Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 6-May-15 | |
Document And Entity Information | ||
Entity Registrant Name | Swisher Hygiene Inc. | |
Entity Central Index Key | 1504747 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,617,379 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $3,796 | $7,233 |
Restricted cash | 231 | 231 |
Accounts receivable (net of allowance for doubtful accounts of approximately $0.9 million at March 31, 2015 and $1.0 million at December 31, 2014) | 17,403 | 18,751 |
Inventory, net | 13,116 | 15,426 |
Deferred income taxes | 520 | 534 |
Assets held for sale | 3,076 | |
Other assets | 3,714 | 2,525 |
Total current assets | 41,856 | 44,700 |
Property and equipment, net | 33,891 | 37,037 |
Other intangibles, net | 5,978 | 6,654 |
Customer relationships and contracts, net | 20,949 | 22,792 |
Other noncurrent assets | 1,910 | 2,015 |
Total assets | 104,584 | 113,198 |
Current liabilities | ||
Accounts payable | 8,795 | 13,627 |
Accrued payroll and benefits | 4,179 | 3,467 |
Accrued expense | 7,498 | 7,122 |
Long-term debt and obligations due within one year | 2,623 | 1,884 |
Line of credit | 3,245 | |
Total current liabilities | 26,340 | 26,100 |
Long-term debt and obligations | 1,071 | 1,185 |
Deferred income taxes | 563 | 558 |
Other long-term liabilities | 4,068 | 4,065 |
Total noncurrent liabilities | 5,702 | 5,808 |
Commitments and contingencies | ||
Equity | ||
Common stock, par value $0.001, authorized 600,000,000 shares; 17,617,379 shares and 17,612,278 shares issued and outstanding at March 31, 2015 and December 31, 2014 (1) | 18 | 18 |
Additional paid-in capital (1) | 390,051 | 389,942 |
Accumulated deficit | -316,194 | -307,363 |
Accumulated other comprehensive loss | -1,333 | -1,307 |
Total equity | 72,542 | 81,290 |
Total liabilities and equity | $104,584 | $113,198 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets | ||
Net of allowance for doubtful accounts, accounts receivable | $900,000 | $1,000,000 |
Swisher Hygiene Inc. stockholders' equity | ||
Preferred stock, par value | $0.00 | $0.00 |
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 | $0.00 | $0.00 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 17,617,379 | 17,612,278 |
Common stock, shares outstanding | 17,617,379 | 17,612,278 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue | ||
Products | $39,263 | $43,241 |
Services | 4,328 | 4,694 |
Franchise and other | 250 | 360 |
Total revenue | 43,841 | 48,295 |
Costs and expenses | ||
Cost of sales (exclusive of route expenses and related depreciation and amortization) | 19,962 | 21,812 |
Route expenses | 11,692 | 12,364 |
Selling, general, and administrative expenses | 16,514 | 19,770 |
Depreciation and amortization | 4,590 | 5,359 |
Impairment loss on assets held for sale | 2,028 | |
Total costs and expenses | 52,758 | 61,333 |
Loss from operations | -8,917 | -13,038 |
Other income (expense), net | 114 | -717 |
Net loss before income taxes | -8,803 | -13,755 |
Income tax expense | -28 | -37 |
Net loss from operations | -8,831 | -13,792 |
Comprehensive loss | ||
Foreign currency translation adjustment | -26 | -15 |
Comprehensive loss | ($8,857) | ($13,807) |
Loss per share (1) | ||
Basic and diluted | ($0.50) | ($0.78) |
Weighted-average common shares used in the computation of loss per share (1) | ||
Basic and diluted | 17,750,214 | 17,688,471 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net loss | ($8,831) | ($13,792) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation and amortization | 4,590 | 5,359 |
Provision for doubtful accounts | 247 | 241 |
Stock based compensation | 109 | 496 |
Deferred income taxes | 19 | 5 |
Impairment loss on assets held for sale | 2,028 | |
Loss on sale of assets held for sale | 605 | |
(Gain) loss on sale of assets | -287 | 24 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 751 | 1,253 |
Inventory | 2,310 | -123 |
Accounts payable, accrued expense and other current liabilities | -3,767 | 3,588 |
Other assets and non-current assets | -1,079 | 1,040 |
Net cash (used in) provided by operating activities of continuing operations | -5,938 | 724 |
Net cash used in operating activities of discontinued operations | 0 | -1,987 |
Cash used in operating activities | -5,938 | -1,263 |
Investing activities | ||
Purchases of property and equipment | -1,716 | -1,949 |
Cash received on sale of property and equipment | 347 | |
Cash received on sale of assets held for sale | 462 | |
Cash used in investing activities | -1,369 | -1,487 |
Financing activities | ||
Principal payments on debt | -1,007 | -1,182 |
Proceeds from debt issuances | 1,622 | |
Proceeds from line of credit, net of issuance costs | 3,245 | |
Proceeds from capital lease | 10 | |
Cash provided by (used in) financing activities | 3,870 | -1,182 |
Net decrease in cash and cash equivalents | -3,437 | -3,932 |
Cash and cash equivalents at the beginning of the period | 7,233 | 21,465 |
Cash and cash equivalents at the end of the period | $3,796 | $17,533 |
1_BASIS_OF_PRESENTATION
1. BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and therefore do not contain all of the information and footnotes required by GAAP and the SEC for annual financial statements. The Company's Condensed Consolidated Financial Statements reflect all adjustments that management believes are necessary for the fair presentation of their financial position, results of operations, comprehensive loss and cash flows for the periods presented. The information at December 31, 2014 in the Company's Condensed Consolidated Balance Sheet included in this quarterly report was derived from the audited Consolidated Balance Sheet included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on April 1, 2015. The Company's 2014 Annual Report on Form 10-K is referred to in this quarterly report as the “2014 Annual Report.” This quarterly report should be read in conjunction with the 2014 Annual Report. |
Intercompany balances and transactions have been eliminated in consolidation. Tabular information, other than share and per share data, is presented in thousands of dollars. Certain reclassifications have been made to prior year amounts for consistency with the current period presentation. | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods. | |
The Company's significant accounting policies are discussed in Note 1 of the Notes to Consolidated Financial Statements in our 2014 Annual Report. There have been no significant changes to those policies. | |
On June 3, 2014, a one-for-ten reverse split of the Company's issued and outstanding common stock, $0.001 par value per share, became effective ("Reverse Stock Split"). Trading of the common stock on a post-Reverse Stock Split adjusted basis began at the open of business on the morning of June 3, 2014. All historic share and per share information, including loss per share, in this Form 10-Q have been retroactively adjusted to reflect the Reverse Stock Split. | |
Going Concern | |
Our Condensed Consolidated Financial Statements were prepared on a going concern basis in accordance with U.S. GAAP. The going concern basis of presentation assumes that we will continue in operation for the next twelve months and will be able to realize our assets and discharge our liabilities and commitments in the normal course of business and does not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from our inability to continue as a going concern. The Company has suffered recurring losses from operations and has not generated positive cash flows from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. In order for us to continue operations beyond the next twelve months and be able to discharge our liabilities and commitments in the normal course of business, we must do, but not limited to, some or all of the following: (i) improve operating results through improved customer retention, profitable organic revenue growth, and continued improvements in cost efficiencies; (ii) sell additional non-core or non-essential assets; (iii) raise additional equity; and/or (iv) obtain additional financing through debt. There can be no assurance that we will be able to improve operating results or obtain additional funds by selling additional non-core or non-essential assets, raising additional equity or obtaining additional financing when needed or that such funds, if available, will be obtainable on terms satisfactory to us. | |
If we are not able to improve operating results or obtain additional funds by selling additional non-core or non-essential assets, raising additional equity or obtaining additional financing, material adverse events may occur including, but not limited to: 1) a reduction in the nature and scope of our operations, 2) our inability to fully implement our current business plan, and 3) defaults under the Credit Facility (as defined below). There can be no assurances that we will be able to successfully improve our liquidity position. Our consolidated financial statements do not reflect any adjustments that might result from the adverse outcome relating to this uncertainty. | |
Newly Issued Accounting Pronouncements | |
In April, 2014, the Financial Accounting Standards Board issued Accounting Standards Update ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in this accounting standard raise the threshold for a disposal to qualify as a discontinued operation and require new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. This accounting standard update is effective for annual periods beginning on or after December 15, 2014 and related interim periods, with early adoption allowed. The adoption of this standard did not have a material impact on the Company’s consolidated financial results. | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update ASU No. 2014-09, Revenue from Contracts with Customers. This ASU is intended to clarify the principles for recognizing revenue by providing a more robust framework for addressing revenue issues; improving comparability of revenue recognition practices; 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 impact of this standard and has elected to not adopt the standard early. | |
In August 2014, the Financial Accounting Standards Board issued ASU Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This ASU provides guidance related to management’s responsibility to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and to provide related footnote disclosures. The new requirements are effective for the annual periods ending after December 15, 2016, and for interim periods and annual periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact of this standard and has elected to not adopt the standard early. |
2_DISCONTINUED_OPERATIONS_AND_
2. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Discontinued Operations and Disposal Groups [Abstract] | |||||
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE | Discontinued Operations | ||||
For the three months ended March 31, 2015, there were no discontinued operations. For the three months ended March 31, 2014, net cash used in operating activities of discontinued operations was $2.0 million and consisted of payments primarily related to legal fees and the settlement of a contractual dispute that the Company accepted responsibility to resolve as a part of the sale of the Waste segment. The Company completed the sale of its Waste segment on November 15, 2012. | |||||
Assets Held For Sale | |||||
In accordance with ASC 360, Property, Plant and Equipment, certain non-core linen assets have been classified as assets held for sale in the Condensed Consolidated Balance Sheet and the assets were adjusted to the lower of historical carrying amount or fair value. Fair value is based on the estimated sales price, less selling costs, of the assets. Estimates of the net sales proceeds are derived using Level 3 inputs, including the Company’s estimates related to industry multiples of revenues or operating metrics, the status of ongoing sales negotiations and asset purchase agreements where available. The Company’s estimates of fair value require significant judgment and are regularly reviewed and subject to change based on market conditions, changes in the customer base of the operations or routes, and our continuing evaluation as to the facility's acceptable sale price. | |||||
During 2014 the Company updated its estimates of the fair value of certain linen routes and operations to reflect various events that occurred during the year. The cumulative impairment loss for the twelve months ended December 31, 2014 was $3.0 million, of which $1.9 million was attributable to a reduction in the estimate of net sale proceeds for a linen processing operation. The factors driving the $1.9 million reduction were the cancellation notifications, received from three major customers, resulting in a significant loss of forecasted revenue; and the operation’s 2014 year-to-date loss which was in excess of the Company’s estimates. The Company made the decision to close this linen processing operation and the fair value was written down to zero. During the three months ended March 31, 2015, the Company completed the sale of equipment of this closed operation which resulted in the net receipt of $0.3 million in cash, and $0.3 million gain. The gain is included in “Other income (expense), net” in the Condensed Consolidated Statements of Operations and Comprehensive Loss. | |||||
During March 2015, the Board of Directors of the Company approved a resolution to sell the Company’s remaining linen operation. In accordance with ASC 360, Property, Plant and Equipment, these assets were classified as assets held for sale at March 31, 2015 and were adjusted to the lower of historical carrying amount or fair value, which was $3.1 million at March 31, 2015. The estimated fair value was derived based on the assessment of the potential net selling price. The Company expects that this linen operation will be sold in the second quarter of 2015. | |||||
For the three months ended March 31, 2015 and 2014, linen related revenue attributable to the assets held for sale and sold linen assets was $1.6 million and $2.7 million, respectively. The 2014 annual revenue was $9.6 million. | |||||
There were no assets held for sale as of December 31, 2014. The major classes of the assets held for sale as of March 31, 2015 are as follows: | |||||
March 31, | |||||
2015 | |||||
Property and equipment, net | $ | 1,937 | |||
Customer relationships, net | 459 | ||||
Accounts receivable | 350 | ||||
Other, net | 330 | ||||
Total | $ | 3,076 |
3_GOODWILL_AND_OTHER_INTANGIBL
3. GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | The Company’s accounting policy is to perform an annual impairment test in the fourth quarter or more frequently whenever events or circumstances indicated that the carrying value of intangible assets may not be recoverable. On a quarterly basis, we monitor the key drivers of fair value to detect the existence of indicators or changes that would warrant an interim impairment test for our intangible assets. Goodwill was fully written-off in the second quarter of 2014 with a non-cash impairment charge of $5.8 million. There was no impairment of intangible assets as of March 31, 2015. |
Amortization expense on finite lived intangible assets for the three months ended March 31, 2015 and 2014 was $1.7 million and $2.0 million, respectively. |
4_INVENTORY
4. INVENTORY | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory, Net [Abstract] | |||||||||
INVENTORY | Inventory, net of reserves, as of March 31, 2015 and December 31, 2014 consisted of the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Finished goods | $ | 10,460 | $ | 12,286 | |||||
Raw materials | 2,286 | 2,780 | |||||||
Work in process | 370 | 360 | |||||||
Total | $ | 13,116 | $ | 15,426 |
5_EQUITY
5. EQUITY | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
EQUITY | On May 15, 2014, the Reverse Stock Split of the Company’s issued and outstanding common stock at a ratio of one-for-ten was approved by the Company’s stockholders. The Reverse Stock Split became effective June 3, 2014, pursuant to a Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation filed with the State of Delaware. The Company is authorized in its Amended and Restated Certificate of Incorporation to issue up to a total of 600,000,000 shares of common stock at a par value of $.001 per share and 10,000,000 shares of preferred stock at a par value of $.001 per share. The Company’s common stock continues to trade on the Nasdaq Capital Market under the symbol SWSH under a new CUSIP number. In the Condensed Consolidated Balance Sheets, the Equity section has been retroactively adjusted to reflect the Reverse Stock Split for all periods presented by reducing the line item Common stock and increasing the line item Additional paid-in capital, with no change to Equity in the aggregate. | ||||||||||||
Changes in equity for the three months ended March 31, 2015 consisted of the following: | |||||||||||||
Balance at December 31, 2014 | $ | 81,290 | |||||||||||
Stock based compensation | 109 | ||||||||||||
Foreign currency translation adjustment | (26 | ) | |||||||||||
Net loss | (8,831 | ) | |||||||||||
Balance at March 31, 2015 | $ | 72,542 | |||||||||||
Comprehensive Loss | |||||||||||||
A summary of the changes in the components of accumulated other comprehensive loss for the three months ended March 31, 2015 is provided below: | |||||||||||||
Foreign Currency | Accumulated Other | ||||||||||||
Translation Adjustment | Employee Benefit Plan | Comprehensive Loss | |||||||||||
Adjustment, Net of Tax | |||||||||||||
Balance at December 31, 2014 | $ | (125 | ) | $ | (1,182 | ) | $ | (1,307 | ) | ||||
Current period other comprehensive loss | (26 | ) | - | (26 | ) | ||||||||
Balance at March 31, 2015 | $ | (151 | ) | $ | (1,182 | ) | $ | (1,333 | ) |
6_LONGTERM_DEBT_AND_OBLIGATION
6. LONG-TERM DEBT AND OBLIGATIONS | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Long-term Debt, Unclassified [Abstract] | |||||||||
LONG-TERM DEBT AND OBLIGATIONS | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Notes payable | $ | 1,125 | $ | 1,193 | |||||
Convertible promissory notes, 4.0%: maturing at various dates through 2016 | 624 | 832 | |||||||
Capitalized lease obligations and other financing | 1,945 | 1,044 | |||||||
Total debt and obligations | 3,694 | 3,069 | |||||||
Long-term debt and obligations due within one year | (2,623 | ) | (1,884 | ) | |||||
Long-term debt and obligations | $ | 1,071 | $ | 1,185 | |||||
Interest on notes payable range between 3.6% and 4.0% and mature at various dates through 2019. At the Company’s election, the Company may settle, at any time prior to and including the maturity date, any portion of the outstanding convertible promissory notes’ principal balance of $0.6 million, plus accrued interest, in a combination of cash and shares of common stock. To the extent that the Company’s common stock is part of such settlement, the settlement price is the most recent closing price of the Company’s common stock on the trading day prior to the date of settlement. Although none of these notes have been settled to date with shares, if all notes outstanding at March 31, 2015 were to be settled with shares the Company would issue 337,278 shares of common stock based on the per share value at March 31, 2015. | |||||||||
On August 29, 2014, the Company entered into a $20.0 million revolving credit facility, through the execution of a Loan and Security Agreement, by and among the Company, as Guarantor, and certain subsidiaries of the Company and collectively, as Borrower, and Siena Lending Group LLC, as Lender (the “Credit Facility”). The Credit Facility matures on August 29, 2017. | |||||||||
Interest on borrowings under the Credit Facility will accrue at the Base Rate plus 2.00% and will be payable monthly. Base Rate is defined as the greater of (1) the Prime Rate, (2) the Federal Funds Rate plus 0.50%, or (3) 3.25%. | |||||||||
Borrowings and availability under the Credit Facility are subject to a borrowing base and limitations, and compliance with other terms specified in the agreement. Borrowings under the Credit Facility are secured by a first priority lien on certain of the Company’s and its subsidiaries’ assets. The calculated borrowing base as of March 31, 2015 was $12.3 million, of which $4.1 million was outstanding under letters of credit, $3.2 million was outstanding under borrowings and $5.0 million was unused. | |||||||||
The Credit Facility contains certain customary representations and warranties, and certain customary covenants on the Company’s ability to, among other things, incur additional indebtedness, create liens or other encumbrances, sell or otherwise dispose of assets, and merge or consolidate with other entities or enter into a change of control transaction. The Credit Facility contains various events of default. The Company has met all required covenants under the Credit Facility as of March 31, 2015. | |||||||||
The Company entered into a letter agreement, dated as of March 25, 2015, as amended (“Letter Agreement”), with its Lender in respect of the occurrence of a Springing DACA Event, as such term is defined in the Loan and Security Agreement dated as of August 29, 2014, among the Company, certain of the Company’s subsidiaries, and its Lender. The Lender temporarily waived certain cash management requirements and certain expanded reporting requirements that would otherwise go into effect upon occurrence of a Springing DACA Event until May 12, 2015. | |||||||||
The Company has entered into capitalized lease obligations with third party finance companies to finance the cost of certain equipment. At March 31, 2015, these obligations bore interest at rates ranging between 4.0% and 18.4% and at December 31, 2014, interest ranged between 4.0% and 18.4%. | |||||||||
The fair value of the Company's debt is estimated based on the current borrowing rates available to the Company for bank loans with similar terms and maturities, and approximates the carrying value of these liabilities. |
7_OTHER_INCOME_EXPENSE_NET
7. OTHER INCOME (EXPENSE), NET | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Income and Expenses [Abstract] | |||||||||
OTHER (EXPENSE) INCOME, NET | Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Interest income | $ | - | $ | 4 | |||||
Interest expense | (95 | ) | (78 | ) | |||||
Foreign currency | (71 | ) | (15 | ) | |||||
Other | 280 | (628 | ) | ||||||
Total other income (expense), net | $ | 114 | $ | (717 | ) | ||||
As described in Note 2, “Discontinued Operations and Assets Held for Sale”, “Other” for the three months ended March 31, 2015, primarily consists of a $0.3 million gain related to the sale of equipment of a closed operation, and for the three months ended March 31, 2014, primarily represents a $0.6 million loss related to the sale of assets held for sale. |
8_SUPPLEMENTAL_CASH_FLOW_INFOR
8. SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | Three Months Ended March 31, | ||||||||
2015 | 2014 | ||||||||
Cash paid for income taxes | $ | - | $ | 20 | |||||
Cash paid for interest | $ | 95 | $ | 78 | |||||
Cash received from interest | $ | - | $ | 5 |
9_LOSS_PER_SHARE
9. LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2015 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | Basic net loss attributable to common stockholders per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Shares of common stock underlying outstanding stock options of which the market price of the common stock is higher than the exercise price of the related stock awards and unvested restricted stock units of 6,603 were not included in the computation of diluted loss per share for the three months ended March 31, 2015, since their inclusion would be anti-dilutive. |
Shares of common stock underlying outstanding stock options of which the market price of the common stock is higher than the exercise price of the related stock awards and unvested restricted stock units of 32,480 were not included in the computation of diluted loss per share for the three months ended March 31, 2014 since their inclusion would be anti-dilutive. |
10_INCOME_TAXES
10. INCOME TAXES | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | In projecting the Company’s income tax expense for 2015, management has concluded that it is not more likely than not that the Company will realize the benefit of its deferred tax assets and as a result a full valuation allowance will be required as of December 31, 2015. Therefore, the Company has not recognized a tax benefit as it relates to the current loss for the period ended March 31, 2015. |
For the three months ended March 31, 2015, the Company has recorded an estimate for income taxes based on the Company’s projected income tax expense for the twelve month period ending December 31, 2015. The Company’s tax provision has an unusual relationship to pretax loss mainly because of the existence of a full deferred tax asset valuation allowance. This circumstance generally results in a zero net tax provision since the income tax expense or benefit that would otherwise be recognized is offset by the change to the valuation allowance. However, tax expense recorded in the first quarter of 2015 included the accrual of income tax expense related to an additional valuation allowance in connection with the tax amortization of the Company’s indefinite-lived intangible assets that was not available to offset existing deferred tax assets (termed a “naked credit”). Specifically, the Company does not consider the deferred tax liabilities related to indefinite lived intangible assets when determining the need for a valuation allowance. |
11_RELATED_PARTY_TRANSACTIONS
11. RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | The Company paid fees for training course development and utilization of the delivery platform from a company, the majority of which is owned by a partnership in which a significant shareholder, former director and three former executives of the Company have a controlling interest. Fees paid during the three months ended March 31, 2015 and 2014 were less than $0.1 million, respectively. |
As discussed further below in Note 12, “Commitments and Contingencies,” the Company entered into a Manufacturing and Supply Agreement (the “Cavalier Agreement”) with a plant in connection with its acquisition of Sanolite in July 2011. The Cavalier Agreement was terminated in September 2014, pursuant to the terms of the agreement. In connection with the acquisition in 2011, two of the owners of both Sanolite and the manufacturing plant became Company employees. There were no purchases, pursuant to the Cavalier Agreement, for the three months ended March 31, 2015 and $1.5 million at March 31, 2014. At March 31, 2015 and December 31, 2014, the Company had less than $0.1 million and $0.3 million included in accounts payable due to this entity, respectively. As described below, the transactions pursuant to the Cavalier Agreement were considered to be conducted at the going market prices for such products. | |
The Company is obligated to make lease payments pursuant to certain real property and equipment lease agreements with employees that were former owners of acquired companies. Such lease payments during the three months ended March 31, 2015 and 2014 were $0.2 million. |
12_COMMITMENTS_AND_CONTINGENCI
12. COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Guarantees |
In connection with a distribution agreement entered into in December 2010, the Company provided a guarantee that the distributor's operating cash flows associated with the agreement would not fall below certain agreed-to minimums, subject to certain pre-defined conditions, over the ten year term of the distribution agreement. If the distributor's annual operating cash flow does fall below the agreed-to annual minimums, the Company will reimburse the distributor for any such short fall up to a pre-designated amount. No value was assigned to the fair value of the guarantee at March 31, 2015 and December 31, 2014, based on a probability assessment of the projected cash flows. Management currently does not believe that it is probable that any amounts will be paid under this agreement and thus there is no amount accrued for the guarantee in the Condensed Consolidated Financial Statements. This liability would be considered a Level 3 financial instrument given the unobservable inputs used in the projected cash flow model. | |
As discussed above in Note 11, “Related Party Transactions,” the Company entered into the Cavalier Agreement. The agreement, which was scheduled to expire on December 31, 2012, was extended for an additional two year period with an automatic 18-month renewal term and a six month termination provision. The agreement provides for pricing adjustments, up or down, on the first of each month based on the vendor's actual average product costs incurred during the prior month. Additional product payments made by the Company due to the vendors pricing adjustment as a result of this agreement have not been significant and have not represented costs materially above the going market price for such product. The Cavalier Agreement was terminated in September 2014 pursuant to the terms of the agreement. | |
LEGAL MATTERS | |
We may be involved in litigation from time to time in the ordinary course of business. We do not believe that the ultimate resolution of these matters will have a material adverse effect on our business, financial condition or results of operations. However, the results of these matters cannot be predicted with certainty and no assurance can be given that the ultimate resolution of any legal or administrative proceedings or disputes will not have a material adverse effect on our business, financial condition and results of operations. | |
Securities Litigation | |
On May 21, 2012, a stockholder derivative action was brought against the Company's former CEO and former CFO and the Company's then directors for alleged breaches of fiduciary duty by a purported Company stockholder in the United States District Court for the Southern District of New York. In this derivative action, captioned Arsenault v. Berrard, et al., 1:12-cv-4028, the plaintiff seeks to recover for the Company damages arising out of the Company's March 28, 2012 announcement regarding the Board of Director’s conclusion that the Company's previously issued interim financial statements for the quarterly periods ended March 31, 2011, June 30, 2011 and September 30, 2011, and the other financial information in the Company's quarterly reports on Form 10-Q for the periods then ended, should no longer be relied upon and that an internal review by the Company's Audit Committee primarily relating to possible adjustments to the Company's financial statements was ongoing. | |
On August 13, 2012, the Arsenault derivative action, along with other related putative class actions in the Southern District of New York, was transferred to the United States District Court for the Western District of North Carolina where other related putative securities class actions. All action were consolidated under the caption In re Swisher Hygiene, Inc. Securities and Derivative Litigation, MDL No. 2384. On August 21, 2012, the Western District of North Carolina issued an order governing the practice and procedure in the actions transferred to the Western District of North Carolina as well as the actions originally filed there. On October 18, 2012, the Western District of North Carolina held an Initial Pretrial Conference at which it appointed lead counsel and lead plaintiffs for the securities class actions, and set a schedule for the filing of a consolidated class action complaint and defendants' time to answer or otherwise respond to the consolidated class action complaint. The Western District of North Carolina stayed the Arsenault derivative action, pending the outcome of the securities class actions. | |
On August 6, 2014, following a hearing, the Western District of North Carolina approved a settlement of the securities class actions, and issued an Order and Final Judgment that, among other things, dismissed the securities class actions pending in the United States with prejudice and provided for full and complete releases to defendants. The Arsenault derivative action is still pending. | |
On June 11, 2013, an individual action was filed in the United States. District Court for the Southern District of Florida captioned Miller, et al. v. Swisher Hygiene, Inc., et al., No. 0:13-CV-61292-JAL, against the Company, its former CEO and former CFO, and a former Company director, bringing state and federal claims founded on the allegations that in deciding to sell their company to the Company, plaintiffs relied on defendants' statements about such things as the Company's accounting and internal controls, which, in light of the Company’s restatement of its financial statements, were false. On July 17, 2013, the Company notified the United States Judicial Panel on Multidistrict Litigation ("MDL Panel") of this action, and requested that it be transferred and centralized in the Western District of North Carolina with the other actions pending there. On July 23, 2013, the MDL Panel issued a Conditional Transfer Order (the "Miller CTO"), conditionally transferring the case to the Western District of North Carolina. On July 29, 2013, plaintiffs notified the MDL Panel that they would seek to vacate the Miller CTO. In light of the proceedings in the MDL Panel, defendants requested that the Southern District of Florida stay all proceedings pending the MDL Panel's ruling. On August 6, 2013, the Southern District of Florida issued a stay of all proceedings pending a ruling by the MDL Panel. On October 2, 2013, following briefing on the issue of whether the Miller CTO should be vacated, the MDL Panel issued an order transferring the action to the Western District of North Carolina. The Company and the individual defendants filed motions to dismiss the complaint on March 20, 2014. Briefing on the motions to dismiss was completed on May 12, 2014. On June 2, 2014, plaintiffs filed a motion with the Western District of North Carolina seeking a suggestion for remand from that Court to the MDL Panel. Briefing on that motion was completed on June 26, 2014. Oral argument on the motions to dismiss and motion for suggestion for remand were heard on July 22, 2014. On August 5, 2014, the Western District of North Carolina denied plaintiffs' motion for suggestion for remand. On October 22, 2014, the Company filed a notice of supplemental authority in support of its motion to dismiss the complaint in this action. On November 4, 2014, plaintiffs filed a response to the notice of supplemental authority. | |
On December 17, 2013, a purported stockholder commenced a putative securities class action on behalf of purchasers of the Company's common stock on the Toronto Stock Exchange or any other Canadian trading platforms in the Ontario Superior Court of Justice, captioned Edwards v. Swisher Hygiene, Inc., et al., CV 13-20282 CP, against the Company, the former CEO and former CFO. The action alleges claims under Canadian law for alleged misrepresentations of the Company's financial position relating to its business acquisitions. On February 13, 2014, a Fresh Statement of Claim and Fresh Notice of Action were filed, adding an additional named plaintiff. On March 28, 2014, another purported stockholder commenced a putative securities class action on behalf of purchasers of the Company's common stock on the Toronto Stock Exchange or any other Canadian trading platforms in the Ontario Superior Court of Justice, captioned Phillips v. Swisher Hygiene, Inc., et al., CV 14-00501096-0000, against the Company, the former CEO, the former CFO and the Company's former Senior Vice President and Treasurer. The action alleges claims under Canadian law stemming from the Company's restatement. | |
Although the Company believed it had meritorious defenses to the asserted claims in the two securities class actions pending in Canada, the defendants agreed to terms of settlement and executed a settlement agreement resolving all claims in both securities class actions pending there, which was approved by the Ontario Superior Court of Justice by Order dated February 13, 2015 (the "Canadian Settlement"). The Canadian Settlement provides that defendants will make a set cash payment totaling $0.7 million, including legal fees, all from insurance proceeds, to settle all of the Canadian securities class actions, with full and complete releases provided to the defendants. Notice has been given of the Canadian Settlement. | |
Other Matters | |
The Company has been contacted by the staff of the Atlanta Regional Office of the SEC and by the United States Attorney's Office for the Western District of North Carolina (the "U.S. Attorney's Office") after the Company's March 28, 2012 public announcement of the Audit Committee's internal review and the delays in filing its periodic reports. The Company has been asked to make certain individuals available and to provide certain information about these matters to the SEC and the U.S. Attorney's Office. The Company is fully cooperating with the SEC and the U.S. Attorney's Office. Any action by the SEC, the U.S. Attorney's Office or other government agency could result in criminal or civil sanctions against the Company and/or certain of its current or former officers, directors or employees. |
1_BASIS_OF_PRESENTATION_Polici
1. BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Basis Of Presentation Policies | |
Basis of Presentation | The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and therefore do not contain all of the information and footnotes required by GAAP and the SEC for annual financial statements. The Company's Condensed Consolidated Financial Statements reflect all adjustments that management believes are necessary for the fair presentation of their financial position, results of operations, comprehensive loss and cash flows for the periods presented. The information at December 31, 2014 in the Company's Condensed Consolidated Balance Sheet included in this quarterly report was derived from the audited Consolidated Balance Sheet included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on April 1, 2015. The Company's 2014 Annual Report on Form 10-K is referred to in this quarterly report as the “2014 Annual Report.” This quarterly report should be read in conjunction with the 2014 Annual Report. |
Intercompany balances and transactions have been eliminated in consolidation. Tabular information, other than share and per share data, is presented in thousands of dollars. Certain reclassifications have been made to prior year amounts for consistency with the current period presentation. | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods. | |
The Company's significant accounting policies are discussed in Note 1 of the Notes to Consolidated Financial Statements in our 2014 Annual Report. There have been no significant changes to those policies. | |
On June 3, 2014, a one-for-ten reverse split of the Company's issued and outstanding common stock, $0.001 par value per share, became effective ("Reverse Stock Split"). Trading of the common stock on a post-Reverse Stock Split adjusted basis began at the open of business on the morning of June 3, 2014. All historic share and per share information, including loss per share, in this Form 10-Q have been retroactively adjusted to reflect the Reverse Stock Split. | |
Going Concern | Our condensed consolidated financial statements were prepared on a going concern basis in accordance with U.S. GAAP. The going concern basis of presentation assumes that we will continue in operation for the next twelve months and will be able to realize our assets and discharge our liabilities and commitments in the normal course of business and does not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from our inability to continue as a going concern. The Company has suffered recurring losses from operations and has not generated positive cash flows from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. In order for us to continue operations beyond the next twelve months and be able to discharge our liabilities and commitments in the normal course of business, we must do, but not limited to, some or all of the following: (i) improve operating results through improved customer retention, profitable organic revenue growth, and continued improvements in cost efficiencies; (ii) sell additional non-core or non-essential assets; (iii) raise additional equity; and/or (iv) obtain additional financing through debt. There can be no assurance that we will be able to improve operating results or obtain additional funds by selling additional non-core or non-essential assets, raising additional equity or obtaining additional financing when needed or that such funds, if available, will be obtainable on terms satisfactory to us. |
If we are not able to improve operating results or obtain additional funds by selling additional non-core or non-essential assets, raising additional equity or obtaining additional financing, material adverse events may occur including, but not limited to: 1) a reduction in the nature and scope of our operations, 2) our inability to fully implement our current business plan, and 3) defaults under the Credit Facility (as defined below). There can be no assurances that we will be able to successfully improve our liquidity position. Our consolidated financial statements do not reflect any adjustments that might result from the adverse outcome relating to this uncertainty. | |
Newly Issued Accounting Pronouncements | In April, 2014, the Financial Accounting Standards Board issued Accounting Standards Update ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in this accounting standard raise the threshold for a disposal to qualify as a discontinued operation and require new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. This accounting standard update is effective for annual periods beginning on or after December 15, 2014 and related interim periods, with early adoption allowed. The adoption of this standard did not have a material impact on the Company’s consolidated financial results. |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update ASU No. 2014-09, Revenue from Contracts with Customers. This ASU is intended to clarify the principles for recognizing revenue by providing a more robust framework for addressing revenue issues; improving comparability of revenue recognition practices; 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 impact of this standard and has elected to not adopt the standard early. | |
In August 2014, the Financial Accounting Standards Board issued ASU Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This ASU provides guidance related to management’s responsibility to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and to provide related footnote disclosures. The new requirements are effective for the annual periods ending after December 15, 2016, and for interim periods and annual periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact of this standard and has elected to not adopt the standard early. |
2_DISCONTINUED_OPERATIONS_AND_1
2. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Discontinued Operations And Assets Held For Sale Tables | |||||
Schedule of assets held for sale | March 31, | ||||
2015 | |||||
Property and equipment, net | $ | 1,937 | |||
Customer relationships, net | 459 | ||||
Accounts receivable | 350 | ||||
Other, net | 330 | ||||
Total | $ | 3,076 |
4_INVENTORY_Tables
4. INVENTORY (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Tables | |||||||||
Schedule of inventory | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Finished goods | $ | 10,460 | $ | 12,286 | |||||
Raw materials | 2,286 | 2,780 | |||||||
Work in process | 370 | 360 | |||||||
Total | $ | 13,116 | $ | 15,426 |
5_EQUITY_Tables
5. EQUITY (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity Tables | |||||||||||||
Schedule of changes in stockholders equity | Balance at December 31, 2014 | $ | 81,290 | ||||||||||
Stock based compensation | 109 | ||||||||||||
Foreign currency translation adjustment | (26 | ) | |||||||||||
Net loss | (8,831 | ) | |||||||||||
Balance at March 31, 2015 | $ | 72,542 | |||||||||||
Changes in each component of accumulated other comprehensive loss | Foreign Currency | Accumulated Other | |||||||||||
Translation Adjustment | Employee Benefit Plan | Comprehensive Loss | |||||||||||
Adjustment, Net of Tax | |||||||||||||
Balance at December 31, 2014 | $ | (125 | ) | $ | (1,182 | ) | $ | (1,307 | ) | ||||
Current period other comprehensive loss | (26 | ) | - | (26 | ) | ||||||||
Balance at March 31, 2015 | $ | (151 | ) | $ | (1,182 | ) | $ | (1,333 | ) |
6_LONGTERM_DEBT_AND_OBLIGATION1
6. LONG-TERM DEBT AND OBLIGATIONS (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Long-term Debt And Obligations Tables | |||||||||
Schedule of long term obligations | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Notes payable | $ | 1,125 | $ | 1,193 | |||||
Convertible promissory notes, 4.0%: maturing at various dates through 2016 | 624 | 832 | |||||||
Capitalized lease obligations and other financing | 1,945 | 1,044 | |||||||
Total debt and obligations | 3,694 | 3,069 | |||||||
Long-term debt and obligations due within one year | (2,623 | ) | (1,884 | ) | |||||
Long-term debt and obligations | $ | 1,071 | $ | 1,185 |
7_OTHER_INCOME_EXPENSE_NET_Tab
7. OTHER INCOME (EXPENSE), NET (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Income Expense Net Tables | |||||||||
Schedule of other expense | Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Interest income | $ | - | $ | 4 | |||||
Interest expense | (95 | ) | (78 | ) | |||||
Foreign currency | (71 | ) | (15 | ) | |||||
Other | 280 | (628 | ) | ||||||
Total other income (expense), net | $ | 114 | $ | (717 | ) |
8_SUPPLEMENTAL_CASH_FLOW_INFOR1
8. SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||
Supplemental cash flow information | Three Months Ended March 31, | ||||||||
2015 | 2014 | ||||||||
Cash paid for income taxes | $ | - | $ | 20 | |||||
Cash paid for interest | $ | 95 | $ | 78 | |||||
Cash received from interest | $ | - | $ | 5 |
2_DISCONTINUED_OPERATIONS_AND_2
2. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Discontinued Operations And Assets Held For Sale Details | ||
Property and equipment, net | $1,937 | |
Customer relationships, net | 459 | |
Accounts receivable | 350 | |
Other, net | 330 | |
Total | $3,076 |
2_DISCONTINUED_OPERATIONS_AND_3
2. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE (Details Narrative) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Discontinued Operations And Assets Held For Sale Details Narrative | ||
Net cash used in operating activities of discontinued operations | $0 | $1,987 |
Revenue from Discontinued Operations - Linen | $1,600 | $2,700 |
3_GOODWILL_AND_OTHER_INTANGIBL1
3. GOODWILL AND OTHER INTANGIBLE ASSETS (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Goodwill And Other Intangible Assets Details Narrative | |||
Non-cash impairment charge | $5,800 | ||
Amortization expense | $1,700 | $2,000 |
4_INVENTORY_Details
4. INVENTORY (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Details | ||
Finished goods | $10,460 | $12,286 |
Raw materials | 2,286 | 2,780 |
Work in progress | 370 | 360 |
Total | $13,116 | $15,426 |
5_EQUITY_Details
5. EQUITY (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Equity [Abstract] | |
Balance at December 31, 2014 | $81,290 |
Stock based compensation | 109 |
Foreign currency translation adjustment | -26 |
Net loss | -8,831 |
Balance at March 31, 2015 | $72,542 |
5_EQUITY_Details_1
5. EQUITY (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Balance at December 31, 2014 | ($1,307) | |
Current period other comprehensive loss | -8,857 | -13,807 |
Balance at March 31, 2015 | -1,333 | |
Foreign Currency Translation Adjustment | ||
Balance at December 31, 2014 | -125 | |
Current period other comprehensive loss | -1,182 | |
Balance at March 31, 2015 | -1,307 | |
Employee Benefit Plan | ||
Balance at December 31, 2014 | -26 | |
Current period other comprehensive loss | ||
Balance at March 31, 2015 | -26 | |
Accumulated Other Comprehensive Loss | ||
Balance at December 31, 2014 | -151 | |
Current period other comprehensive loss | -1,182 | |
Balance at March 31, 2015 | ($1,333) |
6_LONGTERM_DEBT_AND_OBLIGATION2
6. LONG-TERM DEBT AND OBLIGATIONS (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Long-term Debt, Unclassified [Abstract] | ||
Notes payables | $1,125 | $1,193 |
Convertible promissory notes, 4.0%: maturing at various dates through 2016 | 624 | 832 |
Capitalized lease obligations and other financing | 1,945 | 1,044 |
Total debt and obligations | 3,694 | 3,069 |
Long-term debt and obligations due within one year | -2,623 | -1,884 |
Long-term debt and obligations | $1,071 | $1,185 |
6_LONGTERM_DEBT_AND_OBLIGATION3
6. LONG-TERM DEBT AND OBLIGATIONS (Details Narrative) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Issuance of common stock | 337,278 | |
Calculated borrowing base | $1,230 | |
Outstanding under letters of credit | 4,100 | |
Outstanding under borrowings | 3,200 | |
Unused credit facility | $5,000 | |
Minimum [Member] | ||
Obligations bore interest rates | 4.00% | 4.00% |
Maximum [Member] | ||
Obligations bore interest rates | 18.40% | 18.40% |
7_OTHER_INCOME_EXPENSE_NET_Det
7. OTHER INCOME (EXPENSE), NET (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Other Income Expense Net Details | |||
Interest income | $4 | ||
Interest expense | -95 | -78 | |
Foreign currency | -71 | -15 | |
Other | 280 | -628 | |
Total other (expense) income, net | 114 | -717 | |
Loss related to the sale of assets held for sale | $300 | $600 |
8_SUPPLEMENTAL_CASH_FLOW_INFOR2
8. SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for income taxes | $20 | |
Cash paid for interest | 95 | 78 |
Cash received from interest | $5 |
9_LOSS_PER_SHARE_Details_Narra
9. LOSS PER SHARE (Details Narrative) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Anti-Dilutive securities not included in the computation of diluted loss per share | 6,603 | 32,480 |
11_RELATED_PARTY_TRANSACTIONS_
11. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Related Party Transactions [Abstract] | |||
Purchases from Related Party | $0 | $150 | |
Accounts Payable, Related Party | 100 | 300 | |
Lease payments, Related Party | $200 | $200 |