Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Rubicon Technology, Inc. | |
Entity Central Index Key | 0001410172 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 2,706,463 | |
Entity Filer Number | 001-33834 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 9,718 | $ 11,241 |
Restricted cash | 167 | 169 |
Short-term investments | 15,428 | 14,356 |
Accounts receivable, net | 346 | 733 |
Inventories | 1,798 | 2,130 |
Other inventory supplies | 143 | 183 |
Prepaid expenses and other current assets | 111 | 109 |
Assets held for sale | 4,145 | 4,145 |
Total current assets | 31,856 | 33,066 |
Property and equipment, net | 2,689 | 2,728 |
Total assets | 34,545 | 35,794 |
Liabilities and stockholders' equity | ||
Accounts payable | 250 | 400 |
Accrued payroll | 71 | 28 |
Accrued and other current liabilities | 506 | 345 |
Corporate income and franchise taxes | 288 | 286 |
Accrued real estate taxes | 112 | 96 |
Advance payments | 22 | 39 |
Total current liabilities | 1,249 | 1,194 |
Total liabilities | 1,249 | 1,194 |
Commitments and contingencies (Note 7) | ||
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; 2,955,253 and 2,919,542 shares issued; 2,706,463 and 2,733,601 shares outstanding | 29 | 29 |
Additional paid-in capital | 376,307 | 375,979 |
Treasury stock, at cost, 248,790 and 185,941 shares | (12,714) | (12,213) |
Accumulated other comprehensive income/(loss) | (1) | (2) |
Accumulated deficit | (330,325) | (329,193) |
Total stockholders' equity | 33,296 | 34,600 |
Total liabilities and stockholders' equity | $ 34,545 | $ 35,794 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, undesignated shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 8,200,000 | 8,200,000 |
Common stock, shares issued | 2,955,253 | 2,919,542 |
Common stock, shares outstanding | 2,706,463 | 2,733,601 |
Treasury stock, shares | 248,790 | 185,941 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 583 | $ 978 | $ 2,272 | $ 2,818 |
Cost of goods sold | 585 | 885 | 1,899 | 2,738 |
Gross profit/(loss) | (2) | 93 | 373 | 80 |
Operating expenses: | ||||
General and administrative | 585 | 488 | 1,939 | 1,802 |
Sales and marketing | 111 | 73 | 275 | 298 |
Research and development | 33 | 108 | ||
Gain on disposal of assets | (122) | (1,124) | (273) | (2,738) |
Income/(loss) from operations | (576) | 623 | (1,568) | 610 |
Other income: | ||||
Interest income | 107 | 99 | 368 | 237 |
Unrealized gain/(loss) on investments | 119 | 14 | ||
Realized gain/(loss) on investments | 6 | 72 | ||
Realized gain/(loss) on foreign currency translation | (2) | (6) | (2) | (8) |
Total other income | 230 | 93 | 452 | 229 |
Income/(loss) before income taxes | (346) | 716 | (1,116) | 839 |
Income tax expense | (6) | (6) | (16) | (19) |
Net income/(loss) | $ (352) | $ 710 | $ (1,132) | $ 820 |
Net income/(loss) per common share | ||||
Basic | $ (0.13) | $ 0.26 | $ (0.42) | $ 0.3 |
Diluted | $ (0.13) | $ 0.26 | $ (0.42) | $ 0.3 |
Weighted average common shares outstanding used in computing net income (loss) per common share | ||||
Basic | 2,691,815 | 2,733,597 | 2,708,765 | 2,732,722 |
Diluted | 2,691,815 | 2,739,593 | 2,708,765 | 2,736,720 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (352) | $ 710 | $ (1,132) | $ 820 |
Other comprehensive income (loss): | ||||
Unrealized gain on investments, net of tax | (2) | 2 | (1) | |
Other comprehensive income (loss) | (2) | 2 | (1) | |
Comprehensive income (loss) | $ (352) | $ 708 | $ (1,130) | $ 819 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common stock | Treasury stock | Additional paid-in capital | Accum other comp (loss) | Accum deficit | Total |
Balance at Dec. 31, 2017 | $ 29 | $ (12,148) | $ 375,611 | $ (3) | $ (330,156) | $ 33,333 |
Balance, Shares at Dec. 31, 2017 | 2,910,334 | (177,484) | ||||
Stock-based compensation | 21 | 21 | ||||
Restricted stock issued | 71 | 71 | ||||
Restricted stock issued, Shares | 6,592 | |||||
Common stock issued, net of shares withheld for employee taxes | 200 | 200 | ||||
Common stock issued, net of shares withheld for employee taxes, Shares | 1,467 | |||||
Unrealized gain (loss) on investments, net of tax | 1 | 1 | ||||
Unrealized gain (loss) on investments, net of tax | 1 | 1 | ||||
Net income (loss) | 110 | 110 | ||||
Balance at Jun. 30, 2018 | $ 29 | $ (12,148) | 375,903 | (2) | (330,046) | 33,736 |
Balance, Shares at Jun. 30, 2018 | 2,918,393 | (177,484) | ||||
Stock-based compensation | 13 | 13 | ||||
Common stock issued, net of shares withheld for employee taxes | 46 | 46 | ||||
Common stock issued, net of shares withheld for employee taxes, Shares | 790 | |||||
Unrealized gain (loss) on investments, net of tax | (2) | (2) | ||||
Unrealized gain (loss) on investments, net of tax | (2) | (2) | ||||
Net income (loss) | 710 | 710 | ||||
Balance at Sep. 30, 2018 | $ 29 | $ (12,148) | 375,962 | (4) | (329,336) | 34,503 |
Balance, Shares at Sep. 30, 2018 | 2,919,183 | (177,484) | ||||
Balance at Dec. 31, 2018 | $ 29 | $ (12,213) | 375,979 | (2) | (329,193) | 34,600 |
Balance, Shares at Dec. 31, 2018 | 2,919,542 | (185,941) | ||||
Stock-based compensation | 20 | 20 | ||||
Common stock issued, net of shares withheld for employee taxes | 36 | 36 | ||||
Common stock issued, net of shares withheld for employee taxes, Shares | 6,415 | |||||
Unrealized gain (loss) on investments, net of tax | 3 | 3 | ||||
Purchase of common stock, at cost | $ (501) | (501) | ||||
Purchase of treasury stock, at cost, Shares | (62,849) | |||||
Unrealized gain (loss) on investments, net of tax | 3 | 3 | ||||
Net income (loss) | (780) | (780) | ||||
Balance at Jun. 30, 2019 | $ 29 | $ (12,714) | 376,035 | 1 | (329,973) | 33,378 |
Balance, Shares at Jun. 30, 2019 | 2,925,957 | (248,790) | ||||
Stock-based compensation | 8 | 8 | ||||
Common stock issued, net of shares withheld for employee taxes | 264 | 264 | ||||
Common stock issued, net of shares withheld for employee taxes, Shares | 29,296 | |||||
Unrealized gain (loss) on investments, net of tax | (2) | (2) | ||||
Net income (loss) | (352) | (352) | ||||
Balance at Sep. 30, 2019 | $ 29 | $ (12,714) | $ 376,307 | $ (1) | $ (330,325) | $ 33,296 |
Balance, Shares at Sep. 30, 2019 | 2,955,253 | (248,790) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net income (loss) | $ (1,132) | $ 820 |
Adjustments to reconcile net income (loss) to net cash used in operating activities | ||
Depreciation and amortization | 127 | 309 |
Net gain on sale or disposal of assets | (273) | (2,738) |
Stock-based compensation | 525 | 359 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 388 | (68) |
Inventories | 332 | 468 |
Other inventory supplies | 39 | 74 |
Prepaid expenses and other assets | (3) | 130 |
Accounts payable | (143) | (321) |
Accrued payroll | 43 | (21) |
Accrued real estate taxes | (9) | (206) |
Corporate income and franchise taxes | 2 | (15) |
Advanced payments | (16) | (18) |
Accrued and other current liabilities | (36) | (145) |
Net cash used in operating activities | (156) | (1,372) |
Cash flows from investing activities | ||
Purchase of property and equipment | (64) | (2,280) |
Proceeds from sale or disposal of assets | 273 | 10,387 |
Purchases of investments | (1,606) | (8,314) |
Proceeds from sale of investments | 536 | 184 |
Net cash used in investing activities | (861) | (23) |
Cash flows from financing activities | ||
Taxes paid related to net share settlement of equity awards | (7) | (9) |
Purchases of common stock | (501) | |
Net cash used in financing activities | (508) | (9) |
Net effect of currency translation | ||
Net decrease in cash, cash equivalents and restricted cash | (1,525) | (1,404) |
Cash, cash equivalents and restricted cash, beginning of period | 11,410 | 11,725 |
Cash, cash equivalents and restricted cash, end of period | $ 9,885 | $ 10,321 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION Interim financial data The accompanying unaudited condensed 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. (the "Company") annual report filed on Form 10-K for the fiscal year ended December 31, 2018. The condensed consolidated balance sheet as of December 31, 2018 set forth herein was derived from audited financial statements. 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-month periods ended September 30, 2019, are not necessarily indicative of results that may be expected for the year ending December 31, 2019. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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 DTP LLC, Rubicon Technology BP 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 U.S. Treasury securities, investment grade commercial paper, FDIC guaranteed certificates of deposit, common stock and corporate notes. Investments classified as available-for-sale debt securities are carried at fair value with unrealized gains and losses recorded in accumulated other comprehensive income/(loss). Investments in equity securities are reported at fair value, with both realized and unrealized gains and losses recorded as unrealized gain/(loss) on investments and realized gain on investments, in other income/(expense), in the consolidated statements 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 debt 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 statements of operations. Accounts receivable The majority of the Company's accounts receivable is due from defense subcontractors, 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 length of time customer's account is past due, 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 for doubtful accounts. Purchases of Equity Securities by the Issuer and Affiliated Purchasers The Company records treasury stock purchases under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. In November 2018, the Company's Board of Directors authorized a program to repurchase up to $3 million of the Company's common stock ("Common Stock"). The Company's share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated and/or open market transactions. The timing, price and volume of repurchases are based upon market conditions, relevant securities laws and other factors. The stock repurchase plan expires on November 19, 2021 and may be terminated at any time. On June 10, 2019, the Company acquired 12,818 shares of Common Stock at a price of $8.12 per share from Michael Mikolajczyk, the Company's Chairman of the Audit Committee and the Board of Directors. This purchase was unanimously approved by all of the disinterested directors of the Company. There were no share repurchases during the three months ended September 30, 2019. Inventories Inventories are valued at the lower of cost or net realizable value. Net realizable value is determined based upon an estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal. 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: September 30, December 31, (in thousands) Raw materials $ 468 $ 468 Work-in-process 917 1,322 Finished goods 413 340 $ 1,798 $ 2,130 Property and equipment Property and equipment consisted of the following: September 30, December 31, (in thousands) Machinery, equipment and tooling $ 3,340 $ 3,293 Buildings 1,711 1,686 Information systems 835 819 Land and land improvements 594 594 Furniture and fixtures 8 8 Total cost 6,488 6,400 Accumulated depreciation and amortization (3,799 ) (3,672 ) Property and equipment, net $ 2,689 $ 2,728 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. For the year ended December 31, 2018, the Company reviewed the current fair value of its assets and concluded no adjustments were needed. Additionally, no adjustments were recorded for the three and nine months ended September 30, 2019. 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 September 2018, the Company completed the sale of its manufacturing and office facility located in Batavia, Illinois, with a net book value of $5.9 million. The selling price for the property was $6.7 million. The Company realized net proceeds of approximately $6.4 million after the payment of real estate taxes, brokerage and legal fees, transfer taxes and other expenses, and recorded a gain on sale of this asset of $504,000. In the nine months ended September 30, 2018, the Company completed individual sales and held auctions for equipment and consumable assets located at each of its U.S. properties, resulting in the sale of a significant amount of its excess U.S. assets, which had a total net book value of $1.6 million. Additionally, the Company completed sales of Malaysia equipment with a total net book value of $131,000. Based on these sales, a gain on disposal of equipment and consumable assets of $2.2 million was recorded for the nine months ended September 30, 2018. Unsold excess Malaysia equipment continued to be classified as current assets held for sale at September 30, 2018. See Note 9 – Subsequent Events related to Malaysia equipment. The Company collected its payment for $125,000 during the three months ended September 30, 2019 related to a settled dispute. For the nine months ended September 30, 2019, the Company sold $76,000 of excess consumable assets and received a total of $200,000 related to such settled dispute. Unsold excess Malaysia equipment continued to be classified as current assets held for sale at September 30, 2019 and December 31, 2018. See Note 9 – Subsequent Events related to Malaysia equipment. The Company is pursuing the sale of its parcel of land in Batavia, Illinois, and the sale or lease of its 65,000 square-foot facility located in Penang, Malaysia. Although the Company cannot assure the timing of these sales, these properties were classified as current assets held for sale at September 30, 2019 and December 31, 2018, as it is the Company's intention to complete these sales within the next twelve-month period. The Company cannot guarantee that it will be able to successfully complete the sale or lease of these assets. Revenue recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue From Contracts with Customers Government Contracts In 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 this 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 recorded research and development revenue related to this contract on a gross basis over the contractually defined period of time as the obligations were completed, using the input method of measuring progress, which recognizes revenue as resources are consumed, labor hours expended and costs are incurred, plus a portion of the fixed fee. For the three and nine months ended September 30, 2018, the same amount of revenue of $56,000 was recorded. As the Company has completed this contract in 2018, all revenues corresponding to the total value of the contract of $4.7 million have been recognized as of December 31, 2018. Therefore, no additional research and development revenue was recorded for the three and nine months ended September 30, 2019. At September 30, 2019, the estimated costs to complete the contract were in excess of the contract value. In reviewing its current estimates, the Company expects its remaining payments to be approximately $200,000, which has previously been accrued. The Company does not provide maintenance or other services and it does not have sales that involve bill & hold arrangements, multiple elements or deliverables. However, the Company does provide product warranty for up to 90 days, for which the Company has accrued a warranty reserve of $3,000 and $8,000 at September 30, 2019 and December 31, 2018, respectively. 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 common share was the same as basic net income/(loss) per common share for the three and nine months ended September 30, 2019 and 2018, because the effects of potentially dilutive securities did not have a material impact on the calculation of diluted net income/(loss) per share. The Company had outstanding options exercisable into 32,839 and 26,812 shares of the Company's common stock that would have had an anti-dilutive effect at September 30, 2019 and 2018, respectively. New accounting pronouncements adopted 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 June 2018, the FASB issued ASU No. 2018-07 ("ASU 2018-07"), Compensation - Stock Compensation (Topic 718): Improvements to Non-Employee Share-Based Payment Accounting. Compensation – Stock Compensation Equity – Equity-Based Payments to Non-Employees Revenue from Contracts with Customers |
Investments
Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | 3. INVESTMENTS The Company invests its available cash primarily in U.S. Treasury securities, investment grade commercial paper, FDIC guaranteed certificates of deposit, common stock and corporate notes. Investments classified as available-for-sale debt securities are carried at fair value with unrealized gains and losses recorded in accumulated other comprehensive income/(loss). Investments in equity securities are reported at fair value, with both realized and unrealized gains and losses recorded as unrealized gain/(loss) on investments and realized gain on investments, in other income/(expense), in the consolidated statements of operations. The following table presents the amortized cost and gross unrealized losses on all securities at September 30, 2019: Amortized Gross Gross Fair (in thousands) Short-term investments: U.S. Treasury securities $ 14,604 $ $ $ 14,604 Common stock 735 294 (205 ) $ 824 Total short-term investments $ 15,339 $ 294 $ (205 ) $ 15,428 The following table presents the amortized cost and gross unrealized losses on all securities at December 31, 2018: Amortized Gross Gross Fair (in thousands) Short-term investments: U.S. Treasury securities $ 14,357 — (1 ) 14,356 Total short-term investments $ 14,357 $ — $ (1 ) $ 14,356 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 debt securities consist of U.S. Treasury securities, high-quality investment grade commercial paper, FDIC guaranteed certificates of deposit and corporate notes. Investments in equity securities consist of common stock. 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, 2019: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 4,135 $ — $ — $ 4,135 Investments: Available-for-sale securities — current: U.S. Treasury securities — 14,604 — 14,604 Common stock 824 — — 824 Total $ 4,959 $ 14,604 $ — $ 19,563 The following table summarizes the Company's financial assets measured at fair value on a recurring basis as of December 31, 2018: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 2,821 $ — $ — $ 2,821 Investments: Available-for-sale securities — current: U.S. Treasury securities — 14,356 — 14,356 Total $ 2,821 $ 14,356 $ — $ 17,177 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 $5.6 million and $8.4 million of time deposits included in cash and cash equivalents as of September 30, 2019 and December 31, 2018, respectively. |
Significant Customers
Significant Customers | 9 Months Ended |
Sep. 30, 2019 | |
Significant Customers [Abstract] | |
SIGNIFICANT CUSTOMERS | 4. SIGNIFICANT CUSTOMERS For the three months ended September 30, 2019, the Company had four customers individually that accounted for approximately 26%, 13%, 12%, and 11% of revenue. For the three months ended September 30, 2018, the Company had four customers individually that accounted for approximately 32%, 12%, 12% and 10% of revenue. For the nine months ended September 30, 2019, the Company had three customers that accounted for approximately 21%, 16% and 12% of revenue. For the nine months ended September 30, 2018, the Company had four customers that accounted for approximately 21%, 11%, 11% and 10% of revenue. No other customer accounted for 10% or more of the Company's revenues during the three and nine months ended September 30, 2019 and 2018. Customers individually representing more than 10% of trade receivables accounted for approximately 59% and 79% of accounts receivable as of September 30, 2019 and December 31, 2018, respectively. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 5. STOCKHOLDERS' EQUITY Common shares reserved As of September 30, 2019, the Company had reserved 77,842 shares of common stock for issuance upon the exercise of outstanding common stock options and vesting of RSUs. Also, 280,386 shares of the Company's common stock were reserved for future grants of stock options and RSUs (or other similar equity instruments) under the Rubicon Technology, Inc. 2016 Stock Incentive Plan (the "2016 Plan") as of September 30, 2019. Preferred stock At the Company's 2018 annual meeting ("2018 Annual Meeting") of stockholders, an amendment to the Company's Eighth Amended and Restated Certificate of Incorporation (as amended, the "Certificate of Incorporation") was approved to decrease the Company's authorized number of shares of preferred stock from 5,000,000 shares to 1,000,000 shares. Subsequent to receiving stockholder approval at the 2018 Annual Meeting, 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 | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [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 June 2011 (the "2007 Plan"), and which allowed for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, 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 entitled 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 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 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, 280,386 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 following table summarizes the activity of the stock incentive and equity plans as of September 30, 2019, and changes during the nine months then ended: Shares Number of Weighted- Number of Number of At January 1, 2019 295,067 69,083 $ 12.10 99,570 50,176 Granted (51,925 ) 1,000 8.34 — 925 Exercised/issued — — — — (6,098 ) Cancelled/forfeited 37,244 (37,244 ) 12.31 — — At September 30, 2019 280,386 32,839 $ 11.49 99,570 45,003 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 September 30, 2019, there was $85,655 of intrinsic value arising from 29,500 stock options exercisable and outstanding. The Company uses the Black-Scholes option pricing model to value stock options. The Company uses 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. The forfeiture rate of 28.99% is based on the history of forfeited options. The expense is allocated using the straight-line method. For the three and nine months ended September 30, 2019, the Company recorded $6,000 and $19,000, respectively, of stock option compensation expense. For the three and nine months ended September 30, 2018, the Company recorded $8,000 and $38,000, respectively, of stock option compensation expense. As of September 30, 2019, the Company had $38,000 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 the weighted-average period of 1.0 year. A summary of the Company's non-vested options during the nine months ended September 30, 2019, is presented below: Options Weighted- Non-vested options at January 1, 2019 21,992 $ 6.86 Granted 1,000 8.34 Vested (9,878 ) 6.95 Canceled/forfeited (2,248 ) 6.10 Non-vested options at September 30, 2019 10,866 $ 7.08 Pursuant to an employment agreement, the Company granted 30,902 and 59,098 RSUs to a key executive in 2018 and 2017, respectively. The following table summarizes the award vesting terms for the remaining unvested RSUs under this grant: Number of RSUs Target price 15,000 $ 11.00 15,000 $ 12.50 15,000 $ 14.00 The RSUs vest in the amounts set forth above 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. 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 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 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 daily expected stock price volatility is based on a three-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. For the three and nine months ended September 30, 2019, the Company recorded $0 and $7,000, respectively, of RSU expense. For the three months and nine months ended September 30, 2018, the Company recorded $50,000 and $256,000, respectively, of RSU expense. As of September 30, 2019, there was no compensation cost related to the non-vested RSUs remaining. A summary of the Company's RSUs for the nine month period ended September 30, 2019, is presented below: RSUs Weighted average Aggregate intrinsic Non-vested RSUs as of January 1, 2019 50,176 $ 6.31 Granted 925 7.95 Vested (6,098 ) 7.40 Cancelled — — Non-vested RSUs at September 30, 2019 45,003 $ 6.20 $ 279,011 For the three and nine months ended September 30, 2019, the Company recorded $2,000 and $7,000, respectively, of stock compensation expense related to restricted stock. For the three and nine months ended September 30, 2018, the Company recorded $49,000 and $110,000, respectively, of stock compensation expense related to restricted stock. In 2018, all non-employee directors received an annual fee of $20,000 cash, payable quarterly. From January 1, 2018, to the 2018 Annual Meeting of Stockholders, the directors in the aggregate earned $15,000 in stock, which was equal to 1,878 shares of restricted common stock. Thereafter, at every Annual Meeting, beginning in 2018, each non-employee director receives $10,000 in RSUs which vest on the day immediately preceding the next following Annual Meeting of Stockholders. For the three months ended September 30, 2019, no RSUs were issued to our directors. As of September 30, 2019 and December 31, 2018, outstanding non-vested restricted stock shares were 0 and 2,454 respectively. For the nine months ended September 30, 2018, 1,878 shares of restricted common stock were issued to outside directors. An analysis of restricted stock outstanding is as follows: Non-vested restricted stock as of January 1, 2019 2,454 Granted — Vested (2,454 ) Non-vested restricted stock as of September 30, 2019 — |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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. In the third quarter of 2018, the Company received a summons from Bartmann, Perales & Dolter, LLC, the lessor of the Franklin Park, Illinois, property the Company had previously occupied, alleging that the Company owes $175,000 in overdue rent payments, property taxes and restoration costs. The Company intends to vigorously defend the allegation and has asserted a counterclaim pursuant to the terms of the lease agreement for reimbursement of costs and expenses to maintain the condition and repair of said property. The management of the Company does not believe this pending litigation will have a material adverse effect on the financial condition or results of operations or cash flows of the Company. Contingent Payments Related to Direct Dose In May 2019, the Company formed Rubicon DTP LLC ("Rubicon DTP") in order to launch a Direct to Patient (DTP) pharmacy solution under the brand names - Direct Dose Rx and Rubicon Rx. On May 17, 2019, the Company acquired certain equipment and other assets from an Indiana based pharmacy operation ("Seller"), including its licenses to operate in 11 states. Direct Dose Rx is focused on the delivery of prescription medication, over-the-counter drugs and vitamins ("Meds") to patients being discharged from skilled nursing facilities and hospitals. Rubicon Rx delivers Meds to patients at their homes. The Company has a contingent liability to Seller in the amount of $500,000 in the event that, for the time period between May 17, 2019 and December 31, 2019, Rubicon DTP's revenue is equal to or greater than $4,185,000. The Company has an additional contingent liability to Seller in the amount of $500,000 in the event that, for the time period between January 1, 2020 and December 31, 2020, Rubicon DTP's revenue is equal to or greater than $7,500,000. The Company has an additional contingent liability to Seller if Rubicon DTP is sold for greater than $12 million on or before May 17, 2022, in an amount equal to one of the following: (a) if the aggregate consideration paid for Rubicon DTP is greater than $12 million, but equal to or less than $30 million, then $1.5 million; (b) if the aggregate consideration paid for Rubicon DTP is greater than $30 million, but equal to or less than $60 million, then $2.0 million; (c) if the aggregate consideration paid for Rubicon DTP is greater than $60 million, but less than $100 million, then $3.0 million; or (d) if the total consideration paid for Rubicon DTP is greater than or equal to $100 million, then $4.5 million. Although it is possible that the Company meets one or more of the various targets and is required to make some or all of the above described payments, the Company believes the likelihood is remote. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 8. INCOME TAXES In 2017, the U.S. enacted the Tax Cuts and Jobs Act (the "Act") which, among other provisions, reduced the U.S. corporate tax rate from 35% to 21% effective January 1, 2018. The SEC issued guidance, Staff Accounting Bulletin 118, 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 completed its accounting for the tax effects of enactment of the Act. The deemed inclusion from the repatriation tax increased from $3.9 million at the time of provision to $5.0 million at the time the calculation was finalized for the 2018 tax return. The increase of the inclusion related primarily to the refinement of Malaysia earnings and profits. As the Company is in a full valuation allowance position, an equal benefit adjustment was recorded for the impact of the increase of the deemed repatriation tax. The Company is subject to taxation in the U.S., Malaysia and in a U.S. state jurisdiction. 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, 2019, a valuation allowance has been included in the 2019 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 September 30, 2019, 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 statements of operations will be offset with a corresponding adjustment from the use of the net operating loss ("NOL") carryforward asset which currently has a full valuation allowance. 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 nine months ended September 30, 2019, is based on an estimated combined statutory effective tax rate. The Company recorded for the three and nine months ended September 30, 2019, a tax expense of $6,000 and $16,000, respectively, for an effective tax rate of 1.83% and 1.46%, respectively. For the three and nine months ended September 30, 2019 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 the change in the Company's U.S. and Malaysia valuation allowances, U.S. research and development credit, Malaysia foreign tax rate differential and Malaysia withholding taxes on intercompany loan interest. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 9. SUBSEQUENT EVENTS On October 18, 2019, the Company completed the sale of all of its manufacturing equipment in Malaysia for $490,000 in cash and other consideration. This equipment had been classified as held for sale and had a book value of $180,000. The transaction resulted in a gain of $310,000. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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 DTP LLC, Rubicon Technology BP 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 U.S. Treasury securities, investment grade commercial paper, FDIC guaranteed certificates of deposit, common stock and corporate notes. Investments classified as available-for-sale debt securities are carried at fair value with unrealized gains and losses recorded in accumulated other comprehensive income/(loss). Investments in equity securities are reported at fair value, with both realized and unrealized gains and losses recorded as unrealized gain/(loss) on investments and realized gain on investments, in other income/(expense), in the consolidated statements 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 debt 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 statements of operations. |
Accounts receivable | Accounts receivable The majority of the Company's accounts receivable is due from defense subcontractors, 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 length of time customer's account is past due, 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 for doubtful accounts. |
Purchases of Equity Securities by the Issuer and Affiliated Purchasers | Purchases of Equity Securities by the Issuer and Affiliated Purchasers The Company records treasury stock purchases under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. In November 2018, the Company's Board of Directors authorized a program to repurchase up to $3 million of the Company's common stock ("Common Stock"). The Company's share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated and/or open market transactions. The timing, price and volume of repurchases are based upon market conditions, relevant securities laws and other factors. The stock repurchase plan expires on November 19, 2021 and may be terminated at any time. On June 10, 2019, the Company acquired 12,818 shares of Common Stock at a price of $8.12 per share from Michael Mikolajczyk, the Company's Chairman of the Audit Committee and the Board of Directors. This purchase was unanimously approved by all of the disinterested directors of the Company. There were no share repurchases during the three months ended September 30, 2019. |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value. Net realizable value is determined based upon an estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal. 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: September 30, December 31, (in thousands) Raw materials $ 468 $ 468 Work-in-process 917 1,322 Finished goods 413 340 $ 1,798 $ 2,130 |
Property and equipment | Property and equipment Property and equipment consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Machinery, equipment and tooling $ 3,340 $ 3,293 Buildings 1,711 1,686 Information systems 835 819 Land and land improvements 594 594 Furniture and fixtures 8 8 Total cost 6,488 6,400 Accumulated depreciation and amortization (3,799 ) (3,672 ) Property and equipment, net $ 2,689 $ 2,728 |
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. For the year ended December 31, 2018, the Company reviewed the current fair value of its assets and concluded no adjustments were needed. Additionally, no adjustments were recorded for the three and nine months ended September 30, 2019. 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 September 2018, the Company completed the sale of its manufacturing and office facility located in Batavia, Illinois, with a net book value of $5.9 million. The selling price for the property was $6.7 million. The Company realized net proceeds of approximately $6.4 million after the payment of real estate taxes, brokerage and legal fees, transfer taxes and other expenses, and recorded a gain on sale of this asset of $504,000. In the nine months ended September 30, 2018, the Company completed individual sales and held auctions for equipment and consumable assets located at each of its U.S. properties, resulting in the sale of a significant amount of its excess U.S. assets, which had a total net book value of $1.6 million. Additionally, the Company completed sales of Malaysia equipment with a total net book value of $131,000. Based on these sales, a gain on disposal of equipment and consumable assets of $2.2 million was recorded for the nine months ended September 30, 2018. Unsold excess Malaysia equipment continued to be classified as current assets held for sale at September 30, 2018. See Note 9 – Subsequent Events related to Malaysia equipment. The Company collected its payment for $125,000 during the three months ended September 30, 2019 related to a settled dispute. For the nine months ended September 30, 2019, the Company sold $76,000 of excess consumable assets and received a total of $200,000 related to such settled dispute. Unsold excess Malaysia equipment continued to be classified as current assets held for sale at September 30, 2019 and December 31, 2018. See Note 9 – Subsequent Events related to Malaysia equipment. The Company is pursuing the sale of its parcel of land in Batavia, Illinois, and the sale or lease of its 65,000 square-foot facility located in Penang, Malaysia. Although the Company cannot assure the timing of these sales, these properties were classified as current assets held for sale at September 30, 2019 and December 31, 2018, as it is the Company's intention to complete these sales within the next twelve-month period. The Company cannot guarantee that it will be able to successfully complete the sale or lease of these assets. |
Revenue recognition | Revenue recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue From Contracts with Customers Government Contracts In 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 this 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 recorded research and development revenue related to this contract on a gross basis over the contractually defined period of time as the obligations were completed, using the input method of measuring progress, which recognizes revenue as resources are consumed, labor hours expended and costs are incurred, plus a portion of the fixed fee. For the three and nine months ended September 30, 2018, the same amount of revenue of $56,000 was recorded. As the Company has completed this contract in 2018, all revenues corresponding to the total value of the contract of $4.7 million have been recognized as of December 31, 2018. Therefore, no additional research and development revenue was recorded for the three and nine months ended September 30, 2019. At September 30, 2019, the estimated costs to complete the contract were in excess of the contract value. In reviewing its current estimates, the Company expects its remaining payments to be approximately $200,000, which has previously been accrued. The Company does not provide maintenance or other services and it does not have sales that involve bill & hold arrangements, multiple elements or deliverables. However, the Company does provide product warranty for up to 90 days, for which the Company has accrued a warranty reserve of $3,000 and $8,000 at September 30, 2019 and December 31, 2018, respectively. |
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 common share was the same as basic net income/(loss) per common share for the three and nine months ended September 30, 2019 and 2018, because the effects of potentially dilutive securities did not have a material impact on the calculation of diluted net income/(loss) per share. The Company had outstanding options exercisable into 32,839 and 26,812 shares of the Company's common stock that would have had an anti-dilutive effect at September 30, 2019 and 2018, respectively. |
New accounting pronouncements adopted | New accounting pronouncements adopted 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 June 2018, the FASB issued ASU No. 2018-07 ("ASU 2018-07"), Compensation - Stock Compensation (Topic 718): Improvements to Non-Employee Share-Based Payment Accounting. Compensation – Stock Compensation Equity – Equity-Based Payments to Non-Employees Revenue from Contracts with Customers |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of inventories | September 30, 2019 December 31, 2018 (in thousands) Raw materials $ 468 $ 468 Work-in-process 917 1,322 Finished goods 413 340 $ 1,798 $ 2,130 |
Summary of property and equipment | September 30, 2019 December 31, 2018 (in thousands) Machinery, equipment and tooling $ 3,340 $ 3,293 Buildings 1,711 1,686 Information systems 835 819 Land and land improvements 594 594 Furniture and fixtures 8 8 Total cost 6,488 6,400 Accumulated depreciation and amortization (3,799 ) (3,672 ) Property and equipment, net $ 2,689 $ 2,728 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of amortized cost and gross unrealized losses on all securities | The following table presents the amortized cost and gross unrealized losses on all securities at September 30, 2019: Amortized Gross Gross Fair (in thousands) Short-term investments: U.S. Treasury securities $ 14,604 $ $ $ 14,604 Common stock 735 294 (205 ) $ 824 Total short-term investments $ 15,339 $ 294 $ (205 ) $ 15,428 The following table presents the amortized cost and gross unrealized losses on all securities at December 31, 2018: Amortized Gross Gross Fair (in thousands) Short-term investments: U.S. Treasury securities $ 14,357 — (1 ) 14,356 Total short-term investments $ 14,357 $ — $ (1 ) $ 14,356 |
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 September 30, 2019: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 4,135 $ — $ — $ 4,135 Investments: Available-for-sale securities — current: U.S. Treasury securities — 14,604 — 14,604 Common stock 824 — — 824 Total $ 4,959 $ 14,604 $ — $ 19,563 The following table summarizes the Company's financial assets measured at fair value on a recurring basis as of December 31, 2018: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 2,821 $ — $ — $ 2,821 Investments: Available-for-sale securities — current: U.S. Treasury securities — 14,356 — 14,356 Total $ 2,821 $ 14,356 $ — $ 17,177 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of activity of stock incentive and equity plans | Shares Number of Weighted- Number of Number of At January 1, 2019 295,067 69,083 $ 12.10 99,570 50,176 Granted (51,925 ) 1,000 8.34 — 925 Exercised/issued — — — — (6,098 ) Cancelled/forfeited 37,244 (37,244 ) 12.31 — — At September 30, 2019 280,386 32,839 $ 11.49 99,570 45,003 |
Schedule of non-vested options | Options Weighted- Non-vested options at January 1, 2019 21,992 $ 6.86 Granted 1,000 8.34 Vested (9,878 ) 6.95 Canceled/forfeited (2,248 ) 6.10 Non-vested options at September 30, 2019 10,866 $ 7.08 |
Summary of award vesting terms for RSUs granted | Number of RSUs Target 15,000 $ 11.00 15,000 $ 12.50 15,000 $ 14.00 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of award vesting terms for RSUs granted | RSUs Weighted average Aggregate intrinsic Non-vested RSUs as of January 1, 2019 50,176 $ 6.31 Granted 925 7.95 Vested (6,098 ) 7.40 Cancelled — — Non-vested RSUs at September 30, 2019 45,003 $ 6.20 $ 279,011 |
Summary of restricted stock units | Non-vested restricted stock as of January 1, 2019 2,454 Granted — Vested (2,454 ) Non-vested restricted stock as of September 30, 2019 — |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Raw materials | $ 468 | $ 468 |
Work-in-process | 917 | 1,322 |
Finished goods | 413 | 340 |
Inventories | $ 1,798 | $ 2,130 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Summary Of Significant Accounting Policies [Line Items] | ||
Total cost | $ 6,488 | $ 6,400 |
Accumulated depreciation and amortization | (3,799) | (3,672) |
Property and equipment, net | 2,689 | 2,728 |
Machinery, equipment and tooling [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Total cost | 3,340 | 3,293 |
Buildings [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Total cost | 1,711 | 1,686 |
Information Systems [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Total cost | 835 | 819 |
Land and land improvements [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Total cost | 594 | 594 |
Furniture and Fixtures [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Total cost | $ 8 | $ 8 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, $ in Thousands | Jun. 10, 2019$ / sharesshares | Sep. 30, 2019USD ($)ft²shares | Sep. 30, 2018USD ($)shares | Sep. 30, 2019USD ($)ft²shares | Sep. 30, 2018USD ($)shares | Dec. 31, 2018USD ($) |
Summary of Significant Accounting Policies (Textual) | ||||||
Asset impairment charges | ||||||
Revenue recognized | $ 56,000 | $ 56,000 | ||||
Total value of the contract | 4,700 | |||||
Property purchased | 64 | $ 2,280 | ||||
Government contract remaining payment less than amount | $ 200,000 | $ 200,000 | ||||
Options exercisable | shares | 32,839 | 26,812 | 32,839 | 26,812 | ||
Accrued warranty reserve | $ 3,000 | $ 3,000 | $ 8,000 | |||
Consumable assets the amount | $ 76,000 | |||||
Gain on sale of equipment | $ 125,000 | |||||
Repurchase of common stock, shares | shares | 12,818 | |||||
Repurchase of common stock, per share | $ / shares | $ 8.12 | |||||
Malaysia [Member] | ||||||
Summary of Significant Accounting Policies (Textual) | ||||||
Area of land | ft² | 65,000 | 65,000 | ||||
Net book value of furnaces | $ 131,000 | $ 131,000 | ||||
Batavia [Member] | ||||||
Summary of Significant Accounting Policies (Textual) | ||||||
Net book value | 1,600 | 1,600 | ||||
Selling price of property | 6,700 | |||||
Consumable assets the amount | 2,200 | |||||
Net proceeds from sale of facility in Batavia | 6,400 | |||||
Net book value of property sold | $ 5,900 | 5,900 | ||||
Gain on sale of facility in Batavia | $ 504,000 |
Investments (Details)
Investments (Details) - Short-term Investments [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 15,339 | $ 14,357 |
Gross unrealized gains | 294 | |
Gross unrealized losses | (205) | (1) |
Fair value | 15,428 | 14,356 |
Common Stock [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 735 | |
Gross unrealized gains | 294 | |
Gross unrealized losses | (205) | |
Fair value | 824 | |
U.S. Treasury securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 14,604 | 14,357 |
Gross unrealized gains | ||
Gross unrealized losses | (1) | |
Fair value | $ 14,604 | $ 14,356 |
Investments (Details 1)
Investments (Details 1) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments: | ||
Total | $ 19,563 | $ 17,177 |
Financial assets measured at fair value on a recurring basis [Member] | Common Stock [Member] | ||
Investments: | ||
Available-for-sale securities - current: | 824 | |
Financial assets measured at fair value on a recurring basis [Member] | U.S. Treasury securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash equivalents: | 14,356 | |
Investments: | ||
Available-for-sale securities - current: | 14,604 | |
Money market funds [Member] | Financial assets measured at fair value on a recurring basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash equivalents: | 4,135 | 2,821 |
Level 1 [Member] | ||
Investments: | ||
Total | 4,959 | 2,821 |
Level 1 [Member] | Financial assets measured at fair value on a recurring basis [Member] | Common Stock [Member] | ||
Investments: | ||
Available-for-sale securities - current: | 824 | |
Level 1 [Member] | Financial assets measured at fair value on a recurring basis [Member] | U.S. Treasury securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash equivalents: | ||
Investments: | ||
Available-for-sale securities - current: | ||
Level 1 [Member] | Money market funds [Member] | Financial assets measured at fair value on a recurring basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash equivalents: | 4,135 | 2,821 |
Level 2 [Member] | ||
Investments: | ||
Total | 14,604 | 14,356 |
Level 2 [Member] | Financial assets measured at fair value on a recurring basis [Member] | Common Stock [Member] | ||
Investments: | ||
Available-for-sale securities - current: | ||
Level 2 [Member] | Financial assets measured at fair value on a recurring basis [Member] | U.S. Treasury securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash equivalents: | 14,356 | |
Investments: | ||
Available-for-sale securities - current: | 14,604 | |
Level 2 [Member] | Money market funds [Member] | Financial assets measured at fair value on a recurring basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash equivalents: | ||
Level 3 [Member] | ||
Investments: | ||
Total | ||
Level 3 [Member] | Financial assets measured at fair value on a recurring basis [Member] | Common Stock [Member] | ||
Investments: | ||
Available-for-sale securities - current: | ||
Level 3 [Member] | Financial assets measured at fair value on a recurring basis [Member] | U.S. Treasury securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash equivalents: | ||
Investments: | ||
Available-for-sale securities - current: | ||
Level 3 [Member] | Money market funds [Member] | Financial assets measured at 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 | Sep. 30, 2019 | Dec. 31, 2018 |
Investments (Textual) | ||
Time deposits included in cash and cash equivalents | $ 5,600 | $ 8,400 |
Significant Customers (Details)
Significant Customers (Details) - Customers | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Significant Customers (Textual) | |||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Number of customers | 4 | 4 | 3 | 4 | |
Sales Revenue, Net [Member] | Customer One [Member] | |||||
Significant Customers (Textual) | |||||
Concentration risk, percentage | 26.00% | 32.00% | 21.00% | 21.00% | |
Sales Revenue, Net [Member] | Customer Two [Member] | |||||
Significant Customers (Textual) | |||||
Concentration risk, percentage | 13.00% | 12.00% | 16.00% | 11.00% | |
Sales Revenue, Net [Member] | Customer three [Member] | |||||
Significant Customers (Textual) | |||||
Concentration risk, percentage | 12.00% | 12.00% | 12.00% | 11.00% | |
Sales Revenue, Net [Member] | Customer Four [Member] | |||||
Significant Customers (Textual) | |||||
Concentration risk, percentage | 11.00% | 10.00% | 10.00% | ||
Accounts Receivable [Member] | Customer [Member] | |||||
Significant Customers (Textual) | |||||
Concentration risk, percentage | 59.00% | 79.00% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2019 | |
Stockholders' Equity (Textual) | ||
Reserved common stock shares for issuance | 77,842 | |
Common stock reserved for future grants | 330,386 | |
Eighth Amended and Restated Certificate of Incorporation [Member] | ||
Stockholders' Equity (Textual) | ||
Description of preferred stock, authorized | Annual meeting ("2018 Annual Meeting") of stockholders, an amendment to the Company's Eighth Amended and Restated Certificate of Incorporation (as amended, the "Certificate of Incorporation") was approved 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 of the State of Delaware [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) - Stock incentive and equity plans [Member] | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant, Balance | 295,067 |
Shares available for grant, Granted | (51,925) |
Shares available for grant, Exercised/issued | |
Shares available for grant, Cancelled/forfeited | 37,244 |
Shares available for grant, Balance | 280,386 |
Number of options outstanding, Balance | 69,083 |
Number of options outstanding, Granted | 1,000 |
Number of options outstanding, Exercised/issued | |
Number of options outstanding, Cancelled/forfeited | (37,244) |
Number of options outstanding, Balance | 32,839 |
Weighted-average option exercise price, Balance | $ / shares | $ 12.10 |
Weighted-average option exercise price, Granted | $ / shares | 8.34 |
Weighted-average option exercise price, Exercised/issued | $ / shares | |
Weighted-average option exercise price, Cancelled/forfeited | $ / shares | 12.31 |
Weighted-average option exercise price, Balance | $ / shares | $ 11.49 |
Number of restricted stock shares issued, Balance | 99,570 |
Number of restricted stock shares issued, Granted | |
Number of restricted stock shares issued, Exercised/issued | |
Number of restricted stock shares issued, Cancelled/forfeited | |
Number of restricted stock shares issued, Balance | 99,570 |
Number of RSUs outstanding, Balance | 50,176 |
Number of RSUs outstanding, Granted | 925 |
Number of RSUs outstanding, Exercised/issued | (6,098) |
Number of RSUs outstanding, Cancelled/forfeited | |
Number of RSUs outstanding, Balance | 45,003 |
Stock Incentive Plans (Details
Stock Incentive Plans (Details 1) - Non Vested Options [Member] | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Non-vested options | |
Non-vested, Beginning balance | shares | 21,992 |
Granted | shares | 1,000 |
Vested | shares | (9,878) |
Cancelled/forfeited | shares | (2,248) |
Non-vested, Ending balance | shares | 10,866 |
Weighted-average exercise price | |
Non-vested, Beginning balance | $ / shares | $ 6.86 |
Granted | $ / shares | 8.34 |
Vested | $ / shares | 6.95 |
Cancelled | $ / shares | 6.10 |
Non-vested, Ending balance | $ / shares | $ 7.08 |
Stock Incentive Plans (Detail_2
Stock Incentive Plans (Details 2) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Unvested RSUs under this grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of restricted stock units | shares | 15,000 |
Target price | $ / shares | $ 11 |
Unvested RSUs under this grant One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of restricted stock units | shares | 15,000 |
Target price | $ / shares | $ 12.50 |
Unvested RSUs under this grant Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of restricted stock units | shares | 15,000 |
Target price | $ / shares | $ 14 |
Stock Incentive Plans (Detail_3
Stock Incentive Plans (Details 3) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested restricted stock units, Beginning balance | shares | 50,176 |
RSUs outstanding, Granted | shares | 925 |
RSUs outstanding, Vested | shares | (6,098) |
RSUs outstanding, Cancelled | shares | |
Non-vested restricted stock units, Ending balance | shares | 45,003 |
Weighted average price at time of grant, Beginning balance | $ / shares | $ 6.31 |
Weighted average price at time of grant, Granted | $ / shares | 7.95 |
Weighted average price at time of grant, Vested | $ / shares | 7.40 |
Weighted average price at time of grant, Cancelled | $ / shares | |
Weighted average price at time of grant, Ending balance | $ / shares | $ 6.20 |
Aggregate intrinsic value, Non-vested, Ending balance | $ | $ 279,011 |
Stock Incentive Plans (Detail_4
Stock Incentive Plans (Details 4) | 9 Months Ended |
Sep. 30, 2019shares | |
Share-based Payment Arrangement [Abstract] | |
Non-vested restricted stock, Beginning balance | 2,454 |
Granted | |
Vested | (2,454) |
Non-vested restricted stock, Ending balance |
Stock Incentive Plans (Detail_5
Stock Incentive Plans (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Aug. 31, 2007 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Stock Incentive Plans (Textual) | ||||||||
Stock compensation expense | $ 6,000 | $ 8,000 | $ 19,000 | $ 38,000 | ||||
Unrecognized compensation cost | 38,000 | $ 38,000 | $ 66,000 | |||||
Stock-based plan expect to recognize weighted-average period | 1 year 2 months 30 days | |||||||
Stock compensation expense related to restricted stock | $ 2,000 | $ 49,000 | $ 7,000 | $ 110,000 | ||||
Common stock reserved for future issuance of awards | 330,386 | 330,386 | ||||||
Plan termination date | Mar. 17, 2026 | |||||||
Stock option intrinsic value | $ 85,655 | $ 85,655 | ||||||
Stock options exercisable or outstanding | $ 29,500 | $ 29,500 | ||||||
Stock options forfeited rate percentage | 28.99% | |||||||
Restricted stock units, description | For the three and nine months ended September 30, 2019, the Company recorded $0 and $7,000, respectively, of RSU expense. For the three months and nine months ended September 30, 2018, the Company recorded $50,000 and $256,000, respectively, of RSU expense. As of September 30, 2019, there was no compensation cost related to the non-vested RSUs remaining. | |||||||
Outstanding non-vested restricted stock | 0 | 2,454 | ||||||
Closing price, description | 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. | |||||||
Weighted average period of compensation cost related to non-vested stock option awards granted | 1 year | |||||||
Restricted common stock issued to directors | 1,878 | |||||||
2007 Plan [Member] | ||||||||
Stock Incentive Plans (Textual) | ||||||||
Common stock reserved for future issuance of awards | 280,386 | 280,386 | ||||||
2007 Plan [Member] | ||||||||
Stock Incentive Plans (Textual) | ||||||||
Maximum number of shares awarded or sold | 440,769 | |||||||
Plan termination date | Jun. 24, 2016 | |||||||
Restricted Stock Units (RSUs) [Member] | Key Executive [Member] | ||||||||
Stock Incentive Plans (Textual) | ||||||||
Number of restricted stock units granted | 30,902 | 59,098 | ||||||
Restricted Stock [Member] | ||||||||
Stock Incentive Plans (Textual) | ||||||||
Restricted stock units, description | From January 1, 2018, to the 2018 Annual Meeting of Stockholders, the directors in the aggregate earned $15,000 in stock, which was equal to 1,878 shares of restricted common stock. Thereafter, at every Annual Meeting, beginning in 2018, non-employee directors receive $10,000 in RSUs which vest on the day immediately preceding the next following Annual Meeting of Stockholders. |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended |
May 30, 2019 | Sep. 30, 2018 | |
Commitments and Contingencies (Textual) | ||
Company owes in overdue rent payments | $ 175 | |
Seller [Member] | ||
Commitments and Contingencies (Textual) | ||
Contingent liability | $ 500,000 | |
DTP's revenue | $ 4,185,000 | |
Contingent liability, description | The Company has an additional contingent liability to Seller if Rubicon DTP is sold for greater than $12 million on or before May 17, 2022, in an amount equal to one of the following: (a) if the aggregate consideration paid for Rubicon DTP is greater than $12 million, but equal to or less than $30 million, then $1.5 million; (b) if the aggregate consideration paid for Rubicon DTP is greater than $30 million, but equal to or less than $60 million, then $2.0 million; (c) if the aggregate consideration paid for Rubicon DTP is greater than $60 million, but less than $100 million, then $3.0 million; or (d) if the total consideration paid for Rubicon DTP is greater than or equal to $100 million, then $4.5 million. | |
Seller One [Member] | ||
Commitments and Contingencies (Textual) | ||
Contingent liability | $ 500,000 | |
DTP's revenue | $ 7,500,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2017 | |
Income Taxes (Textual) | |||
Effective tax rate | 1.83% | 1.46% | |
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% | ||
Repatriation tax, description | The deemed inclusion from the repatriation tax increased from $3.9 million at the time of provision to $5.0 million at the time the calculation was finalized for the 2018 tax return. | ||
Tax expense | $ 6,000 | $ 16,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] $ in Thousands | 1 Months Ended |
Oct. 18, 2019USD ($) | |
Subsequent Events (Textual) | |
Sale of manufacturing equipment | $ 490 |
Book value | 180 |
Gain on sale of manufacturing equipment | $ 310 |