Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 10, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | XONE | |
Entity Registrant Name | ExOne Co | |
Entity Central Index Key | 1,561,627 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 16,067,620 |
Condensed Statement of Consolid
Condensed Statement of Consolidated Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue | ||
Revenue - third party | $ 8,379 | $ 6,791 |
Revenue - related party | 35 | 2 |
Revenue | 8,414 | 6,793 |
Cost of sales | 6,538 | 6,793 |
Gross profit | 1,876 | 0 |
Operating expenses | ||
Research and development | 1,893 | 1,734 |
Selling, general and administrative | 5,325 | 6,118 |
Total operating expenses | 7,218 | 7,852 |
Loss from operations | (5,342) | (7,852) |
Other expense (income) | ||
Interest expense | 232 | 28 |
Other (income) expense - net | (93) | (150) |
Total other (income) expense | 139 | (122) |
Loss before income taxes | (5,481) | (7,730) |
Benefit for income taxes | (4) | (59) |
Net loss | $ (5,477) | $ (7,671) |
Net loss per common share: | ||
Basic | $ (0.35) | $ (0.53) |
Diluted | $ (0.35) | $ (0.53) |
Comprehensive loss: | ||
Net loss | $ (5,477) | $ (7,671) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 2,048 | (5,348) |
Comprehensive loss | $ (3,429) | $ (13,019) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 31,265 | $ 19,342 |
Accounts receivable - net of allowance of $1,975 (2016) and $1,920 (2015) | 5,039 | 9,368 |
Inventories - net | 19,388 | 19,839 |
Prepaid expenses and other current assets | 2,325 | 2,918 |
Total current assets | 58,017 | 51,467 |
Property and equipment - net | 56,775 | 54,832 |
Other noncurrent assets | 1,570 | 1,659 |
Total assets | 116,362 | 107,958 |
Current liabilities: | ||
Current portion of long-term debt | 139 | 138 |
Current portion of capital leases | 84 | 82 |
Accounts payable | 2,210 | 3,231 |
Accrued expenses and other current liabilities | 5,627 | 6,410 |
Deferred revenue and customer prepayments | 7,465 | 7,103 |
Total current liabilities | 15,525 | 16,964 |
Long-term debt - net of current portion | 1,777 | 1,812 |
Capital leases - net of current portion | 61 | 81 |
Other noncurrent liabilities | 1 | 28 |
Total liabilities | $ 17,364 | $ 18,885 |
Contingencies and commitments | ||
Stockholders' equity | ||
Common stock, $0.01 par value, 200,000,000 shares authorized, 15,992,785 (2016) and 14,446,967 (2015) shares issued and outstanding | $ 160 | $ 144 |
Additional paid-in capital | 169,965 | 156,627 |
Accumulated deficit | (59,640) | (54,163) |
Accumulated other comprehensive loss | (11,487) | (13,535) |
Total stockholders' equity | 98,998 | 89,073 |
Total liabilities and stockholders' equity | $ 116,362 | $ 107,958 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 1,975 | $ 1,920 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 15,992,785 | 14,446,967 |
Common stock, shares outstanding | 15,992,785 | 14,446,967 |
Condensed Statement of Consoli5
Condensed Statement of Consolidated Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities | ||
Net loss | $ (5,477) | $ (7,671) |
Adjustments to reconcile net loss to cash used for operations: | ||
Depreciation and amortization | 1,413 | 1,218 |
Deferred income taxes | (27) | (79) |
Equity-based compensation | 312 | 403 |
Provision for bad debts | 5 | (128) |
Amortization of debt issuance costs | 204 | 0 |
Changes in fair value of contingent consideration | 0 | 3 |
Changes in assets and liabilities, excluding effects of foreign currency translation adjustments: | ||
Decrease in accounts receivable | 4,494 | 2,628 |
Increase in inventories | (312) | (1,916) |
Decrease (increase) in prepaid expenses and other assets | 469 | (489) |
(Decrease) increase in accounts payable | (1,091) | 1,267 |
Decrease in accrued expenses and other liabilities | (1,005) | (328) |
Increase in deferred revenue and customer prepayments | 23 | 996 |
Cash used for operating activities | (992) | (4,096) |
Investing activities | ||
Capital expenditures | (180) | (1,769) |
Cash used for investing activities | (180) | (1,769) |
Financing activities | ||
Net proceeds from issuance of common stock - Registered direct offering to a related party | 12,461 | 0 |
Net proceeds from issuance of common stock - At the market offerings | 596 | 0 |
Payments on long-term debt | (34) | (32) |
Payments on capital and financing leases | (20) | (125) |
Cash provided by (used for) financing activities | 13,003 | (157) |
Effect of exchange rate changes on cash and cash equivalents | 92 | (79) |
Net change in cash and cash equivalents | 11,923 | (6,101) |
Cash and cash equivalents at beginning of period | 19,342 | 36,202 |
Cash and cash equivalents at end of period | 31,265 | 30,101 |
Supplemental disclosure of noncash investing and financing activities | ||
Property and equipment included in accounts payable | 0 | 13 |
Property and equipment included in accrued expenses and other current liabilities | 50 | 0 |
Common stock offering costs included in accrued expenses and other current liabilities | 15 | 0 |
Transfer of internally developed 3D printing machines from inventories to property and equipment for internal use or leasing activities | $ 1,459 | $ 2,506 |
Condensed Statement of Changes
Condensed Statement of Changes in Consolidated Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Dec. 31, 2014 | $ 118,545 | $ 144 | $ 154,902 | $ (28,298) | $ (8,203) |
Beginning Balance, Shares at Dec. 31, 2014 | 14,417,000 | ||||
Net loss | (7,671) | (7,671) | |||
Other comprehensive income (loss) | (5,348) | (5,348) | |||
Equity-based compensation | 403 | 403 | |||
Common stock issued from equity incentive plan, shares | 11,000 | ||||
Ending Balance at Mar. 31, 2015 | 105,929 | $ 144 | 155,305 | (35,969) | (13,551) |
Ending Balance, Shares at Mar. 31, 2015 | 14,428,000 | ||||
Beginning Balance at Dec. 31, 2015 | $ 89,073 | $ 144 | 156,627 | (54,163) | (13,535) |
Beginning Balance, Shares at Dec. 31, 2015 | 14,446,967 | 14,447,000 | |||
Registered direct offering of common stock to a related party, net of issuance costs | $ 12,447 | $ 15 | 12,432 | ||
Registered direct offering of common stock to a related party, net of issuance costs, Shares | 1,424,000 | ||||
At the market offerings of common stock, net of issuance costs | 595 | $ 1 | 594 | ||
At the market offerings of common stock, net of issuance costs, Shares | 92,000 | ||||
Net loss | (5,477) | (5,477) | |||
Other comprehensive income (loss) | 2,048 | 2,048 | |||
Equity-based compensation | 312 | 312 | |||
Common stock issued from equity incentive plan, shares | 30,000 | ||||
Ending Balance at Mar. 31, 2016 | $ 98,998 | $ 160 | $ 169,965 | $ (59,640) | $ (11,487) |
Ending Balance, Shares at Mar. 31, 2016 | 15,992,785 | 15,993,000 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation Organization The ExOne Company (“ExOne”) is a corporation organized under the laws of the state of Delaware. ExOne was formed on January 1, 2013, when The Ex One Company, LLC, a Delaware limited liability company, merged with and into a Delaware corporation, which survived and changed its name to The ExOne Company (the “Reorganization”). As a result of the Reorganization, The Ex One Company, LLC became ExOne, the common and preferred interest holders of The Ex One Company, LLC became holders of common stock and preferred stock, respectively, of ExOne, and the subsidiaries of The Ex One Company, LLC became the subsidiaries of ExOne. The condensed consolidated financial statements include the accounts of ExOne, its wholly-owned subsidiaries, ExOne Americas LLC (United States), ExOne GmbH (Germany), ExOne Property GmbH (Germany); MWT—Gesellschaft für Industrielle Mikrowellentechnik mbH (Germany); ExOne KK (Japan); ExOne Italy S.r.l (Italy); and effective in July 2015, ExOne Sweden AB (Sweden). Collectively, the consolidated group is referred to as the “Company”. Basis of Presentation The condensed consolidated financial statements of the Company are unaudited. The condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary by management to fairly state the results of operations, financial position and cash flows of the Company. All material intercompany transactions and balances have been eliminated in consolidation. The results reported in these condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire year. The December 31, 2015 condensed consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). This Quarterly Report on Form 10-Q should be read in connection with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, which includes all disclosures required by GAAP. Recently Issued Accounting Guidance The Company considers the applicability and impact of all Accounting Standard Updates (“ASUs”) as issued by the Financial Accounting Standards Board (“FASB”). Recently issued ASUs not listed below were assessed and determined to be either not applicable or are currently expected to have no impact on the consolidated financial statements of the Company. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This ASU created a comprehensive framework for all entities in all industries to apply in the determination of when to recognize revenue, and, therefore, supersedes virtually all existing revenue recognition requirements and guidance. This framework is expected to provide a consistent and comparable methodology for revenue recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date,” which deferred the effective date of this guidance for the Company until January 1, 2019, or January 1, 2018, in the event that the Company no longer qualifies as an EGC. Early adoption is permitted, but the Company may adopt the changes no earlier than January 1, 2017 (regardless of EGC status). In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations”, which serves to clarify the implementation guidance issued in ASU 2014-09 with respect to principal versus agent considerations in an arrangement. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing”, which serves to clarify the implementation guidance issued in ASU 2014-09 with respect to identifying performance obligations in an arrangement and accounting for licensing arrangements. Management is currently evaluating the potential impact of these collective changes on the consolidated financial statements of the Company. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” Under GAAP, continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Even if an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. Because there is no guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related note disclosures, there is diversity in practice whether, when, and how an entity discloses the relevant conditions and events in its financial statements. As a result, this ASU requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that financial statements are issued. Substantial doubt is defined as an indication that it is probable that an entity will be unable to meet its obligations as they become due within one year after the date that financial statements are issued. If management has concluded that substantial doubt exists, then the following disclosures should be made in the financial statements: (i) principal conditions or events that raised the substantial doubt, (ii) management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, (iii) management’s plans that alleviated the initial substantial doubt or, if substantial doubt was not alleviated, management’s plans that are intended to at least mitigate the conditions or events that raise substantial doubt, and (iv) if the latter in (iii) is disclosed, an explicit statement that there is substantial doubt about the entity’s ability to continue as a going concern. This ASU becomes effective for the Company on December 31, 2016. Subsequent to adoption, this ASU will need to be applied by management at the end of each annual period and interim period therein to determine what, if any, impact there will be on the consolidated financial statements of the Company in a given reporting period. In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest: Further, in August 2015, the FASB issued ASU 2015-15, “Interest – Imputation of Interest: This ASU requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset, with an exception for line of credit arrangements. Amortization of debt issuance costs will continue to be reported as interest expense. This ASU becomes effective for the Company on December 31, 2016. Early adoption is permitted. The ASU will be applied retrospectively to each prior period presented. Management has determined that the adoption of this ASU will not have a significant impact on the consolidated financial statements of the Company In July 2015, the FASB issued ASU 2015-11, “Inventory: .” This ASU requires inventories to be measured at the lower of cost and net realizable value, with net realizable value defined as the estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU becomes effective for the Company on January 1, 2017. Early adoption is permitted. The ASU will be applied prospectively in the interim or annual period adopted. Management has determined that the adoption of this ASU will not have an impact on the consolidated financial statements of the Company In February 2016, the FASB issued ASU 2016-02, “Leases.” As a result of this ASU, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. As a result of this ASU, lessor accounting is largely unchanged and lessees will no longer be provided with a source of off-balance sheet financing. This ASU becomes effective for the Company on January 1, 2019. Early adoption is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. Management is currently evaluating the In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting.” This ASU simplifies certain aspects of accounting for equity-based compensation, including (i) accounting for income taxes, (ii) accounting for pre-vesting forfeitures and (iii) certain classification and disclosure elements. This ASU becomes effective for the Company on January 1, 2018. Early adoption is permitted. Management is currently evaluating the |
Liquidity
Liquidity | 3 Months Ended |
Mar. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Liquidity | Note 2. Liquidity On February 6, 2013, the Company commenced an initial public offering of 6,095,000 shares of its common stock at a price to the public of $18.00 per share, of which 5,483,333 shares of common stock were sold by the Company and 611,667 shares of common stock were sold by a selling stockholder (including consideration of the exercise of the underwriters’ over-allotment option). Following completion of the offering on February 12, 2013, the Company received net proceeds of approximately $91,996 (net of underwriting commissions). On September 9, 2013, the Company commenced a secondary public offering of 3,054,400 shares of its common stock at a price to the public of $62.00 per share, of which 1,106,000 shares of common stock were sold by the Company and 1,948,400 shares of common stock were sold by selling stockholders (including consideration of the exercise of the underwriters’ over-allotment option). Following completion of the offering on September 13, 2013, the Company received net proceeds of approximately $65,315 (net of underwriting commissions). On January 8, 2016, the Company announced that it had entered into an At Market Issuance Sales Agreement (“ATM”) with FBR Capital Markets & Co. (“FBR”) and MLV & Co. LLC (“MLV”) pursuant to which FBR and MLV agreed to act as distribution agents in the sale of up to $50,000 in the aggregate of ExOne common stock in “at the market offerings” as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”). The Company’s ongoing ability to issue and sell shares of common stock under the ATM is dependent on its ability to use its shelf Registration Statement on Form S-3 (the “Shelf”), as filed on April 10, 2015. As a result of the Company’s delinquent filing of its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015, the Company’s offerings and sales under the Shelf (and therefore the ATM) are currently suspended. The Company expects to regain its eligibility to use its Shelf in July 2016. On January 11, 2016, the Company announced that it had entered into a subscription agreement with Rockwell Forest Products, Inc. and S. Kent Rockwell for the registered direct offering and sale of 1,423,877 shares of ExOne common stock at a per share price of $9.13 (a $0.50 premium from the closing price on the close of business on January 8, 2016). The terms of this transaction were reviewed and approved by a sub-committee of independent members of the Board of Directors of the Company (which included each of the members of the Audit Committee of the Board of Directors). The sub-committee of independent members of the Board of Directors of the Company were advised on the transaction by an independent financial advisor and independent legal counsel. Concurrent with the approval of this sale of common stock under the terms identified, a separate sub-committee of independent members of the Board of Directors of the Company approved the termination of the Company’s revolving credit facility with RHI Investments, LLC. Following completion of the registered direct offering on January 13, 2016, the Company received gross proceeds of approximately $13,000. Net proceeds to the Company from the sale of common stock in the registered direct offering were approximately $12,447 (after deducting offering costs of approximately $553). At March 31, 2016, approximately $14 in offering costs are included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheet. The Company has incurred a net loss in each of its annual periods since its inception. As shown in the accompanying condensed statement of consolidated operations and comprehensive loss, the Company incurred a net loss of approximately $5,477 for the quarter ended March 31, 2016. As noted above, the Company has received unrestricted net proceeds from the sale of its common stock of approximately $170,353 to fund its operations. At March 31, 2016, the Company had approximately $31,265 in cash and cash equivalents. Management believes that the Company’s existing capital resources will be sufficient to support the Company’s operating plan. If management anticipates that the Company’s actual results will differ from its operating plan, management believes it has sufficient capabilities to enact cost savings measures to preserve capital. Further, the Company may seek to raise additional capital to support its growth through additional debt, equity or other alternatives or a combination thereof. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 3. Accumulated Other Comprehensive Loss The following table summarizes changes in the components of accumulated other comprehensive loss: Quarter Ended March 31, Foreign currency translation adjustments 2016 2015 Balance at beginning of period $ (13,535 ) $ (8,203 ) Other comprehensive income (loss) 2,048 (5,348 ) Balance at end of period $ (11,487 ) $ (13,551 ) Foreign currency translation adjustments consist of (i) the effect of translation of functional currency financial statements (denominated in the Euro and Japanese Yen) to the reporting currency of the Company (United States dollar) and (ii) certain long-term intercompany transactions between subsidiaries for which settlement is not planned or anticipated in the foreseeable future. There were no tax impacts related to income tax rate changes and no amounts were reclassified to earnings for either of the periods presented. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Note 4. Loss Per Share The Company presents basic and diluted net loss per common share amounts. Basic net loss per share is calculated by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the applicable period. Diluted net loss per share is calculated by dividing net loss available to common shareholders by the weighted average number of common shares and common equivalent shares outstanding during the applicable period. As the Company incurred a net loss during each of the quarters ended March 31, 2016 and 2015, basic average shares outstanding and diluted average shares outstanding were the same because the effect of potential shares of common stock, including incentive stock options (205,803 – 2016 and 207,803 – 2015) and unvested restricted stock issued (74,835 – 2016 and 92,503 – 2015), was anti-dilutive. The information used to compute basic and diluted net loss per common share was as follows: Quarter Ended March 31, 2016 2015 Net loss $ (5,477 ) $ (7,671 ) Weighted average shares outstanding (basic and diluted) 15,745,354 14,423,237 Net loss per common share: Basic $ (0.35 ) $ (0.53 ) Diluted $ (0.35 ) $ (0.53 ) |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5. Inventories Inventories consist of the following: March 31, December 31, 2016 2015 Raw materials and components $ 9,744 $ 9,467 Work in process 4,772 6,048 Finished goods 4,872 4,324 $ 19,388 $ 19,839 Raw materials and components consist of (i) consumable materials and (ii) component parts and subassemblies associated with 3D printing machine manufacturing and support activities. Work in process consists of 3D printing machines and other products in varying stages of completion. Finished goods consist of 3D printing machines and other products prepared for delivery in accordance with customer specifications. At March 31, 2016 and December 31, 2015, the allowance for slow-moving and obsolete inventories was approximately $1,928 and $1,909, respectively, and has been reflected as a reduction to inventories (principally raw materials and components). Included in the allowance for slow-moving and obsolete inventories at both March 31, 2016 and December 31, 2015, is approximately $507 associated with the Company’s laser micromachining product line which was discontinued at the end of 2014. |
Impairment
Impairment | 3 Months Ended |
Mar. 31, 2016 | |
Asset Impairment Charges [Abstract] | |
Impairment | Note 6. Impairment During the quarter ended March 31, 2016, as a result of continued operating losses and cash flow deficiencies, the Company identified a triggering event requiring a test for the recoverability of long-lived assets held for use at the asset group level. Assessing the recoverability of long-lived assets held for use requires significant judgments and estimates by management. For purposes of testing long-lived assets for recoverability, the Company operates as three separate asset groups: United States, Europe and Japan. In assessing the recoverability of long-lived assets held for use, the Company determined the carrying amount of long-lived assets held for use to be in excess of the estimated future undiscounted net cash flows of the related assets. The Company proceeded to determine the fair value of its long-lived assets held for use, principally through use of the market approach. The Company’s use of the market approach included consideration of market transactions for comparable assets. Management concluded that the fair value of long-lived assets held for use exceeded their carrying value and as such no impairment loss was recorded . A significant decrease in the market price of a long-lived asset, adverse change in the use or condition of a long-lived asset, adverse change in the business climate or legal or regulatory factors impacting a long-lived asset and continued operating losses and cash flow deficiencies associated with a long-lived asset, among other indicators, could cause a future assessment to be performed which may result in an impairment of long-lived assets held for use, resulting in a material adverse effect on the financial position and results of operations of the Company. |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Note 7. Contingencies and Commitments The Company and its subsidiaries are subject to various litigation, claims, and proceedings which have been or may be instituted or asserted from time to time in the ordinary course of business. Management does not believe that the outcome of any pending or threatened matters will have a material adverse effect, individually or in the aggregate, on the financial position, results of operations or cash flows of the Company. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | Note 8. Equity-Based Compensation On January 24, 2013, the Board of Directors of the Company adopted the 2013 Equity Incentive Plan (the “Plan”). In connection with the adoption of the Plan, 500,000 shares of common stock were reserved for issuance pursuant to the Plan, with automatic increases in such reserve available each year annually on January 1 from 2014 through 2023 equal to the lesser of (i) 3.0% of the total outstanding shares of common stock as of December 31 of the immediately preceding year or (ii) a number of shares of common stock determined by the Board of Directors, provided that the maximum number of shares authorized under the Plan will not exceed 1,992,241 shares, subject to certain adjustments. The following table summarizes the total equity-based compensation expense recognized for awards issued under the Plan: Quarter Ended March 31, 2016 2015 Equity-based compensation expense recognized: Incentive stock options $ 103 $ 195 Restricted stock 209 208 Total equity-based compensation expense before income taxes 312 403 Benefit for income taxes* — — Total equity-based compensation expense net of income taxes $ 312 $ 403 * The benefit for income taxes from equity-based compensation for each of the periods presented has been determined to be $0 based on valuation allowances against net deferred tax assets. At March 31, 2016, total future compensation expense related to unvested awards yet to be recognized by the Company was approximately $291 for incentive stock options (“ISOs”) and $931 for restricted stock. Total future compensation expense related to unvested awards yet to be recognized by the Company is expected to be recognized over a weighted-average remaining vesting period of approximately 1.2 years. The activity for ISOs for the quarters ended March 31, 2016 and 2015, was as follows: Quarter Ended March 31, 2016 2015 Number ISOs Weighted Weighted Average Grant Date Fair Value Number ISOs Weighted Weighted Average Grant Date Fair Value Outstanding at beginning of period 210,970 $ 17.43 $ 10.67 215,137 $ 17.35 $ 10.62 ISOs granted — $ — $ — — $ — $ — ISOs exercised — $ — $ — — $ — $ — ISOs forfeited (4,334 ) $ 15.74 $ 9.60 (7,334 ) $ 17.54 $ 11.03 ISOs expired (833 ) $ 18.00 $ 11.03 — $ — $ — Outstanding at end of period 205,803 $ 17.39 $ 10.65 207,803 $ 17.34 $ 10.61 ISOs exercisable at end of period 170,470 $ 17.74 $ 10.86 96,472 $ 18.00 $ 11.03 ISOs expected to vest at end of period 31,358 $ 15.74 $ 9.60 106,248 $ 16.79 $ 10.26 At March 31, 2016, there was no intrinsic value associated with ISOs exercisable or ISOs expected to vest. The weighted average remaining contractual term of ISOs exercisable and expected to vest at March 31, 2016, was approximately 7.1 years and 8.7 years, respectively. There were no exercises during the quarter ended March 31, 2016 or the quarter ended March 31, 2015. The activity for restricted stock for the quarters ended March 31, 2016 and 2015, was as follows: Quarter Ended March 31, 2016 2015 Shares of Restricted Stock Weighted Average Grant Date Fair Value Shares of Restricted Stock Weighted Average Grant Date Fair Value Outstanding at beginning of period 77,670 $ 19.57 80,834 $ 22.78 Restricted stock granted 27,500 $ 8.90 22,500 $ 14.17 Restricted stock vested (30,001 ) $ 21.51 (10,831 ) $ 34.80 Restricted stock forfeited (334 ) $ 62.53 — $ — Outstanding at end of period 74,835 $ 14.68 92,503 $ 19.28 Restricted stock expected to vest at end of period 74,835 $ 14.68 92,503 $ 19.28 * Restricted stock vesting during the quarters ended March 31, 2016 and 2015, had a fair value of approximately $271 and $158, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes The benefit for income taxes for the quarters ended March 31, 2016 and 2015 was ($4) and ($59), respectively. The Company has completed a discrete period computation of its benefit for income taxes for each of the periods presented. Discrete period computation is as a result of (i) jurisdictions with losses before income taxes for which no tax benefit can be recognized and (ii) an inability to generate reliable estimates for results in certain jurisdictions as a result of inconsistencies in generating net operating profits (losses) in those jurisdictions. The effective tax rate for the quarters ended March 31, 2016 and 2015 was 0.1% (benefit on a loss) and 0.8% (benefit on a loss), respectively. The effective tax rate differs from the United States federal statutory rate of 34.0% for each of the periods presented primarily due to net changes in valuation allowances for the periods. The Company has provided a valuation allowance for its net deferred tax assets as a result of the Company not generating consistent net operating profits in jurisdictions in which it operates. As such, any benefit from deferred taxes in either quarterly period has been fully offset by changes in the valuation allowance for net deferred tax assets. The Company continues to assess its future taxable income by jurisdiction based on (i) recent historical operating results, (ii) the expected timing of reversal of temporary differences, (iii) various tax planning strategies that the Company may be able to enact in future periods, (iv) the impact of potential operating changes on the business and (v) forecast results from operations in future periods based on available information at the end of each reporting period. To the extent that the Company is able to reach the conclusion that deferred tax assets are realizable based on any combination of the above factors, a reversal of existing valuation allowances may occur. The Company has a liability for uncertain tax positions related to certain capitalized expenses and intercompany transactions. At March 31, 2016 and December 31, 2015, the liability for uncertain tax positions was approximately $813 and $781, respectively, and is included in accrued expenses and other current liabilities in the condensed consolidated balance sheet. At March 31, 2016 and December 31, 2015, the Company had an additional liability for uncertain tax positions related to its ExOne GmbH (Germany) subsidiary of approximately $211 and $195, respectively, which were fully offset against net operating loss carryforwards. At March 31, 2016 and December 31, 2015, the Company had an additional liability for uncertain tax positions related to its ExOne KK (Japan) subsidiary of approximately $347 and $285, respectively, which were fully offset against net operating loss carryforwards. At March 31, 2016, our ExOne GmbH (2010-2013) and ExOne Property GmbH (2013) subsidiaries were under examination by local taxing authorities. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 Observable inputs such as quoted prices in active markets for identical investments that the Company has the ability to access. Level 2 Inputs include: Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in inactive markets; Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Inputs that are derived principally from, or corroborated by, observable market data by correlation or other means. Level 3 Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The Company is required to disclose its estimate of the fair value of material financial instruments, including those recorded as assets or liabilities in its consolidated financial statements, in accordance with GAAP. At March 31, 2016 and December 31, 2015, the Company had no financial instruments (assets or liabilities) measured at fair value on a recurring basis. The carrying values and fair values of other financial instruments (assets and liabilities) not required to be recorded at fair value were as follows: March 31, December 31, 2016 2015 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ 31,265 $ 31,265 $ 19,342 $ 19,342 Current portion of long-term debt $ 139 $ 139 $ 138 $ 138 Current portion of capital leases $ 84 $ 84 $ 82 $ 82 Long-term debt - net of current portion $ 1,777 $ 1,772 $ 1,812 $ 1,800 Capital leases - net of current portion $ 61 $ 61 $ 81 $ 81 The carrying amounts of cash and cash equivalents, current portion of long-term debt and current portion of capital and financing leases approximate fair value due to their short-term maturities. Cash and cash equivalents are classified in Level 1; current portion of long-term debt, current portion of capital and financing leases, long-term debt – net of current portion and capital and financing leases – net of current portion are classified in Level 2. |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Mar. 31, 2016 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 11. Concentration of Credit Risk During the quarters ended March 31, 2016 and 2015, the Company conducted a significant portion of its business with a limited number of customers. For the quarters ended March 31, 2016 and 2015, the Company’s five most significant customers represented approximately 38.2% and 23.5% of total revenue, respectively. At March 31, 2016 and December 31, 2015, accounts receivable from the Company’s five most significant customers were approximately $1,937 and $4,808, respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12. Related Party Transactions Revolving Credit Facility with a Related Party On October 23, 2015, ExOne and its ExOne Americas LLC and ExOne GmbH subsidiaries, as guarantors, entered into a Credit Agreement (the “Credit Agreement”) with RHI Investments, LLC (“RHI”), a related party, on a $15,000 revolving credit facility to (i) assist the Company in its efforts to finance customer acquisition of its 3D printing machines and 3D printed and other products and services and (ii) provide additional funding for working capital and general corporate purposes. RHI was determined to be a related party based on common control by the Chairman and CEO of the Company. Prior to execution, the Credit Agreement was subject to review and approval by a sub-committee of independent members of the Board of Directors of the Company (which included each of the members of the Audit Committee of the Board of Directors). The Company incurred approximately $215 in debt issuance costs associated with the Credit Agreement. On January 10, 2016, the Company delivered notice to RHI of its intent to terminate the Credit Agreement in connection with the closing of a registered direct offering of common stock to an entity under common control by the Chairman and CEO of the Company. There were no borrowings under the Credit Agreement from January 1, 2016 through the effective date of its termination, January 13, 2016. In connection with the termination, the Company settled its remaining accrued interest under the Credit Agreement of approximately $5 relating to the commitment fee on the unused portion of the revolving credit facility . In addition, during the quarter ended March 31, 2016, the Company recorded approximately $204 to interest expense related to the accelerated amortization of debt issuance costs. Upon termination of the Credit Agreement, all liens and guaranties in respect thereof were released. Other Refer to Note 2 for further discussion relating to two separate equity offerings during the quarter ended March 31, 2016, certain elements of which qualify as related party transactions. Revenues Sales of products and/or services to related parties for the quarters ended March 31, 2016 and 2015 were approximately $35 and $2, respectively. None of the transactions met a threshold requiring review and approval by the Audit Committee of the Board of Directors of the Company. Amounts due from related parties at March 31, 2016 and December 31, 2015, were approximately $19 and $151, respectively and are reflected in accounts receivable – net, in the accompanying condensed consolidated balance sheet. At March 31, 2016 and December 31, 2015, the Company continued to defer approximately $17 and $37, respectively, of consideration associated with sales to related parties for which products and/or services remain undelivered to the customer, with such amounts reflected in deferred revenue and customer prepayments in the accompanying condensed consolidated balance sheet. Expenses In December 2014, the Company entered into a consulting arrangement with Hans J. Sack who was subsequently appointed to the Board of Directors of the Company on December 17, 2014. Total consideration under the consulting arrangement was approximately $75, of which approximately $50 was included in selling, general and administrative expenses in the condensed statement of consolidated operations and comprehensive loss during the quarter ended March 31, 2015, based on the services rendered (the remaining amount having been recorded by the Company during the quarter ended December 31, 2014). This arrangement was approved by the Audit Committee of the Board of Directors of the Company in connection with the appointment of Hans J. Sack to the Board of Directors of the Company. In March 2015, Hans J. Sack resigned from the Board of Directors of the Company to accept a position as President of the Company. Separate from the consulting arrangement further described above, the Company has purchased website design services and the corporate use of an airplane and leased office space from related parties under common control by the Chairman and CEO of the Company. The cost of these products and/or services for the quarters ended March 31, 2016 and 2015 were approximately $4 and $9, respectively. None of the transactions met a threshold requiring review and approval by the Audit Committee of the Board of Directors of the Company. Amounts due to these related parties at March 31, 2016, were approximately $1 which is reflected in accounts payable in the accompanying condensed consolidated balance sheet. Amounts due to these related parties at December 31, 2015, were approximately $15 of which approximately $1 and $14 are reflected in accounts payable and accrued expenses and other current liabilities, respectively, in the accompanying condensed consolidated balance sheet. The Company also receives the benefit of the corporate use of an airplane from a related party under common control by the Chairman and CEO of the Company for no consideration. The Company estimates the fair market value of the benefits received during the quarters ended March 31, 2016 and 2015 were approximately $2 and $17, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13. Subsequent Events In April 2016, the Company committed to a plan to consolidate certain of its 3D printing operations in its Auburn, Washington facility into its North Las Vegas, Nevada facility and reorganize certain of its corporate departments as part of its 2016 operating plan. The Company expects to incur a charge associated with these actions (including certain lease termination and other contractual termination costs, employee termination costs and asset impairments) of approximately $500 during the quarter ended June 30, 2016. Final amounts are subject to continuing negotiation with third parties and completion of certain planned asset disposals. The Company has evaluated all of its activities and concluded that no other subsequent events have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the notes to the condensed consolidated financial statements, except as described above. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization | Organization The ExOne Company (“ExOne”) is a corporation organized under the laws of the state of Delaware. ExOne was formed on January 1, 2013, when The Ex One Company, LLC, a Delaware limited liability company, merged with and into a Delaware corporation, which survived and changed its name to The ExOne Company (the “Reorganization”). As a result of the Reorganization, The Ex One Company, LLC became ExOne, the common and preferred interest holders of The Ex One Company, LLC became holders of common stock and preferred stock, respectively, of ExOne, and the subsidiaries of The Ex One Company, LLC became the subsidiaries of ExOne. The condensed consolidated financial statements include the accounts of ExOne, its wholly-owned subsidiaries, ExOne Americas LLC (United States), ExOne GmbH (Germany), ExOne Property GmbH (Germany); MWT—Gesellschaft für Industrielle Mikrowellentechnik mbH (Germany); ExOne KK (Japan); ExOne Italy S.r.l (Italy); and effective in July 2015, ExOne Sweden AB (Sweden). Collectively, the consolidated group is referred to as the “Company”. Basis of Presentation The condensed consolidated financial statements of the Company are unaudited. The condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary by management to fairly state the results of operations, financial position and cash flows of the Company. All material intercompany transactions and balances have been eliminated in consolidation. The results reported in these condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire year. The December 31, 2015 condensed consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). This Quarterly Report on Form 10-Q should be read in connection with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, which includes all disclosures required by GAAP. |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance The Company considers the applicability and impact of all Accounting Standard Updates (“ASUs”) as issued by the Financial Accounting Standards Board (“FASB”). Recently issued ASUs not listed below were assessed and determined to be either not applicable or are currently expected to have no impact on the consolidated financial statements of the Company. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This ASU created a comprehensive framework for all entities in all industries to apply in the determination of when to recognize revenue, and, therefore, supersedes virtually all existing revenue recognition requirements and guidance. This framework is expected to provide a consistent and comparable methodology for revenue recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date,” which deferred the effective date of this guidance for the Company until January 1, 2019, or January 1, 2018, in the event that the Company no longer qualifies as an EGC. Early adoption is permitted, but the Company may adopt the changes no earlier than January 1, 2017 (regardless of EGC status). In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations”, which serves to clarify the implementation guidance issued in ASU 2014-09 with respect to principal versus agent considerations in an arrangement. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing”, which serves to clarify the implementation guidance issued in ASU 2014-09 with respect to identifying performance obligations in an arrangement and accounting for licensing arrangements. Management is currently evaluating the potential impact of these collective changes on the consolidated financial statements of the Company. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” Under GAAP, continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Even if an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. Because there is no guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related note disclosures, there is diversity in practice whether, when, and how an entity discloses the relevant conditions and events in its financial statements. As a result, this ASU requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that financial statements are issued. Substantial doubt is defined as an indication that it is probable that an entity will be unable to meet its obligations as they become due within one year after the date that financial statements are issued. If management has concluded that substantial doubt exists, then the following disclosures should be made in the financial statements: (i) principal conditions or events that raised the substantial doubt, (ii) management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, (iii) management’s plans that alleviated the initial substantial doubt or, if substantial doubt was not alleviated, management’s plans that are intended to at least mitigate the conditions or events that raise substantial doubt, and (iv) if the latter in (iii) is disclosed, an explicit statement that there is substantial doubt about the entity’s ability to continue as a going concern. This ASU becomes effective for the Company on December 31, 2016. Subsequent to adoption, this ASU will need to be applied by management at the end of each annual period and interim period therein to determine what, if any, impact there will be on the consolidated financial statements of the Company in a given reporting period. In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest: Further, in August 2015, the FASB issued ASU 2015-15, “Interest – Imputation of Interest: This ASU requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset, with an exception for line of credit arrangements. Amortization of debt issuance costs will continue to be reported as interest expense. This ASU becomes effective for the Company on December 31, 2016. Early adoption is permitted. The ASU will be applied retrospectively to each prior period presented. Management has determined that the adoption of this ASU will not have a significant impact on the consolidated financial statements of the Company In July 2015, the FASB issued ASU 2015-11, “Inventory: .” This ASU requires inventories to be measured at the lower of cost and net realizable value, with net realizable value defined as the estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU becomes effective for the Company on January 1, 2017. Early adoption is permitted. The ASU will be applied prospectively in the interim or annual period adopted. Management has determined that the adoption of this ASU will not have an impact on the consolidated financial statements of the Company In February 2016, the FASB issued ASU 2016-02, “Leases.” As a result of this ASU, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. As a result of this ASU, lessor accounting is largely unchanged and lessees will no longer be provided with a source of off-balance sheet financing. This ASU becomes effective for the Company on January 1, 2019. Early adoption is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. Management is currently evaluating the In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting.” This ASU simplifies certain aspects of accounting for equity-based compensation, including (i) accounting for income taxes, (ii) accounting for pre-vesting forfeitures and (iii) certain classification and disclosure elements. This ASU becomes effective for the Company on January 1, 2018. Early adoption is permitted. Management is currently evaluating the |
Loss Per Share | The Company presents basic and diluted net loss per common share amounts. Basic net loss per share is calculated by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the applicable period. Diluted net loss per share is calculated by dividing net loss available to common shareholders by the weighted average number of common shares and common equivalent shares outstanding during the applicable period. |
Accumulated Other Comprehensi21
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Summary of Changes in the Components of Accumulated Other Comprehensive Loss | The following table summarizes changes in the components of accumulated other comprehensive loss: Quarter Ended March 31, Foreign currency translation adjustments 2016 2015 Balance at beginning of period $ (13,535 ) $ (8,203 ) Other comprehensive income (loss) 2,048 (5,348 ) Balance at end of period $ (11,487 ) $ (13,551 ) |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Common Share | The information used to compute basic and diluted net loss per common share was as follows: Quarter Ended March 31, 2016 2015 Net loss $ (5,477 ) $ (7,671 ) Weighted average shares outstanding (basic and diluted) 15,745,354 14,423,237 Net loss per common share: Basic $ (0.35 ) $ (0.53 ) Diluted $ (0.35 ) $ (0.53 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: March 31, December 31, 2016 2015 Raw materials and components $ 9,744 $ 9,467 Work in process 4,772 6,048 Finished goods 4,872 4,324 $ 19,388 $ 19,839 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Equity-Based Compensation Expense | The following table summarizes the total equity-based compensation expense recognized for awards issued under the Plan: Quarter Ended March 31, 2016 2015 Equity-based compensation expense recognized: Incentive stock options $ 103 $ 195 Restricted stock 209 208 Total equity-based compensation expense before income taxes 312 403 Benefit for income taxes* — — Total equity-based compensation expense net of income taxes $ 312 $ 403 The benefit for income taxes from equity-based compensation for each of the periods presented has been determined to be $0 based on valuation allowances against net deferred tax assets. |
Summary of Activity for ISOs | The activity for ISOs for the quarters ended March 31, 2016 and 2015, was as follows: Quarter Ended March 31, 2016 2015 Number ISOs Weighted Weighted Average Grant Date Fair Value Number ISOs Weighted Weighted Average Grant Date Fair Value Outstanding at beginning of period 210,970 $ 17.43 $ 10.67 215,137 $ 17.35 $ 10.62 ISOs granted — $ — $ — — $ — $ — ISOs exercised — $ — $ — — $ — $ — ISOs forfeited (4,334 ) $ 15.74 $ 9.60 (7,334 ) $ 17.54 $ 11.03 ISOs expired (833 ) $ 18.00 $ 11.03 — $ — $ — Outstanding at end of period 205,803 $ 17.39 $ 10.65 207,803 $ 17.34 $ 10.61 ISOs exercisable at end of period 170,470 $ 17.74 $ 10.86 96,472 $ 18.00 $ 11.03 ISOs expected to vest at end of period 31,358 $ 15.74 $ 9.60 106,248 $ 16.79 $ 10.26 |
Summary of Activity for Restricted Stock Awards | The activity for restricted stock for the quarters ended March 31, 2016 and 2015, was as follows: Quarter Ended March 31, 2016 2015 Shares of Restricted Stock Weighted Average Grant Date Fair Value Shares of Restricted Stock Weighted Average Grant Date Fair Value Outstanding at beginning of period 77,670 $ 19.57 80,834 $ 22.78 Restricted stock granted 27,500 $ 8.90 22,500 $ 14.17 Restricted stock vested (30,001 ) $ 21.51 (10,831 ) $ 34.80 Restricted stock forfeited (334 ) $ 62.53 — $ — Outstanding at end of period 74,835 $ 14.68 92,503 $ 19.28 Restricted stock expected to vest at end of period 74,835 $ 14.68 92,503 $ 19.28 Restricted stock vesting during the quarters ended March 31, 2016 and 2015, had a fair value of approximately $271 and $158, respectively |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Carrying Values and Fair Values of Other Financial Instruments | The carrying values and fair values of other financial instruments (assets and liabilities) not required to be recorded at fair value were as follows: March 31, December 31, 2016 2015 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ 31,265 $ 31,265 $ 19,342 $ 19,342 Current portion of long-term debt $ 139 $ 139 $ 138 $ 138 Current portion of capital leases $ 84 $ 84 $ 82 $ 82 Long-term debt - net of current portion $ 1,777 $ 1,772 $ 1,812 $ 1,800 Capital leases - net of current portion $ 61 $ 61 $ 81 $ 81 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
State of incorporation | Delaware |
Date of incorporation | Jan. 1, 2013 |
Liquidity - Additional Informat
Liquidity - Additional Information (Detail) - USD ($) | Jan. 13, 2016 | Jan. 11, 2016 | Jan. 08, 2016 | Sep. 13, 2013 | Sep. 09, 2013 | Feb. 12, 2013 | Feb. 06, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||
Net proceeds of secondary public offering | $ 596,000 | $ 0 | $ 170,353,000 | |||||||||
Sale of common stock, value | 595,000 | |||||||||||
Net income (loss) | (5,477,000) | |||||||||||
Cash and cash equivalents | $ 31,265,000 | $ 30,101,000 | $ 31,265,000 | $ 19,342,000 | $ 36,202,000 | |||||||
IPO [Member] | ||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||
Common stock, new issuances | 6,095,000 | |||||||||||
Common stock price per share | $ 18 | |||||||||||
Common stock, new shares sold by Company | 5,483,333 | |||||||||||
Common stock, new shares sold by stockholder | 611,667 | |||||||||||
Net proceeds of initial public offering | $ 91,996,000 | |||||||||||
Secondary Public Offering [Member] | ||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||
Common stock, new issuances | 3,054,400 | |||||||||||
Common stock price per share | $ 62 | |||||||||||
Common stock, new shares sold by Company | 1,106,000 | |||||||||||
Common stock, new shares sold by stockholder | 1,948,400 | |||||||||||
Net proceeds of secondary public offering | $ 65,315,000 | |||||||||||
At Market Issuance Offering [Member] | FBR Capital Markets & Co. and MLV & Co. LLC [Member] | ||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||
Common stock, new shares sold by Company | 91,940 | |||||||||||
Net proceeds of secondary public offering | $ 595,000 | |||||||||||
Percentage of commission on sale of common stock | 3.00% | |||||||||||
Reimbursement of certain legal expenses | $ 25,000 | |||||||||||
Gross proceeds from the sale of shares | 843,000 | |||||||||||
Offering costs | 248,000 | |||||||||||
Payments related to reimbursement of certain legal expenses and commissions | $ 50,000 | |||||||||||
At Market Issuance Offering [Member] | FBR Capital Markets & Co. and MLV & Co. LLC [Member] | Maximum [Member] | ||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||
Sale of common stock, value | $ 50,000,000 | |||||||||||
At Market Issuance Offering [Member] | FBR Capital Markets & Co. and MLV & Co. LLC [Member] | Weighted Average [Member] | ||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||
Common stock price per share | $ 9.17 | $ 9.17 | ||||||||||
At Market Issuance Offering [Member] | Accrued Expenses and Other Current Liabilities [Member] | FBR Capital Markets & Co. and MLV & Co. LLC [Member] | ||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||
Offering costs included in condensed consolidated balance sheet | $ 1,000 | $ 1,000 | ||||||||||
Registered Direct Offering [Member] | Rockwell Forest Products, Inc. and S. Kent Rockwell [Member] | ||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||
Common stock price per share | $ 9.13 | |||||||||||
Common stock, new shares sold by Company | 1,423,877 | |||||||||||
Net proceeds of secondary public offering | $ 12,447,000 | |||||||||||
Gross proceeds from the sale of shares | 13,000,000 | |||||||||||
Offering costs | $ 553,000 | |||||||||||
Premium per share on closing price | $ 0.50 | |||||||||||
Registered Direct Offering [Member] | Accrued Expenses and Other Current Liabilities [Member] | Rockwell Forest Products, Inc. and S. Kent Rockwell [Member] | ||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||
Offering costs included in condensed consolidated balance sheet | $ 14,000 | $ 14,000 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Loss - Summary of Changes in the Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Balance at beginning of period | $ (13,535) | $ (8,203) |
Other comprehensive income (loss) | 2,048 | (5,348) |
Balance at end of period | $ (11,487) | $ (13,551) |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Accumulated other comprehensive loss, tax | $ 0 | $ 0 |
Amounts reclassified to earnings from accumulated other comprehensive loss | $ 0 | $ 0 |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Incentive Stock Option [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential shares of anti-dilutive common stock | 205,803 | 207,803 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential shares of anti-dilutive common stock | 74,835 | 92,503 |
Loss Per Share - Computation of
Loss Per Share - Computation of Basic and Diluted Net Loss Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (5,477) | $ (7,671) |
Weighted average shares outstanding (basic and diluted) | 15,745,354 | 14,423,237 |
Net loss per common share: | ||
Basic | $ (0.35) | $ (0.53) |
Diluted | $ (0.35) | $ (0.53) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials and components | $ 9,744 | $ 9,467 |
Work in process | 4,772 | 6,048 |
Finished goods | 4,872 | 4,324 |
Inventories | $ 19,388 | $ 19,839 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Allowance for slow-moving and obsolete inventories | $ 1,928 | $ 1,909 |
Laser Micromachining Product [Member] | ||
Inventory [Line Items] | ||
Allowance for slow-moving and obsolete inventories | $ 507 | $ 507 |
Impairment - Additional Informa
Impairment - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Asset Impairment Charges [Abstract] | |
Long-lived assets held for use impairment loss | $ 0 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - USD ($) | Jan. 24, 2013 | Mar. 31, 2016 | Mar. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average remaining vesting period | 1 year 2 months 12 days | ||
Common stock issued related to employee stock option exercises | 0 | 0 | |
Incentive Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total future compensation expense | $ 291,000 | ||
Intrinsic value, ISOs expected to vest | 0 | ||
Intrinsic value, ISOs exercisable | $ 0 | ||
Weighted average remaining contractual term, exercisable | 7 years 1 month 6 days | ||
Weighted average remaining contractual term, expected to vest | 8 years 8 months 12 days | ||
Common stock issued related to employee stock option exercises | 0 | 0 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total future compensation expense | $ 931,000 | ||
2013 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for issuance | 500,000 | ||
Common Stock [Member] | 2013 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of outstanding shares of common stock | 3.00% | ||
Common Stock [Member] | 2013 Equity Incentive Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares authorized | 1,992,241 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Total Equity-Based Compensation Expense Recognized for All ISOs, Restricted Stock and Stock Bonus Awards (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Equity-based compensation expense recognized: | |||
Total equity-based compensation expense before income taxes | $ 312 | $ 403 | |
Benefit for income taxes | [1] | 0 | 0 |
Total equity-based compensation expense net of income taxes | 312 | 403 | |
Incentive Stock Option [Member] | |||
Equity-based compensation expense recognized: | |||
Total equity-based compensation expense before income taxes | 103 | 195 | |
Restricted Stock [Member] | |||
Equity-based compensation expense recognized: | |||
Total equity-based compensation expense before income taxes | $ 209 | $ 208 | |
[1] | The benefit for income taxes from equity-based compensation for each of the periods presented has been determined to be $0 based on valuation allowances against net deferred tax assets. |
Equity-Based Compensation - S37
Equity-Based Compensation - Summary of Total Equity-Based Compensation Expense Recognized for All ISOs, Restricted Stock and Stock Bonus Awards (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Benefit for income taxes from equity-based compensation | [1] | $ 0 | $ 0 |
[1] | The benefit for income taxes from equity-based compensation for each of the periods presented has been determined to be $0 based on valuation allowances against net deferred tax assets. |
Equity-Based Compensation - S38
Equity-Based Compensation - Summary of Activity for ISOs (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of ISOs, outstanding, Beginning Balance | 210,970 | 215,137 |
Number of ISOs, granted | 0 | 0 |
Number of ISOs, exercised | 0 | 0 |
Number of ISOs, forfeited | (4,334) | (7,334) |
Number of ISOs, expired | (833) | 0 |
Number of ISOs, outstanding, Ending Balance | 205,803 | 207,803 |
Number of ISOs, exercisable | 170,470 | 96,472 |
Number of ISOs, expected to vest, net of forfeitures | 31,358 | 106,248 |
Weighted Average Exercise Price, Beginning Balance | $ 17.43 | $ 17.35 |
Weighted Average Exercise Price, ISOs granted | 0 | 0 |
Weighted Average Exercise Price, ISOs exercised | 0 | 0 |
Weighted Average Exercise Price, ISOs forfeited | 15.74 | 17.54 |
Weighted Average Exercise Price, ISOs expired | 18 | 0 |
Weighted Average Exercise Price, Ending Balance | 17.39 | 17.34 |
Weighted Average Exercise Price, ISOs exercisable | 17.74 | 18 |
Weighted Average Exercise Price, ISOs expected to vest, net of forfeitures | 15.74 | 16.79 |
Weighted Average Grant Date Fair Value, Beginning Balance | 10.67 | 10.62 |
Weighted Average Grant Date Fair Value, ISOs granted | 0 | 0 |
Weighted Average Grant Date Fair Value, ISOs exercised | 0 | 0 |
Weighted Average Grant Date Fair Value, ISOs forfeited | 9.60 | 11.03 |
Weighted Average Grant Date Fair Value, ISOs expired | 11.03 | 0 |
Weighted Average Grant Date Fair Value, Ending Balance | 10.65 | 10.61 |
Weighted Average Grant Date Fair Value, ISOs exercisable | 10.86 | 11.03 |
Weighted Average Grant Date Fair Value, ISOs expected to vest, net of forfeitures | $ 9.60 | $ 10.26 |
Equity-Based Compensation - S39
Equity-Based Compensation - Summary of Activity for Restricted Stock Awards (Detail) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Restricted Shares, outstanding, Beginning Balance | 77,670 | 80,834 |
Number of Restricted Shares, granted | 27,500 | 22,500 |
Number of Restricted Shares, vested | (30,001) | (10,831) |
Number of Restricted Shares, forfeited | (334) | 0 |
Number of Restricted Shares, outstanding, Ending Balance | 74,835 | 92,503 |
Number of Restricted Shares, expected to vest | 74,835 | 92,503 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 19.57 | $ 22.78 |
Weighted Average Grant Date Fair Value, granted | 8.90 | 14.17 |
Weighted Average Grant Date Fair Value, vested | 21.51 | 34.80 |
Weighted Average Grant Date Fair Value, forfeited | 62.53 | |
Weighted Average Grant Date Fair Value, Ending Balance | 14.68 | 19.28 |
Weighted Average Grant Date Fair Value, expected to vest | $ 14.68 | $ 19.28 |
Equity-Based Compensation - S40
Equity-Based Compensation - Summary of Activity for Restricted Stock Awards (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of restricted shares vesting | $ 271 | $ 158 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Schedule Of Income Taxes [Line Items] | |||
(Benefit) provision for income taxes | $ (4) | $ (59) | |
Effective tax rate | (0.10%) | (0.80%) | |
U.S. federal statutory rate | 34.00% | 34.00% | |
Liability for uncertain tax positions | $ 813 | $ 781 | |
Subsidiaries [Member] | Germany [Member] | |||
Schedule Of Income Taxes [Line Items] | |||
Liability for uncertain tax positions | 211 | 195 | |
Subsidiaries [Member] | Japan [Member] | |||
Schedule Of Income Taxes [Line Items] | |||
Liability for uncertain tax positions | $ 347 | $ 285 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Fair Values of Other Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 31,265 | $ 19,342 | $ 30,101 | $ 36,202 |
Current portion of long-term debt | 139 | 138 | ||
Current portion of capital leases | 84 | 82 | ||
Long-term debt - net of current portion | 1,777 | 1,812 | ||
Capital leases - net of current portion | 61 | 81 | ||
Carrying Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 31,265 | 19,342 | ||
Current portion of long-term debt | 139 | 138 | ||
Current portion of capital leases | 84 | 82 | ||
Long-term debt - net of current portion | 1,777 | 1,812 | ||
Capital leases - net of current portion | 61 | 81 | ||
Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 31,265 | 19,342 | ||
Current portion of long-term debt | 139 | 138 | ||
Current portion of capital leases | 84 | 82 | ||
Long-term debt - net of current portion | 1,772 | 1,800 | ||
Capital leases - net of current portion | $ 61 | $ 81 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Detail) - Five Most Significant Customers [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | |||
Accounts receivable from significant customers | $ 1,937 | $ 4,808 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue concentration, by most significant customers | 38.20% | 23.50% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | Jan. 13, 2016USD ($) | Mar. 31, 2016USD ($)Offering | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Oct. 23, 2015USD ($) |
Related Party Transaction [Line Items] | ||||||
Amortization of debt issuance costs | $ 204,000 | $ 0 | ||||
Number of separate equity offerings | Offering | 2 | |||||
Revenue - related party | $ 35,000 | 2,000 | ||||
Amounts due from related parties reflected in accounts receivable | 19,000 | $ 151,000 | ||||
Deferred consideration | 17,000 | 37,000 | ||||
Amounts due to related party | 1,000 | 15,000 | ||||
Fair market value of benefits received from related party | 2,000 | 17,000 | ||||
Accounts Payable and Accrued Liabilities [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Amounts due to related party | 1,000 | 1,000 | ||||
Accrued Expenses and Other Current Liabilities [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Amounts due to related party | $ 14,000 | |||||
Chairman and CEO [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments for services received from related parties | 4,000 | 9,000 | ||||
Consulting [Member] | Hans J. Sack [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments for services received from related parties | $ 75,000 | |||||
Consulting arrangement consideration included in selling, general and administrative expenses | $ 50,000 | |||||
Revolving Credit Facility [Member] | RHI Investments, LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | |||||
Debt issuance costs | $ 215,000 | |||||
Credit facility, outstanding amount | $ 0 | |||||
Interest expense relating to the commitment fee | $ 5,000 | |||||
Commitment fee | 1.00% | |||||
Amortization of debt issuance costs | $ 204,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Thousands | May. 10, 2016USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Expected restructuring costs | $ 500 |