Koil Energy Solutions (KLNG) 10-Q 13 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 11, 2013
Document And Entity Information	'	'
Entity Registrant Name	'Deep Down, Inc.	'
Entity Central Index Key	'0001110607	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	15,263,744
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
ASSETS	'	'
Cash and cash equivalents	$5,944	$1,523
Accounts receivable, net of allowance of $1,222 and $1,211, respectively	7,024	7,140
Inventory	244	232
Costs and estimated earnings in excess of billings on uncompleted contracts	5,890	2,547
Prepaid expenses and other current assets	430	321
Total current assets	19,532	11,763
Property, plant and equipment, net	12,399	13,103
Investment in joint venture	485	984
Intangibles, net	121	126
Goodwill	4,916	4,916
Other assets	1,061	607
Total assets	38,514	31,499
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Accounts payable and accrued liabilities	3,290	4,289
Billings in excess of costs and estimated earnings on uncompleted contracts	566	753
Deferred revenues	76	44
Current portion of long-term debt	156	680
Total current liabilities	4,088	5,766
Long-term debt, net	1,918	2,936
Total liabilities	6,006	8,702
Commitments and contingencies (Note 9)	'	'
Stockholders' equity:	'	'
Preferred stock, $0.001 par value, 10,000 shares authorized, 0 shares issued and outstanding	'	'
Common stock, $0.001 par value, 24,500 shares authorized, 15,275 and 10,152 shares issued and outstanding, respectively	15	10
Additional paid-in capital	72,049	63,970
Accumulated deficit	-39,556	-41,183
Total stockholders' equity	32,508	22,797
Total liabilities and stockholders' equity	$38,514	$31,499

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
ASSETS	'	'
Accounts receivable allowance	$1,222	$1,211
Stockholders' equity:	'	'
Preferred stock par value	$0.00	$0.00
Preferred stock shares authorized	10,000	10,000
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Common stock par value	$0.00	$0.00
Common stock shares authorized	24,500	24,500
Common stock issued	15,275	10,152
Common stock outstanding	15,275	10,152

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]	'	'	'	'
Revenues	$8,639	$9,391	$23,953	$22,168
Cost of sales:	'	'	'	'
Cost of sales	5,806	5,894	14,735	13,230
Depreciation expense	358	334	1,057	969
Total cost of sales	6,164	6,228	15,792	14,199
Gross profit	2,475	3,163	8,161	7,969
Operating expenses:	'	'	'	'
Selling, general and administrative	2,082	1,966	6,311	5,948
Depreciation and amortization	35	140	100	432
Total operating expenses	2,117	2,106	6,411	6,380
Operating income	358	1,057	1,750	1,589
Other income (expense):	'	'	'	'
Interest expense, net	-52	-34	-143	-120
Equity in net (loss) income of joint venture	0	-39	1	-179
Other, net	13	60	27	112
Total other income (expense)	-39	-13	-115	-187
Income before income taxes	319	1,044	1,635	1,402
Income tax expense	62	-74	-8	-93
Net income	$381	$970	$1,627	$1,309
Net income per share:	'	'	'	'
Basic	$0.03	$0.10	$0.15	$0.13
Diluted	$0.03	$0.10	$0.15	$0.13
Weighted-average shares outstanding:	'	'	'	'
Basic	11,691	10,161	10,728	10,196
Diluted	11,739	10,161	10,729	10,196

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net income	$1,627	$1,309
Adjustments to reconcile net income to net cash (used in) provided by operating activities:	'	'
Equity in net (income) loss of joint venture	-1	179
Share-based compensation	471	519
Forgiveness of debt	0	-10
Bad debt (recovery) provision	-19	92
Depreciation and amortization	1,157	1,401
Gain on disposal of property, plant and equipment	-21	-112
Changes in assets and liabilities:	'	'
Accounts receivable	101	-1,297
Costs and estimated earnings in excess of billings on uncompleted contracts	-3,343	-1,642
Prepaid expenses and other current assets	-109	-60
Other assets	19	103
Inventory	-12	-3
Accounts payable and accrued liabilities	-999	1,587
Deferred revenues	32	-260
Billings in excess of costs and estimated earnings on uncompleted contracts	-187	-1,499
Net cash (used in) provided by operating activities	-1,284	307
Cash flows from investing activities:	'	'
Purchases of property, plant and equipment	-451	-1,520
Proceeds from sale of property, plant and equipment	33	150
Cash paid for deposits	-446	0
Cash paid for patents	0	-43
Cash paid for exclusive product rights	0	-125
Repayments on notes receivable	9	50
Distribution from joint venture	500	0
Net cash provided by (used in) investing activities	-355	-1,488
Cash flows from financing activities:	'	'
Proceeds from issuance of common stock, net of issuance costs	7,647	0
Cash paid for purchase of our common stock	0	-48
Proceeds from bank term loans	1,020	0
Cash paid for deferred financing costs	-45	0
Repayments of long-term debt	-2,562	-1,552
Net cash provided by (used in) financing activities	6,060	-1,600
Change in cash and equivalents	4,421	-2,781
Cash and cash equivalents, beginning of period	1,523	4,979
Cash and cash equivalents, end of period	5,944	2,198
Supplemental schedule of significant noncash transactions:	'	'
Property, plant and equipment acquired via capital lease	0	1,200
Shares of common stock surrendered by employees related to payroll taxes on vested restricted stock awards	$34	$41

1_BASIS_OF_PRESENTATION

1. BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
BASIS OF PRESENTATION	'
	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements of Deep Down, Inc. and its wholly-owned subsidiaries (“Deep Down,” “we,” “us” or the “Company”) were prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC” or the “Commission”) pertaining to interim financial information and instructions to Form 10-Q.  As permitted under those rules, certain footnotes or other financial information that are normally required by United States generally accepted accounting principles (“US GAAP”) can be condensed or omitted.  Therefore, these statements should be read in conjunction with the audited consolidated financial statements, and footnotes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2012, filed on March 28, 2013 with the Commission.
	Preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosed amounts of contingent assets and liabilities and the reported amounts of revenues and expenses. If the underlying estimates and assumptions upon which the financial statements are based change in future periods, then the actual amounts may differ from those included in the accompanying condensed consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.
	Principles of Consolidation
	The unaudited condensed consolidated financial statements presented herein include the accounts of Deep Down, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated.
	Segments
	For the nine months ended September 30, 2013 and 2012, our operating segments, Deep Down Delaware and Mako, have been aggregated into a single reporting segment. In August 2012, we consolidated the operations of Mako in Morgan City, Louisiana into Deep Down Delaware in Channelview, Texas. While the operating segments have different product lines, they are very similar. They are both service-based operations revolving around our personnel’s expertise in the deepwater and ultra-deepwater industry, and any equipment is produced to a customer specified design and engineered using Deep Down personnel’s expertise, with installation and project management as part of our service offering to the customer. Additionally, the operating segments have similar customers and distribution methods, and their economic characteristics are similar with regard to their gross margin percentages. Our operations are located in the United States, although we occasionally generate sales to international customers.
	Recently Adopted Accounting Standards
	There were no recent accounting pronouncements that materially affected our Company.

2_BILLINGS_COSTS_AND_ESTIMATED

2. BILLINGS, COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS	9 Months Ended
	Sep. 30, 2013
Billings Costs And Estimated Earnings On Uncompleted Contracts	'
BILLINGS, COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS	'
	The components of billings, costs and estimated earnings on uncompleted contracts are summarized below:
		30-Sep-13			31-Dec-12
	Costs incurred on uncompleted contracts	$	14,680		$	9,915
	Estimated earnings on uncompleted contracts		5,915			4,714
			20,595			14,629
	Less: Billings to date on uncompleted contracts		(15,271	)		(12,835	)
		$	5,324		$	1,794
	Included in the accompanying consolidated balance sheets under the following captions:
	Costs and estimated earnings in excess of billings on uncompleted contracts	$	5,890		$	2,547
	Billings in excess of costs and estimated earnings on uncompleted contracts		(566	)		(753	)
		$	5,324		$	1,794
	The balances in costs in excess of billings and estimated earnings on uncompleted contracts at September 30, 2013 and December 31, 2012 consisted of earned but unbilled revenues related to large fixed-price projects.
	The balances in billings in excess of costs and estimated earnings on uncompleted contracts at September 30, 2013 and December 31, 2012 consisted of unearned milestone billings related to large fixed-price projects.

3_PROPERTY_PLANT_AND_EQUIPMENT

3. PROPERTY, PLANT AND EQUIPMENT	9 Months Ended
	Sep. 30, 2013
Property, Plant and Equipment [Abstract]	'
PROPERTY, PLANT AND EQUIPMENT	'
	The components of net property, plant and equipment are summarized below:
								Range of
		30-Sep-13			31-Dec-12			Asset Lives
	Land	$	1,582		$	1,582		-
	Buildings and improvements		1,571			1,555		7 - 36 years
	Leasehold improvements		221			221		2 - 5 years
	Equipment		14,439			14,251		2 - 30 years
	Furniture, computers and office equipment		1,292			1,248		2 - 8 years
	Construction in progress		658			487		-
	Total property, plant and equipment		19,763			19,344
	Less: Accumulated depreciation and amortization		(7,364	)		(6,241	)
	Property, plant and equipment, net	$	12,399		$	13,103

4_LONGTERM_DEBT

4. LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
LONG-TERM DEBT	'
	Long-term debt consisted of the following:
			30-Sep-13			31-Dec-12
	Secured credit agreement - Whitney		$	1,943		$	2,909
	Capital lease obligations			131			707
	Total long-term debt			2,074			3,616
	Less: Current portion of long-term debt			(156	)		(680	)
	Long-term debt, net of current portion		$	1,918		$	2,936
	Whitney Credit Agreement
	We originally entered into our credit agreement with Whitney in November 2008 to provide us with revolving and letter of credit facilities for our operations.  Our credit facility has been amended and/or restated five times, most recently on March 5, 2013. Under the Fifth Amendment, the Company and Whitney agreed:
		·	to increase the committed amount under the revolving credit facility (“Revolving Credit Facility”) to $5,000, and extend the maturity date of such Revolving Credit Facility to April 15, 2014;
		·	to increase the committed amount under the real estate term facility (“RE Term Facility”) to $2,000, extend the maturity date of such RE Term Facility to April 15, 2018, and the Company is obligated to make increasing monthly repayments of principal (along with accrued and unpaid interest thereon) starting at $8, beginning April 1, 2013;
		·	for Whitney to make a new single-advance term loan to Deep Down in the original principal amount of $250 (“Equipment Term Loan”) for the purpose of effecting a purchase of two tensioners (the “Equipment”). The Equipment Term Loan has an interest rate of 4.0 percent per annum and maturity date of April 15, 2018, and the Company is obligated to make increasing monthly repayments of principal (along with accrued and unpaid interest thereon) starting at $4, beginning April 1, 2013;
		·	to change the definition of EBITDA to allow a non-recurring expense in the amount of $117 for closing the operations of Mako and consolidating with Deep Down Delaware in the fiscal quarter ended December 31, 2012, and to allow a non-recurring charge of $2,156, for the write-off related to impairment of long-lived assets associated with consolidating the operations of Mako, also in the fiscal quarter ended December 31, 2012.
	As of the effective date of the Fifth Amendment, the outstanding principal balance of the RE Term Facility was $1,730. Whitney agreed to make a single advance to the Company in an amount equal to $270 (bringing the balance of the RE Term Facility as of the effective date of the Fifth Amendment to $2,000) to assist in effecting the purchase of the Equipment. As with Deep Down’s other outstanding indebtedness under the credit agreement, outstanding amounts of the Equipment Term Loan are secured by a security interest in all of Deep Down’s assets. The interest rate on all of the loans remains the same at 4.0 percent per annum.
	As of September 30, 2013, the outstanding indebtedness to Whitney under the Fifth Amendment was $1,943 under the RE Term Facility.
	Our credit agreement with Whitney obligates us to comply with the following financial covenants:
		·	Leverage Ratio - The ratio of total debt to total consolidated EBITDA for the four most recent quarterly periods must be less than 3.0 to 1.0; actual Leverage Ratio as of September 30, 2013: 0.90 to 1.0.
		·	Fixed Charge Coverage Ratio - The ratio of total consolidated EBITDA for the four most recent quarterly periods to total consolidated net interest expense plus principal payments for the four most recent quarterly periods on total debt must be greater than 1.5 to 1.0; actual Fixed Charge Coverage Ratio as of September 30, 2013: 2.09 to 1.0.
		·	Tangible Net Worth - Our consolidated net worth, after deducting other assets as are properly classified as “intangible assets,” plus 50 percent of net income (if positive), after provision for income taxes, for each whole or partial fiscal year completed after June 30, 2011, must be in excess of $13,000; actual Tangible Net Worth as of September 30, 2013: $27,471.
		·	Moreover, we continue to have obligations for other covenants, including, among others, limitations on issuance of common stock, liens, transactions with affiliates, additional indebtedness and permitted investments.
	As of September 30, 2013, we were in compliance with all of these financial covenants.

5_SHAREBASED_COMPENSATION

5. SHARE-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
SHARE-BASED COMPENSATION	'
	We have a share-based compensation plan, the “2003 Directors, Officers and Consultants Stock Option, Stock Warrant and Stock Award Plan” (the “Plan”). Awards of common stock and options to purchase common stock granted under the Plan have vesting periods of three years and options are exercisable for two years once fully vested. Some awards of stock have performance criteria as an additional condition of vesting. Share-based compensation expense related to awards is based on the fair value at the date of grant, and is recognized over the vesting periods, net of estimated forfeitures. The value of performance-based awards is recognized as expense only when it is considered probable that the performance criteria will be met. Under the Plan, the total number of options permitted is 15 percent of issued and outstanding common shares.
	Summary of Shares of Restricted Stock
	During the nine months ended September 30, 2013 and 2012, we recognized a total of $347 and $203, respectively, of share-based compensation expense related to restricted stock awards, which is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. The unamortized portion of the estimated fair value of restricted stock awards was $1,092 at September 30, 2013.
	Summary of Stock Options
	For the nine months ended September 30, 2013 and 2012, we recognized a total of $124 and $316, respectively, of share-based compensation expense related to outstanding stock option awards, which is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. The unamortized portion of the estimated fair value of non-vested stock options was $70 at September 30, 2013.

6_INCOME_TAXES

6. INCOME TAXES	9 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
INCOME TAXES	'
	Income tax expense during interim periods is based on applying the estimated annual effective income tax rate to interim period operations. The estimated annual effective income tax rate may vary from the statutory rate due to the impact of permanent items relative to our pre-tax income, as well as by any valuation allowance recorded.  We employ an asset and liability approach that results in the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial basis and the tax basis of those assets and liabilities. A valuation allowance is established when it is more likely than not that some of the deferred tax assets will not be realized.  Although our future projections indicate that we may be able to realize some of these deferred tax assets, due to the degree of uncertainty of these projections, at September 30, 2013 management has recorded a full deferred tax asset valuation allowance.

7_COMMITMENTS_AND_CONTINGENCIE

7. COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
COMMITMENTS AND CONTINGENCIES	'
	Litigation
	From time to time we are involved in legal proceedings arising in the normal course of business. As of the date of this Report, we were not involved in any material actual or pending legal proceedings.
	Operating Leases
	We lease certain offices, facilities, equipment and vehicles under non-cancellable operating and capital leases expiring at various dates through 2023.
	Letters of Credit
	Certain of our customers could require us to issue a standby letter of credit (“LC”) in the ordinary course of business to ensure performance under terms of a contract or as a form of product warranty. The beneficiary could demand payment from the issuing bank for the amount of the outstanding letter of credit. There were $809 and $827 in LC’s outstanding at September 30, 2013 and December 31, 2012, respectively.

8_EARNINGS_PER_COMMON_SHARE

8. EARNINGS PER COMMON SHARE	9 Months Ended
	Sep. 30, 2013
Net income per share:	'
EARNINGS PER COMMON SHARE	'
	Basic earnings per share (“EPS”) is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income (loss) by the weighted-average number of common shares and dilutive common stock equivalents (warrants, stock awards and stock options) outstanding during the period. Diluted EPS reflects the potential dilution that could occur if options to purchase common stock were exercised for shares of common stock.
	At September 30, 2013 and 2012, there were outstanding warrants convertible to 0 and 6,000 shares of common stock, respectively. At September 30, 2013 and 2012, there were outstanding stock options convertible to 945,000 and 1,045,000 shares of common stock, respectively.
	For the nine months ended September 30, 2013 and 2012, respectively, there were 902 and 0 options included in the computation of diluted earnings per share.

9_STOCKHOLDERS_EQUITY

9. STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2013
Stockholders' equity:	'
STOCKHOLDERS' EQUITY	'
	Common Stock
	The number of shares of common stock outstanding is as follows:
	Balance, December 31, 2012	10,151,529
	Shares cancelled and retired, April 15, 2013	(33,334	)
	Restricted shares granted, May 29, 2013	30,000
	Restricted shares granted, June 5, 2013	700,000
	Shares surrendered for payroll taxes and retired, June 17, 2013	(16,725	)
	Shares issued in private placement, September 10, 2013	4,085,111
	Shares issued in private placement, September 26, 2013	358,500
	Balance, September 30, 2013	15,275,081

1_BASIS_OF_PRESENTATION_Polici

1. BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Basis of Presentation	'
	The accompanying unaudited condensed consolidated financial statements of Deep Down, Inc. and its wholly-owned subsidiaries (“Deep Down,” “we,” “us” or the “Company”) were prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC” or the “Commission”) pertaining to interim financial information and instructions to Form 10-Q.  As permitted under those rules, certain footnotes or other financial information that are normally required by United States generally accepted accounting principles (“US GAAP”) can be condensed or omitted.  Therefore, these statements should be read in conjunction with the audited consolidated financial statements, and footnotes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2012, filed on March 28, 2013 with the Commission.
	Preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosed amounts of contingent assets and liabilities and the reported amounts of revenues and expenses. If the underlying estimates and assumptions upon which the financial statements are based change in future periods, then the actual amounts may differ from those included in the accompanying condensed consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.
Principles of Consolidation	'
	The unaudited condensed consolidated financial statements presented herein include the accounts of Deep Down, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated.
Segments	'
	For the nine months ended September 30, 2013 and 2012, our operating segments, Deep Down Delaware and Mako, have been aggregated into a single reporting segment. In August 2012, we consolidated the operations of Mako in Morgan City, Louisiana into Deep Down Delaware in Channelview, Texas. While the operating segments have different product lines, they are very similar. They are both service-based operations revolving around our personnel’s expertise in the deepwater and ultra-deepwater industry, and any equipment is produced to a customer specified design and engineered using Deep Down personnel’s expertise, with installation and project management as part of our service offering to the customer. Additionally, the operating segments have similar customers and distribution methods, and their economic characteristics are similar with regard to their gross margin percentages. Our operations are located in the United States, although we occasionally generate sales to international customers.
Recently Adopted Accounting Standards	'
	There were no recent accounting pronouncements that materially affected our Company.

2_BILLINGS_COSTS_AND_ESTIMATED1

2. BILLINGS, COSTS AND ESTIMATED EARNINGS (Tables)	9 Months Ended
	Sep. 30, 2013
Billings Costs And Estimated Earnings On Uncompleted Contracts	'
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS	'
	The components of billings, costs and estimated earnings on uncompleted contracts are summarized below:
		30-Sep-13			31-Dec-12
	Costs incurred on uncompleted contracts	$	14,680		$	9,915
	Estimated earnings on uncompleted contracts		5,915			4,714
			20,595			14,629
	Less: Billings to date on uncompleted contracts		(15,271	)		(12,835	)
		$	5,324		$	1,794
	Included in the accompanying consolidated balance sheets under the following captions:
	Costs and estimated earnings in excess of billings on uncompleted contracts	$	5,890		$	2,547
	Billings in excess of costs and estimated earnings on uncompleted contracts		(566	)		(753	)
		$	5,324		$	1,794

3_PROPERTY_PLANT_AND_EQUIPMENT1

3. PROPERTY, PLANT AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2013
Property, Plant and Equipment [Abstract]	'
Net Property, plant and equipment	'
	The components of net property, plant and equipment are summarized below:
								Range of
		30-Sep-13			31-Dec-12			Asset Lives
	Land	$	1,582		$	1,582		-
	Buildings and improvements		1,571			1,555		7 - 36 years
	Leasehold improvements		221			221		2 - 5 years
	Equipment		14,439			14,251		2 - 30 years
	Furniture, computers and office equipment		1,292			1,248		2 - 8 years
	Construction in progress		658			487		-
	Total property, plant and equipment		19,763			19,344
	Less: Accumulated depreciation and amortization		(7,364	)		(6,241	)
	Property, plant and equipment, net	$	12,399		$	13,103

4_LONGTERM_DEBT_Tables

4. LONG-TERM DEBT (Tables)	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Long-term Debt	'
	Long-term debt consisted of the following:
		30-Sep-13			31-Dec-12
	Secured credit agreement - Whitney	$	1,943		$	2,909
	Capital lease obligations		131			707
	Total long-term debt		2,074			3,616
	Less: Current portion of long-term debt		(156	)		(680	)
	Long-term debt, net of current portion	$	1,918		$	2,936

9_STOCKHOLDERS_EQUITY_Tables

9. STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2013
Stockholders' equity:	'
Number of shares of common stock outstanding	'
	The number of shares of common stock outstanding is as follows:
	Balance, December 31, 2012	10,151,529
	Shares cancelled and retired, April 15, 2013	(33,334	)
	Restricted shares granted, May 29, 2013	30,000
	Restricted shares granted, June 5, 2013	700,000
	Shares surrendered for payroll taxes and retired, June 17, 2013	(16,725	)
	Shares issued in Private Placement, September 10, 2013	4,085,111
	Shares issued in Private Placement, September 26, 2013	358,500
	Balance, September 30, 2013	15,275,081

2_BILLINGS_COSTS_AND_ESTIMATED2

2. BILLINGS, COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Billings In Excess Of Costs And Estimated Earnings On Uncompleted Contracts And Deferred Revenues	'	'
Costs incurred on uncompleted contracts	$14,680	$9,915
Estimated earnings on uncompleted contracts	5,915	4,714
Gross costs and estimated earnings	20,595	14,629
Less: Billings to date on uncompleted contracts	-15,271	-12,835
Costs incurred plus estimated earning less billings on uncompleted contracts	5,324	1,794
Included in the accompanying condensed consolidated balance sheets under the following captions:	'	'
Costs and estimated earnings in excess of billings on uncompleted contracts	-5,890	2,547
Billings in excess of costs and estimated earnings on uncompleted contracts	-566	-753
Total costs and estimated earnings and billings in excess of cost on uncompleted contracts	$5,324	$1,794

3_PROPERTY_PLANT_AND_EQUIPMENT2

3. PROPERTY, PLANT AND EQUIPMENT (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Total property, plant and equipment	$19,763	$19,344
Less: Accumulated depreciation and amortization	-7,364	-6,241
Property, plant and equipment,Net	12,399	13,103
Land	'	'
Total property, plant and equipment	1,582	1,582
Building and improvements	'	'
Total property, plant and equipment	1,571	1,555
Range of Asset lives	'7-36 years	'
Leasehold Improvements	'	'
Total property, plant and equipment	221	221
Range of Asset lives	'2-5 years	'
Equipment	'	'
Total property, plant and equipment	14,439	14,251
Range of Asset lives	'2-30 years	'
Furniture, computers and office equipment	'	'
Total property, plant and equipment	1,292	1,248
Range of Asset lives	'2-8 years	'
Construction in Progress	'	'
Total property, plant and equipment	$658	$487

6_LONGTERM_DEBT_Details

6. LONG-TERM DEBT (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Debt Disclosure [Abstract]	'	'
Secured credit agreement - Whitney Bank	$1,943	$2,909
Capital lease obligations	131	707
Total long-term debt	2,074	3,616
Less: Current portion of long-term debt	-156	-680
Long-term debt, net of current portion	$1,918	$2,936

7_SHAREBASED_COMPENSATION_Deta

7. SHARE-BASED COMPENSATION (Details Narrative) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Restricted Stock Awards	'	'
Share-based compensation expense	$347	$203
Unamortized portion of the estimated fair value of non-vested stock options	1,092	'
Stock Options	'	'
Share-based compensation expense	124	316
Unamortized portion of the estimated fair value of non-vested stock options	$70	'

9_COMMITMENTS_AND_CONTINGENCIE

9. COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Commitments and Contingencies Disclosure [Abstract]	'	'
Letters Of Credit Outstanding	$809	$827

10_EARNINGS_PER_COMMON_SHARE_D

10. EARNINGS PER COMMON SHARE (Details Narrative)	Sep. 30, 2013	Sep. 30, 2012
Warrants	'	'
Outstanding shares available to convert to common stock	0	6,000
Stock Options	'	'
Outstanding shares available to convert to common stock	945,000	1,045,000

11_STOCKHOLDERS_EQUITY_Details

11. STOCKHOLDERS' EQUITY (Details) (Common Stock [Member])	9 Months Ended
	Sep. 30, 2013
Common Stock [Member]	'
Balance, December 31, 2012	10,151,529
Shares cancelled and retired, April 15, 2013	-33,334
Restricted shares granted, May 29, 2013	30,000
Restricted shares granted, June 5, 2013	700,000
Shares surrendered for payroll taxes and retired, June 17, 2013	-16,725
Shares issued in Private Placement, September 10, 2013	4,085,111
Shares issued in Private Placement, September 26, 2013	358,500
Balance, September 30, 2013	15,275,081