Emagin (EMAN) 10-K 17 Mar 16 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Feb. 29, 2016	Jun. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Period Focus	FY
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 Public Float			$ 44.2
Entity Common Stock, Shares Outstanding		29,550,170
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 9,273	$ 5,290
Investments		750
Accounts receivable, net	3,508	3,878
Unbilled accounts receivable	1,445	166
Inventories, net	3,901	4,586
Prepaid expenses and other current assets	489	656
Total current assets	18,616	15,326
Equipment, furniture and leasehold improvements, net	9,131	9,417
Intangibles and other assets	336	382
Total assets	28,083	25,125
Current liabilities:
Accounts payable	1,636	1,027
Accrued compensation	1,246	1,145
Other accrued expenses	1,057	812
Advance payment	56	74
Deferred revenue	80	331
Other current liabilities	602	664
Total current liabilities	$ 4,677	$ 4,053
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, 2015 and 2014
Common stock, $.001 par value: authorized 200,000,000 shares, issued and outstanding, 29,550,170 shares as of December 31, 2015 and 25,195,107 as of December 31, 2014	$ 30	$ 25
Additional paid-in capital	234,814	228,380
Accumulated deficit	(210,938)	(206,833)
Treasury stock, 162,066 shares as of December 31, 2015 and 2014	(500)	(500)
Total shareholders' equity	23,406	21,072
Total liabilities and shareholders' equity	$ 28,083	$ 25,125

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 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	29,550,170	25,195,107
Common stock, shares outstanding	29,550,170	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	$ 5,659,000	$ 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 Oper

Consolidated Statements Of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenue:
Product	$ 20,912	$ 24,061
Contract	4,230	1,654
Total revenue, net	25,142	25,715
Cost of goods sold:
Product	15,466	17,384
Contract	2,698	946
Total cost of goods sold	18,164	18,330
Gross profit	6,978	7,385
Operating expenses:
Research and development	4,077	4,511
Selling, general and administrative	6,963	8,125
Total operating expenses	11,040	12,636
Loss from operations	(4,062)	(5,251)
Other income (expense):
Interest expense, net	(43)	(28)
Other income, net		22
Total other income (expense), net	(43)	(6)
Loss before provision for income taxes	$ (4,105)	$ (5,257)
Provision for income taxes
Net loss	$ (4,105)	$ (5,257)
Loss per share, basic	$ (0.16)	$ (0.22)
Loss per share, diluted	$ (0.16)	$ (0.22)
Weighted average number of shares outstanding:
Basic	25,296,040	24,376,259
Diluted	25,296,040	24,376,259

Consolidated Statements Of Chan

Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
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
Stock-based compensation		$ 1		1,029		$ 1,030
Stock-based compensation, shares		1,000,000
Purchase of treasury stock				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)
Exercise of common stock options		$ 1		266		$ 267
Exercise of common stock options, shares		254,351				254,351
Common stock issued for cash, net of issuance costs		$ 4		5,562		$ 5,566
Common stock issued for cash, net of issuance costs, shares		4,100,712
Stock-based compensation				606		606
Net loss					(4,105)	(4,105)
Balance at Dec. 31, 2015		$ 30	$ (500)	$ 234,814	$ (210,938)	$ 23,406
Balance, shares at Dec. 31, 2015	5,659	29,550,170	(162,066)

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (4,105)	$ (5,257)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,530	1,181
Increase (reduction) in provision for doubtful accounts	(543)	582
Inventory reserve	1,253	202
Stock-based compensation	606	1,025
Loss on sale of asset	12	8
Changes in operating assets and liabilities:
Accounts receivable	(87)	(141)
Unbilled accounts receivable	(279)	(166)
Inventories, net	(567)	(1,355)
Prepaid expenses and other current assets	155	8
Advance payments	(18)	(81)
Deferred revenue	(251)	265
Accounts payable, accrued compensation, accrued expenses, and other current liabilities	1,033	(957)
Net cash used in operating activities	(1,261)	(4,686)
Cash flows from investing activities:
Purchase of equipment	(1,189)	(1,479)
Proceeds from sale of asset		8
Purchase of intangibles		(140)
Maturities of investments	750	8,250
Purchase of investments		(2,000)
Net cash provided by (used in) investing activities	(439)	4,639
Cash flows from financing activities:
Proceeds from sale of common stock, net	5,566
Proceeds from exercise of stock options and warrants	267	1,305
Payments made in the financing of the intangibles	(150)
Net cash provided by financing activities	5,683	1,305
Net increase in cash and cash equivalents	3,983	1,258
Cash and cash equivalents, beginning of year	5,290	4,032
Cash and cash equivalents, end of year	9,273	5,290
Cash paid for interest, net of amount capitalized of $0 and $13 thousand in 2015 and 2014, respectively	13
Non-cash investing activities:
Intangible assets - patents		150
Non-cash equipment purchases	$ 8	$ 6

Consolidated Statements Of Cas7

Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements Of Cash Flows [Abstract]
Capitalized interest	$ 0	$ 13

Nature Of Business

Nature Of Business	12 Months Ended
	Dec. 31, 2015
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 Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
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, 2015 and 2014 (in thousands): For the Year Ended December 31, 2015 2014 Beginning balance $ 663 $ 394 Warranty accruals 455 760 Warranty usage (519) (491) Ending balance $ 599 $ 663 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, 2015, the Company did not have any investments and as of December 31, 2014, the held-to-maturity investments were $0.75 million, maturing within 6 months. Accounts receivable The majority of the Company’s commercial accounts receivable are due from Original Equipment Manufacturers ("OEM’s”). Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are payable in U.S. dollars, are due within 30 - 90 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Any account outstanding longer than the contractual payment terms is considered past due. Unbilled accounts receivable Unbilled receivables principally represent revenues recorded under the percentage-of-completion method of accounting that have not been billed to customers in accordance with the contractual terms of the arrangement. We anticipate that the majority of the fiscal 2015 balance will be collected during the 2016 fiscal year. As of December 31, 2015 and 2014, unbilled accounts receivable was $1.4 million and $0.2 million, respectively. 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 Included in 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. In 2014, the Company purchased several patents for $290 thousand which are being amortized over their remaining useful life. As of December 31, 2015 and 2014, intangible assets were $355 thousand less accumulated amortization of $112 thousand and $54 thousand, respectively. As of December 31, 2015, the weighted average remaining useful life of the patents was approximately 6.3 years. Total intangible amortization expense was approximately $58 thousand and $16 thousand for each of the years ended December 31, 2015 and 2014, respectively. Estimated future amortization expense as of December 31, 2015 is as follows (in thousands): Fiscal Years ending December 31, Total Amortization (unaudited) 2016 $ 54 2017 54 2018 54 2019 32 2020 9 Later years 40 $ 243 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, 2015 and 2014. 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, 2015 and 2014, 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, 2015 and 2014 that were not included in diluted EPS as their effect would be anti-dilutive: For the Years Ended December 31, 2015 2014 Options 4,218,139 4,510,107 Warrants 2,600,000 — Convertible preferred stock 7,545,333 7,545,333 Total potentially dilutive common stock equivalents 14,363,472 12,055,440 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, 2015 and 2014. 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 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 had Certificates of Deposits (“CDs”) classified as short-term investments, which are federally insured. To date, the Company has not experienced any loss associated with this risk. Recently issued accounting standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases , which is intended to improve financial reporting on leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by lease terms of more than 12 months. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial position, results of operations or cash flows. In November 2015, FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. This ASU requires entities with a classified balance sheet to present all deferred tax assets and liabilities as non-current. This ASU is effective for annual and interim periods beginning after December 15, 2016, and can be applied prospectively or retrospectively to adjustments with early adoption permitted at the beginning of an interim or annual reporting period. The Company is evaluating the effect of adopting this new accounting guidance, but does not expect adoption will have a material impact on the Company’s results of operations, cash flows or financial position. In July 2015, the FASB issued ASU No. 2015-11, “ Simplifying the Measurement of Inventory” which requires that inventory be measured at the lower of cost and net realizable value. This ASU should be adopted prospectively and is effective for annual reporting periods (including interim periods therein) beginning after December 15, 2016 with early adoption permitted. The Company does not expect the adoption of this accounting standard to have a material impact on its financial statements. 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 December 15, 2015. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and related disclosures however it does not expect the adoption to have a material impact on its financial statements. In May 2014, the FASB issued ASU No. 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.

Accounts Receivable, Net

Accounts Receivable, Net	12 Months Ended
	Dec. 31, 2015
Accounts Receivable, Net [Abstract]
Accounts Receivable, Net	Note 3: Accounts Receivable, net Accounts receivable consisted of the following (in thousands): December 31, 2015 2014 Accounts receivable $ 3,635 $ 4,551 Less allowance for doubtful accounts (127) (673) Accounts receivable, net $ 3,508 $ 3,878

Inventories, Net

Inventories, Net	12 Months Ended
	Dec. 31, 2015
Inventories, Net [Abstract]
Inventories, Net	Note 4: Inventories, net The components of inventories were as follows (in thousands): December 31, 2015 2014 Raw materials $ 2,595 $ 2,506 Work in process 1,369 1,086 Finished goods 1,486 1,291 Total inventories 5,450 4,883 Less inventory reserve (1,549) (297) Total inventories, net $ 3,901 $ 4,586 At December 31, 2015, the Company recorded an additional inventory reserve of $1.2 million for excess inventory.

Prepaid Expenses And Other Curr

Prepaid Expenses And Other Current Assets	12 Months Ended
	Dec. 31, 2015
Prepaid Expenses 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, 2015 2014 Vendor prepayments $ 51 $ 152 Other prepaid expenses* 438 504 Total prepaid expenses and other current assets $ 489 $ 656 * No individual amounts greater than 5% of current assets.

Equipment, Furniture And Leaseh

Equipment, Furniture And Leasehold Improvements	12 Months Ended
	Dec. 31, 2015
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, 2015 2014 Computer hardware and software $ 1,440 $ 1,410 Lab and factory equipment 15,868 13,084 Furniture, fixtures and office equipment 344 344 Assets under capital leases 66 66 Construction in progress 277 1,905 Leasehold improvements 473 473 Total equipment, furniture and leasehold improvements 18,468 17,282 Less: accumulated depreciation (9,337) (7,865) Equipment, furniture and leasehold improvements, net $ 9,131 $ 9,417 Depreciation expense was $1.5 million and $1.2 million for the years ended December 31, 2015 and 2014, respectively. Assets under capital leases are fully amortized.

Debt

Debt	12 Months Ended
	Dec. 31, 2015
Debt [Abstract]
Debt	Note 7– Debt For the years ended December 31, 2015 and 2014, interest expense includes interest paid, capitalized or accrued of approximately $43 thousand and $42 thousand, respectively, on outstanding debt. Line of Credit At December 31, 2015, 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, 2016 . In 2015 and 2014, 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, 2015, the Company had not borrowed on its line of credit.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
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, 2015 2014 Domestic, current $ (4,105) $ (5,257) Total $ (4,105) $ (5,257) 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, 2015 2014 Deferred tax assets: Federal and state net operating loss carryforwards $ 38,943 $ 37,635 Research and development tax credit carryforwards 2,279 2,214 Stock based compensation 4,057 3,922 Other provision and expenses not currently deductible 1,297 1,093 Total deferred tax assets 46,576 44,864 Deferred tax liabilities: Depreciation and amortization (965) (682) Prepaid expenses (116) (145) Total deferred liabilities (1,081) (827) Less valuation allowance (45,495) (44,037) 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. As of December 31, 2015, the Company’s deferred tax assets were generated primarily from the federal and state net operating loss, stock based compensation and research and development tax credits. In assessing the realizability of deferred tax assets, management determined that it is more likely than not that none of the deferred tax assets will be realized. Therefore, the Company has provided a full valuation allowance against the deferred tax assets at December 31, 2015 and 2014. As of December 31, 2015 and 2014, the Company had net deferred tax assets before its valuation allowance of approximately $45 million and $44 million , respectively. The amount of the valuation allowance for deferred tax assets associated with excess tax deduction from stock-based compensation arrangements that is allocated to contributed capital if the future tax benefits are subsequently recognized is $1.4 million at December 31, 2015. During the year ended December 31, 2015, the Company did not utilize its prior years’ net operating loss carryforwards. As of December 31, 2015, eMagin has federal and state net operating loss carryforwards of approximately $118.1 million and $1.4 million, respectively. The federal research and development tax credit carryforwards are approximately $2. 3 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 — 2026-2036 30.7 1.5 $ 118.1 $ 2.3 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, 2015 2014 U.S. Federal income tax benefit at federal statutory rate 34 % 34 % Change in valuation allowance (36) (37) Change in effective state tax rate — (2) Credits 2 5 Effective tax rate — % — % The Company did no t have unrecognized tax benefits at December 31, 2015 and 2014. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2015 and 2014, the Company recognized no interest and penalties. The Company files income tax returns in the U.S. federal jurisdiction, California, Florida, New York and Massachusetts. 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, 2015
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, 2015 and 2014, there were 5,659 shares of Preferred Stock – Series B issued and outstanding. Common Stock On December 17, 2015, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) pursuant to which the Company sold and issued 3,999,996 shares of the Company’s common stock, par value of $0.001 per share, at a price of $1.50 per share. The net proceeds received after expenses were $5.5 million. In connection with the sale of the shares, the Company sold warrants to purchase an additional 2,600,000 shares of common stock exercisable at a price of $2.05 per share beginning June 23, 2016 and expiring on June 23, 2021 . On September 3, 2015, the Company entered into an At the Market Offering Agreement (the “agreement”) with Craig-Hallum Capital Group LLC, as sales agent (“Craig-Hallum”), pursuant to which the Company may offer and sell, from time to time through Craig-Hallum, shares of its common stock (the “shares”), having an aggregate offering price of up to $4,500,000 . The agreement was terminated effective December 17, 2015. The Company paid Craig-Hallum a commission rate of 3.0% of the aggregate gross sales prices of the shares and the Company also reimbursed Craig-Hallum for certain specified expenses in connection with entering into the agreement. As of December 17, 2015, the Company sold 100,716 shares at sales prices ranging from $2.25 to $2.49 per share, resulting in $90 thousand in net proceeds. The Company received approximately $267 thousand and $275 thousand for the exercise of 254,351 and 266,488 stock options during the years ended December 31, 2015 and 2014, respectively. There were no warrants exercised during 2015. For the year ended December 31, 2014, the Company received approximately $1.0 million from the exercise of 1 million warrants. During the years ended December 31, 2015 and 2014, the Company did not repurchase stock. At December 31, 2015, there was approximately $2.0 million remaining under the stock repurchase plan.

Stock Compensation

Stock Compensation	12 Months Ended
	Dec. 31, 2015
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, 2015, the number of shares of common stock available for issuance was 300,000 . As of December 31, 2015, 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 2015, 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 2015, 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 2015, there were 455,710 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 year ended December 31, 2015 and 2014 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, 2014 4,510,107 $ 3.83 Options granted 455,710 2.71 Options exercised (254,351) 1.05 Options forfeited (73,352) 2.96 Options cancelled or expired (419,975) 5.28 Outstanding at December 31, 2015 4,218,139 $ 3.75 3.62 $ 186,247 Vested or expected to vest at December 31, 2015 (1) 4,212,685 $ 3.75 3.62 $ 186,247 Exercisable at December 31, 2015 3,945,530 $ 3.79 3.55 $ 186,247 (1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. At December 31, 2015, there were 1,150,931 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, 2015 for the options that were in-the-money. As of December 31, 2015 there were 587,203 option s that were in-the-money. The Company’s closing stock price was $1.40 as of December 31, 2015. The Company issues new shares of common stock upon exercise of stock options. The intrinsic value of the 2015 options exercised was $0.5 million of which $0.3 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, 2015 and 2014 (in thousands): For the Years Ended December 31, 2015 2014 Cost of revenue $ 51 $ 154 Research and development 118 262 Selling, general and administrative 437 609 Total stock compensation expense $ 606 $ 1,025 At December 31, 2015, total unrecognized compensation costs related to stock options was approximately $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 Years Ended December 31, 2015 2014 Dividend yield 0 % 0 % Risk free interest rates 0.84 – 1.56 % 0.78 – 1.85 % Expected volatility 51.2 to 63.9 % 59.1 to 67.8 % Expected term (in years) 3.5 to 5.0 3.25 to 5.0 The weighted average fair value per share for options granted in 2015 and 2014 was $1.17 and $1.25 , respectively. There was no dividend declared and paid in 2015. 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, 2015, there were 2.6 million warrants to purchase shares of common stock outstanding and exercisable at an exercise price of $2.05 with an expiration date of June 23, 2021 . At December 31, 2014, there were no warrants outstanding.

Commitments And Contingencies

Commitments And Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments And Contingencies [Abstract]
Commitments And Contingencies	Note 11: 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 Santa Clara, California and Bellevue, Washington. The Company’s corporate headquarters and manufacturing facilities are leased from GLOBALFOUNDRIES 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 20 19 . The Company leases approximately 2,000 square feet of office space for design and product development in Santa Clara, California and the lease expires in October 2017 . In Bellevue, Washington, eMagin leases approximately 1,800 square feet of office space for administrative offices and the lease expires in October 2017 . Rent expense was approximately $0.9 million and $1.1 million for years ended December 31, 2015 and 2014, respectively. The future minimum lease payments for the years 2016 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 $0.1 million at December 31, 2015 . 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, 2015 and 2014, the matched contributions to the 401(k) Plan were $0 and $72 thousand, respectively. Employment and separation agreements 2015 On September 14, 2015, Jeffrey P. Lucas was elected to serve as eMagin’s Chief Financial Officer by the Company’s Board of Directors. Pursuant to an offer letter, Mr. Lucas (i) is paid a base salary of $345,000 ; (ii) is eligible for a bonus of up to 20% of his base salary based on the Company’s performance; (iii) was granted options to purchase 75,000 shares at a strike price of $2.50 with a term of 5 years and vesting over 3 years; (iv) has a relocation allowance of $13 thousand; and (v) in the event of termination, will receive severance pay equal to 6 months of Mr. Lucas’s salary at the time of termination. Effective September 14, 2015, Paul C. Campbell resigned as Chief Financial Officer. Mr. Campbell and eMagin entered into a Separation Agreement and General Release which the Company agreed to pay the remainder of the compensation, $103 thousand, due to Mr. Campbell under his employment agreement and an additional six months of Mr. Campbell’s base salary, $168 thousand, payable on June 30, 2016. Effective January 16, 2015, Jerome T. Carollo resigned as Senior Vice President of Business Development and his Employment Agreement was terminated. 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. 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. 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 to which the Company countered that included concessions to this Customer predicated on future business. To date, there is no executed agreement. It is possible that an agreement will be reached with concessions on which the Company will incur a future loss. However, given the uncertainty that exists, the amount of the potential future loss, if any, cannot be reasonably estimated at this time. 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. The Company has determined that a potential loss is probable and estimable therefore a litigation reserve was recorded in accrued expenses in the consolidated balance sheet and an associated expense was recorded under selling, general and administrative expense in the condensed consolidated statement of operations. 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.

Concentrations

Concentrations	12 Months Ended
	Dec. 31, 2015
Concentrations [Abstract]
Concentrations	Note 12: Concentrations The following is a schedule of revenue by geographic location (in thousands): For the Years Ended December 31, 2015 2014 North and South America $ 16,182 $ 13,560 Europe, Middle East, and Africa 6,950 9,246 Asia Pacific 2,010 2,909 Total $ 25,142 $ 25,715 For the Years Ended December 31, 2015 2014 Domestic 63 % 51 % International 37 % 49 % The Company purchases principally all of its silicon wafers from a single supplier located in Taiwan. In 2015, there were 2 customers that accounted for 23% of its revenue and 5% of its accounts receivable. In 2014, there was no customer that accounted for 10% of its revenue. At December 31, 2015 and 2014, there were 10 customers who comprised 62% and 78% , respectively, of the outstanding accounts receivable. In 2015, the Company had 1 customer that accounted for 12% of its outstanding receivable and in 2014, 3 customers that together accounted for 44% of its outstanding receivable.

Quarterly Financial Information

Quarterly Financial Information	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information [Abstract]
Quarterly Financial Information	Note 13 – QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Summarized quarterly financial information for 2015 and 2014 are as follows (in thousands except share data): Quarters Ended March 31, June 30, September 30, December 31, 2015 2015 2015 2015 Revenues $ 5,989 $ 7,034 $ 5,405 $ 6,714 Gross profit $ 2,360 $ 2,608 $ 1,106 $ 904 Net (loss) income before income tax $ 320 $ (66) $ (2,234) $ (2,125) Net (loss) income $ 320 $ (66) $ (2,234) $ (2,125) Net (loss) income per share - basic $ 0.01 $ — $ (0.09) $ (0.08) Net (loss) income per share - diluted $ 0.01 $ — $ (0.09) $ (0.08) Weighted average number of shares outstanding - basic 25,041,380 25,142,371 25,287,849 25,712,562 Weighted average number of shares outstanding - diluted 25,747,631 25,142,371 25,287,849 25,712,562 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) income before income tax $ (1,618) $ (1,047) $ (1,036) $ (1,556) Net (loss) income $ (1,618) $ (1,047) $ (1,036) $ (1,556) Net (loss) income per share - basic $ (0.07) $ (0.04) $ (0.04) $ (0.07) Net (loss) income 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

Significant Accounting Polici21

Significant Accounting Policies (Policy)	12 Months Ended
	Dec. 31, 2015
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, 2015 and 2014 (in thousands): For the Year Ended December 31, 2015 2014 Beginning balance $ 663 $ 394 Warranty accruals 455 760 Warranty usage (519) (491) Ending balance $ 599 $ 663
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, 2015, the Company did not have any investments and as of December 31, 2014, the held-to-maturity investments were $0.75 million, maturing within 6 months.
Accounts Receivable	Accounts receivable The majority of the Company’s commercial accounts receivable are due from Original Equipment Manufacturers ("OEM’s”). Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are payable in U.S. dollars, are due within 30 - 90 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Any account outstanding longer than the contractual payment terms is considered past due.
Unbilled Accounts Receivable	Unbilled accounts receivable Unbilled receivables principally represent revenues recorded under the percentage-of-completion method of accounting that have not been billed to customers in accordance with the contractual terms of the arrangement. We anticipate that the majority of the fiscal 2015 balance will be collected during the 2016 fiscal year. As of December 31, 2015 and 2014, unbilled accounts receivable was $1.4 million and $0.2 million, respectively.
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 Included in 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. In 2014, the Company purchased several patents for $290 thousand which are being amortized over their remaining useful life. As of December 31, 2015 and 2014, intangible assets were $355 thousand less accumulated amortization of $112 thousand and $54 thousand, respectively. As of December 31, 2015, the weighted average remaining useful life of the patents was approximately 6.3 years. Total intangible amortization expense was approximately $58 thousand and $16 thousand for each of the years ended December 31, 2015 and 2014, respectively. Estimated future amortization expense as of December 31, 2015 is as follows (in thousands): Fiscal Years ending December 31, Total Amortization (unaudited) 2016 $ 54 2017 54 2018 54 2019 32 2020 9 Later years 40 $ 243
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, 2015 and 2014.
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, 2015 and 2014, 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, 2015 and 2014 that were not included in diluted EPS as their effect would be anti-dilutive: For the Years Ended December 31, 2015 2014 Options 4,218,139 4,510,107 Warrants 2,600,000 — Convertible preferred stock 7,545,333 7,545,333 Total potentially dilutive common stock equivalents 14,363,472 12,055,440
Comprehensive Income (Loss)	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, 2015 and 2014. 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 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 had Certificates of Deposits (“CDs”) classified as short-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 February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases , which is intended to improve financial reporting on leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by lease terms of more than 12 months. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial position, results of operations or cash flows. In November 2015, FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. This ASU requires entities with a classified balance sheet to present all deferred tax assets and liabilities as non-current. This ASU is effective for annual and interim periods beginning after December 15, 2016, and can be applied prospectively or retrospectively to adjustments with early adoption permitted at the beginning of an interim or annual reporting period. The Company is evaluating the effect of adopting this new accounting guidance, but does not expect adoption will have a material impact on the Company’s results of operations, cash flows or financial position. In July 2015, the FASB issued ASU No. 2015-11, “ Simplifying the Measurement of Inventory” which requires that inventory be measured at the lower of cost and net realizable value. This ASU should be adopted prospectively and is effective for annual reporting periods (including interim periods therein) beginning after December 15, 2016 with early adoption permitted. The Company does not expect the adoption of this accounting standard to have a material impact on its financial statements. 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 December 15, 2015. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and related disclosures however it does not expect the adoption to have a material impact on its financial statements. In May 2014, the FASB issued ASU No. 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.

Significant Accounting Polici22

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Significant Accounting Policies [Abstract]
Summary Of Activity Related To Warranty Liability Included In Other Current Liabilities	For the Year Ended December 31, 2015 2014 Beginning balance $ 663 $ 394 Warranty accruals 455 760 Warranty usage (519) (491) Ending balance $ 599 $ 663
Schedule Of Estimated Future Amortization Expense	Fiscal Years ending December 31, Total Amortization (unaudited) 2016 $ 54 2017 54 2018 54 2019 32 2020 9 Later years 40 $ 243
Schedule Of Potentially Dilutive Common Stock Equivalents	For the Years Ended December 31, 2015 2014 Options 4,218,139 4,510,107 Warrants 2,600,000 — Convertible preferred stock 7,545,333 7,545,333 Total potentially dilutive common stock equivalents 14,363,472 12,055,440

Accounts Receivable, Net (Table

Accounts Receivable, Net (Tables)	12 Months Ended
	Dec. 31, 2015
Accounts Receivable, Net [Abstract]
Schedule Of Accounts Receivable	December 31, 2015 2014 Accounts receivable $ 3,635 $ 4,551 Less allowance for doubtful accounts (127) (673) Accounts receivable, net $ 3,508 $ 3,878

Inventories, Net (Tables)

Inventories, Net (Tables)	12 Months Ended
	Dec. 31, 2015
Inventories, Net [Abstract]
Schedule Of Components of Inventories	December 31, 2015 2014 Raw materials $ 2,595 $ 2,506 Work in process 1,369 1,086 Finished goods 1,486 1,291 Total inventories 5,450 4,883 Less inventory reserve (1,549) (297) Total inventories, net $ 3,901 $ 4,586

Prepaid Expenses And Other Cu25

Prepaid Expenses And Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Prepaid Expenses And Other Current Assets [Abstract]
Schedule Of Prepaid Expenses And Other Current Assets	December 31, 2015 2014 Vendor prepayments $ 51 $ 152 Other prepaid expenses* 438 504 Total prepaid expenses and other current assets $ 489 $ 656 * No individual amounts greater than 5% of current assets.

Equipment, Furniture And Leas26

Equipment, Furniture And Leasehold Improvements (Tables)	12 Months Ended
	Dec. 31, 2015
Equipment, Furniture And Leasehold Improvements [Abstract]
Schedule Of Equipment, Furniture And Leasehold Improvements	December 31, 2015 2014 Computer hardware and software $ 1,440 $ 1,410 Lab and factory equipment 15,868 13,084 Furniture, fixtures and office equipment 344 344 Assets under capital leases 66 66 Construction in progress 277 1,905 Leasehold improvements 473 473 Total equipment, furniture and leasehold improvements 18,468 17,282 Less: accumulated depreciation (9,337) (7,865) Equipment, furniture and leasehold improvements, net $ 9,131 $ 9,417

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes [Abstract]
Schedule Of Net Loss Before Income Taxes	For the Years Ended December 31, 2015 2014 Domestic, current $ (4,105) $ (5,257) Total $ (4,105) $ (5,257)
Schedule Of Deferred Taxes	For the Years Ended December 31, 2015 2014 Deferred tax assets: Federal and state net operating loss carryforwards $ 38,943 $ 37,635 Research and development tax credit carryforwards 2,279 2,214 Stock based compensation 4,057 3,922 Other provision and expenses not currently deductible 1,297 1,093 Total deferred tax assets 46,576 44,864 Deferred tax liabilities: Depreciation and amortization (965) (682) Prepaid expenses (116) (145) Total deferred liabilities (1,081) (827) Less valuation allowance (45,495) (44,037) Net deferred tax asset $ — $ —
Schedule Of 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 — 2026-2036 30.7 1.5 $ 118.1 $ 2.3
Schedule Of Reconciliation Of Effective Tax Rate	For the Years Ended December 31, 2015 2014 U.S. Federal income tax benefit at federal statutory rate 34 % 34 % Change in valuation allowance (36) (37) Change in effective state tax rate — (2) Credits 2 5 Effective tax rate — % — %

Stock Compensation (Tables)

Stock Compensation (Tables)	12 Months Ended
	Dec. 31, 2015
Stock Compensation [Abstract]
Schedule Of Option Activity	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2014 4,510,107 $ 3.83 Options granted 455,710 2.71 Options exercised (254,351) 1.05 Options forfeited (73,352) 2.96 Options cancelled or expired (419,975) 5.28 Outstanding at December 31, 2015 4,218,139 $ 3.75 3.62 $ 186,247 Vested or expected to vest at December 31, 2015 (1) 4,212,685 $ 3.75 3.62 $ 186,247 Exercisable at December 31, 2015 3,945,530 $ 3.79 3.55 $ 186,247 (1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options.
Schedule Of Allocation Of Non-Cash Stock-Based Compensation	For the Years Ended December 31, 2015 2014 Cost of revenue $ 51 $ 154 Research and development 118 262 Selling, general and administrative 437 609 Total stock compensation expense $ 606 $ 1,025
Schedule Of Key Assumptions Of Fair Value Of Stock Options Granted	For the Years Ended December 31, 2015 2014 Dividend yield 0 % 0 % Risk free interest rates 0.84 – 1.56 % 0.78 – 1.85 % Expected volatility 51.2 to 63.9 % 59.1 to 67.8 % Expected term (in years) 3.5 to 5.0 3.25 to 5.0

Concentrations (Tables)

Concentrations (Tables)	12 Months Ended
	Dec. 31, 2015
Concentrations [Abstract]
Schedule Of Revenue By Geographic Location	For the Years Ended December 31, 2015 2014 North and South America $ 16,182 $ 13,560 Europe, Middle East, and Africa 6,950 9,246 Asia Pacific 2,010 2,909 Total $ 25,142 $ 25,715 For the Years Ended December 31, 2015 2014 Domestic 63 % 51 % International 37 % 49 %

Quarterly Financial Informati30

Quarterly Financial Information (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information [Abstract]
Schedule Of Quarterly Financial Information	Quarters Ended March 31, June 30, September 30, December 31, 2015 2015 2015 2015 Revenues $ 5,989 $ 7,034 $ 5,405 $ 6,714 Gross profit $ 2,360 $ 2,608 $ 1,106 $ 904 Net (loss) income before income tax $ 320 $ (66) $ (2,234) $ (2,125) Net (loss) income $ 320 $ (66) $ (2,234) $ (2,125) Net (loss) income per share - basic $ 0.01 $ — $ (0.09) $ (0.08) Net (loss) income per share - diluted $ 0.01 $ — $ (0.09) $ (0.08) Weighted average number of shares outstanding - basic 25,041,380 25,142,371 25,287,849 25,712,562 Weighted average number of shares outstanding - diluted 25,747,631 25,142,371 25,287,849 25,712,562 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) income before income tax $ (1,618) $ (1,047) $ (1,036) $ (1,556) Net (loss) income $ (1,618) $ (1,047) $ (1,036) $ (1,556) Net (loss) income per share - basic $ (0.07) $ (0.04) $ (0.04) $ (0.07) Net (loss) income 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

Significant Accounting Polici31

Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Standard product warranty period	1 year
Held-to-maturity investments		$ 750
Unbilled accounts receivable	$ 1,445	166
Acquired patents		290
Acquired patents, intangible assets	355	355
Acquired patents, accumulated amortization	$ 112	54
Acquired patents, weighted average remaining useful life	6 years 3 months 18 days
Total intangible amortization expense	$ 58	16
Advertising expense	$ 0	$ 0
Minimum [Member]
Investments maturity period		6 months
Accounts receivable, balance due	30 days
Maximum [Member]
Accounts receivable, balance due	90 days

Significant Accounting Polici32

Significant Accounting Policies (Summary Of Activity Related To Warranty Liability Included In Other Current Liabilities) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Significant Accounting Policies [Abstract]
Beginning balance	$ 663	$ 394
Warranty accruals	455	760
Warranty usage	(519)	(491)
Ending balance	$ 599	$ 663

Significant Accounting Polici33

Significant Accounting Policies (Schedule Of Estimated Future Amortization Expense) (Details) $ in Thousands	Dec. 31, 2015USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2,016	$ 54
2,017	54
2,018	54
2,019	32
2,020	9
Later years	40
Total	$ 243

Significant Accounting Polici34

Significant Accounting Policies (Schedule Of Potentially Dilutive Common Stock Equivalents) (Details) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common stock equivalents	14,363,472	12,055,440
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common stock equivalents	4,218,139	4,510,107
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common stock equivalents	2,600,000
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 Receivable, Net (Detai

Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accounts Receivable, Net [Abstract]
Accounts receivable	$ 3,635	$ 4,551
Less allowance for doubtful accounts	(127)	(673)
Accounts receivable, net	$ 3,508	$ 3,878

Inventories, Net (Details)

Inventories, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Inventories, Net [Abstract]
Raw materials	$ 2,595	$ 2,506
Work in process	1,369	1,086
Finished goods	1,486	1,291
Total inventories	5,450	4,883
Less inventory reserve	(1,549)	(297)
Total inventories, net	3,901	$ 4,586
Additional inventory reserve for excess inventory	$ 1,200

Prepaid Expenses And Other Cu37

Prepaid Expenses And Other Current Assets (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
Prepaid Expenses And Other Current Assets [Abstract]
Vendor prepayments		$ 51	$ 152
Other prepaid expenses	[1]	438	504
Total prepaid expenses and other current assets		$ 489	$ 656
Maximum percentage of other prepaid expenses to currents assets		5.00%	5.00%
[1]	No individual amounts greater than 5% of current assets.

Equipment, Furniture And Leas38

Equipment, Furniture And Leasehold Improvements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Total equipment, furniture and leasehold improvements	$ 18,468	$ 17,282
Less: accumulated depreciation	(9,337)	(7,865)
Equipment, furniture and leasehold improvements, net	9,131	9,417
Depreciation expense	1,500	1,200
Computer Hardware And Software [Member]
Property, Plant and Equipment [Line Items]
Total equipment, furniture and leasehold improvements	1,440	1,410
Lab And Factory Equipment [Member]
Property, Plant and Equipment [Line Items]
Total equipment, furniture and leasehold improvements	15,868	13,084
Furniture, Fixtures And Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total equipment, furniture and leasehold improvements	344	344
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	277	1,905
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total equipment, furniture and leasehold improvements	$ 473	$ 473

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Line of Credit Facility [Line Items]
Interest paid, capitalized or accrued	$ 43	$ 42
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
Eligible accounts receivable percentage	75.00%
Monthly interest payment required	$ 1
Minimum interest rate	7.25%
Early termination fee	$ 6
Renewal date for credit facility	Sep. 1, 2016
Amortizable loan fees	$ 30	$ 30
Outstanding amount on credit facility	$ 0
Prime Rate [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	4.00%

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Abstract]
Net deferred tax assets	$ 45,000	$ 44,000
Contributed capital adjustment if future tax benefits are subsequently recognized	1,400
Federal net operating loss carryforwards	118,100
State net operating loss carryforwards	1,400
Research and development tax credit carryforwards	2,279	2,214
Unrecognized tax benefits	0	0
Unrecognized tax benefits, interest and penalties	$ 0	$ 0

Income Taxes (Schedule Of Net L

Income Taxes (Schedule Of Net Loss Before Income Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Abstract]
Domestic, current									$ (4,105)	$ (5,257)
Loss before provision for income taxes	$ (2,125)	$ (2,234)	$ (66)	$ 320	$ (1,556)	$ (1,036)	$ (1,047)	$ (1,618)	$ (4,105)	$ (5,257)

Income Taxes (Schedule Of Defer

Income Taxes (Schedule Of Deferred Taxes) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Abstract]
Federal and state net operating loss carryforwards	$ 38,943	$ 37,635
Research and development tax credit carryforwards	2,279	2,214
Stock based compensation	4,057	3,922
Other provision and expenses not currently deductible	1,297	1,093
Total deferred tax assets	46,576	44,864
Depreciation and amortization	(965)	(682)
Prepaid expenses	(116)	(145)
Total deferred liabilities	(1,081)	(827)
Less valuation allowance	$ (45,495)	$ (44,037)
Net deferred tax asset

Income Taxes (Schedule Of Feder

Income Taxes (Schedule Of Federal Net Operating Losses And Tax Credit Carryforwards) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Net Operating Losses	$ 118,100
Research and Development Tax Credits	2,279	$ 2,214
2018-2021 [Member
Operating Loss Carryforwards [Line Items]
Net Operating Losses	44,600
Research and Development Tax Credits	800
2022-2025 [Member]
Operating Loss Carryforwards [Line Items]
Net Operating Losses	42,800
2026-2036 [Member]
Operating Loss Carryforwards [Line Items]
Net Operating Losses	30,700
Research and Development Tax Credits	$ 1,500

Income Taxes (Schedule Of Recon

Income Taxes (Schedule Of Reconciliation Of Effective Tax Rate) (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]
U.S. Federal income tax benefit at federal statutory rate	34.00%	34.00%
Change in valuation allowance	(36.00%)	(37.00%)
Change in effective state tax rate		(2.00%)
Credits	2.00%	5.00%
Effective tax rate

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($)	Dec. 17, 2015	Dec. 31, 2015	Dec. 31, 2014
Shareholders' Equity [Line Items]
Common stock, shares issued		29,550,170	25,195,107
Common stock, par value		$ 0.001	$ 0.001
Proceeds from sale of common stock, net		$ 5,566,000
Warrants exercise price per share		$ 2.05
Proceeds from stock options exercised		$ 267,000	$ 275,000
Exercise of common stock options, shares		254,351	266,488
Number of warrants exercised		0	1,000,000
Proceeds from exercise of stock warrants			$ 1,000,000
Shares repurchased		0	0
Stock purchase plan, amount remaining		$ 2,000,000
Securities Purchase Agreement [Member]
Shareholders' Equity [Line Items]
Common stock, shares issued	3,999,996
Common stock, par value	$ 0.001
Common stock, price per share	$ 1.50
Proceeds from sale of common stock, net	$ 5,500,000
Warrants sold to purchase additional shares of common stock	2,600,000
Warrants exercise price per share	$ 2.05
Warrant exercisable beginning date	Jun. 23, 2016
Warrant expiration	Jun. 23, 2021
At The Market Offering Agreement [Member]
Shareholders' Equity [Line Items]
Common stock, shares issued		100,716
Proceeds from sale of common stock, net		$ 90,000
Commission rate on aggregate gross sales prices		3.00%
At The Market Offering Agreement [Member] | Minimum [Member]
Shareholders' Equity [Line Items]
Common stock, price per share		$ 2.25
At The Market Offering Agreement [Member] | Maximum [Member]
Shareholders' Equity [Line Items]
Common stock, price per share		$ 2.49
Aggregate common stock available to sell		$ 4,500,000
Series B Convertible Preferred Stock [Member]
Shareholders' Equity [Line Items]
Preferred stock, designated		10,000	10,000
Preferred stock, stated value		$ 1,000	$ 1,000
Preferred stock, conversion price per share		$ 0.75
Preferred stock, shares issued		5,659	5,659
Preferred stock, shares outstanding		5,659	5,659

Stock Compensation (Narrative)

Stock Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	May. 17, 2013	Nov. 03, 2011	Nov. 05, 2008
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options issued	455,710
Ratable vesting period	3 years 7 months 13 days
Options in-the-money	587,203
Closing stock price	$ 1.40
Intrinsic value of options exercised	$ 0.5
Excess tax benefit	0.3
Unrecognized stock option compensation, net of forfeitures	$ 0.3
Unrecognized compensation cost, weighted average period of recognition	2 years 4 months 24 days
Weighted average fair value per share for options granted	$ 1.17	$ 1.25
Dividend declared and paid	$ 0
Expected dividend yield	0.00%
Warrants outstanding	2,600,000	0
Warrants exercise price per share	$ 2.05
Warrants expiration date	Jun. 23, 2021
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]
Employee purchase price, percentage of fair market value	85.00%
Shares available for grant	300,000
The 2003 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares available for grant	0
The 2008 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized					2,000,000
Options issued	0
The 2011 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized				1,400,000
Options issued	0
The 2013 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized			1,500,000
Options issued	455,710
The 2011, 2008 and 2003 Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant	1,150,931

Stock Compensation (Schedule Of

Stock Compensation (Schedule Of Option Activity) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Stock Compensation [Abstract]
Outstanding, shares	4,510,107
Options granted, shares	455,710
Options exercised, shares	(254,351)	(266,488)
Options forfeited, shares	(73,352)
Options cancelled or expired, shares	(419,975)
Outstanding, shares	4,218,139	4,510,107
Vested or expected to vest, shares	4,212,685
Exercisable, shares	3,945,530
Outstanding, exercise price	$ 3.83
Options granted, exercise price	2.71
Options exercised, exercise price	1.05
Options forfeited, exercise price	2.96
Options cancelled or expired, exercise price	5.28
Outstanding, exercise price	3.75	$ 3.83
Vested or expected to vest, exercise price	3.75
Exercisable, exercise price	$ 3.79
Outstanding, contractual life	3 years 7 months 13 days
Vested or expected to vest, contractual life	3 years 7 months 13 days
Exercisable, contractual life	3 years 6 months 18 days
Outstanding, intrinsic value	$ 186,247
Vested or expected to vest, intrinsic value	186,247
Exercisable, intrinsic value	$ 186,247

Stock Compensation (Schedule 48

Stock Compensation (Schedule Of Allocation Of Non-Cash Stock-Based Compensation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock compensation expense	$ 606	$ 1,025
Cost of Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock compensation expense	51	154
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock compensation expense	118	262
Selling, General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock compensation expense	$ 437	$ 609

Stock Compensation (Schedule 49

Stock Compensation (Schedule Of Key Assumptions Of Fair Value Of Stock Options Granted) (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Dividend yield	0.00%	0.00%
Risk free interest rates, minimum	0.84%	0.78%
Risk free interest rates, maximum	1.56%	1.85%
Expected volatility, minimum	51.20%	59.10%
Expected volatility, maximum	63.90%	67.80%
Minimum [Member]
Expected term (in years)	3 years 6 months	3 years 3 months
Maximum [Member]
Expected term (in years)	5 years	5 years

Commitments And Contingencies (

Commitments And Contingencies (Details)	Jun. 30, 2016USD ($)	May. 05, 2015USD ($)	Mar. 31, 2014customer	Dec. 31, 2015USD ($)ft²$ / sharesshares	Dec. 31, 2014USD ($)customer	Aug. 11, 2015USD ($)
Loss Contingencies [Line Items]
Rent expense				$ 900,000	$ 1,100,000
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
Equipment purchases commitments				$ 100,000
Contribution limitation to percentage of compensation				15.00%
Employer contributions				$ 0	$ 72,000
Options granted, shares | shares				455,710
Stock options, value				$ 300,000
Shipments stopped, number of customers | customer			3
Shipments resumed, number of customers | customer					2
Chief Financial Officer [Member]
Loss Contingencies [Line Items]
Annual base salary				$ 345,000
Bonus percentage of base salary				20.00%
Options granted, shares | shares				75,000
Options granted, strike price | $ / shares				$ 2.50
Options expiration term				5 years
Options vesting period				3 years
Relocation allowance				$ 13,000
Severance payment period upon termination				6 months
Resigned Chief Financial Officer [Member]
Loss Contingencies [Line Items]
Severance payment period upon termination				6 months
Severance payment				$ 103,000
Senior Vice President, Business Development [Member]
Loss Contingencies [Line Items]
Annual base salary					$ 292,000
Stock options, value					$ 50,000
Kimchuk [Member]
Loss Contingencies [Line Items]
Loss contingency, damages sought by plaintiff		$ 389,000
Counter complaint, damages sought						$ 3,500,000
Scenario, Forecast [Member] | Resigned Chief Financial Officer [Member]
Loss Contingencies [Line Items]
Severance payment	$ 168,000
Hopewell Junction, New York [Member]
Loss Contingencies [Line Items]
Area of leased real estate property | ft²				37,000
Lease expiration date				May 1, 2019
Santa Clara, California [Member]
Loss Contingencies [Line Items]
Area of leased real estate property | ft²				2,000
Lease expiration date				Oct. 1, 2017
Bellevue, Washington [Member]
Loss Contingencies [Line Items]
Area of leased real estate property | ft²				1,800
Lease expiration date				Oct. 1, 2017

Concentrations (Narrative) (Det

Concentrations (Narrative) (Details) - Customer Concentration Risk [Member] - customer	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Two Customers [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of customers	2
Revenue [Member] | No Customers [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of customers		0
Concentration of risk percentage		10.00%
Revenue [Member] | Two Customers [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration of risk percentage	23.00%
Accounts Receivable [Member] | Two Customers [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration of risk percentage	5.00%
Accounts Receivable [Member] | Ten Customers [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of customers	10	10
Concentration of risk percentage	62.00%	78.00%
Accounts Receivable [Member] | One Customer [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of customers	1
Concentration of risk percentage	12.00%
Accounts Receivable [Member] | Three Customers [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of customers		3
Concentration of risk percentage		44.00%

Concentrations (Schedule Of Rev

Concentrations (Schedule Of Revenue By Geographic Location) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 6,714	$ 5,405	$ 7,034	$ 5,989	$ 6,720	$ 5,699	$ 7,018	$ 6,278	$ 25,142	$ 25,715
Geographic Concentration Risk [Member] | Revenue [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									25,142	25,715
Geographic Concentration Risk [Member] | Revenue [Member] | North And South America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									16,182	13,560
Geographic Concentration Risk [Member] | Revenue [Member] | Europe, Middle East, And Africa [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									6,950	9,246
Geographic Concentration Risk [Member] | Revenue [Member] | Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									$ 2,010	$ 2,909
Geographic Concentration Risk [Member] | Revenue [Member] | Domestic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration of risk percentage									63.00%	51.00%
Geographic Concentration Risk [Member] | Revenue [Member] | International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration of risk percentage									37.00%	49.00%

Quarterly Financial Informati53

Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information [Abstract]
Revenues	$ 6,714	$ 5,405	$ 7,034	$ 5,989	$ 6,720	$ 5,699	$ 7,018	$ 6,278	$ 25,142	$ 25,715
Gross profit	904	1,106	2,608	2,360	1,539	1,745	2,169	1,931	6,978	7,385
Net (loss) income before income tax	(2,125)	(2,234)	(66)	320	(1,556)	(1,036)	(1,047)	(1,618)	(4,105)	(5,257)
Net (loss) income	$ (2,125)	$ (2,234)	$ (66)	$ 320	$ (1,556)	$ (1,036)	$ (1,047)	$ (1,618)	$ (4,105)	$ (5,257)
Net (loss) income per share - basic	$ (0.08)	$ (0.09)		$ 0.01	$ (0.07)	$ (0.04)	$ (0.04)	$ (0.07)	$ (0.16)	$ (0.22)
Net (loss) income per share - diluted	$ (0.08)	$ (0.09)		$ 0.01	$ (0.07)	$ (0.04)	$ (0.04)	$ (0.07)	$ (0.16)	$ (0.22)
Weighted average number of shares outstanding - basic	25,712,562	25,287,849	25,142,371	25,041,380	24,943,181	24,842,945	23,940,800	23,778,110	25,296,040	24,376,259
Weighted average number of shares outstanding - diluted	25,712,562	25,287,849	25,142,371	25,747,631	24,943,181	24,842,945	23,940,800	23,778,110	25,296,040	24,376,259