Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 04, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | RBCN | |
Entity Registrant Name | RUBICON TECHNOLOGY, INC. | |
Entity Central Index Key | 1,410,172 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,828,821 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 16,370 | $ 21,216 |
Restricted cash | 176 | 170 |
Short-term investments | 8,895 | |
Accounts receivable, net | 1,978 | 1,738 |
Inventories | 10,644 | 21,333 |
Other inventory supplies | 5,124 | 5,717 |
Prepaid expenses and other current assets | 356 | 1,188 |
Assets held for sale | 1,329 | |
Total current assets | 35,977 | 60,257 |
Property and equipment, net | 41,119 | 57,569 |
Other assets | 624 | 1,416 |
Total assets | 77,720 | 119,242 |
Liabilities and stockholders' equity | ||
Accounts payable | 2,263 | 3,256 |
Accrued payroll | 1,421 | 164 |
Accrued and other current liabilities | 495 | 1,328 |
Corporate income and franchise taxes | 166 | 207 |
Accrued real estate taxes | 185 | 238 |
Short-term loan payable | 1,500 | |
Advance payments | 460 | 9 |
Total current liabilities | 4,990 | 6,702 |
Deferred tax liability | 554 | |
Total liabilities | 4,990 | 7,256 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $0.001 par value, 5,000,000 undesignated shares authorized, no shares issued or outstanding | ||
Common stock, $0.001 par value, 40,000,000 shares authorized and 28,604,376 and 28,007,811 shares issued; 26,829,532 and 26,232,967 shares outstanding | 29 | 28 |
Additional paid-in capital | 374,642 | 373,565 |
Treasury stock, at cost, 1,774,844 shares | (12,148) | (12,148) |
Accumulated other comprehensive loss | (26) | (33) |
Accumulated deficit | (289,767) | (249,426) |
Total stockholders' equity | 72,730 | 111,986 |
Total liabilities and stockholders' equity | $ 77,720 | $ 119,242 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 28,604,376 | 28,007,811 |
Common stock, shares outstanding | 26,829,532 | 26,232,967 |
Treasury stock, shares | 1,774,844 | 1,774,844 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 7,086 | $ 5,346 | $ 14,908 | $ 21,362 |
Cost of goods sold | 18,732 | 9,237 | 36,024 | 35,517 |
Gross loss | (11,646) | (3,891) | (21,116) | (14,155) |
Operating expenses: | ||||
General and administrative | 1,709 | 3,037 | 6,171 | 7,293 |
Sales and marketing | 395 | 287 | 1,147 | 979 |
Research and development | 803 | 558 | 2,034 | 1,594 |
Loss on disposal of assets | 126 | 22 | ||
Long-lived asset impairment charges | 10,216 | 39,597 | 10,481 | 39,597 |
Loss from operations | (24,769) | (47,370) | (41,075) | (63,640) |
Other income (expense): | ||||
Interest income | 9 | 15 | 52 | 52 |
Interest expense | (28) | (29) | (98) | (76) |
Realized (loss) gain on foreign currency translation | (229) | (1,475) | 237 | (2,036) |
Total other income (expense) | (248) | (1,489) | 191 | (2,060) |
Loss before income taxes | (25,017) | (48,859) | (40,884) | (65,700) |
Income tax benefit | 216 | 663 | 541 | 576 |
Net loss | $ (24,801) | $ (48,196) | $ (40,343) | $ (65,124) |
Net loss per common share | ||||
Basic | $ (0.94) | $ (1.84) | $ (1.53) | $ (2.49) |
Diluted | $ (0.94) | $ (1.84) | $ (1.53) | $ (2.49) |
Weighted average common shares outstanding used in computing net loss per common share | 26,374,516 | 26,160,308 | 26,374,516 | 26,143,948 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (24,801) | $ (48,196) | $ (40,343) | $ (65,124) |
Other comprehensive income (loss): | ||||
Unrealized gain on investments, net of tax | 5 | 5 | 15 | |
Unrealized gain (loss) on currency translation | (2) | 2 | 2 | 1 |
Other comprehensive income (loss) | (2) | 7 | 7 | 16 |
Comprehensive loss | $ (24,803) | $ (48,189) | $ (40,336) | $ (65,108) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (40,343) | $ (65,124) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 4,919 | 9,780 |
Net loss on disposal of assets | 126 | 22 |
Long-lived asset impairment charges | 10,481 | 39,597 |
Stock-based compensation | 1,081 | 939 |
Deferred taxes | (554) | (584) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (240) | 5,047 |
Inventories | 5,067 | (3,087) |
Inventory reserves | 5,964 | 910 |
Other inventory supplies | 638 | 1,146 |
Prepaid expenses and other assets | 1,638 | 304 |
Accounts payable | (1,045) | (910) |
Accrued payroll | 1,265 | (296) |
Corporate income and franchise taxes | (42) | (70) |
Advanced payments | 457 | 27 |
Accrued and other current liabilities | (891) | 394 |
Net cash used in operating activities | (11,479) | (11,905) |
Cash flows from investing activities | ||
Purchases of property and equipment | (595) | (801) |
Proceeds from disposal of assets | 190 | |
Purchases of investments | (24) | (3,099) |
Proceeds from sale of investments | 8,924 | 11,000 |
Net cash provided by investing activities | 8,495 | 7,100 |
Cash flows from financing activities | ||
Net change in short-term borrowings | (1,500) | |
Proceeds from exercise of options | 4 | |
Taxes paid related to net share settlement of equity awards | (1) | |
Cash used to settle net equity awards | (8) | |
Restricted cash | (6) | 16 |
Net cash (used in) provided by financing activities | (1,507) | 12 |
Net effect of currency translation | (355) | 1,868 |
Net decrease in cash and cash equivalents | (4,846) | (2,925) |
Cash and cash equivalents, beginning of period | 21,216 | 24,353 |
Cash and cash equivalents, end of period | $ 16,370 | $ 21,428 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION Interim financial data The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete consolidated financial statements and should be read in conjunction with Rubicon Technology, Inc.’s (the “Company”) annual report filed on Form 10-K, as amended, for the fiscal year ended December 31, 2015. In the opinion of management, all adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for a fair presentation of the results of operations have been included. Consolidated operating results for the three and nine months periods ended September 30, 2016 are not necessarily indicative of results that may be expected for the year ending December 31, 2016. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Rubicon Worldwide LLC, Rubicon Sapphire Technology (Malaysia) SDN BHD, Rubicon Technology Hong Kong Limited and Rubicon Technology Korea Yuhan Hosea. All intercompany transactions and balances have been eliminated in consolidation. Foreign currency translation and transactions Rubicon Worldwide LLC, Rubicon Technology Hong Kong Limited and Rubicon Technology Korea Yuhan Hosea’s assets and liabilities are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates and capital accounts at historical exchange rates. The results of operations are translated into U.S. dollars at the average exchange rates during the respective period. Translation adjustments resulting from fluctuations in exchange rates for Rubicon Worldwide LLC, Rubicon Technology Hong Kong Limited and Rubicon Technology Korea Yuhan Hosea are recorded as a separate component of accumulated other comprehensive income (loss) within stockholders’ equity. The Company has determined that the functional currency of Rubicon Sapphire Technology (Malaysia) SDN BHD is the U.S. dollar. Rubicon Sapphire Technology (Malaysia) SDN BHD’s assets and liabilities are translated into U.S. dollars using the remeasurement method. Non-monetary assets are translated at historical exchange rates and monetary assets are translated at exchange rates existing at the respective balance sheet dates. Translation adjustments for Rubicon Sapphire Technology (Malaysia) SDN BHD are included in determining net income (loss) for the period. The results of operations are translated into U.S. dollars at the average exchange rates during the period. The Company records these gains and losses in other income (expense). Foreign currency transaction gains and losses are generated from the effects of exchange rate changes on transactions denominated in a currency other than the functional currency of the Company, which is the U.S. dollar. Gains and losses on foreign currency transactions are generally required to be recognized in the determination of net income (loss) for the period. The Company records these gains and losses in other income (expense). Investments The Company invests available cash primarily in investment grade commercial paper, certificates of deposit guaranteed by the Federal Deposit Insurance Corporation (the “FDIC), corporate notes and government securities. Investments classified as available-for-sale securities are carried at fair market value with unrealized gains and losses recorded in accumulated other comprehensive income (loss). Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in other income (expense), in the Consolidated Statement of Operations. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations, are classified as short-term. The Company reviews its available-for-sale securities investments at the end of each quarter for other-than-temporary declines in fair value based on the specific identification method. The Company considers various factors in determining whether an impairment is other-than-temporary, including the severity and duration of the impairment, changes in underlying credit ratings, forecasted recovery, its ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. When the Company concludes that an other-than-temporary impairment has resulted, the difference between the fair value and carrying value is written off and recorded as a charge on the Consolidated Statement of Operations. As of September 30, 2016, no impairment was recorded. Accounts receivable The majority of the Company’s accounts receivable are due from manufacturers serving the light-emitting diode (“LED”) and optical systems and specialty electronics devices industries. Credit is extended based on an evaluation of the customer’s financial condition. Accounts receivable are due based on contract terms and at stated amounts due from customers, net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time a customer’s balance is past due, the customer’s current ability to pay and the condition of the general economy and industry as a whole. The Company writes off accounts receivable when they are deemed uncollectible, and payments subsequently received on such receivables are recorded as a reduction to bad debt expense. The following table shows the activity of the allowance for doubtful accounts: September 30, December 31, (in thousands) Beginning balance $ 389 $ 140 Net allowance adjustments (245 ) 235 Accounts charged off, less recoveries (61 ) 14 Ending balance $ 83 $ 389 Inventories Inventories are valued at the lower of cost or market. Raw materials cost is determined using the first-in, first-out method, and work-in-process and finished goods costs are determined on a weighted-average cost basis which includes materials, labor and overhead. The Company reduces the carrying value of its inventories for differences between the cost and the estimated net realizable value, taking into account usage, expected demand, technological obsolescence and other information. At times in 2016 and 2015, the Company has accepted sales orders for core and wafer products at prices lower than cost. Based on these sales prices, the Company has recorded for the nine months ended September 30, 2016 and 2015, a lower of cost or market adjustment which reduced inventory and increased cost of goods sold by $1.1 million in each of those years. The Company establishes inventory reserves when conditions exist that suggest inventory may be in excess of anticipated demand or is obsolete based on customer specifications. The Company evaluates the ability to realize the value of its inventory based on a combination of factors, including forecasted sales, estimated current and future market value and changes in customers’ product specifications. The Company’s method of estimating excess and obsolete inventory has remained consistent for all periods presented. The continual decline of prices and worldwide over supply of material has significantly limited the sales of the Company’s two-inch diameter core. Therefore, two-inch diameter core is considered to be in excess. Since it can be recycled and used as raw material to grow new crystals, two-inch diameter core material has been written down to raw material value and for the three and nine months ended September 30, 2016, an excess and obsolete adjustment was recorded which reduced inventory and increased cost of goods sold by $2.3 million. On September 12, 2016, the Company announced plans to cease all production activities and shut down its Penang, Malaysia facility by the end of the year. The discontinuation of polished and patterned wafer production will result in a significant decrease in crystal growth production and thus impact the amount of raw material needed for future production. Accordingly, raw material in excess of the amount needed for future production has been written down and for the three and nine months ended September 30, 2016, an excess and obsolete adjustment was recorded which reduced inventory and increased cost of goods sold by $4.0 million. Inventories are composed of the following: September 30, December 31, (in thousands) Raw materials $ 2,364 $ 7,346 Work-in-process 6,470 9,920 Finished goods 1,810 4,067 $ 10,644 $ 21,333 Property and equipment Property and equipment consisted of the following: September 30, December 31, (in thousands) Land and land improvements $ 2,540 $ 4,133 Buildings 21,644 26,097 Machinery, equipment and tooling 43,275 50,364 Leasehold improvements 7,140 7,141 Furniture and fixtures 805 816 Information systems 1,115 1,105 Construction in progress 1,181 1,327 Total cost 77,700 90,983 Accumulated depreciation and amortization (36,581 ) (33,414 ) Property and equipment, net $ 41,119 $ 57,569 Revenue recognition Revenue recognized includes product sales and billings for costs and fees for government contracts. Product Sales The Company recognizes revenue from product sales when earned. Revenue is recognized when, and if, evidence of an arrangement is obtained and the other criteria to support revenue recognition are met, including: • Persuasive evidence of an arrangement exists • Title has passed and the product has been delivered • The price is fixed or determinable • Collection of the resulting receivable is reasonably assured Government Contracts The Company recognizes research and development revenue in the period during which the related costs are incurred over the contractually defined period. In July 2012, the Company signed a contract with the Air Force Research Laboratory to produce large-area sapphire windows on a cost plus fixed fee basis. The Company records research and development revenue on a gross basis as costs are incurred, plus a portion of the fixed fee. For the three and nine months ended September 30, 2016, $80,000 and $289,000 of revenue from the contract was recorded, respectively, and for the three and nine months ended September 30, 2015, $270,000 and $556,000 of revenue from the contract was recorded, respectively. The total value of the contract is $4.7 million, of which $4.3 million has been recorded through September 30, 2016. For the three and nine months ended September 30, 2016, the Company recorded estimated costs expected to be incurred in excess of this contract value of $217,000. The Company does not provide maintenance or other services and it does not have sales that involve multiple elements or deliverables. Net income per common share Basic net income per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted-average number of diluted common shares outstanding during the period. Diluted shares outstanding are calculated by adding to the weighted-average shares any outstanding stock options and warrants based on the treasury stock method. Diluted net loss per share is the same as basic net loss per share for the three and nine months ended September 30, 2016 because the effects of potentially dilutive securities are anti-dilutive. As of September 30, 2016, diluted shares outstanding were the same as basic shares outstanding as the exercise price of outstanding stock options exceeded the weighted-average trading share price and there were no outstanding warrants. At September 30, 2015, the Company had the following anti-dilutive securities outstanding which were excluded from the calculation of diluted net loss per share: September 30, Warrants — Stock options 1,130 Total 1,130 Other comprehensive loss Comprehensive loss is defined as the change in equity of a business enterprise from transactions and other events from non-owner sources. Comprehensive loss includes net earnings (loss) and other non-owner changes in equity that bypass the statement of operations and are reported in a separate component of equity. For the nine months ended September 30, 2016 and for the twelve months ended December 31, 2015, other comprehensive loss includes the unrealized loss on investments and foreign currency translation adjustments. The following table summarizes the components of accumulated comprehensive loss: September 30, December 31, (in thousands) Unrealized loss on investments $ (12 ) $ (17 ) Unrealized loss on currency translation (14 ) (16 ) Ending balance $ (26 ) $ (33 ) Recent accounting pronouncements In August 2014, the FASB issued ASU No. 2014-15 (“ASU 2014-15”), Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In July 2015, the FASB issued ASU No. 2015-11 (“ASU 2015-11”), Inventory (Topic 330): Simplifying the Measurement of Inventory In January 2016, the FASB issued ASU No. 2016-01 (“ASU 2016-01”), Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09 (“ASU 2016-09”), Compensation—Stock Compensation Topic 718): Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU No. 2016-10 (“ASU 2016-10”), Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. Revenue from Contracts with Customers (Topic 606), Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. . |
Asset Impairment Charges
Asset Impairment Charges | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Asset Impairment Charges | 3. ASSET IMPAIRMENT CHARGES When circumstances, such as adverse market conditions, indicate that the carrying value of a long-lived asset may be impaired, the Company performs an analysis to review the recoverability of the asset’s carrying value. The Company makes estimates of the undiscounted cash flows (excluding interest charges) from the expected future operations of the asset. These estimates consider factors such as expected future operating income, operating trends and prospects, as well as the effects of demand, competition and other factors. If the analysis indicates that the carrying value is not recoverable from future cash flows, an impairment loss is recognized to the extent that the carrying value exceeds the estimated fair value. Any impairment losses are recorded as operating expenses, which reduce net income. In response to the Company’s current period operating losses combined with its history of continuing operating losses, the Company evaluated the recoverability of certain property and equipment. In the third quarter of 2015, the overall outlook for the sapphire market continued to be volatile as industry analysts reported significant worldwide over capacity and pricing of sapphire products reached historical lows. Based upon the Company’s assessment using its most recent projections, impairment to these assets was indicated as of September 30, 2015, as the recoverable amount of undiscounted cash flows did not exceed the carrying amount of these assets. For the three and nine months ended September 30, 2015, the Company recorded an asset impairment charge on machinery, equipment and facilities of $39.6 million. The Company evaluated its asset portfolio and wrote down the assets using a cost and market approach to determine the current fair market value. With the announcement of the closing of the Malaysia facility, the Company engaged an independent valuation company to assist in the determination of the fair market value of certain of the assets. As it is the Company’s intention to sell these assets, the Company evaluated its Malaysia asset portfolio other than the assets covered by a purchase agreement, based on assuming an orderly liquidation plan which considers economic obsolescence and sales of comparable equipment. Based on this review, the Company recorded for the three and nine months ended September 30, 2016, asset impairment charges on machinery, equipment and facilities of $10.2 million. At September 30, 2016, the Company reviewed the current fair market value of the U.S. assets and concluded no additional adjustments were needed except as noted below. The Company is actively pursuing the sale of a parcel of extra land the Company owns in Batavia, Illinois. The property has a book value of $1.6 million and it is the Company’s intention to complete a sale within the next twelve-month period. Therefore, this property was reclassified as a current asset held for sale at September 30, 2016. Since the expected sale price is below the book value of the property, for the nine months ended September 30, 2016, an impairment charge of $265,000 was recorded. The Company will continue to assess its long-lived assets to ensure the carrying amount of these assets is still appropriate given any changes in the asset usage, marketplace and other factors used in determining the current fair market value. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 4. SEGMENT INFORMATION The Company evaluates operations as one reportable segment, as it only reports profit and loss information on an aggregate basis to its chief operating decision maker. Revenue is attributed by geographic region based on ship-to location of the Company’s customers. The following table summarizes revenue by geographic region: Three months ended Nine months ended 2016 2015 2016 2015 (in thousands) (in thousands) Germany $ 5,409 $ 1,629 $ 8,396 $ 3,270 United States 911 1,332 2,717 3,853 Korea 414 1,267 1,478 3,254 Canada 114 — 537 518 Australia 91 300 503 715 Israel 63 104 355 718 Taiwan 38 305 847 3,218 China 5 320 8 5,484 Other 41 89 67 332 Total revenue $ 7,086 $ 5,346 $ 14,908 $ 21,362 The following table summarizes revenue by product type: Three months ended Nine months ended 2016 2015 2016 2015 (in thousands) (in thousands) Core $ 424 $ 1,824 $ 1,514 $ 10,962 Wafer 5,507 2,136 9,683 5,769 Optical 1,075 1,116 3,422 4,075 Research & development 80 270 289 556 Total revenue $ 7,086 $ 5,346 $ 14,908 $ 21,362 The following table summarizes assets by geographic region: September 30, December 31, (in thousands) United States $ 61,148 $ 88,916 Malaysia 16,531 30,276 Other 41 50 Total assets $ 77,720 $ 119,242 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 5. INVESTMENTS The Company’s investments are classified as available-for-sale securities and are carried at fair market value with unrealized gains and losses recorded in accumulated other comprehensive income (loss). The Company had no available-for-sale securities investments at September 30, 2016. The following table presents the amortized cost, and gross unrealized gains and losses on all securities at December 31, 2015: Amortized Gross Gross Fair (in thousands) Short-term investments: FDIC guaranteed certificates of deposit $ 1,920 $ — $ — $ 1,920 Corporate notes/bonds 6,980 — 5 6,975 Total short-term investments $ 8,900 $ — $ 5 $ 8,895 The Company values its investments at fair value, defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard below describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s fixed income available-for-sale securities consist of high quality, investment grade commercial paper, corporate notes and government securities. The Company values these securities based on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. The valuation techniques used to measure the fair value of the Company’s financial instruments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques. The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of September 30, 2016: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 10,943 $ — $ — $ 10,943 The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2015: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 17,702 $ — $ — $ 17,702 Investments: Available-for-sales securities—current: FDIC guaranteed certificates of deposit — 1,920 — 1,920 Corporate notes/bonds — 6,975 — 6,975 Total $ 17,702 $ 8,895 $ — $ 26,597 In addition to the debt securities noted above, the Company had approximately $5.4 million and $3.5 million of time deposits included in cash and cash equivalents as of September 30, 2016 and December 31, 2015, respectively. |
Significant Customers
Significant Customers | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Significant Customers | 6. SIGNIFICANT CUSTOMERS For the three months ended September 30, 2016, the Company had one customer that accounted for approximately 76% of revenue. For the three months ended September 30, 2015, the Company had two customers individually that accounted for approximately 30% and 13% of revenue. For the nine months ended September 30, 2016, the Company had two customers individually that accounted for approximately 55% and 10% of revenue. For the nine months ended September 30, 2015, the Company had two customers individually that accounted for approximately 18% and 15% of revenue. No other customers accounted for more than 10% of revenue for these reported periods in 2016 and 2015. Customers individually representing more than 10% of trade receivables accounted for approximately 64% and 57% of accounts receivable as of September 30, 2016 and December 31, 2015, respectively. The Company grants credit to customers based on an evaluation of their financial condition. Losses from credit sales are provided for in the financial statements. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 7. STOCKHOLDERS’ EQUITY Common Stock As of September 30, 2016, the Company had reserved 3,067,034 shares of common stock for issuance upon the exercise of outstanding common stock options and the vesting of restricted stock units. Also, 2,125,676 shares of the Company’s common stock were reserved for future grants of stock options (or other similar equity instruments) under the Rubicon Technology, Inc. 2016 Stock Incentive Plan (the “2016 Plan”) as of September 30, 2016. Warrants For the three and nine months ended September 30, 2016, the Company had no common stock warrants outstanding. |
Stock Incentive Plans
Stock Incentive Plans | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | 8. STOCK INCENTIVE PLANS The Company sponsored a stock option plan, the Rubicon Technology, Inc. 2001 Equity Plan, as amended (the “2001 Plan”), which allowed for the granting of incentive and nonqualified stock options for the purchase of common stock. The maximum number of shares that could be awarded or sold under the 2001 Plan was 1,449,667 shares. Each option granted under the 2001 Plan entitles the holder to purchase one share of common stock at the specified option exercise price. The exercise price of each incentive stock option granted could not be less than the fair market value on the grant date. Management and the Board of Directors determined vesting periods and expiration dates at the time of the grant. On August 2, 2011, the 2001 Plan expired. Any existing options under the 2001 Plan remain outstanding in accordance with their current terms under the 2001 Plan. In August 2007, the Company adopted the Rubicon Technology Inc. 2007 Stock Incentive Plan, which was amended and restated effective in March 2011 (the “2007 Plan”), and which allowed for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and bonus shares. The maximum number of shares that could be awarded under the 2007 Plan was 4,407,692 shares. Options granted under the 2007 Plan entitle the holder to purchase shares of the Company’s common stock at the specified option exercise price, which could not be less than the fair market value of the common stock on the grant date. On June 24, 2016, the plan terminated with the adoption of the 2016 Plan. Any existing awards under the 2007 Plan remain outstanding in accordance with their current terms under the 2007 Plan. On June 24, 2016, the Company’ stockholders approved adoption of the 2016 Plan effective as of March 17, 2016, which allows for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and bonus shares. The Compensation Committee of the Company’s Board of Directors administers the 2016 Plan. The committee determines the type of award to be granted, the fair market value, the number of shares covered by the award, and the time when the award vests and may be exercised. Pursuant to the 2016 Plan, 2,229,803 shares of the Company’s common stock plus any shares subject to outstanding awards under the 2007 Plan that subsequently expires unexercised, are forfeited without the delivery of shares or are settled in cash, will be available for issuance under the 2016 Plan. The 2016 Plan will automatically terminate on March 17, 2026, unless the Company terminates it sooner. The Company uses the Black-Scholes option pricing model to value stock options issued after January 1, 2006. The Company uses a three-year historical stock price average to determine its volatility assumptions. The assumed risk-free rates were based on U.S. Treasury rates in effect at the time of grant with a term consistent with the expected option lives. The expected term is based upon the vesting term of the Company’s options, a review of a peer group of companies, and expected exercise behavior. The forfeiture rate is based on past history of forfeited options. The expense is allocated using the straight-line method. For the three and nine months ended September 30, 2016, the Company recorded $147,800 and $460,000, respectively, of stock option compensation expense. For the three and nine months ended September 30, 2015, the Company recorded $173,000 and $558,000, respectively, of stock option compensation expense. As of September 30, 2016, the Company has $1.0 million of total unrecognized compensation cost related to non-vested awards granted under the Company’s stock-based plans that it expects to recognize over a weighted-average period of 2.97 years. The following table summarizes the activity of the stock incentive and equity plans as of September 30, 2016 and changes during the nine months then ended: Shares Number of Weighted- Number of Number of At January 1, 2016 732,270 2,851,568 $ 7.07 201,455 454,021 Authorized 1,900,000 — — — — Granted (1,537,692 ) 943,620 0.63 594,072 — Exercised/Issued — — — — (3,702 ) Cancelled/forfeited 1,031,098 (1,012,821 ) 9.61 — (165,652 ) At September 30, 2016 2,125,676 2,782,367 $ 3.97 795,527 284,667 The Company’s aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the fair value of the Company’s common stock. Based on the fair market value of the common stock at September 30, 2016 and 2015, there was no intrinsic value of the options outstanding and exercisable. The weighted average fair value per share of options granted for the nine months ended September 30, 2016 was $0.63 and the fair value of each option grant was estimated at the date of grant using the Black-Scholes option pricing model using an expected term of 5.1 years, risk-free interest rates of 1.24% - 1.73%, expected volatility of 65% and no dividend yield. The Company used an expected forfeiture rate of 23.1%. A summary of the Company’s non-vested options during the nine month period ended September 30, 2016 is presented below: Options Weighted- Non-vested at January 1, 2016 1,251,961 $ 2.23 Granted 943,620 0.63 Vested (189,800 ) 3.77 Forfeited (215,065 ) 2.63 Non-vested at September 30, 2016 1,790,716 $ 1.18 For the three and nine months ended September 30, 2016, the Company recorded $48,600 and $187,000, respectively, of restricted stock unit (“RSU”) expense. As of September 30, 2016, there was $290,000 of unrecognized compensation cost related to the non-vested RSUs. This cost is expected to be recognized over a weighted-average period of 1.78 years. A summary of the Company’s restricted stock units is as follows: RSUs Weighted average price at Aggregate intrinsic Non-vested restricted stock units as of January 1, 2016 454,021 $ 1.92 Granted — — Vested (3,702 ) 3.94 Cancelled (165,652 ) 2.46 Non-vested at September 30, 2016 284,667 $ 1.58 $ 179,340 For the three and nine months ended September 30, 2016, the Company recorded $153,000 and $434,000, respectively, of stock compensation expense related to restricted stock. For the three and nine months ended September 30, 2015, the Company recorded $74,000 and $220,000, respectively, of stock compensation expense related to restricted stock. An analysis of restricted stock issued is as follows: Non-vested restricted stock as of January 1, 2016 15,200 Granted 594,072 Vested (278,011 ) Non-vested restricted stock as of September 30, 2016 331,261 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. COMMITMENTS AND CONTINGENCIES Purchase Commitments The Company has entered into agreements for electricity and for equipment for new products. These agreements will result in the Company purchasing electricity or equipment for a total cost of approximately $1.8 million with deliveries occurring through December 2017. Litigation From time to time, the Company experiences routine litigation in the normal course of its business. The management of the Company does not believe any pending litigation, other than as set forth below, will have a material adverse effect on the financial condition or results of operations of the Company. On April 30, 2015, Firerock Global Opportunity Fund LP filed a complaint in the Northern District of Illinois asserting federal securities claims against the Company, certain officers, its directors and the underwriters in the Company’s March 2014 stock offering. The complaint sought as a remedy either money damages or rescission of the March 2014 offering, plus attorneys’ fees. On October 29, 2015, after mediation and subsequent discussions, the parties reached a settlement agreement in principle. On January 27, 2016, the United States District Court for the Northern District of Illinois granted a motion for preliminary approval of the agreement, and on May 20, 2016, a final judgment and order of dismissal was granted. The settlement included a release of all defendants, and dismissal of the case against all defendants with prejudice. The Company recorded for the year ended December 31, 2015 an expense of $1.1 million of which $900,000 is the amount the Company contributed to the settlement and paid on February 17, 2016. The remaining costs of the settlement were covered by the Company’s insurance carriers. On November 19, 2015, the Carolyn Piper Smithhisler Living Trust, derivatively on behalf of Rubicon Technology Inc., filed a complaint in the Eighteenth Judicial Circuit of Illinois against the Company’s Board of Directors and certain senior officers seeking to remedy alleged breaches of fiduciary duties and other violations of the law, failure to implement an effective system of internal controls, and failure to oversee the public statements made by the Company and certain individual defendants. The complaint sought as a remedy to recover damages against the individual defendants for the benefit of the Company and to require the Company to reform and improve its corporate governance and internal procedures plus attorneys’ fees. After extensive discussions, the parties informed the court on May 2, 2016 that they had reached a settlement agreement in principle. The proposed settlement provides for the Company to adopt certain governance changes and to pay certain amounts. On May 23, 2016, the court issued an order granting preliminary approval of the proposed settlement. On July 11, 2016, plaintiff’s unopposed motion for final approval of stockholder derivative settlement fee and expense amount and service award was filed. On August 1, 2016, the court issued a final judgment approving the settlement and an order of dismissal was granted. The Company’s insurance carriers are expected to cover substantially all of the settlement payments and related expenses, including legal fees. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. INCOME TAXES The Company is subject to income taxes in the U.S. and Malaysia. On a quarterly basis, the Company assesses the recoverability of deferred tax assets and the need for a valuation allowance. Such evaluations involve the application of significant judgment and multiple factors, both positive and negative, are considered. For the period ended September 30, 2016, a valuation allowance has been included in the 2016 forecasted effective tax rate. The Company is in a cumulative loss position for the past three years, which is considered significant negative evidence that is difficult to overcome on a “more likely than not” standard through objectively verifiable data. Under the accounting standards objective verifiable evidence is given greater weight than subjective evidence such as the Company’s projections for future growth. Based on an evaluation in accordance with the accounting standards, as of December 31, 2015, a valuation allowance has been recorded against the net U.S. deferred tax assets in order to measure only the portion of the deferred tax assets that are more likely than not to be realized based on the weight of all the available evidence. At September 30, 2016, the Company continues to be in a three-year cumulative loss position; therefore, until an appropriate level of profitability is attained, the Company expects to maintain a full valuation allowance on its U.S. and Malaysia net deferred tax assets. Any U.S. and Malaysia tax benefits or tax expense recorded on the Company’s Consolidated Statement of Operations will be offset with a corresponding valuation allowance until such time that the Company changes its determination related to the realization of deferred tax assets. In the event that the Company changes its determination as to the amount of deferred tax assets that can be realized, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. The tax provision for the three and nine months ended September 30, 2016 is based on an estimated combined statutory effective tax rate. The Company recorded for the three and nine months ended September 30, 2016 a tax benefit of $216,000 and $541,000, respectively, for an effective tax rate of 0.86% and 1.3%, respectively. For the three and nine months ended September 30, 2016, the difference between the Company’s effective tax rate and the U.S. federal 35% statutory rate and state 6.2% (net of federal benefit) statutory rate was primarily related to U.S. and Malaysia valuation allowances and Malaysia foreign tax rate differential. |
Credit Facility
Credit Facility | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Credit Facility | 11. CREDIT FACILITY On January 2, 2013, the Company entered into a three-year term agreement with a bank to provide the Company with a senior secured credit facility of up to $25.0 million. The agreement provided for the Company to borrow up to 80% of eligible accounts receivable and up to 35% of domestically held raw material and finished goods inventory. Advances against inventory were limited to 40% of the aggregate outstanding on the revolving line of credit and $10.0 million in aggregate. The Company had the option to borrow at an interest rate of LIBOR plus 2.75% or the Wall Street Journal prime rate plus 0.50%. If the Company maintained liquidity of $20.0 million or greater with the lending institution, then the borrowing interest rate options were LIBOR plus 2.25% or the Wall Street Journal prime rate. There was an unused revolving line facility fee of 0.375% per annum. The facility was secured by a first priority interest in substantially all of the Company’s personal property, excluding intellectual property. The Company was required to maintain an adjusted quick ratio of 1.40 to 1.00, maintain operating and other deposit accounts with the bank or bank’s affiliates of 25% of the Company’s total worldwide cash, securities and investments, and the Company could pay dividends or repurchase capital stock only with the bank’s consent during the three-year term. In August 2015, the Company entered into an amended agreement with the bank to extend the senior secured facility through January 2, 2018. Under the amended agreement, advances against inventory were limited to the lesser of 45% of the aggregate outstanding principal on the revolving line of credit and $10.0 million and the rate on the facility fee on the unused portion of the revolving line was adjusted to 0.50% per annum. All other terms and conditions remained the same. The agreement contained a subjective acceleration clause and required the Company to maintain a lockbox. As a result, the Company classified the debt as a current liability on its balance sheet. On September 9, 2016, the Company voluntarily terminated the loan agreement. Pursuant to the pay-off letter for termination of the loan agreement, upon payment of the pay-off amount, all obligations under the loan agreement were paid and discharged in full, all unfunded commitments by the bank to make credit extensions to the Company under the loan agreement were terminated, all security interests granted to or held by the bank under the loan agreement were released, and all guaranties supporting the loan agreement were released. The Company did not incur any early termination penalties in connection with the termination. For the three and nine months ended September 30, 2016, the Company recorded interest expense of $27,500 and $98,200, respectively, related to the credit facility which includes $24,200 and $87,000, respectively, of interest expense charged on the unused portion of the facility. For the nine months ended September 30, 2015, the Company did not draw on this facility. For the three and nine months ended September 30, 2015, the Company recorded $29,000 and $76,000, respectively, of interest expense charged on the unused portion of the facility. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Rubicon Worldwide LLC, Rubicon Sapphire Technology (Malaysia) SDN BHD, Rubicon Technology Hong Kong Limited and Rubicon Technology Korea Yuhan Hosea. All intercompany transactions and balances have been eliminated in consolidation. |
Foreign currency translation and transactions | Foreign currency translation and transactions Rubicon Worldwide LLC, Rubicon Technology Hong Kong Limited and Rubicon Technology Korea Yuhan Hosea’s assets and liabilities are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates and capital accounts at historical exchange rates. The results of operations are translated into U.S. dollars at the average exchange rates during the respective period. Translation adjustments resulting from fluctuations in exchange rates for Rubicon Worldwide LLC, Rubicon Technology Hong Kong Limited and Rubicon Technology Korea Yuhan Hosea are recorded as a separate component of accumulated other comprehensive income (loss) within stockholders’ equity. The Company has determined that the functional currency of Rubicon Sapphire Technology (Malaysia) SDN BHD is the U.S. dollar. Rubicon Sapphire Technology (Malaysia) SDN BHD’s assets and liabilities are translated into U.S. dollars using the remeasurement method. Non-monetary assets are translated at historical exchange rates and monetary assets are translated at exchange rates existing at the respective balance sheet dates. Translation adjustments for Rubicon Sapphire Technology (Malaysia) SDN BHD are included in determining net income (loss) for the period. The results of operations are translated into U.S. dollars at the average exchange rates during the period. The Company records these gains and losses in other income (expense). Foreign currency transaction gains and losses are generated from the effects of exchange rate changes on transactions denominated in a currency other than the functional currency of the Company, which is the U.S. dollar. Gains and losses on foreign currency transactions are generally required to be recognized in the determination of net income (loss) for the period. The Company records these gains and losses in other income (expense). |
Investments | Investments The Company invests available cash primarily in investment grade commercial paper, certificates of deposit guaranteed by the Federal Deposit Insurance Corporation (the “FDIC), corporate notes and government securities. Investments classified as available-for-sale securities are carried at fair market value with unrealized gains and losses recorded in accumulated other comprehensive income (loss). Investments in trading securities are reported at fair value, with both realized and unrealized gains and losses recorded in other income (expense), in the Consolidated Statement of Operations. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations, are classified as short-term. The Company reviews its available-for-sale securities investments at the end of each quarter for other-than-temporary declines in fair value based on the specific identification method. The Company considers various factors in determining whether an impairment is other-than-temporary, including the severity and duration of the impairment, changes in underlying credit ratings, forecasted recovery, its ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. When the Company concludes that an other-than-temporary impairment has resulted, the difference between the fair value and carrying value is written off and recorded as a charge on the Consolidated Statement of Operations. As of September 30, 2016, no impairment was recorded. |
Accounts receivable | Accounts receivable The majority of the Company’s accounts receivable are due from manufacturers serving the light-emitting diode (“LED”) and optical systems and specialty electronics devices industries. Credit is extended based on an evaluation of the customer’s financial condition. Accounts receivable are due based on contract terms and at stated amounts due from customers, net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time a customer’s balance is past due, the customer’s current ability to pay and the condition of the general economy and industry as a whole. The Company writes off accounts receivable when they are deemed uncollectible, and payments subsequently received on such receivables are recorded as a reduction to bad debt expense. The following table shows the activity of the allowance for doubtful accounts: September 30, December 31, (in thousands) Beginning balance $ 389 $ 140 Net allowance adjustments (245 ) 235 Accounts charged off, less recoveries (61 ) 14 Ending balance $ 83 $ 389 |
Inventories | Inventories Inventories are valued at the lower of cost or market. Raw materials cost is determined using the first-in, first-out method, and work-in-process and finished goods costs are determined on a weighted-average cost basis which includes materials, labor and overhead. The Company reduces the carrying value of its inventories for differences between the cost and the estimated net realizable value, taking into account usage, expected demand, technological obsolescence and other information. At times in 2016 and 2015, the Company has accepted sales orders for core and wafer products at prices lower than cost. Based on these sales prices, the Company has recorded for the nine months ended September 30, 2016 and 2015, a lower of cost or market adjustment which reduced inventory and increased cost of goods sold by $1.1 million in each of those years. The Company establishes inventory reserves when conditions exist that suggest inventory may be in excess of anticipated demand or is obsolete based on customer specifications. The Company evaluates the ability to realize the value of its inventory based on a combination of factors, including forecasted sales, estimated current and future market value and changes in customers’ product specifications. The Company’s method of estimating excess and obsolete inventory has remained consistent for all periods presented. The continual decline of prices and worldwide over supply of material has significantly limited the sales of the Company’s two-inch diameter core. Therefore, two-inch diameter core is considered to be in excess. Since it can be recycled and used as raw material to grow new crystals, two-inch diameter core material has been written down to raw material value and for the three and nine months ended September 30, 2016, an excess and obsolete adjustment was recorded which reduced inventory and increased cost of goods sold by $2.3 million. On September 12, 2016, the Company announced plans to cease all production activities and shut down its Penang, Malaysia facility by the end of the year. The discontinuation of polished and patterned wafer production will result in a significant decrease in crystal growth production and thus impact the amount of raw material needed for future production. Accordingly, raw material in excess of the amount needed for future production has been written down and for the three and nine months ended September 30, 2016, an excess and obsolete adjustment was recorded which reduced inventory and increased cost of goods sold by $4.0 million. Inventories are composed of the following: September 30, December 31, (in thousands) Raw materials $ 2,364 $ 7,346 Work-in-process 6,470 9,920 Finished goods 1,810 4,067 $ 10,644 $ 21,333 |
Property and equipment | Property and equipment Property and equipment consisted of the following: September 30, December 31, (in thousands) Land and land improvements $ 2,540 $ 4,133 Buildings 21,644 26,097 Machinery, equipment and tooling 43,275 50,364 Leasehold improvements 7,140 7,141 Furniture and fixtures 805 816 Information systems 1,115 1,105 Construction in progress 1,181 1,327 Total cost 77,700 90,983 Accumulated depreciation and amortization (36,581 ) (33,414 ) Property and equipment, net $ 41,119 $ 57,569 |
Revenue recognition | Revenue recognition Revenue recognized includes product sales and billings for costs and fees for government contracts. Product Sales The Company recognizes revenue from product sales when earned. Revenue is recognized when, and if, evidence of an arrangement is obtained and the other criteria to support revenue recognition are met, including: • Persuasive evidence of an arrangement exists • Title has passed and the product has been delivered • The price is fixed or determinable • Collection of the resulting receivable is reasonably assured Government Contracts The Company recognizes research and development revenue in the period during which the related costs are incurred over the contractually defined period. In July 2012, the Company signed a contract with the Air Force Research Laboratory to produce large-area sapphire windows on a cost plus fixed fee basis. The Company records research and development revenue on a gross basis as costs are incurred, plus a portion of the fixed fee. For the three and nine months ended September 30, 2016, $80,000 and $289,000 of revenue from the contract was recorded, respectively, and for the three and nine months ended September 30, 2015, $270,000 and $556,000 of revenue from the contract was recorded, respectively. The total value of the contract is $4.7 million, of which $4.3 million has been recorded through September 30, 2016. For the three and nine months ended September 30, 2016, the Company recorded estimated costs expected to be incurred in excess of this contract value of $217,000. The Company does not provide maintenance or other services and it does not have sales that involve multiple elements or deliverables. |
Net income per common share | Net income per common share Basic net income per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted-average number of diluted common shares outstanding during the period. Diluted shares outstanding are calculated by adding to the weighted-average shares any outstanding stock options and warrants based on the treasury stock method. Diluted net loss per share is the same as basic net loss per share for the three and nine months ended September 30, 2016 because the effects of potentially dilutive securities are anti-dilutive. As of September 30, 2016, diluted shares outstanding were the same as basic shares outstanding as the exercise price of outstanding stock options exceeded the weighted-average trading share price and there were no outstanding warrants. At September 30, 2015, the Company had the following anti-dilutive securities outstanding which were excluded from the calculation of diluted net loss per share: September 30, Warrants — Stock options 1,130 Total 1,130 |
Other comprehensive loss | Other comprehensive loss Comprehensive loss is defined as the change in equity of a business enterprise from transactions and other events from non-owner sources. Comprehensive loss includes net earnings (loss) and other non-owner changes in equity that bypass the statement of operations and are reported in a separate component of equity. For the nine months ended September 30, 2016 and for the twelve months ended December 31, 2015, other comprehensive loss includes the unrealized loss on investments and foreign currency translation adjustments. The following table summarizes the components of accumulated comprehensive loss: September 30, December 31, (in thousands) Unrealized loss on investments $ (12 ) $ (17 ) Unrealized loss on currency translation (14 ) (16 ) Ending balance $ (26 ) $ (33 ) |
Recent accounting pronouncements | Recent accounting pronouncements In August 2014, the FASB issued ASU No. 2014-15 (“ASU 2014-15”), Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In July 2015, the FASB issued ASU No. 2015-11 (“ASU 2015-11”), Inventory (Topic 330): Simplifying the Measurement of Inventory In January 2016, the FASB issued ASU No. 2016-01 (“ASU 2016-01”), Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09 (“ASU 2016-09”), Compensation—Stock Compensation Topic 718): Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU No. 2016-10 (“ASU 2016-10”), Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. Revenue from Contracts with Customers (Topic 606), Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. . |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Activity of Allowance for Doubtful Accounts | The following table shows the activity of the allowance for doubtful accounts: September 30, December 31, (in thousands) Beginning balance $ 389 $ 140 Net allowance adjustments (245 ) 235 Accounts charged off, less recoveries (61 ) 14 Ending balance $ 83 $ 389 |
Inventories | Inventories are composed of the following: September 30, December 31, (in thousands) Raw materials $ 2,364 $ 7,346 Work-in-process 6,470 9,920 Finished goods 1,810 4,067 $ 10,644 $ 21,333 |
Property and Equipment | Property and equipment consisted of the following: September 30, December 31, (in thousands) Land and land improvements $ 2,540 $ 4,133 Buildings 21,644 26,097 Machinery, equipment and tooling 43,275 50,364 Leasehold improvements 7,140 7,141 Furniture and fixtures 805 816 Information systems 1,115 1,105 Construction in progress 1,181 1,327 Total cost 77,700 90,983 Accumulated depreciation and amortization (36,581 ) (33,414 ) Property and equipment, net $ 41,119 $ 57,569 |
Anti-Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share | At September 30, 2015, the Company had the following anti-dilutive securities outstanding which were excluded from the calculation of diluted net loss per share: September 30, Warrants — Stock options 1,130 Total 1,130 |
Components of Accumulated Comprehensive Loss | The following table summarizes the components of accumulated comprehensive loss: September 30, December 31, (in thousands) Unrealized loss on investments $ (12 ) $ (17 ) Unrealized loss on currency translation (14 ) (16 ) Ending balance $ (26 ) $ (33 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Region | The following table summarizes revenue by geographic region: Three months ended Nine months ended 2016 2015 2016 2015 (in thousands) (in thousands) Germany $ 5,409 $ 1,629 $ 8,396 $ 3,270 United States 911 1,332 2,717 3,853 Korea 414 1,267 1,478 3,254 Canada 114 — 537 518 Australia 91 300 503 715 Israel 63 104 355 718 Taiwan 38 305 847 3,218 China 5 320 8 5,484 Other 41 89 67 332 Total revenue $ 7,086 $ 5,346 $ 14,908 $ 21,362 |
Summary of Revenue by Product Type | The following table summarizes revenue by product type: Three months ended Nine months ended 2016 2015 2016 2015 (in thousands) (in thousands) Core $ 424 $ 1,824 $ 1,514 $ 10,962 Wafer 5,507 2,136 9,683 5,769 Optical 1,075 1,116 3,422 4,075 Research & development 80 270 289 556 Total revenue $ 7,086 $ 5,346 $ 14,908 $ 21,362 |
Summary of Assets by Geographic Region | The following table summarizes assets by geographic region: September 30, December 31, (in thousands) United States $ 61,148 $ 88,916 Malaysia 16,531 30,276 Other 41 50 Total assets $ 77,720 $ 119,242 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Gross Unrealized Gains and Losses on All Securities | The following table presents the amortized cost, and gross unrealized gains and losses on all securities at December 31, 2015: Amortized Gross Gross Fair (in thousands) Short-term investments: FDIC guaranteed certificates of deposit $ 1,920 $ — $ — $ 1,920 Corporate notes/bonds 6,980 — 5 6,975 Total short-term investments $ 8,900 $ — $ 5 $ 8,895 |
Summarized Financial Assets Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of September 30, 2016: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 10,943 $ — $ — $ 10,943 The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2015: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 17,702 $ — $ — $ 17,702 Investments: Available-for-sales securities—current: FDIC guaranteed certificates of deposit — 1,920 — 1,920 Corporate notes/bonds — 6,975 — 6,975 Total $ 17,702 $ 8,895 $ — $ 26,597 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Activity of Stock Incentive and Equity Plans | The following table summarizes the activity of the stock incentive and equity plans as of September 30, 2016 and changes during the nine months then ended: Shares Number of Weighted- Number of Number of At January 1, 2016 732,270 2,851,568 $ 7.07 201,455 454,021 Authorized 1,900,000 — — — — Granted (1,537,692 ) 943,620 0.63 594,072 — Exercised/Issued — — — — (3,702 ) Cancelled/forfeited 1,031,098 (1,012,821 ) 9.61 — (165,652 ) At September 30, 2016 2,125,676 2,782,367 $ 3.97 795,527 284,667 |
Summary of Non-vested Options | A summary of the Company’s non-vested options during the nine month period ended September 30, 2016 is presented below: Options Weighted- Non-vested at January 1, 2016 1,251,961 $ 2.23 Granted 943,620 0.63 Vested (189,800 ) 3.77 Forfeited (215,065 ) 2.63 Non-vested at September 30, 2016 1,790,716 $ 1.18 |
Restricted Stock Units [Member] | |
Analysis of Restricted Stock Units Issued | A summary of the Company’s restricted stock units is as follows: RSUs Weighted average price at Aggregate intrinsic Non-vested restricted stock units as of January 1, 2016 454,021 $ 1.92 Granted — — Vested (3,702 ) 3.94 Cancelled (165,652 ) 2.46 Non-vested at September 30, 2016 284,667 $ 1.58 $ 179,340 |
Restricted Stock [Member] | |
Analysis of Restricted Stock Units Issued | An analysis of restricted stock issued is as follows: Non-vested restricted stock as of January 1, 2016 15,200 Granted 594,072 Vested (278,011 ) Non-vested restricted stock as of September 30, 2016 331,261 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 51 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Impairment of investments | $ 0 | ||||
Based on these sales prices reduced inventory and increased cost of goods sold | 1,100,000 | $ 1,100,000 | |||
Based on excess and obsolete adjustment, reduced inventory and increased cost of goods sold | $ 2,300,000 | 2,300,000 | |||
Revenue recorded from government contract | 80,000 | $ 270,000 | 289,000 | $ 556,000 | $ 4,300,000 |
Total value of the contract | 4,700,000 | 4,700,000 | $ 4,700,000 | ||
Estimated costs expected to be incurred in excess of contract value | $ 217,000 | $ 217,000 | |||
Number of outstanding warrants | 0 | 0 | 0 | ||
Penang, Malaysia Facility [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Based on excess and obsolete adjustment, reduced inventory and increased cost of goods sold | $ 4,000,000 | $ 4,000,000 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Activity of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Beginning balance | $ 389 | $ 140 |
Net allowance adjustments | (245) | 235 |
Accounts charged off, less recoveries | (61) | 14 |
Ending balance | $ 83 | $ 389 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory, Net [Abstract] | ||
Raw materials | $ 2,364 | $ 7,346 |
Work-in-process | 6,470 | 9,920 |
Finished goods | 1,810 | 4,067 |
Inventories | $ 10,644 | $ 21,333 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies - Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 77,700 | $ 90,983 |
Accumulated depreciation and amortization | (36,581) | (33,414) |
Property and equipment, net | 41,119 | 57,569 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 2,540 | 4,133 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 21,644 | 26,097 |
Machinery, Equipment and Tooling [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 43,275 | 50,364 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 7,140 | 7,141 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 805 | 816 |
Information Systems [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 1,115 | 1,105 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 1,181 | $ 1,327 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies - Anti-Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share (Detail) | 9 Months Ended |
Sep. 30, 2015shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Total | 1,130 |
Stock Options [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Total | 1,130 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies - Components of Accumulated Comprehensive Loss (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Unrealized loss on investments | $ (12) | $ (17) |
Unrealized loss on currency translation | (14) | (16) |
Ending balance | $ (26) | $ (33) |
Asset Impairment Charges - Addi
Asset Impairment Charges - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | ||||
Asset impairment charges | $ 10,216,000 | $ 39,597,000 | $ 10,481,000 | $ 39,597,000 |
Book value of property | $ 1,600,000 | 1,600,000 | ||
Asset impairment charge | $ 265,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Segment Information - Summary o
Segment Information - Summary of Revenue by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 7,086 | $ 5,346 | $ 14,908 | $ 21,362 |
Germany [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 5,409 | 1,629 | 8,396 | 3,270 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 911 | 1,332 | 2,717 | 3,853 |
Korea [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 414 | 1,267 | 1,478 | 3,254 |
Canada [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 114 | 537 | 518 | |
Australia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 91 | 300 | 503 | 715 |
Israel [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 63 | 104 | 355 | 718 |
Taiwan [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 38 | 305 | 847 | 3,218 |
China [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 5 | 320 | 8 | 5,484 |
Other [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 41 | $ 89 | $ 67 | $ 332 |
Segment Information - Summary32
Segment Information - Summary of Revenue by Product Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Product Information [Line Items] | ||||
Total revenue | $ 7,086 | $ 5,346 | $ 14,908 | $ 21,362 |
Core [Member] | ||||
Product Information [Line Items] | ||||
Total revenue | 424 | 1,824 | 1,514 | 10,962 |
Wafer [Member] | ||||
Product Information [Line Items] | ||||
Total revenue | 5,507 | 2,136 | 9,683 | 5,769 |
Optical [Member] | ||||
Product Information [Line Items] | ||||
Total revenue | 1,075 | 1,116 | 3,422 | 4,075 |
Research & Development [Member] | ||||
Product Information [Line Items] | ||||
Total revenue | $ 80 | $ 270 | $ 289 | $ 556 |
Segment Information - Summary33
Segment Information - Summary of Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 77,720 | $ 119,242 |
United States [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 61,148 | 88,916 |
Malaysia [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 16,531 | 30,276 |
Other [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 41 | $ 50 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Amortized Cost and Fair Value Debt Securities [Abstract] | ||
Available-for-sales securities - current | $ 0 | |
Time deposits of cash and cash equivalents | $ 5,400,000 | $ 3,500,000 |
Investments - Amortized Cost an
Investments - Amortized Cost and Gross Unrealized Gains and Losses on All Securities (Detail) - Short-term Investments [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | $ 8,900 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | 5 |
Fair Value | 8,895 |
FDIC Guaranteed Certificates of Deposit [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 1,920 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | 0 |
Fair Value | 1,920 |
Corporate Notes/Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 6,980 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | 5 |
Fair Value | $ 6,975 |
Investments - Summarized Financ
Investments - Summarized Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | $ 0 | |
Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | $ 26,597,000 | |
Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 17,702,000 | |
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 8,895,000 | |
Recurring [Member] | Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash equivalents | 10,943,000 | 17,702,000 |
Recurring [Member] | Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash equivalents | $ 10,943,000 | 17,702,000 |
Recurring [Member] | FDIC Guaranteed Certificates of Deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 1,920,000 | |
Recurring [Member] | FDIC Guaranteed Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 1,920,000 | |
Recurring [Member] | Corporate Notes/Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | 6,975,000 | |
Recurring [Member] | Corporate Notes/Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sales securities - current | $ 6,975,000 |
Significant Customers - Additio
Significant Customers - Additional Information (Detail) - Customer | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | |||||
Number of significant customer | 1 | 2 | 2 | 2 | |
Number of other customers accounted for more than 10% of revenue | 0 | 0 | 0 | 0 | |
Trade receivables | 10.00% | 10.00% | |||
Accounts receivable | 64.00% | 64.00% | 57.00% | ||
Customer One [Member] | Customer Concentration Risk [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Revenue | 76.00% | 30.00% | 55.00% | 18.00% | |
Customer Two [Member] | Customer Concentration Risk [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Revenue | 13.00% | 10.00% | 15.00% | ||
All Other Customers [Member] | Customer Concentration Risk [Member] | Maximum [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Revenue | 10.00% | 10.00% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | Sep. 30, 2016shares |
Stockholders' Equity Note [Abstract] | |
Common stock reserved for issuance upon exercise of outstanding common stock options and vesting of restricted stock units | 3,067,034 |
Common stock reserved for future grants of stock options and restricted stock units | 2,125,676 |
Outstanding warrants to purchase common stock | 0 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Detail) - USD ($) | Jun. 24, 2016 | Aug. 02, 2011 | Mar. 31, 2011 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock compensation expense | $ 147,800 | $ 173,000 | $ 460,000 | $ 558,000 | |||
Unrecognized compensation expense related to non vested awards | 1,000,000 | $ 1,000,000 | |||||
Stock-based plan expect to recognize weighted-average period | 2 years 11 months 19 days | ||||||
Historical stock price average, number of years considered | 3 years | ||||||
Intrinsic value of options outstanding | 0 | 0 | $ 0 | 0 | |||
Intrinsic value of options exercisable | 0 | 0 | $ 0 | 0 | |||
Weighted average fair value options granted | $ 0.63 | ||||||
Expected term | 5 years 1 month 6 days | ||||||
Expected volatility | 65.00% | ||||||
Dividend yield | 0.00% | ||||||
Expected forfeiture rate | 23.10% | ||||||
Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Risk-free interest rates | 1.24% | ||||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Risk-free interest rates | 1.73% | ||||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock compensation expense | 153,000 | $ 74,000 | $ 434,000 | $ 220,000 | |||
Restricted Stock Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense related to non vested awards | 290,000 | $ 290,000 | |||||
Stock-based plan expect to recognize weighted-average period | 1 year 9 months 11 days | ||||||
Stock compensation expense | $ 48,600 | $ 187,000 | |||||
2001 Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum number of shares awarded or sold | 1,449,667 | ||||||
Number of share of common stock purchased | 1 | ||||||
Plan expiration date | Aug. 2, 2011 | ||||||
2016 Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Plan expiration date | Mar. 17, 2026 | ||||||
Common stock reserved for future issuance of awards | 2,229,803 | ||||||
2007 Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum number of shares awarded or sold | 4,407,692 | ||||||
Plan expiration date | Jun. 24, 2016 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Activity of Stock Incentive and Equity Plans (Detail) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Shares available for grant | |
Shares available for grant, Beginning balance | 732,270 |
Shares available for grant, Authorized | 1,900,000 |
Shares available for grant, Granted | (1,537,692) |
Shares available for grant, Exercised/Issued | 0 |
Shares available for grant, Cancelled/forfeited | 1,031,098 |
Shares available for grant, Ending balance | 2,125,676 |
Number of options outstanding | |
Number of options outstanding, Beginning balance | 2,851,568 |
Number of options outstanding, Authorized | 0 |
Number of options outstanding, Granted | 943,620 |
Number of options outstanding, Exercised/Issued | 0 |
Number of options outstanding, Cancelled/forfeited | (1,012,821) |
Number of options outstanding, Ending balance | 2,782,367 |
Weighted - average option exercise price | |
Weighted - average option exercise price, Beginning balance | $ / shares | $ 7.07 |
Weighted - average option exercise price, Authorized | $ / shares | 0 |
Weighted - average option exercise price, Granted | $ / shares | 0.63 |
Weighted - average option exercise price, Exercised/Issued | $ / shares | 0 |
Weighted - average option exercise price, Cancelled/forfeited | $ / shares | 9.61 |
Weighted - average option exercise price, Ending balance | $ / shares | $ 3.97 |
Number of restricted stock and board shares issued | |
Number of restricted stock and board shares issued, Beginning balance | 201,455 |
Number of restricted stock and board shares issued, Authorized | 0 |
Number of restricted stock and board shares issued, Granted | 594,072 |
Number of restricted stock and board shares issued, Exercised/Issued | 0 |
Number of restricted stock and board shares issued, Cancelled/forfeited | 0 |
Number of restricted stock and board shares issued, Ending balance | 795,527 |
Restricted Stock Units [Member] | |
Number of restricted stock units outstanding | |
Number of restricted stock units outstanding, Beginning balance | 454,021 |
Number of restricted stock units outstanding, Authorized | 0 |
Number of restricted stock units outstanding, Granted | 0 |
Number of restricted stock units outstanding, Exercised/Issued | (3,702) |
Number of restricted stock units outstanding, Cancelled/forfeited | (165,652) |
Number of restricted stock units outstanding, Ending balance | 284,667 |
Stock Incentive Plans - Summa41
Stock Incentive Plans - Summary of Non-vested Options (Detail) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Options | |
Options, Granted | shares | 943,620 |
Weighted-average exercise price | |
Weighted-average exercise price, Granted | $ 0.63 |
Weighted-average exercise price, Forfeited | $ 9.61 |
Non-vested Options [Member] | |
Options | |
Options, Non-vested, Beginning balance | shares | 1,251,961 |
Options, Granted | shares | 943,620 |
Options, Vested | shares | (189,800) |
Options, Forfeited | shares | (215,065) |
Options, Non-vested, Ending balance | shares | 1,790,716 |
Weighted-average exercise price | |
Weighted-average exercise price, Beginning balance | $ 2.23 |
Weighted-average exercise price, Granted | 0.63 |
Weighted-average exercise price, Vested | 3.77 |
Weighted-average exercise price, Forfeited | 2.63 |
Weighted-average exercise price, Ending balance | $ 1.18 |
Stock Incentive Plans - Summa42
Stock Incentive Plans - Summary of Restricted Stock Units (Detail) - Restricted Stock Units [Member] | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested restricted stock, Beginning balance | shares | 454,021 |
Granted | shares | 0 |
Vested | shares | (3,702) |
Cancelled | shares | (165,652) |
Non-vested restricted stock, Ending balance | shares | 284,667 |
Weighted average price at time of grant, Beginning balance | $ / shares | $ 1.92 |
Weighted average price at time of grant, Granted | $ / shares | 0 |
Weighted average price, Vested | $ / shares | 3.94 |
Weighted-average exercise price, Cancelled | $ / shares | 2.46 |
Weighted average price at time of grant, Ending balance | $ / shares | $ 1.58 |
Aggregate intrinsic value, Ending balance | $ | $ 179,340 |
Stock Incentive Plans - Analysi
Stock Incentive Plans - Analysis of Restricted Stock Units and Restricted Stock Issued (Detail) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested restricted stock, Beginning balance | 15,200 |
Granted | 594,072 |
Vested | (278,011) |
Non-vested restricted stock, Ending balance | 331,261 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Feb. 17, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | |||
Cost of purchasing equipment or components | $ 1,800,000 | ||
Settlement paid | $ 900,000 | ||
Settlement expenses | $ 1,100,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit (expense) | $ 216 | $ 663 | $ 541 | $ 576 |
Effective income tax rate | 0.86% | 1.30% | ||
U.S. federal statutory rate | 35.00% | |||
State (net of federal benefit) statutory rate | 6.20% |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - USD ($) | Jan. 02, 2013 | Aug. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Debt Disclosure [Abstract] | ||||||
Term agreement of senior secured credit facility | 3 years | |||||
Amount of senior secured credit facility | $ 25,000,000 | |||||
Percentage of eligible account receivable | 80.00% | |||||
Percentage of domestically held raw material and finished goods inventory | 35.00% | |||||
Percentage of advances against inventory | 40.00% | 45.00% | ||||
Amount of aggregate outstanding principal on the revolving line of credit | $ 10,000,000 | $ 10,000,000 | ||||
Option to borrow at an interest rate of LIBOR plus | 2.75% | |||||
Option to borrow at an interest rate of Wall Street Journal prime rate plus | 0.50% | |||||
Liquidity rate | $ 20,000,000 | |||||
Borrowing interest rate options | 2.25% | |||||
Percentage of unused revolving line facility fee | 0.375% | 0.50% | ||||
Adjusted quick ratio | 1.40 | |||||
Percentage of maintain operating and other deposit accounts | 25.00% | |||||
Interest expense | $ 28,000 | $ 29,000 | $ 98,000 | $ 76,000 | ||
Interest expense charged on the unused portion of the facility | $ 24,200 | $ 29,000 | $ 87,000 | $ 76,000 |