Rubicon Technology (RBCN) 10-Q 9 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 03, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Rubicon Technology, Inc.
Entity Central Index Key	1,410,172
Trading Symbol	RBCN
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,741,383

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 6,023	$ 11,544
Restricted cash	179	181
Short-term investments	13,489	6,451
Accounts receivable, net	507	718
Inventories	2,788	3,030
Other inventory supplies	206	837
Prepaid expenses and other current assets	830	270
Assets held for sale	10,382	11,202
Total current assets	34,404	34,233
Property and equipment, net	412	815
Total assets	34,816	35,048
Liabilities and stockholders' equity
Accounts payable	169	582
Accrued payroll	35	101
Accrued and other current liabilities	420	430
Corporate income and franchise taxes	273	294
Accrued real estate taxes	149	249
Advance payments	34	59
Total current liabilities	1,080	1,715
Commitments and contingencies
Stockholders' equity
Preferred stock, $.001 par value, 1,000,000 undesignated shares authorized, no shares issued or outstanding
Common stock, $.001 par value, 8,200,000 shares authorized; 2,918,393 and 2,910,334 shares issued; 2,740,909 and 2,732,850 shares outstanding	29	29
Additional paid-in capital	375,903	375,611
Treasury stock, at cost, 177,484 shares	(12,148)	(12,148)
Accumulated other comprehensive loss	(2)	(3)
Accumulated deficit	(330,046)	(330,156)
Total stockholders' equity	33,736	33,333
Total liabilities and stockholders' equity	$ 34,816	$ 35,048

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value	$ .001	$ .001
Preferred stock, undesignated shares authorized	1,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ .001	$ .001
Common stock, shares authorized	8,200,000	8,200,000
Common stock, shares issued	2,918,393	2,910,334
Common stock, shares outstanding	2,740,909	2,732,850
Treasury stock, shares	177,484	177,484

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue	$ 801	$ 1,053	$ 1,840	$ 2,322
Cost of goods sold	921	3,889	1,853	6,739
Gross loss	(120)	(2,836)	(13)	(4,417)
Operating expenses:
General and administrative	692	1,299	1,314	3,110
Sales and marketing	106	194	225	438
Research and development	42	195	75	836
(Gain) loss on disposal of assets	(1,052)	432	(1,614)	1,181
Asset impairment charge		675		675
Income (loss) from operations	92	(5,631)	(13)	(10,657)
Other income:
Interest income	80	28	138	34
Realized gain (loss) on foreign currency translation	(16)	13	(2)	19
Total other income	64	41	136	53
Income (loss) before income taxes	156	(5,590)	123	(10,604)
Income tax expense	(6)	(17)	(13)	(78)
Net income (loss)	$ 150	$ (5,607)	$ 110	$ (10,682)
Net income (loss) per common share
Basic	$ 0.05	$ (2.16)	$ 0.04	$ (4.04)
Diluted	$ 0.05	$ (2.16)	$ 0.04	$ (4.04)
Weighted average common shares outstanding used in computing net income (loss) per common share
Basic	2,733,202	2,608,814	2,732,285	2,641,144
Diluted	2,739,198	2,608,814	2,735,283	2,641,144

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 150	$ (5,607)	$ 110	$ (10,682)
Other comprehensive income (loss):
Unrealized gain on investments, net of tax	1		1	12
Unrealized gain (loss) on currency translation		(2)		8
Other comprehensive income (loss)	1	(2)	1	20
Comprehensive income (loss)	$ 151	$ (5,609)	$ 111	$ (10,662)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net income (loss)	$ 110	$ (10,682)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation and amortization	206	868
Net (gain) loss on disposal of assets	(1,614)	1,181
Asset impairment charge		675
Stock-based compensation	297	623
Changes in operating assets and liabilities:
Accounts receivable	211	2,004
Inventories	242	3,286
Other inventory supplies	72	256
Prepaid expenses and other assets	(560)	692
Accounts payable	(413)	(437)
Accrued payroll	(66)	109
Corporate income and franchise taxes	(21)	(101)
Accrued real estate taxes	(100)	28
Advanced payments	(24)	(12)
Accrued and other current liabilities	(15)	(75)
Net cash used in operating activities	(1,675)	(1,585)
Cash flows from investing activities
Proceeds from disposal of assets	3,195	1,849
Purchases of investments	(7,139)	(9)
Proceeds from sale of investments	102	21
Net cash (used in) provided by investing activities	(3,842)	1,861
Cash flows from financing activities
Taxes paid related to net share settlement of equity awards	(5)	(173)
Net cash used in financing activities	(5)	(173)
Net effect of currency translation	(1)	4
Net increase (decrease) in cash and cash equivalents	(5,523)	107
Cash and cash equivalents, beginning of period	11,725	17,835
Cash and cash equivalents, end of period	$ 6,202	$ 17,942

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2018
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 for the fiscal year ended December 31, 2017. 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 six-month periods ended June 30, 2018 are not necessarily indicative of results that may be expected for the year ending December 31, 2018.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
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 Technology Worldwide LLC, Rubicon Sapphire Technology (Malaysia) SDN BHD and Rubicon Technology Hong Kong Limited. All intercompany transactions and balances have been eliminated in consolidation. Investments The Company invests available cash primarily in investment grade commercial paper, corporate notes, FDIC guaranteed certificates of deposit, common stock, 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 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. Accounts receivable The majority of the Company’s accounts receivable is due from defense sub-contractors, industrial manufacturers, fabricators and resellers. 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. Losses from credit sales are provided for in the financial statements. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time a customer’s account 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 such write-offs, net of payments received, are recorded as a reduction to the allowance. The following table shows the activity of the allowance for doubtful accounts: June 30, December 31, (in thousands) Beginning balance $ 7 $ 31 Charges to costs and expenses (2 ) (20 ) Accounts charged off, less recoveries — (4 ) Ending balance $ 5 $ 7 Inventories Inventories are valued at the lower of cost or net realizable value. Raw materials cost is determined using the first-in, first-out method, and work-in-process and finished goods costs are determined on a standard cost basis, which includes materials, labor and manufacturing 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. 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. Inventories consisted of the following: June 30, 2018 December 31, 2017 (in thousands) Raw materials $ 476 $ 476 Work-in-process 2,109 2,334 Finished goods 203 220 $ 2,788 $ 3,030 Property and equipment Property and equipment consisted of the following: June 30, 2018 December 31, 2017 (in thousands) Machinery, equipment and tooling $ 5,435 $ 6,105 Leasehold improvements 4,624 4,624 Information systems 819 819 Furniture and fixtures 8 8 Total cost 10,886 11,556 Accumulated depreciation and amortization (10,474 ) (10,741 ) Property and equipment, net $ 412 $ 815 A ssets held for sale and long-lived assets 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. The estimated fair value of assets is determined using appraisal techniques, which assume the highest and best use of the asset by market participants, considering the use of the asset that is physically possible, legally permissible, and financially feasible at the measurement date. Any impairment losses are recorded as operating expenses, which reduce net income. In connection with the Company’s decision to limit its focus to the optical and industrial sapphire markets and exit the LED market, the Company developed a plan to close its Malaysia facility, scale down and consolidate remaining operations in the U.S. and sell additional assets that would not be needed. The Company evaluated its U.S. and Malaysia asset portfolios to identify assets needed for its current business strategy and excess assets that were no longer needed. The Company determined it had excess machinery, equipment and facilities. Excess U.S. and Malaysia assets were evaluated based on assuming an orderly liquidation plan, which considers economic obsolescence and sales of comparable equipment, as it is the Company’s intention to sell these assets. Additionally, the Company evaluated its U.S. assets continuing to be used in operations using a cost and market approach to determine the current fair value. As a result, for the year ended December 31, 2017, the Company recorded an impairment charge of $1.0 million on lower than expected sales prices for certain machinery and equipment held for sale, and identification of assets that will not be needed to support the Company’s current operations. Additionally, for the year ended December 31, 2017, the Company recorded an impairment charge of $4.0 million on its U.S. and Malaysia land and building assets on lower than expected sale price. At June 30, 2018, the Company reviewed the current fair value of its assets and concluded no adjustments were needed. 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 value. In the six months ended June 30, 2018, the Company completed individual sales and held auctions for assets located at each of its U.S. properties, resulting in the sale of a portion of its excess U.S. equipment and consumables, which had a total net book value of $1.5 million. Additionally, in the six months ended June 30, 2018, the Company completed sales of Malaysia equipment with a total net book value of $131,000. Unsold excess equipment continued to be classified as current assets held for sale at June 30, 2018. Based on these sales, a gain on disposal of assets of $1.6 million was recorded for the six months ended June 30, 2018. The Company is actively pursuing the sale or lease of its 134,400 square-foot manufacturing and office facility located in Batavia, Illinois, a parcel of extra land the Company owns in Batavia, Illinois, and a 65,000 square-foot facility located in Penang, Malaysia. Although the Company cannot assure the timing of these sales, as it is the Company’s intention to complete these sales within the next twelve-month period, hence, these properties were classified as current assets held for sale at June 30, 2018 and December 31, 2017. The Company cannot guarantee that it will be able to successfully complete the sale or lease of any assets. Revenue recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue From Contracts with Customers 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 deliverables under the contract included development of machinery and technology to be able to produce large area sapphire windows, prove the concept of growing large windows with that equipment and delivery of large-area sapphire windows. The Company records research and development revenue on a gross basis as costs are incurred, plus a portion of the fixed fee over a period of time as the obligations (machinery, proof of concept and finished windows) are completed following the input method of measuring progress which recognizes revenue as resources are consumed, labor hours expended and costs are incurred. For the three and six months ended June 30, 2018, the same amount of revenue of $56,000 was recorded, as no revenue was recorded for the three months ended March 31, 2018. For the three and six months ended June 30, 2017, $3,000 and $29,000 of revenue was recorded, respectively. To date, the Company has recorded $4.7 million in revenue and the total value of the contract is $4.7 million. At December 31, 2017, the estimated costs to complete the contract were in excess of the contract value. For the year ended December 31, 2017, the Company recorded estimated costs expected to be incurred in excess of this contract value of $243,000. No additional adjustments for the excess contract costs were recorded for the three and six months ended June 30, 2018. The Company does not provide maintenance or other services and it does not have sales that involve multiple elements or deliverables. Net income (loss) per common share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) 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 (a) any outstanding stock options based on the treasury stock method and (b) restricted stock units (“RSU”). Diluted net income (loss) per share is the same as basic net income (loss) per share for the three and six months ended June 30, 2018 and 2017 because the effects of potentially dilutive securities do not have a material impact on the calculation of diluted net income (loss) per share. New accounting pronouncements adopted 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 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), In August 2016, the FASB issued ASU No. 2016-15 (“ASU 2016-15”), Statement of Cash Flows (Topic230): Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU No. 2016-18 (“ASU 2016-18”), Statement of Cash Flows (Topic230): Restricted Cash. Recent accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) In February 2018, the FASB issued ASU No. 2018-02 (“ASU 2018-02), Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Comprehensive Income In March 2018, the FASB issued ASU No. 2018-05 (“ASU 2018-05), Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 Income Taxes

Investments

Investments	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
INVESTMENTS	3. INVESTMENTS The Company invests its available cash primarily in investment grade commercial paper, corporate notes, FDIC guaranteed certificates of deposit, common stock and government securities. The Company’s investments are classified as available-for-sale securities and are carried at fair value with unrealized gains and losses recorded in accumulated other comprehensive income (loss). The following table presents the amortized cost and gross unrealized gains and losses on all securities at June 30, 2018: Amortized Gross Gross Fair (in thousands) Short-term investments: U.S. Treasury securities $ 1,499 $ — $ — $ 1,499 Commercial paper 11,730 $ — (1 ) $ 11,729 Corporate notes / bonds 261 — — 261 Total short-term investments $ 13,490 $ — $ (1 ) $ 13,489 The following table presents the amortized cost and gross unrealized gains and losses on all securities at December 31, 2017: Amortized Gross Gross Fair (in thousands) Short-term investments: Commercial paper $ 4,994 $ — $ (1 ) $ 4,993 Corporate notes / bonds 1,458 — — 1,458 Total short-term investments $ 6,452 $ — $ (1 ) $ 6,451 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 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, FDIC guaranteed certificates of deposits, 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 June 30, 2018: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 3,514 $ — $ — $ 3,514 Investments: Available-for-sales securities — current: U.S. Treasury securities — 1,499 — 1,499 Commercial paper — 11,729 — 11,729 Corporate notes / bonds — 261 — 261 Total $ 3,514 $ 13,489 $ — $ 17,003 The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2017: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 4,575 $ — $ — $ 4,575 Investments: Available-for-sales securities — current: Commercial paper — 4,993 — 4,993 Corporate notes / bonds — 1,458 — 1,458 Total $ 4,575 $ 6,451 $ — $ 11,026 There are no terms or conditions restricting the Company from redeeming any of its investments. In addition to the debt securities noted above, the Company had approximately $2.5 million and $6.9 million of time deposits included in cash and cash equivalents as of June 30, 2018 and December 31, 2017, respectively.

Significant Customers

Significant Customers	6 Months Ended
	Jun. 30, 2018
Significant Customers [Abstract]
SIGNIFICANT CUSTOMERS	4. SIGNIFICANT CUSTOMERS For the three months ended June 30, 2018, the Company had three customers individually that accounted for approximately 21%, 15% and 13% of revenue. For the three months ended June 30, 2017, the Company had three customers individually that accounted for approximately 17%, 12% and 10% of revenue. For the six months ended June 30, 2018, the Company had three customers that accounted for approximately 15%, 15% and 10% of revenue. For the six months ended June 30, 2017, the Company had four customers that accounted for approximately 17%, 13%, 11% and 11% of revenue. No other customer accounted for 10% or more of the Company’s revenues during the three and six months ended June 30, 2018 and 2017. Customers individually representing more than 10% of trade receivables accounted for approximately 60% and 69% of accounts receivable as of June 30, 2018 and December 31, 2017, respectively.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
STOCKHOLDERS' EQUITY	5. STOCKHOLDERS’ EQUITY Common shares reserved As of June 30, 2018, the Company had reserved 130,489 shares of common stock for issuance upon the exercise of outstanding common stock options and vesting of restricted stock units. Also, 286,597 shares of the Company’s common stock were reserved for future grants of stock options and restricted stock units (or other similar equity instruments) under the Rubicon Technology, Inc. 2016 Stock Incentive Plan (the “2016 Plan”) as of June 30, 2018. Preferred stock At the Company’s annual meeting of stockholders held on May 10, 2018, the Company’s stockholders approved an amendment to the Company’s Ninth Amended and Restated Certificate of Incorporation (as amended, the “Certificate of Incorporation”) to decrease the Company’s authorized number of shares of preferred stock from 5,000,000 shares to 1,000,000 shares. The Company filed with the Secretary of State of the State of Delaware a Certificate of Amendment to decrease the authorized number of preferred shares, consequently reducing the number of total authorized shares from 13,200,000 to 9,200,000.

Stock Incentive Plans

Stock Incentive Plans	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK INCENTIVE PLANS	6. STOCK INCENTIVE PLANS 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 (“RSUs”), performance awards and bonus shares. The maximum number of shares that could be awarded under the 2007 Plan was 440,769 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 Rubicon Technology, Inc. 2016 Stock Incentive Plan, (the “2016 Plan”). Any existing awards under the 2007 Plan remain outstanding in accordance with their current terms under the 2007 Plan. In June 2016, the Company’s 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, RSUs, performance awards and bonus shares. The Compensation Committee of the Board 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, 222,980 shares of the Company’s common stock plus any shares subject to outstanding awards under the 2007 Plan that subsequently expire 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. 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 of 24.43% is based on the history of forfeited options. The expense is allocated using the straight-line method. For the three and six months ended June 30, 2018, the Company recorded $13,000 and $30,000, respectively, of stock option compensation expense. For the three and six months ended June 30, 2017, the Company recorded $40,000 and $238,000, respectively, of stock option compensation expense. As of June 30, 2018, the Company had $66,000 of total unrecognized compensation cost related to non-vested stock option awards granted under the Company’s stock-based plans that it expects to recognize over a weighted-average period of 1.42 years. Pursuant to an employment agreement in March 2017, which was subsequently amended on May 12, 2017, the Company granted 30,902 and 59,098 RSUs to a key executive in the six months ended June 30, 2018 and 2017, respectively. The Company used a Monte Carlo simulation model valuation technique to determine the fair value of RSUs granted because the awards vest based upon achievement of market price targets. The RSUs vest in the amounts set forth below on the first date the 15-trading day average closing price of the Company’s common stock equals or exceeds the corresponding target price for the common stock before May 12, 2021. The following table summarizes the award vesting terms for the RSUs granted on January 1, 2018: Number of RSUs Target 902 $ 11.00 15,000 $ 12.50 15,000 $ 14.00 The following table summarizes the award vesting terms for the RSUs granted on March 17, 2017: Number of RSUs Target 15,000 $ 6.50 15,000 $ 8.00 15,000 $ 9.50 14,098 $ 11.00 At the time the negotiation of the terms of the employment agreement began, the closing price of the common stock was $5.50. On the date of grant, the closing price of the common stock was $6.30. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award and calculates the fair value of each RSU. The Company used the following assumptions in determining the fair value of the RSUs: Granted January March Daily expected stock price volatility 4.2806 % 4.4237 % Daily expected mean return on equity (0.2575 %) (0.2226 %) Daily expected dividend yield 0.0 % 0.0 % Average daily risk-free interest rate 0.0078 % 0.0063 % The daily expected stock price volatility is based on a four-year historical volatility of the Company’s common stock. The daily expected dividend yield is based on annual expected dividend payments. The average daily risk-free interest rate is based on the three-year treasury yield as of the grant date. Each of the tranches is calculated to have its own fair value and requisite service period. The fair value of each tranche is amortized over the requisite or derived service period which is up to four years. The RSUs granted in January 2018 and March 2017 had a grant date fair value of $209,000 and $323,000, respectively. The following table summarizes the activity of the stock incentive and equity plans as of June 30, 2018 and changes during the six months then ended: Shares available for grant Number of options outstanding Weighted- average option exercise price Number of restricted stock and board shares issued Number of restricted stock units outstanding At January 1, 2018 274,494 125,564 $ 19.53 97,692 22,384 Granted (36,953 ) — — 1,878 35,075 Exercised/issued — — — — (3,477 ) Cancelled/forfeited 49,056 (46,073 ) 23.94 — (2,983 ) At June 30, 2018 286,597 79,491 $ 21.84 99,570 50,999 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 value of the common stock at June 30, 2018 and 2017, there was no intrinsic value for options outstanding. A summary of the Company’s non-vested options during the six months ended June 30, 2018 is presented below: Options Weighted- average exercise price Non-vested at January 1, 2018 46,842 $ 8.26 Granted — — Vested (250 ) 11.40 Forfeited (23,813 ) 9.07 Non-vested at June 30, 2018 22,779 $ 7.38 For the three and six months ended June 30, 2018, the Company recorded $115,000 and $206,000, respectively, of RSU expense. For the three and six months ended June 30, 2017, the Company recorded $188,000 and $324,000, respectively, of RSU expense. As of June 30, 2018, there was $52,000 of unrecognized compensation cost related to the non-vested RSUs. This cost is expected to be recognized over a weighted-average period of 0.24 years. A summary of the Company’s restricted stock units is as follows: RSUs outstanding Weighted average price at time of grant Aggregate value Non-vested restricted stock units as of January 1, 2018 22,384 $ 4.65 Granted 35,075 7.89 Vested (3,477 ) 7.05 Cancelled (2,983 ) 8.88 Non-vested at June 30, 2018 50,999 $ 6.46 $ 329,614 For the three and six months ended June 30, 2018, the Company recorded $4,000 and $61,000, respectively, of stock compensation expense related to restricted stock. For the three and six months ended June 30, 2017, the Company recorded $57,000 and $61,000, respectively, of stock compensation expense related to restricted stock. The Company’s board of directors are compensated partially in cash and partially in restricted stock. As such, for the six months ended June 30, 2018, 1,878 shares of restricted common stock were issued to outside directors. An analysis of restricted stock issued is as follows: Non-vested restricted stock as of January 1, 2018 4,904 Granted 1,878 Vested (4,328 ) Non-vested restricted stock as of June 30, 2018 2,454

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	7. COMMITMENTS AND CONTINGENCIES 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, will have a material adverse effect on the financial condition or results of operations of the Company.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	8. INCOME TAXES On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”) which, among other provisions, reduced the U.S. corporate tax rate form 35% to 21% effective January 1, 2018. The SEC issued guidance on accounting for the tax effects of the Act. The guidance allows the Company to record provisional amounts for those impacts, with the requirement that the accounting be completed in a period not to exceed one year from the date of enactment. The Company has not completed its accounting for the tax effects of enactment of the Act; however, the Company has made reasonable estimates of the effects on its existing deferred tax balances and the transition tax or deemed repatriation tax. Estimates will true up within the measurement period with the completion of filing of the federal and state tax returns. 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 June 30, 2018, a valuation allowance has been included in the 2018 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 available evidence. At June 30, 2018, 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 six months ended June 30, 2018 is based on an estimated combined statutory effective tax rate. The Company recorded for the three and six months ended June 30, 2018 a tax expense of $6,000 and $13,000, respectively, for an effective tax rate of 3.8% and 10.2%, respectively. For the three and six months ended June 30, 2018, the difference between the Company’s effective tax rate and the U.S. federal 21% statutory rate and state 6.2% (net of federal benefit) statutory rate was primarily related to U.S. and Malaysia valuation allowances, Malaysia foreign tax rate differential, and Malaysia withholding taxes on intercompany loan interest.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
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 Technology Worldwide LLC, Rubicon Sapphire Technology (Malaysia) SDN BHD and Rubicon Technology Hong Kong Limited. All intercompany transactions and balances have been eliminated in consolidation.
Investments	Investments The Company invests available cash primarily in investment grade commercial paper, corporate notes, FDIC guaranteed certificates of deposit, common stock, 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 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.
Accounts receivable	Accounts receivable The majority of the Company’s accounts receivable is due from defense sub-contractors, industrial manufacturers, fabricators and resellers. 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. Losses from credit sales are provided for in the financial statements. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time a customer’s account 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 such write-offs, net of payments received, are recorded as a reduction to the allowance. The following table shows the activity of the allowance for doubtful accounts: June 30, 2018 December 31, 2017 (in thousands) Beginning balance $ 7 $ 31 Charges to costs and expenses (2 ) (20 ) Accounts charged off, less recoveries — (4 ) Ending balance $ 5 $ 7
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value. Raw materials cost is determined using the first-in, first-out method, and work-in-process and finished goods costs are determined on a standard cost basis, which includes materials, labor and manufacturing 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. 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. Inventories consisted of the following: June 30, 2018 December 31, 2017 (in thousands) Raw materials $ 476 $ 476 Work-in-process 2,109 2,334 Finished goods 203 220 $ 2,788 $ 3,030
Property and equipment	Property and equipment Property and equipment consisted of the following: June 30, 2018 December 31, 2017 (in thousands) Machinery, equipment and tooling $ 5,435 $ 6,105 Leasehold improvements 4,624 4,624 Information systems 819 819 Furniture and fixtures 8 8 Total cost 10,886 11,556 Accumulated depreciation and amortization (10,474 ) (10,741 ) Property and equipment, net $ 412 $ 815
Assets held for sale and long-lived assets	A ssets held for sale and long-lived assets 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. The estimated fair value of assets is determined using appraisal techniques, which assume the highest and best use of the asset by market participants, considering the use of the asset that is physically possible, legally permissible, and financially feasible at the measurement date. Any impairment losses are recorded as operating expenses, which reduce net income. In connection with the Company’s decision to limit its focus to the optical and industrial sapphire markets and exit the LED market, the Company developed a plan to close its Malaysia facility, scale down and consolidate remaining operations in the U.S. and sell additional assets that would not be needed. The Company evaluated its U.S. and Malaysia asset portfolios to identify assets needed for its current business strategy and excess assets that were no longer needed. The Company determined it had excess machinery, equipment and facilities. Excess U.S. and Malaysia assets were evaluated based on assuming an orderly liquidation plan, which considers economic obsolescence and sales of comparable equipment, as it is the Company’s intention to sell these assets. Additionally, the Company evaluated its U.S. assets continuing to be used in operations using a cost and market approach to determine the current fair value. As a result, for the year ended December 31, 2017, the Company recorded an impairment charge of $1.0 million on lower than expected sales prices for certain machinery and equipment held for sale, and identification of assets that will not be needed to support the Company’s current operations. Additionally, for the year ended December 31, 2017, the Company recorded an impairment charge of $4.0 million on its U.S. and Malaysia land and building assets on lower than expected sale price. At June 30, 2018, the Company reviewed the current fair value of its assets and concluded no adjustments were needed. 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 value. In the six months ended June 30, 2018, the Company completed individual sales and held auctions for assets located at each of its U.S. properties, resulting in the sale of a portion of its excess U.S. equipment and consumables, which had a total net book value of $1.5 million. Additionally, in the six months ended June 30, 2018, the Company completed sales of Malaysia equipment with a total net book value of $131,000. Unsold excess equipment continued to be classified as current assets held for sale at June 30, 2018. Based on these sales, a gain on disposal of assets of $1.6 million was recorded for the six months ended June 30, 2018. The Company is actively pursuing the sale or lease of its 134,400 square-foot manufacturing and office facility located in Batavia, Illinois, a parcel of extra land the Company owns in Batavia, Illinois, and a 65,000 square-foot facility located in Penang, Malaysia. Although the Company cannot assure the timing of these sales, as it is the Company’s intention to complete these sales within the next twelve-month period, hence, these properties were classified as current assets held for sale at June 30, 2018 and December 31, 2017. The Company cannot guarantee that it will be able to successfully complete the sale or lease of any assets.
Revenue recognition	Revenue recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue From Contracts with Customers 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 deliverables under the contract included development of machinery and technology to be able to produce large area sapphire windows, prove the concept of growing large windows with that equipment and delivery of large-area sapphire windows. The Company records research and development revenue on a gross basis as costs are incurred, plus a portion of the fixed fee over a period of time as the obligations (machinery, proof of concept and finished windows) are completed following the input method of measuring progress which recognizes revenue as resources are consumed, labor hours expended and costs are incurred. For the three and six months ended June 30, 2018, the same amount of revenue of $56,000 was recorded, as no revenue was recorded for the three months ended March 31, 2018. For the three and six months ended June 30, 2017, $3,000 and $29,000 of revenue was recorded, respectively. To date, the Company has recorded $4.7 million in revenue and the total value of the contract is $4.7 million. At December 31, 2017, the estimated costs to complete the contract were in excess of the contract value. For the year ended December 31, 2017, the Company recorded estimated costs expected to be incurred in excess of this contract value of $243,000. No additional adjustments for the excess contract costs were recorded for the three and six months ended June 30, 2018. The Company does not provide maintenance or other services and it does not have sales that involve multiple elements or deliverables.
Net income (loss) per common share	Net income (loss) per common share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) 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 (a) any outstanding stock options based on the treasury stock method and (b) restricted stock units (“RSU”). Diluted net income (loss) per share is the same as basic net income (loss) per share for the three and six months ended June 30, 2018 and 2017 because the effects of potentially dilutive securities do not have a material impact on the calculation of diluted net income (loss) per share.
New accounting pronouncements adopted	New accounting pronouncements adopted 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 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), In August 2016, the FASB issued ASU No. 2016-15 (“ASU 2016-15”), Statement of Cash Flows (Topic230): Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU No. 2016-18 (“ASU 2016-18”), Statement of Cash Flows (Topic230): Restricted Cash.
Recent accounting pronouncements	Recent accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) In February 2018, the FASB issued ASU No. 2018-02 (“ASU 2018-02), Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Comprehensive Income In March 2018, the FASB issued ASU No. 2018-05 (“ASU 2018-05), Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 Income Taxes

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Summary of allowance for doubtful accounts	June 30, 2018 December 31, 2017 (in thousands) Beginning balance $ 7 $ 31 Charges to costs and expenses (2 ) (20 ) Accounts charged off, less recoveries — (4 ) Ending balance $ 5 $ 7
Schedule of inventories	June 30, 2018 December 31, 2017 (in thousands) Raw materials $ 476 $ 476 Work-in-process 2,109 2,334 Finished goods 203 220 $ 2,788 $ 3,030
Schedule of property and equipment	June 30, 2018 December 31, 2017 (in thousands) Machinery, equipment and tooling $ 5,435 $ 6,105 Leasehold improvements 4,624 4,624 Information systems 819 819 Furniture and fixtures 8 8 Total cost 10,886 11,556 Accumulated depreciation and amortization (10,474 ) (10,741 ) Property and equipment, net $ 412 $ 815

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Summary of 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 June 30, 2018: Amortized Gross Gross Fair (in thousands) Short-term investments: U.S. Treasury securities $ 1,499 $ — $ — $ 1,499 Commercial paper 11,730 $ — (1 ) $ 11,729 Corporate notes / bonds 261 — — 261 Total short-term investments $ 13,490 $ — $ (1 ) $ 13,489 The following table presents the amortized cost and gross unrealized gains and losses on all securities at December 31, 2017: Amortized Gross Gross Fair (in thousands) Short-term investments: Commercial paper $ 4,994 $ — $ (1 ) $ 4,993 Corporate notes / bonds 1,458 — — 1,458 Total short-term investments $ 6,452 $ — $ (1 ) $ 6,451
Summary of financial assets measured at fair value on a recurring basis	The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2018: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 3,514 $ — $ — $ 3,514 Investments: Available-for-sales securities — current: U.S. Treasury securities — 1,499 — 1,499 Commercial paper — 11,729 — 11,729 Corporate notes / bonds — 261 — 261 Total $ 3,514 $ 13,489 $ — $ 17,003 The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2017: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 4,575 $ — $ — $ 4,575 Investments: Available-for-sales securities — current: Commercial paper — 4,993 — 4,993 Corporate notes / bonds — 1,458 — 1,458 Total $ 4,575 $ 6,451 $ — $ 11,026

Stock Incentive Plans (Tables)

Stock Incentive Plans (Tables)	6 Months Ended
	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of award vesting terms for RSUs granted	The following table summarizes the award vesting terms for the RSUs granted on January 1, 2018: Number of RSUs Target price 902 $ 11.00 15,000 $ 12.50 15,000 $ 14.00 The following table summarizes the award vesting terms for the RSUs granted on March 17, 2017: Number of RSUs Target price 15,000 $ 6.50 15,000 $ 8.00 15,000 $ 9.50 14,098 $ 11.00
Schedule of fair value of restricted stock units	Granted January March Daily expected stock price volatility 4.2806 % 4.4237 % Daily expected mean return on equity (0.2575 %) (0.2226 %) Daily expected dividend yield 0.0 % 0.0 % Average daily risk-free interest rate 0.0078 % 0.0063 %
Schedule of activity of stock incentive and equity plans	Shares available for grant Number of options outstanding Weighted- average option exercise price Number of restricted stock and board shares issued Number of restricted stock units outstanding At January 1, 2018 274,494 125,564 $ 19.53 97,692 22,384 Granted (36,953 ) — — 1,878 35,075 Exercised/issued — — — — (3,477 ) Cancelled/forfeited 49,056 (46,073 ) 23.94 — (2,983 ) At June 30, 2018 286,597 79,491 $ 21.84 99,570 50,999
Schedule of non-vested options	Options Weighted- average exercise price Non-vested at January 1, 2018 46,842 $ 8.26 Granted — — Vested (250 ) 11.40 Forfeited (23,813 ) 9.07 Non-vested at June 30, 2018 22,779 $ 7.38
Summary of restricted stock units	RSUs outstanding Weighted average price at time of grant Aggregate intrinsic value Non-vested restricted stock units as of January 1, 2018 22,384 $ 4.65 Granted 35,075 7.89 Vested (3,477 ) 7.05 Cancelled (2,983 ) 8.88 Non-vested at June 30, 2018 50,999 $ 6.46 $ 329,614
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of restricted stock units	Non-vested restricted stock as of January 1, 2018 4,904 Granted 1,878 Vested (4,328 ) Non-vested restricted stock as of June 30, 2018 2,454

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Beginning balance	$ 7	$ 31
Charges to costs and expenses	(2)	(20)
Accounts charged off, less recoveries		(4)
Ending balance	$ 5	$ 7

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Raw materials	$ 476	$ 476
Work-in-process	2,109	2,334
Finished goods	203	220
Inventories	$ 2,788	$ 3,030

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Summary Of Significant Accounting Policies [Line Items]
Total cost	$ 10,886	$ 11,556
Accumulated depreciation and amortization	(10,474)	(10,741)
Property and equipment, net	412	815
Machinery, equipment and tooling [Member]
Summary Of Significant Accounting Policies [Line Items]
Total cost	5,435	6,105
Leasehold improvements [Member]
Summary Of Significant Accounting Policies [Line Items]
Total cost	4,624	4,624
Information systems [Member]
Summary Of Significant Accounting Policies [Line Items]
Total cost	819	819
Furniture and fixtures [Member]
Summary Of Significant Accounting Policies [Line Items]
Total cost	$ 8	$ 8

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details Textual) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018USD ($)ft²	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)ft²	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Summary of Significant Accounting Policies (Textual)
Asset impairment charges		$ 675		$ 675	$ 1,000
Area of land | ft²	134,400		134,400
Revenue recognized	$ 56	$ 3	$ 56	$ 29
Total value of the contract	4,700		4,700
Value of contract recorded			4,700
Estimated contract value					243
Gain on disposal of assets			1,600
Total net book value	$ 1,500		$ 1,500
Additional impairment charges					$ 4,000
Malaysia [Member]
Summary of Significant Accounting Policies (Textual)
Area of land | ft²	65,000		65,000
Total net book value	$ 131		$ 131

Investments (Details)

Investments (Details) - Short-term investments [Member] - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Amortized cost	$ 13,490	$ 6,452
Gross unrealized gains
Gross unrealized losses	(1)	(1)
Fair value	13,489	6,451
U.S. Treasury securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized cost	1,499
Gross unrealized gains
Gross unrealized losses
Fair value	1,499
Commercial paper [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized cost	11,730	4,994
Gross unrealized gains
Gross unrealized losses	(1)	(1)
Fair value	11,729	4,993
Corporate notes / bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized cost	261	1,458
Gross unrealized gains
Gross unrealized losses
Fair value	$ 261	$ 1,458

Investments (Details 1)

Investments (Details 1) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Investments:
Total	$ 17,003	$ 11,026
Fair value on a recurring basis [Member] | Corporate notes/bonds [Member]
Investments:
Available-for-sales securities - current:	261	1,458
Fair value on a recurring basis [Member] | U.S. Treasury securities [Member]
Investments:
Available-for-sales securities - current:	1,499
Fair value on a recurring basis [Member] | Commercial paper [Member]
Investments:
Available-for-sales securities - current:	11,729	4,993
Level 1 [Member]
Investments:
Total	3,514	4,575
Level 1 [Member] | Fair value on a recurring basis [Member] | Corporate notes/bonds [Member]
Investments:
Available-for-sales securities - current:
Level 1 [Member] | Fair value on a recurring basis [Member] | U.S. Treasury securities [Member]
Investments:
Available-for-sales securities - current:
Level 1 [Member] | Fair value on a recurring basis [Member] | Commercial paper [Member]
Investments:
Available-for-sales securities - current:
Level 2 [Member]
Investments:
Total	13,489	6,451
Level 2 [Member] | Fair value on a recurring basis [Member] | Corporate notes/bonds [Member]
Investments:
Available-for-sales securities - current:	261	1,458
Level 2 [Member] | Fair value on a recurring basis [Member] | U.S. Treasury securities [Member]
Investments:
Available-for-sales securities - current:	1,499
Level 2 [Member] | Fair value on a recurring basis [Member] | Commercial paper [Member]
Investments:
Available-for-sales securities - current:	11,729	4,993
Level 3 [Member]
Investments:
Total
Level 3 [Member] | Fair value on a recurring basis [Member] | Corporate notes/bonds [Member]
Investments:
Available-for-sales securities - current:
Level 3 [Member] | Fair value on a recurring basis [Member] | U.S. Treasury securities [Member]
Investments:
Available-for-sales securities - current:
Level 3 [Member] | Fair value on a recurring basis [Member] | Commercial paper [Member]
Investments:
Available-for-sales securities - current:
Money market funds [Member] | Fair value on a recurring basis [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Cash equivalents:	3,514	4,575
Money market funds [Member] | Level 1 [Member] | Fair value on a recurring basis [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Cash equivalents:	3,514	4,575
Money market funds [Member] | Level 2 [Member] | Fair value on a recurring basis [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Cash equivalents:
Money market funds [Member] | Level 3 [Member] | Fair value on a recurring basis [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Cash equivalents:

Investments (Details Textual)

Investments (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Investments (Textual)
Time deposits included in cash and cash equivalents	$ 2,500	$ 6,900

Significant Customers (Details)

Significant Customers (Details) - Customer / Number	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Revenue [Member]
Significant Customers (Textual)
Number of customers	3	3	3	4
Concentration risk, description			No other customer accounted for 10% or more of the Company’s revenues.	No other customer accounted for 10% or more of the Company’s revenues.
Revenue [Member] | Customer One [Member]
Significant Customers (Textual)
Concentration risk, percentage	21.00%	17.00%	15.00%	17.00%
Revenue [Member] | Customer Two [Member]
Significant Customers (Textual)
Concentration risk, percentage	15.00%	12.00%	15.00%	13.00%
Revenue [Member] | Customer Three [Member]
Significant Customers (Textual)
Concentration risk, percentage	13.00%	10.00%	10.00%	11.00%
Revenue [Member] | Customer Four [Member]
Significant Customers (Textual)
Concentration risk, percentage				11.00%
Accounts receivable [Member]
Significant Customers (Textual)
Concentration risk, description			Customers individually representing more than 10% of trade receivables.		Customers individually representing more than 10% of trade receivables.
Accounts receivable [Member] | Customer [Member]
Significant Customers (Textual)
Concentration risk, percentage			60.00%		69.00%

Stockholders' Equity (Details)

Stockholders' Equity (Details) - shares	1 Months Ended
	May 10, 2018	Jun. 30, 2018
Stockholders' Equity (Textual)
Reserved common stock shares for issuance		130,489
Common stock reserved for future grants		286,597
Ninth Amended and Restated Certificate of Incorporation [Member]
Stockholders' Equity (Textual)
Description of preferred stock, authorized	The Company’s stockholders approved an amendment to the Company’s Ninth Amended and Restated Certificate of Incorporation (as amended, the “Certificate of Incorporation”) to decrease the Company’s authorized number of shares of preferred stock from 5,000,000 shares to 1,000,000 shares.
Secretary of State Delaware Certificate [Member]
Stockholders' Equity (Textual)
Description of preferred stock, authorized	The Company filed with the Secretary of State of the State of Delaware a Certificate of Amendment to decrease the authorized number of preferred shares, consequently reducing the number of total authorized shares from 13,200,000 to 9,200,000.

Stock Incentive Plans (Details)

Stock Incentive Plans (Details) - $ / shares	Jan. 02, 2018	Mar. 17, 2017
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs	902
Target price	$ 11
Restricted Stock Units (RSUs) One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs	15,000
Target price	$ 12.50
Restricted Stock Units (RSUs) Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs	15,000
Target price	$ 14
Restricted Stock Units (RSUs) Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs		15,000
Target price		$ 6.50
Restricted Stock Units (RSUs) Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs		15,000
Target price		$ 8
Restricted Stock Units (RSUs) Five [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs		15,000
Target price		$ 9.50
Restricted Stock Units (RSUs) Six [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs		14,098
Target price		$ 11

Stock Incentive Plans (Details

Stock Incentive Plans (Details 1) - Restricted Stock Units (Granted) [Member]	Jan. 31, 2018	Mar. 31, 2017
Daily expected stock price volatility	4.2806%	4.4237%
Daily expected mean return on equity	(0.2575%)	(0.2226%)
Daily expected dividend yield	0.00%	0.00%
Average daily risk-free interest rate	0.0078%	0.0063%

Stock Incentive Plans (Detail30

Stock Incentive Plans (Details 2) - Stock incentive and equity plans [Member]	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant, Beginning	274,494
Shares available for grant, Granted	(36,953)
Shares available for grant, Exercised/issued
Shares available for grant, Cancelled/forfeited	49,056
Shares available for grant, Ending	286,597
Number of options outstanding, Beginning	125,564
Number of options outstanding, Granted
Number of options outstanding, Exercised/issued
Number of options outstanding, Cancelled/forfeited	(46,073)
Number of options outstanding, Ending	79,491
Weighted-average option exercise price, Beginning | $ / shares	$ 19.53
Weighted-average option exercise price, Granted | $ / shares
Weighted-average option exercise price, Exercised/issued | $ / shares
Weighted-average option exercise price, Cancelled/forfeited | $ / shares	23.94
Weighted-average option exercise price, Ending | $ / shares	$ 21.84
Number of restricted stock and board shares issued, Beginning	97,692
Number of restricted stock and board shares issued, Granted	1,878
Number of restricted stock and board shares issued, Exercised/issued
Number of restricted stock and board shares issued, Cancelled/forfeited
Number of restricted stock and board shares issued, Ending	99,570
Number of restricted stock units outstanding, Beginning	22,384
Number of restricted stock units outstanding, Granted	35,075
Number of restricted stock units outstanding, Exercised/issued	(3,477)
Number of restricted stock units outstanding, Cancelled/forfeited	(2,983)
Number of restricted stock units outstanding, Ending	50,999

Stock Incentive Plans (Detail31

Stock Incentive Plans (Details 3) - Non-vested options [Member]	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Options
Non-vested, Beginning | shares	46,842
Granted | shares
Vested | shares	(250)
Forfeited | shares	(23,813)
Non-vested, Ending | shares	22,779
Weighted-average exercise price
Non-vested, Beginning | $ / shares	$ 8.26
Granted | $ / shares
Vested | $ / shares	11.40
Forfeited | $ / shares	9.07
Non-vested, Ending | $ / shares	$ 7.38

Stock Incentive Plans (Detail32

Stock Incentive Plans (Details 4) - Restricted Stock Units [Member] $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs outstanding, Non-vested restricted stock units, Beginning | shares	22,384
RSUs outstanding, Granted | shares	35,075
RSUs outstanding, Vested | shares	(3,477)
RSUs outstanding, Cancelled | shares	(2,983)
RSUs outstanding, Non-vested restricted stock units, Ending | shares	50,999
Weighted average price at time of grant, Non-vested restricted stock units, Beginning | $ / shares	$ 4.65
Weighted average price at time of grant, Granted | $ / shares	7.89
Weighted average price at time of grant, Vested | $ / shares	7.05
Weighted average price at time of grant, Cancelled | $ / shares	8.88
Weighted average price at time of grant, Non-vested, Ending | $ / shares	$ 6.46
Aggregate intrinsic value, Non-vested, Ending | $	$ 329,614

Stock Incentive Plans (Detail33

Stock Incentive Plans (Details 5) - Restricted stock [Member]	6 Months Ended
	Jun. 30, 2018shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs outstanding, Non-vested restricted stock units, Beginning	4,904
Granted	1,878
Vested	(4,328)
RSUs outstanding, Non-vested restricted stock units, Ending	2,454

Stock Incentive Plans (Detail34

Stock Incentive Plans (Details Textual) $ / shares in Units, $ in Thousands	Jan. 31, 2018USD ($)	Jan. 02, 2018shares	Mar. 31, 2017USD ($)	Jun. 30, 2018USD ($)$ / sharesshares	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)$ / sharesshares	Jun. 30, 2017USD ($)shares	Mar. 31, 2011shares
Stock Incentive Plans (Textual)
Stock compensation expense				$ 13	$ 40	$ 30	$ 238
Unrecognized compensation cost				$ 66		$ 66
Stock-based plan expect to recognize weighted-average period						1 year 5 months 1 day
Forfeiture rate						24.43
Maximum [Member]
Stock Incentive Plans (Textual)
Closing price of common stock | $ / shares				$ 6.30		$ 6.30
Minimum [Member]
Stock Incentive Plans (Textual)
Closing price of common stock | $ / shares				$ 5.50		$ 5.50
Restricted Stock Units (RSUs) [Member]
Stock Incentive Plans (Textual)
Stock compensation expense				$ 115	188	$ 206	$ 324
Unrecognized compensation cost				52		$ 52
Stock-based plan expect to recognize weighted-average period						2 months 27 days
Number of restricted stock units granted | shares		902
Grant date fair value of restricted stock units	$ 209		$ 323
Fair value of restricted stock units, description						The daily expected stock price volatility is based on a four-year historical volatility of the Company’s common stock. The daily expected dividend yield is based on annual expected dividend payments. The average daily risk-free interest rate is based on the three-year treasury yield as of the grant date. Each of the tranches is calculated to have its own fair value and requisite service period. The fair value of each tranche is amortized over the requisite or derived service period which is up to four years.
Restricted Stock Units (RSUs) [Member] | Key executive [Member]
Stock Incentive Plans (Textual)
Number of restricted stock units granted | shares						30,902	59,098
Restricted stock [Member]
Stock Incentive Plans (Textual)
Stock compensation expense				$ 4	$ 57	$ 61	$ 61
Restricted common stock issued to directors | shares						1,878
2007 Plan [Member] | Restricted Stock Units (RSUs) [Member]
Stock Incentive Plans (Textual)
Maximum number of shares awarded | shares								440,769
2016 Plan [Member]
Stock Incentive Plans (Textual)
Plan expiration date						Mar. 17, 2026
Common stock reserved for future issuance of awards | shares				222,980		222,980

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Taxes (Textual)
Income tax expense	$ 6	$ 17	$ 13	$ 78
U.S. federal statutory rate			21.00%
State tax net of federal benefit			6.20%
U.S. corporate tax rate, prior year tax rate			35.00%
U.S. corporate tax rate, reduced tax rate			21.00%
Minimum [Member]
Income Taxes (Textual)
Effective tax rate			3.80%
Maximum [Member]
Income Taxes (Textual)
Effective tax rate			10.20%