate that their carrying amounts may not be recoverable. If required, recoverability is tested by comparing the estimated future undiscounted cash flows of the asset or asset group to its carrying value. Impairment losses, if any, are recognized based on the excess of the assets' carrying amounts over their estimated fair values. | ||||||||
Intangible Assets | Intangible assets | |||||||
The Company’s intangible assets are patents that are recorded at purchase price as of the date acquired and amortized over the expected useful life which is generally the remaining life of the patent. During 2014, the Company purchased several patents for $290 thousand which will be amortized over their remaining useful life. The net book value of all intangible assets was $301 thousand at December 31, 2014. The accumulated amortization as of December 31, 2014 was $54 thousand. As of December 31, 2014, the weighted average remaining useful life of the patents was approximately 6.9 years. | ||||||||
Total intangible amortization expense was approximately $16 thousand and $4 thousand for each of the years ended December 31, 2014 and 2013, respectively. Estimated amortization expense for the next five years, beginning with 2015, is as follows: $58 thousand, $54 thousand, $54 thousand, $54 thousand, $32 thousand and thereafter, $49 thousand. | ||||||||
Advertising | Advertising | |||||||
Costs related to advertising and promotion of products are charged to sales and marketing expense as incurred. There was no advertising expense for the years ended December 31, 2014 and 2013. | ||||||||
Shipping And Handling Fees | Shipping and handling fees | |||||||
The Company includes costs related to shipping and handling in cost of goods sold. | ||||||||
Income Taxes | Income taxes | |||||||
The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The effect on deferred tax assets and liabilities of changes in tax rates will be recognized as income or expense in the period that the change occurs. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Changes in circumstances, assumptions and clarification of uncertain tax regimes may require changes to any valuation allowances associated with the Company’s deferred tax assets. | ||||||||
Due to the Company’s operating loss carryforwards, all tax years remain open to examination by the major taxing jurisdictions to which the Company is subject. In the event that the Company is assessed interest or penalties at some point in the future, it will be classified in the financial statements as tax expense. | ||||||||
Income (Loss) Per Common Share | Income (loss) per common share | |||||||
Basic income (loss) per share (“Basic EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period. Diluted income (loss) per share (“Diluted EPS”) is computed by dividing the net income (loss) by the weighted average number of common shares outstanding during the reporting period while also giving effect to all potentially dilutive common shares that were outstanding during the reporting period. | ||||||||
In accordance with ASC 260, entities that have issued securities other than common stock that participate in dividends with the common stock (“participating securities”) are required to apply the two-class method to compute basic EPS. The two-class method is an earnings allocation method under which EPS is calculated for each class of common stock and participating security as if all such earnings had been distributed during the period. On December 22, 2008, the Company issued Convertible Preferred Stock – Series B which participates in dividends with the Company’s common stock and is therefore considered to be a participating security. The participating convertible preferred stock is not required to absorb any net loss. The Company uses the more dilutive method of calculating the diluted earnings per share, either the two class method or “if-converted” method. Under the “if-converted” method, the convertible preferred stock is assumed to have been converted into common shares at the beginning of the period. | ||||||||
For the years ended December 31, 2014 and 2013, the Company reported a net loss and as a result, basic and diluted 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 years ended December 31, 2014 and 2013 that were not included in diluted EPS as their effect would be anti-dilutive: | ||||||||
For the Years Ended December 31, | ||||||||
2014 | 2013 | |||||||
Options | 4,510,107 | 4,597,186 | ||||||
Warrants | — | 1,000,000 | ||||||
Convertible preferred stock | 7,545,333 | 7,545,333 | ||||||
Total potentially dilutive common stock equivalents | 12,055,440 | 13,142,519 | ||||||
Comprehensive Income | Comprehensive income (loss) | |||||||
Comprehensive income (loss) refers to net income (loss) and other revenue, expenses, gains and losses that, under generally accepted accounting principles, are recorded as an element of shareholders’ equity but are excluded from the calculation of net income (loss). | ||||||||
The Company's operations did not give rise to any material items includable in comprehensive income (loss), which were not already in net income (loss) for the years ended December 31, 2014 and 2013. Accordingly, the Company's comprehensive income (loss) is the same as its net income (loss) for the periods presented. | ||||||||
Stock-Based Compensation | Stock-based compensation | |||||||
The Company uses the fair value method of accounting for share-based compensation arrangements. The fair values of stock options are estimated at the date of grant using the Black-Scholes option valuation model. Stock-based compensation expense is reduced for estimated forfeitures and is amortized over the vesting period using the straight-line method. | ||||||||
Concentration Of Credit Risk | Concentration of credit risk | |||||||
The majority of eMagin’s products are sold throughout North America, Asia, and Europe. Sales to the Company’s recurring customers are generally made on open account while sales to occasional customers are typically made on a prepaid basis. eMagin performs periodic credit evaluations on its recurring customers and generally does not require collateral. An allowance for doubtful accounts is maintained for credit losses. | ||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and short-term and long-term investments. The Company’s cash and cash equivalents are deposited with financial institutions which, at times, may exceed federally insured limits. The Company has funds invested in a money market account which are not insured. The Company has Certificates of Deposits (“CDs”) classified as short and long-term investments, which are federally insured. To date, the Company has not experienced any loss associated with this risk. | ||||||||
Recently Issued Accounting Standards | Recently issued accounting standards | |||||||
In 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. | ||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Significant Accounting Policies [Abstract] | ||||||||
Summary Of Activity Related To Warranty Liability Included In Other Current Liabilities | ||||||||
For the Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Beginning balance | $ | 394 | $ | 276 | ||||
Warranty accruals | 760 | 425 | ||||||
Warranty usage | -491 | -307 | ||||||
Ending balance | $ | 663 | $ | 394 | ||||
Potentially Dilutive Common Stock Equivalents | ||||||||
For the Years Ended December 31, | ||||||||
2014 | 2013 | |||||||
Options | 4,510,107 | 4,597,186 | ||||||
Warrants | — | 1,000,000 | ||||||
Convertible preferred stock | 7,545,333 | 7,545,333 | ||||||
Total potentially dilutive common stock equivalents | 12,055,440 | 13,142,519 | ||||||
Accounts_Receivables_Net_Table
Accounts Receivables, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts Receivables, Net [Abstract] | |||||||||
Schedule Of Accounts Receivable | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Accounts receivable | $ | 4,717 | $ | 4,464 | |||||
Less allowance for doubtful accounts | -673 | -145 | |||||||
Accounts receivable, net | $ | 4,044 | $ | 4,319 | |||||
Inventories_Net_Tables
Inventories, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories, Net [Abstract] | |||||||||
Schedule Of Components of Inventories | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 2,506 | $ | 1,905 | |||||
Work in process | 1,086 | 987 | |||||||
Finished goods | 1,291 | 637 | |||||||
Total inventories | 4,883 | 3,529 | |||||||
Less inventory reserve | -297 | -95 | |||||||
Total inventories, net | $ | 4,586 | $ | 3,434 | |||||
Prepaid_Expenses_And_Other_Cur1
Prepaid Expenses And Other Current Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Prepaid Expense And Other Current Assets [Abstract] | ||||||||
Prepaid Expenses And Other Current Assets | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Vendor prepayments | $ | 152 | $ | 52 | ||||
Other prepaid expenses* | 504 | 693 | ||||||
Total prepaid expenses and other current assets | $ | 656 | $ | 745 | ||||
*No individual amounts greater than 5% of current assets. | ||||||||
Equipment_Furniture_And_Leaseh1
Equipment, Furniture And Leasehold Improvements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Equipment, Furniture And Leasehold Improvements [Abstract] | ||||||||
Equipment, Furniture And Leasehold Improvements | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Computer hardware and software | $ | 1,410 | $ | 1,391 | ||||
Lab and factory equipment | 13,084 | 10,760 | ||||||
Furniture, fixtures and office equipment | 344 | 329 | ||||||
Assets under capital leases | 66 | 66 | ||||||
Construction in progress | 1,905 | 2,801 | ||||||
Leasehold improvements | 473 | 473 | ||||||
Total equipment, furniture and leasehold improvements | 17,282 | 15,820 | ||||||
Less: accumulated depreciation | -7,865 | -6,701 | ||||||
Equipment, furniture and leasehold improvements, net | $ | 9,417 | $ | 9,119 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Taxes [Abstract] | ||||||||
Schedule Of Income Before Income Tax | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Domestic | $ | -5,257 | $ | -5,183 | ||||
Total | $ | -5,257 | $ | -5,183 | ||||
Schedule Of Federal And State Income Tax (Benefit) Provision | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Current: | $ | $ | ||||||
Federal | - | 1 | ||||||
State | - | 2 | ||||||
Total current tax expense | - | 3 | ||||||
Deferred: | ||||||||
Federal | - | 8,803 | ||||||
State | - | 78 | ||||||
Total deferred tax expense | - | 8,881 | ||||||
Total tax expense | $ | - | $ | 8,884 | ||||
Deferred Tax Assets And Liabilities | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Deferred tax assets: | ||||||||
Federal and state net operating loss carryforwards | $ | 37,635 | $ | 36,284 | ||||
Research and development tax credit carryforwards | 2,214 | 1,979 | ||||||
Stock based compensation | 3,922 | 3,665 | ||||||
Other provision and expenses not currently deductible | 1,093 | 755 | ||||||
Total deferred tax assets | 44,864 | 42,683 | ||||||
Deferred tax liabilities: | ||||||||
Depreciation and amortization | -682 | -374 | ||||||
Prepaid expenses | -145 | -191 | ||||||
Total deferred liabilities | -827 | -565 | ||||||
Less valuation allowance | -44,037 | -42,118 | ||||||
Net deferred tax asset | $ | — | $ | — | ||||
Federal Net Operating Losses And Tax Credit Carryforwards | ||||||||
Net | Research and | |||||||
Operating | Development | |||||||
Losses | Tax Credits | |||||||
(in millions) | ||||||||
2018-2021 | $ | 44.6 | $ | 0.8 | ||||
2022-2025 | 42.8 | — | ||||||
2026-2034 | 26.7 | 1.4 | ||||||
$ | 114.1 | $ | 2.2 | |||||
Reconciliation Of Effective Tax Rate | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
U.S. Federal income tax expense at federal statutory rate | 34 | % | 34 | % | ||||
Change in valuation allowance | -37 | -214 | ||||||
Change in effective state tax rate | -2 | 1 | ||||||
Credits | 5 | 8 | ||||||
Effective tax rate | — | % | -171 | % | ||||
Stock_Compensation_Tables
Stock Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Stock Compensation [Abstract] | ||||||||||||||
Stock Option Activity | ||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (In Years) | Aggregate Intrinsic Value | |||||||||||
Outstanding at December 31, 2013 | 4,597,186 | $ | 3.82 | |||||||||||
Options granted | 404,113 | 2.63 | ||||||||||||
Options exercised | -266,488 | 1.03 | ||||||||||||
Options forfeited | -109,055 | 3.89 | ||||||||||||
Options cancelled or expired | -115,649 | 5.84 | ||||||||||||
Outstanding at December 31, 2014 | 4,510,107 | $ | 3.83 | 3.93 | $ | 1,292,171 | ||||||||
Vested or expected to vest at December 31, 2014 (1) | 4,493,527 | $ | 3.83 | 3.93 | $ | 1,291,519 | ||||||||
Exercisable at December 31, 2014 | 4,095,661 | $ | 3.87 | 3.89 | $ | 1,246,530 | ||||||||
(1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. | ||||||||||||||
Allocation Of Stock-Based Compensation To Expense Catagories | ||||||||||||||
For the Years Ended | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Cost of revenue | $ | 154 | $ | 285 | ||||||||||
Research and development | 262 | 566 | ||||||||||||
Selling, general and administrative | 609 | 1,231 | ||||||||||||
Total stock compensation expense | $ | 1,025 | $ | 2,082 | ||||||||||
Key Assumptions Used For Black-Scholes Option Pricing Model | ||||||||||||||
For the Years Ended | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||||
Risk free interest rates | 0.78 – 1.85 | % | 0.35 - 1.48 | % | ||||||||||
Expected volatility | 59.1 to 67.8 | % | 63 to 74 | % | ||||||||||
Expected term (in years) | 3.25 to 5.0 | 3.5 to 5.0 | ||||||||||||
Concentrations_Tables
Concentrations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Concentrations [Abstract] | |||||||||
Schedule Of Revenue By Geographic Location | |||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
North and South America | $ | 13,560 | $ | 17,674 | |||||
Europe, Middle East, and Africa | 9,246 | 7,632 | |||||||
Asia Pacific | 2,909 | 2,684 | |||||||
Total | $ | 25,715 | $ | 27,990 | |||||
For the Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Domestic | 51 | % | 62 | % | |||||
International | 49 | % | 38 | % | |||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Quarterly Financial Information [Abstract] | |||||||||||||
Schedule Of Quarterly Financial Information | |||||||||||||
Quarters Ended | |||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||
Revenues | $ | 6,278 | $ | 7,018 | $ | 5,699 | $ | 6,720 | |||||
Gross profit | $ | 1,931 | $ | 2,169 | $ | 1,745 | $ | 1,539 | |||||
Net loss before income tax | $ | -1,618 | $ | -1,047 | $ | -1,036 | $ | -1,556 | |||||
Net loss | $ | -1,618 | $ | -1,047 | $ | -1,036 | $ | -1,556 | |||||
Net loss per share - basic | $ | -0.07 | $ | -0.04 | $ | -0.04 | $ | -0.07 | |||||
Net loss per share - diluted | $ | -0.07 | $ | -0.04 | $ | -0.04 | $ | -0.07 | |||||
Weighted average number of shares outstanding - basic | 23,778,110 | 23,940,800 | 24,842,945 | 24,943,181 | |||||||||
Weighted average number of shares outstanding - diluted | 23,778,110 | 23,940,800 | 24,842,945 | 24,943,181 | |||||||||
Quarters Ended | |||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||
Revenues | $ | 8,503 | $ | 7,028 | $ | 6,329 | $ | 6,130 | |||||
Gross profit | $ | 3,751 | $ | 2,391 | $ | 2,225 | $ | 59 | |||||
Net (loss) income before income tax | $ | 325 | $ | -1,128 | $ | -1,057 | $ | -3,323 | |||||
Net (loss) income | $ | 205 | $ | -1,008 | $ | -4,559 | $ | -8,705 | |||||
Net (loss) income per share - basic | $ | 0.01 | $ | -0.04 | $ | -0.19 | $ | -0.37 | |||||
Net (loss) income per share - diluted | $ | 0.01 | $ | -0.04 | $ | -0.19 | $ | -0.37 | |||||
Weighted average number of shares outstanding - basic | 23,527,072 | 23,586,413 | 23,718,106 | 23,726,626 | |||||||||
Weighted average number of shares outstanding - diluted | 25,332,976 | 23,586,413 | 23,718,106 | 23,726,626 | |||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Line Items] | ||
Standard product warranty period | 1 year | |
Held-to-maturity investments | $750,000 | $7,000,000 |
Aquired patents | 290,000 | |
Aquired patents, weighted average remaining useful life | 6 years 10 months 24 days | |
Net book value of all intangible assets | 301,000 | |
Acquired patents, accumulated amortization | 54,000 | |
Acquired patents, amortization expense | 16,000 | 4,000 |
Acquired patents, estimated amortization expense, 2015 | 58,000 | |
Acquired patents, estimated amortization expense, 2016 | 54,000 | |
Acquired patents, estimated amortization expense, 2017 | 54,000 | |
Acquired patents, estimated amortization expense, 2018 | 54,000 | |
Acquired patents, estimated amortization expense, 2019 | 32,000 | |
Advertising expense | $0 | $0 |
Minimum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Investments maturity period | 6 months | |
Accounts receivable, balance due | 30 days | |
Maximum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Investments maturity period | 18 months | |
Accounts receivable, balance due | 90 days |
Significant_Accounting_Policie3
Significant Accounting Policies (Summary Of Activity Related To Warranty Liability Included In Other Current Liabilities) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Significant Accounting Policies [Abstract] | ||
Beginning balance | $394 | $276 |
Warranty accruals | 760 | 425 |
Warranty usage | -491 | -307 |
Ending balance | $663 | $394 |
Significant_Accounting_Policie4
Significant Accounting Policies (Potentially Dilutive Common Stock Equivalents) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 12,055,440 | 13,142,519 |
Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 4,510,107 | 4,597,186 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 1,000,000 | |
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 |
Accounts_Receivables_Net_Detai
Accounts Receivables, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Receivables, Net [Abstract] | ||
Accounts receivable | $4,717 | $4,464 |
Less allowance for doubtful accounts | -673 | -145 |
Accounts receivable, net | $4,044 | $4,319 |
Inventories_Net_Details
Inventories, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories, Net [Abstract] | ||
Raw materials | $2,506 | $1,905 |
Work in process | 1,086 | 987 |
Finished goods | 1,291 | 637 |
Total inventories | 4,883 | 3,529 |
Less inventory reserve | -297 | -95 |
Total inventories, net | $4,586 | $3,434 |
Prepaid_Expenses_And_Other_Cur2
Prepaid Expenses And Other Current Assets (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Prepaid Expense And Other Current Assets [Abstract] | ||||
Vendor prepayments | $152 | $52 | ||
Other prepaid expenses | 504 | [1] | 693 | [1] |
Total prepaid expenses and other current assets | $656 | $745 | ||
Maximum percentage of other prepaid expenses to currents assets | 5.00% | |||
[1] | No individual amounts greater than 5% of current assets. |
Equipment_Furniture_And_Leaseh2
Equipment, Furniture And Leasehold Improvements (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Total equipment, furniture and leasehold improvements | $17,282 | $15,820 |
Less: accumulated depreciation | -7,865 | -6,701 |
Equipment, furniture and leasehold improvements, net | 9,417 | 9,119 |
Depreciation expense | 1,200 | 900 |
Computer Hardware And Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, furniture and leasehold improvements | 1,410 | 1,391 |
Lab And Factory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, furniture and leasehold improvements | 13,084 | 10,760 |
Furniture, Fixtures And Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, furniture and leasehold improvements | 344 | 329 |
Assets Under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, furniture and leasehold improvements | 66 | 66 |
Construction In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, furniture and leasehold improvements | 1,905 | 2,801 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, furniture and leasehold improvements | $473 | $473 |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Debt [Abstract] | ||
Interest paid, capitalized or accrued | $42,000 | $42,000 |
Line of credit facility, borrowing capacity, description | the Company may borrow up to a maximum of $3 million based on a borrowing base equivalent of 75% of eligible accounts receivable. | |
Line of credit facility, maximum borrowing capacity | 3,000,000 | |
Eligible accounts receivable percentage | 75.00% | |
Monthly interest payment required | 1,000 | |
Interest rate plus Prime | 4.00% | |
Minimum interest rate | 7.25% | |
Early termination fee | 6,000 | |
Renewal date for credit facility | 1-Sep-15 | |
Amortizable loan fees | 30,000 | 30,000 |
Outstanding amount on credit facility | $0 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | ||
Net deferred tax assets | $44,000,000 | $42,100,000 |
Income tax expense | 8,884,000 | |
Contributed capital adjustment if future tax benefits are subsequently recognized | 1,300,000 | |
Federal net operating loss carryforwards | 114,100,000 | |
State net operating loss carryforwards | 1,200,000 | |
Research and development tax credit carryforwards | $2,214,000 | $1,979,000 |
Income_Taxes_Schedule_Of_Incom
Income Taxes (Schedule Of Income Before Income Tax) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Abstract] | ||||||||||
Domestic | ($5,257) | ($5,183) | ||||||||
Loss before provision for income taxes | ($1,556) | ($1,036) | ($1,047) | ($1,618) | ($3,323) | ($1,057) | ($1,128) | $325 | ($5,257) | ($5,183) |
Income_Taxes_Schedule_Of_Feder
Income Taxes (Schedule Of Federal And State Income Tax (Benefit) Provision) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Income Taxes [Abstract] | |
Federal | $1 |
State | 2 |
Total current tax expense | 3 |
Federal | 8,803 |
State | 78 |
Total deferred tax expense (benefit) | 8,881 |
Provision for income taxes | $8,884 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Taxes [Abstract] | ||
Federal and state net operating loss carryforwards | $37,635 | $36,284 |
Research and development tax credit carryforwards | 2,214 | 1,979 |
Stock based compensation | 3,922 | 3,665 |
Other provisions and expenses not currently deductible | 1,093 | 755 |
Total deferred tax assets | 44,864 | 42,683 |
Depreciation and amortization | -682 | -374 |
Prepaid expenses | -145 | -191 |
Total deferred liabilities | -827 | -565 |
Less valuation allowance | -44,037 | -42,118 |
Net deferred tax asset |
Income_Taxes_Federal_Net_Opera
Income Taxes (Federal Net Operating Losses And Tax Credit Carryforwards) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Loss Carryforwards [Line Items] | ||
Net Operating Losses | $114,100,000 | |
Research and Development Tax Credits | 2,214,000 | 1,979,000 |
2018-2021 [Member | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Losses | 44,600,000 | |
Research and Development Tax Credits | 800,000 | |
2022-2025 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Losses | 42,800,000 | |
2026-2034 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Losses | 26,700,000 | |
Research and Development Tax Credits | $1,400,000 |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Effective Tax Rate) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
U.S. Federal income tax expense at federal statutory rate | 34.00% | 34.00% |
Change in valuation allowance | -37.00% | -214.00% |
Change in effective state tax rate | -2.00% | 1.00% |
Credits | 5.00% | 8.00% |
Effective tax rate | -171.00% |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Shareholders' Equity [Line Items] | ||
Proceeds from stock options exercised | $275,000 | $394,000 |
Exercise of common stock options, shares | 266,488 | 254,078 |
Proceeds from exercise of stock warrants | 1,000,000 | |
Number of warrants exercised | 1,000,000 | 0 |
Warrants outstanding | 1,000,000 | |
Shares repurchased | 0 | 12,066 |
Average cost of shares purchased | $2.99 | |
Remaining authorized purchase amount | $2,000,000 | |
Series B Convertible Preferred Stock [Member] | ||
Shareholders' Equity [Line Items] | ||
Preferred stock, shares issued | 5,659 | 5,659 |
Preferred stock, shares outstanding | 5,659 | 5,659 |
Stock_Compensation_Narrative_D
Stock Compensation (Narrative) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 05, 2008 | Nov. 03, 2011 | 17-May-13 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted, shares | 404,113 | |||||
Ratable vesting period | 3 years 11 months 5 days | [1] | ||||
Options in-the-money | 1,337,104 | |||||
Closing stock price | $2.32 | |||||
Expected dividend yield | 0.00% | |||||
Intrinsic value of options exercised | $400,000 | |||||
Excess tax benefit | 200,000 | |||||
Unrecognized stock option compensation net of for feitures | $400,000 | |||||
Unrecognized compensation cost, weighted average period of recognition | 1 year 3 months 18 days | |||||
Weighted average fair value per share for options granted | $1.25 | $1.81 | ||||
Dividend yield | 0.00% | 0.00% | ||||
Warrant shares | 1,000,000 | |||||
Warrants exercise price per share | $1.03 | |||||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Ratable vesting period | 5 years | |||||
The 2005 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grant | 300,000 | |||||
Employee purchase price, percentage of fair market value | 85.00% | |||||
The 2008 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized | 2,000,000 | |||||
Options granted, shares | 0 | |||||
The 2011 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized | 1,400,000 | |||||
Options granted, shares | 0 | |||||
The 2013 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized | 1,500,000 | |||||
Options granted, shares | 404,113 | |||||
The 2011, 2008 and 2003 Plans [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grant | 1,369,464 | |||||
[1] | The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. |
Stock_Compensation_Stock_Optio
Stock Compensation (Stock Option Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | ||
Stock Compensation [Abstract] | |||
Outstanding, shares | 4,597,186 | ||
Options granted, shares | 404,113 | ||
Options exercised, shares | -266,488 | -254,078 | |
Options forfeited, shares | -109,055 | ||
Options cancelled or expired, shares | -115,649 | ||
Outstanding, shares | 4,510,107 | 4,597,186 | |
Vested or expected to vest, shares | 4,493,527 | [1] | |
Exercisable, shares | 4,095,661 | ||
Outstanding, exercise price | $3.82 | ||
Options granted, exercise price | $2.63 | ||
Options exercised, exercise price | $1.03 | ||
Options forfeited, exercise price | $3.89 | ||
Options cancelled or expired, exercise price | $5.84 | ||
Outstanding, exercise price | $3.83 | $3.82 | |
Vested or expected to vest, exercise price | $3.83 | [1] | |
Exercisable, exercise price | $3.87 | ||
Outstanding, contractual life | 3 years 11 months 5 days | ||
Vested or expected to vest, contractual life | 3 years 11 months 5 days | [1] | |
Exercisable, contractual life | 3 years 10 months 21 days | ||
Outstanding, intrinsic value | $1,292,171 | ||
Vested or expected to vest, intrinsic value | 1,291,519 | [1] | |
Exercisable, intrinsic value | $1,246,530 | ||
[1] | The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. |
Stock_Compensation_Allocation_
Stock Compensation (Allocation Of Stock-Based Compensation To Expense Catagories) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | $1,025 | $2,082 |
Cost of Sales [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | 154 | 285 |
Research and Development Expense [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | 262 | 566 |
Selling, General and Administrative Expenses [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | $609 | $1,231 |
Stock_Compensation_Key_Assumpt
Stock Compensation (Key Assumptions Used For Black-Scholes Option Pricing Model) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 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% | 0.35% |
Risk free interest rates, maximum | 1.85% | 1.48% |
Expected volatility, minimum | 59.10% | 63.00% |
Expected volatility, maximum | 67.80% | 74.00% |
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 |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies [Line Items] | ||
Loss contingency liability | $500,000 | |
Rent expense | 1,100,000 | 1,200,000 |
Future minimum lease payments due in 2015 | 900,000 | |
Future minimum lease payments due in 2016 | 900,000 | |
Future minimum lease payments due in 2017 | 900,000 | |
Future minimum lease payments due in 2018 | 900,000 | |
Future minimum lease payments due in 2019 | 400,000 | |
Contribution limitation to percentage of compensation | 15.00% | |
Employer contributions | 70,000 | 100,000 |
Equipment purchases commitments | 400,000 | |
Stock options, value | 400,000 | |
Salary payment entitlement threshold, number of days | 120 days | |
Senior Vice President, Business Development [Member] | ||
Commitments And Contingencies [Line Items] | ||
Stock options, value | 50,000 | |
Senior Vice President, General Counsel and Secretary [Member] | ||
Commitments And Contingencies [Line Items] | ||
Stock options, value | 50,000 | |
Maximum [Member] | Chief Financial Officer And Treasurer [Member] | ||
Commitments And Contingencies [Line Items] | ||
Employee relocation related expenses | 10,000 | |
Scenario, Forecast [Member] | Chief Financial Officer And Treasurer [Member] | ||
Commitments And Contingencies [Line Items] | ||
Annual base salary | 335,000 | |
Scenario, Forecast [Member] | Senior Vice President, Business Development [Member] | ||
Commitments And Contingencies [Line Items] | ||
Annual base salary | 292,000 | |
Scenario, Forecast [Member] | President and Chief Executive Officer [Member] | ||
Commitments And Contingencies [Line Items] | ||
Annual base salary | 410,000 | |
Scenario, Forecast [Member] | Senior Vice President, General Counsel and Secretary [Member] | ||
Commitments And Contingencies [Line Items] | ||
Annual base salary | $234,000 | |
Hopewell Junction, New York [Member] | ||
Commitments And Contingencies [Line Items] | ||
Area of leased real estate property | 37,000 | |
Lease expiration date | 1-May-19 | |
Bellevue, Washington [Member] | ||
Commitments And Contingencies [Line Items] | ||
Area of leased real estate property | 1,500 | |
Santa Clara, California [Member] | ||
Commitments And Contingencies [Line Items] | ||
Area of leased real estate property | 1,800 | |
Lease expiration date | 1-Oct-15 |
Concentrations_Narrative_Detai
Concentrations (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
customer | customer | |
Two Customers [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of customers | 2 | |
Ten Customers [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of customers | 10 | 10 |
Accounts Receivable [Member] | Two Customers [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concetration of risk percentage | 17.00% | |
Accounts Receivable [Member] | Ten Customers [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concetration of risk percentage | 78.00% | 70.00% |
Accounts Receivable [Member] | Three Customers [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of customers | 3 | |
Concetration of risk percentage | 44.00% | |
Accounts Receivable [Member] | Two Additional Customers [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of customers | 2 | |
Concetration of risk percentage | 26.00% | |
Sales Revenue, Net [Member] | Two Customers [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concetration of risk percentage | 22.00% |
Concentrations_Schedule_Of_Rev
Concentrations (Schedule Of Revenue By Geographic Location) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Revenues | $6,720 | $5,699 | $7,018 | $6,278 | $6,130 | $6,329 | $7,028 | $8,503 | $25,715 | $27,990 |
North And South America [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Revenues | 13,560 | 17,674 | ||||||||
Europe, Middle East, And Africa [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Revenues | 9,246 | 7,632 | ||||||||
Asia Pacific [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Revenues | $2,909 | $2,684 | ||||||||
Sales Revenue, Net [Member] | Domestic [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Concetration of risk percentage | 51.00% | 62.00% | ||||||||
Sales Revenue, Net [Member] | International [Member] | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||
Concetration of risk percentage | 49.00% | 38.00% |
Quarterly_Financial_Informatio2
Quarterly Financial Information Disclosure (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Quarterly Financial Information [Abstract] | ||||||||||
Revenues | $6,720 | $5,699 | $7,018 | $6,278 | $6,130 | $6,329 | $7,028 | $8,503 | $25,715 | $27,990 |
Gross profit | 1,539 | 1,745 | 2,169 | 1,931 | 59 | 2,225 | 2,391 | 3,751 | 7,385 | 8,426 |
Net (loss) income before income tax | -1,556 | -1,036 | -1,047 | -1,618 | -3,323 | -1,057 | -1,128 | 325 | -5,257 | -5,183 |
Net loss | ($1,556) | ($1,036) | ($1,047) | ($1,618) | ($8,705) | ($4,559) | ($1,008) | $205 | ($5,257) | ($14,067) |
Net (loss) income per share - basic | ($0.07) | ($0.04) | ($0.04) | ($0.07) | ($0.37) | ($0.19) | ($0.04) | $0.01 | ($0.22) | ($0.60) |
Net (loss) income per share - diluted | ($0.07) | ($0.04) | ($0.04) | ($0.07) | ($0.37) | ($0.19) | ($0.04) | $0.01 | ($0.22) | ($0.60) |
Weighted average number of shares outstanding - basic | 24,943,181 | 24,842,945 | 23,940,800 | 23,778,110 | 23,726,626 | 23,718,106 | 23,586,413 | 23,527,072 | 24,376,259 | 23,639,554 |
Weighted average number of shares outstanding - diluted | 24,943,181 | 24,842,945 | 23,940,800 | 23,778,110 | 23,726,626 | 23,718,106 | 23,586,413 | 25,332,976 | 24,376,259 | 23,639,554 |