Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 | |
Entity Registrant Name | EMAGIN CORP | |
Entity Central Index Key | 1,046,995 | |
Entity Filer Category | Smaller Reporting Company | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 25,449,458 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 5,429 | $ 5,290 |
Investments | 750 | |
Accounts receivable, net | 4,047 | 3,878 |
Unbilled accounts receivable | 686 | 166 |
Inventories, net | 5,464 | 4,586 |
Prepaid expenses and other current assets | 599 | 656 |
Total current assets | 16,225 | 15,326 |
Equipment, furniture and leasehold improvements, net | 9,747 | 9,417 |
Intangibles and other assets | 353 | 382 |
Total assets | 26,325 | 25,125 |
Current liabilities: | ||
Accounts payable | 1,666 | 1,027 |
Accrued expenses | 2,179 | 2,362 |
Other current liabilities | 572 | 664 |
Total current liabilities | $ 4,417 | $ 4,053 |
Commitments and contingencies (Note 8) | ||
Shareholders' equity: | ||
Preferred stock, $.001 par value: authorized 10,000,000 shares: Series B Convertible Preferred stock, (liquidation preference of $5,659,000) stated value $1,000 per share, $.001 par value: 10,000 shares designated and 5,659 issued and outstanding as of June 30, 2015 and December 31, 2014 | ||
Common stock, $.001 par value: authorized 200,000,000 shares, issued and outstanding, 25,449,458 shares as of June 30, 2015 and 25,195,107 shares as of December 31, 2014 | $ 25 | $ 25 |
Additional paid-in capital | 228,962 | 228,380 |
Accumulated deficit | (206,579) | (206,833) |
Treasury stock, 162,066 shares as of June 30, 2015 and December 31, 2014 | (500) | (500) |
Total shareholders' equity | 21,908 | 21,072 |
Total liabilities and shareholders' equity | $ 26,325 | $ 25,125 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 25,449,458 | 25,195,107 |
Common stock, shares outstanding | 25,449,458 | 25,195,107 |
Treasury stock, shares | 162,066 | 162,066 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock - Series B, liquidation preference | $ 5,659 | $ 5,659 |
Preferred stock, stated value | $ 1,000 | $ 1,000 |
Preferred stock, shares issued | 5,659 | 5,659 |
Preferred stock, shares outstanding | 5,659 | 5,659 |
Designated Series B Convertible Preferred Stock, shares | 10,000 | 10,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue: | ||||
Product | $ 5,426 | $ 6,956 | $ 10,530 | $ 13,215 |
Contract | 1,608 | 62 | 2,493 | 81 |
Total revenue, net | 7,034 | 7,018 | 13,023 | 13,296 |
Cost of goods sold: | ||||
Product | 3,533 | 4,838 | 6,585 | 9,170 |
Contract | 893 | 11 | 1,470 | 26 |
Total cost of goods sold | 4,426 | 4,849 | 8,055 | 9,196 |
Gross profit | 2,608 | 2,169 | 4,968 | 4,100 |
Operating expenses: | ||||
Research and development | 929 | 1,282 | 1,832 | 2,708 |
Selling, general and administrative | 1,739 | 1,931 | 2,867 | 4,050 |
Total operating expenses | 2,668 | 3,213 | 4,699 | 6,758 |
Income (loss) from operations | (60) | (1,044) | 269 | (2,658) |
Other income (expense): | ||||
Interest expense, net | (11) | (10) | (21) | (21) |
Other income, net | 5 | 7 | 6 | 14 |
Total other income (expense), net | (6) | (3) | (15) | (7) |
Income (loss) before provision for income taxes | $ (66) | $ (1,047) | $ 254 | $ (2,665) |
Provision for income taxes | ||||
Net income (loss) | $ (66) | $ (1,047) | $ 254 | $ (2,665) |
Less net income allocated to participating securities | 59 | |||
Net income (loss) allocated to common shares | $ (66) | $ (1,047) | $ 195 | $ (2,665) |
Income (loss) per share, basic | $ (0.04) | $ 0.01 | $ (0.11) | |
Income (loss) per share, diluted | $ (0.04) | $ 0.01 | $ (0.11) | |
Weighted average number of shares outstanding: | ||||
Basic | 25,142,371 | 23,940,800 | 25,091,875 | 23,859,455 |
Diluted | 25,142,371 | 23,940,800 | 25,759,778 | 23,859,455 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 254 | $ (2,665) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 703 | 538 |
Reduction in provision for doubtful accounts | (473) | |
Inventory reserve | (17) | 321 |
Stock-based compensation | 316 | 650 |
Loss on sale of asset | 7 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 303 | (1,737) |
Unbilled accounts receivable | (520) | |
Inventories, net | (861) | (2,437) |
Prepaid expenses and other current assets | 57 | (235) |
Accounts payable, accrued expenses, and other current liabilities | (92) | (531) |
Net cash used in operating activities | (330) | (6,089) |
Cash flows from investing activities: | ||
Purchase of equipment | (547) | (457) |
Proceeds from sale of asset | 7 | |
Maturities of investments | 750 | 5,500 |
Purchase of investments | (2,000) | |
Net cash provided by investing activities | 203 | 3,050 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options and warrants | 266 | 1,102 |
Net cash provided by financing activities | 266 | 1,102 |
Net increase (decrease) in cash and cash equivalents | 139 | (1,937) |
Cash and cash equivalents, beginning of period | 5,290 | 4,032 |
Cash and cash equivalents, end of period | 5,429 | 2,095 |
Cash paid for interest | 6 | 6 |
Non-cash investing activities [Abstract] | ||
Non-cash equipment purchases | $ 456 | $ 110 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Note 1: Summary of Significant Accounting Policies The Business eMagin Corporation (the “Company”) designs, develops, manufactures, and markets OLED (organic light emitting diode) on silicon microdisplays and virtual imaging products which utilize OLED microdisplays. The Company’s products are sold mainly in North America, Asia, and Europe. Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements of eMagin Corporation and its subsidiary reflect all adjustments, including normal recurring accruals, necessary for a fair presentation. All significant intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the Securities and Exchange Commission. The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited condensed consolidated financial statements are read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the period ended June 30 , 2015 are not necessarily indicative of the results to be expected for the full year. The consolidated condensed financial statements of December 31, 2014 are derived from audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. In accordance with accounting principles generally accepted in the United States of America, management utilizes certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments related to, among others, allowance for doubtful accounts, warranty reserves, inventory reserves, stock-based compensation expense, deferred tax asset valuation allowances, litigation and other loss contingencies. Management bases its estimates and judgments on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Revenue and Cost Recognition Revenue on product sales is recognized when persuasive evidence of an arrangement exists, such as when a purchase order or contract is received from the customer, the price is fixed, title and risk of loss to the goods has changed and there is a reasonable assurance of collection of the sales proceeds. We obtain written purchase authorizations from our customers for a specified amount of product at a specified price and consider delivery to have occurred at the time of shipment. Revenues from research and development activities relating to firm fixed-price contracts and cost-type contracts are generally recognized on the percentage-of-completion method of accounting as costs are incurred (cost-to-cost basis). Progress is generally based on a cost-to-cost approach however an alternative method may be used such as physical progress, labor hours or others depending on the type of contract. Physical progress is determined as a combination of input and output measures as deemed appropriate by the circumstances. Contract costs include all direct material, labor and subcontractor costs and an allocation of allowable indirect costs as defined by each contract, as periodically adjusted to reflect revised agreed upon rates. These rates are subject to audit by the other party. New Accounting Pronouncement s In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, “ Revenue from Contracts with Customers ,” requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. In July 2015, the FASB voted to defer the effective date for annual reporting periods beginning after December, 15, 2017 (including interim reporting periods within those periods) and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. The Company expects the updated standard to become effective for it in the first quarter of fiscal 2018. It has not yet selected a transition method and the Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-05 “ Customer's Accounting for Fees Paid in a Cloud Computing Arrangement”, which provides specific guidance on the recognition of fees paid by a customer for cloud computing arrangements as either the acquisition of a software license or a service contract. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after Dec. 15, 2015. The Company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. Investments Investments consist of FDIC-insured certificates of deposit (“CDs”) which are classified as held-to-maturity since the Company has the positive intent and ability to hold them until maturity. The CDs are carried at cost which approximates fair value. As of June 30 , 2015, all investments had mature d . Unbilled Accounts Receivable Unbilled accounts receivable represents contract revenue recognized but not yet invoiced due to contract terms or the timing of the accounting invoicing cycle. Intangible Assets – Patents Acquired patents 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. In 2014, the Company purchased several patents for $290 thousand which are being amortized over their remaining useful li ves . As of June 30 , 2015 and December 31, 2014, intangible assets were $355 thousand less accumulated amortization of $83 thousand and $54 thousand, respectively. As of June 30 , 2015, the weighted average remaining useful life of these patents was approximately 6.5 y ears. The total intangible amortization expense was approximately $14 thousand and $29 thousand for the three and six months ended June 30, 2015, respectively, and $1 thousand and $2 thousand for the three and six months ended June 30 , 2014, respectively. Estimated future amortization expense as of June 30 , 2015 is as follows (in thousands): Fiscal Years ending December 31, Total Amortization (unaudited) 2015 (six months remaining) $ 2016 2017 2018 2019 Later years $ Product warranty The Company offers a one -year product replacement warranty. In general, the standard policy is to repair or replace the defective products. The Company accrues for estimated returns of defective products at the time revenue is recognized based on historical activity as well as for specific known product issues. The determination of these accruals requires the Company to make estimates of the frequency and extent of warranty activity and estimate future costs to replace the products under warranty. If the actual warranty activity and/or repair and replacement costs differ significantly from these estimates, adjustments to cost of revenue may be required in future periods. The following table provides a summary of the activity related to the Company's warranty liability included in other current liabilities, (in thousands): Three Months Ended June 30, Six Months Ended June 30, (unaudited) (unaudited) 2015 2014 2015 2014 Beginning balance $ $ $ $ Warranty accruals Warranty usage Ending balance $ $ $ $ Net Income (Loss) per Common Share Basic income (loss) per share is computed using the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of common stock equivalent shares, such as stock options, warrants, and convertible preferred stock. Diluted income (loss) per share is computed using the weighted average number of common shares outstanding and potentially dilutive common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is anti-dilutive. The Company’s Series B Convertible Preferred stock (“Preferred Stock – Series B”) is considered a participating security as the preferred stock participates in dividends with the common stock, which requires the use of the two-class method when computing basic and diluted earnings per share. The Preferred Stock – Series B is not required to absorb any net loss. Though the Company paid a one-time special dividend in 2012, t he Company does not expect to continue to pay dividends on its common or preferred stock in the near future. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share and per share data) for the six months ended June 30 , 2015: Six Months Ended June 30, 2015 (unaudited) Income Shares Per Share Amount Basic EPS Net Income $ Income allocated to participating securities Income allocated to common shares $ $ Diluted EPS Dilutive effect of outstanding common stock options Income allocated to common shares $ $ For the three months ended June 30, 2015 and for the three and six months ended June 30 , 2014, the Company reported a net loss and as a result, basic and diluted net loss per common share are the same. Therefore, in calculating net loss per share amounts, shares underlying the potentially dilutive common stock equivalents were excluded from the calculation of diluted net income per common share because their effect was anti-dilutive. The following is a table of the potentially dilutive common stock equivalents for the three and six month periods ended June 30 , 2015 and 2014 that were not included in diluted EPS as their effect would be anti-dilutive: Three Months Ended June 30, (unaudited) Six Months Ended June 30, (unaudited) 2015 2014 2015 2014 Options Convertible preferred stock — Total potentially dilutive common stock equivalents not included in weighted average share calculation due to anti-dilutive effect |
Accounts Receivables, Net
Accounts Receivables, Net | 6 Months Ended |
Jun. 30, 2015 | |
Accounts Receivables, Net [Abstract] | |
Accounts Receivables, Net | Note 2: Accounts Receivable, net The majority of the Company’s commercial accounts receivable are due from Original Equipment Manufacturers ("OEM’s”). Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable consisted of the following (in thousands): June 30, 2015 December 31, 2014 (unaudited) Accounts receivable $ $ Less allowance for doubtful accounts Accounts receivable, net $ $ |
Inventories, Net
Inventories, Net | 6 Months Ended |
Jun. 30, 2015 | |
Inventories, Net [Abstract] | |
Inventories, Net | Note 3: Inventories, net The components of inventories are as follows (in thousands): June 30, 2015 December 31, 2014 (unaudited) Raw materials $ $ Work in process Finished goods Total inventories Less inventory reserve Total inventories, net $ $ |
Line Of Credit
Line Of Credit | 6 Months Ended |
Jun. 30, 2015 | |
Line Of Credit [Abstract] | |
Line Of Credit | Note 4: Line of Credit At June 30, 2015 , the Company had a credit facility with Access Business Finance, LLC (“Access”) under which the Company may borrow up to a maximum of $ 3 million based on a borrowing base equivalent of 75 % of eligible accounts receivable. The terms are: interest rate is Prime plus 4% but not less than 7.25% , the minimum monthly interest payment is $ 1,000 and the early termination fee is $ 6,000 . The renewal date of the line of credit is September 1, 2015 . The Company’s obligations under the credit facility are secured by its assets. For the six months ended June 30, 2015 and 2014 , the Company had not borrowed on its line of credit. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 5: Stock-based Compensation The Company uses the fair value method of accounting for share-based compensation arrangements. The fair value of stock options is estimated at the date of grant using the Black-Scholes option valuation model. Stock-based compensation expense is reduced for estimated forfeitures and is amortized over the vesting period using the straight-line method. The following table summarizes the allocation of non-cash stock-based compensation to our expense categories for the three and six month periods ended June 30, 2015 and 201 4 (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (unaudited) (unaudited) Cost of revenue $ $ $ Research and development Selling, general and administrative Total stock compensation expense $ $ $ At June 30, 2015 , total unrecognized compensation costs related to stock options was approxima tely $ 0.3 million, net of estimated forfeitures. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures and is expected to be recognized over a weighted average period of approximately 2.4 years. The following key assumptions were used in the Black-Scholes option pricing model to determine the fair value of stock options granted: For the Six Months Ended June 30, 2015 2014 Dividend yield % % Risk free interest rates 0.84 – 1.56 % 0.78 – 1.61 % Expected volatility 57.8 to 63.9 % 60.3 to 67.8 % Expected term (in years) 3.5 to 5.0 3.25 to 5.0 The Company does not expect to pay dividends in the near future . T herefore the Company used an expected dividend yield of 0 %. The risk-free interest rate used in the Black-Scholes option pricing model is based on the implied yield at the time of grant available on U.S. Treasury securities with an equivalent term. Expected volatility is based on the weighted average historical volatility of the Company’s common stock for the equivalent term. The expected term of options represents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on historical experience and vesting schedules of similar awards. A summary of the Company’s stock option activity for the six months ended June 30, 2015 is presented in the following table (unaudited): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2014 $ Options granted Options exercised Options forfeited Options cancelled or expired Outstanding at June 30, 2015 $ $ Vested or expected to vest at June 30, 2015 (1) $ $ Exercisable at June 30, 2015 $ $ (1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options . The aggregate intrinsic value in the table above represents the difference between the exercise price of the underlying options and the quoted price of the Company’s common stock. For the three and six months ended June 30, 2015 , the aggregate intrinsic value of options exercised was approximatel y $ 442 thousand and $486 thousand, respectively . The Company issues new shares of common stock upon exercise of stock options. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 6: Shareholders’ Equity Preferred Stock - Series B Convertible Preferred Stock (“the Preferred Stock – Series B”) As of June 30, 2015 and December 31, 2014 , there were 5,659 shares of Preferred Stock – Series B issued and outstanding . Common Stock The Company received approximate ly $245 tho usand and $266 thousand for the exercise o f 232,65 1 and 254,351 stock options in the three and six months ended June 30, 2015, respectively, and received approximately $7 thousand and $72 thousand for the exercise of 6,080 and 67,363 stock options in the three and six months ended June 30 , 201 4, respectively . There were no warrants exercised in the three and six months ended June 30, 2015 and in the three and six months ended June 30, 2014, the Company received approximately $1.0 million for the exercise of 1 million warrants. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 7: Income Taxes The Company’s effective tax rate is calculated quarterly based upon current assumptions relating to the full year’s estimated operating results and various tax-related items. The Company’s effective tax rate for the six month periods ended June 30, 2015 and 2014 was 0% . The difference between the effective tax rate of 0% and the U.S. federal statutory rate of 34 % for the six months ended June 30, 2015 was primarily due to recognizing a full valuation allowance on deferred tax assets . The difference between the effective tax rate of 0% and the U.S. federal statutory rate of 34% for the six months ended June 30, 2014 was primarily due to the change in the valuation allowance on deferred tax assets . At December 31, 2014, 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 2014 operating loss and projected cumulative loss through 2015, it was more likely than not that none of its deferred tax assets would be realized and therefore, continued to record a full valuation allowance. Though the Company had operating income for the six month period ended June 30, 2015, it is projecting a cumulative loss through 2015 and it is still more likely than not that none of its deferred tax assets would be realized therefore, the Company continued to record a full valuation allowance. The Company’s net operating loss carry forward amounts substantially expire by 2028 . Due to the Company’s operating loss carryforwards, all tax years remain open to examination by the major taxing jurisdictions to which the Company is subject. In the event that the Company is assessed interest or penalties at some point in the future, it will be classified in the financial statements as tax expense. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note 8: Commitments and Contingencies 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 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 May 31, 2019 . The Company leases approximately 1,800 square feet of office space for design and product development in Santa Clara, California with the lease expiring October 31, 2015 . The Company leases approximately 1,500 square feet on a month-to-month basis in Bellevue, Washington. Rent expense was approximately $ 23 3 thousand and $465 thousand for the three and six months ended June 30, 2015, respectively, and $287 thousand and $589 thousand for the three and six months ended June 30, 2014, respectively. E quipment Purchase Commitments The Company has committed to equipment purchases of approximately $ 0.3 million at June 30, 2015 . Future Sales Concessions I n 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. Litigation From time to time, the Company is subject to various legal proceedings and claims that arise in the ordinary course of business. The Company accrues for losses related to ligation when a potential loss is probable and the loss can be reasonably estimated. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. All estimates are based on the best information available at the time which can be highly subjective. At this time, Management believes that a material impact on the Company’s consolidated financial statements from known pending litigation is not probable. On May 5, 2015, Kimchuk, Inc. (“Kimchuk”), a former supplier of eMagin (the “Company”), commenced action against the Company in the U.S. District Court, District of Connecticut, asserting breach of contract and seeking to recover approximately $389,000 in alleged damages. The Company filed its response and counter-complaint on August 11, 2015 wherein the Company denied the material allegations asserted by Kimchuk and seeks approximately $3.5 million in damages from Kimchuk. The Company intends to vigorously defend this matter. Given the preliminary nature of this matter, it is too early to predict the probability of the outcome. |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2015 | |
Concentrations [Abstract] | |
Concentrations | Note 9: Concentrations The following is a schedule of revenue by geographic location (in thousands): Three Months Ended June 30, Six Months Ended June 30, (unaudited) (unaudited) 2015 2014 2015 2014 North and South America $ $ $ $ Europe, Middle East, and Africa Asia Pacific Total $ $ $ $ The following table represents the domestic and international revenues as a percentage of total net revenues: Three Months Ended June 30, Six Months Ended June 30, (unaudited) (unaudited) 2015 2014 2015 2014 Domestic % % % % International % % % % The Company purchases principally all of its silicon wafers from a single supplier located in Taiwan. For the three months ended June 30, 2015, there were three customers that accounted for 32% of its net revenue and for the six months ended June 30, 2015, there were two customers that accounted for 24% of its net revenue. For the three and six months ended June 30, 2014, there was one customer that accounted for 18% and 12% , respectively, of its net revenue. As of June 30, 2015, one customer accounted for 12% of its accounts receivable. |
Summary Of Signicant Accounting
Summary Of Signicant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements of eMagin Corporation and its subsidiary reflect all adjustments, including normal recurring accruals, necessary for a fair presentation. All significant intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the Securities and Exchange Commission. The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited condensed consolidated financial statements are read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the period ended June 30 , 2015 are not necessarily indicative of the results to be expected for the full year. The consolidated condensed financial statements of December 31, 2014 are derived from audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. In accordance with accounting principles generally accepted in the United States of America, management utilizes certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments related to, among others, allowance for doubtful accounts, warranty reserves, inventory reserves, stock-based compensation expense, deferred tax asset valuation allowances, litigation and other loss contingencies. Management bases its estimates and judgments on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. |
Revenue And Cost Recognition | Revenue and Cost Recognition Revenue on product sales is recognized when persuasive evidence of an arrangement exists, such as when a purchase order or contract is received from the customer, the price is fixed, title and risk of loss to the goods has changed and there is a reasonable assurance of collection of the sales proceeds. We obtain written purchase authorizations from our customers for a specified amount of product at a specified price and consider delivery to have occurred at the time of shipment. Revenues from research and development activities relating to firm fixed-price contracts and cost-type contracts are generally recognized on the percentage-of-completion method of accounting as costs are incurred (cost-to-cost basis). Progress is generally based on a cost-to-cost approach however an alternative method may be used such as physical progress, labor hours or others depending on the type of contract. Physical progress is determined as a combination of input and output measures as deemed appropriate by the circumstances. Contract costs include all direct material, labor and subcontractor costs and an allocation of allowable indirect costs as defined by each contract, as periodically adjusted to reflect revised agreed upon rates. These rates are subject to audit by the other party. |
New Accounting Pronouncements | New Accounting Pronouncement s In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, “ Revenue from Contracts with Customers ,” requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. In July 2015, the FASB voted to defer the effective date for annual reporting periods beginning after December, 15, 2017 (including interim reporting periods within those periods) and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. The Company expects the updated standard to become effective for it in the first quarter of fiscal 2018. It has not yet selected a transition method and the Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-05 “ Customer's Accounting for Fees Paid in a Cloud Computing Arrangement”, which provides specific guidance on the recognition of fees paid by a customer for cloud computing arrangements as either the acquisition of a software license or a service contract. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after Dec. 15, 2015. The Company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. |
Investments | Investments Investments consist of FDIC-insured certificates of deposit (“CDs”) which are classified as held-to-maturity since the Company has the positive intent and ability to hold them until maturity. The CDs are carried at cost which approximates fair value. As of June 30 , 2015, all investments had mature d . |
Unbilled Accounts Receivable | Unbilled Accounts Receivable Unbilled accounts receivable represents contract revenue recognized but not yet invoiced due to contract terms or the timing of the accounting invoicing cycle. |
Intangible Assets - Patents | Intangible Assets – Patents Acquired patents 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. In 2014, the Company purchased several patents for $290 thousand which are being amortized over their remaining useful li ves . As of June 30 , 2015 and December 31, 2014, intangible assets were $355 thousand less accumulated amortization of $83 thousand and $54 thousand, respectively. As of June 30 , 2015, the weighted average remaining useful life of these patents was approximately 6.5 y ears. The total intangible amortization expense was approximately $14 thousand and $29 thousand for the three and six months ended June 30, 2015, respectively, and $1 thousand and $2 thousand for the three and six months ended June 30 , 2014, respectively. Estimated future amortization expense as of June 30 , 2015 is as follows (in thousands): Fiscal Years ending December 31, Total Amortization (unaudited) 2015 (six months remaining) $ 2016 2017 2018 2019 Later years $ |
Product Warranty | Product warranty The Company offers a one -year product replacement warranty. In general, the standard policy is to repair or replace the defective products. The Company accrues for estimated returns of defective products at the time revenue is recognized based on historical activity as well as for specific known product issues. The determination of these accruals requires the Company to make estimates of the frequency and extent of warranty activity and estimate future costs to replace the products under warranty. If the actual warranty activity and/or repair and replacement costs differ significantly from these estimates, adjustments to cost of revenue may be required in future periods. The following table provides a summary of the activity related to the Company's warranty liability included in other current liabilities, (in thousands): Three Months Ended June 30, Six Months Ended June 30, (unaudited) (unaudited) 2015 2014 2015 2014 Beginning balance $ $ $ $ Warranty accruals Warranty usage Ending balance $ $ $ $ |
Net (Loss) Income Per Common Share | Net Income (Loss) per Common Share Basic income (loss) per share is computed using the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of common stock equivalent shares, such as stock options, warrants, and convertible preferred stock. Diluted income (loss) per share is computed using the weighted average number of common shares outstanding and potentially dilutive common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is anti-dilutive. The Company’s Series B Convertible Preferred stock (“Preferred Stock – Series B”) is considered a participating security as the preferred stock participates in dividends with the common stock, which requires the use of the two-class method when computing basic and diluted earnings per share. The Preferred Stock – Series B is not required to absorb any net loss. Though the Company paid a one-time special dividend in 2012, t he Company does not expect to continue to pay dividends on its common or preferred stock in the near future. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share and per share data) for the six months ended June 30 , 2015: Six Months Ended June 30, 2015 (unaudited) Income Shares Per Share Amount Basic EPS Net Income $ Income allocated to participating securities Income allocated to common shares $ $ Diluted EPS Dilutive effect of outstanding common stock options Income allocated to common shares $ $ For the three months ended June 30, 2015 and for the three and six months ended June 30 , 2014, the Company reported a net loss and as a result, basic and diluted net loss per common share are the same. Therefore, in calculating net loss per share amounts, shares underlying the potentially dilutive common stock equivalents were excluded from the calculation of diluted net income per common share because their effect was anti-dilutive. The following is a table of the potentially dilutive common stock equivalents for the three and six month periods ended June 30 , 2015 and 2014 that were not included in diluted EPS as their effect would be anti-dilutive: Three Months Ended June 30, (unaudited) Six Months Ended June 30, (unaudited) 2015 2014 2015 2014 Options Convertible preferred stock — Total potentially dilutive common stock equivalents not included in weighted average share calculation due to anti-dilutive effect |
Summary Of Significant Accoun16
Summary Of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Schedule Of Estimated Amortization Expense | Fiscal Years ending December 31, Total Amortization (unaudited) 2015 (six months remaining) $ 2016 2017 2018 2019 Later years $ |
Summary Of Activity Related To Warranty Liability Included In Other Current Liabilities | Three Months Ended June 30, Six Months Ended June 30, (unaudited) (unaudited) 2015 2014 2015 2014 Beginning balance $ $ $ $ Warranty accruals Warranty usage Ending balance $ $ $ $ |
Schedule Of Earnings Per Share, Basic And Diluted | Six Months Ended June 30, 2015 (unaudited) Income Shares Per Share Amount Basic EPS Net Income $ Income allocated to participating securities Income allocated to common shares $ $ Diluted EPS Dilutive effect of outstanding common stock options Income allocated to common shares $ $ |
Potentially Dilutive Common Stock Equivalents | Three Months Ended June 30, (unaudited) Six Months Ended June 30, (unaudited) 2015 2014 2015 2014 Options Convertible preferred stock — Total potentially dilutive common stock equivalents not included in weighted average share calculation due to anti-dilutive effect |
Accounts Receivables, Net (Tabl
Accounts Receivables, Net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounts Receivables, Net [Abstract] | |
Schedule Of Accounts Receivable | June 30, 2015 December 31, 2014 (unaudited) Accounts receivable $ $ Less allowance for doubtful accounts Accounts receivable, net $ $ |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventories, Net [Abstract] | |
Schedule Of Components of Inventories | June 30, 2015 December 31, 2014 (unaudited) Raw materials $ $ Work in process Finished goods Total inventories Less inventory reserve Total inventories, net $ $ |
Stock Compensation (Tables)
Stock Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stock-Based Compensation [Abstract] | |
Allocation Of Stock-Based Compensation To Expense Catagories | For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (unaudited) (unaudited) Cost of revenue $ $ $ Research and development Selling, general and administrative Total stock compensation expense $ $ $ |
Key Assumptions Used For Black-Scholes Option Pricing Model | For the Six Months Ended June 30, 2015 2014 Dividend yield % % Risk free interest rates 0.84 – 1.56 % 0.78 – 1.61 % Expected volatility 57.8 to 63.9 % 60.3 to 67.8 % Expected term (in years) 3.5 to 5.0 3.25 to 5.0 |
Stock Option Activity | Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2014 $ Options granted Options exercised Options forfeited Options cancelled or expired Outstanding at June 30, 2015 $ $ Vested or expected to vest at June 30, 2015 (1) $ $ Exercisable at June 30, 2015 $ $ (1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options . |
Concentrations (Tables)
Concentrations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Concentrations [Abstract] | |
Concentrations | The following is a schedule of revenue by geographic location (in thousands): Three Months Ended June 30, Six Months Ended June 30, (unaudited) (unaudited) 2015 2014 2015 2014 North and South America $ $ $ $ Europe, Middle East, and Africa Asia Pacific Total $ $ $ $ The following table represents the domestic and international revenues as a percentage of total net revenues: Three Months Ended June 30, Six Months Ended June 30, (unaudited) (unaudited) 2015 2014 2015 2014 Domestic % % % % International % % % % |
Summary Of Significant Accoun21
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | |||||
Standard product warranty period | 1 year | ||||
Aquired patents | $ 290 | ||||
Acquired patents, intangible assets | $ 355 | $ 355 | 355 | ||
Acquired patents, accumulated amortization | 83 | $ 83 | $ 54 | ||
Aquired patents, weighted average remaining useful life | 6 years 6 months | ||||
Acquired patents, amortization expense | $ 14 | $ 1 | $ 29 | $ 2 |
Summary Of Significant Accoun22
Summary Of Significant Accounting Policies (Schedule Of Estimated Amortization Expense) (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2015 (six months remaining) | $ 29 |
2,016 | 54 |
2,017 | 54 |
2,018 | 54 |
2,019 | 32 |
Later years | 49 |
Total | $ 272 |
Summary Of Significant Accoun23
Summary Of Significant Accounting Policies (Summary Of Activity Related To Warranty Liability Included In Other Current Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | ||||
Beginning balance | $ 403 | $ 380 | $ 663 | $ 394 |
Warranty accruals | 276 | 437 | 289 | 517 |
Warranty usage | (114) | (214) | (387) | (308) |
Ending balance | $ 565 | $ 603 | $ 565 | $ 603 |
Summary Of Significant Accoun24
Summary Of Significant Accounting Policies (Schedule of Income (Loss) Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | ||||
Net income (loss) | $ (66) | $ (1,047) | $ 254 | $ (2,665) |
Income attributable to participating securities | 59 | |||
Net income (loss) allocated to common shares | $ (66) | $ (1,047) | 195 | $ (2,665) |
Income allocated to common shares - diluted | $ 195 | |||
Weighted average shares outstanding for basic earnings per share | 25,142,371 | 23,940,800 | 25,091,875 | 23,859,455 |
Dilutive effect of outstanding common stock options | 667,903 | |||
Weighted average shares outstanding for diluted earnings per share | 25,142,371 | 23,940,800 | 25,759,778 | 23,859,455 |
Income allocated to common shares, per share, basic | $ (0.04) | $ 0.01 | $ (0.11) | |
Income allocated to common shares, per share, diluted | $ (0.04) | $ 0.01 | $ (0.11) |
Summary Of Significant Accoun25
Summary Of Significant Accounting Policies (Potentially Dilutive Common Stock Equivalents) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive common stock equivalents | 11,700,022 | 12,225,262 | 3,306,545 | 12,225,262 |
Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive common stock equivalents | 4,154,689 | 4,679,929 | 3,306,545 | 4,679,929 |
Series B Convertible Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive common stock equivalents | 7,545,333 | 7,545,333 | 7,545,333 |
Accounts Receivables, Net (Deta
Accounts Receivables, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts Receivables, Net [Abstract] | ||
Accounts receivable | $ 4,247 | $ 4,551 |
Less allowance for doubtful accounts | (200) | (673) |
Accounts receivable, net | $ 4,047 | $ 3,878 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventories, Net [Abstract] | ||
Raw materials | $ 2,426 | $ 2,506 |
Work in process | 1,538 | 1,086 |
Finished goods | 1,780 | 1,291 |
Total inventories | 5,744 | 4,883 |
Less inventory reserve | (280) | (297) |
Total inventories, net | $ 5,464 | $ 4,586 |
Line Of Credit (Details)
Line Of Credit (Details) - Line of Credit [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 3,000,000 | |
Eligible accounts receivable percentage | 75.00% | |
Line of credit facility, borrowing capacity, description | the Company may borrow up to a maximum of $3 million based on a borrowing base equivalent of 75% of eligible accounts receivable. | |
Monthly interest payment required | $ 1,000 | |
Interest rate plus Prime | 4.00% | |
Minimum interest rate | 7.25% | |
Early termination fee | $ 6,000 | |
Renewal date for credit facility | Sep. 1, 2015 | |
Outstanding amount on credit facility | $ 0 | $ 0 |
Stock Compensation (Narrative)
Stock Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Stock-Based Compensation [Abstract] | |||
Unrecognized stock option compensation net of forfeitures | $ 300 | $ 300 | |
Unrecognized compensation cost, weighted average period of recognition | 2 years 4 months 24 days | ||
Dividend yield | 0.00% | 0.00% | |
Intrinsic value of options exercised | $ 442 | $ 486 |
Stock Compensation (Allocation
Stock Compensation (Allocation Of Stock-Based Compensation To Expense Catagories) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | $ 99 | $ 160 | $ 316 | $ 650 |
Cost of Sales [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | 13 | 33 | 36 | 103 |
Research and Development Expense [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | 26 | 42 | 62 | 185 |
Selling, General and Administrative Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | $ 60 | $ 85 | $ 218 | $ 362 |
Stock Compensation (Key Assumpt
Stock Compensation (Key Assumptions Used For Black-Scholes Option Pricing Model) (Details) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Risk free interest rates, minimum | 0.84% | 0.78% |
Risk free interest rates, maximum | 1.56% | 1.61% |
Expected volatility, minimum | 57.80% | 60.30% |
Expected volatility, maximum | 63.90% | 67.80% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 3 years 6 months | 3 years 3 months |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 years | 5 years |
Stock Compensation (Stock Optio
Stock Compensation (Stock Option Activity) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Stock-Based Compensation [Abstract] | |||||
Outstanding, shares | 4,510,107 | ||||
Options granted, shares | 172,441 | ||||
Options exercised, shares | (232,651) | (6,080) | (254,351) | (67,363) | |
Options forfeited, shares | (73,352) | ||||
Options cancelled or expired, shares | (200,156) | ||||
Outstanding, shares | 4,154,689 | 4,154,689 | |||
Vested or expected to vest, shares | [1] | 4,148,245 | 4,148,245 | ||
Exercisable, shares | 3,993,646 | 3,993,646 | |||
Outstanding, exercise price | $ 3.83 | ||||
Options granted, exercise price | 2.82 | ||||
Options exercised, exercise price | 1.05 | ||||
Options forfeited, exercise price | 2.96 | ||||
Options cancelled or expired, exercise price | 6.87 | ||||
Outstanding, exercise price | $ 3.83 | 3.83 | |||
Vested or expected to vest, exercise price | [1] | 3.83 | 3.83 | ||
Exercisable, exercise price | $ 3.83 | $ 3.83 | |||
Outstanding, contractual life | 3 years 10 months 10 days | ||||
Vested or expected to vest, contractual life | [1] | 3 years 10 months 10 days | |||
Exercisable, contractual life | 3 years 9 months 26 days | ||||
Outstanding, intrinsic value | $ 1,331,002 | $ 1,331,002 | |||
Vested or expected to vest, intrinsic value | [1] | 1,330,300 | 1,330,300 | ||
Exercisable, intrinsic value | $ 1,313,438 | $ 1,313,438 | |||
[1] | The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Shareholders' Equity [Line Items] | |||||
Proceeds from stock options exercised | $ 245 | $ 7 | $ 266 | $ 72 | |
Exercise of common stock options, shares | 232,651 | 6,080 | 254,351 | 67,363 | |
Proceeds from exercise of stock warrants | $ 1,000 | $ 1,000 | |||
Number of warrants exercised | 0 | 1,000,000 | 0 | 1,000,000 | |
Series B Convertible Preferred Stock [Member] | |||||
Shareholders' Equity [Line Items] | |||||
Preferred stock, shares issued | 5,659 | 5,659 | 5,659 | ||
Preferred stock, shares outstanding | 5,659 | 5,659 | 5,659 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Taxes [Abstract] | ||
Effective tax rate | 0.00% | 0.00% |
Federal statutory rate | 34.00% | 34.00% |
Operating loss carry forward amounts substantially expire | Dec. 31, 2028 |
Commitments And Contingencies (
Commitments And Contingencies (Details) | May. 05, 2015USD ($) | Jun. 30, 2015USD ($)ft² | Jun. 30, 2014USD ($) | Mar. 31, 2014customer | Jun. 30, 2015USD ($)ft² | Jun. 30, 2014USD ($) | Dec. 31, 2014customer |
Commitments And Contingencies [Line Items] | |||||||
Rent expense | $ 233,000 | $ 287,000 | $ 465,000 | $ 589,000 | |||
Equipment purchases commitments | $ 300,000 | ||||||
Shipments stopped, number of customers | customer | 3 | ||||||
Shipments resumed, number of customers | customer | 2 | ||||||
Loss contingency, damages sought by plaintiff | $ 389,000 | ||||||
Counter complaint, damages sought | $ 3,500,000 | ||||||
Hopewell Junction, New York [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Area of leased real estate property | ft² | 37,000 | 37,000 | |||||
Lease expiration date | May 31, 2019 | ||||||
Santa Clara, California [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Area of leased real estate property | ft² | 1,800 | 1,800 | |||||
Lease expiration date | Oct. 31, 2015 | ||||||
Bellevue, Washington [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Area of leased real estate property | ft² | 1,500 | 1,500 |
Concentrations (Narrative) (Det
Concentrations (Narrative) (Details) - customer | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Sales Revenue, Net [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of customers | 3 | 1 | 2 | 1 |
Concentration of risk percentage | 32.00% | 18.00% | 24.00% | 12.00% |
Accounts Receivable [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of customers | 1 | |||
Concentration of risk percentage | 12.00% |
Concentrations (Concentrations)
Concentrations (Concentrations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 7,034 | $ 7,018 | $ 13,023 | $ 13,296 |
North And South America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 4,999 | 3,295 | 8,723 | 6,301 |
Europe, Middle East, And Africa [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 1,430 | 3,128 | 3,591 | 5,523 |
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 605 | $ 595 | $ 709 | $ 1,472 |
Sales Revenue, Net [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration of risk percentage | 32.00% | 18.00% | 24.00% | 12.00% |
Sales Revenue, Net [Member] | Domestic [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration of risk percentage | 71.00% | 44.00% | 66.00% | 45.00% |
Sales Revenue, Net [Member] | International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration of risk percentage | 29.00% | 56.00% | 34.00% | 55.00% |