Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 31, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Transition Report | false | |
Entity File Number | 001-15751 | |
Entity Registrant Name | eMAGIN CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 56-1764501 | |
Entity Address, Address Line One | 700 South Drive | |
Entity Address, Address Line Two | Suite 201 | |
Entity Address, City or Town | Hopewell Junction | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 12533 | |
City Area Code | 845 | |
Local Phone Number | 838-7900 | |
Title of 12(b) Security | Common Stock, $.001 Par Value Per Share | |
Trading Symbol | EMAN | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 72,679,686 | |
Amendment Flag | false | |
Entity Central Index Key | 0001046995 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 7,337 | $ 8,315 |
Restricted cash | 1,272 | 2,111 |
Accounts receivable, net | 4,345 | 5,314 |
Account receivable-due from government awards | 204 | 1,013 |
Unbilled accounts receivable | 1,173 | 253 |
Inventories | 7,917 | 8,379 |
Prepaid expenses and other current assets | 723 | 943 |
Total current assets | 22,971 | 26,328 |
Property, plant and equipment, net | 29,344 | 21,132 |
Operating lease right-of-use assets | 5 | 50 |
Intangibles and other assets | 39 | 126 |
Total assets | 52,359 | 47,636 |
Current liabilities: | ||
Accounts payable | 988 | 1,206 |
Accrued compensation | 2,005 | 1,628 |
Paycheck Protection Program loan - current | 982 | |
Revolving credit facility, net | 1,992 | 1,875 |
Common stock warrant liability | 4,446 | 4,622 |
Other accrued expenses | 476 | 1,693 |
Deferred revenue | 65 | 425 |
Operating lease liability - current | 5 | 51 |
Finance lease liability - current | 1,138 | 1,027 |
Other current liabilities | 747 | 757 |
Total current liabilities | 11,862 | 14,266 |
Other liability - long term | 28 | 56 |
Paycheck Protection Program loan - long term | 982 | |
Deferred Income - government awards - long term | 12,072 | 4,309 |
Finance lease liability - long term | 11,641 | 11,783 |
Total liabilities | 35,603 | 31,396 |
Shareholders' equity: | ||
Preferred stock, $.001 par value: authorized 10,000,000 shares: Series B Convertible Preferred stock, (liquidation preference of $5,659) stated value $1,000 per share, $0.001 par value: 10,000 shares designated and 5,659 issued and outstanding as of September 30, 2021 and December 31, 2020. | ||
Common stock, $0.001 par value: authorized 200,000,000 shares, issued 72,697,697 shares, outstanding 72,535,631 shares as of September 30, 2021 and issued 68,890,819 shares, outstanding 68,728,753 shares as of December 31, 2020. | 72 | 69 |
Additional paid-in capital | 275,592 | 268,729 |
Accumulated deficit | (258,408) | (252,058) |
Treasury stock, 162,066 shares as of September 30, 2021 and December 31, 2020. | (500) | (500) |
Total shareholders' equity | 16,756 | 16,240 |
Total liabilities and shareholders' equity | $ 52,359 | $ 47,636 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
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 | 72,697,697 | 68,890,819 |
Common stock, shares outstanding | 72,535,631 | 68,728,753 |
Treasury stock, shares | 162,066 | 162,066 |
Preferred Stock- Series B [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, liquidation preference | $ 5,659 | $ 5,659 |
Preferred stock, stated value | $ 1,000 | $ 1,000 |
Preferred stock, shares designated | 10,000 | 10,000 |
Preferred stock, shares issued | 5,659 | 5,659 |
Preferred stock, shares outstanding | 5,659 | 5,659 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | ||||
Total revenues, net | $ 5,782 | $ 7,311 | $ 18,834 | $ 21,742 |
Cost of revenues: | ||||
Total cost of revenues | 5,223 | 5,619 | 15,996 | 16,640 |
Gross profit | 559 | 1,692 | 2,838 | 5,102 |
Operating expenses: | ||||
Research and development | 1,669 | 1,734 | 5,299 | 4,313 |
Selling, general and administrative | 2,203 | 1,824 | 5,717 | 5,334 |
Total operating expenses | 3,872 | 3,558 | 11,016 | 9,647 |
Loss from operations | (3,313) | (1,866) | (8,178) | (4,545) |
Other (expense) income: | ||||
Change in fair value of common stock warrant liability | 4,742 | (1,803) | 176 | (3,304) |
Interest expense, net | (210) | (10) | (625) | (45) |
Gain on forgiveness of debt | 1,963 | |||
Other income, net | 87 | 148 | 314 | 163 |
Total other income (expense) | 4,619 | (1,665) | 1,828 | (3,186) |
Income (loss) before provision for income taxes | 1,306 | (3,531) | (6,350) | (7,731) |
Income taxes | ||||
Net income (loss) | 1,306 | (3,531) | (6,350) | (7,731) |
Less net income allocated to participating securities | 268 | |||
Net income (loss) allocated to common shares | $ 1,038 | $ (3,531) | $ (6,350) | $ (7,731) |
Income (loss) per share, basic | $ 0.01 | $ (0.06) | $ (0.09) | $ (0.14) |
Loss per share, diluted | $ (0.05) | $ (0.06) | $ (0.09) | $ (0.14) |
Weighted average number of shares outstanding: | ||||
Basic | 72,527,479 | 57,735,846 | 71,675,336 | 54,450,815 |
Diluted | 73,861,952 | 57,735,846 | 73,416,993 | 54,450,815 |
Product [Member] | ||||
Revenues: | ||||
Total revenues, net | $ 5,313 | $ 6,978 | $ 17,160 | $ 18,872 |
Cost of revenues: | ||||
Cost of revenues | 4,962 | 5,385 | 15,135 | 15,153 |
Contract [Member] | ||||
Revenues: | ||||
Total revenues, net | 469 | 333 | 1,674 | 2,870 |
Cost of revenues: | ||||
Cost of revenues | $ 261 | $ 234 | $ 861 | $ 1,487 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholder's Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2019 | $ 50,000 | $ 258,767,000 | $ (240,610,000) | $ (500,000) | $ 17,707,000 | |
Balance, shares at Dec. 31, 2019 | 5,659 | 50,250,378 | ||||
Stock based compensation | 43,000 | 43,000 | ||||
Public offering of common shares, net of offering costs | $ 4,000 | 1,548,000 | 1,552,000 | |||
Public offering of common shares, net of offering costs, shares | 3,730,540 | |||||
Net income (loss) | (1,369,000) | (1,369,000) | ||||
Balance at Mar. 31, 2020 | $ 54,000 | 260,358,000 | (241,979,000) | (500,000) | 17,933,000 | |
Balance, shares at Mar. 31, 2020 | 5,659 | 53,980,918 | ||||
Balance at Dec. 31, 2019 | $ 50,000 | 258,767,000 | (240,610,000) | (500,000) | 17,707,000 | |
Balance, shares at Dec. 31, 2019 | 5,659 | 50,250,378 | ||||
Net income (loss) | (7,731,000) | |||||
Balance at Sep. 30, 2020 | $ 68,000 | 268,720,000 | (248,341,000) | (500,000) | 19,947,000 | |
Balance, shares at Sep. 30, 2020 | 5,659 | 67,661,668 | ||||
Balance at Mar. 31, 2020 | $ 54,000 | 260,358,000 | (241,979,000) | (500,000) | 17,933,000 | |
Balance, shares at Mar. 31, 2020 | 5,659 | 53,980,918 | ||||
Stock based compensation | 44,000 | 44,000 | ||||
Public offering of common shares, net of offering costs | $ 3,000 | 1,756,000 | 1,759,000 | |||
Public offering of common shares, net of offering costs, shares | 3,408,913 | |||||
Exercise of common stock warrants | $ 4,000 | 36,000 | 40,000 | |||
Exercise of common stock warrants, shares | 4,017,500 | |||||
Net income (loss) | (2,831,000) | (2,831,000) | ||||
Balance at Jun. 30, 2020 | $ 61,000 | 262,194,000 | (244,810,000) | (500,000) | 16,945,000 | |
Balance, shares at Jun. 30, 2020 | 5,659 | 61,407,331 | ||||
Stock based compensation | 60,000 | 60,000 | ||||
Public offering of common shares, net of offering costs | $ 7,000 | 6,466,000 | 6,473,000 | |||
Public offering of common shares, net of offering costs, shares | 6,135,991 | |||||
Exercise of common stock warrants | $ 0 | 0 | ||||
Exercise of common stock warrants, shares | 118,346 | |||||
Net income (loss) | (3,531,000) | (3,531,000) | ||||
Balance at Sep. 30, 2020 | $ 68,000 | 268,720,000 | (248,341,000) | (500,000) | 19,947,000 | |
Balance, shares at Sep. 30, 2020 | 5,659 | 67,661,668 | ||||
Balance at Dec. 31, 2020 | $ 69,000 | 268,729,000 | (252,058,000) | (500,000) | 16,240,000 | |
Balance, shares at Dec. 31, 2020 | 5,659 | 68,890,819 | ||||
Exercise of options | 364,000 | 364,000 | ||||
Exercise of options, shares | 227,792 | |||||
Stock based compensation | 13,000 | 13,000 | ||||
Exercise of common stock warrants | $ 3,000 | 5,059,000 | 5,062,000 | |||
Exercise of common stock warrants, shares | 3,019,247 | |||||
Net income (loss) | (7,378,000) | (7,378,000) | ||||
Balance at Mar. 31, 2021 | $ 72,000 | 274,165,000 | (259,436,000) | (500,000) | 14,301,000 | |
Balance, shares at Mar. 31, 2021 | 5,659 | 72,137,858 | ||||
Balance at Dec. 31, 2020 | $ 69,000 | 268,729,000 | (252,058,000) | (500,000) | $ 16,240,000 | |
Balance, shares at Dec. 31, 2020 | 5,659 | 68,890,819 | ||||
Exercise of options, shares | 514,707 | |||||
Exercise of common stock warrants, shares | 3,343,660 | |||||
Net income (loss) | $ (6,350,000) | |||||
Balance at Sep. 30, 2021 | $ 72,000 | 275,592,000 | (258,408,000) | (500,000) | 16,756,000 | |
Balance, shares at Sep. 30, 2021 | 5,659 | 72,697,697 | ||||
Balance at Mar. 31, 2021 | $ 72,000 | 274,165,000 | (259,436,000) | (500,000) | 14,301,000 | |
Balance, shares at Mar. 31, 2021 | 5,659 | 72,137,858 | ||||
Exercise of options | $ 203,459 | 381,000 | 381,000 | |||
Stock based compensation | 37,000 | 37,000 | ||||
Exercise of common stock warrants | 590,000 | 590,000 | ||||
Exercise of common stock warrants, shares | 324,413 | |||||
Net income (loss) | (278,000) | (278,000) | ||||
Balance at Jun. 30, 2021 | $ 72,000 | 275,173,000 | (259,714,000) | (500,000) | 15,031,000 | |
Balance, shares at Jun. 30, 2021 | 5,659 | 72,665,730 | ||||
Exercise of options, shares | 15,300 | |||||
Stock based compensation | 419,000 | 419,000 | ||||
Stock based compensation, shares | 16,667 | |||||
Net income (loss) | 1,306,000 | 1,306,000 | ||||
Balance at Sep. 30, 2021 | $ 72,000 | $ 275,592,000 | $ (258,408,000) | $ (500,000) | $ 16,756,000 | |
Balance, shares at Sep. 30, 2021 | 5,659 | 72,697,697 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||||||
Net loss | $ 1,306 | $ (7,378) | $ (3,531) | $ (1,369) | $ (6,350) | $ (7,731) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 2,110 | 1,487 | |||||
Change in fair value of common stock warrant liability | (176) | 3,304 | |||||
Gain on forgiveness of debt | (1,963) | ||||||
Stock-based compensation | 469 | 147 | |||||
Amortization of operating lease right-of-use assets | 45 | 563 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 1,778 | 788 | |||||
Unbilled accounts receivable | (920) | 124 | |||||
Inventories | 462 | 699 | |||||
Prepaid expenses and other current assets | 220 | (666) | |||||
Deferred revenues | (360) | 116 | |||||
Operating lease liabilities | (46) | (588) | |||||
Accounts payable, accrued expenses, and other current liabilities | (1,964) | 63 | |||||
Net cash used in operating activities | (6,695) | (1,694) | |||||
Cash flows from investing activities: | |||||||
Purchase of equipment | (729) | (946) | |||||
Purchase of equipment, government grant | (9,393) | (582) | |||||
Net cash used in investing activities | (10,122) | (1,528) | |||||
Cash flows from financing activities: | |||||||
Repayments under revolving line of credit, net | 117 | (2,401) | |||||
Proceeds from public offering, net | 9,784 | $ 9,800 | |||||
Proceeds from Paycheck Protection Program loan | 1,963 | ||||||
Change in finance lease liabilities | (225) | ||||||
Proceeds from government grant | 8,711 | 2,404 | |||||
Proceeds from warrant exercise | 5,652 | 40 | |||||
Proceeds from exercise of stock options | 745 | ||||||
Net cash provided by financing activities | 15,000 | 11,790 | |||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (1,817) | 8,568 | |||||
Cash, cash equivalents, and restricted cash, beginning of period | $ 10,426 | $ 3,515 | 10,426 | 3,515 | 3,515 | ||
Cash, cash equivalents, and restricted cash, end of period | 8,609 | 12,083 | 8,609 | 12,083 | 10,426 | ||
Cash, cash equivalents, end of period | 7,337 | 10,283 | 7,337 | 10,283 | $ 8,315 | ||
Restricted cash, end of period | 1,272 | $ 1,800 | 1,272 | 1,800 | |||
Supplementary Cash Flow Information | |||||||
Cash paid for interest | 625 | 52 | |||||
Cash paid for income taxes | |||||||
Non-cash activities: | |||||||
Right-of-use assets obtained in exchange for finance lease liabilities | $ 86 | $ 194 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Description of the Business and Summary of Significant Accounting Policies [Abstract] | |
Description of the Business and Summary of Significant Accounting Policies | Note 1 – Description of the Business and Summary of Significant Accounting Policies The Business eMagin Corporation, or the Company, designs, develops, manufactures and markets Active Matrix organic light emitting diode, or OLED, -on-silicon microdisplays used in military and commercial AR/VR devices and other near-eye imaging products which utilize OLED microdisplays. The Company’s products are sold mainly in North America, Asia, and Europe. Basis of Presentation In the opinion of management, the accompanying unaudited interim Condensed Consolidated Financial Statements of eMagin Corporation and its subsidiary reflect all adjustments, including normal recurring accruals, necessary for a fair presentation. All significant intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the SEC. These unaudited Condensed Consolidated Financial Statements, and related disclosures, should be read in conjunction with the audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The results of operations for the periods ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year. The Consolidated Financial Statements as of December 31, 2020 are derived from audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Use of estimates In accordance with GAAP, 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, liability classified warrants, percentage of completion of contracts, deferred tax asset valuation allowances, litigation and other loss contingencies. Management bases its estimates and judgments on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Intangible Assets – Patents Acquired patents are recorded at purchase price as of the date acquired and amortized over the expected useful life which is generally the remaining life of the patent. The total intangible amortization expense was approximately $2 thousand and $6 thousand for the three and nine months ended September 30, 2021 and 2020 respectively. Product warranty The Company generally offers a one year product replacement warranty. The standard policy is to repair or replace the defective products. The Company accrues for estimated returns of defective products at the time revenue is recognized based on historical activity as well as for specific known product issues. The determination of these accruals requires the Company to make estimates of the frequency and extent of warranty activity and estimate future costs to replace the products under warranty. If the actual warranty activity and/or repair and replacement costs differ significantly from these estimates, adjustments to cost of revenue may be required in future periods. The following table provides a summary of the activity related to the Company's warranty liability included in other current liabilities, (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Beginning balance $ 705 $ 351 $ 615 $ 300Warranty accruals and adjustments (73) 142 27 201Warranty claims (2) (4) (12) (12)Ending balance $ 630 $ 489 $ 630 $ 489 Inventories Inventories are stated on a standard cost basis adjusted to approximate the lower of cost (as determined by the first-in, first-out method) or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the production of OLED displays. The standard cost for our products is subject to fluctuation from quarter to quarter, depending primarily on the number of displays produced, fluctuations in manufacturing overhead, labor hours incurred, and the yields experienced in the manufacturing process. Under the principles of full absorption costing, these costs are allocated to each unit of production in work in process and finished goods inventory based on actual use of the production facilities. However, in applying this principle, the requirements of Accounting Standards Codification, or ASC, 330-10-30-4, “Inventory” require that a company determine the range of normal capacity, or production expected to be achieved over a number of periods or seasons, and limits the amount of fixed production overheads allocated to inventory in periods of abnormally low production. Beginning in 2014, the Company defined normal capacity in terms of the number of displays produced per quarter. The amount of displays produced in any given period, is determined in part by the relative sizes of displays produced, and the resultant number of die that can be drawn on the surface of the silicon wafers used in our manufacturing process. Before production yield considerations, the maximum potential die per wafer amounts range from 42 for our larger newer displays through 177 for our more established displays. In 2015 and in periods subsequent, the Company produced fewer displays than a baseline level established during 2014, and accordingly limited the amount of fixed overheads allocated to inventory. During the first quarter of 2021, in recognition of a shift in product demand toward larger, more complex displays yielding fewer die per wafer, the Company concluded that measuring output by the number of displays produced per quarter was no longer an accurate measure of productive capacity. The Company determined that measuring output based on the number of wafers produced per quarter was a more appropriate measure of production volume. The Company reviewed the number of wafers produced through the nine months ended September 30, 2021, and the prior two calendar years, and determined the nine months ended September 30, 2021 level was within the range of normal capacity. The Company also believes that fully allocating overhead to work in process and finished goods inventories, results in more accurate inventory valuation and computation of costs of goods sold, in addition to providing better information to management in making pricing decisions. In accordance with this change in estimate for allocating overhead adopted in the first quarter of 2021, overhead is fully allocated to products, resulting in an increase in standard costs and inventory values. The impact of this change for the nine months ended September 30, 2021 was an increase of approximately $0.7 million in the carrying value of the Company’s work in process and finished goods inventory as of September 30, 2021, and a corresponding decrease in product costs of goods sold. This decreased the Company’s net loss by $0.7 million and the Company’s loss per share by $0.01 as compared to results that would have been obtained using the former method of estimation. During the three months ended September 30, 2021, there was no impact to the Company’s inventory, cost of goods sold, or earnings per share as compared to results that would have been obtained using the former method of estimation. Earnings per Common Share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of common stock equivalent shares such as stock options, warrants, restricted stock units and convertible preferred stock. Diluted earnings per share is computed using the weighted average number of common shares outstanding and potentially dilutive common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is anti-dilutive. The Company’s Series B Convertible Preferred stock, or Preferred Stock – Series B, is considered a participating security as the preferred stock participates in dividends with the common stock, which requires the use of the two-class method when computing basic earnings per share. Diluted earnings per share must be calculated under both the treasury stock and two-class method, and the calculation that results in the most dilutive earnings per share amount for the common stock is reported. The Preferred Stock – Series B is not required to absorb any net loss. Although the Company paid a one-time special dividend in 2012, the Company does not expect to pay dividends on its common or preferred stock in the near future. In accordance with the Preferred Stock – Series B agreements, the conversion price was adjusted to $0.3033 per share in December 2019, and the resultant, if converted common shares are reflected in the table of anti-dilutive common stock equivalents below. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share and share data) for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Net income (loss)$ 1,306 $ (3,531) $ (6,350) $ (7,731)Income allocated to participating securities 268 — — —Income (loss) allocated to common shares$ 1,038 $ (3,531) $ (6,350) $ (7,731) Change in fair value of warrant liability$ (4,742) $ — $ (176) $ —Income (loss) allocated to common shares - Diluted$ (3,704) $ (3,531) $ (6,526) $ (7,731) Weighted average common shares outstanding - Basic 72,527,479 57,735,846 71,675,336 54,450,815Dilutive effect of liability classified warrants 1,334,473 — 1,741,657 —Weighted average common shares outstanding - Diluted (1)(2) 73,861,952 57,735,846 73,416,993 54,450,815 Net income (loss) per share: Basic$ 0.01 $ (0.06) $ (0.09) $ (0.14) Diluted$ (0.05) $ (0.06) $ (0.09) $ (0.14)(1)For the three and nine months ended September 30, 2021, weighted average shares used for calculating diluted earnings per share includes the effect of liability classified warrants as they have a dilutive effect on earnings per share. (2)For the three and nine months ended September 30, 2020, weighted average shares used for calculating basic and diluted earnings per share are the same as the inclusion of liability classified warrants, would be anti-dilutive to the earnings per share calculation. In calculating net income (loss) per share amounts, shares underlying the potentially dilutive common stock equivalents were excluded from the calculation of diluted net income (loss) per common share because their effect was anti-dilutive. The following table sets forth the potentially dilutive common stock equivalents for the three and nine months ended September 30, 2021 and 2020 that were not included in diluted earnings per share, or EPS, as their effect would be anti-dilutive: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Restricted Stock Units 402,099 50,000 402,099 50,000Options 3,973,758 4,872,834 3,973,758 4,872,834Warrants 4,780,447 15,055,773 4,780,447 15,055,773Convertible preferred stock 18,726,009 18,726,009 18,726,009 18,726,009Total potentially dilutive common stock equivalents 27,882,313 38,704,616 27,882,313 38,704,616 The above table reflects a revision in the potentially dilutive common stock equivalents that were not included in diluted EPS associated with the Company’s Preferred Stock- Series B for the three and nine months ended September 30, 2020, compared to what was previously reported. The Company increased such potentially dilutive common stock equivalents from 7,545,333 to 18,726,009 as a result of previously excluding certain common stock equivalents that would be issued as a result of the Company conducting an equity offering priced below the Preferred Stock- Series B’s conversion price. This correction had no impact on the Company’s financial statements or EPS. Government Funding The Company accounts for awards received from the U.S. Government for procurement of capital equipment after reviewing the terms of the underlying award contract, and in accordance with contract and equipment purchase milestones and accounting principles for grant accounting. For awards in which the Company will hold title to the underlying equipment, the Company initially records amounts invoiced to the U.S. Government for equipment progress payments on the accompanying Condensed Consolidated Balance Sheets as Deferred Income – Government Awards – long term and Accounts Receivable – due from Government Awards. The Company records such progress payments made to capital equipment vendors in Property, plant and equipment. Amounts recorded in Deferred Income – Government Awards – long term are recognized as Other Income on the accompanying Condensed Consolidated Statement of Operations on a systematic basis as depreciation and other expenses are incurred over the useful life of the capital equipment. Restricted Cash The Company accounts for cash received pursuant to U.S. Government funding, that is legally restricted for procurement of capital equipment, as Restricted Cash on the accompanying Condensed Consolidated Balance Sheets. Restricted Cash amounts are received from the U.S. Government in advance of progress payments required for various program related capital equipment purchases and are disbursed by the Company to related equipment vendors. Fair Value of Financial Instruments Cash, cash equivalents, accounts receivable, short-term investments and accounts payable are stated at cost, which approximates fair value, due to the short-term nature of these instruments. The asset based lending facility, or the ABL Facility, is also stated at cost, which approximates fair value because the interest rate is based on a market based rate plus a margin. The PPP loan is presented on the Condensed Consolidated Balance Sheet at cost, which equals fair market value due to the loan’s short–term maturity. The Company has categorized its assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). Assets and liabilities recorded in the Condensed Consolidated Balance Sheets at fair value are categorized based on a hierarchy of inputs as follows: Level 1 – Unadjusted quoted prices in active markets of identical assets or liabilities.Level 2 – Quoted prices for similar assets or liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.Level 3 – Unobservable inputs for the asset or liability. The common stock warrant liability is currently the only financial asset or liability recorded at fair value on a recurring basis and is considered a Level 3 liability. The fair value of the common stock warrant liability is included in current liabilities on the Condensed Consolidated Balance Sheets, as the warrants are currently exercisable. The following table shows the reconciliation of the Level 3 warrant liability measured and recorded at fair value on a recurring basis, using significant unobservable inputs (in thousands): Estimated Fair ValueBalance as of January 1, 2021 $ 4,622Fair value of warrants issuance during period -Change in fair value of warrant liability, net (176)Balance as of September 30, 2021 $ 4,446 The fair value of the liability for common stock purchase warrants at issuance and at September 30, 2021 was estimated using the Black Scholes option pricing model based on the market value of the underlying common stock at the measurement date. Inputs to the model at September 30, 2021 included remaining contractual terms of the warrants ranging from 0.67 to 1.33 years, at risk-free interest rates of 0.47% to 0.86% with no expected dividends, and expected volatility of the price of the underlying common stock of 91.23% to 96.08%. Concentrations The Company purchases principally all of its silicon wafers, which are a key ingredient in its OLED production process, from two suppliers located in Taiwan and Korea. For the three and nine months ended September 30, 2021, one customer of 25.2% and 18.5% accounted for over 10% of net revenues, respectively. As of September 30, 2021, the Company had accounts receivable from that one customer that accounted for 32.6% of all accounts receivable. For the three and nine months ended September 30, 2020, there were two customers of 22.2% and 15.8%, respectively and three customers of 17.2%, 12.3% and 12.2%, respectively, who accounted for over 10% of the Company’s net revenues. Liquidity and Going Concern The accompanying Condensed Consolidated Financial Statements have been prepared on a going concern basis, which assumes that the Company will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. For the nine months ended September 30, 2021, the Company incurred a net loss of $6.4 million and used cash in operating activities of $6.7 million. As of September 30, 2021, the Company had $7.3 million of cash, $2.0 million of outstanding indebtedness under its ABL facility and borrowing availability of $1.9 million under its ABL Facility. The COVID-19 pandemic has significantly increased economic and demand uncertainty across the globe. It is possible that the current outbreak and continued spread of COVID-19, and any resurgence related to the Delta variant, or other vaccine resistant strains will cause the economic slowdown to continue, and it is possible that it could cause a global recession. Although vaccines are becoming more widely available, there is a significant degree of uncertainty and lack of visibility as to the extent and duration of the COVID-19 pandemic and related slowdowns or economic trends. If either were prolonged, demand for the Company’s products and the Company’s ability to obtain components and other materials or services on a timely basis could result in manufacturing delays, increased costs, and ultimately, in reduced or delayed sales or lost orders which could materially and adversely affect our business, financial condition, and results of operations. Although many jurisdictions are now open with social distancing measures implemented to curtail the spread of COVID-19, we cannot predict the length of time that it will take for our supply chains to be restored and any meaningful economic recovery to take place. We also cannot predict whether the Delta variant or other vaccine resistant strains will lead to additional surges in new cases of COVID-19, or the severity of such surges if/when they occur, such that governmental authorities decide to reimpose quarantines, lockdowns or travel restrictions, which could further materially and adversely affect the Company’s results and financial condition. It is also not possible to predict with certainty the impact executive orders providing for mandatory COVID-19 vaccinations will have on our workforce. Our implementation of these requirements may result in attrition, including attrition of critically skilled labor, and difficulty securing future labor needs, which could have a material adverse effect on our business, financial condition, and results of operations. Due to continuing losses, the COVID-19 pandemic, and uncertainty regarding the Company’s need or ability to borrow under its ABL Facility, the Company may not be able to meet its financial obligations as they become due without obtaining additional financing or sources of capital at acceptable terms to the Company. Therefore, in accordance with applicable accounting guidance, and based on the Company’s current financial condition and availability of funds, there is substantial doubt about the Company’s ability to continue as a going concern through twelve months from the date these financial statements were issued. The Company has taken actions to increase revenues and to reduce expenses and is considering financing alternatives. The Company’s plans with regard to these matters include the following actions: 1) focus production and engineering resources on improving manufacturing yields and increasing production volumes, 2) continuing a Work Status Reduction program that began in October 2019 wherein senior management work status was reduced by approximately 20%, 3) continue to utilize government grants for purchase of capital equipment and funding manufacturing personnel, 4) reduce discretionary and other expenses, 5) seek to enter new markets, and 6) considering additional financing and/or strategic alternatives. The Company is reassessing its business plans and forecasts over the next two years. Based on its known cash needs as of October 31, 2021, the Company has developed plans to extend its liquidity to support its working capital requirements through the fourth quarter of 2022. However, there can be no assurance the Company’s plans will be achieved, or that the Company will be able to continue to borrow under its ABL Facility, mitigate the impacts of COVID-19, secure additional financing, and/or pursue strategic alternatives on terms acceptable to the Company, or at all. Recently adopted accounting pronouncements The Company's accounting policies are the same as those described in Note 1 to the Company's Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2020. Recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) and subsequently issued amendments. The guidance affects the Company's accounts receivable, and it requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectability. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Based on the composition of the Company's receivables, current market conditions and historical credit loss activity, the Company is currently evaluating the impact of this ASU on the Condensed Consolidated Financial Statements. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. This guidance changes how entities account for convertible instruments and contracts in an entity's own equity and simplifies the accounting for convertible instruments by removing certain separation models for convertible instruments. This guidance also modifies the guidance on diluted earnings per share calculations. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. The Company is currently evaluating the impact of this ASU on the Condensed Consolidated Financial Statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 2 – Revenue Recognition All of the Company’s revenues are earned from contracts with customers and are classified as either Product or Contract revenues. Contract revenues include R&D activities performed pursuant to written agreements and purchase orders, as well as arrangements that are implied by customary practices or law. Product revenue is generated primarily from contracts to produce, ship and deliver OLED microdisplays. The Company’s performance obligations are satisfied, control of our products is transferred, and revenue is recognized at a single point in time when control transfers to our customer for product shipped. The Company’s customary terms are FOB our factory and control is deemed to transfer upon shipment. The Company has elected to treat shipping and other transportation costs charged to customers as fulfillment activities and are recorded in both revenue and cost of sales at the time control is transferred to the customer. As customers are invoiced at the time control transfers and the right to consideration is unconditional at that time, the Company does not maintain contract asset balances for product revenue. Additionally, the Company does not maintain contract liability balances for product revenues, as performance obligations are satisfied prior to customer payment for product. The Company generally offers a one year product warranty, for replacement of product only, and does not allow returns. The Company offers industry standard payment terms that typically require payment from our customers from 30 to 60 days after title transfers. The Company also recognizes revenues under the over time method from certain research and development, or R&D, activities (contract revenues) under both firm fixed-price contracts and cost-type contracts. Progress and revenues from research and development activities relating to firm fixed-price contracts and cost-type contracts are generally recognized on an input method of accounting as costs are incurred. Under the input method, revenue is recognized based on efforts expended to date (e.g., the costs of resources consumed or labor hours worked, or machine hours used) relative to total efforts intended to be expended. Contract costs include all direct material, labor and subcontractor costs and an allocation of allowable indirect costs as defined by each contract, as periodically adjusted to reflect revised agreed upon rates. These rates are subject to audit by the other party. Any changes in estimate related to contract accounting are accounted for prospectively over the remaining life of the contract. Under the over time method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in deferred revenues as a liability on the Condensed Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported as unbilled receivables. Unbilled revenues are expected to be billed and collected within one year. Costs to Obtain and Fulfill a Contract The incidental costs related to obtaining product sales contracts are non-recoverable from customer and, accordingly, are expenses as incurred. The Company capitalizes costs incurred to fulfil its R&D contracts that i) relate directly to a contract or anticipated contract, ii) are expected to satisfy the Company’s performance obligation under the contract, and iii) are expected to be recovered through revenue generated under the contract. Contact fulfillment costs are expensed to cost of revenue as the related performance obligations are satisfied. Disaggregation of RevenueThe Company sells products directly to military contractors and OEM’s who use the Company’s displays in a diverse range of applications encompassing the military and commercial, including medical and industrial, market sectors. Revenues are classified as either military, commercial, consumer or multiple based on management’s knowledge of the customer’s products and markets served by displays or the R&D contract work. Revenues classified as multiple are for sales to customers that incorporate the Company’s displays in products that could be used for either military or commercial applications. R&D activities are performed for both military customers and U.S. Government defense related agencies and consumer companies. Product and contract revenues are disclosed on the Condensed Consolidated Statements of Operations. Additional disaggregated revenue information for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020North and South America $3,727 $4,246 $10,677 $11,963Europe, Middle East, and Africa 1,957 2,408 6,578 7,330Asia Pacific 98 657 1,579 2,449Total $5,782 $7,311 $18,834 $21,742 Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Military $3,733 $5,836 $11,492 $16,363Commercial, including industrial and medical 440 491 2,240 1,213Consumer 448 — 1,598 2,023Multiple 1,161 984 3,504 2,143Total $5,782 $7,311 $18,834 $21,742 Accounts Receivable from Customers Accounts receivable, net of allowances, were $4.3 million and $5.3 million as of September 30, 2021 and December 31, 2020. Contract Assets and Liabilities Unbilled Accounts Receivables (Contract Assets) - Pursuant to the over time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled accounts receivable is recorded to reflect revenue that is recognized when the cost based input method is applied and such revenue exceeds the amount invoiced to the customer. Unbilled receivables are disclosed on the Condensed Consolidated Balance Sheets. Customer Advances and Deposits (Contract Liabilities) - The Company recognizes a contract liability when it has billed and received consideration from the customer pursuant to the terms of a contract but has not yet recognized the related revenue. These billings in excess of revenue are classified as deferred revenue on the Condensed Consolidated Statements of Operations. Total contract assets and liabilities consisted of the following amounts (in thousands): September 30, December 31, 2021 2020 Unbilled Receivables (contract assets) $ 1,173 $ 253 Deferred Revenue (contract liabilities) $ 65 $ 425 For the three and nine months ended September 30, 2021 the Company recognized $21 thousand and $360 thousand of revenue related to its contract liabilities that existed at December 31, 2020. For the three and nine months ended September 30, 2020 the Company recognized $0 thousand and $33 thousand of revenue related to its contract liabilities that existed at December 31, 2019. Remaining Performance Obligations The Company has elected the practical expedient, which allows disclosure of remaining performance obligations only for contracts with an original duration of greater than one year. Such remaining performance obligations primarily relate to engineering and design services. As of September 30, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $2 million. The Company expects to recognize revenue on all of its remaining performance obligations over the next 12 months. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2021 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | Note 3 – Accounts Receivable The majority of the Company’s commercial accounts receivable are due from OEM’s. Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable consisted of the following (in thousands): September 30, December 31, 2021 2020Accounts receivable $ 4,484 $ 5,453Less allowance for doubtful accounts (139) (139)Accounts receivable, net $ 4,345 $ 5,314 |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2021 | |
Inventories, Net [Abstract] | |
Inventories, Net | Note 4 – Inventories, net The components of inventories are as follows (in thousands): September 30, December 31, 2021 2020Raw materials $ 3,574 $ 3,995Work in process 1,861 1,263Finished goods 2,984 3,918Total inventories 8,419 9,176Less inventory reserve (502) (797)Total inventories, net $ 7,917 $ 8,379 As described in Note 1, during the period ended March 31, 2021, the Company changed its method of estimating the allocation of overhead. |
Line of Credit _ Loan Payable
Line of Credit / Loan Payable | 9 Months Ended |
Sep. 30, 2021 | |
Line of Credit / Loan Payable [Abstract] | |
Line of Credit / Loan Payable | Note 5 – Line of Credit / Loan Payable Revolving Credit Facility September 30, December 31,(in thousands) 2021 2020Revolving credit facility $ 1,992 $ 1,875 On December 21, 2016, the Company entered into the ABL Facility with a lender that provides for up to a maximum amount of $5 million based on a borrowing base equivalent to 85% of eligible accounts receivable plus the lesser of $2 million or 50% of eligible inventory. The interest on the ABL Facility is equal to the Prime Rate plus 3% but may not be less than 6.5% with a minimum monthly interest payment of $2 thousand. The Company is also obligated to pay the lender a monthly administrative fee of $1 thousand and an annual facility fee equal to 1% of the maximum amount borrowable under the facility. The ABL Facility will automatically renew on December 31, 2021 for a one year term unless written notice to terminate the agreement is provided by either party. The ABL Facility is secured by a lien on all receivables, property and the proceeds thereof, credit insurance policies and other insurance relating to the collateral, books, records and other general intangibles, inventory and equipment, proceeds of the collateral and accounts, instruments, chattel paper, and documents. Collections received on accounts receivable are directly used to pay down the outstanding borrowings on the credit facility. The ABL Facility contains customary representations and warranties, affirmative and negative covenants and events of default. The Company is required to maintain a minimum tangible net worth of $13 million and a minimum working capital balance of $4 million at all times. As of September 30, 2021, the Company had $2.0 million in borrowings outstanding under the ABL Facility, had unused borrowing availability of $1.9 million under the ABL Facility and was in compliance with all financial debt covenants under the ABL Facility. Promissory Note under the Paycheck Protection Program On June 8, 2020, the Company received a loan under the U.S. Small Business Administration’s, or SBA, Paycheck Protection Program, or PPP, from KeyBank National Association related to the COVID-19 pandemic in the amount of $1.9 million. Under the PPP loan, the loan has a fixed interest rate of 1% per annum, a maturity date two years from the date of the funding of the loan, and deferral of payments for six months. During 2020, the Company used the proceeds to pay qualified payroll costs, in accordance with PPP and Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, requirements. The Company applied for forgiveness of the entire loan in the fourth quarter of 2020. In April 2021, the Company received a forgiveness notice from the SBA and received a related acknowledgement letter from its lender stating that they received payment in full from the SBA effective March 31, 2021. This amount was recorded in the Condensed Consolidated Statements of Operations as gain on forgiveness of debt in the first quarter of 2021. |
Stock Compensation
Stock Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Stock Compensation [Abstract] | |
Stock Compensation | Note 6 – Stock 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 fair value of Restricted Stock Units, or RSU’s is established by the market price of the Company’s common stock at the date of grant and for time based grants, is amortized over the vesting period using the straight line method. Performance-based RSUs are typically granted such that they vest upon the achievement of EBITDA targets, during a specified performance period, subject to the satisfaction of certain time-based service criteria. Compensation expense from these awards is equal to the fair market value of the Company’s ordinary shares on the date of grant and is recognized over the remaining service period based on the probable outcome of achievement of the financial metrics used in the specific grant’s performance criteria. Management’s estimate of the number of shares expected to vest is based on the anticipated achievement of the specified non-market performance criteria, which are assessed at each reporting period. The following table summarizes the allocation of non-cash stock-based compensation to our expense categories for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Cost of revenues $ 33 $ 2 $ 36 $ 14Research and development 62 7 74 42Selling, general and administrative 324 51 359 91Total stock compensation expense $ 419 $ 60 $ 469 $ 147 The following table summarizes the Company’s stock-based compensation expense by each award type: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Stock options $ 284 $ 60 $ 309 $ 147Restricted Share Units 135 — 160 —Total stock compensation expense $ 419 $ 60 $ 469 $ 147 At September 30, 2021, total unrecognized compensation costs related to stock options and RSUs was approximately $176 thousand and $1.2 million, respectively, net of estimated forfeitures. Total unrecognized compensation cost for stock options and RSUs will be adjusted for future changes in estimated forfeitures and is expected to be recognized over a weighted average period of approximately 0.8 years and approximately 2.7 years, respectively. Stock Option Summary The following key assumptions were used in the Black-Scholes option pricing model to determine the fair value of stock options granted: Nine Months Ended September 30, 2021 2020Dividend yield 0 % 0 %Risk free interest rates 0.89-0.95 % 0.3 %Expected volatility 75.9 to 79.0 % 46.1 %Expected term (in years) 5.0 to 5.5 5 The Company does not expect to pay dividends in the near future. Therefore, the Company used an expected dividend yield of 0%. The risk-free interest rate used in the Black-Scholes option pricing model is based on applicable yield available at the date of the option grant 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 the options represents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on historical experience and vesting schedules of similar awards. A summary of the Company’s stock option activity for the nine months ended September 30, 2021 presented in the following table (unaudited): Number ofShares WeightedAverageExercisePrice WeightedAverageRemainingContractualLife (In Years) AggregateIntrinsicValueOutstanding at December 31, 2020 4,797,834 $ 2.36 Options granted 230,000 3.24 Options exercised (514,707) 1.92 Options forfeited — — Options cancelled or expired (539,369) 4.41 Outstanding at September 30, 2021 3,973,758 $ 1.95 3.33 $ 2,656,904Vested or expected to vest at September 30, 2021 (1) 3,971,894 $ 1.95 3.33 $ 2,656,516Exercisable at September 30, 2021 3,847,757 $ 1.92 3.15 $ 2,629,494(1)The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. The aggregate intrinsic value in the table above represents the difference between the exercise price of the underlying options and the quoted price of the Company’s common stock. The aggregate intrinsic value of options exercised was $0.03 million and $1.01 million for the three and nine months ended September 30, 2021. The Company issues new shares of common stock upon exercise of stock options. Restricted Stock Units (“RSU”) Summary The following table summarized the activity in respect of RSUs issued under the Company for the nine months ended September 30, 2021: Weighted Average Grant Date Number of Awards Fair Value Per Share Service Performance Service Performance based based based basedRSU's outstanding, beginning of period 50,000 — $ 0.84 $ —Granted 417,591 103,048 3.55 3.60Vested and settled (16,667) — 0.84 —Forfeited (48,825) — 1.72 —RSU's outstanding, end of period 402,099 103,048 3.55 3.60 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | Note 7 – Income Taxes The Company’s effective tax rate is calculated quarterly based upon current assumptions relating to the full year’s estimated operating results and various tax-related items. The Company’s effective tax rate was 0% for the three and nine months ended September 30, 2021 and 2020. The difference between the effective tax rate of 0% and the U.S. federal statutory rate of 21% for three and nine months ended September 30, 2021 and 2020 was primarily due to recognizing a full valuation allowance on deferred tax assets. The Company determined that, based on all available evidence, both positive and negative, including the Company’s latest forecasts and cumulative losses in recent years, it was more likely than not that none of its deferred tax assets would be realized and therefore it continued to record a full valuation allowance as of September 30, 2021. The Company’s net operating loss carry-forward amounts expire through 2037 and are subject to certain limitations that may occur due to a change in the ownership provisions under Section 382 of the Internal Revenue Code and similar state provisions. Pursuant to provisions of the Tax Cuts and Jobs Act, the net operating losses originating in years subsequent to 2017 can be carried forward indefinitely. Due to the Company’s operating loss carry-forwards, all tax years remain open to examination to the extent of the operating loss carry-forward 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. On March 27, 2020, the President of the United States signed the CARES Act. The CARES Act provides several provisions that effect businesses from an income tax perspective. Due to the history of the tax losses, most of the CARES Act provisions have no current benefit to the Company. The Company can, however, benefit from one provision, which allows for the immediate refund of the Alternative Minimum Tax Credit, or AMT Credit, previously recognized as deferred tax asset. The Company has filed an amendment to claim the AMT Credit and is anticipating a refund of $212 thousand. This tax receivable was recorded during 2017, and is reflected in Prepaid Expenses and Other Current Assets on the Condensed Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 8 – Commitments and Contingencies Equipment Purchase Commitments The Company has committed to equipment purchases of approximately $987 thousand at September 30, 2021. In addition, through September 30, 2021, the Company has committed to equipment to be purchased under government awards of $16.5 million. Litigation From time to time, the Company may become subject to various legal proceedings that are incidental to the ordinary conduct of our business. In March 2019, the Company received a demand letter seeking payment of $0.9 million of outstanding invoices relating to purchased inventory from Suga Electronics Limited, or Suga, a contract manufacturer located in China, which manufactured product sold by our consumer night vision business. The Company has responded to the demand letter, and requested that Suga provide substantiation of purchased inventory. On August 1, 2019, the Company was notified by Suga that they intend to pursue arbitration. During September and October 2019, the Company held preliminary discussions with Suga to attempt to reach a settlement, however in November 2019 a formal request for arbitration was received, which Suga filed with the International Chamber of Commerce or ICC. The Company retained local counsel in Hong Kong to represent it before the ICC and in December 2019 filed an answer to Suga’s request for arbitration including a counterclaim seeking repayment of amounts previously paid to Suga. An arbitrator was appointed and arbitral proceedings for the consideration of the claims and counterclaims, and settlement discussions continued through May 2021. The parties were permitted to settle at any point during the arbitration proceedings and the parties reached a tentative settlement in April 2021. On May 12, 2021 the parties executed settlement agreements and mutual releases from all claims in exchange for a payment of $0.6 million to Suga from the Company. As disclosed in the financial statements in our Annual Report on Form 10-K for the year ended December 31, 2018, the Company made a decision to exit the consumer night vision business and accrued approximately $1.0 million related to invoices received for inventory purchased by Suga in anticipation of future production. As a result of the May 12, 2021 settlement of the arbitration with Suga the Company removed the $1.0 million accrual from its balance sheet, wrote off $0.3 million in prepayments and recorded a gain of $0.1 million in Other Income/Expense during the second quarter of 2021. |
Warrants
Warrants | 9 Months Ended |
Sep. 30, 2021 | |
Warrants [Abstract] | |
Warrants | Note 9 – Warrants The Company accounts for common stock warrants pursuant to applicable accounting guidance contained in ASC 815, "Derivatives and Hedging - Contracts in Entity's Own Equity" and makes a determination as to their treatment as either equity instruments or a warrant liability based on an analysis of the underlying warrant agreements. The following table sets forth the Company’s outstanding common stock warrants as of September 30, 2021: Issued Outstanding Exercise Price Expiration2016 Warrant Issuance 2,947,949 1,680,447 2.60 Feb 20222017 Warrant Issuance (1) 100,000 100,000 2.25 Mar 20222017 Warrant Issuance (2) 1,650,000 1,650,000 2.45 Nov 20222018 Warrant Issuance (2) 4,004,324 2,909,369 1.55 Jul 20232019 Warrant Issuance (3) 6,000,000 3,000,000 0.78 Oct 2024 9,339,816 (1)Issued in conjunction with an unsecured line of credit.(2)Warrants are subject to liability accounting. (3)Private Placement unregistered warrants exercisable six months following issuance. Equity classified warrants The 2016 and 2019 warrants share similar terms, and the exercise price of the Warrant Shares are subject to adjustment in the event of any stock dividends and splits, reverse stock splits, stock dividends, recapitalizations, reorganizations or similar transactions. The Warrants will be exercisable on a “cashless” basis in certain circumstances, including in the event a registration statement is not in effect at time of exercise. The warrant agreements contain a clause specifying that in the event there is no effective registration in effect for the underlying warrant shares to be issued at time of exercise, in no circumstance will the Company be required to net cash settle the warrants. Based on the Company’s analysis of the terms and conditions of the warrants, the Company has concluded that they meet the conditions outlined in applicable accounting guidance to be classified as equity instruments. As a result, the Company has accounted for the exercise price paid by investors for purchase of the pre-funded warrants as additional paid in capital on the accompanying Condensed Consolidated Balance Sheets. Liability classified warrants The 2017 and 2018 warrants have alternative settlement provisions that, at the option of the holder, provide for physical settlement or if, at the time of settlement there is no effective registration statement, a cashless exercise as defined in the warrant agreement. Based on analysis of the underlying warrant agreement and applicable accounting guidance, the Company concluded that these registered warrants require the issuance of registered securities upon exercise and do not sufficiently preclude an implied right to net cash settlement. Accordingly, these warrants were classified in the accompanying Condensed Consolidated Balance Sheets as a current liability upon issuance and will be revalued at each subsequent balance sheet date. The fair value of the liability for common stock purchase warrants is estimated using the Black Scholes option pricing model based on the market value of the underlying common stock at the measurement date, the contractual term of the warrant, risk-free interest rates, expected dividends and expected volatility of the price of the underlying common stock. Based on the Black Sholes method the fair value of the Company’s warrants are as follows (in thousands): September 30, December 31, 2021 20202018 January and February Issuance Fair Value $ 3,407 $ 3,577 2017 May Issuance Fair Value 1,039 1,045 $ 4,446 $ 4,622 Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Change in Fair Value of common stock warrant liability (1) $ 4,742 $ (1,803) $ 176 (3,304) (1)The combined changes in fair value are reflected as income (loss) from change in the fair market value of common stock warrant liability. During the quarter ended September 30, 2021, there were no warrant exercises. During the nine months ended September 30, 2021, the Company received $5.7 million in payment of the exercise price for warrants to purchase 3,343,660 shares of common stock. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 10 – Leases The Company leases office and manufacturing facilities in Hopewell Junction, New York under a non-cancelable operating lease agreement. The lease for these facilities, as amended, was to expire in May 2024 and did not contain a renewal option. The lease agreement did not contain any residual value guarantees, or material restrictive covenants. In November 2020, we entered into the 12th amendment, which will expand the current footprint to approximately 63,000 square feet in 2021 and includes two five year options to extend. Under ASU 842, the Company reassessed the lease from operating to a finance lease for the 12th amendment. The Company also leases an office facility for its design group in Santa Clara, California. During the fourth quarter of 2019, the Company signed a two year extension of this lease that expired in October 2021. The lease agreement did not contain any residual value guarantees, material restrictive covenants or a renewal option. This lease was classified as an operating lease. In October 2021, the Company signed an additional two-year extension of the lease for the Santa Clara design group facility, and is evaluating the accounting treatment. On May 2, 2019, the Company entered into a three year finance lease commitment for phone equipment. The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring lease liabilities. The Company estimates its incremental borrowing rate based on a yield curve analysis, utilizing the interest rate derived from the fair value analysis of the Company’s credit facility and adjusting it for factors that appropriately reflect the profile of secured borrowing over the expected term of the lease. The components of lease expense were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Finance Lease Cost: Amortization of right-of-use assets $ 157 $ 4 $ 469 $ 12Interest on lease liabilities 198 1 594 3Operating lease cost 15 262 46 786Short-term lease cost 17 31Total Lease Cost $ 370 $ 284 $ 1,109 $ 832 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 15 $ 266 $ 46 $ 797Financing cash flows from finance leases $ 271 $ 5 $ 815 $ 15Right-of-use assets obtained in exchange for new finance lease liabilities $ 86 $ - $ 194 $ -Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ - $ - $ - September 30, 2021 December 31, 2020Finance lease right-of-use assets $ 12,402 $ 12,677Operating lease right-of-use assets $ 5 $ 50Finance lease liability, current $ 1,138 $ 1,027Finance lease liability, non-current $ 11,641 $ 11,783Operating lease liabilities, current $ 5 $ 51Operating lease liabilities, non-current $ - $ -Weighted average remaining lease terms - finance leases 20.67 years 20.67 yearsWeighted average remaining lease terms - operating leases 0.08 years 0.84 yearsWeighted average discount rate - finance leases 6.42% 6.43%Weighted average discount rate - operating leases 7.75% 7.75% Future annual minimum lease payments and finance lease commitments as of September 30, 2021 were as follows (in thousands): Operating Leases Finance Leases2021 $ 5 $ 2702022 - 1,1632023 - 1,2292024 - 1,2292025 - 1,229Thereafter - 22,624Total undiscounted future minimum lease payments 5 27,744Less imputed interest - (14,965)Lease liability $ 5 $ 12,779 (1)Total future lease payments exclude approximately $4.9 million of lease payments related to the Expansion Space portion of the NY Lease that was signed but has not yet commenced as of September 30, 2021 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 11 – Shareholders’ Equity Equity Raises On June 10, 2020, the Company filed a prospectus supplement to update and amend the aggregate amount of shares it could sell pursuant to its At Market Offering Agreement, dated November 22, 2019, as amended from time to time, between the Company and H.C. Wainwright & Co., LLC. This amendment allowed for additional shares to be sold up to an additional dollar amount of $7.29 million. During 2020, the Company raised $9.8 million, net of offering expenses, through the sale of shares under the At The Market facility, or the ATM Facility, which represented the remaining amount available under the facility. The Company used and intends to use the net proceeds from sales made under the ATM Facility for working capital and other general corporate purposes. |
Government Funding
Government Funding | 9 Months Ended |
Sep. 30, 2021 | |
Government Funding [Abstract] | |
Government Funding | Note 12 – Government Funding On July 28, 2020, the Company announced that it had been awarded a $33.6 million contract over the next 33 months from the U.S. Department of Defense, or the DoD, to sustain and enhance U.S. domestic capability for high resolution, high brightness OLED microdisplays that will be based on the Company’s proprietary direct patterning technology dPd. This investment is in addition to the $5.5 million award announced on June 11, 2020, under the U.S. Department of Defense Industrial Base Analysis, or IBAS, Program for OLED Supply Chain Assurance and will be used to increase capacity and sustain operations at the Company’s Hopewell Junction, New York, headquarters. These funds will be used to procure key equipment and tooling, and reimburse the Company for certain labor and material costs, which the Company believes will improve all aspects of its OLED microdisplay production, including increased throughput and capacity. Pursuant to the preliminary Technology Investment Agreement the U.S. government provided when the award was announced, the Company expects that the U.S. government will own the related equipment purchases until the end of the 33 month contract period, at which point the Company can apply to take title. The Company began making payments to related equipment vendors during the fourth quarter of 2020. For accounting purposes, the Company considers that it is probable that title will pass to the Company and accordingly will treat this award in a similar fashion as the IBAS award. The Company recognizes the government awards as deferred income – government awards as program milestones are invoiced, and will recognize other income as depreciation and other expenditures are incurred over the useful life of the capital equipment. As of September 30, 2021, the Company has received $12.2 million in total, for initial deposits required by capital equipment vendors. Amounts received, pending payment of deposits to vendors as of September 30, 2021, of $1.3 million are reflected in restricted cash on the accompanying Condensed Consolidated Balance Sheets. Amounts due from the U.S. DoD pursuant to invoices for capital equipment are presented on the Condensed Consolidated Balance Sheets as accounts receivable – due from government awards. The total amount invoiced on these programs of $12.2 million is reflected less depreciation in deferred revenue government awards – long term, and other current liabilities. Additional amounts remaining under the awards will be recorded in a similar fashion and will coincide with the progress payments required under the various capital equipment purchase terms. For the nine months ended September 30, 2021, the Company recognized deferred income related to certain overhead expenses, not capitalized, of $174 thousand. The terms of various government agreements provide among other items that the Company must achieve certain yield targets, give priority to military orders and continue to maintain the productive capacity of equipment purchased for up to five years past the completion of the programs. |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2021 | |
Description of the Business and Summary of Significant Accounting Policies [Abstract] | |
The Business | The Business eMagin Corporation, or the Company, designs, develops, manufactures and markets Active Matrix organic light emitting diode, or OLED, -on-silicon microdisplays used in military and commercial AR/VR devices and other near-eye imaging products which utilize OLED microdisplays. The Company’s products are sold mainly in North America, Asia, and Europe. |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited interim Condensed Consolidated Financial Statements of eMagin Corporation and its subsidiary reflect all adjustments, including normal recurring accruals, necessary for a fair presentation. All significant intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the SEC. These unaudited Condensed Consolidated Financial Statements, and related disclosures, should be read in conjunction with the audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The results of operations for the periods ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year. The Consolidated Financial Statements as of December 31, 2020 are derived from audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Use of Estimates | Use of estimates In accordance with GAAP, 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, liability classified warrants, percentage of completion of contracts, deferred tax asset valuation allowances, litigation and other loss contingencies. Management bases its estimates and judgments on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. |
Intangible Assets - Patents | Intangible Assets – Patents Acquired patents are recorded at purchase price as of the date acquired and amortized over the expected useful life which is generally the remaining life of the patent. The total intangible amortization expense was approximately $2 thousand and $6 thousand for the three and nine months ended September 30, 2021 and 2020 respectively. |
Product Warranty | Product warranty The Company generally offers a one year product replacement warranty. The standard policy is to repair or replace the defective products. The Company accrues for estimated returns of defective products at the time revenue is recognized based on historical activity as well as for specific known product issues. The determination of these accruals requires the Company to make estimates of the frequency and extent of warranty activity and estimate future costs to replace the products under warranty. If the actual warranty activity and/or repair and replacement costs differ significantly from these estimates, adjustments to cost of revenue may be required in future periods. The following table provides a summary of the activity related to the Company's warranty liability included in other current liabilities, (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Beginning balance $ 705 $ 351 $ 615 $ 300Warranty accruals and adjustments (73) 142 27 201Warranty claims (2) (4) (12) (12)Ending balance $ 630 $ 489 $ 630 $ 489 |
Inventories | Inventories Inventories are stated on a standard cost basis adjusted to approximate the lower of cost (as determined by the first-in, first-out method) or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the production of OLED displays. The standard cost for our products is subject to fluctuation from quarter to quarter, depending primarily on the number of displays produced, fluctuations in manufacturing overhead, labor hours incurred, and the yields experienced in the manufacturing process. Under the principles of full absorption costing, these costs are allocated to each unit of production in work in process and finished goods inventory based on actual use of the production facilities. However, in applying this principle, the requirements of Accounting Standards Codification, or ASC, 330-10-30-4, “Inventory” require that a company determine the range of normal capacity, or production expected to be achieved over a number of periods or seasons, and limits the amount of fixed production overheads allocated to inventory in periods of abnormally low production. Beginning in 2014, the Company defined normal capacity in terms of the number of displays produced per quarter. The amount of displays produced in any given period, is determined in part by the relative sizes of displays produced, and the resultant number of die that can be drawn on the surface of the silicon wafers used in our manufacturing process. Before production yield considerations, the maximum potential die per wafer amounts range from 42 for our larger newer displays through 177 for our more established displays. In 2015 and in periods subsequent, the Company produced fewer displays than a baseline level established during 2014, and accordingly limited the amount of fixed overheads allocated to inventory. During the first quarter of 2021, in recognition of a shift in product demand toward larger, more complex displays yielding fewer die per wafer, the Company concluded that measuring output by the number of displays produced per quarter was no longer an accurate measure of productive capacity. The Company determined that measuring output based on the number of wafers produced per quarter was a more appropriate measure of production volume. The Company reviewed the number of wafers produced through the nine months ended September 30, 2021, and the prior two calendar years, and determined the nine months ended September 30, 2021 level was within the range of normal capacity. The Company also believes that fully allocating overhead to work in process and finished goods inventories, results in more accurate inventory valuation and computation of costs of goods sold, in addition to providing better information to management in making pricing decisions. In accordance with this change in estimate for allocating overhead adopted in the first quarter of 2021, overhead is fully allocated to products, resulting in an increase in standard costs and inventory values. The impact of this change for the nine months ended September 30, 2021 was an increase of approximately $0.7 million in the carrying value of the Company’s work in process and finished goods inventory as of September 30, 2021, and a corresponding decrease in product costs of goods sold. This decreased the Company’s net loss by $0.7 million and the Company’s loss per share by $0.01 as compared to results that would have been obtained using the former method of estimation. During the three months ended September 30, 2021, there was no impact to the Company’s inventory, cost of goods sold, or earnings per share as compared to results that would have been obtained using the former method of estimation. |
Earnings per Common Share | Earnings per Common Share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of common stock equivalent shares such as stock options, warrants, restricted stock units and convertible preferred stock. Diluted earnings per share is computed using the weighted average number of common shares outstanding and potentially dilutive common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is anti-dilutive. The Company’s Series B Convertible Preferred stock, or Preferred Stock – Series B, is considered a participating security as the preferred stock participates in dividends with the common stock, which requires the use of the two-class method when computing basic earnings per share. Diluted earnings per share must be calculated under both the treasury stock and two-class method, and the calculation that results in the most dilutive earnings per share amount for the common stock is reported. The Preferred Stock – Series B is not required to absorb any net loss. Although the Company paid a one-time special dividend in 2012, the Company does not expect to pay dividends on its common or preferred stock in the near future. In accordance with the Preferred Stock – Series B agreements, the conversion price was adjusted to $0.3033 per share in December 2019, and the resultant, if converted common shares are reflected in the table of anti-dilutive common stock equivalents below. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share and share data) for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Net income (loss)$ 1,306 $ (3,531) $ (6,350) $ (7,731)Income allocated to participating securities 268 — — —Income (loss) allocated to common shares$ 1,038 $ (3,531) $ (6,350) $ (7,731) Change in fair value of warrant liability$ (4,742) $ — $ (176) $ —Income (loss) allocated to common shares - Diluted$ (3,704) $ (3,531) $ (6,526) $ (7,731) Weighted average common shares outstanding - Basic 72,527,479 57,735,846 71,675,336 54,450,815Dilutive effect of liability classified warrants 1,334,473 — 1,741,657 —Weighted average common shares outstanding - Diluted (1)(2) 73,861,952 57,735,846 73,416,993 54,450,815 Net income (loss) per share: Basic$ 0.01 $ (0.06) $ (0.09) $ (0.14) Diluted$ (0.05) $ (0.06) $ (0.09) $ (0.14)(1)For the three and nine months ended September 30, 2021, weighted average shares used for calculating diluted earnings per share includes the effect of liability classified warrants as they have a dilutive effect on earnings per share. (2)For the three and nine months ended September 30, 2020, weighted average shares used for calculating basic and diluted earnings per share are the same as the inclusion of liability classified warrants, would be anti-dilutive to the earnings per share calculation. In calculating net income (loss) per share amounts, shares underlying the potentially dilutive common stock equivalents were excluded from the calculation of diluted net income (loss) per common share because their effect was anti-dilutive. The following table sets forth the potentially dilutive common stock equivalents for the three and nine months ended September 30, 2021 and 2020 that were not included in diluted earnings per share, or EPS, as their effect would be anti-dilutive: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Restricted Stock Units 402,099 50,000 402,099 50,000Options 3,973,758 4,872,834 3,973,758 4,872,834Warrants 4,780,447 15,055,773 4,780,447 15,055,773Convertible preferred stock 18,726,009 18,726,009 18,726,009 18,726,009Total potentially dilutive common stock equivalents 27,882,313 38,704,616 27,882,313 38,704,616 The above table reflects a revision in the potentially dilutive common stock equivalents that were not included in diluted EPS associated with the Company’s Preferred Stock- Series B for the three and nine months ended September 30, 2020, compared to what was previously reported. The Company increased such potentially dilutive common stock equivalents from 7,545,333 to 18,726,009 as a result of previously excluding certain common stock equivalents that would be issued as a result of the Company conducting an equity offering priced below the Preferred Stock- Series B’s conversion price. This correction had no impact on the Company’s financial statements or EPS. |
Government Funding | Government Funding The Company accounts for awards received from the U.S. Government for procurement of capital equipment after reviewing the terms of the underlying award contract, and in accordance with contract and equipment purchase milestones and accounting principles for grant accounting. For awards in which the Company will hold title to the underlying equipment, the Company initially records amounts invoiced to the U.S. Government for equipment progress payments on the accompanying Condensed Consolidated Balance Sheets as Deferred Income – Government Awards – long term and Accounts Receivable – due from Government Awards. The Company records such progress payments made to capital equipment vendors in Property, plant and equipment. Amounts recorded in Deferred Income – Government Awards – long term are recognized as Other Income on the accompanying Condensed Consolidated Statement of Operations on a systematic basis as depreciation and other expenses are incurred over the useful life of the capital equipment. |
Restricted Cash | Restricted Cash The Company accounts for cash received pursuant to U.S. Government funding, that is legally restricted for procurement of capital equipment, as Restricted Cash on the accompanying Condensed Consolidated Balance Sheets. Restricted Cash amounts are received from the U.S. Government in advance of progress payments required for various program related capital equipment purchases and are disbursed by the Company to related equipment vendors. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Cash, cash equivalents, accounts receivable, short-term investments and accounts payable are stated at cost, which approximates fair value, due to the short-term nature of these instruments. The asset based lending facility, or the ABL Facility, is also stated at cost, which approximates fair value because the interest rate is based on a market based rate plus a margin. The PPP loan is presented on the Condensed Consolidated Balance Sheet at cost, which equals fair market value due to the loan’s short–term maturity. The Company has categorized its assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). Assets and liabilities recorded in the Condensed Consolidated Balance Sheets at fair value are categorized based on a hierarchy of inputs as follows: Level 1 – Unadjusted quoted prices in active markets of identical assets or liabilities.Level 2 – Quoted prices for similar assets or liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.Level 3 – Unobservable inputs for the asset or liability. The common stock warrant liability is currently the only financial asset or liability recorded at fair value on a recurring basis and is considered a Level 3 liability. The fair value of the common stock warrant liability is included in current liabilities on the Condensed Consolidated Balance Sheets, as the warrants are currently exercisable. The following table shows the reconciliation of the Level 3 warrant liability measured and recorded at fair value on a recurring basis, using significant unobservable inputs (in thousands): Estimated Fair ValueBalance as of January 1, 2021 $ 4,622Fair value of warrants issuance during period -Change in fair value of warrant liability, net (176)Balance as of September 30, 2021 $ 4,446 The fair value of the liability for common stock purchase warrants at issuance and at September 30, 2021 was estimated using the Black Scholes option pricing model based on the market value of the underlying common stock at the measurement date. Inputs to the model at September 30, 2021 included remaining contractual terms of the warrants ranging from 0.67 to 1.33 years, at risk-free interest rates of 0.47% to 0.86% with no expected dividends, and expected volatility of the price of the underlying common stock of 91.23% |
Concentrations | Concentrations The Company purchases principally all of its silicon wafers, which are a key ingredient in its OLED production process, from two suppliers located in Taiwan and Korea. For the three and nine months ended September 30, 2021, one customer of 25.2% and 18.5% accounted for over 10% of net revenues, respectively. As of September 30, 2021, the Company had accounts receivable from that one customer that accounted for 32.6% of all accounts receivable. For the three and nine months ended September 30, 2020, there were two customers of 22.2% and 15.8%, respectively and three customers of 17.2%, 12.3% and 12.2%, respectively, who accounted for over 10% of the Company’s net revenues. |
Liquidity and Going Concern | Liquidity and Going Concern The accompanying Condensed Consolidated Financial Statements have been prepared on a going concern basis, which assumes that the Company will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. For the nine months ended September 30, 2021, the Company incurred a net loss of $6.4 million and used cash in operating activities of $6.7 million. As of September 30, 2021, the Company had $7.3 million of cash, $2.0 million of outstanding indebtedness under its ABL facility and borrowing availability of $1.9 million under its ABL Facility. The COVID-19 pandemic has significantly increased economic and demand uncertainty across the globe. It is possible that the current outbreak and continued spread of COVID-19, and any resurgence related to the Delta variant, or other vaccine resistant strains will cause the economic slowdown to continue, and it is possible that it could cause a global recession. Although vaccines are becoming more widely available, there is a significant degree of uncertainty and lack of visibility as to the extent and duration of the COVID-19 pandemic and related slowdowns or economic trends. If either were prolonged, demand for the Company’s products and the Company’s ability to obtain components and other materials or services on a timely basis could result in manufacturing delays, increased costs, and ultimately, in reduced or delayed sales or lost orders which could materially and adversely affect our business, financial condition, and results of operations. Although many jurisdictions are now open with social distancing measures implemented to curtail the spread of COVID-19, we cannot predict the length of time that it will take for our supply chains to be restored and any meaningful economic recovery to take place. We also cannot predict whether the Delta variant or other vaccine resistant strains will lead to additional surges in new cases of COVID-19, or the severity of such surges if/when they occur, such that governmental authorities decide to reimpose quarantines, lockdowns or travel restrictions, which could further materially and adversely affect the Company’s results and financial condition. It is also not possible to predict with certainty the impact executive orders providing for mandatory COVID-19 vaccinations will have on our workforce. Our implementation of these requirements may result in attrition, including attrition of critically skilled labor, and difficulty securing future labor needs, which could have a material adverse effect on our business, financial condition, and results of operations. Due to continuing losses, the COVID-19 pandemic, and uncertainty regarding the Company’s need or ability to borrow under its ABL Facility, the Company may not be able to meet its financial obligations as they become due without obtaining additional financing or sources of capital at acceptable terms to the Company. Therefore, in accordance with applicable accounting guidance, and based on the Company’s current financial condition and availability of funds, there is substantial doubt about the Company’s ability to continue as a going concern through twelve months from the date these financial statements were issued. The Company has taken actions to increase revenues and to reduce expenses and is considering financing alternatives. The Company’s plans with regard to these matters include the following actions: 1) focus production and engineering resources on improving manufacturing yields and increasing production volumes, 2) continuing a Work Status Reduction program that began in October 2019 wherein senior management work status was reduced by approximately 20%, 3) continue to utilize government grants for purchase of capital equipment and funding manufacturing personnel, 4) reduce discretionary and other expenses, 5) seek to enter new markets, and 6) considering additional financing and/or strategic alternatives. The Company is reassessing its business plans and forecasts over the next two years. Based on its known cash needs as of October 31, 2021, the Company has developed plans to extend its liquidity to support its working capital requirements through the fourth quarter of 2022. However, there can be no assurance the Company’s plans will be achieved, or that the Company will be able to continue to borrow under its ABL Facility, mitigate the impacts of COVID-19, secure additional financing, and/or pursue strategic alternatives on terms acceptable to the Company, or at all. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently adopted accounting pronouncements The Company's accounting policies are the same as those described in Note 1 to the Company's Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2020. Recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) and subsequently issued amendments. The guidance affects the Company's accounts receivable, and it requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectability. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Based on the composition of the Company's receivables, current market conditions and historical credit loss activity, the Company is currently evaluating the impact of this ASU on the Condensed Consolidated Financial Statements. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. This guidance changes how entities account for convertible instruments and contracts in an entity's own equity and simplifies the accounting for convertible instruments by removing certain separation models for convertible instruments. This guidance also modifies the guidance on diluted earnings per share calculations. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. The Company is currently evaluating the impact of this ASU on the Condensed Consolidated Financial Statements. |
Description of the Business a_3
Description of the Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Description of the Business and Summary of Significant Accounting Policies [Abstract] | |
Summary of Activity Related to Warranty Liability Included in Other Current Liabilities | Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Beginning balance $ 705 $ 351 $ 615 $ 300Warranty accruals and adjustments (73) 142 27 201Warranty claims (2) (4) (12) (12)Ending balance $ 630 $ 489 $ 630 $ 489 |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Net income (loss)$ 1,306 $ (3,531) $ (6,350) $ (7,731)Income allocated to participating securities 268 — — —Income (loss) allocated to common shares$ 1,038 $ (3,531) $ (6,350) $ (7,731) Change in fair value of warrant liability$ (4,742) $ — $ (176) $ —Income (loss) allocated to common shares - Diluted$ (3,704) $ (3,531) $ (6,526) $ (7,731) Weighted average common shares outstanding - Basic 72,527,479 57,735,846 71,675,336 54,450,815Dilutive effect of liability classified warrants 1,334,473 — 1,741,657 —Weighted average common shares outstanding - Diluted (1)(2) 73,861,952 57,735,846 73,416,993 54,450,815 Net income (loss) per share: Basic$ 0.01 $ (0.06) $ (0.09) $ (0.14) Diluted$ (0.05) $ (0.06) $ (0.09) $ (0.14)(1)For the three and nine months ended September 30, 2021, weighted average shares used for calculating diluted earnings per share includes the effect of liability classified warrants as they have a dilutive effect on earnings per share. (2)For the three and nine months ended September 30, 2020, weighted average shares used for calculating basic and diluted earnings per share are the same as the inclusion of liability classified warrants, would be anti-dilutive to the earnings per share calculation. |
Schedule of Potentially Dilutive Common Stock Equivalents | Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Restricted Stock Units 402,099 50,000 402,099 50,000Options 3,973,758 4,872,834 3,973,758 4,872,834Warrants 4,780,447 15,055,773 4,780,447 15,055,773Convertible preferred stock 18,726,009 18,726,009 18,726,009 18,726,009Total potentially dilutive common stock equivalents 27,882,313 38,704,616 27,882,313 38,704,616 |
Reconciliation of the Level 3 Warrant Liability Measured and Recorded at Fair Value on a Recurring Basis | Estimated Fair ValueBalance as of January 1, 2021 $ 4,622Fair value of warrants issuance during period -Change in fair value of warrant liability, net (176)Balance as of September 30, 2021 $ 4,446 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition [Abstract] | |
Schedule of Disaggregated Revenue | Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020North and South America $3,727 $4,246 $10,677 $11,963Europe, Middle East, and Africa 1,957 2,408 6,578 7,330Asia Pacific 98 657 1,579 2,449Total $5,782 $7,311 $18,834 $21,742 Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Military $3,733 $5,836 $11,492 $16,363Commercial, including industrial and medical 440 491 2,240 1,213Consumer 448 — 1,598 2,023Multiple 1,161 984 3,504 2,143Total $5,782 $7,311 $18,834 $21,742 |
Schedule of Contract Assets and Liabilities | September 30, December 31, 2021 2020 Unbilled Receivables (contract assets) $ 1,173 $ 253 Deferred Revenue (contract liabilities) $ 65 $ 425 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounts Receivable [Abstract] | |
Schedule of Accounts Receivable | September 30, December 31, 2021 2020Accounts receivable $ 4,484 $ 5,453Less allowance for doubtful accounts (139) (139)Accounts receivable, net $ 4,345 $ 5,314 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventories, Net [Abstract] | |
Schedule of Components of Inventories | September 30, December 31, 2021 2020Raw materials $ 3,574 $ 3,995Work in process 1,861 1,263Finished goods 2,984 3,918Total inventories 8,419 9,176Less inventory reserve (502) (797)Total inventories, net $ 7,917 $ 8,379 |
Line of Credit _ Loan Payable (
Line of Credit / Loan Payable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Line of Credit / Loan Payable [Abstract] | |
Schedule of Line of Credit | September 30, December 31,(in thousands) 2021 2020Revolving credit facility $ 1,992 $ 1,875 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stock Compensation [Abstract] | |
Schedule of Allocation of Non-Cash Stock-Based Compensation | Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Cost of revenues $ 33 $ 2 $ 36 $ 14Research and development 62 7 74 42Selling, general and administrative 324 51 359 91Total stock compensation expense $ 419 $ 60 $ 469 $ 147 |
Schedule of Stock-Based Compensation Cost by Award Type | Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Stock options $ 284 $ 60 $ 309 $ 147Restricted Share Units 135 — 160 —Total stock compensation expense $ 419 $ 60 $ 469 $ 147 |
Schedule of Key Assumptions of Fair Value of Stock Options Granted | Nine Months Ended September 30, 2021 2020Dividend yield 0 % 0 %Risk free interest rates 0.89-0.95 % 0.3 %Expected volatility 75.9 to 79.0 % 46.1 %Expected term (in years) 5.0 to 5.5 5 |
Schedule of Option Activity | Number ofShares WeightedAverageExercisePrice WeightedAverageRemainingContractualLife (In Years) AggregateIntrinsicValueOutstanding at December 31, 2020 4,797,834 $ 2.36 Options granted 230,000 3.24 Options exercised (514,707) 1.92 Options forfeited — — Options cancelled or expired (539,369) 4.41 Outstanding at September 30, 2021 3,973,758 $ 1.95 3.33 $ 2,656,904Vested or expected to vest at September 30, 2021 (1) 3,971,894 $ 1.95 3.33 $ 2,656,516Exercisable at September 30, 2021 3,847,757 $ 1.92 3.15 $ 2,629,494(1)The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. |
Schedule of Restricted Stock Unit Activity | Weighted Average Grant Date Number of Awards Fair Value Per Share Service Performance Service Performance based based based basedRSU's outstanding, beginning of period 50,000 — $ 0.84 $ —Granted 417,591 103,048 3.55 3.60Vested and settled (16,667) — 0.84 —Forfeited (48,825) — 1.72 —RSU's outstanding, end of period 402,099 103,048 3.55 3.60 |
Warrants (Tables)
Warrants (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Warrants [Abstract] | |
Summary of Warrants Issued and Warrants Outstanding | Issued Outstanding Exercise Price Expiration2016 Warrant Issuance 2,947,949 1,680,447 2.60 Feb 20222017 Warrant Issuance (1) 100,000 100,000 2.25 Mar 20222017 Warrant Issuance (2) 1,650,000 1,650,000 2.45 Nov 20222018 Warrant Issuance (2) 4,004,324 2,909,369 1.55 Jul 20232019 Warrant Issuance (3) 6,000,000 3,000,000 0.78 Oct 2024 9,339,816 (1)Issued in conjunction with an unsecured line of credit.(2)Warrants are subject to liability accounting. (3)Private Placement unregistered warrants exercisable six months following issuance. |
Fair Value of Warrants | September 30, December 31, 2021 20202018 January and February Issuance Fair Value $ 3,407 $ 3,577 2017 May Issuance Fair Value 1,039 1,045 $ 4,446 $ 4,622 Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Change in Fair Value of common stock warrant liability (1) $ 4,742 $ (1,803) $ 176 (3,304) (1)The combined changes in fair value are reflected as income (loss) from change in the fair market value of common stock warrant liability. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Finance Lease Cost: Amortization of right-of-use assets $ 157 $ 4 $ 469 $ 12Interest on lease liabilities 198 1 594 3Operating lease cost 15 262 46 786Short-term lease cost 17 31Total Lease Cost $ 370 $ 284 $ 1,109 $ 832 |
Schedule of Other Information | Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 15 $ 266 $ 46 $ 797Financing cash flows from finance leases $ 271 $ 5 $ 815 $ 15Right-of-use assets obtained in exchange for new finance lease liabilities $ 86 $ - $ 194 $ -Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ - $ - $ - September 30, 2021 December 31, 2020Finance lease right-of-use assets $ 12,402 $ 12,677Operating lease right-of-use assets $ 5 $ 50Finance lease liability, current $ 1,138 $ 1,027Finance lease liability, non-current $ 11,641 $ 11,783Operating lease liabilities, current $ 5 $ 51Operating lease liabilities, non-current $ - $ -Weighted average remaining lease terms - finance leases 20.67 years 20.67 yearsWeighted average remaining lease terms - operating leases 0.08 years 0.84 yearsWeighted average discount rate - finance leases 6.42% 6.43%Weighted average discount rate - operating leases 7.75% 7.75% |
Future Annual Minimum Lease Payments and Finance Lease Commitments | Operating Leases Finance Leases2021 $ 5 $ 2702022 - 1,1632023 - 1,2292024 - 1,2292025 - 1,229Thereafter - 22,624Total undiscounted future minimum lease payments 5 27,744Less imputed interest - (14,965)Lease liability $ 5 $ 12,779 (1)Total future lease payments exclude approximately $4.9 million of lease payments related to the Expansion Space portion of the NY Lease that was signed but has not yet commenced as of September 30, 2021 |
Description of the Business a_4
Description of the Business and Summary of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2019 | Sep. 30, 2021USD ($)itemcustomershares | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($)customershares | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($)itemcustomer$ / sharesshares | Sep. 30, 2020USD ($)customershares | Dec. 31, 2020USD ($)shares | Dec. 31, 2014item | Dec. 31, 2019$ / shares | |
Accounting Policies [Line Items] | ||||||||||||
Total intangible amortization expense | $ | $ 2 | $ 2 | $ 6 | $ 6 | ||||||||
Standard product warranty period | 1 year | |||||||||||
Net income (loss) | $ | $ 1,306 | $ (278) | $ (7,378) | $ (3,531) | $ (2,831) | $ (1,369) | $ (6,350) | $ (7,731) | ||||
Total potentially dilutive common stock equivalents | shares | 27,882,313 | 38,704,616 | 27,882,313 | 38,704,616 | ||||||||
Net cash used in operating activities | $ | $ 6,695 | $ 1,694 | ||||||||||
Cash and cash equivalents | $ | $ 7,337 | $ 10,283 | 7,337 | $ 10,283 | $ 8,315 | |||||||
Work status reduction program, percentage decrease in senior management compensation | 20.00% | |||||||||||
Product Volume [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Work in process and finished goods | $ | 700 | |||||||||||
Net income (loss) | $ | $ (700) | |||||||||||
Income (loss) per share, basic and diluted | $ / shares | $ (0.01) | |||||||||||
Preferred Stock- Series B [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Conversion price per share | $ / shares | $ 0.3033 | |||||||||||
Warrants [Member] | Measurement Input, Expected Dividend Rate [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Measurement input | item | 0 | 0 | ||||||||||
Minimum [Member] | Measurement Input, Risk Free Interest Rate [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Measurement input | item | 0.0047 | 0.0047 | ||||||||||
Minimum [Member] | Warrants [Member] | Measurement Input, Expected Term [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Expected term | 8 months 1 day | 8 months 1 day | ||||||||||
Minimum [Member] | Warrants [Member] | Measurement Input, Price Volatility [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Measurement input | item | 0.9123 | 0.9123 | ||||||||||
Maximum [Member] | Measurement Input, Risk Free Interest Rate [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Measurement input | item | 0.0086 | 0.0086 | ||||||||||
Maximum [Member] | Warrants [Member] | Measurement Input, Expected Term [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Expected term | 1 year 3 months 29 days | 1 year 3 months 29 days | ||||||||||
Maximum [Member] | Warrants [Member] | Measurement Input, Price Volatility [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Measurement input | item | 0.9608 | 0.9608 | ||||||||||
Revolving Credit Facility [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Outstanding amount on credit facility | $ | $ 1,992 | $ 1,992 | $ 1,875 | |||||||||
Remaining borrowing capacity | $ | $ 1,900 | $ 1,900 | ||||||||||
Larger Newer Displays [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Maximum potential die per wafer amounts | item | 42 | |||||||||||
Established Displays {Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Maximum potential die per wafer amounts | item | 177 | |||||||||||
Revenues [Member] | Customer Concentration Risk [Member] | One Customer [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Number of customers | customer | 1 | 1 | ||||||||||
Concentration risk percentage | 25.20% | 18.50% | ||||||||||
Cost of Goods, Product Line [Member] | Supplier Concentration Risk [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Number of suppliers | item | 2 | |||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Number of customers | customer | 1 | |||||||||||
Concentration risk percentage | 32.60% | |||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Number of customers | customer | 3 | |||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Five Customers [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Number of customers | customer | 2 | |||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Concentration risk percentage | 22.20% | 17.20% | ||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Concentration risk percentage | 12.30% | |||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Concentration risk percentage | 12.20% | |||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Five [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Concentration risk percentage | 15.80% | |||||||||||
Preferred Stock- Series B [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Total potentially dilutive common stock equivalents | shares | 18,726,009 | 18,726,009 | 18,726,009 | 18,726,009 | 7,545,333 |
Description of the Business a_5
Description of the Business and Summary of Significant Accounting Policies (Summary of Activity Related to Warranty Liability Included in Other Current Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Description of the Business and Summary of Significant Accounting Policies [Abstract] | ||||
Beginning balance | $ 705 | $ 351 | $ 615 | $ 300 |
Warranty accruals and adjustments | (73) | 142 | 27 | 201 |
Warranty claims | (2) | (4) | (12) | (12) |
Ending balance | $ 630 | $ 489 | $ 630 | $ 489 |
Description of the Business a_6
Description of the Business and Summary of Significant Accounting Policies (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Description of the Business and Summary of Significant Accounting Policies [Abstract] | ||||||||
Net income (loss) | $ 1,306 | $ (278) | $ (7,378) | $ (3,531) | $ (2,831) | $ (1,369) | $ (6,350) | $ (7,731) |
Income allocated to participating securities | 268 | |||||||
Net income (loss) allocated to common shares | 1,038 | (3,531) | (6,350) | (7,731) | ||||
Change in fair value of warrant liability | (4,742) | (176) | ||||||
Income (loss) allocated to common shares - Diluted | $ (3,704) | $ (3,531) | $ (6,526) | $ (7,731) | ||||
Weighted average common shares outstanding - Basic | 72,527,479 | 57,735,846 | 71,675,336 | 54,450,815 | ||||
Dilutive effect of liability classified warrants | 1,334,473 | 1,741,657 | ||||||
Weighted average common shares outstanding - Diluted | 73,861,952 | 57,735,846 | 73,416,993 | 54,450,815 | ||||
Net income (loss) per share: Basic | $ 0.01 | $ (0.06) | $ (0.09) | $ (0.14) | ||||
Net income (loss) per share: Diluted | $ (0.05) | $ (0.06) | $ (0.09) | $ (0.14) |
Description of the Business a_7
Description of the Business and Summary of Significant Accounting Policies (Schedule of Potentially Dilutive Common Stock Equivalents) (Details) - shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total potentially dilutive common stock equivalents | 27,882,313 | 38,704,616 | 27,882,313 | 38,704,616 | |
Restricted Share Units [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total potentially dilutive common stock equivalents | 402,099 | 50,000 | 402,099 | 50,000 | |
Stock Options [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total potentially dilutive common stock equivalents | 3,973,758 | 4,872,834 | 3,973,758 | 4,872,834 | |
Warrants [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total potentially dilutive common stock equivalents | 4,780,447 | 15,055,773 | 4,780,447 | 15,055,773 | |
Preferred Stock- Series B [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total potentially dilutive common stock equivalents | 18,726,009 | 18,726,009 | 18,726,009 | 18,726,009 | 7,545,333 |
Description of the Business a_8
Description of the Business and Summary of Significant Accounting Policies (Reconciliation of the Level 3 Warrant Liability Measured and Recorded at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Description of the Business and Summary of Significant Accounting Policies [Abstract] | ||||
Balance as of January 1, 2021 | $ 4,622 | |||
Fair value of warrants issuance during period | ||||
Change in fair value of warrant liability, net | $ (4,742) | $ 1,803 | (176) | $ 3,304 |
Balance as of September 30, 2021 | $ 4,446 | $ 4,446 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Line Items] | |||||
Product warranty term | 1 year | ||||
Unbilled revenue, billed and collected, term | 1 year | ||||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 4,345 | $ 4,345 | $ 5,314 | ||
Revenue recognized related to contract liabilities | $ 21 | $ 0 | $ 360 | $ 33 | |
Minimum [Member] | |||||
Revenue from Contract with Customer [Line Items] | |||||
Payment term | 30 days | ||||
Maximum [Member] | |||||
Revenue from Contract with Customer [Line Items] | |||||
Payment term | 60 days |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligations Narrative) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 $ in Millions | Sep. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 2 |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | $ 5,782 | $ 7,311 | $ 18,834 | $ 21,742 |
Military [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | 3,733 | 5,836 | 11,492 | 16,363 |
Commercial, including Industrial and Medical [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | 440 | 491 | 2,240 | 1,213 |
Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | 448 | 1,598 | 2,023 | |
Multiple [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | 1,161 | 984 | 3,504 | 2,143 |
North and South America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | 3,727 | 4,246 | 10,677 | 11,963 |
Europe, Middle East, and Africa [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | 1,957 | 2,408 | 6,578 | 7,330 |
Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | $ 98 | $ 657 | $ 1,579 | $ 2,449 |
Revenue Recognition (Schedule_2
Revenue Recognition (Schedule of Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Revenue Recognition [Abstract] | ||
Unbilled Receivables (contract assets) | $ 1,173 | $ 253 |
Deferred Revenue (contract liabilities) | $ 65 | $ 425 |
Accounts Receivable (Schedule o
Accounts Receivable (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts Receivable [Abstract] | ||
Accounts receivable | $ 4,484 | $ 5,453 |
Less allowance for doubtful accounts | (139) | (139) |
Accounts receivable, net | $ 4,345 | $ 5,314 |
Inventories, Net (Schedule of C
Inventories, Net (Schedule of Components of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Inventories, Net [Abstract] | ||
Raw materials | $ 3,574 | $ 3,995 |
Work in process | 1,861 | 1,263 |
Finished goods | 2,984 | 3,918 |
Total inventories | 8,419 | 9,176 |
Less inventory reserve | (502) | (797) |
Total inventories, net | $ 7,917 | $ 8,379 |
Line of Credit _ Loan Payable_2
Line of Credit / Loan Payable (Narrative) (Details) - USD ($) | Dec. 21, 2016 | Sep. 30, 2021 | Dec. 31, 2020 | Jun. 08, 2020 |
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing capacity description | provides for up to a maximum amount of $5 million based on a borrowing base equivalent to 85% of eligible accounts receivable plus the lesser of $2 million or 50% of eligible inventory. | |||
Maximum borrowing capacity | $ 5,000,000 | |||
Borrowing base equivalent of eligible accounts receivable, percentage | 85.00% | |||
Borrowing base equivalent of eligible inventory | $ 2,000,000 | |||
Borrowing base equivalent of eligible inventory, percentage | 50.00% | |||
Minimum interest rate | 6.50% | |||
Monthly interest payment | $ 2,000 | |||
Monthly administrative fee | $ 1,000 | |||
Annual facility fee on maximum amount borrowable | 1.00% | |||
Automatic renewal term | 1 year | |||
Minimum net worth required | $ 13,000,000 | |||
Minimum working capital required | 4,000,000 | |||
Outstanding amount on credit facility | 1,992,000 | $ 1,875,000 | ||
Remaining borrowing capacity | $ 1,900,000 | |||
Stated interest rate | 6.50% | |||
Revolving Credit Facility [Member] | Prime Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 3.00% | |||
Paycheck Protection Program [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Minimum interest rate | 1.00% | |||
Loans payable | $ 1,900,000 | |||
Stated interest rate | 1.00% |
Line of Credit _ Loan Payable_3
Line of Credit / Loan Payable (Schedule of Line of Credit) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $ 1,992 | $ 1,875 |
Stock Compensation (Narrative)
Stock Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost, weighted average period of recognition | 9 months 18 days | ||
Dividend yield | 0.00% | 0.00% | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock option compensation, net of forfeitures | $ 176 | $ 176 | |
Intrinsic value of options exercised | 30 | 1,010 | |
Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock option compensation, net of forfeitures | $ 1,200 | $ 1,200 | |
Unrecognized compensation cost, weighted average period of recognition | 2 years 8 months 12 days |
Stock Compensation (Schedule of
Stock Compensation (Schedule of Allocation of Non-Cash Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | $ 419 | $ 60 | $ 469 | $ 147 |
Cost of Revenues [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | 33 | 2 | 36 | 14 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | 62 | 7 | 74 | 42 |
Selling, General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | $ 324 | $ 51 | $ 359 | $ 91 |
Stock Compensation (Schedule _2
Stock Compensation (Schedule of Stock-Based Compensation Cost by Award Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | $ 419 | $ 60 | $ 469 | $ 147 |
Stock Options [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | 284 | $ 60 | 309 | $ 147 |
Restricted Share Units [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | $ 135 | $ 160 |
Stock Compensation (Schedule _3
Stock Compensation (Schedule of Key Assumptions of Fair Value of Stock Options Granted) (Details) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Risk free interest rates, minimum | 0.89% | 0.30% |
Risk free interest rates, maximum | 0.95% | |
Expected volatility, minimum | 75.90% | 46.10% |
Expected volatility, maximum | 79.00% | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 years | 5 years |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 years 6 months |
Stock Compensation (Schedule _4
Stock Compensation (Schedule of Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2021 | |
Stock Compensation [Abstract] | |
Number of Shares, Outstanding at December 31, 2020 | 4,797,834 |
Number of Shares, Options granted | 230,000 |
Number of Shares, Options exercised | (514,707) |
Number of Shares, Options forfeited | |
Number of Shares, Options cancelled or expired | (539,369) |
Number of Shares, Outstanding at September 30, 2021 | 3,973,758 |
Number of Shares, Vested or expected to vest at September 30, 2021 | 3,971,894 |
Number of Shares, Exercisable at September 30, 2021 | 3,847,757 |
Weighted Average Exercise Price, Outstanding at December 31, 2020 | $ 2.36 |
Weighted Average Exercise Price, Options granted | 3.24 |
Weighted Average Exercise Price, Options exercised | 1.92 |
Weighted Average Exercise Price, Options forfeited | |
Weighted Average Exercise Price, Options cancelled or expired | 4.41 |
Weighted Average Exercise Price, Outstanding at September 30, 2021 | 1.95 |
Weighted Average Exercise Price, Vested or expected to vest at September 30, 2021 | 1.95 |
Weighted Average Exercise Price, Exercisable at September 30, 2021 | $ 1.92 |
Weighted Average Remaining Contractual Life (In Years), Outstanding at September 30, 2021 | 3 years 3 months 29 days |
Weighted Average Remaining Contractual Life (In Years), Vested or expected to vest at September 30, 2021 | 3 years 3 months 29 days |
Weighted Average Remaining Contractual Life (In Years), Exercisable at September 30, 2021 | 3 years 1 month 24 days |
Aggregate Intrinsic Value, Outstanding at September 30, 2021 | $ 2,656,904 |
Aggregate Intrinsic Value, Vested or expected to vest at September 30, 2021 | 2,656,516 |
Aggregate Intrinsic Value, Exercisable at September 30, 2021 | $ 2,629,494 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Restricted Stock Unit Activity) (Details) | 9 Months Ended | |
Sep. 30, 2021$ / sharesshares | Dec. 31, 2020$ / shares | |
Service Based Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Awards, RSU's outstanding, beginning of period | shares | 50,000 | |
Number of Awards, Granted | shares | 417,591 | |
Number of Awards, Vested and settled | shares | (16,667) | |
Number of Awards, Forfeited | shares | (48,825) | |
Number of Awards, RSU's outstanding, end of period | shares | 402,099 | |
Weighted Average Grant Date Fair Value per Share, RSU's outstanding, beginning of period | $ / shares | $ 3.55 | $ 0.84 |
Weighted Average Grant Date Fair Value per Share, Granted | $ / shares | 3.55 | |
Weighted Average Grant Date Fair Value per Share, Vested and settled | $ / shares | 0.84 | |
Weighted Average Grant Date Fair Value per Share, Forfeited | $ / shares | 1.72 | |
Weighted Average Grant Date Fair Value per Share, RSU's outstanding, end of period | $ / shares | $ 3.55 | |
Performance Based Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Awards, RSU's outstanding, beginning of period | shares | ||
Number of Awards, Granted | shares | 103,048 | |
Number of Awards, Vested and settled | shares | ||
Number of Awards, Forfeited | shares | ||
Number of Awards, RSU's outstanding, end of period | shares | 103,048 | |
Weighted Average Grant Date Fair Value per Share, RSU's outstanding, beginning of period | $ / shares | $ 3.60 | |
Weighted Average Grant Date Fair Value per Share, Granted | $ / shares | 3.60 | |
Weighted Average Grant Date Fair Value per Share, Vested and settled | $ / shares | ||
Weighted Average Grant Date Fair Value per Share, Forfeited | $ / shares | ||
Weighted Average Grant Date Fair Value per Share, RSU's outstanding, end of period | $ / shares | $ 3.60 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Taxes [Abstract] | ||||
Effective tax rate | 0.00% | 0.00% | 0.00% | 0.00% |
Federal statutory rate | 21.00% | 21.00% | 21.00% | 21.00% |
Operating loss carryforward, expiration | Dec. 31, 2037 | |||
Expected refund for AMT credit carryforward | $ 212 | $ 212 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | May 12, 2021 | Mar. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | |||||||
Equipment purchases commitments | $ 987 | ||||||
Demand letter for payment | $ 900 | ||||||
Settlement agreement, payment to be received | $ 600 | ||||||
Consumer Night Vision, accrued invoices | $ 1,000 | ||||||
Other income (expense) | $ 87 | $ 148 | 314 | $ 163 | |||
Reclassification, Other [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Consumer Night Vision, accrued invoices | (1,000) | (1,000) | |||||
Prepayment, writeoff | 300 | ||||||
Other income (expense) | $ 100 | ||||||
Government Award [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Equipment purchases commitments | $ 16,500 |
Warrants (Narrative) (Details)
Warrants (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Warrants [Abstract] | |||
Warrants exercised | 0 | ||
Proceeds from exercise of warrants | $ 5,652 | $ 40 | |
Exercise of common stock warrants, shares | 3,343,660 |
Warrants (Summary of Warrants I
Warrants (Summary of Warrants Issued and Warrants Outstanding) (Details) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Class of Warrant or Right [Line Items] | |
Outstanding | 9,339,816 |
2016 Warrant Issuance [Member] | |
Class of Warrant or Right [Line Items] | |
Issued | 2,947,949 |
Outstanding | 1,680,447 |
Exercise Price | $ / shares | $ 2.60 |
Expiration | 2022-02 |
2017 Warrant Issuance 1 [Member] | |
Class of Warrant or Right [Line Items] | |
Issued | 100,000 |
Outstanding | 100,000 |
Exercise Price | $ / shares | $ 2.25 |
Expiration | 2022-03 |
2017 Warrant Issuance 2 [Member] | |
Class of Warrant or Right [Line Items] | |
Issued | 1,650,000 |
Outstanding | 1,650,000 |
Exercise Price | $ / shares | $ 2.45 |
Expiration | 2022-11 |
2018 Warrant Issuance [Member] | |
Class of Warrant or Right [Line Items] | |
Issued | 4,004,324 |
Outstanding | 2,909,369 |
Exercise Price | $ / shares | $ 1.55 |
Expiration | 2023-07 |
2019 Warrant Issuance [Member] | |
Class of Warrant or Right [Line Items] | |
Issued | 6,000,000 |
Outstanding | 3,000,000 |
Exercise Price | $ / shares | $ 0.78 |
Expiration | 2024-10 |
Warrants (Fair Value of Warrant
Warrants (Fair Value of Warrants) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Class of Warrant or Right [Line Items] | |||||
Fair Value | $ 4,446 | $ 4,446 | $ 4,622 | ||
Change in Fair Value of common stock warrant liability | 4,742 | $ (1,803) | 176 | $ (3,304) | |
2018 January and February Issuance [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Fair Value | 3,407 | 3,407 | 3,577 | ||
2017 May issuance [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Fair Value | $ 1,039 | $ 1,039 | $ 1,045 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 1 Months Ended | 9 Months Ended | |
Nov. 30, 2020ft²item | Sep. 30, 2021 | May 02, 2021 | |
Hopewell Junction, NY [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lease expiration date | 2024-05 | ||
Hopewell Junction, NY [Member] | 12th Amendment [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Additional area of office and manufacturing facilities (in square feet) | ft² | 63,000 | ||
Number of options to renew lease agreement | item | 2 | ||
Options to renew lease agreement, period of renewal | 5 years | ||
Santa Clara, California [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lease expiration date | 2021-10 | ||
Lease extension term | 2 years | ||
Phone Equipment [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease, term of contract | 3 years |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Finance Lease Cost: | ||||
Amortization of right-of-use assets | $ 157 | $ 4 | $ 469 | $ 12 |
Interest on lease liabilities | 198 | 1 | 594 | 3 |
Operating lease cost | 15 | 262 | 46 | 786 |
Short-term lease cost | 17 | 31 | ||
Total Lease Cost | $ 370 | $ 284 | $ 1,109 | $ 832 |
Leases (Schedule of Other Infor
Leases (Schedule of Other Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Leases [Abstract] | |||||
Operating cash flows from operating leases | $ 15 | $ 266 | $ 46 | $ 797 | |
Financing cash flows from finance leases | 271 | 5 | 815 | 15 | |
Right-of-use assets obtained in exchange for new finance lease liabilities | 86 | 194 | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | |||||
Finance lease right-of-use assets | 12,402 | 12,402 | $ 12,677 | ||
Operating lease right-of-use assets | 5 | 5 | 50 | ||
Finance lease liability, current | 1,138 | 1,138 | 1,027 | ||
Finance lease liability, non-current | 11,641 | 11,641 | 11,783 | ||
Operating lease liabilities, current | 5 | 5 | 51 | ||
Operating lease liabilities, non-current | |||||
Weighted average remaining lease terms - finance leases | 20 years 8 months 1 day | 20 years 8 months 1 day | 20 years 8 months 1 day | ||
Weighted average remaining lease terms - operating leases | 29 days | 29 days | 10 months 2 days | ||
Weighted average discount rate - finance leases | 6.42% | 6.42% | 6.43% | ||
Weighted average discount rate - operating leases | 7.75% | 7.75% | 7.75% |
Leases (Future Annual Minimum L
Leases (Future Annual Minimum Lease Payments and Finance Lease Commitments) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Operating Leases | |
2021 | $ 5 |
2022 | |
2023 | |
2024 | |
2025 | |
Thereafter | |
Total undiscounted future minimum lease payments | 5 |
Less imputed interest | |
Lease liability | 5 |
Finance Leases | |
2021 | 270 |
2022 | 1,163 |
2023 | 1,229 |
2024 | 1,229 |
2025 | 1,229 |
Thereafter | 22,624 |
Total undiscounted future minimum lease payments | 27,744 |
Less imputed interest | (14,965) |
Lease liability | 12,779 |
12th Amendment [Member] | Hopewell Junction, NY [Member] | |
Operating Leases | |
Lease liability | $ 4,900 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ in Thousands | Jun. 10, 2020 | Sep. 30, 2020 | Dec. 31, 2020 |
Shareholders' Equity [Abstract] | |||
Sale of stock agreement, authorized amount | $ 7,290 | ||
Proceeds from offering | $ 9,784 | $ 9,800 |
Government Funding (Narrative)
Government Funding (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2021 | Dec. 31, 2020 | Jul. 28, 2020 | Jun. 11, 2020 | |
Government Funding [Abstract] | ||||
Amount awarded | $ 33,600 | $ 5,500 | ||
Government funding, term of contract | 33 months | |||
Deposits received, required by capital equipment vendors | $ 12,200 | |||
Restricted cash | 1,272 | $ 2,111 | ||
Amount invoiced | 12,200 | |||
Deferred income related to certain overhead expenses, not capitalized | $ 174 | |||
Maintain productive capacity of equipment purchased past completion of program, period | 5 years |