Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 04, 2020 | |
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, 2020 | |
Document Fiscal Year Focus | 2020 | |
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 Filer Number | 001-33834 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | DE | |
Entity Common Stock, Shares Outstanding | 2,421,822 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 10,326 | $ 8,709 |
Restricted cash | 171 | |
Short-term investments | 14,745 | 15,458 |
Accounts receivable, net | 703 | 1,053 |
Inventories | 1,033 | 1,710 |
Other inventory supplies | 139 | 140 |
Prepaid expenses and other current assets | 142 | 488 |
Assets held for sale | 1,011 | 3,957 |
Total current assets | 28,099 | 31,686 |
Inventories, non-current | 468 | 468 |
Property and equipment, net | 2,524 | 2,647 |
Total assets | 31,091 | 34,801 |
Liabilities and stockholders' equity | ||
Accounts payable | 326 | 733 |
Accrued payroll | 34 | 53 |
Accrued and other current liabilities | 175 | 344 |
Corporate income and franchise taxes | 304 | 296 |
Accrued real estate taxes | 54 | 114 |
Advance payments | 16 | |
Total current liabilities | 893 | 1,556 |
Total liabilities | 893 | 1,556 |
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; 2,958,850 and 2,955,253 shares issued; 2,409,822 and 2,702,171 shares outstanding, respectively | 29 | 29 |
Additional paid-in capital | 376,352 | 376,306 |
Treasury stock, at cost, 549,028 and 253,082 shares | (15,148) | (12,749) |
Accumulated other comprehensive loss | (1) | (1) |
Accumulated deficit | (331,034) | (330,340) |
Total stockholders' equity | 30,198 | 33,245 |
Total liabilities and stockholders' equity | $ 31,091 | $ 34,801 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
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 | 2,958,850 | 2,955,253 |
Common stock, shares outstanding | 2,409,822 | 2,702,171 |
Treasury stock, shares | 549,028 | 253,082 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,118 | $ 583 | $ 3,568 | $ 2,272 |
Cost of goods sold | 826 | 585 | 2,577 | 1,899 |
Gross profit (loss) | 292 | (2) | 991 | 373 |
Operating expenses: | ||||
General and administrative | 541 | 585 | 1,670 | 1,939 |
Sales and marketing | 87 | 111 | 243 | 275 |
Gain on sale or disposal of assets | (122) | (1,823) | (273) | |
Income (loss) from operations | (336) | (576) | 901 | (1,568) |
Other income (loss): | ||||
Interest income | 3 | 107 | 109 | 368 |
Unrealized gain on investments | 119 | 14 | ||
Realized gain (loss) on investments | 6 | (1,824) | 72 | |
Realized gain (loss) on foreign currency translation | 140 | (2) | 132 | (2) |
Total other income (loss) | 143 | 230 | (1,583) | 452 |
Loss before income taxes | (193) | (346) | (682) | (1,116) |
Income tax expense | 3 | 6 | 12 | 16 |
Net loss | $ (196) | $ (352) | $ (694) | $ (1,132) |
Net loss per common share | ||||
Basic | $ (0.08) | $ (0.13) | $ (0.27) | $ (0.42) |
Diluted | $ (0.08) | $ (0.13) | $ (0.27) | $ (0.42) |
Weighted average common shares outstanding used in computing net loss per common share | ||||
Basic | 2,439,309 | 2,691,815 | 2,527,574 | 2,708,765 |
Diluted | 2,439,309 | 2,691,815 | 2,527,574 | 2,708,765 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (196) | $ (352) | $ (694) | $ (1,132) |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on investments, net of tax | 2 | |||
Other comprehensive income (loss) | 2 | |||
Comprehensive loss | $ (196) | $ (352) | $ (694) | $ (1,130) |
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, 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 | ||||
Stock-based compensation, shares | ||||||
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 | |||||
Purchase of treasury 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 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 | ||||
Stock-based compensation, shares | ||||||
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 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) | ||||
Balance at Dec. 31, 2019 | $ 29 | $ (12,749) | 376,306 | (1) | (330,340) | 33,245 |
Balance, Shares at Dec. 31, 2019 | 2,955,253 | (253,082) | ||||
Stock-based compensation | 13 | 13 | ||||
Stock-based compensation, shares | ||||||
Purchase of treasury stock, at cost | $ (1,868) | (1,868) | ||||
Purchase of treasury stock, at cost, Shares | (229,778) | |||||
Net loss | (498) | (498) | ||||
Balance at Jun. 30, 2020 | $ 29 | $ (14,617) | 376,319 | (1) | (330,838) | 30,892 |
Balance, Shares at Jun. 30, 2020 | 2,955,253 | (482,860) | ||||
Stock-based compensation | 33 | 33 | ||||
Stock-based compensation, shares | 3,597 | |||||
Purchase of treasury stock, at cost | $ (531) | (531) | ||||
Purchase of treasury stock, at cost, Shares | 66,168 | |||||
Net loss | (196) | (196) | ||||
Balance at Sep. 30, 2020 | $ 29 | $ (15,148) | $ 376,352 | $ (1) | $ (331,034) | $ 30,198 |
Balance, Shares at Sep. 30, 2020 | 2,958,850 | (549,028) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (694) | $ (1,132) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 125 | 127 |
(Gain) on sale or disposal of assets | (1,823) | (273) |
Stock-based compensation | 46 | 525 |
Realized loss on equity investments, net | 1,824 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 351 | 388 |
Inventories | 677 | 332 |
Other inventory supplies | 1 | 39 |
Prepaid expenses and other assets | 346 | (3) |
Accounts payable | (406) | (143) |
Accrued payroll | (19) | 43 |
Accrued real estate taxes | (60) | (9) |
Corporate income and franchise taxes | 8 | 2 |
Advanced payments | (16) | (16) |
Accrued and other current liabilities | (169) | (36) |
Net cash provided by (used in) operating activities | 191 | (156) |
Cash flows from investing activities | ||
Purchase of property and equipment | (2) | (64) |
Proceeds from sale or disposal of assets | 4,769 | 273 |
Purchases of investments | (2,779) | (1,606) |
Proceeds from sale of investments | 1,666 | 536 |
Net cash provided by (used in) investing activities | 3,654 | (861) |
Cash flows from financing activities | ||
Taxes paid related to net share settlement of equity awards | (7) | |
Purchases of treasury stock | (2,399) | (501) |
Net cash used in financing activities | (2,399) | (508) |
Net effect of currency translation | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,446 | (1,525) |
Cash, cash equivalents and restricted cash, beginning of period | 8,880 | 11,410 |
Cash, cash equivalents and restricted cash, end of period | $ 10,326 | $ 9,885 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
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.'s (the "Company") annual report filed on Form 10-K for the fiscal year ended December 31, 2019. 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, 2020, are not necessarily indicative of results that may be expected for the year ending December 31, 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
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 and Rubicon Sapphire Technology (Malaysia) SDN BHD. 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, equity-related securities 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 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, resellers and pharmacy benefit managers. 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. 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. 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. After the purchases described below, the Company used up all of the remaining amount of the original authorized $3 million. Share repurchase activity during the three months ended September 30, 2020, was as follows: Periods Total Average Total Approximate of shares that may yet be purchased July 1, 2020 to July 31, 2020 66,168 $ 8.01 66,168 $ 0 August 1, 2020 to August 31, 2020 — September 1, 2020 to September 30, 2020 — Total 66,168 Inventories Inventories are valued at the lower of cost or net realizable value. Net realizable value is determined based on 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, 2020 December 31, 2019 (in thousands) Raw materials $ 468 $ 468 Work-in-process 712 901 Finished goods 321 809 $ 1,501 $ 2,178 As of December 31, 2019 and September 30, 2020, the Company made the determination that raw material inventories were such that the likelihood of significant usage within the current year was doubtful and reclassified such raw material inventories as non-current in the reported financial statements. Property and equipment Property and equipment consisted of the following: September 30, 2020 December 31, 2019 (in thousands) Machinery, equipment and tooling $ 3,343 $ 3,341 Buildings 1,711 1,711 Information systems 835 835 Land and land improvements 594 594 Furniture and fixtures 8 8 Total cost 6,491 6,489 Accumulated depreciation and amortization (3,967 ) (3,842 ) Property and equipment, net $ 2,524 $ 2,647 Assets 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, 2019, the Company reviewed the current fair value of its assets and concluded no adjustments were needed. Additionally, no adjustments were recorded for the nine months ended September 30, 2020. 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 June 2020, the Company completed the sale of its Malaysian facility for a sale price of Ringgit Malaysia 20,750,000. The Company realized net proceeds of approximately Ringgit Malaysia 20,364,000 (approximately $4.8 million based on the exchange rate on June 30, 2020 of $1=MYR4.27) after the payment of consent fees, real estate taxes, brokerage and legal fees, transfer and other expenses. The Company recorded a gain on the disposal of the Malaysian facility of approximately $1.8 million. The Company collected a payment of $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. The Company is pursuing the sale of its remaining parcels of land in Batavia, Illinois, and 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, 2020 and December 31, 2019, 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 of these properties. Revenue recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue From Contracts with Customers 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 $1,000 and $3,000 at September 30, 2020 and December 31, 2019, 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, 2020 and 2019, 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 20,500 and 32,839 shares of the Company's common stock that would have had an anti-dilutive or immaterial effect at September 30, 2020 and 2019, respectively. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2020 | |
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, equity-related securities 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 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, 2020: Amortized Gross Gross Fair (in thousands) Short-term investments: U.S. Treasury securities $ 14,745 $ — $ — $ 14,745 Total short-term investments $ 14,745 $ — $ — $ 14,745 The following table presents the amortized cost and gross unrealized losses on all securities at December 31, 2019: Amortized Gross Gross Fair (in thousands) Short-term investments: U.S. Treasury securities $ 14,668 — — $ 14,668 Marketable securities 961 — (171 ) 790 Total short-term investments $ 15,629 $ — $ (171 ) $ 15,458 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, equity-related securities and corporate notes. 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, 2020: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 3,137 $ — $ — $ 3,137 Investments: Available-for-sale securities — current: U.S. Treasury securities — 14,745 — 14,745 Total $ 3,137 $ 14,745 $ — $ 17,882 The following table summarizes the Company's financial assets measured at fair value on a recurring basis as of December 31, 2019: Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 3,759 $ — $ — $ 3,759 Investments: Available-for-sale securities — current: U.S. Treasury securities — 14,668 — 14,668 Marketable securities 790 — — 790 Total $ 4,549 $ 14,668 $ — $ 19,217 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 $7.2 million and $4.8 million of time deposits included in cash and cash equivalents as of September 30, 2020 and December 31, 2019, respectively. |
Significant Customers
Significant Customers | 9 Months Ended |
Sep. 30, 2020 | |
Significant Customers [Abstract] | |
SIGNIFICANT CUSTOMERS | 4. SIGNIFICANT CUSTOMERS For the three months ended September 30, 2020, the Company had three customers individually that accounted for approximately 24%, 18%, and 12%, of revenue. 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 nine months ended September 30, 2020, the Company had four customers that accounted for approximately 22%, 15%, 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. No other customer accounted for 10% or more of the Company's revenues during the three and nine months ended September 30, 2020 and 2019. Customers individually representing more than 10% of trade receivables accounted for approximately 65% and 74% of accounts receivable as of September 30, 2020 and December 31, 2019, respectively. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 5. STOCKHOLDERS' EQUITY Common shares reserved As of September 30, 2020, the Company had reserved 76,450 shares of common stock for issuance upon the exercise of outstanding common stock options and vesting of RSUs. Also, 281,775 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, 2020. |
Stock Incentive Plans
Stock Incentive Plans | 9 Months Ended |
Sep. 30, 2020 | |
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 March 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, 281,775 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, 2020, and changes during the nine months then ended: Shares available for grant Number of options outstanding Weighted- average exercise price Number of restricted stock and board shares issued Number of RSUs outstanding At January 1, 2020 281,386 22,839 $ 13.48 99,570 54,003 Granted — — — — — Exercised/issued — — — — — Cancelled/forfeited 389 (389 ) 196.31 — — At September 30, 2020 281,775 22,450 $ 10.31 99,570 54,003 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, 2020, there was $46,960 of intrinsic value arising from 20,500 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 36.13% 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, 2020, the Company recorded $3,000 and $8,000, respectively, of stock option compensation expense. For the three and nine months ended September 30, 2019, the Company recorded $6,000 and $19,000, respectively, of stock option compensation expense. As of September 30, 2020, the Company had $0.00 of total unrecognized compensation cost related to non-vested stock option awards granted under the Company’s stock-based plans. A summary of the Company’s non-vested options during the nine months ended September 30, 2020, is presented below: Options Weighted- average exercise price Non-vested options at January 1, 2020 4,866 $ 6.10 Granted — — Vested (4,866) 6.10 Cancelled/forfeited — — Non-vested options at September 30, 2020 0 $ 0 For the three and nine months ended September 30, 2020, the Company recorded $30,000 and $30,000, respectively, of RSU expense related to Board compensation. For the three months and nine months ended September 30, 2019, the Company recorded $0 and $7,000, respectively, of RSU expense. A summary of the Company’s RSUs for the nine month period ended September 30, 2020 is presented below: RSUs outstanding Weighted average time of grant Aggregate intrinsic value Non-vested RSUs as of January 1, 2020 54,003 $ 6.56 Granted — — Vested — — Cancelled — — Non-vested RSUs at September 30, 2020 54,003 $ 6.56 $ 354,250 Every year at the Company’s annual meeting each member of the Board of Directors is issued an RSU and it vests the following year at the next annual meeting. When such RSU vests, it is automatically converted into $10,000 of the Company’s common stock based upon the closing price the day before the annual meeting. For the three and nine months ended September 30, 2020, the Company recorded $0 and $8,000, respectively, of stock compensation expense related to restricted stock. 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. The Company recognized an expense of $414,000 during the nine months ended September 30, 2019 for the granting of shares to an officer of the Company as a bonus. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
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, results of operations or cash flows of the Company. COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic. The full impact of the COVID-19 outbreak is unknown and cannot be reasonably estimated. The magnitude and duration of the COVID-19 outbreak, as well as other factors, could result in a material impact to the Company’s financial statements in future reporting periods. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020, a valuation allowance has been included in the 2020 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, 2020, 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”) carry forward 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, 2020, is based on an estimated combined statutory effective tax rate. The Company recorded for the three and nine months ended September 30, 2020, a tax expense of $3,000 and $12,000, respectively, for an effective tax rate of -1.59% and -1.71%, respectively. For the three and nine months ended September 30, 2020 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. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 9. SEGMENT INFORMATION The Company has determined that it operates in two segments, the sapphire and pharmacy businesses. Revenue is attributed by geographic region based on ship-to location of the Company's customers. The following table summarizes revenue by geographic region: Three months ended Nine months ended 2020 2019 2020 2019 (in thousands) (in thousands) North America $ 1,014 $ 561 $ 3,188 $ 2,120 Asia 91 14 359 134 Other 13 8 21 18 Total revenue $ 1,118 $ 583 $ 3,568 $ 2,272 The following table summarizes sales by product type: Three months ended Nine months ended 2020 2019 2020 2019 (in thousands) (in thousands) Optical $ 892 $ 520 $ 3.009 $ 2,178 Direct Dose Rx 226 63 559 94 Total revenue $ 1,118 $ 583 $ 3,568 $ 2,272 The following table summarizes assets by geographic region: As of September 30, As of December 31, 2020 2019 (in thousands) North America $ 30,381 $ 29,703 Asia 710 5,094 Other — 4 Total assets $ 31,091 $ 34,801 Direct Dose Rx accounted for a loss of approximately $92,000 and $192,000 for the three months ended September 30, 2020 and 2019, respectively, and approximately $287,000 and $277,000 for the nine months ended September 30, 2020 and 2019, respectively. The Company established Direct Dose Rx in May 2019. Direct Dose Rx assets are currently not material to the consolidated financial information of the Company and therefore there is limited disclosure relating specifically to them. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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 and Rubicon Sapphire Technology (Malaysia) SDN BHD. 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, equity-related securities 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 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, resellers and pharmacy benefit managers. 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. |
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. 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. After the purchases described below, the Company used up all of the remaining amount of the original authorized $3 million. Share repurchase activity during the three months ended September 30, 2020, was as follows: Periods Total Average Total Approximate of shares that may yet be purchased July 1, 2020 to July 31, 2020 66,168 $ 8.01 66,168 $ 0 August 1, 2020 to August 31, 2020 — September 1, 2020 to September 30, 2020 — Total 66,168 |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value. Net realizable value is determined based on 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, 2020 December 31, 2019 (in thousands) Raw materials $ 468 $ 468 Work-in-process 712 901 Finished goods 321 809 $ 1,501 $ 2,178 As of December 31, 2019 and September 30, 2020, the Company made the determination that raw material inventories were such that the likelihood of significant usage within the current year was doubtful and reclassified such raw material inventories as non-current in the reported financial statements. |
Property and equipment | Property and equipment Property and equipment consisted of the following: September 30, 2020 December 31, 2019 (in thousands) Machinery, equipment and tooling $ 3,343 $ 3,341 Buildings 1,711 1,711 Information systems 835 835 Land and land improvements 594 594 Furniture and fixtures 8 8 Total cost 6,491 6,489 Accumulated depreciation and amortization (3,967 ) (3,842 ) Property and equipment, net $ 2,524 $ 2,647 |
Assets held for sale and long-lived assets | Assets 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, 2019, the Company reviewed the current fair value of its assets and concluded no adjustments were needed. Additionally, no adjustments were recorded for the nine months ended September 30, 2020. 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 June 2020, the Company completed the sale of its Malaysian facility for a sale price of Ringgit Malaysia 20,750,000. The Company realized net proceeds of approximately Ringgit Malaysia 20,364,000 (approximately $4.8 million based on the exchange rate on June 30, 2020 of $1=MYR4.27) after the payment of consent fees, real estate taxes, brokerage and legal fees, transfer and other expenses. The Company recorded a gain on the disposal of the Malaysian facility of approximately $1.8 million. The Company collected a payment of $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. The Company is pursuing the sale of its remaining parcels of land in Batavia, Illinois, and 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, 2020 and December 31, 2019, 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 of these properties. |
Revenue recognition | Revenue recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue From Contracts with Customers 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 $1,000 and $3,000 at September 30, 2020 and December 31, 2019, 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, 2020 and 2019, 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 20,500 and 32,839 shares of the Company's common stock that would have had an anti-dilutive or immaterial effect at September 30, 2020 and 2019, respectively. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of share repurchase activity | Periods Total Average Total Approximate of shares that may yet be purchased July 1, 2020 to July 31, 2020 66,168 $ 8.01 66,168 $ 0 August 1, 2020 to August 31, 2020 — September 1, 2020 to September 30, 2020 — Total 66,168 |
Schedule of inventories | September 30, 2020 December 31, 2019 (in thousands) Raw materials $ 468 $ 468 Work-in-process 712 901 Finished goods 321 809 $ 1,501 $ 2,178 |
Schedule of property and equipment | September 30, 2020 December 31, 2019 (in thousands) Machinery, equipment and tooling $ 3,343 $ 3,341 Buildings 1,711 1,711 Information systems 835 835 Land and land improvements 594 594 Furniture and fixtures 8 8 Total cost 6,491 6,489 Accumulated depreciation and amortization (3,967 ) (3,842 ) Property and equipment, net $ 2,524 $ 2,647 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of amortized cost and gross unrealized losses on all securities | Amortized Gross Gross Fair (in thousands) Short-term investments: U.S. Treasury securities $ 14,745 $ — $ — $ 14,745 Total short-term investments $ 14,745 $ — $ — $ 14,745 Amortized Gross Gross Fair (in thousands) Short-term investments: U.S. Treasury securities $ 14,668 — — $ 14,668 Marketable securities 961 — (171 ) 790 Total short-term investments $ 15,629 $ — $ (171 ) $ 15,458 |
Summary of financial assets measured at fair value on a recurring basis | Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 3,137 $ — $ — $ 3,137 Investments: Available-for-sale securities — current: U.S. Treasury securities — 14,745 — 14,745 Total $ 3,137 $ 14,745 $ — $ 17,882 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 3,759 $ — $ — $ 3,759 Investments: Available-for-sale securities — current: U.S. Treasury securities — 14,668 — 14,668 Marketable securities 790 — — 790 Total $ 4,549 $ 14,668 $ — $ 19,217 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of activity of stock incentive and equity plans | Shares available for grant Number of options outstanding Weighted- average exercise price Number of restricted stock and board shares issued Number of RSUs outstanding At January 1, 2020 281,386 22,839 $ 13.48 99,570 54,003 Granted — — — — — Exercised/issued — — — — — Cancelled/forfeited 389 (389 ) 196.31 — — At September 30, 2020 281,775 22,450 $ 10.31 99,570 54,003 |
Schedule of non-vested options | Options Weighted- average exercise price Non-vested options at January 1, 2020 4,866 $ 6.10 Granted — — Vested (4,866) 6.10 Cancelled/forfeited — — Non-vested options at September 30, 2020 0 $ 0 |
Schedule of RSUs non-vested | RSUs outstanding Weighted average time of grant Aggregate intrinsic value Non-vested RSUs as of January 1, 2020 54,003 $ 6.56 Granted — — Vested — — Cancelled — — Non-vested RSUs at September 30, 2020 54,003 $ 6.56 $ 354,250 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of geographic region | Three months ended Nine months ended 2020 2019 2020 2019 (in thousands) (in thousands) North America $ 1,014 $ 561 $ 3,188 $ 2,120 Asia 91 14 359 134 Other 13 8 21 18 Total revenue $ 1,118 $ 583 $ 3,568 $ 2,272 Three months ended Nine months ended 2020 2019 2020 2019 (in thousands) (in thousands) Optical $ 892 $ 520 $ 3.009 $ 2,178 Direct Dose Rx 226 63 559 94 Total revenue $ 1,118 $ 583 $ 3,568 $ 2,272 As of September 30, As of December 31, 2020 2019 (in thousands) North America $ 30,381 $ 29,703 Asia 710 5,094 Other — 4 Total assets $ 31,091 $ 34,801 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Aug. 31, 2020 | Jul. 31, 2020 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Total number of shares purchased | 66,168 | 66,168 | ||
Average price paid per share | $ 8.01 | |||
Total number of shares purchased as part of publicly announced program | 66,168 | |||
Approximate dollar value of shares that may yet be purchased under the program | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Raw materials | $ 468 | $ 468 |
Work-in-process | 712 | 901 |
Finished goods | 321 | 809 |
Inventories | $ 1,501 | $ 2,178 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Summary Of Significant Accounting Policies [Line Items] | ||
Total cost | $ 6,491 | $ 6,489 |
Accumulated depreciation and amortization | (3,967) | (3,842) |
Property and equipment, net | 2,524 | 2,647 |
Machinery, equipment and tooling [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Total cost | 3,343 | 3,341 |
Buildings [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Total cost | 1,711 | 1,711 |
Information systems [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Total cost | 835 | 835 |
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_7
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Nov. 30, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies (Textual) | ||||||
Repurchase of common stock | $ 3,000 | |||||
Stock repurchase plan expire date | Nov. 19, 2021 | |||||
Warranty term | 90 days | |||||
warranty reserve | $ 1,000 | $ 1,000 | $ 3,000 | |||
Research and development costs | ||||||
Outstanding exercisable shares | 20,500 | 32,839 | 20,500 | |||
Consumable assets the amount | $ 76,000 | |||||
property and equipment | 200,000 | |||||
Collected payment | $ 125,000 | |||||
Original authorized amount | $ 3,000 | |||||
Malaysia [Member] | ||||||
Summary of Significant Accounting Policies (Textual) | ||||||
Description sale price | The Company completed the sale of its Malaysian facility for a sale price of Ringgit Malaysia 20,750,000. The Company realized net proceeds of approximately Ringgit Malaysia 20,364,000 (approximately $4.8 million based on the exchange rate on June 30, 2020 of $1=MYR4.27) after the payment of consent fees, real estate taxes, brokerage and legal fees, transfer and other expenses. The Company recorded a gain on the disposal of the Malaysian facility of approximately $1.8 million. |
Investments (Details)
Investments (Details) - Short-term Investments [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 14,745 | $ 15,629 |
Gross unrealized gains | ||
Gross unrealized losses | (171) | |
Fair value | 14,745 | 15,458 |
U.S. Treasury securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 14,745 | 14,668 |
Gross unrealized gains | ||
Gross unrealized losses | ||
Fair value | $ 14,745 | 14,668 |
Marketable securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 961 | |
Gross unrealized gains | ||
Gross unrealized losses | (171) | |
Fair value | $ 790 |
Investments (Details 1)
Investments (Details 1) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Investments: | ||
Total | $ 17,882 | $ 19,217 |
Financial assets measured at fair value on a recurring basis [Member] | Marketable securities [Member] | ||
Investments: | ||
Available-for-sale securities - current: | 790 | |
Financial assets measured at fair value on a recurring basis [Member] | U.S. Treasury securities [Member] | ||
Investments: | ||
Available-for-sale securities - current: | 14,745 | 14,668 |
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: | 3,137 | 3,759 |
Level 1 [Member] | ||
Investments: | ||
Total | 3,137 | 4,549 |
Level 1 [Member] | Financial assets measured at fair value on a recurring basis [Member] | Marketable securities [Member] | ||
Investments: | ||
Available-for-sale securities - current: | 790 | |
Level 1 [Member] | Financial assets measured at fair value on a recurring basis [Member] | U.S. Treasury securities [Member] | ||
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: | 3,137 | 3,759 |
Level 2 [Member] | ||
Investments: | ||
Total | 14,745 | 14,668 |
Level 2 [Member] | Financial assets measured at fair value on a recurring basis [Member] | Marketable securities [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] | ||
Investments: | ||
Available-for-sale securities - current: | 14,745 | 14,668 |
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] | Marketable securities [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] | ||
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, 2020 | Dec. 31, 2019 |
Investments (Textual) | ||
Time deposits included in cash and cash equivalents | $ 7,200 | $ 4,800 |
Significant Customers (Details)
Significant Customers (Details) - Customers | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Significant Customers (Textual) | ||||
Number of customers | 3 | 4 | 4 | 3 |
Trade Receivables [Member] | ||||
Significant Customers (Textual) | ||||
Concentration risk, percentage | 65.00% | 74.00% | ||
Sales Revenue, Net [Member] | ||||
Significant Customers (Textual) | ||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Sales Revenue, Net [Member] | Customer One [Member] | ||||
Significant Customers (Textual) | ||||
Concentration risk, percentage | 24.00% | 26.00% | 22.00% | 21.00% |
Sales Revenue, Net [Member] | Customer Two [Member] | ||||
Significant Customers (Textual) | ||||
Concentration risk, percentage | 18.00% | 13.00% | 15.00% | 16.00% |
Sales Revenue, Net [Member] | Customer Three [Member] | ||||
Significant Customers (Textual) | ||||
Concentration risk, percentage | 12.00% | 12.00% | 12.00% | 12.00% |
Sales Revenue, Net [Member] | Customer Four [Member] | ||||
Significant Customers (Textual) | ||||
Concentration risk, percentage | 11.00% | 10.00% | ||
Accounts Receivable [Member] | ||||
Significant Customers (Textual) | ||||
Concentration risk, percentage | 10.00% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Sep. 30, 2020shares |
Stockholders' Equity (Textual) | |
Reserved common stock shares for issuance | 76,450 |
Common stock reserved for future grants | 281,775 |
Stock Incentive Plans (Details)
Stock Incentive Plans (Details) - Stock incentive and equity plans [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant, Balance | 281,386 |
Shares available for grant, Granted | |
Shares available for grant, Exercised/issued | |
Shares available for grant, Canceled/forfeited | 389 |
Shares available for grant, Balance | 281,775 |
Number of options outstanding, Balance | 22,839 |
Number of options outstanding, Granted | |
Number of options outstanding, Exercised/issued | |
Number of options outstanding, Canceled/forfeited | (389) |
Number of options outstanding, Balance | 22,450 |
Weighted-average option exercise price, Balance | $ / shares | $ 13.48 |
Weighted-average option exercise price, Granted | $ / shares | |
Weighted-average option exercise price, Exercised/issued | $ / shares | |
Weighted-average option exercise price, Cancelled/forfeited | $ / shares | 196.31 |
Weighted-average option exercise price, Balance | $ / shares | $ 10.31 |
Number of restricted stock and board shares issued, Balance | 99,570 |
Number of restricted stock and board shares issued, Granted | |
Number of restricted stock and board shares issued, Exercised/issued | |
Number of restricted stock and board shares issued, Canceled/forfeited | |
Number of restricted stock and board shares issued, Balance | 99,570 |
Number of RSUs outstanding, Balance | 54,003 |
Number of RSUs outstanding, Granted | |
Number of RSUs outstanding, Exercised/issued | |
Number of RSUs outstanding, Canceled/forfeited | |
Number of RSUs outstanding, Balance | 54,003 |
Stock Incentive Plans (Details
Stock Incentive Plans (Details 1) - Non-vested options [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Non-vested options | |
Non-vested, Beginning balance | shares | 4,866 |
Granted | shares | |
Vested | shares | (4,866) |
Canceled/forfeited | shares | |
Non-vested, Ending balance | shares | 0 |
Weighted-average exercise price | |
Non-vested, Beginning balance | $ / shares | $ 6.10 |
Granted | $ / shares | |
Vested | $ / shares | 6.10 |
Canceled/forfeited | $ / shares | |
Non-vested, Ending balance | $ / shares | $ 0 |
Stock Incentive Plans (Detail_2
Stock Incentive Plans (Details 2) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested restricted stock units, Beginning balance | shares | 54,003 |
RSUs outstanding, Granted | shares | |
RSUs outstanding, Vested | shares | |
RSUs outstanding, Cancelled | shares | |
Non-vested restricted stock units, Ending balance | shares | 54,003 |
Weighted average price at time of grant, Beginning balance | $ / shares | $ 6.56 |
Weighted average price at time of grant, Granted | $ / shares | |
Weighted average price at time of grant, Vested | $ / shares | |
Weighted average price at time of grant, Cancelled | $ / shares | |
Weighted average price at time of grant, Ending balance | $ / shares | $ 6.56 |
Aggregate intrinsic value, Non-vested, Ending balance | $ | $ 354,250 |
Stock Incentive Plans (Detail_3
Stock Incentive Plans (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2016 | Dec. 31, 2019 | Aug. 31, 2007 | |
Stock Incentive Plans (Textual) | |||||||
Common stock reserved for future issuance of awards | 281,775 | 281,775 | |||||
Stock intrinsic value | $ 46,960 | $ 46,960 | |||||
Stock options exercisable or outstanding | 20,500 | 20,500 | |||||
Stock compensation expense | 3,000 | $ 6,000 | 8,000 | $ 19,000 | |||
Unrecognized compensation cost | 0 | 0 | |||||
Number of restricted stock units granted | 30,000 | 0 | $ 30,000 | 7,000 | |||
Restricted stock units, description | Every year at the Company’s annual meeting each member of the Board of Directors is issued an RSU and it vests the following year at the next annual meeting. When such RSU vests, it is automatically converted into $10,000 of the Company’s common stock based upon the closing price the day before the annual meeting. | ||||||
Stock compensation expense related to restricted stock | 0 | 2,000 | $ 8,000 | 7,000 | |||
Stock compensation forfeiture rate | 36.13% | ||||||
Stock option compensation expense | $ 6,000 | $ 19,000 | |||||
Non-vested restricted stock shares | 0 | 0 | 0 | ||||
Recognized expense | $ 414,000 | ||||||
2007 Stock Incentive Plan [Member] | |||||||
Stock Incentive Plans (Textual) | |||||||
Maximum number of shares awarded or sold | 440,769 | ||||||
2016 Plan [Member] | |||||||
Stock Incentive Plans (Textual) | |||||||
Common stock reserved for future issuance of awards | 281,775 | ||||||
Plan termination date | Mar. 17, 2026 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2017 | |
U.S. corporate tax rate | 6.20% | ||
Federal [Member] | |||
State tax net of federal benefit | 1.59% | 1.71% | |
U.S. corporate tax rate | 21.00% | ||
Tax expense | $ 3,000 | $ 12,000 | |
Maximum [Member] | |||
U.S. corporate tax rate | 35.00% | ||
Repatriation tax | $ 5,000 | ||
Minimum [Member] | |||
U.S. corporate tax rate | 21.00% | ||
Repatriation tax | $ 3,900 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Total revenue | $ 1,118 | $ 583 | $ 3,568 | $ 2,272 |
North America [Member] | ||||
Total revenue | 1,014 | 561 | 3,188 | 2,120 |
Asia [Member] | ||||
Total revenue | 91 | 14 | 359 | 134 |
Other [Member] | ||||
Total revenue | $ 13 | $ 8 | $ 21 | $ 18 |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Total revenue | $ 1,118 | $ 583 | $ 3,568 | $ 2,272 |
Optical [Member] | ||||
Total revenue | 892 | 520 | 3,009 | 2,178 |
Direct Dose Rx [Member] | ||||
Total revenue | $ 226 | $ 63 | $ 559 | $ 94 |
Segment Information (Details 2)
Segment Information (Details 2) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Total assets | $ 31,091 | $ 34,801 |
North America [Member] | ||
Total assets | 30,381 | 29,703 |
Asia [Member] | ||
Total assets | 710 | 5,094 |
Other [Member] | ||
Total assets | $ 4 |
Segment Information (Details Te
Segment Information (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Loss | $ (336) | $ (576) | $ 901 | $ (1,568) |
Direct Dose Rx [Member] | ||||
Loss | $ 92 | $ 192 | $ 287 | $ 277 |