Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | EMAGIN CORP | |
Entity Filer Category | Smaller Reporting Company | |
Entity Central Index Key | 1,046,995 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Fiscal Period Focus | Q2 | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 29,388,104 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 6,100 | $ 9,273 |
Accounts receivable, net | 3,455 | 3,508 |
Unbilled accounts receivable | 1,383 | 1,445 |
Inventories, net | 5,272 | 3,901 |
Prepaid expenses and other current assets | 706 | 489 |
Total current assets | 16,916 | 18,616 |
Equipment, furniture and leasehold improvements, net | 8,806 | 9,131 |
Intangibles and other assets | 309 | 336 |
Total assets | 26,031 | 28,083 |
Current liabilities: | ||
Accounts payable | 1,571 | 1,636 |
Accrued compensation | 1,354 | 1,246 |
Other accrued expenses | 1,044 | 1,193 |
Other current liabilities | 546 | 602 |
Total current liabilities | 4,515 | 4,677 |
Commitments and contingencies (Note 8) | ||
Shareholders' equity: | ||
Preferred stock, $.001 par value: authorized 10,000,000 shares: Series B Convertible Preferred stock, (liquidation preference of $5,659,000) stated value $1,000 per share, $.001 par value: 10,000 shares designated and 5,659 issued and outstanding as of June 30, 2016 and December 31, 2015 | ||
Common stock, $.001 par value: authorized 200,000,000 shares, issued 29,550,170 shares as of June 30, 2016 and December 31, 2015 | 30 | 30 |
Additional paid-in capital | 235,074 | 234,814 |
Accumulated deficit | (213,088) | (210,938) |
Treasury stock, 162,066 shares as of June 30, 2016 and December 31, 2015 | (500) | (500) |
Total shareholders' equity | 21,516 | 23,406 |
Total liabilities and shareholders' equity | $ 26,031 | $ 28,083 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 29,550,170 | 29,550,170 |
Treasury stock, shares | 162,066 | 162,066 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, liquidation preference | $ 5,659,000 | $ 5,659,000 |
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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue: | ||||
Product | $ 4,781 | $ 5,426 | $ 10,076 | $ 10,530 |
Contract | 752 | 1,608 | 1,458 | 2,493 |
License | 1,000 | |||
Total revenues, net | 5,533 | 7,034 | 12,534 | 13,023 |
Cost of revenues: | ||||
Product | 3,807 | 3,533 | 7,094 | 6,585 |
Contract | 391 | 893 | 770 | 1,470 |
License | ||||
Total cost of revenues | 4,198 | 4,426 | 7,864 | 8,055 |
Gross profit | 1,335 | 2,608 | 4,670 | 4,968 |
Operating expenses: | ||||
Research and development | 1,499 | 1,028 | 2,802 | 2,013 |
Selling, general and administrative | 1,993 | 1,640 | 4,003 | 2,686 |
Total operating expenses | 3,492 | 2,668 | 6,805 | 4,699 |
Income (loss) from operations | (2,157) | (60) | (2,135) | 269 |
Other income (expense): | ||||
Interest expense, net | (10) | (11) | (20) | (21) |
Other income, net | 3 | 5 | 5 | 6 |
Total other income (expense), net | (7) | (6) | (15) | (15) |
Income (loss) before provision for income taxes | (2,164) | (66) | (2,150) | 254 |
Provision for income taxes | ||||
Net income (loss) | (2,164) | (66) | (2,150) | 254 |
Less net income allocated to participating securities | 59 | |||
Net income (loss) allocated to common shares | $ (2,164) | $ (66) | $ (2,150) | $ 195 |
Income (loss) per share, basic | $ (0.07) | $ (0.07) | $ 0.01 | |
Income (loss) per share, diluted | $ (0.07) | $ (0.07) | $ 0.01 | |
Weighted average number of shares outstanding: | ||||
Basic | 29,388,104 | 25,142,371 | 29,388,104 | 25,091,875 |
Diluted | 29,388,104 | 25,142,371 | 29,388,104 | 25,759,778 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (2,150) | $ 254 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 814 | 703 |
Reduction in provision for doubtful accounts | (473) | |
Reduction in inventory reserve | (171) | (17) |
Stock-based compensation | 260 | 316 |
Loss on sale of asset | 1 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 53 | 303 |
Unbilled accounts receivable | 62 | (520) |
Inventories, net | (1,200) | (861) |
Prepaid expenses and other current assets | (217) | 57 |
Accounts payable, accrued expenses, and other current liabilities | (162) | (92) |
Net cash used in operating activities | (2,710) | (330) |
Cash flows from investing activities: | ||
Purchase of equipment | (463) | (547) |
Maturities of investments | 750 | |
Net cash provided by (used in) investing activities | (463) | 203 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 266 | |
Net cash provided by financing activities | 266 | |
Net increase (decrease) in cash and cash equivalents | (3,173) | 139 |
Cash and cash equivalents, beginning of period | 9,273 | 5,290 |
Cash and cash equivalents, end of period | 6,100 | 5,429 |
Cash paid for interest | 6 | 6 |
Cash paid for income taxes | ||
Non-cash investing activities: | ||
Non-cash equipment purchases | $ 456 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Note 1: Summary of Significant Accounting Policies The Business eMagin Corporation (the “Company”) designs, develops, manufactures, and markets OLED (organic light emitting diode)–on-silicon microdisplays and virtual imaging products which utilize OLED microdisplays. The Company’s products are sold mainly in North America, Asia, and Europe. Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements of eMagin Corporation and its subsidiary reflect all adjustments, including normal recurring accruals, necessary for a fair presentation. All significant intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the Securities and Exchange Commission. The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited condensed consolidated financial statements are read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The results of operations for the period ended June 30, 2016 are not necessarily indicative of the results to be expected for the full year. The consolidated condensed financial statements as of December 31, 2015 are derived from audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Use of estimates In accordance with accounting principles generally accepted in the United States of America, management utilizes certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments related to, among others, allowance for doubtful accounts, warranty reserves, inventory reserves, stock-based compensation expense, deferred tax asset valuation allowances, 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. Reclassifications Certain immaterial prior period amounts have been reclassified to conform to current period presentatio n with no impact on previously reported net income , assets or shareholders’ equity. Revenues and Cost Recognition Revenues from product sales are recognized when persuasive evidence of an arrangement exists, such as when a purchase order or contract is received from the customer, the price is fixed, title and risk of loss to the goods has changed and there is a reasonable assurance of collection of the sales proceeds. We obtain written purchase authorizations from our customers for a specified amount of product at a specified price and consider delivery to have occurred at the time of shipment. Revenues from research and development activities relating to firm fixed-price contracts and cost-type contracts are generally recognized on the percentage-of-completion method of accounting as costs are incurred (cost-to-cost basis). Progress is generally based on a cost-to-cost approach; however, an alternative method may be used such as physical progress, labor hours or others depending on the type of contract. Physical progress is determined as a combination of input and output measures as deemed appropriate by the circumstances. Contract costs include all direct material, labor and subcontractor costs and an allocation of allowable indirect costs as defined by each contract, as periodically adjusted to reflect revised agreed upon rates. These rates are subject to audit by the other party. Revenues from sales or licenses of intellectual property are recognized when transferred to the customer, provided the license has stand-alone value and the contract provides the right to use the intellectual property as it exists at the point the license is granted, without further obligations of the Company to update the intellectual property after the license is transferred. If the license does not have standalone value, then the license is combined with other deliverables, such as Research and Development (“R&D”) or manufacturing services into a single unit of account. Revenue from the single unit of account is recognized when earned, typically as the R&D or manufacturing services are performed over the life of the contract. Recently issued accounting standards In March 2016, the Financial Accounting Standards Board ( “ FASB ” ) issued guidance which changes the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, and classification in the Consolidated Statement of Cash Flows. The guidance is effective January 1, 2017 and early adoption is permitted. The Company is currently evaluating the impact of the new guidance. In February 2016, the FASB issued guidance which changes the accounting for leases. The guidance requires lessees to recognize a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term and, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis for all leases (with the exception of short-term leases). The guidance is effective January 1, 2019 and early adoption is permitted. The Company is currently evaluating the impact of the new guidance and the date of adoption . The Company’s operating lease commitments were $3.2 million at December 31, 2015. In November 2015, the FASB issued guidance which requires deferred tax liabilities and assets be classified as noncurrent in the statement of financial position. This guidance requires entities with a classified balance sheet to present all deferred tax assets and liabilities as non-current. The guidance is effective for annual and interim periods beginning after December 15, 2016 and can be applied prospectively or retrospectively to adjustments with early adoption permitted at the beginning of an interim or annual reporting period. The Company does not expect the adoption of the new accounting guidance to have a material impact on its financial statements. In July 2015, the FASB issued guidance on the measurement of inventory, which requires that inventory be measured at the lower of cost or net realizable value. The updated standard should be adopted prospectively and is effective for annual reporting periods (including interim periods therein) beginning after December 15, 2016 with early adoption permitted. The Company does not expect the adoption of the new accounting guidance to have a material impact on its financial statements. In April 2015, the FASB issued guidance about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a services contract. All software licenses recognized under this guidance will be accounted for consistent with other licenses of intangible assets. The guidance was effective January 1, 2016 and the Company adopted it on a prospective basis. The guidance did not have a material impact on the Company’s financial statements. In November 2014, the FASB issued guidance to eliminate the diversity in practice for the accounting for hybrid financial instruments issued in the form of a share. The guidance requires management to consider all terms and features, whether stated or implied, of a hybrid instrument when determining whether the nature of the instrument is more akin to a debt instrument or an equity instrument. Embedded derivative features, which are accounted for separately from host contracts, should also be considered in the analysis of the hybrid instrument. The Company adopted the guidance effective January 1, 2016 and it did not have an impact on its financial statements. In May 2014, the FASB issued guidance on the recognition of revenue from contracts with customers, which will require an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. Generally A ccepted Accounting Principles ( GAAP) when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. In July 2015, the FASB voted to defer the effective date for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods) and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. The Company expects the updated standard to become effective for it in the first quarter of fiscal 2018. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its financial statements. Unbilled Accounts Receivable Unbilled accounts receivable represents contract revenue recognized but not yet invoiced due to contract terms or the timing of the accounting invoicing cycle. Intangible Assets – Patents Acquired patents are recorded at purchase price as of the date acquired and amortized over the expected useful life which is generally the remaining life of the patent. The total intangible amortization expense was approximately $13 thousand and $27 thousand for the three and six months ended June 30, 2016, respectively. Estimated future amortization expense as of June 30, 2016 is as follows (in thousands): Fiscal Years ending December 31, Total Amortization (unaudited) 2016 (six months remaining) $ 27 2017 54 2018 54 2019 32 2020 9 Later years 40 $ 216 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 (unaudited) (unaudited) Beginning balance $ 555 $ 403 $ 599 $ 663 Warranty accruals 105 276 108 289 Warranty usage (120) (114) (167) (387) Ending balance $ 540 $ 565 $ 540 $ 565 Net Income per Common Share Basic income (loss) per share is computed using the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of common stock equivalent shares such as stock options, warrants, and convertible preferred stock. Diluted income (loss) per share is computed using the weighted average number of common shares outstanding and potentially dilutive common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is anti-dilutive. The Company’s Series B Convertible Preferred stock (“Preferred Stock – Series B”) is considered a participating security as the preferred stock participates in dividends with the common stock, which requires the use of the two-class method when computing basic and diluted earnings per share. The Preferred Stock – Series B is not required to absorb any net loss. 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. 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 six months ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30 June 30 (unaudited) (unaudited) 2016 2015 2016 2015 Net Income $ (2,164) $ (66) $ (2,150) $ 254 Income allocated to participating securities — — — 59 Income allocated to common shares $ (2,164) $ (66) $ (2,150) $ 195 Weighted average common shares outstanding - Basic 29,388,104 25,142,371 29,388,104 25,091,875 Dilutive effect of stock options — — — 667,903 Weighted average common shares outstanding - Diluted 29,388,104 25,142,371 29,388,104 25,759,778 Net income per share: Basic $ (0.07) $ - $ (0.07) $ 0.01 Diluted $ (0.07) $ - $ (0.07) $ 0.01 The following table sets forth the potentially dilutive common stock equivalents for the three and six month periods ended June 30, 2016 and 2015 that were not included in diluted EPS as their effect would be anti-dilutive: For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 (unaudited) (unaudited) Options 3,966,089 4,154,689 3,966,089 3,306,545 Warrants 2,600,000 7,545,333 2,600,000 — Total potentially dilutive common stock equivalents 6,566,089 11,700,022 6,566,089 3,306,545 |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2016 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable, Net | Note 2: Accounts Receivable, net The majority of the Company’s commercial accounts receivable are due from Original Equipment Manufacturers ( “ OEM’s”). Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable consisted of the following (in thousands): June 30, 2016 December 31, 2015 (unaudited) Accounts receivable $ 3,582 $ 3,635 Less allowance for doubtful accounts (127) (127) Accounts receivable, net $ 3,455 $ 3,508 |
Inventories, Net
Inventories, Net | 6 Months Ended |
Jun. 30, 2016 | |
Inventories, Net [Abstract] | |
Inventories, Net | Note 3: Inventories, net The components of inventories are as follows (in thousands): June 30, 2016 December 31, 2015 (unaudited) Raw materials $ 3,286 $ 2,595 Work in process 1,514 1,369 Finished goods 1,850 1,486 Total inventories 6,650 5,450 Less inventory reserve (1,378) (1,549) Total inventories, net $ 5,272 $ 3,901 |
Line Of Credit
Line Of Credit | 6 Months Ended |
Jun. 30, 2016 | |
Line Of Credit [Abstract] | |
Line Of Credit | Note 4: Line of Credit On September 1, 2015, the Company renewed its credit facility with is existing lender, under which the Company may borrow up to a maximum of $3 million based on a borrowing base equivalent of 75% of eligible accounts receivable. The terms are: interest on outstanding borrowings is P rime plus 4% but not less than 7.25% , the minimum monthly interest payment of $1,000 and early termination fee of $6,000 . The Company is in discussions with its lender regarding possible modifications to the credit facility and the parties have agreed that an automatic renewal provision originally scheduled on September 1, 2016 is no longer in effect. The Company’s obligations under the credit facility are secured by its assets. For the three and six months ended June 30, 2016 and 2015 , the Company had not drawn on its line of credit. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 5: Stock-based Compensation The Company uses the fair value method of accounting for share-based compensation arrangements. The fair value of stock options is estimated at the date of grant using the Black-Scholes option valuation model. Stock-based compensation expense is reduced for estimated forfeitures and is amortized over the vesting period using the straight-line method. The following table summarizes the allocation of non-cash stock-based compensation to our expense categories for the three and six month periods ended June 30, 2016 and 201 5 (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2016 2015 2016 2015 (unaudited) (unaudited) Cost of revenues $ 3 $ 13 $ 10 $ 36 Research and development 5 26 33 62 Selling, general and administrative 85 60 217 218 Total stock compensation expense $ 93 $ 99 $ 260 $ 316 At June 30, 2016 , total unrecognized compensation costs related to stock options was approxima tel y $0.2 m illion, net of estimated forfeitures. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures and is expected to be recognized over a weighted average period of approximately 1.5 y ears. The following key assumptions were used in the Black-Scholes option pricing model to determine the fair value of stock options granted: For the Six Months Ended June 30, 2016 2015 (unaudited) Dividend yield 0 % 0 % Risk free interest rates 0.71 - 1.01 % 0.84 – 1.56 % Expected volatility 51.3 to 53.5 % 57.8 to 63.9 % Expected term (in years) 3.5 to 5.0 3.5 to 5.0 The Company does not expect to pay dividends in the near future . T herefore , the Company used an expected dividend yield of 0% . The risk-free interest rate used in the Black-Scholes option pricing model is based on yield available at dates of 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 six months ended June 30, 2016 is presented in the following table (unaudited): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2015 4,218,139 $ 3.75 Options granted 295,065 1.74 Options exercised — Options forfeited (49,980) 2.02 Options cancelled or expired (497,135) 7.66 Outstanding at June 30, 2016 3,966,089 $ 3.13 3.76 $ 607,968 Vested or expected to vest at June 30, 2016 3,961,104 $ 3.13 3.76 $ 607,888 Exercisable at June 30, 2016 3,716,914 $ 3.14 3.73 $ 603,968 (1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options . The aggregate intrinsic value in the table above represents the difference between the exercise price of the underlying options and the quoted price of the Company’s common stock. For the three and six months ended June 30, 2016 , there were no options exercised. The Company issues new shares of common stock upon exercise of stock options. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 6: Shareholders’ Equity Preferred Stock - Series B Convertible Preferred Stock (“the Preferred Stock – Series B”) As of June 30, 2016 and December 31, 2015 , there were 5,659 shares of Preferred Stock – Series B issued and outstanding . Common Stock There were no stock options or warrants exercised during the three or six month periods ended June 30, 2016. Warrants At June 30, 2016, there were 2.6 million warrants to purchase shares of common stock outstanding and exercisable at an exercise price of $2.05 with an expiration date of June 23, 2021 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 7: Income Taxes The Company’s effective tax rate is calculated quarterly based upon current assumptions relating to the full year’s estimated operating results and various tax-related items. The Company’s effective tax rate for the three month periods ended June 30, 2016 and 2015 was 0% . The difference between the effective tax rate of 0% and the U.S. federal statutory rate of 34% for the three months ended June 30, 2016 and 2015 was primarily due to recognizing a full valuation allowance on deferred tax assets . As of June 30, 2016 , the Company determined that based on all available eviden ce, 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 rec ord a full valuation allowance. The Company’s net operating loss carry forward amounts e xpire through 2037 and are subject to certain limitations that may occur due to change in ownership provisions under Section 382 of the Internal Revenue Code and similar state provisions. Due to the Company’s operating loss carryforwards, all tax years remain open to examination by the major taxing jurisdictions to which the Company is subject. In the event that the Company is assessed interest or penalties at some point in the future, it will be classified in the financial statements as tax expense. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note 8: Commitments and Contingencies E quipment Purchase Commitments The Company has committed to equipment purchases of approxima tely $ 0.8 million at June 30, 2016 . Future Sales Concessions I n the first quarter of 2014, the Company received a notification to stop shipments to three of its customers regarding a possible wire bonding problem in some of the microdisplays shipped to these customers. Shipments to two of the three customers resumed in 2014. As the third customer (“this Customer”) was not interested in continuing to use eMagin’s standard commercial microdisplay which was originally shipped, eMagin has been working, at this Customer’s request, on a more mechanically robust display configuration. This Customer provided a proposal to eMagin which the Company countered that included concessions to this Customer predicated on future business. On June 16, 2016, the Company obtained a formal release from this Customer for any future concessions and from any liabilities or obligations arising from the matter. Litigation From time to time, the Company is subject to various legal proceedings and claims that arise in the ordinary course of business. The Company accrues for losses related to li ti gation when a potential loss is probable and the loss can be reasonably estimated. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. All estimates are based on the best information available at the time which can be highly subjective. On May 5, 2015, Kimchuk, Inc. (“Kimchuk”), a former supplier , commenced action against the Company in the U.S. District Court, District of Connecticut, asserting breach of contract and seeking to recover approximately $389,000 in alleged damages. The Company filed its response and counter-complaint on August 11, 2015 wherein the Company denied the material allegations asserted by Kimchuk and sought approximately $3.5 million in damages from Kimchuk. On June 1, 2016, the Company entered into a settlement agreement with Kimchuk whereby, for consideration of approximately $227,000 , Kimchuk agreed to dismiss the matter, provide parts and material to eMagin and settle outstanding accounts payable. The Company recorded an accrual for the litigation in the quarter ended September 30, 2015, and did not incur any additional settlement expense during the current quarter ended June 30, 2016 associated with the matter. |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2016 | |
Concentrations [Abstract] | |
Concentrations | Note 9: Concentrations The following is a schedule of revenues by geographic location (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (unaudited) (unaudited) North and South America $ 2,890 $ 4,999 $ 7,173 $ 8,723 Europe, Middle East, and Africa 2,149 1,430 4,336 3,591 Asia Pacific 494 605 1,025 709 Total $ 5,533 $ 7,034 $ 12,534 $ 13,023 The following table represents the domestic and international revenues as a percentage of total net revenues: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (unaudited) (unaudited) Domestic 52 % 71 % 57 % 66 % International 48 % 29 % 43 % 34 % The Company purchases principally all of its silicon wafers from two suppliers located in Taiwan and Korea. For the three months ended June 30, 2016, two customer s accounted for 14% and 11 % of net revenue s. F or the six months ended June 30 , 201 6 , one customer accounted for 10% of net revenue s . For the three months ended June 30, 2015 , three customer s accounted for 15% , 14% and 12% of net revenue s. For the six months ended June 30 , 201 5 , two customers accounted for 14% and 10% of n et revenue s. As of June 30, 2016, one customer accounted for 10% of the Company’s consolidated accounts receivable balance. |
Summary Of Significant Accoun15
Summary Of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
The Business | The Business eMagin Corporation (the “Company”) designs, develops, manufactures, and markets OLED (organic light emitting diode)–on-silicon microdisplays and virtual imaging products which utilize OLED microdisplays. The Company’s products are sold mainly in North America, Asia, and Europe. |
Basis Of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements of eMagin Corporation and its subsidiary reflect all adjustments, including normal recurring accruals, necessary for a fair presentation. All significant intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the Securities and Exchange Commission. The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited condensed consolidated financial statements are read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The results of operations for the period ended June 30, 2016 are not necessarily indicative of the results to be expected for the full year. The consolidated condensed financial statements as of December 31, 2015 are derived from audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. |
Use Of Estimates | Use of estimates In accordance with accounting principles generally accepted in the United States of America, management utilizes certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments related to, among others, allowance for doubtful accounts, warranty reserves, inventory reserves, stock-based compensation expense, deferred tax asset valuation allowances, 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. |
Reclassifications | Reclassifications Certain immaterial prior period amounts have been reclassified to conform to current period presentatio n with no impact on previously reported net income , assets or shareholders’ equity. |
Revenues And Cost Recognition | Revenues and Cost Recognition Revenues from product sales are recognized when persuasive evidence of an arrangement exists, such as when a purchase order or contract is received from the customer, the price is fixed, title and risk of loss to the goods has changed and there is a reasonable assurance of collection of the sales proceeds. We obtain written purchase authorizations from our customers for a specified amount of product at a specified price and consider delivery to have occurred at the time of shipment. Revenues from research and development activities relating to firm fixed-price contracts and cost-type contracts are generally recognized on the percentage-of-completion method of accounting as costs are incurred (cost-to-cost basis). Progress is generally based on a cost-to-cost approach; however, an alternative method may be used such as physical progress, labor hours or others depending on the type of contract. Physical progress is determined as a combination of input and output measures as deemed appropriate by the circumstances. Contract costs include all direct material, labor and subcontractor costs and an allocation of allowable indirect costs as defined by each contract, as periodically adjusted to reflect revised agreed upon rates. These rates are subject to audit by the other party. Revenues from sales or licenses of intellectual property are recognized when transferred to the customer, provided the license has stand-alone value and the contract provides the right to use the intellectual property as it exists at the point the license is granted, without further obligations of the Company to update the intellectual property after the license is transferred. If the license does not have standalone value, then the license is combined with other deliverables, such as Research and Development (“R&D”) or manufacturing services into a single unit of account. Revenue from the single unit of account is recognized when earned, typically as the R&D or manufacturing services are performed over the life of the contract. |
Recently Issued Accounting Standards | Recently issued accounting standards In March 2016, the Financial Accounting Standards Board ( “ FASB ” ) issued guidance which changes the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, and classification in the Consolidated Statement of Cash Flows. The guidance is effective January 1, 2017 and early adoption is permitted. The Company is currently evaluating the impact of the new guidance. In February 2016, the FASB issued guidance which changes the accounting for leases. The guidance requires lessees to recognize a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term and, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis for all leases (with the exception of short-term leases). The guidance is effective January 1, 2019 and early adoption is permitted. The Company is currently evaluating the impact of the new guidance and the date of adoption . The Company’s operating lease commitments were $3.2 million at December 31, 2015. In November 2015, the FASB issued guidance which requires deferred tax liabilities and assets be classified as noncurrent in the statement of financial position. This guidance requires entities with a classified balance sheet to present all deferred tax assets and liabilities as non-current. The guidance is effective for annual and interim periods beginning after December 15, 2016 and can be applied prospectively or retrospectively to adjustments with early adoption permitted at the beginning of an interim or annual reporting period. The Company does not expect the adoption of the new accounting guidance to have a material impact on its financial statements. In July 2015, the FASB issued guidance on the measurement of inventory, which requires that inventory be measured at the lower of cost or net realizable value. The updated standard should be adopted prospectively and is effective for annual reporting periods (including interim periods therein) beginning after December 15, 2016 with early adoption permitted. The Company does not expect the adoption of the new accounting guidance to have a material impact on its financial statements. In April 2015, the FASB issued guidance about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a services contract. All software licenses recognized under this guidance will be accounted for consistent with other licenses of intangible assets. The guidance was effective January 1, 2016 and the Company adopted it on a prospective basis. The guidance did not have a material impact on the Company’s financial statements. In November 2014, the FASB issued guidance to eliminate the diversity in practice for the accounting for hybrid financial instruments issued in the form of a share. The guidance requires management to consider all terms and features, whether stated or implied, of a hybrid instrument when determining whether the nature of the instrument is more akin to a debt instrument or an equity instrument. Embedded derivative features, which are accounted for separately from host contracts, should also be considered in the analysis of the hybrid instrument. The Company adopted the guidance effective January 1, 2016 and it did not have an impact on its financial statements. In May 2014, the FASB issued guidance on the recognition of revenue from contracts with customers, which will require an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. Generally A ccepted Accounting Principles ( GAAP) when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. In July 2015, the FASB voted to defer the effective date for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods) and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. The Company expects the updated standard to become effective for it in the first quarter of fiscal 2018. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its financial statements. |
Unbilled Accounts Receivable | Unbilled Accounts Receivable Unbilled accounts receivable represents contract revenue recognized but not yet invoiced due to contract terms or the timing of the accounting invoicing cycle. |
Intangible Assets – Patents | Intangible Assets – Patents Acquired patents are recorded at purchase price as of the date acquired and amortized over the expected useful life which is generally the remaining life of the patent. The total intangible amortization expense was approximately $13 thousand and $27 thousand for the three and six months ended June 30, 2016, respectively. Estimated future amortization expense as of June 30, 2016 is as follows (in thousands): Fiscal Years ending December 31, Total Amortization (unaudited) 2016 (six months remaining) $ 27 2017 54 2018 54 2019 32 2020 9 Later years 40 $ 216 |
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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 (unaudited) (unaudited) Beginning balance $ 555 $ 403 $ 599 $ 663 Warranty accruals 105 276 108 289 Warranty usage (120) (114) (167) (387) Ending balance $ 540 $ 565 $ 540 $ 565 |
Net Income per Common Share | Net Income per Common Share Basic income (loss) per share is computed using the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of common stock equivalent shares such as stock options, warrants, and convertible preferred stock. Diluted income (loss) per share is computed using the weighted average number of common shares outstanding and potentially dilutive common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is anti-dilutive. The Company’s Series B Convertible Preferred stock (“Preferred Stock – Series B”) is considered a participating security as the preferred stock participates in dividends with the common stock, which requires the use of the two-class method when computing basic and diluted earnings per share. The Preferred Stock – Series B is not required to absorb any net loss. 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. 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 six months ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30 June 30 (unaudited) (unaudited) 2016 2015 2016 2015 Net Income $ (2,164) $ (66) $ (2,150) $ 254 Income allocated to participating securities — — — 59 Income allocated to common shares $ (2,164) $ (66) $ (2,150) $ 195 Weighted average common shares outstanding - Basic 29,388,104 25,142,371 29,388,104 25,091,875 Dilutive effect of stock options — — — 667,903 Weighted average common shares outstanding - Diluted 29,388,104 25,142,371 29,388,104 25,759,778 Net income per share: Basic $ (0.07) $ - $ (0.07) $ 0.01 Diluted $ (0.07) $ - $ (0.07) $ 0.01 The following table sets forth the potentially dilutive common stock equivalents for the three and six month periods ended June 30, 2016 and 2015 that were not included in diluted EPS as their effect would be anti-dilutive: For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 (unaudited) (unaudited) Options 3,966,089 4,154,689 3,966,089 3,306,545 Warrants 2,600,000 7,545,333 2,600,000 — Total potentially dilutive common stock equivalents 6,566,089 11,700,022 6,566,089 3,306,545 |
Summary Of Significant Accoun16
Summary Of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
Schedule Of Estimated Future Amortization Expense | Fiscal Years ending December 31, Total Amortization (unaudited) 2016 (six months remaining) $ 27 2017 54 2018 54 2019 32 2020 9 Later years 40 $ 216 |
Summary Of Activity Related To Warranty Liability Included In Other Current Liabilities | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (unaudited) (unaudited) Beginning balance $ 555 $ 403 $ 599 $ 663 Warranty accruals 105 276 108 289 Warranty usage (120) (114) (167) (387) Ending balance $ 540 $ 565 $ 540 $ 565 |
Schedule Of Earnings Per Share, Basic And Diluted | Three Months Ended Six Months Ended June 30 June 30 (unaudited) (unaudited) 2016 2015 2016 2015 Net Income $ (2,164) $ (66) $ (2,150) $ 254 Income allocated to participating securities — — — 59 Income allocated to common shares $ (2,164) $ (66) $ (2,150) $ 195 Weighted average common shares outstanding - Basic 29,388,104 25,142,371 29,388,104 25,091,875 Dilutive effect of stock options — — — 667,903 Weighted average common shares outstanding - Diluted 29,388,104 25,142,371 29,388,104 25,759,778 Net income per share: Basic $ (0.07) $ - $ (0.07) $ 0.01 Diluted $ (0.07) $ - $ (0.07) $ 0.01 |
Schedule Of Potentially Dilutive Common Stock Equivalents | For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 (unaudited) (unaudited) Options 3,966,089 4,154,689 3,966,089 3,306,545 Warrants 2,600,000 7,545,333 2,600,000 — Total potentially dilutive common stock equivalents 6,566,089 11,700,022 6,566,089 3,306,545 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounts Receivable, Net [Abstract] | |
Schedule Of Accounts Receivable | June 30, 2016 December 31, 2015 (unaudited) Accounts receivable $ 3,582 $ 3,635 Less allowance for doubtful accounts (127) (127) Accounts receivable, net $ 3,455 $ 3,508 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventories, Net [Abstract] | |
Schedule Of Components of Inventories | June 30, 2016 December 31, 2015 (unaudited) Raw materials $ 3,286 $ 2,595 Work in process 1,514 1,369 Finished goods 1,850 1,486 Total inventories 6,650 5,450 Less inventory reserve (1,378) (1,549) Total inventories, net $ 5,272 $ 3,901 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stock-Based Compensation [Abstract] | |
Schedule Of Allocation Of Non-Cash Stock-Based Compensation | For the Three Months Ended For the Six Months Ended June 30, June 30, 2016 2015 2016 2015 (unaudited) (unaudited) Cost of revenues $ 3 $ 13 $ 10 $ 36 Research and development 5 26 33 62 Selling, general and administrative 85 60 217 218 Total stock compensation expense $ 93 $ 99 $ 260 $ 316 |
Schedule Of Key Assumptions Of Fair Value Of Stock Options Granted | For the Six Months Ended June 30, 2016 2015 (unaudited) Dividend yield 0 % 0 % Risk free interest rates 0.71 - 1.01 % 0.84 – 1.56 % Expected volatility 51.3 to 53.5 % 57.8 to 63.9 % Expected term (in years) 3.5 to 5.0 3.5 to 5.0 |
Schedule Of Option Activity | Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2015 4,218,139 $ 3.75 Options granted 295,065 1.74 Options exercised — Options forfeited (49,980) 2.02 Options cancelled or expired (497,135) 7.66 Outstanding at June 30, 2016 3,966,089 $ 3.13 3.76 $ 607,968 Vested or expected to vest at June 30, 2016 3,961,104 $ 3.13 3.76 $ 607,888 Exercisable at June 30, 2016 3,716,914 $ 3.14 3.73 $ 603,968 (1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options . |
Concentrations (Tables)
Concentrations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Concentrations [Abstract] | |
Schedule Of Concentrations | The following is a schedule of revenues by geographic location (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (unaudited) (unaudited) North and South America $ 2,890 $ 4,999 $ 7,173 $ 8,723 Europe, Middle East, and Africa 2,149 1,430 4,336 3,591 Asia Pacific 494 605 1,025 709 Total $ 5,533 $ 7,034 $ 12,534 $ 13,023 The following table represents the domestic and international revenues as a percentage of total net revenues: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (unaudited) (unaudited) Domestic 52 % 71 % 57 % 66 % International 48 % 29 % 43 % 34 % |
Summary Of Significant Accoun21
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |||
Operating lease commitments | $ 3,200 | ||
Total intangible amortization expense | $ 13 | $ 27 | |
Standard product warranty period | 1 year |
Summary Of Significant Accoun22
Summary Of Significant Accounting Policies (Schedule Of Estimated Future Amortization Expense) (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Summary Of Significant Accounting Policies [Abstract] | |
2016 (six months remaining) | $ 27 |
2,017 | 54 |
2,018 | 54 |
2,019 | 32 |
2,020 | 9 |
Later years | 40 |
Total | $ 216 |
Summary Of Significant Accoun23
Summary Of Significant Accounting Policies (Summary Of Activity Related To Warranty Liability Included In Other Current Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | ||||
Beginning balance | $ 555 | $ 403 | $ 599 | $ 663 |
Warranty accruals | 105 | 276 | 108 | 289 |
Warranty usage | (120) | (114) | (167) | (387) |
Ending balance | $ 540 | $ 565 | $ 540 | $ 565 |
Summary Of Significant Accoun24
Summary Of Significant Accounting Policies (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | ||||
Net income | $ (2,164) | $ (66) | $ (2,150) | $ 254 |
Less net income allocated to participating securities | 59 | |||
Net income (loss) allocated to common shares | $ (2,164) | $ (66) | $ (2,150) | $ 195 |
Weighted average common shares outstanding - Basic | 29,388,104 | 25,142,371 | 29,388,104 | 25,091,875 |
Dilutive effect of stock options | 667,903 | |||
Weighted average common shares outstanding - Diluted | 29,388,104 | 25,142,371 | 29,388,104 | 25,759,778 |
Net income per share: Basic | $ (0.07) | $ (0.07) | $ 0.01 | |
Net income per share: Diluted | $ (0.07) | $ (0.07) | $ 0.01 |
Summary Of Significant Accoun25
Summary Of Significant Accounting Policies (Schedule Of Potentially Dilutive Common Stock Equivalents) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive common stock equivalents | 6,566,089 | 11,700,022 | 6,566,089 | 3,306,545 |
Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive common stock equivalents | 3,966,089 | 4,154,689 | 3,966,089 | 3,306,545 |
Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive common stock equivalents | 2,600,000 | 7,545,333 | 2,600,000 |
Accounts Receivable, Net (Sched
Accounts Receivable, Net (Schedule Of Accounts Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts Receivable, Net [Abstract] | ||
Accounts receivable | $ 3,582 | $ 3,635 |
Less allowance for doubtful accounts | (127) | (127) |
Accounts receivable, net | $ 3,455 | $ 3,508 |
Inventories, Net (Schedule Of C
Inventories, Net (Schedule Of Components of Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Inventories, Net [Abstract] | ||
Raw materials | $ 3,286 | $ 2,595 |
Work in process | 1,514 | 1,369 |
Finished goods | 1,850 | 1,486 |
Total inventories | 6,650 | 5,450 |
Less inventory reserve | (1,378) | (1,549) |
Total inventories, net | $ 5,272 | $ 3,901 |
Line Of Credit (Details)
Line Of Credit (Details) - Line of Credit [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 3,000,000 | $ 3,000,000 | ||
Eligible accounts receivable percentage | 75.00% | |||
Borrowing capacity description | the Company may borrow up to a maximum of $3 million based on a borrowing base equivalent of 75% of eligible accounts receivable. | |||
Early termination fee | $ 6,000 | |||
Amount drawn | $ 0 | $ 0 | $ 0 | $ 0 |
Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate | 7.25% | 7.25% | ||
Monthly interest payment | $ 1,000 | |||
Prime Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 4.00% |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Stock-Based Compensation [Abstract] | |||
Unrecognized stock option compensation, net of forfeitures | $ 0.2 | $ 0.2 | |
Unrecognized compensation cost, weighted average period of recognition | 1 year 6 months | ||
Dividend yield | 0.00% | 0.00% | |
Options exercised | 0 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Allocation Of Non-Cash Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | $ 93 | $ 99 | $ 260 | $ 316 |
Cost of Revenues [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | 3 | 13 | 10 | 36 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | 5 | 26 | 33 | 62 |
Selling, General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | $ 85 | $ 60 | $ 217 | $ 218 |
Stock-Based Compensation (Sch31
Stock-Based Compensation (Schedule Of Key Assumptions Of Fair Value Of Stock Options Granted) (Details) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Risk free interest rates, minimum | 0.71% | 0.84% |
Risk free interest rates, maximum | 1.01% | 1.56% |
Expected volatility, minimum | 51.30% | 57.80% |
Expected volatility, maximum | 53.50% | 63.90% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 3 years 6 months | 3 years 6 months |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 years | 5 years |
Stock-Based Compensation (Sch32
Stock-Based Compensation (Schedule Of Option Activity) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | |||
Stock-Based Compensation [Abstract] | ||||
Outstanding, Number of Shares | shares | 4,218,139 | |||
Options granted, Number of Shares | shares | 295,065 | |||
Options exercised, Number of Shares | shares | 0 | |||
Options forfeited, Number of Shares | shares | (49,980) | |||
Options cancelled or expired, Number of Shares | shares | (497,135) | |||
Outstanding, Number of Shares | shares | 3,966,089 | 3,966,089 | ||
Vested or expected to vest, Number of Shares | shares | 3,961,104 | [1] | 3,961,104 | [1] |
Exercisable, Number of Shares | shares | 3,716,914 | 3,716,914 | ||
Outstanding, Weighted Average Exercise Price | $ / shares | $ 3.75 | |||
Options granted, Weighted Average Exercise Price | $ / shares | 1.74 | |||
Options exercised, Weighted Average Exercise Price | $ / shares | ||||
Options forfeited, Weighted Average Exercise Price | $ / shares | 2.02 | |||
Options cancelled or expired, Weighted Average Exercise Price | $ / shares | 7.66 | |||
Outstanding, Weighted Average Exercise Price | $ / shares | $ 3.13 | 3.13 | ||
Vested or expected to vest, Weighted Average Exercise Price | $ / shares | 3.13 | [1] | 3.13 | [1] |
Exercisable, Weighted Average Exercise Price | $ / shares | $ 3.14 | $ 3.14 | ||
Outstanding, Weighted Average Remaining Contractual Life (In Years) | 3 years 9 months 4 days | |||
Vested or expected to vest, Weighted Average Remaining Contractual Life (In Years) | 3 years 9 months 4 days | [1] | ||
Exercisable, Weighted Average Remaining Contractual Life (In Years) | 3 years 8 months 23 days | |||
Outstanding, Aggregate Intrinsic Value | $ | $ 607,968 | $ 607,968 | ||
Vested or expected to vest, Aggregate Intrinsic Value | $ | 607,888 | [1] | 607,888 | [1] |
Exercisable, Aggregate Intrinsic Value | $ | $ 603,968 | $ 603,968 | ||
[1] | The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||
Options exercised | 0 | ||
Number of warrants exercised | 0 | 0 | |
Warrants outstanding | 2,600,000 | 2,600,000 | |
Warrants exercise price per share | $ 2.05 | $ 2.05 | |
Warrant expiration | Jun. 23, 2021 | ||
Series B Convertible Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares issued | 5,659 | 5,659 | 5,659 |
Preferred stock, shares outstanding | 5,659 | 5,659 | 5,659 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | |
Income Taxes [Abstract] | |||
Effective tax rate | 0.00% | 0.00% | |
U.S. Federal income tax benefit at federal statutory rate | 34.00% | 34.00% | |
Operating loss carry forward amounts substantially expire | Dec. 31, 2037 |
Commitments And Contingencies (
Commitments And Contingencies (Details) | Jun. 01, 2016USD ($) | May 05, 2015USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2014customer | Jun. 30, 2016USD ($)shares | Dec. 31, 2014customer | Aug. 11, 2015USD ($) |
Commitments And Contingencies [Abstract] | |||||||
Equipment purchases commitments | $ 800,000 | ||||||
Options granted, Number of Shares | shares | 295,065 | ||||||
Stock options, value | $ 200,000 | $ 200,000 | |||||
Shipments stopped, number of customers | customer | 3 | ||||||
Shipments resumed, number of customers | customer | 2 | ||||||
Loss contingency, damages sought by plaintiff | $ 389,000 | ||||||
Counter complaint, damages sought | $ 3,500,000 | ||||||
Settlement consideration | $ 227,000 | ||||||
Additional settlement expense | $ 0 |
Concentrations (Narrative) (Det
Concentrations (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016customer | Jun. 30, 2015customer | Jun. 30, 2016customeritem | Jun. 30, 2015customer | |
Cost of Goods, Product Line [Member] | Supplier Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of suppliers | item | 2 | |||
Revenues [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of customers | 2 | 3 | 1 | 2 |
Revenues [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration of risk percentage | 14.00% | 15.00% | 10.00% | 14.00% |
Revenues [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration of risk percentage | 11.00% | 14.00% | 10.00% | |
Revenues [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration of risk percentage | 12.00% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of customers | 1 | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration of risk percentage | 10.00% |
Concentrations (Schedule Of Con
Concentrations (Schedule Of Concentrations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 5,533 | $ 7,034 | $ 12,534 | $ 13,023 |
Geographic Concentration Risk [Member] | Revenues [Member] | North And South America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 2,890 | 4,999 | 7,173 | 8,723 |
Geographic Concentration Risk [Member] | Revenues [Member] | Europe, Middle East, And Africa [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 2,149 | 1,430 | 4,336 | 3,591 |
Geographic Concentration Risk [Member] | Revenues [Member] | Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 494 | $ 605 | $ 1,025 | $ 709 |
Geographic Concentration Risk [Member] | Revenues [Member] | Domestic [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration of risk percentage | 52.00% | 71.00% | 57.00% | 66.00% |
Geographic Concentration Risk [Member] | Revenues [Member] | International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration of risk percentage | 48.00% | 29.00% | 43.00% | 34.00% |