Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 06, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'IGI Laboratories, Inc. | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 52,482,787 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000352998 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Product sales, net | $6,021 | $3,706 | $12,520 | $7,174 |
Research and development income | 437 | 109 | 750 | 268 |
Licensing, royalty and other revenue | 25 | 5 | 66 | 62 |
Total revenues | 6,483 | 3,820 | 13,336 | 7,504 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of sales | 3,580 | 2,673 | 7,567 | 5,248 |
Selling, general and administrative expenses | 1,156 | 706 | 2,438 | 1,386 |
Product development and research expenses | 2,028 | 805 | 3,393 | 1,463 |
Total costs and expenses | 6,764 | 4,184 | 13,398 | 8,097 |
Operating loss | -281 | -364 | -62 | -593 |
Interest expense and other, net | -64 | -39 | -116 | -67 |
Net loss | ($345) | ($403) | ($178) | ($660) |
Basic and diluted loss per share (in Dollars per share) | ($0.01) | ($0.01) | $0 | ($0.02) |
Weighted average shares of common stock outstanding: | ' | ' | ' | ' |
Basic and diluted (in Shares) | 47,107,094 | 43,206,016 | 46,967,688 | 43,070,335 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
Current assets: | ' | ' | |
Cash and cash equivalents | $1,762,000 | $2,101,000 | [1] |
Accounts receivable, net | 5,251,000 | 4,947,000 | [1] |
Inventories | 2,723,000 | 2,869,000 | [1] |
Prepaid expenses and other receivables | 814,000 | 641,000 | [1] |
Total current assets | 10,550,000 | 10,558,000 | [1] |
Property, plant and equipment, net | 2,750,000 | 2,623,000 | [1] |
Product acquisition costs, net | 1,706,000 | 1,766,000 | [1] |
Restricted cash, long term | 54,000 | 54,000 | [1] |
License fee, net | 150,000 | 200,000 | [1] |
Debt issuance costs, net | 53,000 | 69,000 | [1] |
Other | 355,000 | 157,000 | [1] |
Total assets | 15,618,000 | 15,427,000 | [1] |
Current liabilities: | ' | ' | |
Accounts payable | 2,246,000 | 1,523,000 | [1] |
Accrued expenses | 2,234,000 | 2,915,000 | [1] |
Deferred income | 135,000 | 768,000 | [1] |
Capital lease obligation | 11,000 | 15,000 | [1] |
Total current liabilities | 4,626,000 | 5,221,000 | [1] |
Note payable, bank | 3,000,000 | 3,000,000 | [1] |
Other long term liabilities | 8,000 | 15,000 | [1] |
Total liabilities | 7,634,000 | 8,236,000 | [1] |
Commitments and contingencies | ' | ' | [1] |
Common stock, $0.01 par value, 60,000,000 shares authorized; 47,129,621 and 46,748,575 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively | 491,000 | 487,000 | [1] |
Additional paid-in capital | 52,508,000 | 51,541,000 | [1] |
Accumulated deficit | -45,015,000 | -44,837,000 | [1] |
Total stockholders’ equity | 7,984,000 | 7,191,000 | [1] |
Total liabilities and stockholders' equity | $15,618,000 | $15,427,000 | [1] |
[1] | Derived from the audited December 31, 2013 financial statements |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 | [1] |
Common stock, shares authorized | 60,000,000 | 60,000,000 | [1] |
Common stock, shares issued | 47,129,621 | 46,748,575 | [1] |
Common stock, shares outstanding | 47,129,621 | 46,748,575 | [1] |
[1] | Derived from the audited December 31, 2013 financial statements |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | ||
Cash flows from operating activities: | ' | ' | |
Net loss | ($178,000) | ($660,000) | |
Depreciation | 185,000 | 190,000 | |
Amortization of license fee | 50,000 | 50,000 | |
Stock-based compensation expense | 519,000 | 112,000 | |
Provision for write down of inventory | 114,000 | 22,000 | |
Amortization of debt issuance costs | 16,000 | 15,000 | |
Amortization of product acquisition costs | 60,000 | ' | |
Changes in operating assets and liabilities: | ' | ' | |
Accounts receivable | -304,000 | -1,025,000 | |
Inventories | 32,000 | -353,000 | |
Prepaid expenses and other current assets | -371,000 | -56,000 | |
Accounts payable and accrued expenses | 42,000 | 701,000 | |
Deferred income | -635,000 | 53,000 | |
Net cash used in operating activities | -470,000 | -951,000 | |
Cash flows from investing activities: | ' | ' | |
Capital expenditures | -312,000 | -149,000 | |
Product acquisition costs | ' | -1,426,000 | |
Net cash used in investing activities | -312,000 | -1,575,000 | |
Cash flows from financing activities: | ' | ' | |
Proceeds from exercise of common stock warrants and options | 456,000 | 364,000 | |
Principal payments on capital lease obligation | -9,000 | -8,000 | |
Costs related to stock issuance | -4,000 | -53,000 | |
Proceeds from note payable, bank | ' | 1,000,000 | |
Net cash provided by financing activities | 443,000 | 1,303,000 | |
Net decrease in cash and cash equivalents | -339,000 | -1,223,000 | |
Cash and cash equivalents at beginning of period | 2,101,000 | [1] | 2,536,000 |
Cash and cash equivalents at end of period | 1,762,000 | 1,313,000 | |
Supplemental Cash flow information: | ' | ' | |
Cash payments for interest | 123,000 | 55,000 | |
Cash payments for taxes | $16,000 | $8,000 | |
[1] | Derived from the audited December 31, 2013 financial statements |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Restricted Stock [Member] | Stock Option Other Than Restricted Stock [Member] | Total | |
Restricted Stock [Member] | Stock Option Other Than Restricted Stock [Member] | ||||||||
Balance- Amount at Dec. 31, 2013 | $487,000 | ' | ' | $51,541,000 | ($44,837,000) | ' | ' | $7,191,000 | [1] |
Balance- Shares (in Shares) at Dec. 31, 2013 | 46,748,575 | ' | ' | ' | ' | ' | ' | ' | |
Stock-based compensation expense | ' | 365,000 | 154,000 | ' | ' | 365,000 | 154,000 | 519,000 | |
Stock warrants exercised | 3,000 | ' | ' | 324,000 | ' | ' | ' | 327,000 | |
Stock warrants exercised (in Shares) | 270,546 | ' | ' | ' | ' | ' | ' | ' | |
Stock options exercised | 1,000 | ' | ' | 127,000 | ' | ' | ' | 128,000 | |
Stock options exercised (in Shares) | 110,500 | ' | ' | ' | ' | ' | ' | 110,500 | |
Costs related to stock issuance | ' | ' | ' | -3,000 | ' | ' | ' | -3,000 | |
Net loss | ' | ' | ' | ' | -178,000 | ' | ' | -178,000 | |
Balance- Amount at Jun. 30, 2014 | $491,000 | ' | ' | $52,508,000 | ($45,015,000) | ' | ' | $7,984,000 | |
Balance- Shares (in Shares) at Jun. 30, 2014 | 47,129,621 | ' | ' | ' | ' | ' | ' | ' | |
[1] | Derived from the audited December 31, 2013 financial statements |
Note_1_Organization
Note 1 - Organization | 6 Months Ended | ||
Jun. 30, 2014 | |||
Disclosure Text Block [Abstract] | ' | ||
Nature of Operations [Text Block] | ' | ||
1 | Organization | ||
IGI Laboratories, Inc. is a Delaware corporation incorporated in 1977. On May 7, 2008, the stockholders of IGI, Inc. approved the name change of the Company from IGI, Inc. to IGI Laboratories, Inc. The Company’s office, laboratories and manufacturing facilities are located at 105 Lincoln Avenue, Buena, New Jersey. The Company is a specialty generic drug developer and manufacturer. The Company’s goal is to become a leader in the specialty generic pharmaceutical market. In its own label, the Company sells generic topical pharmaceutical products that are bioequivalent to their brand name counterparts. The Company also provides contract manufacturing and formulation services to the pharmaceutical, over-the-counter, or (OTC), and cosmetic markets. | |||
Currently, we have two platforms for growth: | |||
■ | Manufacturing, developing, and marketing a portfolio of generic pharmaceutical products in our own label in topical dosage forms; and, | ||
■ | Increasing our current contract manufacturing and formulation services business. | ||
In addition, we continue to explore ways to accelerate our growth through the creation of unique opportunities from the acquisition of additional intellectual property, and the expansion of the use of our existing intellectual property, including our licensed Novasome ® technology. | |||
To date, we have filed nineteen Abbreviated New Drug Applications, or ANDAs, with the United States Food and Drug Administration, or FDA for additional pharmaceutical products. We expect to continue to expand our presence in the generic topical pharmaceutical market through the filing of additional ANDAs with the FDA and the subsequent launch of products as these applications are approved. Our target is to file at least ten ANDAs in 2014 through our internal research and development program. On March 12, 2014, the Company received our first approval from the FDA for an ANDA. The FDA has approved IGI's application for lidocaine hydrochloride USP 4% topical solution. On May 7, 2014, the Company received tentative approval from the FDA for its ANDA for diclofenac sodium 1.5% topical solution. On June 26, 2014, the Company executed an agreement to enable it to launch the product in March 2015 after final FDA approval. We will also seek to license or acquire further products, intellectual property, or ANDAs to expand our portfolio. | |||
On February 1, 2013, we acquired assets and intellectual property, including an ANDA, for econazole nitrate cream 1%, which we launched in September 2013. | |||
IGI also develops, manufactures, fills, and packages topical semi-solid and liquid products for branded and generic pharmaceutical customers as well as the OTC and cosmetic markets. These products are used in a wide range of applications from cosmetics and cosmeceuticals to the prescription treatment of conditions like dermatitis, psoriasis, and eczema. |
Note_2_Liquidity
Note 2 - Liquidity | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | ' | |
2 | Liquidity | |
The Company’s principal sources of liquidity are cash and cash equivalents of approximately $1,762,000 at June 30, 2014, the $2,000,000 available under the $5,000,000 credit facility detailed below and cash from operations. The Company had a net loss of $178,000 for the six months ended June 30, 2014 and a net loss of $660,000 for the six months ended June 30, 2013, and had working capital of $5,924,000 at June 30, 2014. | ||
On June 27, 2014, the Company announced the pricing of its underwritten public offering of 4,650,000 shares of its common stock at a price to the public of $5.00 per share (See Note 12). The offer closed on July 2, 2014, and, after giving effect to the underwriters’ exercise of the over-allotment option in full, the Company sold an aggregate of 5,347,500 shares of common stock in the offering at a public offering price of $5.00 per share. The net proceeds of the offering was approximately $25.2 million. | ||
Prior to the most recent public offering, the Company’s business operations have been primarily funded over the past five years through private placements of its capital stock. The Company raised an aggregate of $2,000,000 through private placements of equity with accredited investors in 2012, $7,213,000 in 2010 and $5,304,000 in 2009 principally from private equity investors. The proceeds from these private placements were used for general working capital as well as the acquisition of econazole nitrate cream 1%, which was purchased on February 1, 2013 and launched in September 2013. | ||
In August 2012, the Company entered into a $3,000,000 line of credit, which was amended on July 26, 2013. The amendment increased the line of credit to $5,000,000 effective as of December 31, 2013 upon the Company’s compliance with certain covenants (See Note 8). As of June 30, 2014 the outstanding principal balance on the line of credit was $3,000,000. The Company may require additional funding and this funding will depend, in part, on the timing and structure of potential business arrangements. If necessary, the Company may continue to seek to raise additional capital through the sale of its equity or through a strategic alliance with a third party. There may also be additional acquisition and growth opportunities that may require external financing. There can be no assurance that such financing will be available on terms acceptable to the Company, or at all. The Company also has the ability to defer certain product development and other programs, if necessary. The Company believes that our existing capital resources will be sufficient to support its current business plan and operations beyond August 2015. |
Note_3_Summary_of_Significant_
Note 3 - Summary of Significant Accounting Policies | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||||||||||
3 | Summary of Significant Accounting Policies | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include allowances for excess and obsolete inventories, allowances for sales returns, chargebacks, rebates, cash discounts, allowances for doubtful accounts, provisions for income taxes and related deferred tax asset valuation allowance, stock based compensation, and accruals for environmental cleanup and remediation costs. Actual results could differ from those estimates. | |||||||||||||||||
Loss Per Share | |||||||||||||||||
Basic net loss per share of common stock is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share of common stock is computed using the weighted average number of shares of common stock and potential dilutive common stock equivalents outstanding during the period. Due to the net loss for the three months ended June 30, 2014 and 2013 and the six months ended June 30, 2014 and 2013, the effect of the Company’s potential dilutive common stock equivalents was anti-dilutive for those periods; as a result, the basic and diluted weighted average number of shares of common stock outstanding and net loss per common share are the same. Potentially dilutive common stock equivalents include options and warrants to purchase the Company’s common stock and the conversion of preferred stock, which were excluded from the net loss per share calculation for those periods due to their anti-dilutive effect. Potentially dilutive common stock equivalents amounted to 2,699,000 and 6,049,112 at June 30, 2014 and 2013, respectively. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement, delivery has occurred or contractual services rendered, the sales price is fixed or determinable, and collection is reasonably assured in conformity with ASC 605, Revenue Recognition. | |||||||||||||||||
The Company derives its revenues from three basic types of transactions: sales of its own generic pharmaceutical topical products, sales of manufactured product for its customers, and research and product development services performed for third parties. Due to differences in the substance of these transaction types, the transactions require, and the Company utilizes, different revenue recognition policies for each. | |||||||||||||||||
Product Sales: Product Sales includes IGI Product Sales and Contract Manufacturing Sales. | |||||||||||||||||
IGI Product Sales: The Company records revenue from IGI product sales when title and risk of ownership have been transferred to the customer, which is typically upon delivery of products to the customer. | |||||||||||||||||
Revenue and Provision for Sales Returns and Allowances | |||||||||||||||||
As customary in the pharmaceutical industry, the Company’s gross product sales from IGI label products are subject to a variety of deductions in arriving at reported net product sales. When the Company recognizes revenue from the sale of products, an estimate of sales returns and allowances (“SRA”) is recorded, which reduces product sales. Accounts receivable and/or accrued expenses are also reduced and/or increased by the SRA amount. These adjustments include estimates for chargebacks, rebates, cash discounts and returns and other allowances. Currently these provisions are based on industry standards and current contract sales terms with direct and indirect customers. Over time, these provisions are adjusted as estimates are based on historical payment experience, historical relationship to revenues, estimated customer inventory levels and current contract sales terms with direct and indirect customers. The estimation process used to determine our SRA provision has been applied on a consistent basis and no material adjustments have been necessary to increase or decrease our reserves for SRA as a result of a significant change in underlying estimates. The Company will use a variety of methods to assess the adequacy of our SRA reserves to ensure that our financial statements are fairly stated. These will include periodic reviews of customer inventory data, customer contract programs and product pricing trends to analyze and validate the SRA reserves. | |||||||||||||||||
The provision for chargebacks is our most significant sales allowance. A chargeback represents an amount payable in the future to a wholesaler for the difference between the invoice price paid to the Company by our wholesale customer for a particular product and the negotiated contract price that the wholesaler’s customer pays for that product. The Company’s chargeback provision and related reserve varies with changes in product mix, changes in customer pricing and changes to estimated wholesaler inventories. The provision for chargebacks also takes into account an estimate of the expected wholesaler sell-through levels to indirect customers at contract prices. The Company will validate the chargeback accrual quarterly through a review of the inventory reports obtained from our largest wholesale customers. This customer inventory information is used to verify the estimated liability for future chargeback claims based on historical chargeback and contract rates. These large wholesalers represent 90% - 95% of the Company’s chargeback payments. The Company continually monitors current pricing trends and wholesaler inventory levels to ensure the liability for future chargebacks is fairly stated. | |||||||||||||||||
Net revenues and accounts receivable balances in the Company’s consolidated financial statements are presented net of SRA estimates. Certain SRA balances are included in accounts payable and accrued expenses. | |||||||||||||||||
Gross-To-Net Sales Deductions | |||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Gross IGI product sales | $ | 5,770 | $ | 2,114 | $ | 10,795 | $ | 4,380 | |||||||||
Reduction to gross product sales: | |||||||||||||||||
Chargebacks and billbacks | 1,884 | 562 | 3,468 | 1,222 | |||||||||||||
Sales discounts and other allowances | 504 | 175 | 1,001 | 365 | |||||||||||||
Total reduction to gross product sales | $ | 2,388 | $ | 737 | $ | 4,469 | $ | 1,588 | |||||||||
Net IGI product sales | $ | 3,382 | $ | 1,377 | $ | 6,326 | $ | 2,792 | |||||||||
Accounts receivable are presented net of SRA balances of $1.4 million and $0.8 million at June 30, 2014 and 2013, respectively. Accounts payable and accrued expenses include $0.4 million and $0.4 million at June 30, 2014 and 2013, respectively, for certain fees related to services provided by the wholesalers. Wholesale fees of $0.5 million and $0.2 for the three month periods ended June 30, 2014 and 2013, respectively, were included in cost of goods sold. Wholesale fees of $0.7 million and $0.4 for the six month periods ended June 30, 2014 and 2013, respectively, were included in cost of goods sold. In addition, in connection with four of the six products the Company currently manufactures, markets and distributes in its own label, in accordance with an agreement entered into in December of 2011, the Company is required to pay a royalty calculated based on net sales to one of its pharmaceutical partners. The royalty is calculated based on contracted terms of 40% of net sales for the four products which is to be paid quarterly to the pharmaceutical partner. In accordance with the agreement, net sales excludes fees related to services provided by the wholesalers. Accounts payable and accrued expenses include $0.6 million and $0.5 at June 30, 2014 and 2013, respectively, related to these royalties. Royalty expense of $0.8 million and $0.5 was included in cost of goods sold for the three months ended June 30, 2014 and 2013, respectively. Royalty expense of $2.1. million and $1.0 was included in cost of goods sold for the six months ended June 30, 2014 and 2013, respectively. The Company includes significant estimates to arrive at net product sales arising from wholesaler chargebacks, Medicaid and Medicare rebates, allowances and other pricing and promotional programs. | |||||||||||||||||
Contract Manufacturing Sales: The Company recognizes revenue when title transfers to its customers, which is generally upon shipment of products. These shipments are made in accordance with sales commitments and related sales orders entered into with customers either verbally or in written form. The revenues associated with these transactions, net of appropriate cash discounts, product returns and sales reserves, are recorded upon shipment of the products. | |||||||||||||||||
Research and Development Income: The Company establishes agreed upon product development agreements with its customers to perform product development services. Product development revenues are recognized in accordance with the product development agreement upon the completion of the phases of development and when the Company has no future performance obligations relating to that phase of development. Revenue recognition requires the Company to assess progress against contracted obligations to assure completion of each stage. These payments are generally non-refundable and are reported as deferred until they are recognizable as revenue. If no such arrangement exists, product development fees are recognized ratably over the entire period during which the services are performed. | |||||||||||||||||
In making such assessments, judgments are required to evaluate contingencies such as potential variances in schedule and the costs, the impact of change orders, liability claims, contract disputes and achievement of contractual performance standards. Changes in total estimated contract cost and losses, if any, are recognized in the period they are determined. Billings on research and development contracts are typically based upon terms agreed upon by the Company and customer and are stated in the contracts themselves and do not always align with the revenues recognized by the Company. | |||||||||||||||||
Major Customers | |||||||||||||||||
Major customers of the Company are defined as having revenue greater than 10% of total gross revenue. For the three months ended June 30, 2014, three of the Company’s customers accounted for 46% of the Company’s revenue. For the three months ended June 30, 2013, three of the Company’s customers accounted for 41% of the Company’s revenue. One of these customers is the same for both periods. For the six months ended June 30, 2014 and 2013, two of the Company’s customers accounted for 31% and five of the Company’s customers accounted for 67% of the Company’s revenue, respectively. One of these customers is the same for both periods. Accounts receivable related to the Company’s major customers comprised 49% of all accounts receivable as of June 30, 2014. The loss of one or more of these customers could have a significant impact on our revenues and harm our business and results of operations. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In May 2014, FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers”. This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. Accordingly, the Company will adopt this ASU on January 1, 2017. Companies may use either a full retrospective or modified retrospective approach to adopt this ASU and management is currently evaluating which transition approach to use. The Company is currently evaluating the impact of ASU 2014-09. |
Note_4_Inventories
Note 4 - Inventories | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
4 | Inventories | ||||||||
Inventories are valued at the lower of cost, using the first-in, first-out (“FIFO”) method, or market. Inventories at June 30, 2014 and December 31, 2013 consist of: | |||||||||
30-Jun-14 | 31-Dec-13 | ||||||||
(Unaudited) | (Audited) | ||||||||
(amounts in thousands) | |||||||||
Raw materials | $ | 2,201 | $ | 2,172 | |||||
Work in progress | 21 | 271 | |||||||
Finished goods | 501 | 426 | |||||||
Total | $ | 2,723 | $ | 2,869 | |||||
Note_5_Stock_Based_Compensatio
Note 5 - Stock Based Compensation | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||
5 | Stock-Based Compensation | ||||||||||||
Stock Options | |||||||||||||
The 1999 Director Stock Option Plan, as amended (the “Director Plan”), provides for the grant of stock options to non-employee directors of the Company at an exercise price equal to the fair market value per share on the date of the grant. An aggregate of 1,975,000 shares have been approved and authorized for issuance pursuant to this plan. A total of 2,339,798 options have been granted to non-employee directors through June 30, 2014 and 777,782 of those have been forfeited through June 30, 2014 and returned to the option pool. The options granted under the Director Plan vest in full one year after their respective grant dates and have a maximum term of ten years. | |||||||||||||
The 1999 Stock Incentive Plan, as amended (“1999 Plan”), replaced all previously authorized employee stock option plans, and no additional options may be granted under those previous plans. Under the 1999 Plan, options or stock awards may be granted to all of the Company's employees, officers, directors, consultants and advisors to purchase a maximum of 3,200,000 shares of common stock. However, pursuant to the terms of the 1999 Plan, no awards may be granted after March 16, 2009. A total of 2,892,500 options, having a maximum term of ten years, have been granted at 100% of the fair market value of the Company's common stock at the date of grant. Options outstanding under the 1999 Plan are generally exercisable in cumulative increments over four years commencing one year from date of grant. | |||||||||||||
On June 26, 2009, the Board of Directors adopted, and the Company’s stockholders subsequently approved by partial written consent, the IGI Laboratories, Inc. 2009 Equity Incentive Plan (the “2009 Plan”). The 2009 Plan became effective on July 29, 2009. The 2009 Plan allows the Company to continue to grant options and restricted stock, as under the 1999 Plan, but also authorizes the Board of Directors to grant a broad range of other equity-based awards, including stock appreciation rights, restricted stock units and performance awards. The 2009 Plan has been created, pursuant to and consistent with the Company’s current compensation philosophy, to assist the Company in attracting, retaining and rewarding designated employees, directors, consultants and other service providers of the Company and its subsidiaries and affiliates, in a manner that will be cost efficient to the Company from both an economic and financial accounting perspective. On April 12, 2010, the Board of Directors adopted, and the Company’s stockholders subsequently approved, an amendment of the 2009 Plan to increase the number of shares of Common Stock available for grant under such plan by adding 2,000,000 shares of Common Stock. On May 29, 2014, the Board of Directors adopted and the Company’s stockholders approved a further amendment of the 2009 Plan to increase the number of shares of Common Stock available for grant under such plan by adding 1,000,000 shares of Common Stock. The 2009 Plan, as amended on May 29, 2014 and May 19, 2010, authorizes up to 5,000,000 shares of the Company’s common stock for issuance pursuant to the terms of the 2009 Plan. The maximum number of shares that may be subject to awards made to any individual in any single calendar year under the 2009 Plan is 1,000,000 shares. As of June 30, 2014, options to purchase 1,858,000 shares of common stock were outstanding under the 2009 Plan. As of June 30, 2014, 1,473,748 shares of restricted stock had been granted under the 2009 Plan and 230,420 of those have been forfeited through June 30, 2014 and returned to the pool. | |||||||||||||
In summary, there are 2,615,000 options outstanding under the 1999 Plan, the Director Plan and the 2009 Plan, collectively as of June 30, 2014. | |||||||||||||
There are 2,215,820 options available for issuance under the Director Plan and the 2009 Plan collectively as of June 30, 2014. | |||||||||||||
The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing formula that uses assumptions noted in the following table. Expected volatilities and risk-free interest rates are based upon the expected life of the grant. The interest rates used are the U.S. Treasury yield curve in effect at the time of the grant. | |||||||||||||
For the six months ended | |||||||||||||
30-Jun-14 | |||||||||||||
Expected volatility | 44.0% - 50.1% | ||||||||||||
Expected term (in years) | 3.2 -3.3 | ||||||||||||
Risk-free rate | 0.74%-1.05% | ||||||||||||
Expected dividends | 0% | ||||||||||||
A summary of option activity under the 1999 Plan, the Director Plan and the 2009 Plan as of June 30, 2014 and changes during the period are presented below: | |||||||||||||
Weighted | |||||||||||||
Number of | Average | ||||||||||||
Options | Exercise Price | ||||||||||||
Outstanding as of January 1, 2014 | 2,643,500 | $ | 1.13 | ||||||||||
Issued | 208,000 | $ | 3.55 | ||||||||||
Exercised | -110,500 | $ | 1.16 | ||||||||||
Forfeited | -126,000 | $ | 2.04 | ||||||||||
Expired | - | - | |||||||||||
Outstanding as of June 30, 2014 | 2,615,500 | $ | 1.27 | ||||||||||
Exercisable as of June 30, 2014 | 1,550,996 | $ | 1.12 | ||||||||||
Based upon application of the Black-Scholes option-pricing formula described above, the weighted-average grant-date fair value of options granted during the six months ended June 30, 2014 was $0.89. | |||||||||||||
The following table summarizes information regarding options outstanding and exercisable at June 30, 2014: | |||||||||||||
Outstanding: | |||||||||||||
Range of Exercise Prices | Stock Options | Weighted | Weighted | ||||||||||
Outstanding | Average | Average | |||||||||||
Exercise | Remaining | ||||||||||||
Price | Contractual Life | ||||||||||||
$0.55 - $1.00 | 197,000 | $ | 0.75 | 4.13 | |||||||||
$1.01 - $1.50 | 2,076,500 | $ | 1.09 | 7.42 | |||||||||
$1.51 - $5.80 | 341,500 | $ | 2.69 | 8.32 | |||||||||
Total | 2,615,000 | $ | 1.27 | 7.29 | |||||||||
Exercisable: | |||||||||||||
Stock | Weighted | ||||||||||||
Options | Average | ||||||||||||
Range of Exercise Prices | Exercisable | Exercise Price | |||||||||||
$0.55 - $1.00 | 197,000 | $ | 0.75 | ||||||||||
$1.01 - $1.50 | 1,215,330 | $ | 1.12 | ||||||||||
$1.51 - $5.80 | 138,666 | $ | 1.67 | ||||||||||
Total | 1,550,996 | $ | 1.12 | ||||||||||
As of June 30, 2014, the intrinsic value of the options outstanding is $10,564,685 and the intrinsic value of the options exercisable is $6,498,289. The intrinsic value of options exercised during the six months ended June 30, 2014 was $420,590. As of June 30, 2014, there was approximately $304,000 of total unrecognized compensation cost that will be recognized through June 2017 related to non-vested share-based compensation arrangements granted under the Plans. | |||||||||||||
Restricted Stock | |||||||||||||
The Company periodically grants restricted stock awards to certain officers and other employees that typically vest one to three years from their grant date. The Company recognized $365,000 and $9,800 of compensation expense during the six months ended June 30, 2014 and 2013, respectively, related to restricted stock awards. Stock compensation expense is recognized over the vesting period of the restricted stock. At June 30, 2014, the Company had approximately $256,000 of total unrecognized compensation cost related to non-vested restricted stock, all of which will be recognized from July 2014 through July 2015. | |||||||||||||
Number of | Weighted Average | ||||||||||||
Restricted Stock | Exercise Price | ||||||||||||
Non-vested balance at January 1, 2014 | 246,001 | $ | 2.64 | ||||||||||
Changes during the period: | |||||||||||||
Shares granted | - | - | |||||||||||
Shares vested | (29,334 | ) | 1 | ||||||||||
Shares forfeited | - | - | |||||||||||
Non-vested balance at June 30, 2014 | 216,667 | $ | 2.86 | ||||||||||
Note_6_Income_Taxes
Note 6 - Income Taxes | 6 Months Ended | |
Jun. 30, 2014 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Tax Disclosure [Text Block] | ' | |
6 | Income Taxes | |
The Company has a history of tax losses and has recorded a full valuation allowance against its net deferred tax assets. The Company has not recorded a significant tax provision at June 30, 2014, as it has estimated its effective tax rate for 2014 (after considering utilization of existing net operating losses) to be insignificant. The tax years 2009-2012 remain open to examination by the major taxing jurisdictions to which the Company is subject. | ||
The Company’s ability to use net operating loss carry forwards may be subject to substantial limitation in future periods under certain provisions of Section 382 of the Internal Revenue Code, which limit the utilization of net operating losses upon a more than 50% change in ownership of the Company’s stock that is held by 5% or greater stockholders. The Company examined the application of Section 382 with respect to an ownership change that took place during 2009 and 2010, as well as the possibility of such limitation having any material effect on the application of net operating loss carry forwards in the immediate future. The Company believes that it is likely that a change in ownership took place and that the net operating loss carry forwards will be limited. |
Note_7_License_Fee
Note 7 - License Fee | 6 Months Ended | |
Jun. 30, 2014 | ||
Disclosure Text Block Supplement [Abstract] | ' | |
Commitments Disclosure [Text Block] | ' | |
7 | License Fee | |
On December 12, 2005, the Company extended its license agreement for an additional ten years with Novavax, Inc. for $1,000,000. This extension entitles the Company to the exclusive use of the Novasome® lipid vesicle encapsulation and certain other technologies (each a “Microencapsulation Technology”, and collectively, the “Technologies”) in the fields of (i) animal pharmaceuticals, biologicals and other animal health products; (ii) foods, food applications, nutrients and flavorings; (iii) cosmetics, consumer products and dermatological over-the-counter and prescription products (excluding certain topically delivered hormones); (iv) fragrances; and (v) chemicals, including herbicides, insecticides, pesticides, paints and coatings, photographic chemicals and other specialty chemicals, and the processes for making the same (collectively, the “IGI Field”) through 2015. This payment is being amortized ratably over the ten-year period. The Company recorded amortization expense of $50,000 related to this agreement for each of the six month periods ended June 30, 2014 and 2013. |
Note_8_Note_PayableBank
Note 8 - Note Payable-Bank | 6 Months Ended | |
Jun. 30, 2014 | ||
Debt Disclosure [Abstract] | ' | |
Debt Disclosure [Text Block] | ' | |
8 | Note Payable - Bank | |
On August 31, 2012, IGI Laboratories, Inc. and its subsidiaries entered into a Loan and Security Agreement (the “Loan and Security Agreement”) with Square 1 Bank (the “Lender”) pursuant to which the Lender agreed to extend credit facilities to the Company (the “Financing”). The Company drew down $1,000,000 in principal amount on August 31, 2012, $1,000,000 in principal amount on February 5, 2013 and $1,000,000 in principal amount on August 2, 2013. At June 30, 2014, $3,000,000 in principal was outstanding. | ||
To secure payment of the amounts financed under the Loan and Security Agreement, the Company has granted to the Lender a continuing security interest in and against, generally, all of its tangible and intangible assets, except intellectual property. | ||
Under the Loan and Security Agreement, the Company can request revolving loan advances under (a) the Formula Revolving Line and (b) the Non-Formula Revolving Line, and term loan advances under the term loans. The aggregate total borrowings under the facilities cannot exceed the total borrowing limit of $3,000,000 at any one time outstanding. Formula Revolving Line advances shall bear interest, on the outstanding balance thereof, at a variable rate equal to the greater of (A) 1.9% above the prime rate then in effect, and (B) 5.65%. Non-Formula Revolving Line advances shall bear interest, on the outstanding balance thereof, at a variable rate equal to the greater of (A) 2.15% above the prime rate then in effect, and (B) 5.9%. Term loan advances shall bear interest, on the outstanding balance thereof, at a variable rate equal to the greater of (A) 2.4% above the prime rate then in effect, and (B) the rate in effect at June 30, 2014, which was 6.15%. | ||
The term of the Formula Revolving Line and the Non-Formula Revolving Line is one year from the date of the Loan and Security Agreement and can be extended by mutual agreement of the parties. The term of the term loans is 42 months from the date of the Loan and Security Agreement, and the Company is finalizing negotiations to extend the drawdown period. | ||
In accordance with the Loan and Security Agreement, the Company had to maintain a liquidity ratio of at least 1.25 to 1.00 (the “LQR Threshold”), provided that the LQR Threshold was reduced to 1.00 so long as the Company had achieved minimum revenue, measured monthly on a trailing three month basis, of at least the amounts listed in the document for the corresponding reporting periods. To further clarify, if at any time the Company is not in compliance with the minimum revenue amounts set forth below, the LQR Threshold would be increased to 1.25 to 1.00. “Liquidity” means the sum of: (i) unrestricted cash in bank plus (ii) the Borrowing Base (as defined under the Loan and Security Agreements, or the amount drawn to date). In accordance with the Loan and Security Agreement, liquidity ratio means the ratio of Liquidity to all Indebtedness (as defined under the Loan and Security Agreement) to the Lender (but excluding any Indebtedness to the Lender which is secured by cash held in a segregated deposit account at the Lender). As of June 30, 2014, the Company was in compliance with the LQR Threshold required under the Loan and Security Agreement. | ||
On July 26, 2013, the Company entered into an Amendment to the Loan and Security Agreement (the “Amendment”). In accordance with the Amendment, notwithstanding the existing LQR Thresholds, for so long as the Company is in compliance with the minimum revenue requirements established in this Amendment, the Company shall be permitted to maintain a liquidity ratio of not less than .90 to 1.00 for a continuous 60 day period every 12 months. In connection with the lower liquidity ratio, in accordance with the Amendment, under the Formula Revolving Line advances shall bear interest, on the outstanding balance thereof, at a variable rate equal to the greater of (A) 4.9% above the prime rate then in effect, and (B) 8.65%. Non-Formula Revolving Line advances shall bear interest, on the outstanding balance thereof, at a variable rate equal to the greater of (A) 5.15% above the prime rate then in effect, and (B) 8.9%, until such time that the lower liquidity ratio is no longer in place. On December 31, 2013, the aggregate borrowing amount was increased from $3,000,000 to $5,000,000. |
Note_9_Stock_Warrants
Note 9 - Stock Warrants | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||||||||||||||||
9 | Stock Warrants | ||||||||||||||||
Stock Warrant activity for the quarters ended June 30, 2014 and 2013 consisted of: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | ||||||||||||||||
Warrants | Exercise Price | Warrants | Exercise Price | ||||||||||||||
Beginning balance | 354,546 | $ | 1.21 | 782,259 | $ | 0.85 | |||||||||||
Stock warrants granted | - | - | - | - | |||||||||||||
Stock warrants expired | - | - | - | - | |||||||||||||
Stock warrants exercised | (270,546 | ) | 1.21 | (427,713 | ) | 0.55 | |||||||||||
Ending balance | 84,000 | $ | 1.21 | 354,546 | $ | 1.21 | |||||||||||
In connection with the private placement of the Company’s Common Stock on December 8, 2010, the Company granted Common Stock Warrants to purchase up to 338,182 and 16,364 shares, respectively, to each of its two placement agents for $1.21 per share which expire on December 8, 2015. On March 7, 2014, 270,546 of the 338,182 warrants were exercised. | |||||||||||||||||
In addition, as of December 31, 2012 the Company executed a settlement agreement with Amzak Capital Management, LLC in connection with a common stock purchase warrant that we issued to Amzak on December 21, 2012 under which the Company issued a ten-year warrant to purchase up to 427,713 shares of the Company’s common stock, with an exercise price of $0.55 per share. The warrants were exercised in full on February 8, 2013. The amount of the fair value of the warrant issued was $209,000, and included as interest expense in 2012, as it related to the credit agreement which was terminated in August of 2012. |
Note_10_Asset_Purchase_Agreeme
Note 10 - Asset Purchase Agreement | 6 Months Ended | |
Jun. 30, 2014 | ||
Asset Purchase Agreement Disclosure [Abstract] | ' | |
Asset Purchase Agreement Disclosure [Text Block] | ' | |
10 | Asset Purchase Agreement | |
On February 1, 2013, the Company entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Prasco, LLC, an Ohio limited liability company (“Prasco”), pursuant to which the Company purchased from Prasco assets associated with econazole nitrate cream 1% (the “Product”), which is available in 15g, 30g, and 85g tubes and has the FDA approved indications for the treatment of tinea pedis, tinea cruris, and tinea corporis as well as the treatment of cutaneous candidiasis and tinea versicolor. | ||
In consideration for the purchase of the assets pursuant to the Purchase Agreement, the Company paid Prasco $1.4 million in cash and an additional aggregate of $400,000 upon the occurrence of certain milestone events (the “Milestone Payment”). The Milestone Payment is secured by a first-priority security interest in the acquired assets under the Purchase Agreement. The transaction is accounted for as a purchase of the product and product rights, and as such the initial payment, milestone payment and related costs to acquire the asset are included as part of product acquisition costs totaling $1.8 million. The Company capitalized and amortized the costs over fifteen years, the useful life of the acquired product and product rights. | ||
Under and subject to the terms and conditions of the Purchase Agreement, Prasco continued to distribute the Product during a six-month period following the closing of the Purchase Agreement, and the Company completed the technical transfer of the Product and begun manufacturing the Product under its own label during the third quarter of 2013. Beginning in the third quarter of 2013, the Company’s product sales included sales of the product. | ||
In addition, the Purchase Agreement contains certain non-compete restrictions preventing Prasco from selling the Product in the United States for a period of seven years. | ||
On October 23, 2013, the Company announced that it had received formal approval from the FDA for the CBE-30 supplemental filing to approve the site transfer of the Econazole nitrate cream 1%, to the Company’s manufacturing facility in Buena, New Jersey. |
Note_11_Legal
Note 11 - Legal | 6 Months Ended | |
Jun. 30, 2014 | ||
Disclosure Text Block Supplement [Abstract] | ' | |
Legal Matters and Contingencies [Text Block] | ' | |
11 | Legal | |
The Company is involved from time to time in claims which arise in the ordinary course of business. In the opinion of management, the Company has made adequate provision for potential liabilities, if any, arising from any such matters. However, litigation is inherently unpredictable, and the costs and other effects of pending or future litigation, governmental investigations, legal and administrative cases and proceedings (whether civil or criminal), settlements, judgments and investigations, claims and changes in any such matters, and developments or assertions by or against the Company relating to intellectual property rights and intellectual property licenses, could have a material adverse effect on its business, financial condition and operating results. | ||
On December 19, 2013, the Company filed a complaint in the United States District Court for the District of Delaware against Mallinckrodt LLC, Mallinckrodt, Inc. and Nuvo Research Inc. (collectively, “Mallinckrodt”) seeking a declaration of non-infringement of United States Patent Nos. 8,217,078 and 8,546,450 so that the Company can bring its generic diclofenac sodium topical solution 1.5% to market at the earliest possible date under applicable statutory and FDA regulatory provisions. | ||
On January 10, 2014, Mallinckrodt filed an answer and counterclaim alleging that IGI Laboratories, Inc. infringes the patents at issue. On January 28, 2014, the Company filed a motion to dismiss Mallinckrodt’s counterclaim and, on March 5, 2014, Mallinckrodt filed an opposition to such motion. On April 22, 2014, the court issued a Memorandum Order, granting in part and denying in part IGI’s motion to dismiss Mallinckrodt’s counterclaims. | ||
On June 26, 2014, the Company entered into an agreement with Mallinckrodt to settle a declaratory judgment action brought by IGI, concerning the Company’s filing of an ANDA with the FDA seeking approval to market a generic version of Pennsaid® (diclofenac sodium topical solution) 1.5% w/w. Under the terms of this agreement, Mallinckrodt granted the Company a non-exclusive license to launch its diclofenac sodium topical solution 1.5% product on March 28, 2015. The Company received tentative approval of its diclofenac sodium topical solution 1.5% from the FDA on May 7, 2014. |
Note_12_Subsequent_Event
Note 12 - Subsequent Event | 6 Months Ended | |
Jun. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events [Text Block] | ' | |
12 | Subsequent Event | |
On June 27, 2014, the Company entered into an underwriting agreement with Roth Capital Partners, LLC and Oppenheimer & Co., as representatives of the several underwriters named therein (the “ Underwriters ”), relating to the underwritten public offering and sale of up to an aggregate of 4,650,000 shares of the Company’s common stock, par value $0.01 (the “shares ”), at a price to the public of $5.00 per share (the “Offering”). The Company also granted the underwriters a 30-day option to purchase up to an aggregate of 697,500 shares to cover over-allotments, if any. | ||
The Offering was made pursuant to the Company’s shelf registration statement on Form S-3 (Registration No. 333-196543), filed on June 5, 2014 with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on June 16, 2014, as well as the prospectus supplement describing the terms of the Offering, dated June 27, 2014. | ||
On July 2, 2014, the Company closed the Offering, and after giving effect to the underwriters’ exercise of the over-allotment option, the Company sold an aggregate of 5,347,500 shares of common stock in the Offering at a public offering price of $5.00 per share. The net proceeds of the Offering were approximately $25.2 million, after deducting underwriting discounts and commissions and other offering expenses paid by the Company. | ||
The Company intends to use the net proceeds of the offering for general corporate purposes, including, without limitation, research and development, general and administrative, manufacturing and marketing expenses, and potential not yet identified acquisitions of companies, products, ANDAs, technologies and assets that complement the Company’s business. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include allowances for excess and obsolete inventories, allowances for sales returns, chargebacks, rebates, cash discounts, allowances for doubtful accounts, provisions for income taxes and related deferred tax asset valuation allowance, stock based compensation, and accruals for environmental cleanup and remediation costs. Actual results could differ from those estimates. | |||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||||||||||
Loss Per Share | |||||||||||||||||
Basic net loss per share of common stock is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share of common stock is computed using the weighted average number of shares of common stock and potential dilutive common stock equivalents outstanding during the period. Due to the net loss for the three months ended June 30, 2014 and 2013 and the six months ended June 30, 2014 and 2013, the effect of the Company’s potential dilutive common stock equivalents was anti-dilutive for those periods; as a result, the basic and diluted weighted average number of shares of common stock outstanding and net loss per common share are the same. Potentially dilutive common stock equivalents include options and warrants to purchase the Company’s common stock and the conversion of preferred stock, which were excluded from the net loss per share calculation for those periods due to their anti-dilutive effect. Potentially dilutive common stock equivalents amounted to 2,699,000 and 6,049,112 at June 30, 2014 and 2013, respectively. | |||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement, delivery has occurred or contractual services rendered, the sales price is fixed or determinable, and collection is reasonably assured in conformity with ASC 605, Revenue Recognition. | |||||||||||||||||
The Company derives its revenues from three basic types of transactions: sales of its own generic pharmaceutical topical products, sales of manufactured product for its customers, and research and product development services performed for third parties. Due to differences in the substance of these transaction types, the transactions require, and the Company utilizes, different revenue recognition policies for each. | |||||||||||||||||
Product Sales: Product Sales includes IGI Product Sales and Contract Manufacturing Sales. | |||||||||||||||||
IGI Product Sales: The Company records revenue from IGI product sales when title and risk of ownership have been transferred to the customer, which is typically upon delivery of products to the customer. | |||||||||||||||||
Revenue and Provision for Sales Returns and Allowances | |||||||||||||||||
As customary in the pharmaceutical industry, the Company’s gross product sales from IGI label products are subject to a variety of deductions in arriving at reported net product sales. When the Company recognizes revenue from the sale of products, an estimate of sales returns and allowances (“SRA”) is recorded, which reduces product sales. Accounts receivable and/or accrued expenses are also reduced and/or increased by the SRA amount. These adjustments include estimates for chargebacks, rebates, cash discounts and returns and other allowances. Currently these provisions are based on industry standards and current contract sales terms with direct and indirect customers. Over time, these provisions are adjusted as estimates are based on historical payment experience, historical relationship to revenues, estimated customer inventory levels and current contract sales terms with direct and indirect customers. The estimation process used to determine our SRA provision has been applied on a consistent basis and no material adjustments have been necessary to increase or decrease our reserves for SRA as a result of a significant change in underlying estimates. The Company will use a variety of methods to assess the adequacy of our SRA reserves to ensure that our financial statements are fairly stated. These will include periodic reviews of customer inventory data, customer contract programs and product pricing trends to analyze and validate the SRA reserves. | |||||||||||||||||
The provision for chargebacks is our most significant sales allowance. A chargeback represents an amount payable in the future to a wholesaler for the difference between the invoice price paid to the Company by our wholesale customer for a particular product and the negotiated contract price that the wholesaler’s customer pays for that product. The Company’s chargeback provision and related reserve varies with changes in product mix, changes in customer pricing and changes to estimated wholesaler inventories. The provision for chargebacks also takes into account an estimate of the expected wholesaler sell-through levels to indirect customers at contract prices. The Company will validate the chargeback accrual quarterly through a review of the inventory reports obtained from our largest wholesale customers. This customer inventory information is used to verify the estimated liability for future chargeback claims based on historical chargeback and contract rates. These large wholesalers represent 90% - 95% of the Company’s chargeback payments. The Company continually monitors current pricing trends and wholesaler inventory levels to ensure the liability for future chargebacks is fairly stated. | |||||||||||||||||
Net revenues and accounts receivable balances in the Company’s consolidated financial statements are presented net of SRA estimates. Certain SRA balances are included in accounts payable and accrued expenses. | |||||||||||||||||
Gross-To-Net Sales Deductions | |||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Gross IGI product sales | $ | 5,770 | $ | 2,114 | $ | 10,795 | $ | 4,380 | |||||||||
Reduction to gross product sales: | |||||||||||||||||
Chargebacks and billbacks | 1,884 | 562 | 3,468 | 1,222 | |||||||||||||
Sales discounts and other allowances | 504 | 175 | 1,001 | 365 | |||||||||||||
Total reduction to gross product sales | $ | 2,388 | $ | 737 | $ | 4,469 | $ | 1,588 | |||||||||
Net IGI product sales | $ | 3,382 | $ | 1,377 | $ | 6,326 | $ | 2,792 | |||||||||
Accounts receivable are presented net of SRA balances of $1.4 million and $0.8 million at June 30, 2014 and 2013, respectively. Accounts payable and accrued expenses include $0.4 million and $0.4 million at June 30, 2014 and 2013, respectively, for certain fees related to services provided by the wholesalers. Wholesale fees of $0.5 million and $0.2 for the three month periods ended June 30, 2014 and 2013, respectively, were included in cost of goods sold. Wholesale fees of $0.7 million and $0.4 for the six month periods ended June 30, 2014 and 2013, respectively, were included in cost of goods sold. In addition, in connection with four of the six products the Company currently manufactures, markets and distributes in its own label, in accordance with an agreement entered into in December of 2011, the Company is required to pay a royalty calculated based on net sales to one of its pharmaceutical partners. The royalty is calculated based on contracted terms of 40% of net sales for the four products which is to be paid quarterly to the pharmaceutical partner. In accordance with the agreement, net sales excludes fees related to services provided by the wholesalers. Accounts payable and accrued expenses include $0.6 million and $0.5 at June 30, 2014 and 2013, respectively, related to these royalties. Royalty expense of $0.8 million and $0.5 was included in cost of goods sold for the three months ended June 30, 2014 and 2013, respectively. Royalty expense of $2.1. million and $1.0 was included in cost of goods sold for the six months ended June 30, 2014 and 2013, respectively. The Company includes significant estimates to arrive at net product sales arising from wholesaler chargebacks, Medicaid and Medicare rebates, allowances and other pricing and promotional programs. | |||||||||||||||||
Contract Manufacturing Sales: The Company recognizes revenue when title transfers to its customers, which is generally upon shipment of products. These shipments are made in accordance with sales commitments and related sales orders entered into with customers either verbally or in written form. The revenues associated with these transactions, net of appropriate cash discounts, product returns and sales reserves, are recorded upon shipment of the products. | |||||||||||||||||
Research and Development Income: The Company establishes agreed upon product development agreements with its customers to perform product development services. Product development revenues are recognized in accordance with the product development agreement upon the completion of the phases of development and when the Company has no future performance obligations relating to that phase of development. Revenue recognition requires the Company to assess progress against contracted obligations to assure completion of each stage. These payments are generally non-refundable and are reported as deferred until they are recognizable as revenue. If no such arrangement exists, product development fees are recognized ratably over the entire period during which the services are performed. | |||||||||||||||||
In making such assessments, judgments are required to evaluate contingencies such as potential variances in schedule and the costs, the impact of change orders, liability claims, contract disputes and achievement of contractual performance standards. Changes in total estimated contract cost and losses, if any, are recognized in the period they are determined. Billings on research and development contracts are typically based upon terms agreed upon by the Company and customer and are stated in the contracts themselves and do not always align with the revenues recognized by the Company. | |||||||||||||||||
Major Customers, Policy [Policy Text Block] | ' | ||||||||||||||||
Major Customers | |||||||||||||||||
Major customers of the Company are defined as having revenue greater than 10% of total gross revenue. For the three months ended June 30, 2014, three of the Company’s customers accounted for 46% of the Company’s revenue. For the three months ended June 30, 2013, three of the Company’s customers accounted for 41% of the Company’s revenue. One of these customers is the same for both periods. For the six months ended June 30, 2014 and 2013, two of the Company’s customers accounted for 31% and five of the Company’s customers accounted for 67% of the Company’s revenue, respectively. One of these customers is the same for both periods. Accounts receivable related to the Company’s major customers comprised 49% of all accounts receivable as of June 30, 2014. The loss of one or more of these customers could have a significant impact on our revenues and harm our business and results of operations. | |||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In May 2014, FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers”. This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. Accordingly, the Company will adopt this ASU on January 1, 2017. Companies may use either a full retrospective or modified retrospective approach to adopt this ASU and management is currently evaluating which transition approach to use. The Company is currently evaluating the impact of ASU 2014-09. |
Note_3_Summary_of_Significant_1
Note 3 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||||||||||
Gross-To-Net Sales Deductions | |||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Gross IGI product sales | $ | 5,770 | $ | 2,114 | $ | 10,795 | $ | 4,380 | |||||||||
Reduction to gross product sales: | |||||||||||||||||
Chargebacks and billbacks | 1,884 | 562 | 3,468 | 1,222 | |||||||||||||
Sales discounts and other allowances | 504 | 175 | 1,001 | 365 | |||||||||||||
Total reduction to gross product sales | $ | 2,388 | $ | 737 | $ | 4,469 | $ | 1,588 | |||||||||
Net IGI product sales | $ | 3,382 | $ | 1,377 | $ | 6,326 | $ | 2,792 |
Note_4_Inventories_Tables
Note 4 - Inventories (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
30-Jun-14 | 31-Dec-13 | ||||||||
(Unaudited) | (Audited) | ||||||||
(amounts in thousands) | |||||||||
Raw materials | $ | 2,201 | $ | 2,172 | |||||
Work in progress | 21 | 271 | |||||||
Finished goods | 501 | 426 | |||||||
Total | $ | 2,723 | $ | 2,869 |
Note_5_Stock_Based_Compensatio1
Note 5 - Stock Based Compensation (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||
For the six months ended | |||||||||||||
30-Jun-14 | |||||||||||||
Expected volatility | 44.0% - 50.1% | ||||||||||||
Expected term (in years) | 3.2 -3.3 | ||||||||||||
Risk-free rate | 0.74%-1.05% | ||||||||||||
Expected dividends | 0% | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
Weighted | |||||||||||||
Number of | Average | ||||||||||||
Options | Exercise Price | ||||||||||||
Outstanding as of January 1, 2014 | 2,643,500 | $ | 1.13 | ||||||||||
Issued | 208,000 | $ | 3.55 | ||||||||||
Exercised | -110,500 | $ | 1.16 | ||||||||||
Forfeited | -126,000 | $ | 2.04 | ||||||||||
Expired | - | - | |||||||||||
Outstanding as of June 30, 2014 | 2,615,500 | $ | 1.27 | ||||||||||
Exercisable as of June 30, 2014 | 1,550,996 | $ | 1.12 | ||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||||||||
Range of Exercise Prices | Stock Options | Weighted | Weighted | ||||||||||
Outstanding | Average | Average | |||||||||||
Exercise | Remaining | ||||||||||||
Price | Contractual Life | ||||||||||||
$0.55 - $1.00 | 197,000 | $ | 0.75 | 4.13 | |||||||||
$1.01 - $1.50 | 2,076,500 | $ | 1.09 | 7.42 | |||||||||
$1.51 - $5.80 | 341,500 | $ | 2.69 | 8.32 | |||||||||
Total | 2,615,000 | $ | 1.27 | 7.29 | |||||||||
Stock | Weighted | ||||||||||||
Options | Average | ||||||||||||
Range of Exercise Prices | Exercisable | Exercise Price | |||||||||||
$0.55 - $1.00 | 197,000 | $ | 0.75 | ||||||||||
$1.01 - $1.50 | 1,215,330 | $ | 1.12 | ||||||||||
$1.51 - $5.80 | 138,666 | $ | 1.67 | ||||||||||
Total | 1,550,996 | $ | 1.12 | ||||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | ' | ||||||||||||
Number of | Weighted Average | ||||||||||||
Restricted Stock | Exercise Price | ||||||||||||
Non-vested balance at January 1, 2014 | 246,001 | $ | 2.64 | ||||||||||
Changes during the period: | |||||||||||||
Shares granted | - | - | |||||||||||
Shares vested | (29,334 | ) | 1 | ||||||||||
Shares forfeited | - | - | |||||||||||
Non-vested balance at June 30, 2014 | 216,667 | $ | 2.86 |
Note_9_Stock_Warrants_Tables
Note 9 - Stock Warrants (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | ' | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | ||||||||||||||||
Warrants | Exercise Price | Warrants | Exercise Price | ||||||||||||||
Beginning balance | 354,546 | $ | 1.21 | 782,259 | $ | 0.85 | |||||||||||
Stock warrants granted | - | - | - | - | |||||||||||||
Stock warrants expired | - | - | - | - | |||||||||||||
Stock warrants exercised | (270,546 | ) | 1.21 | (427,713 | ) | 0.55 | |||||||||||
Ending balance | 84,000 | $ | 1.21 | 354,546 | $ | 1.21 |
Note_2_Liquidity_Details
Note 2 - Liquidity (Details) (USD $) | 6 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2009 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 30, 2013 | Aug. 31, 2012 | Jul. 02, 2014 | Jun. 27, 2014 | ||
Public Offering [Member] | Public Offering [Member] | |||||||||||
Subsequent Event [Member] | ||||||||||||
Note 2 - Liquidity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Cash and Cash Equivalents, at Carrying Value | $1,762,000 | $1,313,000 | $2,536,000 | ' | ' | ' | $2,101,000 | [1] | ' | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | ' | ' | ' | ' | ' | 5,000,000 | 3,000,000 | 3,000,000 | ' | ' | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -178,000 | -660,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Working Capital | 5,924,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Public Offering, Shares Authorized (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,650,000 | |
Share Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | $5 | |
Stock Issued During Period, Shares, New Issues (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,347,500 | ' | |
Proceeds from Issuance of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,200,000 | ' | |
Proceeds from Issuance of Private Placement | ' | ' | 2,000,000 | 7,213,000 | 5,304,000 | ' | ' | ' | ' | ' | ' | |
Long-term Line of Credit | $3,000,000 | ' | ' | ' | ' | $3,000,000 | ' | ' | ' | ' | ' | |
[1] | Derived from the audited December 31, 2013 financial statements |
Note_3_Summary_of_Significant_2
Note 3 - Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | ' | ' | 2,699,000 | 6,049,112 |
Accounts Payable and Accrued Liabilities | $0.40 | $0.40 | $0.40 | $0.40 |
WholeSale Fees | 0.5 | 0.2 | 0.7 | 0.4 |
Royalty Expense | 0.8 | 0.5 | 2.1 | 1 |
Percentage of Accounts Receivable | 49.00% | ' | 49.00% | ' |
Net of SRA Balance [Member] | ' | ' | ' | ' |
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' |
Accounts Receivable, Net | 1.4 | 0.8 | 1.4 | 0.8 |
Royalty [Member] | ' | ' | ' | ' |
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' |
Accounts Payable and Accrued Liabilities | $0.60 | $0.50 | $0.60 | $0.50 |
Customer Concentration Risk [Member] | ' | ' | ' | ' |
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' |
Number of Customers | 3 | 3 | 2 | 5 |
Concentration Risk, Percentage | 46.00% | 41.00% | 31.00% | 67.00% |
Minimum [Member] | ' | ' | ' | ' |
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' |
Whole Saler Percent of Chargebacks | 90.00% | ' | 90.00% | ' |
Maximum [Member] | ' | ' | ' | ' |
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' |
Whole Saler Percent of Chargebacks | 95.00% | ' | 95.00% | ' |
Note_3_Summary_of_Significant_3
Note 3 - Summary of Significant Accounting Policies (Details) - Gross-to-Net Sales Deductions (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Gross IGI product sales | $5,770 | $2,114 | $10,795 | $4,380 |
Chargebacks and billbacks | 1,884 | 562 | 3,468 | 1,222 |
Sales discounts and other allowances | 504 | 175 | 1,001 | 365 |
Total reduction to gross product sales | 2,388 | 737 | 4,469 | 1,588 |
Net IGI product sales | 6,021 | 3,706 | 12,520 | 7,174 |
Gross Net Adjustments [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Net IGI product sales | $3,382 | $1,377 | $6,326 | $2,792 |
Note_4_Inventories_Details_Inv
Note 4 - Inventories (Details) - Inventories (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Inventories [Abstract] | ' | ' | |
Raw materials | $2,201 | $2,172 | |
Work in progress | 21 | 271 | |
Finished goods | 501 | 426 | |
Total | $2,723 | $2,869 | [1] |
[1] | Derived from the audited December 31, 2013 financial statements |
Note_5_Stock_Based_Compensatio2
Note 5 - Stock Based Compensation (Details) (USD $) | 6 Months Ended | 6 Months Ended | 132 Months Ended | 186 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2009 | Jun. 30, 2014 | Apr. 12, 2010 | Jun. 30, 2014 | 19-May-10 | Jun. 30, 2014 | 29-May-14 | Mar. 31, 2014 | Jun. 30, 2014 | |
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Nineteen Ninety Nine Director Stock Options [Member] | Director Stock Option Plan - 1999 (Member) | Nineteen Ninety Nine Stock Incentive Plan [Member] | Nineteen Ninety Nine Stock Incentive Plan [Member] | Nineteen Ninety Nine Stock Incentive Plan [Member] | Two Thousand Nine Plan [Member] | Two Thousand Nine Plan [Member] | Two Thousand Nine Plan [Member] | Plan 2009 (Member) | Plan 2009 (Member) | 1999 Plan, 2009 Plan and Director Plan [Member] | Minimum [Member] | |||
Minimum [Member] | Maximum [Member] | Nineteen Ninety Nine Director Stock Options [Member] | ||||||||||||||||
Note 5 - Stock Based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | ' | 1,975,000 | ' | 3,200,000 | ' | 3,200,000 | ' | ' | 5,000,000 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 208,000 | ' | ' | ' | ' | ' | 2,339,798 | ' | ' | ' | 2,892,500 | ' | ' | ' | 1,473,748 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 126,000 | ' | ' | ' | ' | ' | ' | 777,782 | ' | ' | ' | ' | ' | ' | 230,420 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | '1 year | '3 years | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | '1 year |
Award Term | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' |
Percent FMV Common Stock Options Granted | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period from Date of Grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,615,500 | 2,643,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,858,000 | ' | ' | ' | 2,615,000 | ' |
Common Stock, Capital Shares Reserved for Future Issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,215,820 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $0.89 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars) | $10,564,685 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value (in Dollars) | 6,498,289 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | 420,590 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 304,000 | ' | 256,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense (in Dollars) | ' | ' | $365,000 | $9,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_5_Stock_Based_Compensatio3
Note 5 - Stock Based Compensation (Details) - Fair Value Assumptions of Option Awards | 6 Months Ended |
Jun. 30, 2014 | |
Minimum [Member] | ' |
Note 5 - Stock Based Compensation (Details) - Fair Value Assumptions of Option Awards [Line Items] | ' |
Expected volatility | 44.00% |
Expected term (in years) | '3 years 73 days |
Risk-free rate | 0.74% |
Weighted Average [Member] | ' |
Note 5 - Stock Based Compensation (Details) - Fair Value Assumptions of Option Awards [Line Items] | ' |
Expected dividends | 0.00% |
Maximum [Member] | ' |
Note 5 - Stock Based Compensation (Details) - Fair Value Assumptions of Option Awards [Line Items] | ' |
Expected volatility | 50.10% |
Expected term (in years) | '3 years 109 days |
Risk-free rate | 1.05% |
Note_5_Stock_Based_Compensatio4
Note 5 - Stock Based Compensation (Details) - Option Activity (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Option Activity [Abstract] | ' |
Outstanding as of January 1, 2014 | 2,643,500 |
Outstanding as of January 1, 2014 (in Dollars per share) | $1.13 |
Outstanding as of June 30, 2014 | 2,615,500 |
Outstanding as of June 30, 2014 (in Dollars per share) | $1.27 |
Exercisable as of June 30, 2014 | 1,550,996 |
Exercisable as of June 30, 2014 (in Dollars per share) | $1.12 |
Issued | 208,000 |
Issued (in Dollars per share) | $3.55 |
Exercised | -110,500 |
Exercised | '$1.16 |
Forfeited | -126,000 |
Forfeited (in Dollars per share) | $2.04 |
Note_5_Stock_Based_Compensatio5
Note 5 - Stock Based Compensation (Details) - Options Outstanding and Exercisable (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Options Outstanding [Member] | Options Outstanding [Member] | Options Outstanding [Member] | Options Outstanding [Member] | |||
Range 1 [Member] | Range 2 [Member] | Range 3 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' |
Stock Options Outstanding | ' | ' | 2,615,000 | 197,000 | 2,076,500 | 341,500 |
Weighted Average Exercise Price | $1.27 | $1.13 | $1.27 | $0.75 | $1.09 | $2.69 |
Weighted Average Remaining Contractual Life | ' | ' | '7 years 105 days | '4 years 47 days | '7 years 153 days | '8 years 116 days |
Stock Options Exercisable | ' | ' | 1,550,996 | 197,000 | 1,215,330 | 138,666 |
Weighted Average Exercise Price | ' | ' | $1.12 | $0.75 | $1.12 | $1.67 |
Note_5_Stock_Based_Compensatio6
Note 5 - Stock Based Compensation (Details) - Restricted Stock Awards (USD $) | 5 Months Ended | |
Jun. 03, 2014 | Jun. 30, 2014 | |
Restricted Stock Awards [Abstract] | ' | ' |
Non-vested balance at January 1, 2014 | 246,001 | 216,667 |
Non-vested balance at January 1, 2014 | $2.64 | $2.86 |
Changes during the period: | ' | ' |
Shares vested | -29,334 | ' |
Shares vested | $1 | ' |
Non-vested balance at June 30, 2014 | ' | 216,667 |
Non-vested balance at June 30, 2014 | ' | $2.86 |
Note_6_Income_Taxes_Details
Note 6 - Income Taxes (Details) | Jun. 30, 2014 |
Income Tax Disclosure [Abstract] | ' |
Change in Ownership Percent | 50.00% |
Stockholder Ownership | 5.00% |
Note_7_License_Fee_Details
Note 7 - License Fee (Details) (USD $) | 0 Months Ended | 6 Months Ended | ||
Feb. 02, 2013 | Dec. 12, 2005 | Jun. 30, 2014 | Jun. 30, 2013 | |
Licensing Agreements [Member] | Licensing Agreements [Member] | |||
Note 7 - License Fee (Details) [Line Items] | ' | ' | ' | ' |
Number of Years | ' | '10 years | ' | ' |
Finite-Lived License Agreements, Gross | ' | $1,000,000 | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '15 years | ' | '10 years | ' |
Amortization | ' | ' | $50,000 | $50,000 |
Note_8_Note_PayableBank_Detail
Note 8 - Note Payable-Bank (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||
Aug. 02, 2013 | Feb. 05, 2013 | Aug. 31, 2012 | Mar. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 30, 2013 | Jul. 26, 2013 | Mar. 31, 2014 | Jul. 26, 2013 | Mar. 31, 2014 | Jul. 26, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jul. 26, 2013 | Mar. 31, 2014 | Jul. 26, 2013 | Mar. 31, 2014 | |
Formula Revolving Line (Member) | Formula Revolving Line (Member) | Formula Revolving Line (Member) | Formula Revolving Line (Member) | Non-Formula Revolving Line (Member) | Non-Formula Revolving Line (Member) | Non-Formula Revolving Line (Member) | Term of Line of Credit (Member) | Term of Line of Credit (Member) | trailing 3 month basis (Member) | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | ||||||||
Above Prime Rate [Member] | Above Prime Rate [Member] | Maximum [Member] | Above Prime Rate [Member] | ||||||||||||||||||
Note 8 - Note Payable-Bank (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Lines of Credit (in Dollars) | $1,000,000 | $1,000,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Line of Credit (in Dollars) | ' | ' | ' | 3,000,000 | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | 4.90% | 1.90% | ' | ' | 5.15% | 2.15% | ' | 2.40% | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.65% | 5.65% | 8.90% | ' | 5.90% | ' | 6.15% | ' | ' | ' | ' | ' |
Line of Credit Facility, Covenant Terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one | 'three | ' | ' | ' | ' |
Debt Instrument, Payment Terms | ' | ' | ' | '42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidity Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1.25 | 0.9 | 1 |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | ' | ' | $3,000,000 | ' | $5,000,000 | $5,000,000 | $3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_9_Stock_Warrants_Details
Note 9 - Stock Warrants (Details) (USD $) | 0 Months Ended | 1 Months Ended | ||||||||||
Dec. 12, 2005 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 07, 2014 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 08, 2010 | Dec. 08, 2010 | Dec. 08, 2010 | |
Warrant Issued in Connection with Credit Agreement (Member) | Warrant Issued in Connection with Credit Agreement (Member) | Warrant Purchase Limit (Member) | Value of Warrants Outstanding (Member) | Warrant Issued in Connection with Private Placement Offering (Member) | First Placement Agent (Member) | Second Placement Agent (Member) | ||||||
Note 9 - Stock Warrants (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | ' | 84,000 | 354,546 | 354,546 | 782,259 | ' | 270,546 | 427,713 | ' | ' | 338,182 | 16,364 |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | ' | $1.21 | $1.21 | $1.21 | $0.85 | ' | ' | $0.55 | ' | $1.21 | ' | ' |
Number of Years | '10 years | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' |
Warrants and Rights Outstanding (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | $209,000 | ' | ' | ' |
Note_9_Stock_Warrants_Details_
Note 9 - Stock Warrants (Details) - Stock Warrants (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Stock Warrants [Abstract] | ' | ' |
Beginning balance | 354,546 | 782,259 |
Beginning balance | $1.21 | $0.85 |
Stock warrants exercised | -270,546 | -427,713 |
Stock warrants exercised | $1.21 | $0.55 |
Ending balance | 84,000 | 354,546 |
Ending balance | $1.21 | $1.21 |
Note_10_Asset_Purchase_Agreeme1
Note 10 - Asset Purchase Agreement (Details) (USD $) | 0 Months Ended |
Feb. 02, 2013 | |
Asset Purchase Agreement Disclosure [Abstract] | ' |
Payments to Acquire Other Productive Assets | $1,400,000 |
Milestone Payment | 400,000 |
Payments to Acquire Productive Assets | $1,800,000 |
Finite-Lived Intangible Asset, Useful Life | '15 years |
No-Compete Contract, Number of Years | '7 years |
Note_12_Subsequent_Event_Detai
Note 12 - Subsequent Event (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jul. 02, 2014 | Jun. 30, 2014 | Jun. 27, 2014 | |
In Millions, except Share data, unless otherwise specified | Public Offering [Member] | Public Offering [Member] | Public Offering [Member] | |||
Subsequent Event [Member] | Underwriter [Member] | |||||
Note 12 - Subsequent Event (Details) [Line Items] | ' | ' | ' | ' | ' | |
Public Offering, Shares Authorized | ' | ' | ' | ' | 4,650,000 | |
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 | [1] | ' | ' | $0.01 |
Share Price | ' | ' | $5 | ' | $5 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | ' | ' | ' | 697,500 | ' | |
Stock Issued During Period, Shares, New Issues | ' | ' | 5,347,500 | ' | ' | |
Proceeds from Issuance of Common Stock | ' | ' | $25.20 | ' | ' | |
[1] | Derived from the audited December 31, 2013 financial statements |