STR 10-Q 13 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 03, 2015
Document and Entity Information
Entity Registrant Name	STR HOLDINGS, INC.
Entity Central Index Key	1,473,597
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		18,259,107
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 10,428	$ 16,552
Due from Zhenfa (Note 15)	5,260
Accounts receivable, trade, less allowances for doubtful accounts of $575 and $833 in 2015 and 2014, respectively	8,475	12,057
Inventories, net	6,704	8,248
Income tax receivable	8,252	8,252
Prepaid expenses	1,656	1,789
Deferred tax assets	72	72
Other current assets	3,001	2,283
Total current assets	43,848	49,253
Property, plant and equipment, net	20,834	20,195
Other long-term assets	340	354
Total assets	65,022	69,802
CURRENT LIABILITIES
Accounts payable	3,852	2,653
Accrued liabilities (Note 7)	3,540	2,780
Income taxes payable	1,880	1,865
Other current liabilities		204
Total current liabilities	9,272	7,502
Deferred tax liabilities	72	72
Other long-term liabilities	4,605	4,505
Total liabilities	$ 13,949	$ 12,079
COMMITMENTS AND CONTINGENCIES (Note 8)
Stockholders' Equity
Preferred stock, $0.01 par value, 20,000,000 shares authorized; no shares issued and outstanding
Common stock, $0.01 par value, 200,000,000 shares authorized; 18,259,719 and 18,258,479 issued and outstanding, respectively, in 2015 and 18,074,291 and 18,073,051 issued and outstanding, respectively, in 2014	$ 181	$ 181
Treasury stock, at cost	(57)	(57)
Additional paid-in capital	230,628	230,276
Accumulated deficit	(174,557)	(168,618)
Accumulated other comprehensive loss, net	(5,122)	(4,059)
Total stockholders' equity	51,073	57,723
Total liabilities and stockholders' equity	$ 65,022	$ 69,802

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, trade, allowances for doubtful accounts (in dollars)	$ 575	$ 833
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	18,259,719	18,074,291
Common stock, shares outstanding	18,258,479	18,073,051

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net sales	$ 8,515	$ 11,222	$ 15,378	$ 20,558
Cost of sales	8,581	12,406	15,590	22,423
Gross loss	(66)	(1,184)	(212)	(1,865)
Selling, general and administrative expenses	2,808	2,366	5,390	5,341
Research and development expense	360	295	712	551
(Recovery) provision for bad debt expense	(189)	7	(232)	31
Operating loss	(3,045)	(3,852)	(6,082)	(7,788)
Interest (expense) income , net	(52)	16	(48)	20
Other income, net (Note 6 and Note 8)		2,766		2,766
Gain (loss) on disposal of fixed assets		2		(431)
Foreign currency transaction (loss) gain	(163)	24	317	(114)
Loss from continuing operations before income tax expense	(3,260)	(1,044)	(5,813)	(5,547)
Income tax expense from continuing operations	53	596	106	735
Net loss from continuing operations	(3,313)	(1,640)	(5,919)	(6,282)
Net loss	(3,313)	(1,640)	(5,919)	(6,282)
Other comprehensive income (loss):
Foreign currency translation (net of tax effect of $0, $(34), $0 and $(24), respectively)	458	(66)	(1,063)	(212)
Other comprehensive income (loss)	458	(66)	(1,063)	(212)
Comprehensive loss	$ (2,855)	$ (1,706)	$ (6,982)	$ (6,494)
Net loss per share (Note 4):
Basic from continuing operations	$ (0.18)	$ (0.19)	$ (0.33)	$ (0.52)
Basic	(0.18)	(0.19)	(0.33)	(0.52)
Diluted from continuing operations	(0.18)	(0.19)	(0.33)	(0.52)
Diluted	$ (0.18)	$ (0.19)	$ (0.33)	$ (0.52)
Weighted-average shares outstanding (Note 4):
Basic	18,089,137	8,756,022	18,077,142	12,084,369
Diluted from continuing operations	18,089,137	8,756,022	18,077,142	12,084,369

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Foreign currency translation, tax effect	$ 0	$ (34)	$ 0	$ (24)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
OPERATING ACTIVITIES
Net loss	$ (5,919)	$ (6,282)
Net loss from continuing operations	(5,919)	(6,282)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	1,002	1,026
Stock-based compensation expense	375	701
Non-cash reversal of loss contingency (Note 8)		(4,089)
Non-cash reversal of restructuring accrual (Note 9)		(795)
Loss on disposal of property, plant and equipment		431
(Recovery) provision for bad debt expense	(232)	31
Loss on reclassification on held for sale assets		1,323
Income tax receivable non-cash		(1,243)
Deferred income tax expense		2,088
Changes in operating assets and liabilities:
Accounts receivable	(3,938)	(4,039)
Due from Zhenfa	2,227
Income tax receivable		6,243
Inventories, net	1,429	(614)
Other current assets	(271)	(337)
Accounts payable	1,272	1,636
Accrued liabilities	(825)	(374)
Income taxes payable	106	5
Other, net	1,090	(831)
Net cash used in continuing operations	(3,684)	(5,120)
Net cash provided by discontinued operations	9
Total net cash used in operating activities	(3,675)	(5,120)
INVESTING ACTIVITIES
Capital investments	(2,277)	(1,720)
Proceeds from sale of fixed assets		1,956
Net cash (used in) provided by continuing operations	(2,277)	236
Total net cash (used in) provided by investing activities	(2,277)	236
FINANCING ACTIVITIES
Repurchase of common stock in tender offer		(24,042)
Tender offer fees		(1,984)
Special dividend	(20)
Common stock issuance costs	(4)
Proceeds from common stock issued under employee stock purchase plan	1	1
Net cash used in continuing operations	(23)	(26,025)
Total net cash used in financing activities	(23)	(26,025)
Effect of exchange rate changes on cash	(149)	(45)
Net Change in cash and cash equivalents	(6,124)	(30,954)
Cash and cash equivalents, beginning of period	16,552	58,173
Cash and cash equivalents, end of period	$ 10,428	27,219
SUPPLEMENTAL DISCOLSURE OF NON-CASH INVESTING ACTIVITIES
Proceeds to be received from sale of idle fixed assets		$ 537

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2015
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 1—BASIS OF PRESENTATION The accompanying condensed consolidated financial statements and the related interim information contained within the notes to the condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information and quarterly reports on the Form 10-Q. Accordingly, they do not include all of the information and the notes required for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2014, included in STR Holdings, Inc.’s (the “Company”) Form 10-K filed with the SEC on March 26, 2015. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and in the opinion of management, reflect all adjustments, consisting of only normal and recurring adjustments, necessary for the fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented. The results for the interim periods presented are not necessarily indicative of future results. The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. On January 30, 2015, the Company filed a Certificate of Amendment to its Restated Certificate of Incorporation in order to effect a one-for-three reverse split of its common stock and its common stock began trading on the New York Stock Exchange (“NYSE”) on a split-adjusted basis on February 2, 2015. No fractional shares were issued in connection with the reverse stock split. As a result of the reverse stock split, the number of issued and outstanding shares of its common stock was reduced to 18,074,291 and 18,073,051, respectively, at December 31, 2014. The change in the number of shares resulting from the reverse stock split has been applied retroactively to all shares and per share amounts presented in the condensed consolidated financial statements and accompanying notes. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from management’s estimates.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2015
RECENT ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 2—RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (Topic 606). This ASU is intended to clarify the principles for recognizing revenue by removing inconsistencies and weaknesses in revenue requirements; providing a more robust framework for addressing revenue issues; improving comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; and providing more useful information to users of financial statements through improved revenue disclosure requirements. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2016. The Company is currently evaluating the new guidance to determine the impact it may have to its consolidated financial statements. In February 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-02, “Consolidation (Topic 810) Amendments to the Consolidation Analysis.” The amendments contained in this update affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The amendments in this update affect limited partnerships and similar legal entities, evaluating fees paid to a decision maker or a service provider as a variable interest, the effect of fee arrangements on the primary beneficiary determination, the effect of related parties on the primary beneficiary determination and certain investment funds. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company is currently evaluating the new guidance to determine the impact it may have to its consolidated financial statements.

TRANSACTION WITH ZHEN FA NEW EN

TRANSACTION WITH ZHEN FA NEW ENERGY (U.S.) CO., LTD. AND ZHENFA ENERGY GROUP CO., LTD.	6 Months Ended
	Jun. 30, 2015
TRANSACTION WITH ZHEN FA NEW ENERGY (U.S.) CO., LTD. AND ZHENFA ENERGY GROUP CO., LTD.
TRANSACTION WITH ZHEN FA NEW ENERGY (U.S.) CO., LTD. AND ZHENFA ENERGY GROUP CO., LTD.	NOTE 3—TRANSACTION WITH ZHEN FA NEW ENERGY (U.S.) CO., LTD. AND ZHENFA ENERGY GROUP CO., LTD. The Company has entered into certain definitive agreements with Zhenfa Energy Group Co., Ltd., a Chinese limited liability company (“Zhenfa”) and its indirect wholly-owned subsidiary, Zhen Fa New Energy (U.S.) Co., Ltd., a Nevada corporation (the “Purchaser”). Purchase Agreement and Special Dividend On August 11, 2014, the Company entered into a Stock Purchase Agreement (the “Purchase Agreement”) with the Purchaser, pursuant to which the Company agreed to issue and sell to the Purchaser, and the Purchaser agreed to purchase from the Company, an aggregate of 9,210,710 shares (the “Purchased Shares”) of its authorized but unissued common stock, par value $0.01 per share, to the Purchaser for an aggregate purchase price of approximately $21,664 (the “Purchase Price”), or $2.35 per share (the “Transaction”). The Purchased Shares represented approximately 51% of the Company’s outstanding shares of common stock upon the closing of the Transaction , which occurred on December 15, 2014 (the “Closing Date”). In connection with the Closing, the Company declared a special dividend (the “Special Dividend”) on December 11, 2014 to be paid to all of its stockholders of record (other than the Purchaser) in an amount equal to $2.55 per common share on January 2, 2015. The Company also entered into a guarantee agreement (the “Guarantee Agreement”) with Zhenfa pursuant to which Zhenfa agreed to guarantee all obligations of the Purchaser under the Purchase Agreement, including but not limited to, the payment of the Purchase Price and the performance of all covenants and agreements of the Purchaser in the Purchase Agreement. Sales Service Agreement In connection with the execution of the Purchase Agreement, Specialized Technology Resources, Inc., an operating subsidiary of the Company, entered into a Sales Service Agreement with Zhenfa whereby Zhenfa agreed, among other things, to assist the Company in a number of endeavors, including, without limitation, marketing and selling the Company’s products in China, acquiring local raw materials, hiring and training personnel in China, and complying with Chinese law. Pursuant to the Sales Service Agreement, Zhenfa has also provided the Company with an option to lease a manufacturing facility owned by Zhenfa. Such facility will be at least 107,639 square feet and will be rent free for a period of at least five years. The Sales Service Agreement further provides that if the Company leases the facility, Zhenfa will provide an option to extend the lease at 50% of market rent (as to be determined) for a second five year term. The Company has not exercised this option as of June 30, 2015. The Sales Service Agreement became effective on the Closing Date, has an initial term of two years following the Closing Date and is automatically extended for one year periods unless terminated earlier by either party. The Sales Service Agreement may also be terminated by either party at such time as Zhenfa and its affiliates own less than 10% of the outstanding common stock of the Company. For further information on the Stock Purchase Agreement, the Sales Service Agreement, the Guarantee Agreement, Zhenfa and the Transaction, refer to the proxy statement filed with the SEC on October 8, 2014.

LOSS PER SHARE

LOSS PER SHARE	6 Months Ended
	Jun. 30, 2015
LOSS PER SHARE
LOSS PER SHARE	NOTE 4—LOSS PER SHARE On January 30, 2015, the Company filed a Certificate of Amendment to its Restated Certificate of Incorporation in order to effect a one-for-three reverse split of its common stock and its common stock began trading on the NYSE on a split-adjusted basis on February 2, 2015. No fractional shares were issued in connection with the reverse stock split. The change in the number of shares resulting from the reverse stock split has been applied retroactively to all shares and per share amounts presented in the condensed consolidated financial statements and accompanying notes, unless otherwise noted. As a result of the reverse stock split, the number of issued and outstanding shares of its common stock was reduced to 18,074,291 and 18,073,051, respectively, at December 31, 2014. The calculation of basic and diluted loss per share for the periods presented is as follows: The calculation of basic and diluted net loss per share for the periods presented is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Basic and diluted net loss per share Numerator: Net loss from continuing operations $ ) $ ) $ ) $ ) Net loss from discontinued operations — — — — Net loss $ ) $ ) $ ) $ ) Denominator: Weighted—average shares outstanding Add: Dilutive effect of stock options — — — — Dilutive effect of restricted common stock — — — — Weighted—average shares outstanding with dilution Net loss per share: Basic from continuing operations $ ) $ ) $ ) $ ) Basic from discontinued operations — — — — Basic $ ) $ ) $ ) $ ) Diluted from continuing operations $ ) $ ) $ ) $ ) Diluted from discontinued operations — — — — Diluted $ ) $ ) $ ) $ ) On March 7, 2014, the Company repurchased 5,203,986 shares of its common shares at $4.62 per share in connection with a modified “Dutch Auction” tender offer. On August 11, 2014, pursuant to the terms of the Purchase Agreement, the Company issued to the Purchaser an aggregate of 9,210,710 shares of its authorized but unissued common stock, par value $0.01 per share, for an aggregate purchase price of approximately $21,664, or $2.35 per share. The Purchased Shares represented approximately 51% of the Company’s outstanding shares on the Closing Date . Due to the loss from continuing operations for the three months ended June 30, 2015 and 2014, diluted weighted-average common shares outstanding does not include any stock options or 509 and 0 shares of unvested restricted common stock, respectively as these potential awards do not share in any net loss generated by the Company and are anti-dilutive. Due to the loss from continuing operations for the six months ended June 30, 2015 and 2014, diluted weighted-average common shares outstanding does not include any stock options or any shares of unvested restricted common stock as these potential awards do not share in any net loss generated by the Company and are anti-dilutive. Since the effect would be anti-dilutive, there were 20 and 15 shares of common stock issued under the Employee Stock Purchase Plan (“ESPP”) that were not included in the computation of diluted weighted-average shares outstanding for both the three and six months ended June 30, 2015, respectively. Since the effect would be anti-dilutive, there were 3 shares of common stock issued under the ESPP that were not included in the computation of diluted weighted-average shares outstanding for the three and six months ended June 30, 2014. Since the effect would be anti-dilutive, there were 1,964,665 stock options outstanding that were not included in the computation of diluted weighted-average shares outstanding for both the three and six months ended June 30, 2015, respectively. Since the effect would be anti-dilutive, there were 3,654,963 stock options outstanding that were not included in the computation of diluted weighted-average shares outstanding for both the three and six months ended June 30, 2014, respectively.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2015
INVENTORIES
INVENTORIES	NOTE 5—INVENTORIES Inventories consist of the following: June 30, 2015 December 31, 2014 Finished goods $ $ Raw materials Reserve ) ) Inventories, net $ $

LONG-LIVED ASSETS

LONG-LIVED ASSETS	6 Months Ended
	Jun. 30, 2015
LONG-LIVED ASSETS .
LONG-LIVED ASSETS	NOTE 6—LONG-LIVED ASSETS Impairment Testing In accordance with ASC 360-Property, Plant and Equipment, the Company assesses the impairment of its long-lived assets whenever changes in events or circumstances indicated that the carrying value of such assets may not be recoverable. During each reporting period, the Company assessed if the following factors were present which would cause an impairment review: overall negative solar industry conditions; a significant or prolonged decrease in net sales that were generated under its trademarks; loss of a significant customer or a reduction in demand for customers’ products; a significant adverse change in the extent to or manner in which the Company used its trademarks or proprietary technology; such assets becoming obsolete due to new technology or manufacturing processes entering the markets or an adverse change in legal factors; and the market capitalization of the Company’s common stock. At December 31, 2014, the Company recorded valuation allowances against its deferred tax assets. As such, the Company determined this to be an indicator to test its long-lived assets for impairment. The valuation allowances were recorded since the Company had three consecutive years of taxable losses and it determined that its history of actual net losses was negative evidence that should be given more weight than future projections. As such, the Company determined the recording of valuation allowances to be an indicator to test its long-lived assets, which consist solely of property, plant and equipment, for impairment. The Company concluded that no impairment existed as the sum of the undiscounted expected future cash flows exceeded the carrying value of its asset group which is its reporting unit ($57,723 as of December 31, 2014) by $54,854. The key assumptions driving the undiscounted cash flows were the forecasted sales growth rate and EBITDA margin. In addition to assessing the undiscounted cash flows, the Company also assessed the specific recoverability of its property, plant and equipment using updated real estate appraisals and other data for its other fixed assets, mainly production equipment. Based upon this analysis, the Company believes its property, plant and equipment’s carrying value was recoverable and depreciable lives were appropriate as of December 31, 2014. Due to its decision to close its Malaysia facility, the Company assessed the specific recoverability of its property, plant and equipment using updated real estate appraisals and other data for its other fixed assets, mainly production equipment. Based upon this analysis, the Company believes its property, plant and equipment’s carrying value was recoverable and depreciable lives were appropriate as of June 30, 2015. Sale of China Land Use Right In March 2014, the Company sold its land use rights for a parcel of land located in Suzhou, China to the Administration Committee of Changkun Industrial Government for $1,924. The Company recorded a loss on disposal of fixed assets for the sale of this asset of $435. Sale of East Windsor, Connecticut Facility In June 2014, the Company received a signed letter of intent from a potential buyer for its East Windsor, Connecticut facility for approximately $4,750. In July 2014, the Company executed the formal purchase and sale agreement and in October 2014 the sale of the property was finalized. The sale of the property was part of the Company’s focus to reduce its footprint and operating costs. In accordance with ASC 360-Property, Plant and Equipment, the Company assessed the asset group attributed to the sale for impairment. As a result of this analysis a loss on reclassification of $1,323 was recorded in the Company’s Condensed Consolidated Statement of Comprehensive Loss and the assets were reclassified out of property, plant and equipment on the Condensed Consolidated Balance Sheet as of June 30, 2014 and classified as Assets Held for Sale.

ACCRUED LIABILITIES

ACCRUED LIABILITIES	6 Months Ended
	Jun. 30, 2015
ACCRUED LIABILITIES.
ACCRUED LIABILITIES	NOTE 7—ACCRUED LIABILITIES Accrued liabilities consist of the following: June 30, 2015 December 31, 2014 Product performance (Note 8) $ $ Salary and wages Accrued bonus — Professional fees Restructuring severance and benefits (Note 9) Environmental (Note 8) Accrued franchise tax Client deposits (Note 15) — Other Total Accrued liabilities $ $

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 8—COMMITMENTS AND CONTINGENCIES Litigation The Company is a party to claims and litigation in the normal course of its operations. There have been no material developments in the six months ended June 30, 2015 in the legal proceedings identified in Part I, Item 3 of the Company’s Annual Report on Form 10 - K for the year ended December 31, 2014. In addition, there were no new material legal proceedings during the quarter ended June 30, 2015. Product Performance The Company provides a short-term warranty that it has manufactured its products to the Company’s specifications. On limited occasions, the Company incurs costs to service its products in connection with specific product performance matters that do not meet the Company’s specifications. Anticipated future costs are recorded as part of cost of sales and accrued liabilities for specific product performance matters when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. In isolated occasions, the Company has also offered limited short-term performance warranties relating to its encapsulants not causing module power loss. The Company performs long-term performance testing of its encapsulants during product development prior to launching new product introductions and in customer certification of its products prior to entering into mass production. The Company has operated its solar business since the 1970s and over 20 GW worth of solar modules utilizing its encapsulants have been installed in the field with no reported module power performance issues caused by the Company’s encapsulants and no related warranty claims to-date. Based on this fact pattern, the Company has not accrued any warranty liability associated for this potential liability as it is remote of occurrence. If the Company was to ever receive a warranty claim for such matter, the Company would assess the need for a warranty accrual at that time. The Company has accrued for specific product performance matters incurred in 2015 and 2014 that are based on management’s best estimate of ultimate expenditures that it may incur for such items. The following table summarizes the Company’s product performance liability that is recorded in accrued liabilities in the condensed consolidated balance sheets: June 30, 2015 June 30, 2014 Balance as of beginning of year $ $ Additions Reversals — ) Reductions ) ) Foreign exchange impact — ) Balance as of end of period $ $ During the second quarter of 2014, the Company reversed $4,089 of an accrual related to a quality claim by one of the Company’s customers in connection with a non-encapsulant product that the Company purchased from a vendor in 2005 and 2006 and resold. The reversal was recorded in other income, net in the consolidated statements of comprehensive loss for the six months ended June 30, 2014. The Company stopped selling this product in 2006. The Company concluded that the settlement of this contingency was no longer probable and was remote. Environmental During 2010, the Company performed a Phase II environmental site assessment at its 10 Water Street, Enfield, Connecticut location. During its investigation, the site was found to contain a presence of volatile organic compounds. The Company has been in contact with the Department of Environmental Protection and has engaged a licensed contractor to remediate this circumstance. Based on ASC 450-Contingencies, the Company has accrued the estimated cost to remediate. The following table summarizes the Company’s environmental liability that is recorded in accrued liabilities in the condensed consolidated balance sheets: June 30, 2015 June 30, 2014 Balance as of beginning of year $ $ Additions — — Reductions — — Balance as of end of period $ $ Spanish Grants The Company’s Spanish subsidiary had received financial grants for certain fixed assets that requires the Company’s Spanish subsidiary to maintain a specific level of employment and to continue to operate certain fixed assets. In the third quarter of 2013, the Company’s Spanish subsidiary repaid $1,558 of grants that were accrued in 2012 in conjunction with cost reduction measures that failed to comply with employment level requirements for certain grants. During the fourth quarter of 2014, $974 of grants were reversed to other income and SG&A, as the Company met all of the grant requirements. If the Company’s Spanish subsidiary fails to satisfy one or more grant requirements, such subsidiary will not qualify for future incentives and may be required to refund a portion of previously granted incentives. If the Company’s Spanish subsidiary fails to comply with its obligations under the grants, or the respective government agencies determine that the Company’s Spanish subsidiary has not complied with the requirements of all of its grants, the Company could be required to make additional potential repayments ranging from zero to $4,000. Any such additional potential repayment could have a material adverse effect on the Company’s results of operations, prospects, cash flows and financial condition.

COST - REDUCTION ACTIONS

COST - REDUCTION ACTIONS	6 Months Ended
	Jun. 30, 2015
COST-REDUCTION ACTIONS
COST-REDUCTION ACTIONS	NOTE 9—COST - REDUCTION ACTIONS In light of the continued shift in module manufacturing to mainland China, and the requirement within this growing market for just-in-time delivery, the Company announced plans in 2013 to cease production at its Johor, Malaysia facility in 2014. In conjunction with the anticipated closure, the Company recognized severance and other benefits of $386 in cost of sales and $377 in selling, general and administrative expenses in 2013. During 2014, the Company reassessed the strategic benefit of its Malaysia facility and decided to continue production as its Johor, Malaysia. As such, the Company reversed restructuring accruals recorded in 2013 during the second quarter of 2014 resulting in a positive benefit to cost of sales of $407 and selling, general and administrative expense of $388. On July 27, 2015, the Company again reassessed the continued operations of its Malaysia facility and determined to close its Malaysia facility, effective August 2, 2015. The activity during the year ended December 31, 2014 related to cash settlements of previous accrued amounts, minor adjustments for cost reduction actions initiated in 2013 and the non-cash reversal of prior accruals relating to the Malaysia facility. In addition, during the fourth quarter of 2014, the Company received notification that it fulfilled the necessary Spanish grant requirements provided by the government and in turn reversed $250 of an accrual initially recorded in 2012. The restructuring accrual consists of $30 for severance and benefits as of June 30, 2015. A rollforward of the severance and other exit cost accrual activity was as follows: June 30, 2015 June 30, 2014 Balance as of beginning of year $ $ Additions Reversals — ) Reductions ) ) Balance as of end of period $ $

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 10—FAIR VALUE MEASUREMENTS The Company measures certain financial assets and liabilities at fair value on a recurring basis in the financial statements. The hierarchy ranks the quality and reliability of inputs, or assumptions, used in the determination of fair value and requires financial assets and liabilities carried at fair value to be classified and disclosed in one of the following three categories: · Level 1-quoted prices in active markets for identical assets and liabilities; · Level 2-unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability; and · Level 3-unobservable inputs that are not corroborated by market data. The following table provides the fair value measurements of applicable financial assets and liabilities as of June 30, 2015: Financial assets and liabilities at fair value as of June 30, 2015 Level 1 Level 2 Level 3 Money market funds (1) $ $ — $ — Deferred compensation (2) $ — $ — $ — Total $ $ — $ — The following table provides the fair value measurements of applicable financial assets and liabilities as of December 31, 2014: Financial assets and liabilities at fair value as of December 31, 2014 Level 1 Level 2 Level 3 Money market funds (1) $ $ — $ — Deferred compensation (2) $ — $ ) $ — Total $ $ ) $ — (1) Included in cash and cash equivalents on the Company’s Condensed Consolidated Balance Sheets. The carrying amount of money market funds is a reasonable estimate of fair value. (2) Included in other long-term liabilities on the Company’s Condensed Consolidated Balance Sheets. Refer to Note 13 for further information.

INCOME TAXES FROM CONTINUING OP

INCOME TAXES FROM CONTINUING OPERATIONS	6 Months Ended
	Jun. 30, 2015
INCOME TAXES FROM CONTINUING OPERATIONS
INCOME TAXES FROM CONTINUING OPERATIONS	NOTE 11—INCOME TAXES FROM CONTINUING OPERATIONS There is no provision or benefit for federal, foreign or state income taxes for the three and six months ended June 30, 2015 other than income tax expense resulting from interest on uncertain tax positions of $53 and $106, respectively. The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets. Based on the Company’s history of operating losses, the Company has concluded that it is more likely than not that the benefit of its deferred tax assets will not be realized. Accordingly, the Company has provided a full valuation allowance for deferred tax assets as of June 30, 2015 and December 31, 2014. During the three and six months ended June 30, 2014, the Company recorded an income tax expense of $596 and $735, respectively resulting in an effective tax rate of (57.1)% and (13.3)%, respectively. The projected annual effective tax rate excluding discrete items primarily related to disallowed foreign losses and stock option cancellations was a benefit of 34.7% as compared to the U.S. federal statutory rate of 35.0%. During the three months ended June 30, 2014, the Company recorded a $448 accrual for potential adjustments relating to a state tax audit and had $563 of disallowed foreign losses. The six months ended June 30, 2014 was also negatively impacted from a $1,053 non-cash deferred tax asset write-off associated with stock option cancellations and $605 of additional disallowed foreign losses. The Company is currently under routine examination in the United States by the Internal Revenue Service for tax year 2014 in which the Company has claimed a $ 8,252 income tax refund.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2015
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	NOTE 12—STOCKHOLDERS’ EQUITY Changes in stockholders’ equity for the six months ended June 30, 2015 are as follows: Common Stock Treasury Stock Additional Paid—In Accumulated Accumulated Other Comprehensive Total Stockholders’ Issued Amount Acquired Amount Capital Deficit Loss Equity Balance at December 31, 2014 $ $ ) $ $ ) $ ) $ Stock-based compensation — — — — — Employee stock purchase plan — — — — — Common stock issuance to Zhenfa, net ) ) Special dividend — — — — — ) — ) Fractional shares retired resulting from split ) — — — — — — — Net loss — — — — — ) — ) Foreign currency translation, net of tax — — — — — — ) ) Balance at June 30, 2015 $ $ ) $ $ ) $ ) $ Preferred Stock The Company’s Board of Directors has authorized 20,000,000 shares of preferred stock, $0.01 par value. At June 30, 2015, there were no shares issued or outstanding. Common Stock Reverse Stock Split As more fully described in Note 1, the Company effected a one-for-three reverse split of its common stock on January 30, 2015. The Company’s Board of Directors has authorized 200,000,000 shares of common stock, $0.01 par value. At June 30, 2015, there were 18,259,719 shares issued and 18,258,479 shares outstanding of common stock. Each share of common stock is entitled to one vote per share. Included in the 18,258,479 shares outstanding are 18,103,306 shares of common stock and 155,173 shares of unvested restricted common stock. Treasury Stock At June 30, 2015, there were 1,240 shares held in treasury that were purchased at a cost of $57.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2015
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 13—STOCK-BASED COMPENSATION On November 6, 2009, the Company’s Board of Directors approved the Company’s 2009 Equity Incentive Plan (the “2009 Plan”), which became effective on the same day. Effective May 14, 2013, the 2009 Plan was amended to increase the number of shares subject to the 2009 Plan. As a result, a total of 4,133,133 shares of common stock are reserved for issuance under the 2009 Plan. The 2009 Plan is administered by the Board of Directors or any committee designated by the Board of Directors, which has the authority to designate participants and determine the number and type of awards to be granted, the time at which awards are exercisable, the method of payment and any other terms or conditions of the awards. The 2009 Plan provides for the grant of stock options, including incentive stock options and nonqualified stock options, collectively, “options,” stock appreciation rights, shares of restricted stock, or “restricted stock,” rights to dividend equivalents and other stock-based awards, collectively, the “awards.” The Board of Directors or the committee will, with regard to each award, determine the terms and conditions of the award, including the number of shares subject to the award, the vesting terms of the award, and the purchase price for the award. Awards may be made in assumption of or in substitution for outstanding awards previously granted by the Company or its affiliates, or a company acquired by the Company or with which it combines. Options outstanding generally vest over a three year period and expire ten years from date of grant. There were 1,365,452 shares available for grant under the 2009 Plan as of June 30, 2015. During the first quarter of 2015, the Company granted 1,964,665 stock options of the Company’s common stock at an exercise price of $1.52 to executives and key employees under the 2009 Plan. The award vests one-third on each annual anniversary of the grant. In the event of a sale of all or substantially all of the Company’s assets or equity resulting in a change of control, unvested awards granted to non-executive employees will be cancelled while 12 months of unvested awards granted to executive officers will vest. However, if the acquirer is another public company that offers a similar option program, all employees will receive options under the acquirer’s plan. The following table presents the assumptions used to estimate the fair values of the stock options granted during the first quarter of 2015: Three Months Ended March 31, 2015 Risk-free interest rate % Expected volatility % Expected life (in years) Forfeiture rate % Dividend yield — Weighted-average estimated fair value of options granted during the period $ The fair value of the stock options issued were determined by the Company using the Black-Scholes option pricing model. The Company’s assumptions about stock-price volatility were based exclusively on the implied volatilities of the Company’s common stock and those of other publicly traded options to buy stock with contractual terms closest to the expected life of options granted to the Company’s employees. The expected term represents the estimated time until employee exercise is estimated to occur taking into account vesting schedules and using the Hull-White model. The risk-free interest rate for periods within the contractual life of the award is based on the U.S. Treasury 10 year zero-coupon strip yield in effect at the time of grant. The expected dividend yield was based on the assumption that no dividends are expected to be distributed in the near future. The following table summarizes the options activity under the Company’s 2009 Plan for the six months ended June 30, 2015: Options Outstanding Number of Shares Weighted— Average Exercise Price Weighted— Average Remaining Contractual Term (in years) Weighted— Average Grant—Date Fair Value Aggregate Intrinsic Value(1) Balance at December 31, 2014 — $ — — $ — $ — Options granted $ — $ $ ) Exercised — $ — — $ — $ — Canceled/forfeited — $ — — $ — $ — Balance at June 30, 2015 $ $ $ — Vested and exercisable as of June 30, 2015 — $ — — $ — $ — Vested and exercisable as of June 30, 2015 and expected to vest thereafter $ $ $ ) (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $1.19 of the Company’s common stock on June 30, 2015. As of June 30, 2015, there was $1,675 of unrecognized compensation cost related to outstanding employee stock option awards. This amount is expected to be recognized over a weighted-average remaining vesting period of 1.4 years. To the extent the actual forfeiture rate is different from what the Company has anticipated, stock-based compensation related to these awards will be different from its expectations. The following table summarizes the restricted common stock activity of the Company for the six months ended June 30, 2015: Unvested Restricted Shares Number of Shares Weighted— Average Grant—Date Fair Value Unvested at December 31, 2014 $ — Granted $ — Vested ) $ Canceled — $ — Unvested at June 30, 2015 $ — Expected to vest after June 30, 2015 $ — As of June 30, 2015, there was $150 of unrecognized compensation cost related to employee and director unvested restricted common stock. This amount is expected to be recognized over a weighted-average remaining vesting period of less than one year. To the extent the actual forfeiture rate is different from what the Company has anticipated, stock-based compensation related to these awards will be different from its expectations. On November 9, 2010, the Company’s Board of Directors adopted the ESPP and reserved 166,667 shares of the Company’s common stock for issuance thereunder. The ESPP was made effective upon its approval by the votes of the Company’s stockholders on May 24, 2011 during the Company’s annual meeting for the purpose of qualifying such shares for special tax treatment under Section 423 of the Internal Revenue Code of 1986, as amended. Under the ESPP, eligible employees may use payroll withholdings to purchase shares of the Company’s common stock at a 10% discount. The Company has established four offering periods during the year in which eligible employees may participate. The Company purchases the number of required shares each period based upon the employees’ contribution plus the 10% discount. The number of shares purchased multiplied by the 10% discount is recorded by the Company as stock-based compensation. The Company recorded less than $1 in stock-based compensation expense relating to the ESPP for the three and six months ended June 30, 2015, respectively. The Company recorded $1 in stock-based compensation expense relating to the ESPP for the three and six months ended June 30, 2014, respectively. There were 165,720 shares available for purchase under the ESPP as of June 30, 2015. Deferred Compensation The Company had a deferred compensation arrangement with certain members of management, including Robert S. Yorgensen, that stated upon the earlier of December 31, 2015, sale of the Company (which included a change of control transaction), or termination of employment for any reason, the members were entitled to bonus payments based upon a formula set forth in their respective employment agreements. The payments were tied to distribution amounts they would have received with respect to their former ownership in the predecessor Company if the assets were sold at fair market value compared to the value of the Company’s stock price. The amount of the potential bonus payment was capped at $1,180. In accordance with ASC 718-30, the obligation should have been remeasured quarterly at fair value. The Company determined fair value using observable current market information as of the reporting date. The most significant input to determine the fair value was determined to be the Company’s common stock price which is a Level 2 input. Based upon the difference of the floor in the agreements and the effective valuation of the Transaction of $4.80 per share for Mr. Yorgensen, $204 of accrued compensation was paid out during the first quarter of 2015. As of June 30, 2015, no deferred compensation arrangements exist. Stock-based compensation expense was included in the following Condensed Consolidated Statements of Comprehensive Loss categories for continuing operations: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Cost of sales $ — $ — $ — $ — Selling, general and administrative expense $ $ $ $ Research and development expense $ — $ — $ — $ — Total stock-based compensation expense $ $ $ $ Total option exercise recognized tax benefit $ — $ — $ — $ —

REPORTABLE SEGMENT AND GEOGRAPH

REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION	6 Months Ended
	Jun. 30, 2015
REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION
REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION	NOTE 14—REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION ASC 280-10-50 Disclosure about Segment of an Enterprise and Related Information establishes standards for the manner in which companies report information about operating segments, products, geographic areas and major customers. The method of determining what information to report is based on the way that management organizes the operating segment within the enterprise for making operating decisions and assessing financial performance. Since the Company has one product line, sells to global customers in one industry, procures raw materials from similar vendors and expects similar long-term economic characteristics, the Company has one reporting segment and the information as to its operations is set forth below. Adjusted EBITDA is the main metric used by the management team and the Board of Directors to plan, forecast and review the Company’s segment performance. Adjusted EBITDA represents net loss from continuing operations before interest income, income tax expense, depreciation, stock-based compensation expense, restructuring and certain non-recurring income and expenses from the results of operations. The following tables set forth information about the Company’s operations by its reportable segment and by geographic area: Operations by Reportable Segment Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Reconciliation of Adjusted EBITDA to Net Loss from Continuing Operations Adjusted EBITDA $ ) $ ) $ ) $ ) Depreciation ) ) ) ) Interest (expense) income, net ) ) Income tax expense ) ) ) ) Restructuring ) Stock—based compensation ) ) ) ) Non-cash reversal of loss contingency (Note 9) — — Loss on reclassification of held for sale assets — ) — ) (Gain) loss on disposal of fixed assets — — ) Net Loss from Continuing Operations $ ) $ ) $ ) $ ) Operations by Geographic Area Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net Sales Spain $ $ $ $ Malaysia United States China Total Net Sales $ $ $ $ Long-Lived Assets by Geographic Area June 30, December 31, 2015 2014 Long-Lived Assets United States $ $ Malaysia Spain China Hong Kong — Total Long - Lived Assets $ $ Foreign sales are based on the country in which the sales originate. Net sales to three of the Company’s major customers, that exceeded 10% of the Company’s consolidated net sales for the three months ended June 30, 2015, were $3,720. Net sales to two of the Company’s major customers, that exceeded 10% of the Company’s consolidated net sales for the six months ended June 30, 2015, were $6,121. Net sales to one of the Company’s major customers that exceeded 10% of the Company’s consolidated net sales for the three and six months ended June 30, 2014 were $4,396 and $8,356, respectively. Accounts receivable from the two customers amounted to $2,084 and accounts receivable from the one customer amounted to $6,334 as of June 30, 2015 and December 31, 2014, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2015
RELATED PARTY TRANSACTIONS
RELATED PARTIES	NOTE 15—RELATED PARTY TRANSACTIONS Huhui Supply Agreement The Company’s Chinese subsidiary, Specialized Technology Resources Solar (Suzhou) Co. Ltd. (“STR China”) entered into a supply agreement (the “Huhui Supply Agreement”) dated as of December 31, 2014 with Zhangjiagang Huhui Segpv Co. Ltd (“Huhui”), an affiliate of Zhenfa. Pursuant to the Huhui Supply Agreement, STR China has agreed to supply Huhui, a solar module manufacturer, with the Company’s encapsulant products and Huhui has agreed (i) to purchase not less than 535 MW worth of encapsulants (the “Minimum Amount”) during each contract year, (ii) pay the Company a deposit equal to 10% of the Minimum Amount, and (iii) not to purchase encapsulant products from other encapsulant manufacturers. The term of Huhui Supply Agreement terminates on December 31, 2015 and shall automatically renew for additional one year terms if either party fails to notify the other party at least 90 days prior to the end of the then current term that it is electing to terminate the agreement. The Company believes that the terms and conditions set forth in the Huhui Agreement are fair and reasonable to the Company. The Company received $1,148 as a client deposit from Huhui during the six months ended June 30, 2015 which is included in accrued liabilities on the Condensed Consolidated Balance Sheets. During the three and six months ended June 30, 2015 the Company recorded $58 and $63 in net sales to this customer, respectively. Module-for-Encapsulant Swap Transction During the second quarter, the Company entered into a module-for-encapsulant swap transaction with Zhenfa and Zhejiang ReneSola Jiangsu Co., Ltd. (“ReneSola”) to settle outstanding accounts receivable due from ReneSola. As part of this three-party transaction, the Company has agreed to accept solar modules as settlement of approximately $7,487 of outstanding receivables from ReneSola, and Zhenfa has agreed to purchase these modules from the Company for $7,487. As of June 30, 2015 the Company has received $2,227 (excluding foreign exchange impact) leaving a receivable of $5,260 due from Zhenfa related to this transaction.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 16—SUBSEQUENT EVENTS In July 2015, the Company determined to cease production at its Malaysian facility effective August 2, 2015, following a recent decision by the Company’s largest customer in Malaysia to exit from its OEM module production in Malaysia. The Company expects to continue to fulfill orders to this customer from its Spain and China facilities. Other factors contributing to the decision to close the facility include underutilization, increasing costs in Malaysia resulting from the recent introduction of a Goods & Services Tax, and the newly launched investigation by the European Commission that may result in anti-dumping and countervailing duties on solar cells and modules consigned from China and assembled in Malaysia and Taiwan. Raw material inventory at the Company’s Malaysia facility will be transferred to its Spain and China manufacturing facilities. The Company has engaged advisors to sell the Malaysia facility and its production and ancillary equipment. The Malaysia real estate was recently appraised at approximately $ 8,000 . In connection with the shut-down and sale of the Malaysia facility, the Company expects to incur approximately $ 1,000 to $ 1,500 of associated non-recurring costs during the second half of 2015, and the Company further expects to generate approximately $ 2,400 of associated annual pre-tax savings.

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2015
LOSS PER SHARE
Schedule of calculation of basic and diluted net loss per share	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Basic and diluted net loss per share Numerator: Net loss from continuing operations $ ) $ ) $ ) $ ) Net loss from discontinued operations — — — — Net loss $ ) $ ) $ ) $ ) Denominator: Weighted—average shares outstanding Add: Dilutive effect of stock options — — — — Dilutive effect of restricted common stock — — — — Weighted—average shares outstanding with dilution Net loss per share: Basic from continuing operations $ ) $ ) $ ) $ ) Basic from discontinued operations — — — — Basic $ ) $ ) $ ) $ ) Diluted from continuing operations $ ) $ ) $ ) $ ) Diluted from discontinued operations — — — — Diluted $ ) $ ) $ ) $ )

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2015
INVENTORIES
Schedule of inventories	June 30, 2015 December 31, 2014 Finished goods $ $ Raw materials Reserve ) ) Inventories, net $ $

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2015
ACCRUED LIABILITIES.
Schedule of accrued liabilities	June 30, 2015 December 31, 2014 Product performance (Note 8) $ $ Salary and wages Accrued bonus — Professional fees Restructuring severance and benefits (Note 9) Environmental (Note 8) Accrued franchise tax Client deposits (Note 15) — Other Total Accrued liabilities $ $

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2015
Phase II environmental site assessment
Commitments and contingencies
Schedule of liability	June 30, 2015 June 30, 2014 Balance as of beginning of year $ $ Additions — — Reductions — — Balance as of end of period $ $
Product performance liability
Commitments and contingencies
Schedule of liability	June 30, 2015 June 30, 2014 Balance as of beginning of year $ $ Additions Reversals — ) Reductions ) ) Foreign exchange impact — ) Balance as of end of period $ $

COST - REDUCTION ACTIONS (Table

COST - REDUCTION ACTIONS (Tables)	6 Months Ended
	Jun. 30, 2015
COST-REDUCTION ACTIONS
Schedule of rollforward of the severance and other exit cost accrual activity	June 30, 2015 June 30, 2014 Balance as of beginning of year $ $ Additions Reversals — ) Reductions ) ) Balance as of end of period $ $

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS
Schedule of fair value measurements of applicable financial assets and liabilities	Financial assets and liabilities at fair value as of June 30, 2015 Level 1 Level 2 Level 3 Money market funds (1) $ $ — $ — Deferred compensation (2) $ — $ — $ — Total $ $ — $ — Financial assets and liabilities at fair value as of December 31, 2014 Level 1 Level 2 Level 3 Money market funds (1) $ $ — $ — Deferred compensation (2) $ — $ ) $ — Total $ $ ) $ — (1) Included in cash and cash equivalents on the Company’s Condensed Consolidated Balance Sheets. The carrying amount of money market funds is a reasonable estimate of fair value. (2) Included in other long-term liabilities on the Company’s Condensed Consolidated Balance Sheets. Refer to Note 13 for further information.

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2015
STOCKHOLDERS' EQUITY
Schedule of changes in stockholders' equity	Common Stock Treasury Stock Additional Paid—In Accumulated Accumulated Other Comprehensive Total Stockholders’ Issued Amount Acquired Amount Capital Deficit Loss Equity Balance at December 31, 2014 $ $ ) $ $ ) $ ) $ Stock-based compensation — — — — — Employee stock purchase plan — — — — — Common stock issuance to Zhenfa, net ) ) Special dividend — — — — — ) — ) Fractional shares retired resulting from split ) — — — — — — — Net loss — — — — — ) — ) Foreign currency translation, net of tax — — — — — — ) ) Balance at June 30, 2015 $ $ ) $ $ ) $ ) $

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2015
STOCK-BASED COMPENSATION
Schedule of assumptions used to estimate the fair values of the stock options granted	Three Months Ended March 31, 2015 Risk-free interest rate % Expected volatility % Expected life (in years) Forfeiture rate % Dividend yield — Weighted-average estimated fair value of options granted during the period $
Summary of stock options activity	Options Outstanding Number of Shares Weighted— Average Exercise Price Weighted— Average Remaining Contractual Term (in years) Weighted— Average Grant—Date Fair Value Aggregate Intrinsic Value(1) Balance at December 31, 2014 — $ — — $ — $ — Options granted $ — $ $ ) Exercised — $ — — $ — $ — Canceled/forfeited — $ — — $ — $ — Balance at June 30, 2015 $ $ $ — Vested and exercisable as of June 30, 2015 — $ — — $ — $ — Vested and exercisable as of June 30, 2015 and expected to vest thereafter $ $ $ ) (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $1.19 of the Company’s common stock on June 30, 2015.
Summary of restricted common stock activity	Unvested Restricted Shares Number of Shares Weighted— Average Grant—Date Fair Value Unvested at December 31, 2014 $ — Granted $ — Vested ) $ Canceled — $ — Unvested at June 30, 2015 $ — Expected to vest after June 30, 2015 $ —
Schedule of stock-based compensation expense	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Cost of sales $ — $ — $ — $ — Selling, general and administrative expense $ $ $ $ Research and development expense $ — $ — $ — $ — Total stock-based compensation expense $ $ $ $ Total option exercise recognized tax benefit $ — $ — $ — $ —

REPORTABLE SEGMENT AND GEOGRA31

REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2015
REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION
Schedule of Operations by Reportable Segment	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Reconciliation of Adjusted EBITDA to Net Loss from Continuing Operations Adjusted EBITDA $ ) $ ) $ ) $ ) Depreciation ) ) ) ) Interest (expense) income, net ) ) Income tax expense ) ) ) ) Restructuring ) Stock—based compensation ) ) ) ) Non-cash reversal of loss contingency (Note 9) — — Loss on reclassification of held for sale assets — ) — ) (Gain) loss on disposal of fixed assets — — ) Net Loss from Continuing Operations $ ) $ ) $ ) $ )
Schedule of Operations by Geographic Area	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net Sales Spain $ $ $ $ Malaysia United States China Total Net Sales $ $ $ $
Schedule of Long-Lived Assets by Geographic Area	June 30, December 31, 2015 2014 Long-Lived Assets United States $ $ Malaysia Spain China Hong Kong — Total Long - Lived Assets $ $

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details)	Jan. 30, 2015	Jun. 30, 2015shares	Dec. 31, 2014shares
BASIS OF PRESENTATION
Reverse split	0.33
Common stock, shares issued		18,259,719	18,074,291
Common stock, shares outstanding		18,258,479	18,073,051

TRANSACTION WITH ZHEN FA NEW 33

TRANSACTION WITH ZHEN FA NEW ENERGY (U.S.) CO., LTD. AND ZHENFA ENERGY GROUP CO., LTD (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 11, 2014	Aug. 11, 2014	Jun. 30, 2015	Dec. 31, 2014
Transaction with Zhen Fa New Energy (U.S.) Co., Ltd. and Zhenfa Energy Group Co., Ltd.
Common stock, par value (in dollars per share)			$ 0.01	$ 0.01
Purchase price			$ (4)
Special Dividend Declared
Transaction with Zhen Fa New Energy (U.S.) Co., Ltd. and Zhenfa Energy Group Co., Ltd.
Dividend payable on common stock (in dollars per share)	$ 2.55
Share Purchase Agreement | ZHEN FA New Energy (U.S.) Co. Ltd. (Purchaser)
Transaction with Zhen Fa New Energy (U.S.) Co., Ltd. and Zhenfa Energy Group Co., Ltd.
Number of shares issued		9,210,710
Common stock, par value (in dollars per share)		$ 0.01
Purchase price		$ 21,664
Price per share (in dollars per share)		$ 2.35
ZHEN FA New Energy (U.S.) Co. Ltd. (Purchaser) | Share Purchase Agreement | STR Holdings Incorporated
Transaction with Zhen Fa New Energy (U.S.) Co., Ltd. and Zhenfa Energy Group Co., Ltd.
Percentage of outstanding shares upon closing of transaction (as a percent)		51.00%

TRANSACTION WITH ZHEN FA NEW 34

TRANSACTION WITH ZHEN FA NEW ENERGY (U.S.) CO., LTD. AND ZHENFA ENERGY GROUP CO., LTD (Details 2) - Aug. 11, 2014 - Specialized Technology Resources, Inc. - Sales Service Agreement - Zhenfa Energy Group Co., Ltd. (Zhenfa Energy) - ft²	Total
Sales Service Agreement
Initial term of agreement	2 years
Term of extension to agreement	1 year
Manufacturing Facility
Sales Service Agreement
Percentage of market rent for second five year term	50.00%
Second term of lease	5 years
Manufacturing Facility | Minimum
Sales Service Agreement
Area of facility	107,639
Rent free period	5 years

LOSS PER SHARE (Details)

LOSS PER SHARE (Details) $ / shares in Units, $ in Thousands	Jan. 30, 2015	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)$ / sharesshares	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)$ / sharesshares	Dec. 31, 2014shares
LOSS PER SHARE
Reverse split	0.33
Common stock, shares issued		18,259,719		18,259,719		18,074,291
Common stock, shares outstanding		18,258,479		18,258,479		18,073,051
Numerator:
Net loss from continuing operations | $		$ (3,313)	$ (1,640)	$ (5,919)	$ (6,282)
Net loss | $		$ (3,313)	$ (1,640)	$ (5,919)	$ (6,282)
Denominator:
Weighted-average shares outstanding		18,089,137	8,756,022	18,077,142	12,084,369
Add:
Weighted-average shares outstanding with dilution		18,089,137	8,756,022	18,077,142	12,084,369
Net loss per share:
Basic from continuing operations | $ / shares		$ (0.18)	$ (0.19)	$ (0.33)	$ (0.52)
Basic | $ / shares		(0.18)	(0.19)	(0.33)	(0.52)
Diluted from continuing operations | $ / shares		(0.18)	(0.19)	(0.33)	(0.52)
Diluted | $ / shares		$ (0.18)	$ (0.19)	$ (0.33)	$ (0.52)

LOSS PER SHARE (Details 2)

LOSS PER SHARE (Details 2) - USD ($) $ / shares in Units, $ in Thousands	Aug. 11, 2014	Mar. 07, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Transactions
Common stock, par value (in dollars per share)			$ 0.01		$ 0.01		$ 0.01
Purchase price					$ (4)
Weighted-average shares outstanding			18,089,137	8,756,022	18,077,142	12,084,369
Dutch auction tender offer
Transactions
Number of shares repurchased		5,203,986
Purchase price (in dollars per share)		$ 4.62
Share Purchase Agreement | ZHEN FA New Energy (U.S.) Co. Ltd. (Purchaser)
Transactions
Number of shares issued	9,210,710
Common stock, par value (in dollars per share)	$ 0.01
Purchase price	$ 21,664
Price per share (in dollars per share)	$ 2.35
STR Holdings Incorporated | Share Purchase Agreement | ZHEN FA New Energy (U.S.) Co. Ltd. (Purchaser)
Transactions
Percentage of outstanding shares upon closing of transaction (as a percent)	51.00%

LOSS PER SHARE (Details 3)

LOSS PER SHARE (Details 3) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Restricted common stock
Effect of anti-dilutive securities
Anti-dilutive securities excluded from diluted weighted-average shares outstanding (in shares)	509	0
ESPP
Effect of anti-dilutive securities
Anti-dilutive securities excluded from diluted weighted-average shares outstanding (in shares)	20	3	15	3
Employee stock option
Effect of anti-dilutive securities
Anti-dilutive securities excluded from diluted weighted-average shares outstanding (in shares)	1,964,665	3,654,963	1,964,665	3,654,963

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
INVENTORIES
Finished goods	$ 855	$ 1,806
Raw materials	6,343	7,467
Reserve	(494)	(1,025)
Inventories, net	$ 6,704	$ 8,248

LONG-LIVED ASSETS (Details )

LONG-LIVED ASSETS (Details ) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended
	Mar. 31, 2014	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2015	Dec. 31, 2014
Impairment Testing
Undiscounted expected future cash flows exceeded the carrying value				$ 54,854	$ 57,723
(Gain) loss on disposal of fixed assets		$ 2	$ (431)
Sale of land use rights
Impairment Testing
Proceeds from sale of China land use rights	$ 1,924
(Gain) loss on disposal of fixed assets	$ 435

LONG-LIVED ASSETS (Details 2)

LONG-LIVED ASSETS (Details 2) - Jun. 30, 2014 - USD ($) $ in Thousands	Total	Total	Total	Total
Sale of facility
Sale proceeds				$ 1,956
Loss on reclassification on held for sale assets			$ 1,323	$ 1,323
East Windsor, Connecticut facility
Sale of facility
Sale proceeds		$ 4,750
Loss on reclassification on held for sale assets	$ 1,323

ACCRUED LIABILITIES (Details )

ACCRUED LIABILITIES (Details ) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
ACCRUED LIABILITIES.
Product performance ( Note 8)	$ 11	$ 189
Salary and wages	493	381
Accrued bonus	516
Professional fees	318	704
Restructuring severance and benefits (Note 9)	30	32
Environmental (Note 8)	57	57
Accrued franchise tax	51	565
Client deposits (Note 15)	1,440
Other	624	852
Total Accrued liabilities	$ 3,540	$ 2,780

COMMITMENTS AND CONTINGENCIES42

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2014USD ($)customer	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
Product Performance
Reversals	$ (4,089)		$ (4,089)
Phase II environmental site assessment
Environmental
Balance as of beginning of year		$ 57	76
Balance as of end of period	76	57	76
Product performance liability
Product Performance
Balance as of beginning of year		189	4,141
Additions		82	492
Reversals			(4,089)
Reductions		(260)	(245)
Foreign exchange impact			(34)
Balance as of end of period	$ 265	$ 11	$ 265
Number of customers comprising majority of loss contingency claim | customer	1

COMMITMENTS AND CONTINGENCIES43

COMMITMENTS AND CONTINGENCIES (Details 2) - Spanish subsidiary - Breach of grant requirements - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2013	Jun. 30, 2015	Dec. 31, 2014
Commitments and contingencies
Grants repaid	$ 1,558
Accrual for potential breach of grant requirements			$ 974
Additional potential repayments, minimum		$ 0
Additional potential repayments, maximum		$ 4,000

COST-REDUCTION ACTIONS (Details

COST-REDUCTION ACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2014	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2013
Cost-reduction actions
Reversals				$ 795
Rollforward of the severance and other exit cost accrual activity
Balance as of beginning of year			$ 32	1,934
Additions			139	41
Reversals				(795)
Reductions			(141)	(638)
Balance as of end of period	$ 32	$ 542	$ 30	$ 542	$ 1,934
Spanish grants
Cost-reduction actions
Reversals	250
Rollforward of the severance and other exit cost accrual activity
Reversals	$ (250)
Facility closure | Johor, Malaysia | Cost of sales
Cost-reduction actions
Severance cost					386
Reversals		407
Rollforward of the severance and other exit cost accrual activity
Reversals		(407)
Facility closure | Johor, Malaysia | Selling, general and administrative expense
Cost-reduction actions
Severance cost					$ 377
Reversals		388
Rollforward of the severance and other exit cost accrual activity
Reversals		$ (388)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Fair value measurement - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Level 1
Fair Value Measurements
Total	$ 1,443	$ 1,441
Level 1 | Money market funds
Fair Value Measurements
Cash and cash equivalents	$ 1,443	1,441
Level 2
Fair Value Measurements
Other liabilities - Deferred compensation		(204)
Total		$ (204)

INCOME TAXES FROM CONTINUING 46

INCOME TAXES FROM CONTINUING OPERATIONS (Details)1 - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Federal	$ 0		$ 0
Foreign	0		0
State	0		0
Income tax (benefit) expense	$ 53	$ 596	$ 106	$ 735
Effective tax rate (as a percent)		(57.10%)		(13.30%)
Non-cash deferred tax asset write-off associated with stock option cancellations				$ 1,053
Projected annual effective tax rate excluding discrete items (as a percent)		34.70%		34.70%
U.S. statutory income tax rate (as a percent)		35.00%
Accrual for potential adjustments relating to state tax audit		$ 448
Disallowed foreign losses accrual (benefit)		$ 563		$ 605
Tax Year 2014
Income tax refund claimed					$ 8,252

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)	Dec. 31, 2014$ / sharesshares
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period			$ 57,723
Stock-based compensation			355
Employee stock purchase plan			1
Common stock issuance to Zhenfa, net			(4)
Special dividend			(20)
Net loss	$ (3,313)	$ (1,640)	(5,919)	$ (6,282)
Foreign currency translation, net of tax	458	$ (66)	(1,063)	$ (212)
Balance at end of period	$ 51,073		$ 51,073
Preferred stock, authorized (in shares) | shares	20,000,000		20,000,000		20,000,000
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.01		$ 0.01		$ 0.01
Preferred stock, shares issued | shares	0		0		0
Preferred stock, shares outstanding | shares	0		0		0
Common stock, authorized (in shares) | shares	200,000,000		200,000,000		200,000,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.01		$ 0.01		$ 0.01
Common stock, issued (in shares) | shares	18,259,719		18,259,719		18,074,291
Common stock, outstanding (in shares) | shares	18,258,479		18,258,479		18,073,051
Number of voting rights entitled per share of common stock owned	1
Restricted common stock
Increase (Decrease) in Stockholders' Equity
Unvested common stock (in shares) | shares	155,173		155,173		7,379
Common stock, excluding unvested restricted stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period (in shares) | shares			18,065,672
Stock-based compensation (in shares) | shares			36,967
Employee stock purchase plan (in shares) | shares			946
Fractional shares retired resulting from split | shares			(279)
Balance at end of period (in shares) | shares	18,103,306		18,103,306
Common Stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period			$ 181
Balance at end of period	$ 181		181
Treasury Stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period			$ (57)
Balance at beginning of period (in shares) | shares			1,240
Balance at end of period	$ (57)		$ (57)
Balance at end of period (in shares) | shares	1,240		1,240
Additional Paid-In Capital
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period			$ 230,276
Stock-based compensation			355
Employee stock purchase plan			1
Common stock issuance to Zhenfa, net			(4)
Balance at end of period	$ 230,628		230,628
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period			(168,618)
Special dividend			(20)
Net loss			(5,919)
Balance at end of period	(174,557)		(174,557)
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period			(4,059)
Foreign currency translation, net of tax			(1,063)
Balance at end of period	$ (5,122)		$ (5,122)

STOCKHOLDERS' EQUITY (Details 2

STOCKHOLDERS' EQUITY (Details 2) - Jun. 30, 2015 - USD ($) $ in Thousands	Total
STOCKHOLDERS' EQUITY
Shares held in treasury	1,240
Cost of treasury stock	$ 57

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2015USD ($)period$ / sharesshares	Mar. 31, 2015$ / sharesshares	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)	Nov. 09, 2010shares
Stock-based compensation, additional disclosure
Closing stock price (in dollars per share) | $ / shares	$ 1.19			$ 1.19
Stock-based compensation plans
Stock-based compensation expense | $	$ 222		$ 88	$ 375	$ 701
Term of U.S. Treasury zero-coupon strip		10 years
ESPP
Stock-based compensation plans
Shares reserved for issuance under stock purchase plan						166,667
Discount rate (as a percent)	10.00%
Number of Offering periods | period	4
Stock-based compensation expense | $	$ 1		$ 1	$ 1	$ 1
Number of shares available for grant or purchase	165,720			165,720
2009 Equity Incentive Plan
Stock-based compensation
Number of shares reserved for issuance	4,133,133			4,133,133
Stock-based compensation plans
Number of shares available for grant or purchase	1,365,452			1,365,452
Employee stock option
Stock-based compensation
Expiration period	10 years
Assumptions used to estimate the fair values of the stock options granted
Risk-free interest rate (as a percent)		1.80%
Expected volatility (as a percent)		68.40%
Expected life (in years)		6 years 10 months 24 days
Forfeiture rate		5.00%
Number of Shares
Options granted (in shares)		1,964,665		1,964,665
Outstanding at the end of the period (in shares)	1,964,665			1,964,665
Vested and exercisable at the end of the period and expected to vest thereafter (in shares)	1,811,132			1,811,132
Weighted-Average Exercise Price
Options granted (in dollars per share) | $ / shares		$ 1.52		$ 1.52
Outstanding at the end of the period (in dollars per share) | $ / shares	$ 1.52			1.52
Vested and exercisable at the end of the period and expected to vest thereafter (in dollars per share) | $ / shares	1.52			$ 1.52
Weighted-Average Remaining Contractual Term (in years)
Outstanding at the end of the period				9 years 7 months 10 days
Vested and exercisable at the end of the period and expected to vest thereafter				9 years 7 months 10 days
Weighted-Average Grant-Date Fair Value
Options granted (in dollars per share) | $ / shares		$ 0.99		$ 0.99
Outstanding at the end of the period (in dollars per share) | $ / shares	0.99			0.99
Vested and exercisable at the end of the period and expected to vest thereafter (in dollars per share) | $ / shares	$ 0.99			$ 0.99
Aggregate Intrinsic Value
Options granted | $	$ (648)			$ (648)
Vested and exercisable at the end of the period and expected to vest thereafter | $	(598)			(598)
Unrecognized compensation cost
Unrecognized compensation cost | $	$ 1,675			1,675
Weighted-average remaining vesting period of recognition	1 year 4 months 24 days
Employee stock option | Maximum
Stock-based compensation
Vesting period	3 years
Restricted common stock
Unrecognized compensation cost
Unrecognized compensation cost | $	$ 150			$ 150
Number of units
Unvested at the beginning of the period (in shares)		7,379		7,379
Granted (in shares)				184,761
Vested (in shares)				(36,967)
Unvested at the end of the period (in shares)	155,173			155,173
Expected to vest at the end of the period (in shares)	155,173			155,173
Weighted-Average Grant-Date Fair Value
Vested (in dollars per share) | $ / shares				$ 1.92
Restricted common stock | Maximum
Unrecognized compensation cost
Weighted-average remaining vesting period of recognition				1 year

STOCK-BASED COMPENSATION (Det50

STOCK-BASED COMPENSATION (Details 2) - Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Thousands	Total
Deferred compensation arrangement
Transaction price	$ 4.80
Deferred compensation | Certain member of management | Maximum
Deferred compensation arrangement
Potential bonus payable to members of management	$ 1,180
Deferred compensation | Certain member of management | Recurring | Level 2 | Other long-term liabilities
Deferred compensation arrangement
Deferred compensation arrangement paid	204
Deferred compensation liability, noncurrent	$ 0

STOCK-BASED COMPENSATION (Det51

STOCK-BASED COMPENSATION (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock-based compensation expense:
Total stock-based compensation expense	$ 222	$ 88	$ 375	$ 701
Selling, general and administrative expense
Stock-based compensation expense:
Total stock-based compensation expense	$ 222	$ 88	$ 375	$ 701

REPORTABLE SEGMENT AND GEOGRA52

REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)segmentproductitem	Jun. 30, 2014USD ($)
REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION
Number of products sold by entity | product			1
Number of industries in which products are sold to global customers | item			1
Number of reportable segments | segment			1
Reconciliation of Adjusted EBITDA to Net Loss from Continuing Operations
Adjusted EBITDA	$ (3,045)	$ (3,852)	$ (6,082)	$ (7,788)
Depreciation	(512)	(515)	(1,002)	(1,026)
Interest (expense) income , net	(52)	16	(48)	20
Income tax expense	(53)	(596)	(106)	(735)
Restructuring			(139)	(41)
Stock-based compensation	(222)	(88)	(375)	(701)
Non-cash reversal of loss contingency (Note 9)		4,089		4,089
Loss on reclassification of held for sale assets		(1,323)		(1,323)
(Gain) loss on disposal of fixed assets		2		(431)
Net loss from continuing operations	(3,313)	(1,640)	(5,919)	(6,282)
Reporting segment
Reconciliation of Adjusted EBITDA to Net Loss from Continuing Operations
Adjusted EBITDA	(2,480)	(3,982)	(4,249)	(6,905)
Reconciling items
Reconciliation of Adjusted EBITDA to Net Loss from Continuing Operations
Restructuring	$ 6	$ 757	$ (139)	$ 730

REPORTABLE SEGMENT AND GEOGRA53

REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Net Sales
Net sales	$ 8,515	$ 11,222	$ 15,378	$ 20,558
Long-Lived Assets
Long-Lived Assets	20,834		20,834		$ 20,195
United States
Net Sales
Net sales	5	49	49	51
Long-Lived Assets
Long-Lived Assets	1,645		1,645		583
Malaysia
Net Sales
Net sales	1,915	2,440	3,589	4,799
Long-Lived Assets
Long-Lived Assets	9,237		9,237		8,611
Spain
Net Sales
Net sales	4,850	7,259	8,798	13,784
Long-Lived Assets
Long-Lived Assets	7,131		7,131		7,997
China
Net Sales
Net sales	1,745	$ 1,474	2,942	$ 1,924
Long-Lived Assets
Long-Lived Assets	2,819		2,819		$ 3,004
Hong Kong
Long-Lived Assets
Long-Lived Assets	$ 2		$ 2

REPORTABLE SEGMENT AND GEOGRA54

REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION (Details 3) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)customer	Jun. 30, 2014USD ($)customer	Jun. 30, 2015USD ($)customer	Jun. 30, 2014USD ($)customer	Dec. 31, 2014USD ($)customer
Reportable segments and geographical information
Net sales	$ 8,515	$ 11,222	$ 15,378	$ 20,558
Three of the major customers
Reportable segments and geographical information
Number of major customers | customer	3
Net sales	$ 3,720
Two of the major customers
Reportable segments and geographical information
Number of major customers | customer	2		2
Net sales			$ 6,121
Accounts receivable	$ 2,084		$ 2,084
One of the major customers
Reportable segments and geographical information
Number of major customers | customer		1		1	1
Net sales		$ 4,396		$ 8,356
Accounts receivable					$ 6,334

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2014MW
Related parties
Due from Zhenfa	$ 5,260	$ 5,260
Huhui | Huhui Supply Agreement
Related parties
Purchase of minimum amount of encapsulants | MW			535
Deposit percentage			10.00%
Automatic renewal additional term			1 year
Notice period prior to end of current term			90 days
Sales	58	63
Huhui | Huhui Supply Agreement | Accrued Liabilities
Related parties
Client deposit received		1,148
RenaSola | Encapsulant Swap Transaction
Related parties
Outstanding receivables from related party	7,487	7,487
ZHEN FA New Energy (U.S.) Co. Ltd. (Purchaser) | Encapsulant Swap Transaction
Related parties
Agreed to purchase amount	7,487
Proceeds from related party		2,227
Due from Zhenfa	$ 5,260	$ 5,260

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent event - Discontinued operations - Malaysia - USD ($) $ in Thousands	1 Months Ended	6 Months Ended	12 Months Ended
	Jul. 31, 2015	Dec. 31, 2015	Dec. 31, 2015
Subsequent events
Appraised value of real estate	$ 8,000
Forecast
Subsequent events
Associated annual pre-tax savings			$ 2,400
Minimum | Forecast
Subsequent events
Associated non-recurring costs		$ 1,000
Maximum | Forecast
Subsequent events
Associated non-recurring costs		$ 1,500