Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Energy Recovery, Inc. | ||
Trading Symbol | ERII | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 51,951,134 | ||
Entity Public Float | $ 79,500,000 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,421,517 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 99,931 | $ 15,501 |
Restricted cash | 1,490 | 2,623 |
Short-term investments | 257 | 13,072 |
Accounts receivable, net of allowance for doubtful accounts of $166 and $155 at December 31, 2015 and 2014 | 11,590 | 10,941 |
Unbilled receivables, current | 1,879 | 1,343 |
Inventories | 6,503 | 8,204 |
Deferred tax assets, net | 938 | 240 |
Prepaid expenses and other current assets | 943 | 1,317 |
Total current assets | 123,531 | 53,241 |
Restricted cash, non-current | 2,317 | 2,850 |
Unbilled receivables, non-current | 6 | 414 |
Long-term investments | 267 | |
Property and equipment, net | 10,622 | 13,211 |
Goodwill | 12,790 | 12,790 |
Other intangible assets, net | 2,531 | 3,166 |
Other assets, non-current | 2 | 2 |
Total assets | 151,799 | 85,941 |
Current liabilities: | ||
Accounts payable | 1,865 | 1,817 |
Accrued expenses and other current liabilities | 7,808 | 8,427 |
Income taxes payable | 2 | 4 |
Accrued warranty reserve | 461 | 755 |
Deferred revenue, current | 5,878 | 519 |
Current portion long-term debt | 10 | |
Total current liabilities | 16,024 | 11,522 |
Long-term debt, net of current portion | 38 | |
Deferred tax liabilities, non-current, net | 2,360 | 1,989 |
Deferred revenue, non-current | 69,000 | 59 |
Other non-current liabilities | 718 | 2,453 |
Total liabilities | $ 88,140 | $ 16,023 |
Commitments and Contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding | ||
Common stock, $0.001 par value; 200,000,000 shares authorized; 54,948,235 shares issued and 52,468,779 shares outstanding at December 31, 2015 and 54,398,421 shares issued and 51,918,965 shares outstanding at December 31, 2014 | $ 55 | $ 54 |
Additional paid-in capital | 129,809 | 124,440 |
Accumulated other comprehensive loss | (64) | (73) |
Treasury stock, at cost 2,479,456 shares repurchased at December 31, 2015 and 2014 | (6,835) | (6,835) |
Accumulated deficit | (59,306) | (47,668) |
Total stockholders’ equity | 63,659 | 69,918 |
Total liabilities and stockholders’ equity | $ 151,799 | $ 85,941 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for doubtful accounts (in Dollars) | $ 166 | $ 155 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 54,948,235 | 54,398,421 |
Common stock, shares outstanding | 52,468,779 | 51,918,965 |
Treasury stock, at cost, shares | 2,479,456 | 2,479,456 |
Consolidated Statements of Oper
Consolidated Statements of Operations shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Product revenue | $ 43,671 |
Product cost of revenue | 19,111 |
Product gross profit | 24,560 |
License and development revenue | 1,042 |
Operating expenses: | |
General and administrative | 19,773 |
Sales and marketing | 9,326 |
Research and development | 7,659 |
Amortization of intangible assets | 635 |
Total operating expenses | 37,393 |
Loss from operations | (11,791) |
Other (expense) income: | |
Interest (expense) | (42) |
Other non-operating (expense) income | (139) |
Loss before income taxes | (11,972) |
(Benefit from) provision for income taxes | (334) |
Net loss | $ (11,638) |
Loss per share: | |
Basic and diluted (in Dollars per share) | $ / shares | $ (0.22) |
Number of shares used in per share calculations: | |
Basic and diluted (in Shares) | shares | 52,151 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net loss | $ (11,638) | $ (18,705) | $ (3,106) |
Other comprehensive income (loss), net of reclassification adjustments: | |||
Foreign currency translation adjustments | 4 | 39 | (12) |
Unrealized gain (loss) on investments | 5 | (5) | (16) |
Other comprehensive income (loss), net of tax | 9 | 34 | (28) |
Comprehensive loss | $ (11,629) | $ (18,671) | $ (3,134) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Receivables from Stockholder [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2012 | $ 53 | $ (4,000) | $ 117,264 | $ (79) | $ (25,857) | $ 87,381 | |
Balance (in Shares) at Dec. 31, 2012 | 52,685,000 | (1,783,000) | |||||
Net loss | (3,106) | (3,106) | $ (3,106) | ||||
Unrealized gains (losses) on investment | (16) | (16) | (16) | ||||
Foreign currency translation adjustments | (12) | (12) | (12) | ||||
Issuance of common stock | 504 | 504 | |||||
Issuance of common stock (in Shares) | 452,000 | ||||||
Employee share-based compensation | 2,162 | 2,162 | |||||
Non-employee stock-based compensation | 2 | 2 | |||||
Balance at Dec. 31, 2013 | $ 53 | $ (4,000) | 119,932 | (107) | (28,963) | 86,915 | |
Balance (in Shares) at Dec. 31, 2013 | 53,137,000 | (1,783,000) | |||||
Net loss | (18,705) | (18,705) | (18,705) | ||||
Unrealized gains (losses) on investment | (5) | (5) | (5) | ||||
Foreign currency translation adjustments | 39 | 39 | 39 | ||||
Issuance of common stock | $ 1 | 2,404 | 2,405 | ||||
Issuance of common stock (in Shares) | 1,261,000 | ||||||
Repurchase of common stock for treasury | $ (2,835) | (2,835) | $ (2,800) | ||||
Repurchase of common stock for treasury (in Shares) | (696,000) | (696,853) | |||||
Employee share-based compensation | 2,104 | 2,104 | |||||
Balance at Dec. 31, 2014 | $ 54 | $ (6,835) | 124,440 | (73) | (47,668) | 69,918 | $ 69,918 |
Balance (in Shares) at Dec. 31, 2014 | 54,398,000 | (2,479,000) | |||||
Net loss | (11,638) | (11,638) | (11,638) | ||||
Unrealized gains (losses) on investment | 5 | 5 | 5 | ||||
Foreign currency translation adjustments | 4 | 4 | 4 | ||||
Issuance of common stock | $ 1 | 1,325 | 1,326 | ||||
Issuance of common stock (in Shares) | 550,000 | ||||||
Employee share-based compensation | 4,044 | 4,044 | |||||
Balance at Dec. 31, 2015 | $ 55 | $ (6,835) | $ 129,809 | $ (64) | $ (59,306) | $ 63,659 | $ 63,659 |
Balance (in Shares) at Dec. 31, 2015 | 54,948,000 | (2,479,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows From Operating Activities | |||
Net loss | $ (11,638) | $ (18,705) | $ (3,106) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Stock-based compensation | 4,059 | 2,104 | 2,177 |
Depreciation and amortization | 3,838 | 4,028 | 3,797 |
Amortization of premiums on investments | 162 | 453 | 409 |
Provision for warranty claims | 135 | 156 | 126 |
Provision for doubtful accounts | 112 | 299 | 69 |
Loss on fair value of put options | 58 | ||
Loss (gain) on foreign currency transactions | 1 | (153) | (27) |
Loss on disposal of fixed assets | 38 | 71 | |
Gain on fair value remeasurement of contingent consideration | (149) | ||
Non-cash restructuring charges | 184 | ||
Reversal of accruals related to expired warranties | (395) | (340) | |
Deferred income taxes | (326) | 315 | 227 |
Valuation adjustments for excess or obsolete inventory | (250) | 320 | 297 |
Other non-cash adjustments | (35) | 375 | (123) |
Changes in operating assets and liabilities: | |||
Inventories | 1,951 | (3,569) | (117) |
Prepaid and other assets | 316 | (254) | 3,227 |
Accounts payable | 48 | 628 | (866) |
Litigation settlement | (1,700) | ||
Accounts receivable | (743) | 4,002 | (2,042) |
Unbilled receivables | (128) | 4,882 | (751) |
Accrued expenses and other liabilities | (708) | 1,864 | (686) |
Income taxes payable | (3) | (18) | (18) |
Net cash provided by (used in) operating activities | 69,055 | (3,715) | 2,088 |
Cash Flows From Investing Activities | |||
Maturities of marketable securities | 12,925 | 6,027 | 9,573 |
Restricted cash | 1,665 | 3,306 | 822 |
Capital expenditures | (572) | (2,562) | (1,132) |
Purchases of marketable securities | (273) | (15,278) | |
Proceeds from sale of capitalized assets | 1,163 | ||
Net cash provided by (used in) investing activities | 14,018 | 6,498 | (4,852) |
Cash Flows From Financing Activities | |||
Net proceeds from issuance of common stock | 1,326 | 2,405 | 504 |
Proceeds from long-term debt | 55 | ||
Repayment of long-term debt | (7) | ||
Repurchase of common stock | (2,835) | ||
Payment of contingent consideration | (1,375) | ||
Repayment of capital lease obligation | (18) | ||
Net cash provided by (used in) financing activities | 1,374 | (1,805) | 486 |
Effect of exchange rate differences on cash and cash equivalents | (17) | 152 | 7 |
Net change in cash and cash equivalents | 84,430 | 1,130 | (2,271) |
Cash and cash equivalents, beginning of year | 15,501 | 14,371 | 16,642 |
Cash and cash equivalents, end of year | 99,931 | 15,501 | 14,371 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 42 | 1 | |
Cash received for income tax refunds | 4 | 1 | 3,123 |
Cash paid for income taxes | 24 | 35 | 22 |
Supplemental disclosure of non-cash transactions: | |||
Purchases of property and equipment in trade accounts payable and accrued expenses and other liabilities | 43 | 1 | 31 |
Software License Arrangement [Member] | |||
Changes in operating assets and liabilities: | |||
Deferred revenue | 73,958 | ||
Portion of Revenue of Product Sales Agreement for Installation, Start-up, and Training [Member] | |||
Changes in operating assets and liabilities: | |||
Deferred revenue | $ 343 | $ (331) | $ (420) |
Note 1 - Description of Busines
Note 1 - Description of Business | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Nature of Operations [Text Block] | Note 1 — Description of Business Energy Recovery, Inc. (the “Company”, “Energy Recovery”, “our”, “us”, or “we”) is an energy solutions provider. We convert wasted pressure energy into a reusable asset and preserve or eliminate pumping technology in hostile processing environments. Our core competencies are fluid dynamics and advanced material science. Our products are marketed and sold in fluid flow markets, such as water and oil & gas. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2 — Summary of Significant Accounting Policies Basis of Presentation Our Consolidated Financial Statements include the accounts of Energy Recovery, Inc. and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires our management to make judgments, assumptions, and estimates that affect the amounts reported in our Consolidated Financial Statements and accompanying Notes. The accounting policies that reflect our more significant estimates and judgments and that we believe are the most critical to aid in fully understanding and evaluating our reported financial results are revenue recognition; allowance for doubtful accounts; allowance for product warranty; valuation of stock options; valuation and impairment of goodwill and acquired intangible assets; useful lives for depreciation and amortization; valuation adjustments for excess and obsolete inventory; deferred taxes and valuation allowances on deferred tax assets; and evaluation and measurement of contingencies, including contingent consideration. Those estimates could change, and as a result, actual results could differ materially from those estimates. For example, the Company records impairment losses on long-lived assets used in operations when events and circumstances indicate that long-lived assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. The Company’s estimate of undiscounted cash flows, at December 31, 2015 and 2014 indicated that such carrying amounts were expected to be recovered. Nonetheless, it is possible that the estimate of undiscounted cash flows may change in the future resulting in the need to write down those assets to fair value. Change in Accounting Principle for Goodwill Impairment Testing In 2014 and prior, we evaluated our goodwill for impairment at the reporting unit level annually during the fourth quarter or when indicators for potential impairment were present. At that time we operated under a single reporting unit. On July 1, 2015, we adopted a new organizational and reporting structure based on the operating segments, Water and Oil & Gas. We have reassessed our reporting units and the impairment analysis of goodwill and long-lived assets, and performed our analysis based on the new structure. During the third quarter of 2015, we changed the measurement date of our annual goodwill impairment test from the fourth quarter to July 1. This change was not material to our Consolidated Financial Statements as it did not result in the delay, acceleration, or avoidance of an impairment charge. We believe the new timing better aligns the goodwill impairment test with our strategic business planning process, which is a key component of the goodwill impairment test. We completed the required annual testing of goodwill for all reporting units as of July 1, 2015, as well as reassessing at December 31, 2015, and have determined that goodwill is not impaired. Cash and Cash Equivalents We consider all highly liquid investments with an original or remaining maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. Our cash and cash equivalents are maintained primarily in demand deposit accounts with large financial institutions and in institutional money market funds. We frequently monitor the creditworthiness of the financial institutions and institutional money market funds in which we invest our surplus funds. We have not experienced any credit losses from our cash investments. Allowances for Doubtful Accounts We record a provision for doubtful accounts based on historical experience and a detailed assessment of the collectability of our accounts receivable. In estimating the allowance for doubtful accounts, we consider, among other factors, the aging of the accounts receivable, our historical write-offs, the credit worthiness of each customer, and general economic conditions. Account balances are charged off against the allowance when we believe that it is probable that the receivable will not be recovered. Actual write-offs may be in excess of our estimated allowance. Short-Term and Long-Term Investments Our short-term and long-term investments consist primarily of investment-grade debt securities, all of which are classified as available-for-sale. Available-for-sale securities are carried at fair value. Amortization or accretion of premium or discount is included in other income (expense) on the Consolidated Statements of Operations. Changes in the fair value of available-for-sale securities are reported as a component of accumulated other comprehensive loss within stockholders’ equity on the Consolidated Balance Sheet. Realized gains and losses on the sale of available-for-sale securities are determined by specific identification of the cost basis of each security. Long-term investments generally will mature within three (3) years. Inventories Inventories are stated at the lower of cost (using the first-in, first-out “FIFO” method) or market. We calculate inventory valuation adjustments for excess and obsolete inventory based on current inventory levels, movement, expected useful lives, and estimated future demand of the products and spare parts. Property and Equipment Property and equipment is recorded at cost and reduced by accumulated depreciation. Depreciation expense is recognized over the estimated useful lives of the assets using the straight-line method. Estimated useful lives are three to ten years. Certain equipment used in the development and manufacturing of ceramic components is depreciated over estimated useful lives of up to ten years. Leasehold improvements represent remodeling and retrofitting costs for leased office and manufacturing space and are depreciated over the shorter of either the estimated useful lives or the term of the lease. Software purchased for internal use consists primarily of amounts paid for perpetual licenses to third-party software providers and installation costs. Software is depreciated over the estimated useful lives of three (3) to five (5) years. Estimated useful lives are periodically reviewed, and when appropriate, changes are made prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts. Maintenance and repairs are charged directly to expense as incurred. We previously owned our manufacturing facility in New Boston, Michigan. As a result of the consolidation of our North American manufacturing operations, amounts related to the building and land were classified as held for sale at December 31, 2011. Accordingly, we impaired the building and land held for sale by $728,000 and ceased depreciation charges in December 2011. We recorded an additional $44,000 and $314,000 of impairment charges during the years ended December 31, 2013 and 2012, respectively, to reduce the carrying value to the estimated fair value. The property was sold in September 2013. Net proceeds from the sale totaled $1.2 million, resulting in a loss on sale of $0.1 million. Goodwill and Other Intangible Assets The purchase price of an acquired company is allocated between intangible assets and the net tangible assets of the acquired business with the residual purchase price recorded as goodwill. The determination of the value of the intangible assets acquired involves certain judgments and estimates. These judgments can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital. Acquired intangible assets with determinable useful lives are amortized on a straight-line or accelerated basis over the estimated periods benefited, ranging from one to 20 years. Acquired intangible assets with contractual terms are amortized over their respective legal or contractual lives. Customer relationships and other non-contractual intangible assets with determinable lives are amortized over periods ranging from five to 20 years. We evaluate the recoverability of intangible assets by comparing the carrying amount of an asset to estimated future net undiscounted cash flows generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The evaluation of recoverability involves estimates of future operating cash flows based upon certain forecasted assumptions, including, but not limited to, revenue growth rates, gross profit margins, and operating expenses over the expected remaining useful life of the related asset. A shortfall in these estimated operating cash flows could result in an impairment charge in the future. Goodwill is not amortized, but is evaluated annually for impairment at the reporting unit level or when indicators of a potential impairment are present. We estimate the fair value of the reporting unit using the discounted cash flow and market approaches. Forecast of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on expected category expansion, pricing, market segment, and general economic conditions. As of December 31, 2015 and 2014, acquired intangibles, including goodwill, relate to the acquisition of Pump Engineering, LLC during the fourth quarter of 2009. See Note 6 — “ Goodwill and Intangible Assets ” Fair Value of Financial Instruments Our financial instruments include cash and cash equivalents, restricted cash, investments in marketable securities, accounts receivable, accounts payable, and debt. The carrying amounts for these financial instruments reported in the Consolidated Balance Sheets approximate their fair values. See Note 7 — “ Fair Value Measurements ” Revenue Recognition Product revenue recognition We recognize revenue when the earnings process is complete, as evidenced by a written agreement with the customer, transfer of title, fixed pricing that is determinable, and collection that is reasonably assured. Transfer of title typically occurs upon shipment of the equipment pursuant to a written purchase order or contract. The portion of the sales agreement related to the field services and training for commissioning of our devices in a desalination plant is deferred until we have performed such services. We regularly evaluate our revenue arrangements to identify deliverables and to determine whether these deliverables are separable into multiple units of accounting. Under our revenue recognition policy, evidence of an arrangement has been met when we have an executed purchase order, sales order, or stand-alone contract. Typically, smaller projects utilize sales or purchase orders that conform to standard terms and conditions. The specified product performance criteria for our PX device pertain to the ability of our product to meet its published performance specifications and warranty provisions, which our products have demonstrated on a consistent basis. This factor, combined with historical performance metrics, provides our management with a reasonable basis to conclude that its PX device will perform satisfactorily upon commissioning of the plant. To ensure this successful product performance, we provide service consisting principally of supervision of customer personnel and training to the customers during the commissioning of the plant. The installation of the PX device is relatively simple, requires no customization, and is performed by the customer under the supervision of our personnel. We defer the value of the service and training component of the contract and recognize such revenue as services are rendered. Based on these factors, our management has concluded that, for sale of PX devices, as well as for turbochargers and pumps, delivery and performance have been completed upon shipment or delivery when title transfers based on the shipping terms. We perform an evaluation of credit worthiness on an individual contract basis to assess whether collectability is reasonably assured. As part of this evaluation, our management considers many factors about the individual customer, including the underlying financial strength of the customer and/or partnership consortium and management’s prior history or industry-specific knowledge about the customer and its supplier relationships. For smaller projects, we require the customer to remit payment generally within 30 to 90 days after product delivery. In some cases, if credit worthiness cannot be determined, prepayment or other security is required from smaller customers. We establish separate units of accounting for contracts, as our contracts with customers typically include one or both of the following deliverables, and there is no right of return under the terms of the contract. ● Products ● Commissioning which includes supervision of the installation, start-up, and training to ensure that the installation performed by the customer, which is relatively simple and straightforward, is completed consistent with the recommendations under the factory warranty. The commissioning services’ element of our contracts represents an incidental portion of the total contract price. The allocable consideration for these services relative to that for the underlying products has been well under 1% of any arrangement. Commissioning is often bundled into the large stand-alone contracts, and we frequently sell products without commissioning since our product can be easily installed in a plant without supervision. These facts and circumstances validate that the delivered element has value on a stand-alone basis and should be considered a separate unit of accounting. Having established separate units of accounting, we then take the next steps to allocate amounts to each unit of accounting. With respect to products, we have established vendor specific objective evidence (“VSOE”) based on the price at which such products are sold separately without commissioning services. With respect to commissioning, we charge out our engineers for field visits to customers based on a stand-alone standard daily field service charge as well as a flat service rate for travel, if applicable. This has been determined to be the VSOE of the service based on stand-alone sales of other comparable professional services at consistent pricing. The amount allocable to the delivered unit of account (in our case the product) is limited to the amount that is not contingent upon the delivery of additional items or meeting specified performance conditions. We adhere to consistent pricing in both stand-alone sale of products and professional services and the contractual pricing of products and commissioning of services in bundled arrangements. For large projects, stand-alone contracts are utilized. For these contracts, consistent with industry practice, our customers typically require their suppliers, including Energy Recovery, to accept contractual holdback provisions (also referred to as a retention payment) whereby the final amounts due under the sales contract are remitted over extended periods of time or alternatively, stand-by letters of credit are issued to guarantee performance. These retention payments typically range between 5% and 15%, of the total contract amount and are due and payable when the customer is satisfied that certain specified product performance criteria have been met upon commissioning of the desalination plant, which may be up to 24 months from the date of product delivery as described further below. Under stand-alone contracts, the usual payment arrangements are summarized as follows: • an advance payment due upon execution of the contract, typically 10% to 20% of the total contract amount. This advance payment is accounted for as deferred revenue until shipment or when products are delivered to the customer, depending on the Incoterms and transfer of title; • a payment ranging from 50% to 70% of the total contract is typically due upon delivery of the product. This payment is often divided into two parts. The first part, which is due 30 to 60 days following delivery of the product and documentation, is invoiced upon shipment when the product revenue is recognized and results in an open accounts receivable with the customer. The second part is typically due 90 to 120 days following product delivery and documentation. This payment is booked to unbilled receivables upon shipment when the product revenue is recognized, and it is invoiced to the customer upon notification that the equipment has been received or when the time period has expired. We have no performance obligation to complete to be legally entitled to this payment. It is invoiced based on the passage of time. • a final retention payment of usually 5% to 15% of the contract amount is due either at the completion of plant commissioning or upon the issuance of a stand-by letter of credit, which is typically issued up to 24 months from the delivery date of products and documentation. This payment is recorded to unbilled receivables upon shipment when the product revenue is recognized, and it is invoiced to the customer when it is determined that commissioning is complete or the stand-by letter of credit has been issued. This payment is not contingent upon the delivery of commissioning services. The Company had no performance obligation to complete to be legally entitled to this payment. It is invoiced based on the passage of time. We do not provide our customers with a right of product return; however, we will accept returns of products that are deemed to be damaged or defective when delivered that are covered by the terms and conditions of the product warranty. Product returns have not been significant. Shipping and handling charges billed to customers are included in product revenue. The cost of shipping to customers is included in cost of revenue. License and development revenue recognition License revenue is comprised of fees received in connection the Schlumberger License Agreement. See Note 16 – Schlumberger License Agreement. The agreement comprises a 15 year exclusive license for the our VorTeq technology, development services to commercialize the technology, support services, and, in the event commercialization is successful, supply and servicing of certain components of the VorTeq and development services related to integration of the commercialized technology with future Schlumberger equipment. Various types of payments to the Company are provided in the agreement, including an upfront exclusive license fee, developmental milestones, and payments for supply and servicing of components subsequent to commercialization. All payments are non-refundable. We recognize license revenue in accordance with ASC 605 “Revenue Recognition”, subtopic ASC 605-25 “ Revenue with Multiple Element Arrangements ” and subtopic ASC 605-28 “ Revenue Recognition-Milestone Method ”, which provides accounting guidance for revenue recognition for arrangements with multiple deliverables and guidance on defining the milestone and determining when the use of the milestone method of revenue recognition for research and development transactions is appropriate, respectively. For multiple-element arrangements, each deliverable is accounted for as a separate unit of accounting if both the following criteria are met: (1) the delivered item or items have value to the customer on a standalone basis and (2) for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. Contingent deliverables within multiple element arrangements are excluded from the evaluation of the units of accounting. Non-refundable, upfront license fees where we have continuing obligation to perform are recognized over the period of the continuing performance obligation. The Schlumberger License Agreement was determined to include a single unit of accounting comprising the license, research and development, and support services. We recognize revenue from milestone payments when: (i) the milestone event is substantive and its achievability has substantive uncertainty at the inception of the agreement, and (ii) it does not have ongoing performance obligations related to the achievement of the milestone earned. Milestone payments are considered substantive if all of the following conditions are met, the milestone payment: (a) is commensurate with either the Company’s performance subsequent to the inception of the arrangement to achieve the milestone or the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from the Company’s performance subsequent to the inception of the arrangement to achieve the milestone; (b) relates solely to past performance; and (c) is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. The Schlumberger License Agreement includes two substantive milestones of $25 million each due on achieving specified development milestones. No revenues associated with achievement of the milestones have been recognized to date. Research and Development Expense Research and development expenses consist of costs incurred for internal projects and research and development activities performed for technology licensed to third parties. These costs include our direct and research-related overhead expenses, which include salaries and other personnel-related expenses (including stock-based compensation), occupancy-related costs, depreciation of facilities, as well as external costs, and are expensed as incurred. Costs to acquire technologies that are utilized in research and development and that have no alternative future use are expensed when incurred. Warranty Costs We sell products with a limited warranty for a period ranging from eighteen (18) months to five (5) years. We accrue for warranty costs based on estimated product failure rates, historical activity, and expectations of future costs. Periodically, we evaluate and adjust the warranty costs to the extent that actual warranty costs vary from the original estimates. During the year ended December 31, 2015, we adjusted previously established warranty reserves. The adjustment related to expired warranties which increased gross profit and reduced net loss by $0.4 million. During the year ended December 31, 2013, the Company adjusted previously established warranty reserves. The accruals had been made based on historic warranty claim rates during 2010 and 2011, a period that covered the integration of the PEI acquisition and related manufacturing operations into the Company’s existing operation. At December 31, 2013, the Company revised the rates based on warranty claim data during the two-year period after integration, which covered 2012 and 2013. This resulted in a release of accruals related to expired warranties, which increased gross profit and reduced net loss by $0.3 million. Stock-based Compensation We measure and recognize stock-based compensation expense based on the fair value measurement for all stock-based awards made to our employees and directors — including restricted stock units (“RSUs”), restricted shares (“RS”), and employee stock options — over the requisite service period (typically the vesting period of the awards). The fair value of RSUs and RS is based on our stock price on the date of grant. At December 31, 2015, there were no outstanding RSUs or RS. The fair value of stock options is calculated on the date of grant using the Black-Scholes option pricing model, which requires a number of complex assumptions including expected life, expected volatility, risk-free interest rate, and dividend yield. The estimation of awards that will ultimately vest requires judgment, and to the extent that actual results or updated estimates differ from our current estimates, such amounts are recorded as a cumulative adjustment in the period in which the estimates are revised. See Note 12 — “Stock-based Compensation ” Foreign Currency Our reporting currency is the U.S. dollar. The functional currency of our Ireland subsidiaries is the U.S. dollar, while the functional currency of our other foreign subsidiaries is their respective local currencies. The asset and liability accounts of our foreign subsidiaries are translated from their local currencies at the rates in effect on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the period. Gains and losses resulting from the translation of our subsidiary balance sheets are recorded as a component of accumulated other comprehensive loss. Gains and losses from foreign currency transactions are recorded in other income (expense) in the Consolidated Statements of Operations. Income Taxes Current and non-current tax assets and liabilities are based upon an estimate of taxes refundable or payable for each of the jurisdictions in which we are subject to tax. In the ordinary course of business, there is inherent uncertainty in quantifying income tax positions. We assess income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances, and information available at the reporting dates. For those tax positions where it is more likely than not that a tax benefit will be sustained, we record the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit is recognized in the financial statements. When applicable, associated interest and penalties are recognized as a component of income tax expense. Accrued interest and penalties are included within the related tax asset or liability on the Consolidated Balance Sheets. Deferred income taxes are provided for temporary differences arising from differences in bases of assets and liabilities for tax and financial reporting purposes. Deferred income taxes are recorded on temporary differences using enacted tax rates in effect for the year in which the temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Significant judgment is required in determining whether and to what extent any valuation allowance is needed on our deferred tax assets. In making such a determination, we consider all available positive and negative evidence including recent results of operations, scheduled reversals of deferred tax liabilities, projected future income, and available tax planning strategies. As of December 31, 2015, we have a valuation allowance of approximately $21.4 million to reduce our deferred income tax assets to the amount expected to be realized. See Note 10 — “ Income Taxes ” Our operations are subject to income and transaction taxes in the U.S. and in foreign jurisdictions. Significant estimates and judgments are required in determining our worldwide provision for income taxes. Some of these estimates are based on interpretations of existing tax laws or regulations. The ultimate amount of tax liability may be uncertain as a result. Recent Accounting Pronouncements Other than as described below, no new accounting pronouncement issued or effective during the fiscal year has had or is expected to have a material impact on our Consolidated Financial Statements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest. Also in April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other- Internal-Use Software. In July 2015, the FASB issued ASU 2015-11, Inventory – Simplifying the Measurement of Inventory. In September 2015, the FASB issued ASU No. 2015-16, Bu siness Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilitie s In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842). |
Note 3 - Loss per Share
Note 3 - Loss per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 3 — Loss Per Share Net losses are divided by the weighted average number of common shares outstanding during the year to calculate basic net loss per common share. Diluted net loss per common share is calculated to provide the impact of stock options and other stock-based awards. The following table sets forth the computation of basic and diluted loss per share (in thousands, except per share data): Years Ended December 31, 2015 2014 2013 Numerator: Net loss $ (11,638 ) $ (18,705 ) $ (3,106 ) Denominator: Basic and diluted weighted average common shares outstanding 52,151 51,675 51,066 Basic and diluted net loss per share $ (0.22 ) $ (0.36 ) $ (0.06 ) The following potential common shares were not considered in the computation of diluted net loss per share as their effect would have been anti-dilutive (in thousands): Years Ended December 31, 2015 2014 2013 Restricted awards — 28 — Warrants — 200 650 Stock options 7,198 6,276 7,111 |
Note 4 - Other Financial Inform
Note 4 - Other Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Additional Financial Information Disclosure [Text Block] | Note 4 — Other Financial Information Restricted Cash As of December 31, 2015, we have pledged cash in connection with stand-by letters of credit. We have deposited corresponding amounts into non-interest bearing accounts at financial institutions for these items as follows (in thousands): December 31, 201 5 201 4 Collateral for stand-by letters of credit $ 1,490 $ 2,623 Current restricted cash $ 1,490 $ 2,623 Collateral for stand-by letters of credit $ 2,317 $ 2,850 Non-current restricted cash $ 2,317 $ 2,850 Total restricted cash $ 3,807 $ 5,473 Accounts Receivable Accounts receivable consisted of the following (in thousands): December 31, 201 5 2014 Accounts receivable $ 11,756 $ 11,096 Less: allowance for doubtful accounts (166 ) (155 ) $ 11,590 $ 10,941 Unbilled Receivables We currently have unbilled receivables pertaining to customer contractual holdback provisions, whereby we will invoice the final retention payment(s) due under certain sales contracts in the next 2 to 31 months. The customer holdbacks represent amounts intended to provide a form of security for the customer; accordingly, these receivables have not been discounted to present value. Unbilled receivables consisted of the following (in thousands): December 31, 201 5 2014 Unbilled receivables, current $ 1,879 $ 1,343 Unbilled receivables, non-current 6 414 $ 1,885 $ 1,757 Inventories Our inventories consisted of the following (in thousands): December 31, 2015 2014 Raw materials $ 2,590 $ 2,903 Work in process 1,689 1,915 Finished goods 2,224 3,386 $ 6,503 $ 8,204 Valuation adjustments for excess and obsolete inventory, reflected as a reduction of inventory at December 31, 2015 and 2014, were $1.7 million and $2.0 million, respectively. Prepaid and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): December 31, 2015 2014 Interest receivable $ 4 $ 112 Foreign currency put options 33 — Supplier advances 171 107 Other prepaid expenses and current assets 735 1,098 $ 943 $ 1,317 Property and Equipment Property and equipment held for use consisted of the following (in thousands): December 31, 2015 2014 Machinery and equipment $ 14,448 $ 14,029 Leasehold improvements 10,196 10,184 Software 2,344 2,237 Office equipment, furniture, and fixtures 1,848 1,828 Automobiles 76 22 Construction in progress 48 54 28,960 28,354 Less: accumulated depreciation and amortization (18,338 ) (15,143 ) $ 10,622 $ 13,211 Depreciation and amortization expense related to all property and equipment was approximately $3.2 million, $3.2 million, and $2.9 million for the years ended December 31, 2015, 2014, and 2013, respectively. Unamortized computer software cost was $1.0 million and $1.3 million at year end December 31, 2015 and 2014, respectively. Depreciation expense related to computer software was $0.4 million, $0.4 million, and $0.2 million for the years ended December 31, 2015, 2014, and 2013, respectively. The increase in depreciation expense in 2014 related to computer software related to the implementation of a new enterprise resource planning (“ERP”) system in 2013. Construction in progress costs at December 31, 2015 primarily relate to leasehold improvements. As of December 31, 2015, there were no additional costs to complete the project, however, the project had not been placed in service and therefore was not subject to depreciation or amortization. The project was implemented in the first quarter of 2016. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): December 31, 201 5 2014 Payroll and commissions payable $ 5,086 $ 3,116 Other accrued expenses and current liabilities 2,468 2,254 Accrued legal expenses, current 217 1,734 Accrued research and development expenses 37 1,323 $ 7,808 $ 8,427 Deferred revenue, current Deferred revenue, current consisted of the following (in thousands): December 31, 201 5 2014 Deferred license and development revenue, current $ 5,000 $ — Deferred product revenue, current 878 519 $ 5,878 $ 519 Deferred revenue, non-current Deferred revenue, non-current consisted of the following (in thousands): December 31, 201 5 2014 Deferred license and development revenue, non-current $ 68,958 $ — Deferred product revenue, non-current 42 59 $ 69,000 $ 59 Non-Current Liabilities Non-current liabilities consisted of the following (in thousands): December 31, 201 5 2014 Deferred rent expense, non-current $ 718 $ 866 Accrued legal expenses, non-current — 1,587 $ 718 $ 2,453 Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component were as follows (in thousands): Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Investments Total Accumulated Other Comprehensive Loss Balance, December 31, 2012 $ (94 ) $ 15 $ (79 ) Net other comprehensive loss (12 ) (16 ) (28 ) Balance, December 31, 2013 $ (106 ) $ (1 ) $ (107 ) Gross other comprehensive loss (income) 39 (6 ) 33 Gross reclassification to realized gain — 1 1 Balance, December 31, 2014 $ (67 ) $ (6 ) $ (73 ) Net other comprehensive income 4 5 9 Balance, December 31, 2015 $ (63 ) $ (1 ) $ (64 ) Advertising Expense Advertising expense is charged to operations during the year in which it is incurred. Total advertising expense amounted to $8,000, $107,000, and $41,000 for the years ended December 31, 2015, 2014, and 2013, respectively. |
Note 5 - Investments
Note 5 - Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 5 — Investments Our short-term and long-term investments are all classified as available-for-sale. There were no sales of available-for-sale securities during the years ended December 31, 2015 and 2014. Available-for-sale securities as of the dates indicated consisted of the following (in thousands): December 31, 201 5 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value Short-term investments Corporate notes and bonds $ 258 $ — $ (1 ) $ 257 Total short-term investments $ 258 $ — $ (1 ) $ 257 Total investments $ 258 $ — $ (1 ) $ 257 December 31, 201 4 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value Short-term investments State and local government obligations $ 225 $ — $ — $ 225 Corporate notes and bonds 12,851 4 (8 ) 12,847 Total short-term investments $ 13,076 $ 4 $ (8 ) $ 13,072 Long-term investments Corporate notes and bonds 268 — (1 ) 267 Total long-term investments $ 268 $ — $ (1 ) $ 267 Total investments $ 13,344 $ 4 $ (9 ) $ 13,339 Gross unrealized losses and fair values of our investments in an unrealized loss position as of the dates indicated, aggregated by investment category and length of time that security has been in a continuous loss position, were as follows (in thousands): December 31, 201 5 Less than 12 months 12 months or greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate notes and bonds $ — $ — $ 257 $ (1 ) $ 257 $ (1 ) Total $ — $ — $ 257 $ (1 ) $ 257 $ (1 ) December 31, 201 4 Less than 12 months 12 months or greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate notes and bonds $ 5,085 $ (6 ) $ 1,205 $ (3 ) $ 6,290 $ (9 ) Total $ 5,085 $ (6 ) $ 1,205 $ (3 ) $ 6,290 $ (9 ) The Company monitors investments for other-than-temporary impairment. It was determined that unrealized gains and losses at December 31, 2015 and 2014, are temporary in nature, because the changes in market value for these securities resulted from fluctuating interest rates, rather than a deterioration of the credit worthiness of the issuers. The Company is unlikely to experience gains or losses if these securities are held to maturity. In the event that the Company disposes of these securities before maturity, it is expected that the realized gains or losses, if any, will be immaterial. Expected maturities can differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. The amortized cost and fair value of available-for-sale securities that had stated maturities as of December 31, 2015 are shown below by contractual maturity (in thousands): December 31, 2015 Amortized Cost Fair Value Due after one year through three years $ 258 $ 257 Total investments $ 258 $ 257 |
Note 6 - Goodwill and Intangibl
Note 6 - Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 6 — Goodwill and Intangible Assets Goodwill Goodwill as of December 31, 2015 was the result of our acquisition of Pump Engineering, LLC in December 2009. During the third quarter of 2015, we changed the measurement date of our annual goodwill impairment test from the fourth quarter to July 1. This change was not material to our Consolidated Financial Statements as it did not result in the delay, acceleration, or avoidance of an impairment charge. We believe this timing better aligns the goodwill impairment test with our strategic business planning process, which is a key component of the goodwill impairment test. The impairment test performed as of July 1, 2015 determined that goodwill was not impaired. No impairment of goodwill has been recorded in the accompanying Consolidated Financial Statements. The net carrying amount of goodwill was $12.8 million for the years ended December 31, 2015 and 2014. Other Intangible Assets The components of identifiable intangible assets, all of which are finite-lived, as of the date indicated were as follows (in thousands): December 31, 2015 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Losses Net Carrying Amount Weighted Average Useful Life Amortization Method (1) Developed technology $ 6,100 $ (3,711 ) $ — $ 2,389 10 SL Non-compete agreements 1,310 (1,310 ) — — 4* SL Backlog 1,300 (1,300 ) — — 1 SL Trademarks 1,200 (180 ) (1,020 ) — 20 SL Customer relationships 990 (990 ) — — 5 SOYD Patents 585 (401 ) (42 ) 142 18 SL $ 11,485 $ (7,892 ) $ (1,062 ) $ 2,531 9 December 31, 2014 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Losses Net Carrying Amount Weighted Average Useful Life Amortization Method (1) Developed technology $ 6,100 $ (3,101 ) $ — $ 2,999 10 SL Non-compete agreements 1,310 (1,310 ) — — 4* SL Backlog 1,300 (1,300 ) — — 1 SL Trademarks 1,200 (180 ) (1,020 ) — 20 SL Customer relationships 990 (990 ) — — 5 SOYD Patents 585 (376 ) (42 ) 167 18 SL $ 11,485 $ (7,257 ) $ (1,062 ) $ 3,166 9 (1) SL means Straight-Line and SOYD means Sum-of-Year’s-Digits *Average life of two non-compete agreements. Accumulated impairment losses for trademarks at December 31, 2015, represent impairment charges from 2012. Accumulated impairment losses for patents at December 31, 2015 include impairment losses from 2007 and 2010. No other impairments of intangible assets were identified during the periods presented. Amortization of intangibles was approximately $0.6 million, $0.8 million, and $0.9 million, million for the years ended December 31, 2015, 2014, and 2013, respectively. Future estimated amortization expense on intangible assets is as follows (in thousands): December 31, 2016 631 2017 631 2018 629 2019 575 2020 16 Thereafter 49 $ 2,531 |
Note 7 - Fair Value Measurement
Note 7 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 7 — Fair Value Measurements We follow the authoritative guidance for fair value measurements and disclosures that, among other things, defines fair value, establishes a consistent framework for measuring fair value, and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The framework for measuring fair value provides a hierarchy that prioritizes the inputs to valuation techniques used in measuring fair value as follows: Level1— Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level2— Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level3— Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own estimates of assumptions that market participants would use in pricing an asset or liability. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and other accrued expenses approximate fair value due to the short-term maturity of those instruments. For our investments in available-for-sale securities, if quoted prices in active markets for identical investments are not available to determine fair value (Level 1), then we use quoted prices for similar assets or inputs other than the quoted prices that are observable either directly or indirectly (Level 2). The investments included in Level 2 consist primarily of municipal, corporate, and agency obligations. The asset also included in Level 2 consists of the premium paid for foreign currency put options. The fair value of this asset was determined based on the time value of the options as it was determined there was no intrinsic value of the options. The fair value of financial assets and liabilities measured on a recurring basis is as follows (in thousands): Fair Value Measurement at Reporting Date Using December 31, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Assets: Available-for-sale securities $ 257 $ — $ 257 $ — Foreign currency put options 33 — 33 — Total assets $ 290 $ — $ 290 $ — Fair Value Measurement at Reporting Date Using December 31, 2014 Level 1 Inputs Level 2 Inputs Level 3 Inputs Assets: Available-for-sale securities $ 13,339 $ — $ 13,339 $ — The reconciliation of the beginning and ending balances for financial assets and liabilities measured on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2015, 2014, and 2013 is as follows (in thousands): Contingent Consideration Balance, December 31, 2012 $ 1,524 Loss due to change in fair value — Balance, December 31, 2013 $ 1,524 Net gain on settlement (149 ) Settlement payment (1,375 ) Balance, December 31, 2014 $ — Loss due to change in fair value — Balance, December 31, 2015 $ — |
Note 8 - Long-term Debt and Lin
Note 8 - Long-term Debt and Lines of Credit | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 8 — Long-Term Debt and Lines of Credit Debt In March 2015, we entered into a loan agreement with a financial institution for a $55,000 fixed-rate installment loan with an annual interest rate of 6.35%. The loan is payable in equal monthly installments and matures on April 2, 2020. The note is secured by the asset purchased. Long-term debt consisted of the following (in thousands) December 31, 2015 2014 Loan payable $ 48 $ — Less: current portion (10 ) — Total long-term debt $ 38 $ — Future minimum principal payments due under long-term debt arrangements consist of the following (in thousands): 2016 10 2017 11 2018 11 2019 12 2020 4 Total debt $ 48 Lines of Credit In June 2012, we entered into a loan agreement (the “2012 Agreement”) with a financial institution. The 2012 Agreement matured in and was amended in June 2015. The 2012 Agreement, as amended, provides for a total available credit line of $16.0 million. Under the 2012 Agreement, we are allowed to draw advances not to exceed, at any time, $10.0 million as revolving loans. The total stand-by letters of credit issued under the 2012 Agreement may not exceed the lesser of the $16.0 million credit line or the credit line minus all outstanding revolving loans. At no time may the aggregate of the revolving loans and stand-by letters of credit exceed the total available credit line of $16.0 million. Revolving loans may be in the form of a base rate loan that bears interest equal to the prime rate plus 0% or a Eurodollar loan that bears interest equal to the adjusted LIBOR rate plus 1.25%. Stand-by letters of credit are subject to customary fees and expenses for issuance or renewal. The unused portion of the credit facility is subject to a facility fee in an amount equal to 0.25% per annum of the average unused portion of the revolving line. The 2012 Agreement, as amended, also requires us to maintain a cash collateral balance equal to 101% of all outstanding advances and all outstanding stand-by letters of credit collateralized by the line of credit. The 2012 Agreement, as amended, matures in June 2018 and is collateralized by substantially all of our assets. As of December 31, 2015 and 2014, there were no advances drawn under the 2012 Agreement, as amended. Stand-by letters of credit collateralized under the 2012 Agreement, as amended, totaled $3.8 million and $3.1 million as of December 31, 2015 and 2014, respectively. Total cash restricted related to these stand-by letters of credit totaled $3.8 million and $3.1million as of December 31, 2015 and 2014, respectively. We are subject to certain financial and administrative covenants under the 2012 Agreement, as amended. As of December 31, 2015, we were in compliance with these covenants. In 2009, we entered into a loan and security agreement (the “2009 Agreement”) with another financial institution. The 2009 Agreement, as amended, provided a total available credit line of $16.0 million. Under the 2009 Agreement, we were allowed to draw advances of up $10.0 million on a revolving line of credit or utilize up to $15.9 million as collateral for stand-by letters of credit, provided that the aggregate of the outstanding advances and collateral did not exceed the total available credit line of $16.0 million. Advances under the revolving line of credit incurred interest based on a prime rate index or LIBOR plus 1.375%. The 2009 Agreement, as amended, required us to maintain cash collateral balances equal to at least 101% of the face amount of all outstanding stand-by letters of credit collateralized by the line of credit and 100% of the amount of all outstanding advances. The 2009 Agreement, as amended, expired in May 2012, at which time we became required to maintain a cash collateral balance equal to at least 105% of the face amount of all outstanding stand-by letters of credit collateralized by the line of credit. There were no advances drawn under the 2009 Agreement’s credit line at the time of expiration. Remaining stand-by letters of credit issued under the 2009 Agreement, for which we had restricted cash, totaled zero and $2.3 million, as of December 31, 2015 and 2014, respectively. Total cash restricted related to these stand-by letters of credit totaled zero and $2.4 million as of December 31, 2015 and 2014, respectively. See Note 9 — “ Commitments and Contingencies, ” |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 9 — Commitments and Contingencies Operating Lease Obligations We lease facilities under fixed non-cancellable operating leases that expire on various dates through November 2019. Future minimum lease payments consist of the following (in thousands): December 31, 2016 1,597 2017 1,568 2018 1,591 2019 1,398 $ 6,154 Total rent and lease expense was $1.5 million, $1.7 million, and $1.5 million for the years ended December 31, 2015, 2014, and 2013, respectively. Warranty Changes in our accrued warranty reserve and the expenses incurred under our warranties were as follows (in thousands): Years Ended December 31, 2015 2014 201 3 Balance, beginning of period $ 755 $ 709 $ 1,172 Warranty costs charged to cost of revenue 135 156 126 Utilization of warranty (34 ) (110 ) (249 ) Release of accrual related to expired warranties (395 ) — (340 ) Balance, end of period $ 461 $ 755 $ 709 During the year ended December 31, 2015, we adjusted previously established warranty reserves. The adjustment related to expired warranties which increased gross profit and reduced net loss by $0.4 million. During the year ended December 31, 2013, the Company adjusted previously established warranty reserves. The accruals had been made based on historic warranty claim rates during 2010 and 2011, a period that covered the integration of the PEI acquisition and related manufacturing operations into the Company’s existing operation. At December 31, 2013, the Company revised the rates based on warranty claim data during the two-year period after integration, which covered 2012 and 2013. This resulted in a release of accruals related to expired warranties, which increased gross profit and reduced net loss by $0.3 million. Purchase Obligations We have purchase order arrangements with our vendors for which we have not received the related goods or services as of December 31, 2015. These arrangements are subject to change based on our sales demand forecasts, and we have the right to cancel the arrangements prior to the date of delivery. The majority of these purchase order arrangements were related to various raw materials and components parts. As of December 31, 2015, we had approximately $1.5 million of open cancellable purchase order arrangements related primarily to materials and parts. Guarantees We enter into indemnification provisions under our agreements with other companies in the ordinary course of business, typically with customers. Under these provisions, we generally indemnify and hold harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of our activities, generally limited to personal injury and property damage caused by our employees at a customer’s desalination plant in proportion to the employee’s percentage of fault for the accident. Damages incurred for these indemnifications would be covered by our general liability insurance to the extent provided by the policy limitations. We have not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the estimated fair value of these agreements is not material. Accordingly, we had no liabilities recorded for these agreements as of December 31, 2015 and 2014. In certain cases, we issue warranty and product performance guarantees to our customers for amounts ranging from 5% to 15% of the total sales agreement to endorse the execution of product delivery and the warranty of design work, fabrication, and operating performance of our devices. These guarantees are generally stand-by letters of credit that typically remain in place for periods ranging up to 24 months, and in some cases, up to 68 months. The stand-by letters of credit, collateralized by restricted cash, are as follows (in thousands): December 31, 2015 2014 2009 Agreement $ — $ 2,274 2012 Agreement 3,769 3,055 $ 3,769 $ 5,329 Cash collateral balances under the 2009 Agreement required a premium equal to approximately 5.0% of the amount of the corresponding stand-by letters of credit. Cash collateral balances under the 2012 Agreement require a premium equal to approximately 1.0% of the amount of the corresponding stand-by letters of credit. As a result, the balance of restricted cash related to stand-by letters of credit at December 31, 2015 and 2014 totaled $3.8 million and $5.5 million, respectively. Litigation On September 10, 2014, the Company terminated the employment of its Senior Vice President, Sales, Borja Blanco, on the basis of breach of duty of trust and conduct leading to conflict of interest. On October 3, 2014, Mr. Blanco filed a labor claim against ERI Iberia in Madrid, Spain alleging breach of contract and termination without cause. The claim seeks wages (salary and bonus) of €567,000 and alleged stock option gains of €630,000. On November 13, 2015, a hearing was held before the labor court in Madrid, Spain. On December 2, 2015, the labor court ruled that it did not have jurisdiction over Mr. Blanco’s claims. Mr. Blanco has appealed the ruling. At this time, the Company has not determined that an award to Mr. Blanco is probable. In January 2015, two stockholder class action complaints were filed against the Company in the Northern District of California, on behalf of Energy Recovery stockholders under the captions, Joseph Sabatino v. Energy Recovery, Inc. et al. Thomas C. Mowdy v. Energy Recovery, Inc. et al In Re Energy Recovery Inc. Securities Litigation. On May 31, 2015, the Company terminated the employment of its former Chief Sales Officer, Mr. David Barnes. On January 27, 2016, a complaint was filed by Mr. Barnes in the federal court of the Northern District of California under the caption, Barnes v. Energy Recovery, Inc. et al. case no. 4:16-cv-00477 EMC, alleging numerous legal claims including, but not limited to, wrongful termination and negligent and/or intentional misrepresentations to induce Mr. Barnes to join the Company. At this time, the Company is not able to estimate a possible loss, if any, due to the early state of this matter. |
Note 10 - Income Taxes
Note 10 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 10 — Income Taxes The following table presents the U.S. and foreign components of consolidated (loss) income before income taxes and the (benefit) provision for income taxes (in thousands): Years Ended December 31, 201 5 201 4 201 3 Loss (income) before income taxes: U.S. $ (7,566 ) $ (18,393 ) $ (2,872 ) Foreign (4,406 ) (21 ) 93 Loss before income taxes $ (11,972 ) $ (18,414 ) $ (2,779 ) Current tax provision (benefit): Federal $ — $ — $ 97 State (3 ) 2 8 Foreign 20 15 (4 ) $ 17 $ 17 $ 101 Deferred tax provision (benefit): Federal $ 225 $ 241 $ 217 State (17 ) 33 9 Foreign (559 ) — — $ (351 ) $ 274 $ 226 Total provision (benefit) for income taxes $ (334 ) $ 291 $ 327 A reconciliation of income taxes computed at the statutory federal income tax rate to the effective tax rate implied by the accompanying Statements of Operations is as follows: Years Ended December 31, 201 5 201 4 201 3 U.S. federal taxes at statutory rate (34 %) (34 %) (34 %) Foreign rate differential 17 % — — Non-benefited losses stemming from valuation allowance on current year 9 % 35 % 32 % Stock-based compensation 8 % 3 % 15 % State income tax, net of federal benefit — — 1 % Federal research credits (2 %) (2 %) (5 %) Other (1 %) — 3 % Effective tax rate (3 %) 2 % 12 % Total deferred tax assets and liabilities consist of the following (in thousands): Years Ended December 31, 201 5 201 4 Deferred tax assets: Net operating loss carry forwards $ 14,972 $ 13,790 Accruals and reserves 4,842 5,164 Research and development credit carry forwards 1,916 1,532 Acquired intangibles 1,459 1,520 Unrealized gain on foreign currency translation and investments — 29 Charitable contributions 6 6 $ 23,195 $ 22,041 Valuation allowance (21,443 ) (20,367 ) Net deferred tax assets $ 1,752 $ 1,674 Deferred tax liabilities: Depreciation on property and equipment $ (1,152 ) $ (1,674 ) Unrecognized gain on translation of foreign currency (41 ) — Goodwill (1,981 ) (1,749 ) Total deferred tax liabilities $ (3,174 ) $ (3,423 ) Net deferred tax liabilities $ (1,422 ) $ (1,749 ) As reported on the balance sheet: Current assets, net $ 938 $ 240 Non-current liabilities, net (2,360 ) (1,989 ) Net deferred tax liabilities $ (1,422 ) $ (1,749 ) We had gross deferred tax assets of approximately $23.2 million and $22.0 million at December 31, 2015 and 2014, respectively, relating principally to accrued expenses and tax effects of net operating loss carry-forwards. In assessing the recoverability of deferred tax assets, we consider whether it is more likely than not that the assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. In making such a determination, we consider all available positive and negative evidence, including recent results of operations, scheduled reversals of deferred tax liabilities, projected future income, and available tax planning strategies. A significant piece of the negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2015. Such objective evidence limits the ability to consider other subjective evidence, such as our projection for future growth. On the basis of this evaluation, as of December 31, 2015, a valuation allowance of approximately $21.4 million has been recorded to reduce our deferred income tax assets to the amount that is more likely than not to be realized, an increase of $1.08 million from December 31, 2014. The valuation allowance represents a provision for uncertainty as to the realization of tax benefits from these deferred income tax assets. We will continue to evaluate the tax benefit uncertainty and will adjust, if warranted, the valuation allowance in future periods to the extent that our deferred income tax assets become more likely than not to be realizable. At December 31, 2015 and 2014, we had net operating loss carry-forwards of approximately $41.0 million and $38.8 million, respectively, for federal and $14.9 million and $14.8 million, respectively, for California. As of December 31, 2015, the federal and California net operating loss carryovers include $1.3 million and $217,000 of excess stock based compensation deductions that will result in an increase in Additional Paid in Capital when recognized. The net operating loss carry-forwards, if not utilized, will begin to expire in 2018 for federal and 2029 for California purposes. Utilization of the net operating loss carry-forwards is subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. The annual limitation will result in the expiration of the net operating loss carry-forwards before utilization. We have estimated the amount which may ultimately be realized and recorded deferred tax assets accordingly. In addition, at December 31, 2015 and 2014, we had net operating loss carry-forwards of approximately $4.4 million and $0, respectively, for Ireland tax purposes. Ireland net operating losses carryover indefinitely. At December 31, 2015 and 2014, we had credit carry-forwards of approximately $1.2 million and $980,000, respectively, for federal and approximately $1.1 million and $836,000, respectively, for California. The credit carry-forwards, if not utilized, will begin to expire in 2030 for federal purposes. The California credit carry-forwards do not expire. Utilization of the credit carry-forwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Measurement of uncertain tax positions is based on judgment regarding the largest amount that is greater than 50% likely of being realized upon the ultimate settlement with a taxing authority. As of December 31, 2015 and 2014, we had $394,000 and $292,000, respectively, of unrecognized tax benefits, none of which, if recognized, would affect our effective tax rate. The aggregate changes in the balance of the gross unrecognized tax benefit were as follows (in thousands): 201 5 2014 Gross unrecognized tax benefits as of December 31, $ 292 $ 96 Gross increases related to current year tax position 115 193 Gross increases related to prior year tax position — 3 Settlement (13 ) — Gross unrecognized tax benefits as of December 31, $ 394 $ 292 We recognize interest and/or penalties related to uncertain tax positions in income tax expense. There were no accrued interest or penalties associated with any unrecognized tax benefits as of December 31, 2015 and 2014. We are subject to taxation in the U.S. and various states and foreign jurisdictions. There are no ongoing examinations by taxing authorities at this time. We believe that, as of December 31, 2015, the gross unrecognized tax benefits will not materially change in the next twelve (12) months, that we have adequately provided for any reasonably foreseeable outcome related to any tax audit, and that any settlement will not have a material adverse effect on the consolidated financial position or results of operation; however, there can be no assurances as to the possible outcomes. |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Note 11 — Stockholders’ Equity Preferred Stock We have the authority to issue 10,000,000 shares of $0.001 par value preferred stock. Our Board of Directors has the authority, without action by our stockholders, to designate and issue shares of preferred stock in one or more series. The Board of Directors is also authorized to designate the rights, preferences, and voting powers of each series of preferred stock, any or all of which may be greater than the rights of the common stock including restrictions of dividends on the common stock, dilution of the voting power of the common stock, reduction of the liquidation rights of the common stock, and delaying or preventing a change in control of the Company without further action by our stockholders. To date, the Board of Directors has not designated any rights, preferences, or powers of any preferred stock, and as of December 31, 2015 and 2014, no shares of preferred stock were issued or outstanding. Common Stock We have the authority to issue 200,000,000 shares of $0.001 par value common stock. Subject to the preferred rights of the holders of shares of any class or series of preferred stock as provided by our Board of Directors with respect to any such class or series of preferred stock, the holders of the common stock shall be entitled to receive dividends, as and when declared by the Board of Directors. In the event of any liquidation, dissolution, or winding up of the Company, whether voluntary or involuntary, after the distribution or payment to the holders of shares of any class or series of preferred stock as provided by the Board of Directors with respect to any such class or series of preferred stock, the remaining assets of the Company available for distribution to stockholders shall be distributed among and paid to the holders of common stock ratably in proportion to the number of shares of common stock held by them. At December 31, 2015, 54,948,235 shares were issued and 52,468,779 shares were outstanding. At December 31, 2014, 54,398,421 shares were issued and 51,918,965 shares were outstanding Stock Repurchase Program In January 2016, the Board of Directors authorized a stock repurchase program under which shares, not to exceed $6.0 million in aggregate cost, of our outstanding common stock can be repurchased through June 30, 2016 at the discretion of management. We account for stock repurchases using the cost method. Cost includes fees charged in connection with acquiring the treasury stock. As of February 29, 2016, 673,700 shares at an aggregate cost of $4.1 million had been repurchased under this authorization. A stock repurchase program was not in place during the year ended December 31, 2015, therefore no shares were repurchased during 2015. In February 2014, our Board of Directors authorized a stock repurchase program under which up to three million shares, not to exceed $6.0 million in aggregate cost, of our outstanding common stock could be repurchased through December 31, 2014 at the discretion of management. During the year ended December 31, 2014, 696,853 shares at an aggregate cost of $2.8 million were repurchased under this authorization. This 2014 repurchase authorization expired on December 31, 2014. Warrants There were no warrants outstanding as of December 31, 2015. During the year ended December 31, 2015, warrants to purchase 200,000 shares of common stock were exercised for cash at a price of $1.00 per share. The proceeds received for this exercise totaled $200,000. During the year ended December 31, 2014, warrants to purchase 450,000 shares of common stock were exercised. Warrants to purchase 50,000 shares of common stock were exercised for cash at a price of $1.00 per share. The proceeds received from this exercise totaled $50,000. Warrant to purchase 400,000 shares of common stock were exercised for 311,111 shares of common stock in lieu of cash proceeds. The remaining 88,889 warrants were cancelled and considered payment for the exercise. During the year ended December 31, 2013, warrants to purchase 300,000 shares of common stock were exercised. Warrants to purchase 100,000 were exercised for cash at a price of $1.00 per share. The proceeds received from this exercise totaled $100,000. Warrants to purchase 200,000 shares of common stock were exercised for 180,276 shares in lieu of cash proceeds. The remaining 19,724 warrants were cancelled and considered payment for the exercise. A summary of our warrant activity is as follows (in thousands, except exercise prices and contractual life data): Years Ended December 31, 2015 2014 2013 Outstanding, beginning of period 200 650 950 Exercised during the period (200 ) (361 ) (280 ) Cancelled during the period — (89 ) (20 ) Outstanding, end of period — 200 650 Weighted average exercise price of warrants outstanding at end of period $ 0 $ 1.00 $ 1.00 Weighted average remaining contractual life, in years, of warrants outstanding at end of period 0 0.5 1.0 |
Note 12 - Share-based Compensat
Note 12 - Share-based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 12 — Stock -Based Compensation Stock Option Plan We maintain an equity incentive plan, the Amended and Restated 2008 Equity Incentive Plan (the “Plan”), that permits the grant of stock options, stock appreciation rights (“SARs”), restricted stock (“RS, RSAs, or RSUs”), performance units, performance shares, and other stock-based awards to employees, officers, directors, and consultants. We have granted stock options SARs, RSUs, and RSAs under this plan. Stock-based awards granted under this plan generally vest over four years and expire no more than ten years after the date of grant. Under the Plan, our Board of Directors is authorized to reserve for issuance up to 10,000,000 shares of common stock, all of which had been reserved as of December 31, 2015. The Plan supersedes all previously issued stock option plans and is currently the only available plan from which options may be granted. Shares available for grant under the Plan were 1,536,009 and 2,808,973 at December 31, 2015 and 2014, respectively. Stock Option Activity The following table summarizes the stock option activity under the Plan, inclusive of options granted under all previous plans: Options Outstanding Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value (2) Balance December 31, 2012 6,516,082 $ 4.25 7.5 $ 2,994,000 Granted 1,074,252 $ 4.06 — — Exercised (168,215 ) $ 2.40 — — Forfeited (311,497 ) $ 4.00 — — Balance December 31, 2013 7,110,622 $ 4.28 6.7 $ 13,017,000 Granted 1,922,000 $ 5.22 — — Exercised (872,997 ) $ 2.70 — — Forfeited (1,883,596 ) $ 5.21 — — Balance December 31, 2014 6,276,029 $ 4.51 7.0 $ 8,065,000 Granted 2,611,910 $ 3.01 — — Exercised (349,814 ) $ 3.22 — — Forfeited (1,339,646 ) $ 3.18 — — Balance December 31, 2015 7,198,479 $ 3.97 7.0 $ 22,875,000 Vested and exercisable as of December 31, 2015 4,179,765 $ 4.28 5.5 $ 12,202,000 Vested and exercisable as of December 31, 2015 and expected to vest thereafter (1) 6,782,821 $ 4.00 6.9 $ 21,378,000 (1) “ Compensation — Stock Compensation. ” (2) Years Ended December 31, 2015 2014 2013 Weighted average fair value of options granted to employees (per share) $ 1.50 $ 2.41 $ 2.08 Aggregate intrinsic value of options exercised (in thousands) $ 942 $ 1,842 $ 464 Fair value of options vested (in thousands) $ 4,657 $ 2,027 $ 2,209 As of December 31, 2015, total unrecognized compensation cost related to non-vested options was $4.9 million, which is expected to be recognized as expense over a weighted average period of approximately 3.0 years. Restricted Stock There were no outstanding restricted stock awards as of December 31, 2015. On December 31, 2014, the Company granted 27,609 shares of restricted stock to a member of its Board of Directors as compensation for services provided in addition to his normal director services. The restricted shares were fully vested on March 16, 2015. In July 2009, we issued 60,000 restricted stock units to key management team members under the Plan. The restricted stock units vested 25% on the first anniversary of the grant date and 1/48th monthly thereafter dependent upon continued employment. As the restricted stock units vested, the units were settled in shares of common stock based on a one-to-one ratio. The units were valued based on the market price on the date of grant. At December 31, 2013 all of these restricted stock units had either been vested or forfeited. The following table summarizes the restricted stock activity under the Plan: Shares Weighted Average Grant-Date Fair Value (Per share) Outstanding at December 31, 2012 3,501 $ 7.13 Vested (3,084 ) $ 7.13 Forfeited (417 ) $ 7.13 Outstanding at December 31, 2013 — $ — Awarded 27,609 $ 5.27 Outstanding at December 31, 2014 27,609 $ 5.27 Vested (27,609 ) $ 5.27 Outstanding at December 31, 2015 — $ — As of December 31, 2015, there was no unrecognized compensation cost related to non-vested restricted stock. Stock Based Compensation We applied ASC 718, “Compensation — Stock Compensation,” The fair value of restricted stock units granted to employees is based on our common stock price on the date of grant. The fair value of stock options granted to employees is based on the Black-Scholes option pricing model. To determine the inputs for the Black-Scholes option pricing model, we are required to develop several assumptions, which are highly subjective. We determine these assumptions as follows: Expected Term: Expected Volatility : Risk-Free Interest Rate : Dividend Yield : Forfeitures : Stock-Based Compensation — Employee Stock Options and Restricted Stock Awards The estimated grant date fair values of stock options granted to employees were calculated using the Black-Scholes option pricing model based on the following assumptions: Years Ended December 31, 2015 2014 2013 Weighted average expected life (years) 4.71 3.87 5.2 Weighted average expected volatility 61.79% 61% 59% Risk-free interest rate 1.12% - 2.19% 0.98% - 1.28% 0.84% - 1.42% Weighted average dividend yield 0% 0% 0% Stock-based compensation expense related to the fair value measurement of awards granted to employees was allocated as follows (in thousands): Years Ended December 31, 2015 2014 2013 Cost of revenue $ 130 $ 101 $ 74 General and administrative 3,139 1,174 1,480 Sales and marketing 436 487 424 Research and development 354 342 197 Total employee stock-based compensation expense $ 4,059 $ 2,104 $ 2,175 Stock -Based Compensation — Non-Employee Stock Options We account for awards granted to non-employees, other than members of our Board of Directors, in accordance with ASC 505-50 , “Equity-Based Payments to Non-Employees,” The fair value of stock options issued to non-employees other than members of our Board of Directors was calculated using the Black-Scholes option pricing model based on the following assumptions. There were no stock options issued to or outstanding for non-employees other than members of our Board of Directors during 2015 and 2014: Years Ended December 31, 2015 2014 2013 Weighted average expected life (years) — — 0.25 Weighted average expected volatility — — 69% Risk-free interest rate — — 0.07% - 0.11% Weighted average dividend yield — — 0% Stock-based compensation expense related to awards granted to non-employees other than members of our Board of Directors was allocated as follows (in thousands): Years Ended December 31, 2015 2014 2013 General and administrative $ — $ — $ 2 Total non-employee stock-based compensation expense $ — $ — $ 2 |
Note 13 - Business Segment and
Note 13 - Business Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 13 — Business Segment and Geographic Information We manufacture and sell high-efficiency energy recovery devices and pumps as well as related products and services. Our chief operating decision-maker (“CODM”) is the chief executive officer (“CEO”). Following the appointment of a new CEO in April 2015, new internal reporting was developed for making operating decisions and assessing financial performance. Beginning July 1, 2015, a new internal organizational and reporting structure was implemented and we began reporting segment information on a basis reflecting this new structure. Prior period amounts have been adjusted retrospectively to reflect this new internal reporting structure. Our reportable operating segments consist of the Water Segment and the Oil & Gas Segment. These segments are based on the industries in which the products are sold, the type of energy recovery device sold, and the related products and services. The Water Segment consists of revenue associated with products sold for use in reverse osmosis water desalination, as well as the related identifiable expenses. The Oil & Gas Segment consists of revenue associated with products sold for use in gas processing, chemical processing, and hydraulic fracturing, as well as related identifiable expenses. Operating income for each segment excludes other income and expenses and certain expenses managed outside the operating segment. Costs excluded from operating income include various corporate expenses such as certain share-based compensation expenses, income taxes, and other separately managed general and administrative expenses not related to the identified segments. Assets and liabilities are reviewed at the consolidated level by the CODM and are not accounted for by segment. The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss). The following summarizes financial information by segment for the periods presented (in thousands): Year Ended December 31, 2015 Water Oil &Gas Total Product revenue $ 43,530 $ 141 $ 43,671 Product cost of revenue 19,045 66 19,111 Product gross profit 24,485 75 24,560 License and development revenue — 1,042 1,042 Operating expenses: General and administrative 936 1,797 2,733 Sales and marketing 4,918 4,070 8,988 Research and development 1,126 6,552 7,678 Amortization of intangibles 635 — 635 Operating expenses 7,615 12,419 20,034 Operating income (loss) $ 16,870 $ (11,302 ) 5,568 Less: Corporate operating expenses 17,359 Consolidated operating loss (11,791 ) Non-operating expenses (181 ) Loss before income taxes $ (11,972 ) Year Ended December 31, 2014 Water Oil &Gas Total Product revenue $ 29,643 $ 783 $ 30,426 Product cost of revenue 13,713 — 13,713 Product gross profit 15,930 783 16,713 Operating expenses: General and administrative 1,756 917 2,673 Sales and marketing 4,169 5,383 9,552 Research and development 1,453 8,237 9,690 Amortization of intangibles 842 — 842 Operating expenses 8,220 14,537 22,757 Operating income (loss) $ 7,710 $ (13,754 ) (6,044 ) Less: Corporate operating expenses 12,439 Consolidated operating loss (18,483 ) Non-operating income 69 Loss before income taxes $ (18,414 ) Year Ended December 31, 2013 Water Oil &Gas Total Product revenue $ 43,045 $ — $ 43,045 Product cost of revenue 17,323 — 17,323 Product gross profit 25,722 — 25,722 Operating expenses: General and administrative 2,618 1,596 4,214 Sales and marketing 6,193 1,131 7,324 Research and development 1,759 2,602 4,361 Amortization of intangibles 921 — 921 Restructuring charges 184 — 184 Operating expenses 11,675 5,329 17,004 Operating income (loss) $ 14,047 $ (5,329 ) 8,718 Less: Corporate operating expenses 11,606 Consolidated operating loss (2,888 ) Non-operating income 109 Loss before income taxes $ (2,779 ) Depreciation and amortization expense by segment was as follows: Years Ended December 31, Segment 2015 2014 2013 Water $ 3,192 $ 3,518 $ 3,533 Oil & Gas 203 105 26 Corporate 443 405 238 Total depreciation and amortization $ 3,838 $ 4,028 $ 3,797 The following geographic information includes product revenue to our domestic and international customers based on the customers’ requested delivery locations, except for certain cases in which the customer directed us to deliver its products to a location that differs from the known ultimate location of use. In such cases, the ultimate location of use, rather than the delivery location, is reflected in the table below (in thousands, except percentages): Years Ended December 31, 2015 2014 2013 Domestic product revenue $ 2,861 $ 1,273 $ 5,437 International product revenue 40,810 29,153 37,608 Total revenue $ 43,671 $ 30,426 $ 43,045 Product revenue by country: Qatar 13 % * % * % Oman 12 2 11 United Arab Emirates 10 2 9 China 8 10 9 United States 7 4 13 Egypt 6 10 3 India 3 16 6 Saudi Arabia 3 5 17 Others (1) 38 51 32 Total 100 % 100 % 100 % * Represents less than 1 % (1) Includes remaining countries not separately disclosed. No country in this line item accounted for more than 10% of our product revenue during any of the periods presented. All of our long-lived assets were located in the United States at December 31, 2015 and 2014. |
Note 14 - Concentrations
Note 14 - Concentrations | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | Note 14 — Concentrations Concentration of Credit Risk We have an investment portfolio of fixed -income marketable debt securities, including amounts classified as cash equivalents, short-term investments, and long-term investments. The primary objective of our investment activities is to preserve principal and liquidity while at the same time maximizing yields without significantly increasing risk. We invest primarily in investment-grade short-term and long-term debt instruments of corporate issuers and the U.S. government and its agencies. These investments are subject to counterparty credit risk. To minimize this risk, we invest pursuant to a Board-approved investment policy. The policy mandates high credit rating requirements and restricts our exposure to any single corporate issuer by imposing concentration limits. Our accounts receivable are derived from sales to customers in the water desalination industry located around the world. We generally do not require collateral to support customer receivables, but frequently require export letters of credit securing payment. We perform ongoing evaluations of our customers’ financial condition and periodically review credit risk associated with receivables. An allowance for doubtful accounts is determined with respect to receivable amounts that we have determined to be doubtful of collection using specific identification of doubtful accounts and an aging of receivables analysis based on invoice due dates. Actual collection losses may differ from our estimates, and such differences could be material to the financial position, results of operations, and cash flows. Uncollectible receivables are written off against the allowance for doubtful accounts when all efforts to collect them have been exhausted, while recoveries are recognized when they are received. Customer Concentration Customers accounting for 10% or more of our combined accounts receivable and unbilled receivables were as follows: December 31, 2015 2014 Customer A 26 % 2 % Customer B 18 % * Customer C 9 % 32 % Customer D 2 % 11 % * None No other customer accounted for more than 10% of our combined accounts receivable and unbilled receivables during any of these periods. Product revenue from customers representing 10% or more of product revenue varies from period to period. Customers representing 10% or more of product revenue for the periods indicated were: December 31, 2015 201 4 201 3 Customer B 14 % * 15 % Customer C 1 % 14 % 7 % * Less than 1% No other customer accounted for more than 10% of our product revenue during any of these periods. One customer accounts for 100% of our License and development revenue. |
Note 15 - Restructuring Activit
Note 15 - Restructuring Activities | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Note 15 — Restructuring Activities Consolidation of North American Operations In 2011, we completed a restructuring plan to consolidate our North American production activities and transfer our Michigan-based operations to our manufacturing center and headquarters in San Leandro, California. The consolidation was expected to reduce costs, improve efficiencies, and enhance research and development activities. For the year ended December 31, 2011, we recorded total pre-tax charges of $3.1 million related to this plan. The consolidation of these operations was substantially completed as of December 31, 2011. In 2012, we recorded additional restructuring charges related to this plan of $369,000. With the exception of potential further impairment adjustments for assets held for sale, we did not anticipate further costs related to this restructuring activity. In 2013, we impaired the building and land held for sale by $44,000 to reduce the carrying value to estimated fair value. The building and land were sold in September 2013. Net proceeds from the sale totaled $1.2 million, resulting in a loss on sale of $0.1 million. As the assets were part of the restructuring plan, the loss on sale was reported in the Consolidated Statement of Operations in the caption “Restructuring Charges.” During the years ended December 31, 2015 and 2014, there were no further costs related to this restructuring activity. The major components of the restructuring charges relating to the consolidation of our North American operations were as follows (in thousands): Year s Ended December 31, 2015 2014 2013 Losses on disposals/sale and impairment of assets held for sale $ — $ — $ 184 Liabilities associated with the North American operations restructuring plan were zero at December 31, 2015 and 2014. |
Note 16 - Schlumberger License
Note 16 - Schlumberger License Agreement | 12 Months Ended |
Dec. 31, 2015 | |
License Agreement Disclosure [Abstract] | |
License Agreement Disclosure [Text Block] | Note 16 — Schlumberger License Agreement On October 14, 2015, the Company and Schlumberger Technology Corporation (“Schlumberger”) signed a fifteen (15) year license agreement which provides Schlumberger with exclusive worldwide rights to the Company’s VorTeq hydraulic fracturing technology for use in hydraulic fracturing onshore applications (the “Schlumberger License Agreement”). The VorTeq is made up of cartridges though which hydraulic fracturing fluid passes and a missile that houses the cartridges. The Schlumberger License Agreement includes up to $125 million in consideration paid in stages: (i) a $75 million non-refundable upfront payment; and (ii) two (2) payments of $25 million each upon achieving specified development milestones (“Milestone Payment 1 and 2”). Once the VorTeq is commercialized, Schlumberger will begin paying ongoing recurring monthly fees to the Company for supply and service of the cartridges based on the number of VorTeq’s in operation which is subject to the greater of a minimum adoption curve or the adoption rate of the technology. The agreement includes both contingent and non-contingent deliverables. Non-contingent deliverables include the license, development services to commercialize the technology, and support services. Contingent deliverables include the supply and service of the cartridges and development services related to the integration of the commercialized technology with Schlumberger equipment. The Company applied the guidance for multi-element arrangements in identifying deliverables, determining units of accounting, allocating total contract consideration to the units of accounting, and recognizing revenue. It was determined that the non-contingent deliverables did not have stand-alone value individually, but did on a combined basis, and therefore represented a unit of accounting. The license will provide access to the technology over the term of the agreement and, along with the support, is the final deliverable in this unit of accounting. The $75 million upfront payment was allocated to this unit of accounting and revenue is recognized on a straight-line basis over the fifteen (15) year term of the license, starting from the day that the license agreement was signed and all services commenced. We recognized license fees of $1.0 million in 2015 as License and development revenue and we had a deferred revenue balance of $74.0 million related to the upfront license fee as of December 31, 2015. The cartridge supply and support services are not assessed to have stand-alone value independent of each other and fees for these deliverables will be recognized as earned. Milestone Payment 1 of $25 million is payable upon a successful five (5) stage yard test at a Schlumberger test facility. If a successful yard test is not achieved by the target date, the payment will be delayed until the successful yard test is achieved. The Milestone Payment 2 of $25 million is payable upon a successful twenty (20) stage hydraulic fracturing at a Schlumberger customer live well. If success is not achieved by the target date, the payment will be delayed until the successful live well test is achieved. The achievement of either milestone and receipt of the related payments is subject to a high degree of uncertainty. With respect to the Milestone Payments, the Company determined the payments did meet the definition of a substantive milestone. The factors considered in the determination that each milestone was substantive included whether the consideration earned from the achievement of the milestone is commensurate with the vendor's performance or the enhancement of value; the degree of certainty in achieving the milestone; whether the milestone relates solely to past performance; and whether the consideration earned from the achievement of the milestone is reasonable relative to all of the deliverables and payment terms within the arrangement . Since these milestone payments represent research and development deliverables in which performance obligations are satisfied over a period of time and in which the consideration is contingent upon uncertain future events or circumstances, the Company elected the milestone method of accounting and revenue will be recognized in the period in which the milestones are achieved. For the year ending December 31, 2015, no revenue was recognized for the Milestones Payments, nor in any other periods presented. Achievement of Milestone Payment 2 is the gating item to the commercialization of the VorTeq. Following Milestone Payment 2, Schlumberger will begin integrating the technology into its fleets. When the technology is integrated into Schlumberger’s fleets, the Company will begin providing cartridges and servicing those cartridges which will generate ongoing recurring revenues. The monthly recurring royalty fee per VorTeq in use will be paid based on the greater of a minimum adoption curve or the adoption rate of the technology. Further, a provision is made for an advance royalty payment to which recurring royalty fees will be applied. The exclusive nature of the agreement terminates if Schlumberger does not meet the specified minimum adoption curves. In the event the Company is not able to meet the specified development milestones and successfully commercialize the technology, the license continues on an exclusive nature for the full term. With respect to the cartridges and associated service, royalty revenue will be recognized as royalties are earned, that is, in the period in which the contingency regarding royalties are resolved and the amount of royalties are fixed and determinable based on the cartridges delivered. |
Note 17 - Supplementary Data -
Note 17 - Supplementary Data - Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Note 17 — Supplementary Data — Quarterly Financial Data (unaudited) The following table presents certain unaudited consolidated quarterly financial information for each of the eight fiscal quarters in the period ended December 31, 2015. This quarterly information has been prepared on the same basis as the audited Consolidated Financial Statements and includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the information for the periods presented. The results for these quarterly periods are not necessarily indicative of the operating results for a full year or any future period. QUARTERLY FINANCIAL DATA (unaudited) Three Months Ended, December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 (In thousands, except per share amounts) Quarterly Results of Operations (1) Product revenue $ 15,211 $ 12,112 $ 10,484 $ 5,864 Product cost of revenue 6,796 4,948 4,836 2,531 Product gross profit 8,415 7,164 5,648 3,333 License and development revenue 1,042 — — — Operating expenses: General and administrative (2 ) 4,543 3,590 5,362 6,278 Sales and marketing 2,704 2,195 1,994 2,433 Research and development 2,242 1,474 1,410 2,533 Amortization of intangible assets 159 159 158 159 Loss from operations $ (191 ) $ (254 ) $ (3,276 ) $ (8,070 ) Net income (loss) $ 312 $ (340 ) $ (3,327 ) $ (8,283 ) Earnings (loss) per share: Basic $ 0.01 $ (0.01 ) $ (0.06 ) $ (0.16 ) Diluted $ 0.01 $ (0.01 ) $ (0.06 ) $ (0.16 ) Three Months Ended, December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 (In thousands, except per share amounts) Quarterly Results of Operations (1) Product revenue $ 14,780 $ 5,342 $ 6,407 $ 3,897 Product cost of revenue 5,722 3,007 3,332 1,652 Product gross profit 9,058 2,335 3,075 2,245 Operating expenses: General and administrative (3 ) 6,027 3,078 2,995 2,039 Sales and marketing 2,977 2,351 2,702 2,495 Research and development ( 4 ) 4,601 2,131 1,724 1,234 Amortization of intangible assets 196 216 215 215 Loss from operations $ (4,743 ) $ (5,441 ) $ (4,561 ) $ (3,738 ) Net loss $ (4,905 ) $ (5,506 ) $ (4,611 ) $ (3,683 ) Loss per share: Basic and diluted $ (0.09 ) $ (0.11 ) $ (0.09 ) $ (0.07 ) (1) Quarterly results may not add up to annual results due to rounding. (2) The increase in general and administrative expense in the first and second quarters of 2015 were substantially related to the resignation of our former Chief Executive Officer and the termination of the former Senior Vice-President of Sales. (3) The increase in general and administrative expense in the fourth quarter of 2014 was substantially related to the termination of the former Senior Vice-President of Sales. (4) The increase in research and development expense in the fourth quarter of 2014 was related to direct research and development project costs associated with new product initiatives. |
Note 18 - Subsequent Events
Note 18 - Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 1 8 — Subsequent Events See Note 11 — “Stockholders’ Equity ” See Note 9 — “ Commitments and Contingencies - Litigation” On February 24, 2016, the Compensation Committee of the Board of Directors approved the Annual Incentive Plan for 2016. A copy of this plan was filed with the SEC on Form 8-K, on March 1, 2016. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Description Balance at Beginning of Period Additions Charged to Costs and Expenses Changes in Estimates Charged to Costs and Expenses (1) Deductions (2) Balance at End of Period (In thousands) Year Ended December 31, 2013 Allowance for doubtful accounts $ 217 $ 346 $ (277 ) $ (45 ) $ 241 Year Ended December 31, 2014 Allowance for doubtful accounts $ 241 $ 299 $ (383 ) $ (2 ) $ 155 Year Ended December 31, 2015 Allowance for doubtful accounts $ 155 $ 112 $ (101 ) $ $ 166 (1) Collections of previously reserved accounts (2) Uncollectible accounts written off, net of recoveries All other schedules have been omitted because the information required to be presented in them is not applicable or is shown in the Consolidated Financial Statements or related Notes. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation Our Consolidated Financial Statements include the accounts of Energy Recovery, Inc. and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires our management to make judgments, assumptions, and estimates that affect the amounts reported in our Consolidated Financial Statements and accompanying Notes. The accounting policies that reflect our more significant estimates and judgments and that we believe are the most critical to aid in fully understanding and evaluating our reported financial results are revenue recognition; allowance for doubtful accounts; allowance for product warranty; valuation of stock options; valuation and impairment of goodwill and acquired intangible assets; useful lives for depreciation and amortization; valuation adjustments for excess and obsolete inventory; deferred taxes and valuation allowances on deferred tax assets; and evaluation and measurement of contingencies, including contingent consideration. Those estimates could change, and as a result, actual results could differ materially from those estimates. For example, the Company records impairment losses on long-lived assets used in operations when events and circumstances indicate that long-lived assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. The Company’s estimate of undiscounted cash flows, at December 31, 2015 and 2014 indicated that such carrying amounts were expected to be recovered. Nonetheless, it is possible that the estimate of undiscounted cash flows may change in the future resulting in the need to write down those assets to fair value. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents We consider all highly liquid investments with an original or remaining maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. Our cash and cash equivalents are maintained primarily in demand deposit accounts with large financial institutions and in institutional money market funds. We frequently monitor the creditworthiness of the financial institutions and institutional money market funds in which we invest our surplus funds. We have not experienced any credit losses from our cash investments. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Allowances for Doubtful Accounts We record a provision for doubtful accounts based on historical experience and a detailed assessment of the collectability of our accounts receivable. In estimating the allowance for doubtful accounts, we consider, among other factors, the aging of the accounts receivable, our historical write-offs, the credit worthiness of each customer, and general economic conditions. Account balances are charged off against the allowance when we believe that it is probable that the receivable will not be recovered. Actual write-offs may be in excess of our estimated allowance. |
Marketable Securities, Policy [Policy Text Block] | Short-Term and Long-Term Investments Our short-term and long-term investments consist primarily of investment-grade debt securities, all of which are classified as available-for-sale. Available-for-sale securities are carried at fair value. Amortization or accretion of premium or discount is included in other income (expense) on the Consolidated Statements of Operations. Changes in the fair value of available-for-sale securities are reported as a component of accumulated other comprehensive loss within stockholders’ equity on the Consolidated Balance Sheet. Realized gains and losses on the sale of available-for-sale securities are determined by specific identification of the cost basis of each security. Long-term investments generally will mature within three (3) years. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost (using the first-in, first-out “FIFO” method) or market. We calculate inventory valuation adjustments for excess and obsolete inventory based on current inventory levels, movement, expected useful lives, and estimated future demand of the products and spare parts. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment is recorded at cost and reduced by accumulated depreciation. Depreciation expense is recognized over the estimated useful lives of the assets using the straight-line method. Estimated useful lives are three to ten years. Certain equipment used in the development and manufacturing of ceramic components is depreciated over estimated useful lives of up to ten years. Leasehold improvements represent remodeling and retrofitting costs for leased office and manufacturing space and are depreciated over the shorter of either the estimated useful lives or the term of the lease. Software purchased for internal use consists primarily of amounts paid for perpetual licenses to third-party software providers and installation costs. Software is depreciated over the estimated useful lives of three (3) to five (5) years. Estimated useful lives are periodically reviewed, and when appropriate, changes are made prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts. Maintenance and repairs are charged directly to expense as incurred. We previously owned our manufacturing facility in New Boston, Michigan. As a result of the consolidation of our North American manufacturing operations, amounts related to the building and land were classified as held for sale at December 31, 2011. Accordingly, we impaired the building and land held for sale by $728,000 and ceased depreciation charges in December 2011. We recorded an additional $44,000 and $314,000 of impairment charges during the years ended December 31, 2013 and 2012, respectively, to reduce the carrying value to the estimated fair value. The property was sold in September 2013. Net proceeds from the sale totaled $1.2 million, resulting in a loss on sale of $0.1 million. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets The purchase price of an acquired company is allocated between intangible assets and the net tangible assets of the acquired business with the residual purchase price recorded as goodwill. The determination of the value of the intangible assets acquired involves certain judgments and estimates. These judgments can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital. Acquired intangible assets with determinable useful lives are amortized on a straight-line or accelerated basis over the estimated periods benefited, ranging from one to 20 years. Acquired intangible assets with contractual terms are amortized over their respective legal or contractual lives. Customer relationships and other non-contractual intangible assets with determinable lives are amortized over periods ranging from five to 20 years. We evaluate the recoverability of intangible assets by comparing the carrying amount of an asset to estimated future net undiscounted cash flows generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The evaluation of recoverability involves estimates of future operating cash flows based upon certain forecasted assumptions, including, but not limited to, revenue growth rates, gross profit margins, and operating expenses over the expected remaining useful life of the related asset. A shortfall in these estimated operating cash flows could result in an impairment charge in the future. Goodwill is not amortized, but is evaluated annually for impairment at the reporting unit level or when indicators of a potential impairment are present. We estimate the fair value of the reporting unit using the discounted cash flow and market approaches. Forecast of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on expected category expansion, pricing, market segment, and general economic conditions. As of December 31, 2015 and 2014, acquired intangibles, including goodwill, relate to the acquisition of Pump Engineering, LLC during the fourth quarter of 2009. See Note 6 — “ Goodwill and Intangible Assets ” |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments Our financial instruments include cash and cash equivalents, restricted cash, investments in marketable securities, accounts receivable, accounts payable, and debt. The carrying amounts for these financial instruments reported in the Consolidated Balance Sheets approximate their fair values. See Note 7 — “ Fair Value Measurements ” |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Product revenue recognition We recognize revenue when the earnings process is complete, as evidenced by a written agreement with the customer, transfer of title, fixed pricing that is determinable, and collection that is reasonably assured. Transfer of title typically occurs upon shipment of the equipment pursuant to a written purchase order or contract. The portion of the sales agreement related to the field services and training for commissioning of our devices in a desalination plant is deferred until we have performed such services. We regularly evaluate our revenue arrangements to identify deliverables and to determine whether these deliverables are separable into multiple units of accounting. Under our revenue recognition policy, evidence of an arrangement has been met when we have an executed purchase order, sales order, or stand-alone contract. Typically, smaller projects utilize sales or purchase orders that conform to standard terms and conditions. The specified product performance criteria for our PX device pertain to the ability of our product to meet its published performance specifications and warranty provisions, which our products have demonstrated on a consistent basis. This factor, combined with historical performance metrics, provides our management with a reasonable basis to conclude that its PX device will perform satisfactorily upon commissioning of the plant. To ensure this successful product performance, we provide service consisting principally of supervision of customer personnel and training to the customers during the commissioning of the plant. The installation of the PX device is relatively simple, requires no customization, and is performed by the customer under the supervision of our personnel. We defer the value of the service and training component of the contract and recognize such revenue as services are rendered. Based on these factors, our management has concluded that, for sale of PX devices, as well as for turbochargers and pumps, delivery and performance have been completed upon shipment or delivery when title transfers based on the shipping terms. We perform an evaluation of credit worthiness on an individual contract basis to assess whether collectability is reasonably assured. As part of this evaluation, our management considers many factors about the individual customer, including the underlying financial strength of the customer and/or partnership consortium and management’s prior history or industry-specific knowledge about the customer and its supplier relationships. For smaller projects, we require the customer to remit payment generally within 30 to 90 days after product delivery. In some cases, if credit worthiness cannot be determined, prepayment or other security is required from smaller customers. We establish separate units of accounting for contracts, as our contracts with customers typically include one or both of the following deliverables, and there is no right of return under the terms of the contract. ● Products ● Commissioning which includes supervision of the installation, start-up, and training to ensure that the installation performed by the customer, which is relatively simple and straightforward, is completed consistent with the recommendations under the factory warranty. The commissioning services’ element of our contracts represents an incidental portion of the total contract price. The allocable consideration for these services relative to that for the underlying products has been well under 1% of any arrangement. Commissioning is often bundled into the large stand-alone contracts, and we frequently sell products without commissioning since our product can be easily installed in a plant without supervision. These facts and circumstances validate that the delivered element has value on a stand-alone basis and should be considered a separate unit of accounting. Having established separate units of accounting, we then take the next steps to allocate amounts to each unit of accounting. With respect to products, we have established vendor specific objective evidence (“VSOE”) based on the price at which such products are sold separately without commissioning services. With respect to commissioning, we charge out our engineers for field visits to customers based on a stand-alone standard daily field service charge as well as a flat service rate for travel, if applicable. This has been determined to be the VSOE of the service based on stand-alone sales of other comparable professional services at consistent pricing. The amount allocable to the delivered unit of account (in our case the product) is limited to the amount that is not contingent upon the delivery of additional items or meeting specified performance conditions. We adhere to consistent pricing in both stand-alone sale of products and professional services and the contractual pricing of products and commissioning of services in bundled arrangements. For large projects, stand-alone contracts are utilized. For these contracts, consistent with industry practice, our customers typically require their suppliers, including Energy Recovery, to accept contractual holdback provisions (also referred to as a retention payment) whereby the final amounts due under the sales contract are remitted over extended periods of time or alternatively, stand-by letters of credit are issued to guarantee performance. These retention payments typically range between 5% and 15%, of the total contract amount and are due and payable when the customer is satisfied that certain specified product performance criteria have been met upon commissioning of the desalination plant, which may be up to 24 months from the date of product delivery as described further below. Under stand-alone contracts, the usual payment arrangements are summarized as follows: • an advance payment due upon execution of the contract, typically 10% to 20% of the total contract amount. This advance payment is accounted for as deferred revenue until shipment or when products are delivered to the customer, depending on the Incoterms and transfer of title; • a payment ranging from 50% to 70% of the total contract is typically due upon delivery of the product. This payment is often divided into two parts. The first part, which is due 30 to 60 days following delivery of the product and documentation, is invoiced upon shipment when the product revenue is recognized and results in an open accounts receivable with the customer. The second part is typically due 90 to 120 days following product delivery and documentation. This payment is booked to unbilled receivables upon shipment when the product revenue is recognized, and it is invoiced to the customer upon notification that the equipment has been received or when the time period has expired. We have no performance obligation to complete to be legally entitled to this payment. It is invoiced based on the passage of time. • a final retention payment of usually 5% to 15% of the contract amount is due either at the completion of plant commissioning or upon the issuance of a stand-by letter of credit, which is typically issued up to 24 months from the delivery date of products and documentation. This payment is recorded to unbilled receivables upon shipment when the product revenue is recognized, and it is invoiced to the customer when it is determined that commissioning is complete or the stand-by letter of credit has been issued. This payment is not contingent upon the delivery of commissioning services. The Company had no performance obligation to complete to be legally entitled to this payment. It is invoiced based on the passage of time. We do not provide our customers with a right of product return; however, we will accept returns of products that are deemed to be damaged or defective when delivered that are covered by the terms and conditions of the product warranty. Product returns have not been significant. Shipping and handling charges billed to customers are included in product revenue. The cost of shipping to customers is included in cost of revenue. License and development revenue recognition License revenue is comprised of fees received in connection the Schlumberger License Agreement. See Note 16 – Schlumberger License Agreement. The agreement comprises a 15 year exclusive license for the our VorTeq technology, development services to commercialize the technology, support services, and, in the event commercialization is successful, supply and servicing of certain components of the VorTeq and development services related to integration of the commercialized technology with future Schlumberger equipment. Various types of payments to the Company are provided in the agreement, including an upfront exclusive license fee, developmental milestones, and payments for supply and servicing of components subsequent to commercialization. All payments are non-refundable. We recognize license revenue in accordance with ASC 605 “Revenue Recognition”, subtopic ASC 605-25 “ Revenue with Multiple Element Arrangements ” and subtopic ASC 605-28 “ Revenue Recognition-Milestone Method ”, which provides accounting guidance for revenue recognition for arrangements with multiple deliverables and guidance on defining the milestone and determining when the use of the milestone method of revenue recognition for research and development transactions is appropriate, respectively. For multiple-element arrangements, each deliverable is accounted for as a separate unit of accounting if both the following criteria are met: (1) the delivered item or items have value to the customer on a standalone basis and (2) for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. Contingent deliverables within multiple element arrangements are excluded from the evaluation of the units of accounting. Non-refundable, upfront license fees where we have continuing obligation to perform are recognized over the period of the continuing performance obligation. The Schlumberger License Agreement was determined to include a single unit of accounting comprising the license, research and development, and support services. We recognize revenue from milestone payments when: (i) the milestone event is substantive and its achievability has substantive uncertainty at the inception of the agreement, and (ii) it does not have ongoing performance obligations related to the achievement of the milestone earned. Milestone payments are considered substantive if all of the following conditions are met, the milestone payment: (a) is commensurate with either the Company’s performance subsequent to the inception of the arrangement to achieve the milestone or the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from the Company’s performance subsequent to the inception of the arrangement to achieve the milestone; (b) relates solely to past performance; and (c) is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. The Schlumberger License Agreement includes two substantive milestones of $25 million each due on achieving specified development milestones. No revenues associated with achievement of the milestones have been recognized to date. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Expense Research and development expenses consist of costs incurred for internal projects and research and development activities performed for technology licensed to third parties. These costs include our direct and research-related overhead expenses, which include salaries and other personnel-related expenses (including stock-based compensation), occupancy-related costs, depreciation of facilities, as well as external costs, and are expensed as incurred. Costs to acquire technologies that are utilized in research and development and that have no alternative future use are expensed when incurred. |
Standard Product Warranty, Policy [Policy Text Block] | Warranty Costs We sell products with a limited warranty for a period ranging from eighteen (18) months to five (5) years. We accrue for warranty costs based on estimated product failure rates, historical activity, and expectations of future costs. Periodically, we evaluate and adjust the warranty costs to the extent that actual warranty costs vary from the original estimates. During the year ended December 31, 2015, we adjusted previously established warranty reserves. The adjustment related to expired warranties which increased gross profit and reduced net loss by $0.4 million. During the year ended December 31, 2013, the Company adjusted previously established warranty reserves. The accruals had been made based on historic warranty claim rates during 2010 and 2011, a period that covered the integration of the PEI acquisition and related manufacturing operations into the Company’s existing operation. At December 31, 2013, the Company revised the rates based on warranty claim data during the two-year period after integration, which covered 2012 and 2013. This resulted in a release of accruals related to expired warranties, which increased gross profit and reduced net loss by $0.3 million. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-based Compensation We measure and recognize stock-based compensation expense based on the fair value measurement for all stock-based awards made to our employees and directors — including restricted stock units (“RSUs”), restricted shares (“RS”), and employee stock options — over the requisite service period (typically the vesting period of the awards). The fair value of RSUs and RS is based on our stock price on the date of grant. At December 31, 2015, there were no outstanding RSUs or RS. The fair value of stock options is calculated on the date of grant using the Black-Scholes option pricing model, which requires a number of complex assumptions including expected life, expected volatility, risk-free interest rate, and dividend yield. The estimation of awards that will ultimately vest requires judgment, and to the extent that actual results or updated estimates differ from our current estimates, such amounts are recorded as a cumulative adjustment in the period in which the estimates are revised. See Note 12 — “Stock-based Compensation ” |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Our reporting currency is the U.S. dollar. The functional currency of our Ireland subsidiaries is the U.S. dollar, while the functional currency of our other foreign subsidiaries is their respective local currencies. The asset and liability accounts of our foreign subsidiaries are translated from their local currencies at the rates in effect on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the period. Gains and losses resulting from the translation of our subsidiary balance sheets are recorded as a component of accumulated other comprehensive loss. Gains and losses from foreign currency transactions are recorded in other income (expense) in the Consolidated Statements of Operations. |
Income Tax, Policy [Policy Text Block] | Income Taxes Current and non-current tax assets and liabilities are based upon an estimate of taxes refundable or payable for each of the jurisdictions in which we are subject to tax. In the ordinary course of business, there is inherent uncertainty in quantifying income tax positions. We assess income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances, and information available at the reporting dates. For those tax positions where it is more likely than not that a tax benefit will be sustained, we record the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit is recognized in the financial statements. When applicable, associated interest and penalties are recognized as a component of income tax expense. Accrued interest and penalties are included within the related tax asset or liability on the Consolidated Balance Sheets. Deferred income taxes are provided for temporary differences arising from differences in bases of assets and liabilities for tax and financial reporting purposes. Deferred income taxes are recorded on temporary differences using enacted tax rates in effect for the year in which the temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Significant judgment is required in determining whether and to what extent any valuation allowance is needed on our deferred tax assets. In making such a determination, we consider all available positive and negative evidence including recent results of operations, scheduled reversals of deferred tax liabilities, projected future income, and available tax planning strategies. As of December 31, 2015, we have a valuation allowance of approximately $21.4 million to reduce our deferred income tax assets to the amount expected to be realized. See Note 10 — “ Income Taxes ” Our operations are subject to income and transaction taxes in the U.S. and in foreign jurisdictions. Significant estimates and judgments are required in determining our worldwide provision for income taxes. Some of these estimates are based on interpretations of existing tax laws or regulations. The ultimate amount of tax liability may be uncertain as a result. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Other than as described below, no new accounting pronouncement issued or effective during the fiscal year has had or is expected to have a material impact on our Consolidated Financial Statements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest. Also in April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other- Internal-Use Software. In July 2015, the FASB issued ASU 2015-11, Inventory – Simplifying the Measurement of Inventory. In September 2015, the FASB issued ASU No. 2015-16, Bu siness Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilitie s In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842). |
Note 3 - Loss per Share (Tables
Note 3 - Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Years Ended December 31, 2015 2014 2013 Numerator: Net loss $ (11,638 ) $ (18,705 ) $ (3,106 ) Denominator: Basic and diluted weighted average common shares outstanding 52,151 51,675 51,066 Basic and diluted net loss per share $ (0.22 ) $ (0.36 ) $ (0.06 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Years Ended December 31, 2015 2014 2013 Restricted awards — 28 — Warrants — 200 650 Stock options 7,198 6,276 7,111 |
Note 4 - Other Financial Info29
Note 4 - Other Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Note 4 - Other Financial Information (Tables) [Line Items] | |
Schedule of Restricted Cash and Cash Equivalents [Table Text Block] | December 31, 201 5 201 4 Collateral for stand-by letters of credit $ 1,490 $ 2,623 Current restricted cash $ 1,490 $ 2,623 Collateral for stand-by letters of credit $ 2,317 $ 2,850 Non-current restricted cash $ 2,317 $ 2,850 Total restricted cash $ 3,807 $ 5,473 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 201 5 2014 Accounts receivable $ 11,756 $ 11,096 Less: allowance for doubtful accounts (166 ) (155 ) $ 11,590 $ 10,941 |
Unbilled Receivables [Table Text Block] | December 31, 201 5 2014 Unbilled receivables, current $ 1,879 $ 1,343 Unbilled receivables, non-current 6 414 $ 1,885 $ 1,757 |
Schedule of Inventory, Current [Table Text Block] | December 31, 2015 2014 Raw materials $ 2,590 $ 2,903 Work in process 1,689 1,915 Finished goods 2,224 3,386 $ 6,503 $ 8,204 |
Schedule of Other Current Assets [Table Text Block] | December 31, 2015 2014 Interest receivable $ 4 $ 112 Foreign currency put options 33 — Supplier advances 171 107 Other prepaid expenses and current assets 735 1,098 $ 943 $ 1,317 |
Property, Plant and Equipment [Table Text Block] | December 31, 2015 2014 Machinery and equipment $ 14,448 $ 14,029 Leasehold improvements 10,196 10,184 Software 2,344 2,237 Office equipment, furniture, and fixtures 1,848 1,828 Automobiles 76 22 Construction in progress 48 54 28,960 28,354 Less: accumulated depreciation and amortization (18,338 ) (15,143 ) $ 10,622 $ 13,211 |
Schedule of Accrued Liabilities [Table Text Block] | December 31, 201 5 2014 Payroll and commissions payable $ 5,086 $ 3,116 Other accrued expenses and current liabilities 2,468 2,254 Accrued legal expenses, current 217 1,734 Accrued research and development expenses 37 1,323 $ 7,808 $ 8,427 |
Other Noncurrent Liabilities [Table Text Block] | December 31, 201 5 2014 Deferred rent expense, non-current $ 718 $ 866 Accrued legal expenses, non-current — 1,587 $ 718 $ 2,453 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Investments Total Accumulated Other Comprehensive Loss Balance, December 31, 2012 $ (94 ) $ 15 $ (79 ) Net other comprehensive loss (12 ) (16 ) (28 ) Balance, December 31, 2013 $ (106 ) $ (1 ) $ (107 ) Gross other comprehensive loss (income) 39 (6 ) 33 Gross reclassification to realized gain — 1 1 Balance, December 31, 2014 $ (67 ) $ (6 ) $ (73 ) Net other comprehensive income 4 5 9 Balance, December 31, 2015 $ (63 ) $ (1 ) $ (64 ) |
Deferred Revenue, Current [Member] | |
Note 4 - Other Financial Information (Tables) [Line Items] | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | December 31, 201 5 2014 Deferred license and development revenue, current $ 5,000 $ — Deferred product revenue, current 878 519 $ 5,878 $ 519 |
Deferred Revenue, Non-current [Member] | |
Note 4 - Other Financial Information (Tables) [Line Items] | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | December 31, 201 5 2014 Deferred license and development revenue, non-current $ 68,958 $ — Deferred product revenue, non-current 42 59 $ 69,000 $ 59 |
Note 5 - Investments (Tables)
Note 5 - Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | December 31, 201 5 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value Short-term investments Corporate notes and bonds $ 258 $ — $ (1 ) $ 257 Total short-term investments $ 258 $ — $ (1 ) $ 257 Total investments $ 258 $ — $ (1 ) $ 257 December 31, 201 4 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value Short-term investments State and local government obligations $ 225 $ — $ — $ 225 Corporate notes and bonds 12,851 4 (8 ) 12,847 Total short-term investments $ 13,076 $ 4 $ (8 ) $ 13,072 Long-term investments Corporate notes and bonds 268 — (1 ) 267 Total long-term investments $ 268 $ — $ (1 ) $ 267 Total investments $ 13,344 $ 4 $ (9 ) $ 13,339 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | December 31, 201 5 Less than 12 months 12 months or greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate notes and bonds $ — $ — $ 257 $ (1 ) $ 257 $ (1 ) Total $ — $ — $ 257 $ (1 ) $ 257 $ (1 ) December 31, 201 4 Less than 12 months 12 months or greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate notes and bonds $ 5,085 $ (6 ) $ 1,205 $ (3 ) $ 6,290 $ (9 ) Total $ 5,085 $ (6 ) $ 1,205 $ (3 ) $ 6,290 $ (9 ) |
Investments Classified by Contractual Maturity Date [Table Text Block] | December 31, 2015 Amortized Cost Fair Value Due after one year through three years $ 258 $ 257 Total investments $ 258 $ 257 |
Note 6 - Goodwill and Intangi31
Note 6 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | December 31, 2015 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Losses Net Carrying Amount Weighted Average Useful Life Amortization Method (1) Developed technology $ 6,100 $ (3,711 ) $ — $ 2,389 10 SL Non-compete agreements 1,310 (1,310 ) — — 4* SL Backlog 1,300 (1,300 ) — — 1 SL Trademarks 1,200 (180 ) (1,020 ) — 20 SL Customer relationships 990 (990 ) — — 5 SOYD Patents 585 (401 ) (42 ) 142 18 SL $ 11,485 $ (7,892 ) $ (1,062 ) $ 2,531 9 December 31, 2014 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Losses Net Carrying Amount Weighted Average Useful Life Amortization Method (1) Developed technology $ 6,100 $ (3,101 ) $ — $ 2,999 10 SL Non-compete agreements 1,310 (1,310 ) — — 4* SL Backlog 1,300 (1,300 ) — — 1 SL Trademarks 1,200 (180 ) (1,020 ) — 20 SL Customer relationships 990 (990 ) — — 5 SOYD Patents 585 (376 ) (42 ) 167 18 SL $ 11,485 $ (7,257 ) $ (1,062 ) $ 3,166 9 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | December 31, 2016 631 2017 631 2018 629 2019 575 2020 16 Thereafter 49 $ 2,531 |
Note 7 - Fair Value Measureme32
Note 7 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair Value Measurement at Reporting Date Using December 31, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Assets: Available-for-sale securities $ 257 $ — $ 257 $ — Foreign currency put options 33 — 33 — Total assets $ 290 $ — $ 290 $ — Fair Value Measurement at Reporting Date Using December 31, 2014 Level 1 Inputs Level 2 Inputs Level 3 Inputs Assets: Available-for-sale securities $ 13,339 $ — $ 13,339 $ — |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Contingent Consideration Balance, December 31, 2012 $ 1,524 Loss due to change in fair value — Balance, December 31, 2013 $ 1,524 Net gain on settlement (149 ) Settlement payment (1,375 ) Balance, December 31, 2014 $ — Loss due to change in fair value — Balance, December 31, 2015 $ — |
Note 8 - Long-term Debt and L33
Note 8 - Long-term Debt and Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | December 31, 2015 2014 Loan payable $ 48 $ — Less: current portion (10 ) — Total long-term debt $ 38 $ — |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2016 10 2017 11 2018 11 2019 12 2020 4 Total debt $ 48 |
Note 9 - Commitments and Cont34
Note 9 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | December 31, 2016 1,597 2017 1,568 2018 1,591 2019 1,398 $ 6,154 |
Schedule of Product Warranty Liability [Table Text Block] | Years Ended December 31, 2015 2014 201 3 Balance, beginning of period $ 755 $ 709 $ 1,172 Warranty costs charged to cost of revenue 135 156 126 Utilization of warranty (34 ) (110 ) (249 ) Release of accrual related to expired warranties (395 ) — (340 ) Balance, end of period $ 461 $ 755 $ 709 |
Schedule of Guarantor Obligations [Table Text Block] | December 31, 2015 2014 2009 Agreement $ — $ 2,274 2012 Agreement 3,769 3,055 $ 3,769 $ 5,329 |
Note 10 - Income Taxes (Tables)
Note 10 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Years Ended December 31, 201 5 201 4 201 3 Loss (income) before income taxes: U.S. $ (7,566 ) $ (18,393 ) $ (2,872 ) Foreign (4,406 ) (21 ) 93 Loss before income taxes $ (11,972 ) $ (18,414 ) $ (2,779 ) Current tax provision (benefit): Federal $ — $ — $ 97 State (3 ) 2 8 Foreign 20 15 (4 ) $ 17 $ 17 $ 101 Deferred tax provision (benefit): Federal $ 225 $ 241 $ 217 State (17 ) 33 9 Foreign (559 ) — — $ (351 ) $ 274 $ 226 Total provision (benefit) for income taxes $ (334 ) $ 291 $ 327 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years Ended December 31, 201 5 201 4 201 3 U.S. federal taxes at statutory rate (34 %) (34 %) (34 %) Foreign rate differential 17 % — — Non-benefited losses stemming from valuation allowance on current year 9 % 35 % 32 % Stock-based compensation 8 % 3 % 15 % State income tax, net of federal benefit — — 1 % Federal research credits (2 %) (2 %) (5 %) Other (1 %) — 3 % Effective tax rate (3 %) 2 % 12 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Years Ended December 31, 201 5 201 4 Deferred tax assets: Net operating loss carry forwards $ 14,972 $ 13,790 Accruals and reserves 4,842 5,164 Research and development credit carry forwards 1,916 1,532 Acquired intangibles 1,459 1,520 Unrealized gain on foreign currency translation and investments — 29 Charitable contributions 6 6 $ 23,195 $ 22,041 Valuation allowance (21,443 ) (20,367 ) Net deferred tax assets $ 1,752 $ 1,674 Deferred tax liabilities: Depreciation on property and equipment $ (1,152 ) $ (1,674 ) Unrecognized gain on translation of foreign currency (41 ) — Goodwill (1,981 ) (1,749 ) Total deferred tax liabilities $ (3,174 ) $ (3,423 ) Net deferred tax liabilities $ (1,422 ) $ (1,749 ) As reported on the balance sheet: Current assets, net $ 938 $ 240 Non-current liabilities, net (2,360 ) (1,989 ) Net deferred tax liabilities $ (1,422 ) $ (1,749 ) |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | 201 5 2014 Gross unrecognized tax benefits as of December 31, $ 292 $ 96 Gross increases related to current year tax position 115 193 Gross increases related to prior year tax position — 3 Settlement (13 ) — Gross unrecognized tax benefits as of December 31, $ 394 $ 292 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Years Ended December 31, 2015 2014 2013 Outstanding, beginning of period 200 650 950 Exercised during the period (200 ) (361 ) (280 ) Cancelled during the period — (89 ) (20 ) Outstanding, end of period — 200 650 Weighted average exercise price of warrants outstanding at end of period $ 0 $ 1.00 $ 1.00 Weighted average remaining contractual life, in years, of warrants outstanding at end of period 0 0.5 1.0 |
Note 12 - Share-based Compens37
Note 12 - Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Options Outstanding Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value (2) Balance December 31, 2012 6,516,082 $ 4.25 7.5 $ 2,994,000 Granted 1,074,252 $ 4.06 — — Exercised (168,215 ) $ 2.40 — — Forfeited (311,497 ) $ 4.00 — — Balance December 31, 2013 7,110,622 $ 4.28 6.7 $ 13,017,000 Granted 1,922,000 $ 5.22 — — Exercised (872,997 ) $ 2.70 — — Forfeited (1,883,596 ) $ 5.21 — — Balance December 31, 2014 6,276,029 $ 4.51 7.0 $ 8,065,000 Granted 2,611,910 $ 3.01 — — Exercised (349,814 ) $ 3.22 — — Forfeited (1,339,646 ) $ 3.18 — — Balance December 31, 2015 7,198,479 $ 3.97 7.0 $ 22,875,000 Vested and exercisable as of December 31, 2015 4,179,765 $ 4.28 5.5 $ 12,202,000 Vested and exercisable as of December 31, 2015 and expected to vest thereafter (1) 6,782,821 $ 4.00 6.9 $ 21,378,000 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value [Table Text Block] | Years Ended December 31, 2015 2014 2013 Weighted average fair value of options granted to employees (per share) $ 1.50 $ 2.41 $ 2.08 Aggregate intrinsic value of options exercised (in thousands) $ 942 $ 1,842 $ 464 Fair value of options vested (in thousands) $ 4,657 $ 2,027 $ 2,209 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Shares Weighted Average Grant-Date Fair Value (Per share) Outstanding at December 31, 2012 3,501 $ 7.13 Vested (3,084 ) $ 7.13 Forfeited (417 ) $ 7.13 Outstanding at December 31, 2013 — $ — Awarded 27,609 $ 5.27 Outstanding at December 31, 2014 27,609 $ 5.27 Vested (27,609 ) $ 5.27 Outstanding at December 31, 2015 — $ — |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Years Ended December 31, 2015 2014 2013 Weighted average expected life (years) 4.71 3.87 5.2 Weighted average expected volatility 61.79% 61% 59% Risk-free interest rate 1.12% - 2.19% 0.98% - 1.28% 0.84% - 1.42% Weighted average dividend yield 0% 0% 0% Years Ended December 31, 2015 2014 2013 Weighted average expected life (years) — — 0.25 Weighted average expected volatility — — 69% Risk-free interest rate — — 0.07% - 0.11% Weighted average dividend yield — — 0% |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Years Ended December 31, 2015 2014 2013 Cost of revenue $ 130 $ 101 $ 74 General and administrative 3,139 1,174 1,480 Sales and marketing 436 487 424 Research and development 354 342 197 Total employee stock-based compensation expense $ 4,059 $ 2,104 $ 2,175 Years Ended December 31, 2015 2014 2013 General and administrative $ — $ — $ 2 Total non-employee stock-based compensation expense $ — $ — $ 2 |
Note 13 - Business Segment an38
Note 13 - Business Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Year Ended December 31, 2015 Water Oil &Gas Total Product revenue $ 43,530 $ 141 $ 43,671 Product cost of revenue 19,045 66 19,111 Product gross profit 24,485 75 24,560 License and development revenue — 1,042 1,042 Operating expenses: General and administrative 936 1,797 2,733 Sales and marketing 4,918 4,070 8,988 Research and development 1,126 6,552 7,678 Amortization of intangibles 635 — 635 Operating expenses 7,615 12,419 20,034 Operating income (loss) $ 16,870 $ (11,302 ) 5,568 Less: Corporate operating expenses 17,359 Consolidated operating loss (11,791 ) Non-operating expenses (181 ) Loss before income taxes $ (11,972 ) Year Ended December 31, 2014 Water Oil &Gas Total Product revenue $ 29,643 $ 783 $ 30,426 Product cost of revenue 13,713 — 13,713 Product gross profit 15,930 783 16,713 Operating expenses: General and administrative 1,756 917 2,673 Sales and marketing 4,169 5,383 9,552 Research and development 1,453 8,237 9,690 Amortization of intangibles 842 — 842 Operating expenses 8,220 14,537 22,757 Operating income (loss) $ 7,710 $ (13,754 ) (6,044 ) Less: Corporate operating expenses 12,439 Consolidated operating loss (18,483 ) Non-operating income 69 Loss before income taxes $ (18,414 ) Year Ended December 31, 2013 Water Oil &Gas Total Product revenue $ 43,045 $ — $ 43,045 Product cost of revenue 17,323 — 17,323 Product gross profit 25,722 — 25,722 Operating expenses: General and administrative 2,618 1,596 4,214 Sales and marketing 6,193 1,131 7,324 Research and development 1,759 2,602 4,361 Amortization of intangibles 921 — 921 Restructuring charges 184 — 184 Operating expenses 11,675 5,329 17,004 Operating income (loss) $ 14,047 $ (5,329 ) 8,718 Less: Corporate operating expenses 11,606 Consolidated operating loss (2,888 ) Non-operating income 109 Loss before income taxes $ (2,779 ) |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Years Ended December 31, Segment 2015 2014 2013 Water $ 3,192 $ 3,518 $ 3,533 Oil & Gas 203 105 26 Corporate 443 405 238 Total depreciation and amortization $ 3,838 $ 4,028 $ 3,797 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Years Ended December 31, 2015 2014 2013 Domestic product revenue $ 2,861 $ 1,273 $ 5,437 International product revenue 40,810 29,153 37,608 Total revenue $ 43,671 $ 30,426 $ 43,045 Product revenue by country: Qatar 13 % * % * % Oman 12 2 11 United Arab Emirates 10 2 9 China 8 10 9 United States 7 4 13 Egypt 6 10 3 India 3 16 6 Saudi Arabia 3 5 17 Others (1) 38 51 32 Total 100 % 100 % 100 % |
Note 14 - Concentrations (Table
Note 14 - Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivable [Member] | |
Note 14 - Concentrations (Tables) [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | December 31, 2015 2014 Customer A 26 % 2 % Customer B 18 % * Customer C 9 % 32 % Customer D 2 % 11 % |
Sales Revenue, Net [Member] | |
Note 14 - Concentrations (Tables) [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | December 31, 2015 201 4 201 3 Customer B 14 % * 15 % Customer C 1 % 14 % 7 % |
Note 15 - Restructuring Activ40
Note 15 - Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Year s Ended December 31, 2015 2014 2013 Losses on disposals/sale and impairment of assets held for sale $ — $ — $ 184 |
Note 17 - Supplementary Data 41
Note 17 - Supplementary Data - Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Three Months Ended, December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 (In thousands, except per share amounts) Quarterly Results of Operations (1) Product revenue $ 15,211 $ 12,112 $ 10,484 $ 5,864 Product cost of revenue 6,796 4,948 4,836 2,531 Product gross profit 8,415 7,164 5,648 3,333 License and development revenue 1,042 — — — Operating expenses: General and administrative (2 ) 4,543 3,590 5,362 6,278 Sales and marketing 2,704 2,195 1,994 2,433 Research and development 2,242 1,474 1,410 2,533 Amortization of intangible assets 159 159 158 159 Loss from operations $ (191 ) $ (254 ) $ (3,276 ) $ (8,070 ) Net income (loss) $ 312 $ (340 ) $ (3,327 ) $ (8,283 ) Earnings (loss) per share: Basic $ 0.01 $ (0.01 ) $ (0.06 ) $ (0.16 ) Diluted $ 0.01 $ (0.01 ) $ (0.06 ) $ (0.16 ) Three Months Ended, December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 (In thousands, except per share amounts) Quarterly Results of Operations (1) Product revenue $ 14,780 $ 5,342 $ 6,407 $ 3,897 Product cost of revenue 5,722 3,007 3,332 1,652 Product gross profit 9,058 2,335 3,075 2,245 Operating expenses: General and administrative (3 ) 6,027 3,078 2,995 2,039 Sales and marketing 2,977 2,351 2,702 2,495 Research and development ( 4 ) 4,601 2,131 1,724 1,234 Amortization of intangible assets 196 216 215 215 Loss from operations $ (4,743 ) $ (5,441 ) $ (4,561 ) $ (3,738 ) Net loss $ (4,905 ) $ (5,506 ) $ (4,611 ) $ (3,683 ) Loss per share: Basic and diluted $ (0.09 ) $ (0.11 ) $ (0.09 ) $ (0.07 ) |
Schedule II - Valuation and Q42
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Summary of Valuation Allowance [Table Text Block] | Description Balance at Beginning of Period Additions Charged to Costs and Expenses Changes in Estimates Charged to Costs and Expenses (1) Deductions (2) Balance at End of Period (In thousands) Year Ended December 31, 2013 Allowance for doubtful accounts $ 217 $ 346 $ (277 ) $ (45 ) $ 241 Year Ended December 31, 2014 Allowance for doubtful accounts $ 241 $ 299 $ (383 ) $ (2 ) $ 155 Year Ended December 31, 2015 Allowance for doubtful accounts $ 155 $ 112 $ (101 ) $ $ 166 |
Note 2 - Summary of Significa43
Note 2 - Summary of Significant Accounting Policies (Details) - USD ($) | Oct. 14, 2015 | Sep. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Goodwill, Impairment Loss (in Dollars) | $ 0 | ||||||
Long-term Investments Maturity Period | 3 years | ||||||
Gain (Loss) on Disposition of Property Plant Equipment (in Dollars) | $ (38,000) | $ (71,000) | |||||
Finite-Lived Intangible Asset, Useful Life | 9 years | 9 years | |||||
Commissioning Services, Maximum Percentage of Total Contract Consideration | 1.00% | ||||||
Standard Product Warranty Accrual, Preexisting, Increase (Decrease) (in Dollars) | $ 400,000 | $ 300,000 | |||||
Deferred Tax Assets, Valuation Allowance (in Dollars) | $ 21,443,000 | $ 20,367,000 | |||||
Schlumberger Technology License Agreement [Member] | |||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
SLB Licence Agreement Term | 15 years | 15 years | |||||
Restricted Stock [Member] | |||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in Shares) | 0 | 27,609 | 0 | 3,501 | |||
Restricted Stock Units (RSUs) [Member] | |||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in Shares) | 0 | ||||||
Land and Building [Member] | |||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Impairment of Long-Lived Assets to be Disposed of (in Dollars) | $ 728,000 | $ 44,000 | $ 314,000 | ||||
Proceeds from Sale of Property Held-for-sale (in Dollars) | $ 1,200,000 | ||||||
Gain (Loss) on Disposition of Property Plant Equipment (in Dollars) | $ (100,000) | ||||||
Milestone Payment One Upon Successful Yard Test [Member] | Schlumberger Technology License Agreement [Member] | |||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
SLB Milestone Payment to Be Recieved (in Dollars) | $ 25,000,000 | $ 25,000,000 | |||||
Minimum [Member] | |||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||||||
Customer Payment Period after Product Delivery | 30 days | ||||||
Contractual Holdback Provisions | 5.00% | ||||||
Advanced Payment Due Under Stand Alone Contracts | 10.00% | ||||||
Payment Due Upon Delivery of Product | 50.00% | ||||||
Payment Due Upon Delivery Of Product, First Part, Payment Period | 30 days | ||||||
Payment Due Upon Delivery of Product, Second Part, Payment Period | 90 days | ||||||
Final Payment Due at Completion of Plant Commissioning or Issuance of ASBLC | 5.00% | ||||||
Product Warranty Term | 18 months | ||||||
Minimum [Member] | Software and Software Development Costs [Member] | |||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||
Minimum [Member] | Customer Relationships and Other Non-contractual Intangible Assets [Member] | |||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||||
Maximum [Member] | |||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 10 years | ||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||||||
Customer Payment Period after Product Delivery | 90 days | ||||||
Contractual Holdback Provisions | 15.00% | ||||||
Contractual Holdback Provision, Holding Period | 24 months | ||||||
Advanced Payment Due Under Stand Alone Contracts | 20.00% | ||||||
Payment Due Upon Delivery of Product | 70.00% | ||||||
Payment Due Upon Delivery Of Product, First Part, Payment Period | 60 days | ||||||
Payment Due Upon Delivery of Product, Second Part, Payment Period | 120 days | ||||||
Final Payment Due at Completion of Plant Commissioning or Issuance of ASBLC | 15.00% | ||||||
Product Warranty Term | 5 years | ||||||
Maximum [Member] | Equipment Used in Manufacture of Ceramic Components [Member] | |||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 10 years | ||||||
Maximum [Member] | Software and Software Development Costs [Member] | |||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||
Maximum [Member] | Customer Relationships and Other Non-contractual Intangible Assets [Member] | |||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 20 years |
Note 3 - Loss per Share (Detail
Note 3 - Loss per Share (Details) - Computation of Basic and Diluted Loss per Share - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||||||||||||||||||
Net loss | $ 312 | $ (340) | $ (3,327) | $ (8,283) | $ (4,905) | $ (5,506) | $ (4,611) | $ (3,683) | $ (11,638) | $ (18,705) | $ (3,106) | ||||||||
Denominator: | |||||||||||||||||||
Basic and diluted weighted average common shares outstanding | 52,151 | 51,675 | 51,066 | ||||||||||||||||
Basic and diluted net loss per share | $ (0.09) | $ (0.11) | $ (0.09) | $ (0.07) | $ (0.22) | $ (0.36) | $ (0.06) | ||||||||||||
[1] | Quarterly results may not add up to annual results due to rounding. |
Note 3 - Loss per Share (Deta45
Note 3 - Loss per Share (Details) - Antidilutive Securities Excluded from Computation of Diluted Earnings per Share - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock and Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 28 | ||
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 200 | 650 | |
Equity Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 7,198 | 6,276 | 7,111 |
Note 4 - Other Financial Info46
Note 4 - Other Financial Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 4 - Other Financial Information (Details) [Line Items] | |||
Inventory Valuation Reserves | $ 1,700,000 | $ 2,000,000 | |
Depreciation | 3,200,000 | 3,200,000 | $ 2,900,000 |
Property, Plant and Equipment, Net | 10,622,000 | 13,211,000 | |
Advertising Expense | 8,000 | 107,000 | 41,000 |
Software and Software Development Costs [Member] | |||
Note 4 - Other Financial Information (Details) [Line Items] | |||
Depreciation | 400,000 | 400,000 | $ 200,000 |
Property, Plant and Equipment, Net | $ 1,000,000 | $ 1,300,000 | |
Minimum [Member] | Unbilled Receivables [Member] | |||
Note 4 - Other Financial Information (Details) [Line Items] | |||
Contractual Holdback Provision, Holding Period | 2 months | ||
Maximum [Member] | |||
Note 4 - Other Financial Information (Details) [Line Items] | |||
Contractual Holdback Provision, Holding Period | 24 months | ||
Maximum [Member] | Unbilled Receivables [Member] | |||
Note 4 - Other Financial Information (Details) [Line Items] | |||
Contractual Holdback Provision, Holding Period | 31 months |
Note 4 - Other Financial Info47
Note 4 - Other Financial Information (Details) - Restricted Cash - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | $ 1,490 | $ 2,623 |
Non-current restricted cash | 2,317 | 2,850 |
Total restricted cash | 3,807 | 5,473 |
Collateral for Stand-by Letters of Credit [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | 1,490 | 2,623 |
Non-current restricted cash | 2,317 | 2,850 |
Total restricted cash | $ 3,800 | $ 5,500 |
Note 4 - Other Financial Info48
Note 4 - Other Financial Information (Details) - Accounts Receivable - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Receivable [Abstract] | ||
Accounts receivable | $ 11,756 | $ 11,096 |
Less: allowance for doubtful accounts | (166) | (155) |
$ 11,590 | $ 10,941 |
Note 4 - Other Financial Info49
Note 4 - Other Financial Information (Details) - Unbilled Receivables - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Unbilled Receivables [Abstract] | ||
Unbilled receivables, current | $ 1,879 | $ 1,343 |
Unbilled receivables, non-current | 6 | 414 |
$ 1,885 | $ 1,757 |
Note 4 - Other Financial Info50
Note 4 - Other Financial Information (Details) - Inventories - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Raw materials | $ 2,590 | $ 2,903 |
Work in process | 1,689 | 1,915 |
Finished goods | 2,224 | 3,386 |
$ 6,503 | $ 8,204 |
Note 4 - Other Financial Info51
Note 4 - Other Financial Information (Details) - Prepaid Expenses and Other Current Assets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expenses and Other Current Assets [Abstract] | ||
Interest receivable | $ 4 | $ 112 |
Foreign currency put options | 33 | |
Supplier advances | 171 | 107 |
Other prepaid expenses and current assets | 735 | 1,098 |
$ 943 | $ 1,317 |
Note 4 - Other Financial Info52
Note 4 - Other Financial Information (Details) - Property and Equipment - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 28,960 | $ 28,354 |
Less: accumulated depreciation and amortization | (18,338) | (15,143) |
10,622 | 13,211 | |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 14,448 | 14,029 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,196 | 10,184 |
Software and Software Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,344 | 2,237 |
1,000 | 1,300 | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,848 | 1,828 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 76 | 22 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 48 | $ 54 |
Note 4 - Other Financial Info53
Note 4 - Other Financial Information (Details) - Accrued Expenses and Other Current Liabilities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued Expenses and Other Current Liabilities [Abstract] | ||
Payroll and commissions payable | $ 5,086 | $ 3,116 |
Other accrued expenses and current liabilities | 2,468 | 2,254 |
Accrued legal expenses, current | 217 | 1,734 |
Accrued research and development expenses | 37 | 1,323 |
$ 7,808 | $ 8,427 |
Note 4 - Other Financial Info54
Note 4 - Other Financial Information (Details) - Deferred Revenue, Current - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, current | $ 5,878 | $ 519 |
Software License Arrangement [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, current | 5,000 | |
Portion of Revenue of Product Sales Agreement for Installation, Start-up, and Training [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, current | $ 878 | $ 519 |
Note 4 - Other Financial Info55
Note 4 - Other Financial Information (Details) - Deferred Revenue, Non-current - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, non-current | $ 69,000 | $ 59 |
Software License Arrangement [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, non-current | 68,958 | |
Portion of Revenue of Product Sales Agreement for Installation, Start-up, and Training [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, non-current | $ 42 | $ 59 |
Note 4 - Other Financial Info56
Note 4 - Other Financial Information (Details) - Non-current Liabilities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Non-current Liabilities [Abstract] | ||
Deferred rent expense, non-current | $ 718 | $ 866 |
Accrued legal expenses, non-current | 1,587 | |
$ 718 | $ 2,453 |
Note 4 - Other Financial Info57
Note 4 - Other Financial Information (Details) - Accumulated Other Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance | $ (73) | ||
Accumulated Other Comprehensive Income (Loss), Balance | (64) | $ (73) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance | (67) | (106) | $ (94) |
Other Comprehensive Income (Loss) | 4 | (12) | |
Gross other comprehensive loss (income) | 39 | ||
Accumulated Other Comprehensive Income (Loss), Balance | (63) | (67) | (106) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance | (6) | (1) | 15 |
Gross reclassification to realized gain | 1 | ||
Other Comprehensive Income (Loss) | 5 | (16) | |
Gross other comprehensive loss (income) | (6) | ||
Accumulated Other Comprehensive Income (Loss), Balance | (1) | (6) | (1) |
Tax Benefit on Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance | (73) | (107) | (79) |
Gross reclassification to realized gain | 1 | ||
Other Comprehensive Income (Loss) | 9 | (28) | |
Gross other comprehensive loss (income) | 33 | ||
Accumulated Other Comprehensive Income (Loss), Balance | $ (64) | $ (73) | $ (107) |
Note 5 - Investments (Details)
Note 5 - Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from Sale of Available-for-sale Securities | $ 0 | $ 0 |
Note 5 - Investments (Details)
Note 5 - Investments (Details) - Available-For-Sale Securities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term investments | ||
Amortized Cost | $ 258 | $ 13,344 |
Gross Unrealized Holding Gains | 4 | |
Gross Unrealized Holding Losses | (1) | (9) |
Fair Value | 257 | 13,339 |
Short-term Investment [Member] | ||
Short-term investments | ||
Amortized Cost | 258 | 13,076 |
Gross Unrealized Holding Gains | 4 | |
Gross Unrealized Holding Losses | (1) | (8) |
Fair Value | 257 | 13,072 |
Long-term Investments [Member] | ||
Short-term investments | ||
Amortized Cost | 268 | |
Gross Unrealized Holding Losses | (1) | |
Fair Value | 267 | |
Corporate Debt Securities [Member] | Short-term Investment [Member] | ||
Short-term investments | ||
Amortized Cost | 258 | 12,851 |
Gross Unrealized Holding Gains | 4 | |
Gross Unrealized Holding Losses | (1) | (8) |
Fair Value | $ 257 | 12,847 |
Corporate Debt Securities [Member] | Long-term Investments [Member] | ||
Short-term investments | ||
Amortized Cost | 268 | |
Gross Unrealized Holding Losses | (1) | |
Fair Value | 267 | |
US States and Political Subdivisions Debt Securities [Member] | Short-term Investment [Member] | ||
Short-term investments | ||
Amortized Cost | 225 | |
Fair Value | $ 225 |
Note 5 - Investments (Details60
Note 5 - Investments (Details) - Gross Unrealized Losses and Fair Values of Investments - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 5 - Investments (Details) - Gross Unrealized Losses and Fair Values of Investments [Line Items] | ||
Fair value, less than 12 months | $ 5,085 | |
Gross unrealized losses, less then 12 months | (6) | |
Fair value, 12 months or greater | $ 257 | 1,205 |
Gross unrealized losses, 12 months or greater | (1) | (3) |
Fair value, total | 257 | 6,290 |
Gross unrealized losses, total | (1) | (9) |
Corporate Debt Securities [Member] | ||
Note 5 - Investments (Details) - Gross Unrealized Losses and Fair Values of Investments [Line Items] | ||
Fair value, less than 12 months | 5,085 | |
Gross unrealized losses, less then 12 months | (6) | |
Fair value, 12 months or greater | 257 | 1,205 |
Gross unrealized losses, 12 months or greater | (1) | (3) |
Fair value, total | 257 | 6,290 |
Gross unrealized losses, total | $ (1) | $ (9) |
Note 5 - Investments (Details61
Note 5 - Investments (Details) - Amortized Cost and Fair Value of Available-For-Sale Securities $ in Thousands | Dec. 31, 2015USD ($) |
Amortized Cost and Fair Value of Available-For-Sale Securities [Abstract] | |
Due after one year through three years | $ 258 |
Due after one year through three years | 257 |
Total investments | 258 |
Total investments | $ 257 |
Note 6 - Goodwill and Intangi62
Note 6 - Goodwill and Intangible Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 0 | $ 0 | |||||||||||||||||
Goodwill | 12,790,000 | $ 12,790,000 | 12,790,000 | $ 12,790,000 | $ 12,800,000 | ||||||||||||||
Impairment of Intangible Assets, Finite-lived | 0 | ||||||||||||||||||
Amortization of Intangible Assets | $ 159,000 | [1] | $ 159,000 | $ 158,000 | $ 159,000 | $ 196,000 | [1] | $ 216,000 | $ 215,000 | $ 215,000 | $ 635,000 | $ 842,000 | $ 921,000 | ||||||
[1] | Quarterly results may not add up to annual results due to rounding. |
Note 6 - Goodwill and Intangi63
Note 6 - Goodwill and Intangible Assets (Details) - Identifiable Intangible Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 11,485 | $ 11,485 | |
Accumulated Amortization | (7,892) | (7,257) | |
Accumulated Impairment Losses | (1,062) | (1,062) | |
Net Carrying Amount | $ 2,531 | $ 3,166 | |
Weighted Average Useful Life | 9 years | 9 years | |
Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 6,100 | $ 6,100 | |
Accumulated Amortization | (3,711) | (3,101) | |
Net Carrying Amount | $ 2,389 | $ 2,999 | |
Weighted Average Useful Life | 10 years | 10 years | |
Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,310 | $ 1,310 | |
Accumulated Amortization | $ (1,310) | $ (1,310) | |
Weighted Average Useful Life | [1] | 4 years | 4 years |
Order or Production Backlog [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,300 | $ 1,300 | |
Accumulated Amortization | $ (1,300) | $ (1,300) | |
Weighted Average Useful Life | 1 year | 1 year | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,200 | $ 1,200 | |
Accumulated Amortization | (180) | (180) | |
Accumulated Impairment Losses | $ (1,020) | $ (1,020) | |
Weighted Average Useful Life | 20 years | 20 years | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 990 | $ 990 | |
Accumulated Amortization | $ (990) | $ (990) | |
Weighted Average Useful Life | 5 years | 5 years | |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 585 | $ 585 | |
Accumulated Amortization | (401) | (376) | |
Accumulated Impairment Losses | (42) | (42) | |
Net Carrying Amount | $ 142 | $ 167 | |
Weighted Average Useful Life | 18 years | 18 years | |
[1] | Average life of two non-compete agreements. |
Note 6 - Goodwill and Intangi64
Note 6 - Goodwill and Intangible Assets (Details) - Future Estimated Amortization Expense on Intangible Assets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Future Estimated Amortization Expense on Intangible Assets [Abstract] | ||
2,016 | $ 631 | |
2,017 | 631 | |
2,018 | 629 | |
2,019 | 575 | |
2,020 | 16 | |
Thereafter | 49 | |
$ 2,531 | $ 3,166 |
Note 7 - Fair Value Measureme65
Note 7 - Fair Value Measurements (Details) - Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Available-for-sale securities | $ 257 | $ 13,339 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Available-for-sale securities | 257 | 13,339 |
Foreign currency put options | 33 | |
Total assets | 290 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Available-for-sale securities | 257 | $ 13,339 |
Foreign currency put options | 33 | |
Total assets | $ 290 |
Note 7 - Fair Value Measureme66
Note 7 - Fair Value Measurements (Details) - Reconciliation of Assets and Liabilities Measured on a Recurring Basis Using Significant Unobservable Inputs - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Foreign Exchange Option [Member] | Derivative Financial Instruments, Assets [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Unobservable Inputs, Balance | $ 0 | $ 0 | ||
Foreign Exchange Option [Member] | Derivative Financial Instruments, Assets [Member] | Changes Measurement [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Gain (Loss) included in Earnings | $ 0 | |||
Contingent Consideration [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Unobservable Inputs, Balance | $ 1,524 | $ 1,524 | ||
Gain (Loss) included in Earnings | (149) | |||
Settlement payment | $ (1,375) | |||
Contingent Consideration [Member] | Changes Measurement [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Gain (Loss) included in Earnings | $ 0 |
Note 8 - Long-term Debt and L67
Note 8 - Long-term Debt and Lines of Credit (Details) - USD ($) | Jun. 05, 2012 | Dec. 31, 2009 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 31, 2012 |
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Long-term Debt | $ 48,000 | ||||||
Restricted Cash and Cash Equivalents | 3,807,000 | $ 5,473,000 | |||||
Collateral for Stand-by Letters of Credit [Member] | |||||||
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Restricted Cash and Cash Equivalents | 3,800,000 | 5,500,000 | |||||
Standby Letters of Credit [Member] | |||||||
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Long-term Line of Credit | 3,769,000 | 5,329,000 | |||||
March 2015 Installment Loan[ Member] | |||||||
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Long-term Debt | $ 55,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.35% | ||||||
The 2012 Agreement [Member] | |||||||
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 16,000,000 | ||||||
Cash Collateral Balance Required by Credit Agreement | 101.00% | ||||||
The 2012 Agreement [Member] | Collateral for Stand-by Letters of Credit [Member] | |||||||
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Restricted Cash and Cash Equivalents | 3,800,000 | $ 3,000,000 | |||||
The 2012 Agreement [Member] | Revolving Credit Facility [Member] | |||||||
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | ||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ||||||
Long-term Line of Credit | 0 | $ 0 | |||||
The 2012 Agreement [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | |||||||
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | ||||||
The 2012 Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||
The 2012 Agreement [Member] | Standby Letters of Credit [Member] | |||||||
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 16,000,000 | ||||||
Long-term Line of Credit | 3,769,000 | 3,055,000 | |||||
The 2009 Agreement [Member] | |||||||
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 16,000,000 | ||||||
The 2009 Agreement [Member] | Collateral for Stand-by Letters of Credit [Member] | |||||||
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Restricted Cash and Cash Equivalents | 0 | 2,400,000 | |||||
The 2009 Agreement [Member] | Revolving Credit Facility [Member] | |||||||
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | ||||||
Cash Collateral Balance Required by Credit Agreement | 100.00% | ||||||
Long-term Line of Credit | $ 0 | ||||||
The 2009 Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.375% | ||||||
The 2009 Agreement [Member] | Standby Letters of Credit [Member] | |||||||
Note 8 - Long-term Debt and Lines of Credit (Details) [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,900,000 | ||||||
Cash Collateral Balance Required by Credit Agreement | 101.00% | 105.00% | |||||
Long-term Line of Credit | $ 0 | $ 2,274,000 |
Note 8 - Long-term Debt and L68
Note 8 - Long-term Debt and Lines of Credit (Details) - Long-Term Debt $ in Thousands | Dec. 31, 2015USD ($) |
Long-term Debt, Unclassified [Abstract] | |
Loan payable | $ 48 |
Less: current portion | (10) |
Total long-term debt | $ 38 |
Note 8 - Long-term Debt and L69
Note 8 - Long-term Debt and Lines of Credit (Details) - Future Minimum Principal Payments Due Under Long-Term Debt Arrangements $ in Thousands | Dec. 31, 2015USD ($) |
Future Minimum Principal Payments Due Under Long-Term Debt Arrangements [Abstract] | |
2,016 | $ 10 |
2,017 | 11 |
2,018 | 11 |
2,019 | 12 |
2,020 | 4 |
Total debt | $ 48 |
Note 9 - Commitments and Cont70
Note 9 - Commitments and Contingencies (Details) | Oct. 03, 2014EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||||
Operating Leases, Rent Expense, Net | $ 1,500,000 | $ 1,700,000 | $ 1,500,000 | |
Product Warranty Accrual, Preexisting, Increase (Decrease) | (395,000) | (340,000) | ||
Long-term Purchase Commitment, Amount | 1,500,000 | |||
Restricted Cash and Cash Equivalents | 3,807,000 | 5,473,000 | ||
Indemnification Agreement [Member] | ||||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||||
Guarantor Obligations, Current Carrying Value | 0 | 0 | ||
Labor Claim by Mr. Borja Blanco [Member] | Salary and Bonus [Member] | ||||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||||
Loss Contingency, Damages Sought, Value (in Euro) | € | € 567,000 | |||
Labor Claim by Mr. Borja Blanco [Member] | Alleged Stock Option [Member] | ||||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||||
Loss Contingency, Damages Sought, Value (in Euro) | € | € 630,000 | |||
Collateral for Stand-by Letters of Credit [Member] | ||||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||||
Restricted Cash and Cash Equivalents | 3,800,000 | $ 5,500,000 | ||
The 2009 Agreement [Member] | Standby Letters of Credit [Member] | ||||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||||
Cash Collateral Premium Required by Credit Agreement | 5.00% | |||
The 2009 Agreement [Member] | Collateral for Stand-by Letters of Credit [Member] | ||||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||||
Restricted Cash and Cash Equivalents | $ 0 | $ 2,400,000 | ||
The 2012 Agreement [Member] | Standby Letters of Credit [Member] | ||||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||||
Cash Collateral Premium Required by Credit Agreement | 1.00% | |||
The 2012 Agreement [Member] | Collateral for Stand-by Letters of Credit [Member] | ||||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||||
Restricted Cash and Cash Equivalents | $ 3,800,000 | $ 3,000,000 | ||
Minimum [Member] | ||||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||||
Warranty and Product Performance Guarantees as Percentage of Total Sales Agreement | 5.00% | |||
Maximum [Member] | ||||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||||
Warranty and Product Performance Guarantees as Percentage of Total Sales Agreement | 15.00% | |||
Warranty and Product Performance Guarantees Period | 24 months | |||
Maximum [Member] | In Some Cases [Member] | ||||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ||||
Warranty and Product Performance Guarantees Period | 68 months |
Note 9 - Commitments and Cont71
Note 9 - Commitments and Contingencies (Details) - Operating Lease Obligations $ in Thousands | Dec. 31, 2015USD ($) |
Operating Lease Obligations [Abstract] | |
2,016 | $ 1,597 |
2,017 | 1,568 |
2,018 | 1,591 |
2,019 | 1,398 |
$ 6,154 |
Note 9 - Commitments and Cont72
Note 9 - Commitments and Contingencies (Details) - Product Warranty Liability - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Product Warranty Liability [Abstract] | |||
Balance, beginning of period | $ 755 | $ 709 | $ 1,172 |
Warranty costs charged to cost of revenue | 135 | 156 | 126 |
Utilization of warranty | (34) | (110) | (249) |
Release of accrual related to expired warranties | (395) | (340) | |
Balance, end of period | $ 461 | $ 755 | $ 709 |
Note 9 - Commitments and Cont73
Note 9 - Commitments and Contingencies (Details) - Stand-by Letters of Credit Collateralized by Restricted Cash - Standby Letters of Credit [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Guarantor Obligations [Line Items] | ||
Letters of credit outstanding | $ 3,769 | $ 5,329 |
The 2009 Agreement [Member] | ||
Guarantor Obligations [Line Items] | ||
Letters of credit outstanding | 0 | 2,274 |
The 2012 Agreement [Member] | ||
Guarantor Obligations [Line Items] | ||
Letters of credit outstanding | $ 3,769 | $ 3,055 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 10 - Income Taxes (Details) [Line Items] | |||
Deferred Tax Assets, Gross | $ 23,195,000 | $ 22,041,000 | |
Deferred Tax Assets, Valuation Allowance | 21,443,000 | 20,367,000 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 1,080,000 | ||
Unrecognized Tax Benefits | 394,000 | 292,000 | $ 96,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 0 | 0 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | 0 | |
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | |||
Note 10 - Income Taxes (Details) [Line Items] | |||
Operating Loss Carryforwards | 41,000,000 | 38,800,000 | |
Operating Loss Carryforward Related To Excess Stock Based Compensation | 1,300,000 | ||
Tax Credit Carryforward, Amount | 1,200,000 | 980,000 | |
California Franchise Tax Board [Member] | State and Local Jurisdiction [Member] | |||
Note 10 - Income Taxes (Details) [Line Items] | |||
Operating Loss Carryforwards | 14,900,000 | 14,800,000 | |
Operating Loss Carryforward Related To Excess Stock Based Compensation | 217,000 | ||
Tax Credit Carryforward, Amount | 1,100,000 | 836,000 | |
Revenue Commissioners, Ireland [Member] | Foreign Tax Authority [Member] | |||
Note 10 - Income Taxes (Details) [Line Items] | |||
Operating Loss Carryforwards | $ 4,400,000 | $ 0 |
Note 10 - Income Taxes (Detai75
Note 10 - Income Taxes (Details) - Provision (Benefit) for Income Taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loss (income) before income taxes: | |||
U.S. | $ (7,566) | $ (18,393) | $ (2,872) |
Foreign | (4,406) | (21) | 93 |
Loss before income taxes | (11,972) | (18,414) | (2,779) |
Current tax provision (benefit): | |||
Federal | 97 | ||
State | (3) | 2 | 8 |
Foreign | 20 | 15 | (4) |
17 | 17 | 101 | |
Deferred tax provision (benefit): | |||
Federal | 225 | 241 | 217 |
State | (17) | 33 | 9 |
Foreign | (559) | ||
(351) | 274 | 226 | |
Total provision (benefit) for income taxes | $ (334) | $ 291 | $ 327 |
Note 10 - Income Taxes (Detai76
Note 10 - Income Taxes (Details) - Reconciliation of Income Taxes | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Income Taxes [Abstract] | |||
U.S. federal taxes at statutory rate | (34.00%) | (34.00%) | (34.00%) |
Foreign rate differential | 17.00% | ||
Non-benefited losses stemming from valuation allowance on current year | 9.00% | 35.00% | 32.00% |
Stock-based compensation | 8.00% | 3.00% | 15.00% |
State income tax, net of federal benefit | 1.00% | ||
Federal research credits | (2.00%) | (2.00%) | (5.00%) |
Other | (1.00%) | 3.00% | |
Effective tax rate | (3.00%) | 2.00% | 12.00% |
Note 10 - Income Taxes (Detai77
Note 10 - Income Taxes (Details) - Deferred Tax Assets and Liabilities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 14,972 | $ 13,790 |
Accruals and reserves | 4,842 | 5,164 |
Research and development credit carry forwards | 1,916 | 1,532 |
Acquired intangibles | 1,459 | 1,520 |
Unrealized gain on foreign currency translation and investments | 29 | |
Charitable contributions | 6 | 6 |
23,195 | 22,041 | |
Valuation allowance | (21,443) | (20,367) |
Net deferred tax assets | 1,752 | 1,674 |
Deferred tax liabilities: | ||
Depreciation on property and equipment | (1,152) | (1,674) |
Unrecognized gain on translation of foreign currency | (41) | |
Goodwill | (1,981) | (1,749) |
Total deferred tax liabilities | (3,174) | (3,423) |
Net deferred tax liabilities | (1,422) | (1,749) |
As reported on the balance sheet: | ||
Current assets, net | 938 | 240 |
Non-current liabilities, net | (2,360) | (1,989) |
Net deferred tax liabilities | $ (1,422) | $ (1,749) |
Note 10 - Income Taxes (Detai78
Note 10 - Income Taxes (Details) - Changes in Gross Unrecognized Tax Benefit - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in Gross Unrecognized Tax Benefit [Abstract] | ||
Gross unrecognized tax benefits | $ 292,000 | $ 96,000 |
Gross increases related to current year tax position | 115,000 | 193,000 |
Gross increases related to prior year tax position | 3,000 | |
Settlement | (13,000) | |
Gross unrecognized tax benefits | $ 394,000 | $ 292,000 |
Note 11 - Stockholders' Equit79
Note 11 - Stockholders' Equity (Details) - USD ($) | 2 Months Ended | 12 Months Ended | ||||
Feb. 29, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2016 | Feb. 28, 2014 | |
Note 11 - Stockholders' Equity (Details) [Line Items] | ||||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.001 | $ 0.001 | ||||
Preferred Stock, Shares Outstanding | 0 | 0 | ||||
Preferred Stock, Shares Issued | 0 | 0 | ||||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | ||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.001 | $ 0.001 | ||||
Common Stock, Shares, Issued | 54,948,235 | 54,398,421 | ||||
Common Stock, Shares, Outstanding | 52,468,779 | 51,918,965 | ||||
Stock Repurchase Program, Authorized Amount (in Dollars) | $ 6,000,000 | |||||
Treasury Stock, Shares, Acquired | 696,853 | |||||
Treasury Stock, Value, Acquired, Cost Method (in Dollars) | $ 2,800,000 | |||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 3,000,000 | |||||
Warrants Exercised during the Period | 200,000 | 450,000 | 300,000 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 0 | $ 1 | $ 1 | |||
Proceeds from Warrant Exercises (in Dollars) | $ 200,000 | |||||
Shares Issued Upon Exercise of Warrants | 200,000 | 361,000 | 280,000 | |||
Warrants Cancelled and Considered Payment During the Period | 0 | 89,000 | 20,000 | |||
Subsequent Event [Member] | ||||||
Note 11 - Stockholders' Equity (Details) [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount (in Dollars) | $ 6,000,000 | |||||
Treasury Stock, Shares, Acquired | 673,700 | |||||
Treasury Stock, Value, Acquired, Cost Method (in Dollars) | $ 4,100,000 | |||||
Warrants Exercised for Cash [Member] | ||||||
Note 11 - Stockholders' Equity (Details) [Line Items] | ||||||
Warrants Exercised during the Period | 50,000 | 100,000 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 1 | $ 1 | $ 1 | |||
Proceeds from Warrant Exercises (in Dollars) | $ 50,000 | $ 100,000 | ||||
Warrants Exercised with Shares Cancelled for Payment Consideration [Member] | ||||||
Note 11 - Stockholders' Equity (Details) [Line Items] | ||||||
Warrants Exercised during the Period | 400,000 | 200,000 | ||||
Shares Issued Upon Exercise of Warrants | 311,111 | 180,276 | ||||
Warrants Cancelled and Considered Payment During the Period | 88,889 | 19,724 |
Note 11 - Stockholders' Equit80
Note 11 - Stockholders' Equity (Details) - Warrant Activity - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Warrant Activity [Abstract] | |||
Outstanding, beginning of period | 200 | 650 | 950 |
Exercised during the period | (200) | (361) | (280) |
Cancelled during the period | 0 | (89) | (20) |
Outstanding, end of period | 200 | 650 | |
Weighted average exercise price of warrants outstanding at end of period (in Dollars per share) | $ 0 | $ 1 | $ 1 |
Weighted average remaining contractual life, in years, of warrants outstanding at end of period | 0 years | 6 months | 1 year |
Note 12 - Share-based Compens81
Note 12 - Share-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2014 | Jul. 31, 2009 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Note 12 - Share-based Compensation (Details) [Line Items] | ||||||
Share Price (in Dollars per share) | $ 7.07 | |||||
Allocated Share-based Compensation Expense (in Dollars) | $ 4,059 | $ 2,104 | $ 2,175 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 2,611,910 | 1,922,000 | 1,074,252 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 6,276,029 | 7,198,479 | 6,276,029 | 7,110,622 | 6,516,082 | |
Equity Incentive Plan 2008 [Member] | ||||||
Note 12 - Share-based Compensation (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 10,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,808,973 | 1,536,009 | 2,808,973 | |||
Employee Stock Option [Member] | ||||||
Note 12 - Share-based Compensation (Details) [Line Items] | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | $ 4,900 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | ||||
Employee Stock Option [Member] | Non-Employee [Member] | ||||||
Note 12 - Share-based Compensation (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 0 | 0 | |||
Restricted Stock [Member] | ||||||
Note 12 - Share-based Compensation (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 27,609 | |||||
Restricted Stock [Member] | Director [Member] | ||||||
Note 12 - Share-based Compensation (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 27,609 | |||||
Restricted Stock Units (RSUs) [Member] | Management [Member] | ||||||
Note 12 - Share-based Compensation (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 60,000 | |||||
Restricted Stock Units (RSUs) [Member] | Vesting on the First Anniversary of Grant Date [Member] | Management [Member] | ||||||
Note 12 - Share-based Compensation (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% |
Note 12 - Share-based Compens82
Note 12 - Share-based Compensation (Details) - Stock Option Activity - USD ($) | Dec. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Option Activity [Abstract] | |||||
Shares | 6,516,082 | 7,198,479 | 6,276,029 | 7,110,622 | |
Weighted Average Exercise Price | $ 4.25 | $ 3.97 | $ 4.51 | $ 4.28 | |
Weighted Average Remaining Contractual Life | 7 years 6 months | 7 years | 7 years | 6 years 255 days | |
Aggregate Intrinsic Value | [1] | $ 2,994,000 | $ 22,875,000 | $ 8,065,000 | $ 13,017,000 |
Shares, Granted | 2,611,910 | 1,922,000 | 1,074,252 | ||
Weighted Average Exercise Price, Granted | $ 3.01 | $ 5.22 | $ 4.06 | ||
Shares, Exercised | (349,814) | (872,997) | (168,215) | ||
Weighted Average Exercise Price, Exercised | $ 3.22 | $ 2.70 | $ 2.40 | ||
Shares, Forfeited | (1,339,646) | (1,883,596) | (311,497) | ||
Weighted Average Exercise Price, Forfeited | $ 3.18 | $ 5.21 | $ 4 | ||
Vested and exercisable as of December 31, 2015 | 4,179,765 | ||||
Vested and exercisable as of December 31, 2015 | $ 4.28 | ||||
Vested and exercisable as of December 31, 2015 | 5 years 6 months | ||||
Vested and exercisable as of December 31, 2015 | [1] | $ 12,202,000 | |||
Vested and exercisable as of December 31, 2015 and expected to vest thereafter(1) | [2] | 6,782,821 | |||
Vested and exercisable as of December 31, 2015 and expected to vest thereafter(1) | [2] | $ 4 | |||
Vested and exercisable as of December 31, 2015 and expected to vest thereafter(1) | [2] | 6 years 328 days | |||
Vested and exercisable as of December 31, 2015 and expected to vest thereafter(1) | [1],[2] | $ 21,378,000 | |||
[1] | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of our common stock as of December 31, 2015 of $7.07 per share | ||||
[2] | Options that are expected to vest are net of estimated future option forfeitures in accordance with the provisions of ASC 718, "Compensation - Stock Compensation." |
Note 12 - Share-based Compens83
Note 12 - Share-based Compensation (Details) - Aggregate Intrinsic Value - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Aggregate Intrinsic Value [Abstract] | |||
Weighted average fair value of options granted to employees (per share) (in Dollars per share) | $ 1.50 | $ 2.41 | $ 2.08 |
Aggregate intrinsic value of options exercised (in thousands) | $ 942 | $ 1,842 | $ 464 |
Fair value of options vested (in thousands) | $ 4,657 | $ 2,027 | $ 2,209 |
Note 12 - Share-based Compens84
Note 12 - Share-based Compensation (Details) - Restricted Stock Activity - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 12 - Share-based Compensation (Details) - Restricted Stock Activity [Line Items] | |||
Shares | 27,609 | 0 | 3,501 |
Weighted Average Grant-Date Fair Value | $ 5.27 | $ 0 | $ 7.13 |
Shares, Vested | (27,609) | (3,084) | |
Weighted Average Grant-Date Fair Value, Vested | $ 5.27 | $ 7.13 | |
Forfeited | (417) | ||
Forfeited | $ 7.13 | ||
Awarded | 27,609 | ||
Awarded | $ 5.27 | ||
Shares | 0 | 27,609 | 0 |
Weighted Average Grant-Date Fair Value | $ 0 | $ 5.27 | $ 0 |
Note 12 - Share-based Compens85
Note 12 - Share-based Compensation (Details) - Black-scholes Option Pricing Model Assumptions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 12 - Share-based Compensation (Details) - Black-scholes Option Pricing Model Assumptions [Line Items] | |||
Weighted average dividend yield | 0.00% | ||
Employee Stock Option [Member] | |||
Note 12 - Share-based Compensation (Details) - Black-scholes Option Pricing Model Assumptions [Line Items] | |||
Weighted average expected life (years) | 4 years 259 days | 3 years 317 days | |
Weighted average expected volatility | 61.79% | 61.00% | |
Risk-free interest rate | 1.42% | ||
Weighted average dividend yield | 0.00% | 0.00% | |
Non-Employee Stock Option [Member] | |||
Note 12 - Share-based Compensation (Details) - Black-scholes Option Pricing Model Assumptions [Line Items] | |||
Weighted average expected life (years) | 3 months | ||
Weighted average expected volatility | 69.00% | ||
Weighted average dividend yield | 0.00% | ||
Minimum [Member] | Employee Stock Option [Member] | |||
Note 12 - Share-based Compensation (Details) - Black-scholes Option Pricing Model Assumptions [Line Items] | |||
Weighted average expected life (years) | 5 years 73 days | ||
Weighted average expected volatility | 59.00% | ||
Risk-free interest rate | 1.12% | 0.98% | |
Weighted average dividend yield | 0.00% | ||
Minimum [Member] | Non-Employee Stock Option [Member] | |||
Note 12 - Share-based Compensation (Details) - Black-scholes Option Pricing Model Assumptions [Line Items] | |||
Risk-free interest rate | 0.07% | ||
Maximum [Member] | Employee Stock Option [Member] | |||
Note 12 - Share-based Compensation (Details) - Black-scholes Option Pricing Model Assumptions [Line Items] | |||
Risk-free interest rate | 2.19% | 1.28% | 0.84% |
Maximum [Member] | Non-Employee Stock Option [Member] | |||
Note 12 - Share-based Compensation (Details) - Black-scholes Option Pricing Model Assumptions [Line Items] | |||
Risk-free interest rate | 0.11% |
Note 12 - Share-based Compens86
Note 12 - Share-based Compensation (Details) - Share-based Compensation Expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Employee Share-based Compensation expense | $ 4,059 | $ 2,104 | $ 2,175 |
Non-employee Share-based Compensation expense | 2 | ||
Cost of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Employee Share-based Compensation expense | 130 | 101 | 74 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Employee Share-based Compensation expense | 3,139 | 1,174 | 1,480 |
Non-employee Share-based Compensation expense | 2 | ||
Selling and Marketing Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Employee Share-based Compensation expense | 436 | 487 | 424 |
Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Employee Share-based Compensation expense | $ 354 | $ 342 | $ 197 |
Note 13 - Business Segment an87
Note 13 - Business Segment and Geographic Information (Details) - Summary of Financial Information by Segment - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||||||
Product revenue | $ 15,211 | [1] | $ 12,112 | $ 10,484 | $ 5,864 | $ 14,780 | $ 5,342 | $ 6,407 | $ 3,897 | $ 43,671 | $ 30,426 | $ 43,045 | |||||||
Product cost of revenue | 6,796 | [1] | 4,948 | 4,836 | 2,531 | 5,722 | 3,007 | 3,332 | 1,652 | 19,111 | 13,713 | 17,323 | |||||||
Product gross profit | 8,415 | [1] | 7,164 | 5,648 | 3,333 | 9,058 | 2,335 | 3,075 | 2,245 | 24,560 | 16,713 | 25,722 | |||||||
License and development revenue | 1,042 | 1,042 | |||||||||||||||||
Operating expenses: | |||||||||||||||||||
General and administrative | 4,543 | [1],[2] | 3,590 | [2] | 5,362 | [2] | 6,278 | [2] | 6,027 | [3] | 3,078 | [3] | 2,995 | [3] | 2,039 | [3] | 19,773 | 14,139 | 15,192 |
Sales and marketing | 2,704 | [1] | 2,195 | 1,994 | 2,433 | 2,977 | 2,351 | 2,702 | 2,495 | 9,326 | 10,525 | 7,952 | |||||||
Research and development | 2,242 | [1] | 1,474 | 1,410 | 2,533 | 4,601 | [4] | 2,131 | [4] | 1,724 | [4] | 1,234 | [4] | 7,659 | 9,690 | 4,361 | |||
Amortization of intangibles | 159 | [1] | 159 | 158 | 159 | 196 | 216 | 215 | 215 | 635 | 842 | 921 | |||||||
Operating expenses | 37,393 | 35,196 | 28,610 | ||||||||||||||||
Operating income (loss) | $ (191) | [1] | $ (254) | $ (3,276) | $ (8,070) | $ (4,743) | $ (5,441) | $ (4,561) | $ (3,738) | (11,791) | (18,483) | (2,888) | |||||||
Non-operating Income (expense) | (139) | 69 | 109 | ||||||||||||||||
Loss before income taxes | (11,972) | (18,414) | (2,779) | ||||||||||||||||
Operating expenses: | |||||||||||||||||||
Restructuring charges | 184 | ||||||||||||||||||
Operating Segments [Member] | |||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||||||
Product revenue | 43,671 | 30,426 | 43,045 | ||||||||||||||||
Product cost of revenue | 19,111 | 13,713 | 17,323 | ||||||||||||||||
Product gross profit | 24,560 | 16,713 | 25,722 | ||||||||||||||||
License and development revenue | 1,042 | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||
General and administrative | 2,733 | 2,673 | 4,214 | ||||||||||||||||
Sales and marketing | 8,988 | 9,552 | 7,324 | ||||||||||||||||
Research and development | 7,678 | 9,690 | 4,361 | ||||||||||||||||
Amortization of intangibles | 635 | 842 | 921 | ||||||||||||||||
Operating expenses | 20,034 | 22,757 | 17,004 | ||||||||||||||||
Operating income (loss) | 5,568 | (6,044) | 8,718 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||
Restructuring charges | 184 | ||||||||||||||||||
Corporate, Non-Segment [Member] | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||
Operating expenses | 17,359 | 12,439 | 11,606 | ||||||||||||||||
Water [Member] | Operating Segments [Member] | |||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||||||
Product revenue | 43,530 | 29,643 | 43,045 | ||||||||||||||||
Product cost of revenue | 19,045 | 13,713 | 17,323 | ||||||||||||||||
Product gross profit | 24,485 | 15,930 | 25,722 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||
General and administrative | 936 | 1,756 | 2,618 | ||||||||||||||||
Sales and marketing | 4,918 | 4,169 | 6,193 | ||||||||||||||||
Research and development | 1,126 | 1,453 | 1,759 | ||||||||||||||||
Amortization of intangibles | 635 | 842 | 921 | ||||||||||||||||
Operating expenses | 7,615 | 8,220 | 11,675 | ||||||||||||||||
Operating income (loss) | 16,870 | 7,710 | 14,047 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||
Restructuring charges | 184 | ||||||||||||||||||
Oil and Gas [Member] | Operating Segments [Member] | |||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||||||
Product revenue | 141 | 783 | |||||||||||||||||
Product cost of revenue | 66 | ||||||||||||||||||
Product gross profit | 75 | 783 | |||||||||||||||||
License and development revenue | 1,042 | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||
General and administrative | 1,797 | 917 | 1,596 | ||||||||||||||||
Sales and marketing | 4,070 | 5,383 | 1,131 | ||||||||||||||||
Research and development | 6,552 | 8,237 | 2,602 | ||||||||||||||||
Operating expenses | 12,419 | 14,537 | 5,329 | ||||||||||||||||
Operating income (loss) | $ (11,302) | $ (13,754) | $ (5,329) | ||||||||||||||||
[1] | Quarterly results may not add up to annual results due to rounding. | ||||||||||||||||||
[2] | The increase in general and administrative expense in the first and second quarters of 2015 were substantially related to the resignation of our former Chief Executive Officer and the termination of the former Senior Vice-President of Sales. | ||||||||||||||||||
[3] | The increase in general and administrative expense in the fourth quarter of 2014 was substantially related to the termination of the former Senior Vice-President of Sales. | ||||||||||||||||||
[4] | The increase in research and development expense in the fourth quarter of 2014 was related to direct research and development project costs associated with new product initiatives. |
Note 13 - Business Segment an88
Note 13 - Business Segment and Geographic Information (Details) - Depreciation and Amortization Expense by Segment - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 3,838 | $ 4,028 | $ 3,797 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 443 | 405 | 238 |
Water [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 3,192 | 3,518 | 3,533 |
Oil and Gas [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 203 | $ 105 | $ 26 |
Note 13 - Business Segment an89
Note 13 - Business Segment and Geographic Information (Details) - Revenues by Geographic Area - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Note 13 - Business Segment and Geographic Information (Details) - Revenues by Geographic Area [Line Items] | |||||||||||||||||||||
Product revenue (in Dollars) | $ 15,211 | $ 12,112 | $ 10,484 | $ 5,864 | $ 14,780 | $ 5,342 | $ 6,407 | $ 3,897 | $ 43,671 | $ 30,426 | $ 43,045 | ||||||||||
Domestic [Member] | |||||||||||||||||||||
Note 13 - Business Segment and Geographic Information (Details) - Revenues by Geographic Area [Line Items] | |||||||||||||||||||||
Product revenue (in Dollars) | 2,861 | 1,273 | 5,437 | ||||||||||||||||||
International [Member] | |||||||||||||||||||||
Note 13 - Business Segment and Geographic Information (Details) - Revenues by Geographic Area [Line Items] | |||||||||||||||||||||
Product revenue (in Dollars) | $ 40,810 | $ 29,153 | $ 37,608 | ||||||||||||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | |||||||||||||||||||||
Product revenue by country: | |||||||||||||||||||||
Percentage of product revenue | 100.00% | 100.00% | 100.00% | ||||||||||||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | QATAR | |||||||||||||||||||||
Product revenue by country: | |||||||||||||||||||||
Percentage of product revenue | [2] | 13.00% | |||||||||||||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | OMAN | |||||||||||||||||||||
Product revenue by country: | |||||||||||||||||||||
Percentage of product revenue | 12.00% | 2.00% | 11.00% | ||||||||||||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | UNITED ARAB EMIRATES | |||||||||||||||||||||
Product revenue by country: | |||||||||||||||||||||
Percentage of product revenue | 10.00% | 2.00% | 9.00% | ||||||||||||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | CHINA | |||||||||||||||||||||
Product revenue by country: | |||||||||||||||||||||
Percentage of product revenue | 8.00% | 10.00% | 9.00% | ||||||||||||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | UNITED STATES | |||||||||||||||||||||
Product revenue by country: | |||||||||||||||||||||
Percentage of product revenue | 7.00% | 4.00% | 13.00% | ||||||||||||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | EGYPT | |||||||||||||||||||||
Product revenue by country: | |||||||||||||||||||||
Percentage of product revenue | 6.00% | 10.00% | 3.00% | ||||||||||||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | INDIA | |||||||||||||||||||||
Product revenue by country: | |||||||||||||||||||||
Percentage of product revenue | 3.00% | 16.00% | 6.00% | [2] | |||||||||||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | SAUDI ARABIA | |||||||||||||||||||||
Product revenue by country: | |||||||||||||||||||||
Percentage of product revenue | 3.00% | 5.00% | 17.00% | ||||||||||||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | Others [Member] | |||||||||||||||||||||
Product revenue by country: | |||||||||||||||||||||
Percentage of product revenue | [3] | 38.00% | 51.00% | 32.00% | |||||||||||||||||
[1] | Quarterly results may not add up to annual results due to rounding. | ||||||||||||||||||||
[2] | Represents less than 1 % | ||||||||||||||||||||
[3] | Includes remaining countries not separately disclosed. No country in this line item accounted for more than 10% of our product revenue during any of the periods presented. |
Note 14 - Concentrations (Detai
Note 14 - Concentrations (Details) - Accounts Receivable Concentrations - Accounts Receivable [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable | 26.00% | 2.00% | |
Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable | 18.00% | 0.00% | [1] |
Customer C [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable | 9.00% | 32.00% | |
Customer D [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable | 2.00% | 11.00% | |
[1] | None |
Note 14 - Concentrations (Det91
Note 14 - Concentrations (Details) - Revenue Concentrations - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Customer B [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of product revenue | 14.00% | 0.00% | [1] | 15.00% |
Customer C [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of product revenue | 1.00% | 14.00% | 7.00% | |
[1] | Less than 1% |
Note 15 - Restructuring Activ92
Note 15 - Restructuring Activities (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2015 | |
Note 15 - Restructuring Activities (Details) [Line Items] | |||||||
Restructuring Charges | $ 184,000 | ||||||
Gain (Loss) on Disposition of Property Plant Equipment | $ (38,000) | (71,000) | |||||
Restructure of North American Manufacturing Facility [Member] | |||||||
Note 15 - Restructuring Activities (Details) [Line Items] | |||||||
Restructuring Charges | $ 369,000 | $ 3,100,000 | |||||
Restructuring Reserve | $ 0 | $ 0 | |||||
Land and Building [Member] | |||||||
Note 15 - Restructuring Activities (Details) [Line Items] | |||||||
Impairment of Long-Lived Assets to be Disposed of | $ 728,000 | 44,000 | $ 314,000 | ||||
Proceeds from Sale of Property Held-for-sale | $ 1,200,000 | ||||||
Gain (Loss) on Disposition of Property Plant Equipment | (100,000) | ||||||
Land and Building [Member] | Restructure of North American Manufacturing Facility [Member] | |||||||
Note 15 - Restructuring Activities (Details) [Line Items] | |||||||
Impairment of Long-Lived Assets to be Disposed of | $ 44,000 | ||||||
Proceeds from Sale of Property Held-for-sale | 1,200,000 | ||||||
Land and Building [Member] | Restructuring Charges [Member] | Restructure of North American Manufacturing Facility [Member] | |||||||
Note 15 - Restructuring Activities (Details) [Line Items] | |||||||
Gain (Loss) on Disposition of Property Plant Equipment | $ (100,000) |
Note 15 - Restructuring Activ93
Note 15 - Restructuring Activities (Details) - Restructuring Charges $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Restructure of North American Manufacturing Facility [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Losses on disposals/sale and impairment of assets held for sale | $ 184 |
Note 16 - Schlumberger Licens94
Note 16 - Schlumberger License Agreement (Details) $ in Thousands | Oct. 14, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) |
Note 16 - Schlumberger License Agreement (Details) [Line Items] | |||
Licenses Revenue | $ 1,042 | $ 1,042 | |
Schlumberger Technology License Agreement [Member] | |||
Note 16 - Schlumberger License Agreement (Details) [Line Items] | |||
SLB Licence Agreement Term | 15 years | 15 years | |
SLB License Agreement Payments | $ 125,000 | ||
Up Front Non-refundable Payment | $ 75,000 | ||
Number of Milestone Payments | 2 | ||
Licenses Revenue | $ 1,000 | ||
Deferred Revenue | $ 74,000 | 74,000 | |
Revenue Recognition, Milestone Method, Revenue Recognized | 0 | ||
Milestone Payment One Upon Successful Yard Test [Member] | Schlumberger Technology License Agreement [Member] | |||
Note 16 - Schlumberger License Agreement (Details) [Line Items] | |||
SLB Milestone Payment to Be Recieved | $ 25,000 | $ 25,000 | |
Milestone Payment Two Upon Successful Fracing of a Live Well [Member] | Schlumberger Technology License Agreement [Member] | |||
Note 16 - Schlumberger License Agreement (Details) [Line Items] | |||
SLB Milestone Payment to Be Recieved | $ 25,000 |
Note 17 - Supplementary Data 95
Note 17 - Supplementary Data - Quarterly Financial Data (Unaudited) (Details) - Quarterly Financial Data (Unaudited) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||
Quarterly Results of Operations(1) | ||||||||||||||||||||
Product revenue | $ 15,211 | [1] | $ 12,112 | [1] | $ 10,484 | [1] | $ 5,864 | [1] | $ 14,780 | $ 5,342 | $ 6,407 | $ 3,897 | $ 43,671 | $ 30,426 | $ 43,045 | |||||
Product cost of revenue | 6,796 | [1] | 4,948 | [1] | 4,836 | [1] | 2,531 | [1] | 5,722 | 3,007 | 3,332 | 1,652 | 19,111 | 13,713 | 17,323 | |||||
Product gross profit | 8,415 | [1] | 7,164 | [1] | 5,648 | [1] | 3,333 | [1] | 9,058 | 2,335 | 3,075 | 2,245 | 24,560 | 16,713 | 25,722 | |||||
License and development revenue | 1,042 | 1,042 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||
General and administrative | 4,543 | [1],[2] | 3,590 | [1],[2] | 5,362 | [1],[2] | 6,278 | [1],[2] | 6,027 | [3] | 3,078 | [3] | 2,995 | [3] | 2,039 | [3] | 19,773 | 14,139 | 15,192 | |
Sales and marketing | 2,704 | [1] | 2,195 | [1] | 1,994 | [1] | 2,433 | [1] | 2,977 | 2,351 | 2,702 | 2,495 | 9,326 | 10,525 | 7,952 | |||||
Research and development | 2,242 | [1] | 1,474 | [1] | 1,410 | [1] | 2,533 | [1] | 4,601 | [4] | 2,131 | [4] | 1,724 | [4] | 1,234 | [4] | 7,659 | 9,690 | 4,361 | |
Amortization of intangible assets | 159 | [1] | 159 | [1] | 158 | [1] | 159 | [1] | 196 | 216 | 215 | 215 | 635 | 842 | 921 | |||||
Income (loss) from operations | (191) | [1] | (254) | [1] | (3,276) | [1] | (8,070) | [1] | (4,743) | (5,441) | (4,561) | (3,738) | (11,791) | (18,483) | (2,888) | |||||
Net income (loss) | $ 312 | [1] | $ (340) | [1] | $ (3,327) | [1] | $ (8,283) | [1] | $ (4,905) | $ (5,506) | $ (4,611) | $ (3,683) | $ (11,638) | $ (18,705) | $ (3,106) | |||||
Earnings (loss) per share: | ||||||||||||||||||||
Basic (in Dollars per share) | [1] | $ 0.01 | $ (0.01) | $ (0.06) | $ (0.16) | |||||||||||||||
Diluted (in Dollars per share) | [1] | $ 0.01 | $ (0.01) | $ (0.06) | $ (0.16) | |||||||||||||||
Loss per share: | ||||||||||||||||||||
Basic and diluted (in Dollars per share) | $ (0.09) | $ (0.11) | $ (0.09) | $ (0.07) | $ (0.22) | $ (0.36) | $ (0.06) | |||||||||||||
[1] | Quarterly results may not add up to annual results due to rounding. | |||||||||||||||||||
[2] | The increase in general and administrative expense in the first and second quarters of 2015 were substantially related to the resignation of our former Chief Executive Officer and the termination of the former Senior Vice-President of Sales. | |||||||||||||||||||
[3] | The increase in general and administrative expense in the fourth quarter of 2014 was substantially related to the termination of the former Senior Vice-President of Sales. | |||||||||||||||||||
[4] | The increase in research and development expense in the fourth quarter of 2014 was related to direct research and development project costs associated with new product initiatives. |
Schedule II - Valuation and Q96
Schedule II - Valuation and Qualifying Accounts (Details) - Valuation and Qualifying Accounts - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Valuation Allowance [Line Items] | |||||
Balance at Beginning of Period | $ 155 | $ 241 | $ 217 | ||
Additions Charged to Costs and Expenses | 112 | 299 | 346 | ||
Changes in Estimates Charged to Costs and Expenses | [1] | (101) | (383) | (277) | |
Deductions | [2] | (2) | (45) | ||
Balance at End of Period | $ 166 | [2] | $ 155 | $ 241 | |
[1] | Collections of previously reserved accounts | ||||
[2] | Uncollectible accounts written off, net of recoveries |