Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 03, 2014 | Jun. 30, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'Microvision Inc | ' | ' |
Entity Central Index Key | '0000065770 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' | ' |
Is Entity a Voluntary Filer? | 'No | ' | ' |
Is Entity's Reporting Status Current? | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $70,400,000 |
Entity Common Stock, Shares Outstanding | ' | 31,657,000 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $5,375 | $6,850 |
Accounts receivable, net of allowance of $373 and $332 | 24 | 1,115 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | 12 |
Inventory | 49 | 497 |
Other current assets | 336 | 1,221 |
Total current assets | 5,784 | 9,695 |
Property and equipment, net | 1,065 | 1,205 |
Restricted cash | 435 | 436 |
Intangible assets | 1,145 | 1,580 |
Other assets | 18 | 22 |
Total assets | 8,447 | 12,938 |
Current liabilities | ' | ' |
Accounts payable | 1,610 | 3,035 |
Accrued liabilities | 2,455 | 4,007 |
Deferred revenue | 0 | 609 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 680 | 98 |
Warrant liability | 4,902 | 0 |
Current portion of capital lease obligations | 15 | 48 |
Current portion of long-term debt | 0 | 67 |
Total current liabilities | 9,662 | 7,864 |
Capital lease obligations, net of current portion | 0 | 20 |
Deferred rent, net of current portion | 481 | 0 |
Total liabilities | 10,143 | 7,884 |
Commitments and contingencies (Note 11) | ' | ' |
Shareholders equity | ' | ' |
Preferred stock, par value $.001; 25,000 shares authorized; 0 and 0 shares issued and outstanding | 0 | 0 |
Common stock, par value $.001; 100,000 shares authorized; 32,069 and 25,237 shares issued and outstanding at December 31, 2013 and 2012, respectively | 32 | 25 |
Additional paid-in capital | 448,981 | 442,560 |
Accumulated deficit | -450,709 | -437,531 |
Total shareholders' equity (deficit) | -1,696 | 5,054 |
Total liabilities and shareholders' equity | $8,447 | $12,938 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Current assets | ' | ' |
Allowance for doubtful accounts receivable, current | $373 | $332 |
Stockholders equity | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 25,000 | 25,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 32,069 | 25,237 |
Common stock, shares outstanding | 32,069 | 25,237 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | ' | ' |
Product revenue | $2,341 | $6,782 |
Contract revenue | 602 | 1,583 |
Development revenue | 2,909 | 0 |
Total revenue | 5,852 | 8,365 |
Cost of product revenue | 1,518 | 6,085 |
Cost of contract revenue | 283 | 839 |
Total cost of revenue | 1,801 | 6,924 |
Gross margin | 4,051 | 1,441 |
Research and development expense | 10,267 | 12,851 |
Sales, marketing, general and administrative expense | 8,792 | 11,252 |
Impairment of intangible assets | 277 | 284 |
Gain on disposal of fixed assets | -35 | -79 |
Gain on sale of previously reserved inventory | -156 | -212 |
Total operating expenses | 19,145 | 24,096 |
Loss from operations | -15,094 | -22,655 |
Change in warrant liability | 1,801 | 0 |
Other income (expense) | 115 | -38 |
Net loss | ($13,178) | ($22,693) |
Net loss per share - basic and diluted | ($0.47) | ($1.05) |
Weighted-average shares outstanding - basic and diluted | 28,025 | 21,595 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net loss | ($13,178) | ($22,693) |
Other comprehensive gain (loss): | ' | ' |
Unrealized gain on investment securities, available-for-sale | 0 | 3 |
Less: reclassification adjustment for losses realized in net loss | 0 | 32 |
Comprehensive loss | ($13,178) | ($22,658) |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Common stock | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit | Total |
Beginning balances at Dec. 31, 2011 | $17,000 | $425,658,000 | ($35,000) | ($414,838,000) | $10,802,000 |
Beginning balances, shares at Dec. 31, 2011 | 17,019,000 | ' | ' | ' | ' |
Share-based compensation expense | 0 | 2,286,000 | 0 | 0 | 2,286,000 |
Share-based compensation expense, shares | 648,000 | ' | ' | ' | ' |
Exercise of warrants and options | 0 | 23,000 | 0 | 0 | 23,000 |
Exercise of warrants and options, shares | 16,000 | ' | ' | ' | ' |
Sales of common stock and warrants | 8,000 | 14,593,000 | 0 | 0 | 14,601,000 |
Sales of common stock and warrants, shares | 7,554,000 | ' | ' | ' | ' |
Other comprehensive income (loss) | 0 | 0 | 35,000 | 0 | 35,000 |
Net loss | 0 | 0 | 0 | -22,693,000 | -22,693,000 |
Ending balances at Dec. 31, 2012 | 25,000 | 442,560,000 | 0 | -437,531,000 | 5,054,000 |
Ending balances, shares at Dec. 31, 2012 | 25,237,000 | ' | ' | ' | ' |
Share-based compensation expense | 0 | 1,589,000 | 0 | 0 | 1,589,000 |
Share-based compensation expense, shares | 323,000 | ' | ' | ' | ' |
Exercise of warrants and options | 0 | 41,000 | 0 | 0 | 41,000 |
Exercise of warrants and options, shares | 23,000 | ' | ' | ' | ' |
Sales of common stock and warrants | 7,000 | 4,255,000 | 0 | 0 | 4,262,000 |
Sales of common stock and warrants, shares | 6,128,000 | ' | ' | ' | ' |
Exchange of warrants | 0 | 536,000 | 0 | 0 | 536,000 |
Exchange of warrants, shares | 358,000 | ' | ' | ' | ' |
Net loss | 0 | 0 | 0 | -13,178,000 | -13,178,000 |
Ending balances at Dec. 31, 2013 | $32,000 | $448,981,000 | $0 | ($450,709,000) | ($1,696,000) |
Ending balances, shares at Dec. 31, 2013 | 32,069,000 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Cash Flows [Abstract] | ' | ' |
Net loss | ($13,178) | ($22,693) |
Adjustments to reconcile net loss to net cash used in operations: | ' | ' |
Depreciation | 923 | 1,445 |
Amortization of intangible assets | 158 | 184 |
Impairment of intangible assets | 277 | 284 |
Gain on disposal of property and equipment | -35 | -79 |
Realizeld loss on sale of short-term investments | 0 | 32 |
Non-cash stock-based compensation expense | 1,606 | 2,269 |
Change in warrant liability | -1,801 | 0 |
Realized gain on warrant exchange | -99 | 0 |
Inventory write-downs | 303 | 1,094 |
Non-cash deferred rent | -31 | -118 |
Change in: | ' | ' |
Accounts receivable, net | 1,091 | -652 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 12 | 58 |
Inventory | 145 | 2,663 |
Other current assets | 868 | -419 |
Other assets | 4 | 12 |
Accounts payable | -1,486 | -4,077 |
Accrued liabilities | -1,387 | -1,175 |
Deferred revenue | -609 | 609 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 582 | -58 |
Net cash used in operating activities | -12,657 | -20,621 |
Cash flows from investing activities | ' | ' |
Sales of investment securities | 0 | 11 |
Decrease in restricted cash | 1 | 350 |
Proceeds on sale of property and equipment | 35 | 80 |
Purchases of property and equipment | -376 | -533 |
Net cash used in investing activities | -340 | -92 |
Cash flows from financing activities | ' | ' |
Principal payments under capital leases and long-term debt | -120 | -136 |
Net proceeds from issuance of common stock and warrants | 11,642 | 14,624 |
Net cash provided by financing activities | 11,522 | 14,488 |
Net decrease in cash and cash equivalents | -1,475 | -6,225 |
Cash and cash equivalents, at beginning of period | 6,850 | 13,075 |
Cash and cash equivalents, at end of period | 5,375 | 6,850 |
Supplemental disclosure of cash flow information | ' | ' |
Cash paid for interest | 12 | 30 |
Supplemental schedule of non-cash investing and financing activities | ' | ' |
Other non-cash additions to property and equipment | 407 | 0 |
Issuance of common stock for exchange of warrants | $536 | $0 |
1_The_Company_and_liquidity
1. The Company and liquidity | 12 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
The Company and liquidty - Note 1 | ' |
1. The Company and liquidity | |
MicroVision, Inc. (the "Company") is developing its proprietary PicoP® display technology which can be used by our customers to create high-resolution miniature laser display and imaging engines. Our PicoP display technology uses our widely patented expertise in two dimensional Micro-Electrical Mechanical Systems (MEMS), lasers, optics, and electronics to create a high quality video or still image from a small form factor device with lower power needs than conventional display technologies. Our strategy is to develop and supply PicoP display technology directly or through licensing arrangements to original device manufacturers (ODMs) and original equipment manufacturers (OEMs) in various market segments, including consumer electronics and automotive, for integration into their products. | |
During 2012, we aligned our operations to our ingredient brand strategy, simplifying our operations and resulting in a significant reduction to our 2013 cash usage relative to 2012. Our strategy is to focus our efforts on licensing our technology and selling display engine components to partners who will produce display engines based on PicoP display technology and either sell those display engines to OEMs, or incorporate the engines into their own products. | |
Our development efforts are focused on improving the performance of display engines through the improvement of both engine system, hardware and software design, and the performance of various components of the display engine. We also provide engineering support to our customers as they prepare to manufacture display engines as well as providing support to ODMs and OEMs during the integration and optimization of PicoP display technology for specific products. | |
The primary objective for consumer applications is to provide users of mobile devices such as smartphones, tablets and other consumer electronics products with a large screen viewing experience produced by a small projector either embedded in the device or via a companion product. These potential products would allow users to watch movies and videos, play games, and display images and other data onto a variety of surfaces, freeing users from the limitations of a small screen. | |
PicoP display technology could also be combined with other components and systems to be embedded into a vehicle or integrated into a portable standalone head-up display (HUD). HUD technology allows for important information, such as safety warnings or navigation instructions, to be projected so that it appears in front of vehicle operators where the information can be accessed without taking their eyes off the road. | |
We also see potential for PicoP display technology in other areas, although we are not currently working with customers. PicoP display technology could be combined with other components and systems to be incorporated into a pair of glasses to provide the mobile user with a see-through or occluded personal display to view movies, play games or access other content. | |
Devices enabled by PicoP display technology could be used in field-based professions such as service repair or sales to view and share information such as schematics for equipment repair, sales data, orders or contact information on a larger, more user-friendly display. We also see potential for embedding PicoP display technology in industrial products where our displays could be used for 3D measuring and digital signage, enhancing the overall user experience of these applications. | |
We develop and procure intellectual property rights relating to our technology as a key aspect of our business strategy. We generate intellectual property from our internal research and development activities and our ongoing performance on development contracts. We also have acquired exclusive rights to various technologies under licensing and acquisition agreements. | |
Based on our current operating plan, we anticipate that we have sufficient cash and cash equivalents to fund our operations through March 2014. We will require additional cash to fund our operating plan past that time. We plan to obtain additional cash through the issuance of equity or debt securities. There can be no assurance that additional cash will be available or that, if available, it will be available on terms acceptable to us on a timely basis. If adequate funds are not available on a timely basis, we intend to consider limiting our operations substantially. This limitation of operations could include reducing our planned investment in development projects resulting in reductions in staff, operating costs, capital expenditures and investment in research and development. | |
Our capital requirements will depend on many factors, including, but not limited to, the rate at which OEMs or ODMs introduce products incorporating the PicoP display and image capture technologies and the market acceptance and competitive position of such products. If revenues are less than anticipated, if the mix of revenues vary from anticipated amounts or if expenses exceed the amounts budgeted, we may require additional capital earlier than expected to further the development of our technologies, for expenses associated with product development, and to respond to competitive pressures or to meet unanticipated development difficulties. In addition, our operating plan provides for the development of strategic relationships with systems and equipment manufacturers that may require additional investments by us. | |
We have received a report from our independent registered public accounting firm regarding the consolidated financial statements for the year ended December 31, 2013 that includes an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. These consolidated financial statements are prepared assuming the Company will continue as a going concern. | |
A 1:8 reverse stock split of MicroVision's common stock became effective on February 17, 2012. All of the share and per share amounts discussed and shown in the consolidated financial statements and notes have been adjusted to reflect the effect of this reverse split. | |
Summary_of_significant_account
Summary of significant accounting policies - Note 2 | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Organization Consolidation Abstract | ' | ||||||||||||
Summary of significant accounting policies - Note 2 | ' | ||||||||||||
2. Summary of significant accounting policies | |||||||||||||
Use of estimates | |||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles of the United States requires us 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. Actual results could differ from those estimates. We have identified the following areas where significant estimates and assumptions have been made in preparing the financial statements: revenue recognition, valuation of share-based compensation, allowance for uncollectible receivables and inventory valuation. | |||||||||||||
Principles of consolidation | |||||||||||||
Our consolidated financial statements include the accounts of MicroVision, Inc. and MicroVision Innovations Singapore Pte. Ltd. ("MicroVision Singapore"), a wholly owned foreign subsidiary. MicroVision Singapore was incorporated in April 2011 and was engaged in advanced research and development activities and operation support functions for MicroVision, Inc. There were no material intercompany accounts and transactions during the years ended December 31, 2013 and 2012. | |||||||||||||
Cash and cash equivalents and fair value of financial instruments | |||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the authoritative guidance establishes a three level fair value inputs hierarchy, and requires an entity to maximize the use of observable valuation inputs and minimize the use of unobservable inputs. We use market data, assumptions and risks we believe market participants would use in measuring the fair value of the asset or liability, including the risks inherent in the inputs and the valuation techniques. The hierarchy is summarized below. | |||||||||||||
Level 1 - Observable inputs such as quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2 - Observable inputs such as quoted prices for similar assets or liabilities in markets that are not sufficiently active to qualify as Level 1 or, other inputs that are observable by market data. | |||||||||||||
Level 3 - Unobservable inputs for which there is little or no market data, which requires us to develop our own assumptions, which are significant to the measurement of the fair values. | |||||||||||||
Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, long-term debt and warrant liabilities. Excluding the long term debt and warrant liabilities, the carrying value of our financial instruments approximates fair value due to their short maturities. The carrying amount of long-term debt at December 31, 2013 and 2012 was not materially different from the fair value based on rates available for similar types of arrangements. At each balance sheet date, we evaluate the warrant liability and any change in value is recorded as a non-operating gain or loss on the statement of operations. Due to the features of the warrants, the determination of the fair value of the warrant liability may vary depending on our common stock price. If the price of our common stock is less than the exercise price of the warrant, we will calculate the fair value of the warrant liability as the fair value of the common stock that would be required to be issued to settle the exchange feature of the warrant. If the price of our common stock is greater than the exercise price of the warrant, we will use a binomial option pricing model to estimate the fair value of the warrant as the exchange feature provided per the agreement will no longer be available to the holder. | |||||||||||||
The valuation inputs hierarchy classification for the warrant liability measured at fair value on a recurring basis is summarized below as of December 31, 2013. | |||||||||||||
As of December 31, 2013: | Level 1 | Level 2 | Level 3 | Total | |||||||||
Liabilities | |||||||||||||
Warrant liability | $ | - | $ | 4,902,000 | $ | - | $ | 4,902,000 | |||||
$ | - | $ | 4,902,000 | $ | - | $ | 4,902,000 | ||||||
Our cash equivalents are comprised of money market savings accounts and equity securities. We classify investment securities available-for-sale purchased with 90 days or less remaining until contractual maturities as cash equivalents. | |||||||||||||
Intangible assets | |||||||||||||
Our intangible assets consist entirely of purchased patents. The patents are amortized using the straight-line method over their estimated period of benefit, ranging from one to 17 years. We evaluate the recoverability of intangible assets periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. We compare the projected undiscounted net cash flows associated with the related intangible assets or group of assets over their remaining lives against their respective carrying amounts. Measurement of an impairment loss for our intangible assets is based on the difference between the fair value of the asset and its carrying value. | |||||||||||||
Inventory | |||||||||||||
Inventory consists of components, raw materials and finished goods for our pico projectors. Inventory is recorded at the lower of cost or market with cost determined on a net realizable value basis. We periodically assess the need to provide for obsolescence of inventory and adjust the carrying value of inventory to its net realizable value when required. In addition, we reduce the value of our inventory to its estimated scrap value when we determine that it is not probable that the inventory will be consumed through normal production during the next twelve months. | |||||||||||||
Property and equipment | |||||||||||||
Property and equipment is stated at cost and depreciated over the estimated useful lives of the assets (two to five years) using the straight-line method. Leasehold improvements are depreciated over the shorter of estimated useful lives or the lease term. Costs for repairs and maintenance are charged to expense as incurred and expenditures for major improvements are capitalized at cost. Gains or losses on the disposition of assets are reflected in the income statements at the time of disposal. | |||||||||||||
Restricted investments | |||||||||||||
As of December 31, 2013, restricted investments were in money market savings accounts and serve as collateral for $435,000 in irrevocable letters of credit. The restricted investments balance includes two letters of credit which are outstanding in connection with a lease agreement for our corporate headquarters building in Redmond, WA. The balance is required over the term of the lease, which expires in January 2019. In January 2012, a $350,000 letter of credit which was outstanding under the terms of a supplier agreement expired. | |||||||||||||
Revenue recognition | |||||||||||||
We evaluate the performance criteria and terms of our collaborative research and development agreements to determine whether revenue should be recognized under a performance-based method or milestone method. Significant items included in our evaluation are the following: | |||||||||||||
· | the nature of our obligation under the agreement, | ||||||||||||
· | whether provisions leading to variable revenues exist | ||||||||||||
· | whether any payments are required to be repaid, | ||||||||||||
· | whether the deliverables should be treated as one unit of accounting or separated into multiple units, | ||||||||||||
· | whether substantive milestones exist, | ||||||||||||
· | whether milestone payments are commensurate with either our level of effort or the increase in value of the customer's rights, and | ||||||||||||
· | whether a licensing agreement exists. | ||||||||||||
We recognize development revenue as work progresses on the agreement and as our customer accepts the deliverables using a proportional method based on the lesser of the cumulative proportion of total planned costs to be incurred under the agreement or the cash payments received plus outstanding billings for work accepted by the customer. Since our collaborative agreements generally require some level of technology development, the actual costs required to complete a contract can vary from our estimates. The proportional revenue recognition method we use for collaborative research and development agreements includes adjustments for revisions to estimated total agreement costs. Each period, we evaluate total estimated costs for each agreement. Any adjustments that result from revisions to the estimated costs are recognized in the period we become aware of changes. The costs for work performed under collaborative research and development agreements are expensed in the periods incurred and included in the Statement of Operations in research and development expense. | |||||||||||||
Product revenue is recognized when there is sufficient evidence of an arrangement, delivery has occurred, the fee is fixed or determinable, and collection is reasonably assured. We have entered into agreements with resellers and distributors, as well as selling directly to the public. Sales made to resellers and distributors are recognized using either the sell-through method or upon expiration of the contractually agreed-upon acceptance period, depending on the volume of the sale. Some of the agreements with resellers and distributors contain price-protection clauses, and revenue is recognized net of these amounts. Sales made directly to the public are recognized either upon expiration of the contractual acceptance period after which there are no rights of return, or net of estimated returns and allowances. Provisions are made for warranties at the time revenue is recorded. | |||||||||||||
Contract revenue has primarily been generated from contracts to develop the light scanning technology and to produce demonstration units for commercial enterprises and the U.S. government. We recognize contract revenue as work progresses on long-term cost plus fixed fee and fixed price contracts using the percentage-of-completion method, which relies on estimates of total expected contract revenue and costs. Our revenue contracts generally include a statement of the work we are to complete and the total fee we will earn from the contract. When we begin work on the contract and at the end of each accounting period, we estimate the labor, material, and other cost required to complete the statement of work compared to cost incurred to date. We use information provided by our technical team, project managers, vendors, outside consultants and others to develop our cost estimates. Since our contracts generally require some level of technology development to complete, the actual cost required to complete a statement of work can vary from our estimates. We have developed processes that allow us to reasonably estimate the cost to complete a contract. Historically, we have made only immaterial revisions in the estimates to complete the contract at each reporting period. Recognized revenues are subject to revisions as the contract progresses to completion and actual revenue and cost become certain. Revisions in revenue estimates are reflected in the period in which the facts that give rise to the revision become known. In the future, revisions in these estimates could significantly impact recognized revenue in any one reporting period. | |||||||||||||
We recognize losses, if any, as soon as identified. Losses occur when the estimated direct and indirect costs to complete the contract exceed unrecognized revenue. We evaluate the reserve for contract losses on a contract-by-contract basis. | |||||||||||||
We recognize contract revenue for prototype units and evaluation kits for development work upon acceptance or the expiration of the acceptance period, when there is sufficient evidence of an arrangement, the selling price is fixed or determinable and collection is reasonably assured. | |||||||||||||
Cost of revenue | |||||||||||||
Cost of product revenue includes the direct and allocated indirect costs of manufacturing products sold to customers. Direct costs include labor, materials and other costs incurred directly in the manufacture of these products. Indirect costs include labor and other costs associated with operating our manufacturing capabilities and capacity. | |||||||||||||
Cost of contract revenue includes both the direct and allocated indirect costs of performing on development contracts and producing prototype units and evaluation kits. Direct costs include labor, materials and other costs incurred directly in performing on a contract or producing prototype units and evaluation kits. Indirect costs include labor and other costs associated with operating our research and development department and building our technical capabilities and capacity. Cost of contract revenue is determined by the level of direct and indirect costs incurred, which can fluctuate substantially from period to period. | |||||||||||||
Our overhead, which includes the costs of procuring, inspecting and storing material, and facility and depreciation costs, is allocated to inventory, cost of product revenue, cost of contract revenue, and research and development expense based on the level of effort supporting production or research and development activity. | |||||||||||||
Concentration of credit risk and sales to major customers | |||||||||||||
Concentration of Credit Risk | |||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk are primarily cash equivalents and accounts receivable. We typically do not require collateral from our customers. As of December 31, 2013, our cash and cash equivalents are comprised of short-term highly rated money market savings accounts. | |||||||||||||
Concentration of Sales to Major Customers | |||||||||||||
During 2013, two commercial customers accounted for 86% of our total revenue. During 2012, one commercial customer accounted for 61% of our total revenue and 96% of our accounts receivable balance at December 31, 2012. | |||||||||||||
Income taxes | |||||||||||||
Deferred tax assets and liabilities are recorded for differences between the financial statement and tax bases of the assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable for the period increased or decreased by the change in deferred tax assets and liabilities during the period. | |||||||||||||
Net loss per share | |||||||||||||
Basic net loss per share is calculated using the weighted-average number of common shares outstanding during the periods. Net loss per share assuming dilution is calculated using the weighted-average number of common shares outstanding and the dilutive effect of all potentially dilutive securities, including common stock equivalents and convertible securities. Net loss per share assuming dilution is equal to basic net loss per share because the effect of dilutive securities outstanding during the periods including options and warrants computed using the treasury stock method, is anti-dilutive. | |||||||||||||
As of December 31, 2013 and 2012, we excluded the following convertible securities from diluted net loss per share as the effect of including them would have been anti-dilutive. The shares shown represent the number of shares of common stock which would be issued upon conversion in the respective years. | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Publicly traded warrants | - | 753,000 | |||||||||||
Options and private warrants | 9,996,000 | 5,696,000 | |||||||||||
Nonvested equity shares | 108,000 | 207,000 | |||||||||||
10,104,000 | 6,656,000 | ||||||||||||
Research and development | |||||||||||||
Research and development expenses consist of costs incurred for internally funded research and product development activities as well as collaborative research and development activities that are funded by customers. These costs include compensation related costs of employees, share-based compensation, materials, subcontracted services, facility costs, and depreciation of facilities and lab equipment. Research and development costs are expensed as incurred. | |||||||||||||
Long-lived assets | |||||||||||||
We evaluate the recoverability of our long-lived assets when an impairment is indicated based on expected undiscounted cash flows. We recognize impairment of the carrying value of long-lived assets, if any, based on the fair value of such assets. | |||||||||||||
Share-based compensation | |||||||||||||
Our share-based incentive compensation plans are described in Note 10. | |||||||||||||
We use the straight-line attribution method to allocate the fair value of share-based compensation awards over the requisite service period for each award. The following table shows the amount of share-based compensation expense included in the statements of operations for each period shown: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Cost of contract revenue | $ | 19,000 | $ | 34,000 | |||||||||
Cost of product revenue | 1,000 | 54,000 | |||||||||||
Research and development expense | 466,000 | 825,000 | |||||||||||
Sales, marketing, general and administrative expense | 1,120,000 | 1,356,000 | |||||||||||
$ | 1,606,000 | $ | 2,269,000 | ||||||||||
Reclassifications | |||||||||||||
Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. These reclassifications had no impact on net loss, shareholders' equity or cash flows as previously reported. | |||||||||||||
New accounting pronouncements | |||||||||||||
In February 2013, the Financial Accounting Standards Board ("FASB") issued guidance that requires disclosure of amounts reclassified out of accumulated other comprehensive income in its entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. We adopted this guidance on January 1, 2013. The adoption did not have a material impact on our financial position, results of operations or cash flows. | |||||||||||||
Longterm_contracts_Note_3
Long-term contracts - Note 3 | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements | ' | |||||||||
Long-term contracts - Note 3 | ' | |||||||||
3. Long-term contracts | ||||||||||
In March 2013, we entered into a $4.6 million collaborative research and development agreement with a prominent electronics company to incorporate our PicoP® display technology into a display engine that could enable a variety of new products. Based on the terms of this agreement, we recognize development revenue as work progresses on the agreement and as our customer accepts the deliverables using a proportional method based on the lesser of the cumulative proportion of total planned costs to be incurred under the agreement versus the cash payments received plus outstanding billings for work accepted by the customer. During the twelve months ended December 31, 2013, $2.9 million of revenue was recognized on this agreement. | ||||||||||
Historically, our contracts with the U.S. government were primarily cost-plus-fixed-fee type contracts. Under the terms of a cost-plus-fixed-fee contract, the U.S. government reimbursed us for negotiated actual direct and indirect cost incurred in performing the contracted services. We were not obligated to spend more than the contract value to complete the contracted services. The period of performance was generally one year. As of December 31, 2013, we were not performing services on any U.S. government contracts. | ||||||||||
The following table summarizes the costs incurred on our collaborative research and development agreements and revenue contracts (in thousands): | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Costs and estimated earnings incurred on uncompleted contracts | $ | 2,909 | $ | 1,977 | ||||||
Billings on uncompleted contracts | -3,589 | -2,063 | ||||||||
$ | -680 | $ | -86 | |||||||
Included in accompanying consolidated balance sheets under the following captions: | ||||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | - | $ | 12 | ||||||
Billings in excess of costs and estimated earnings on uncompleted | ||||||||||
contracts | -680 | -98 | ||||||||
$ | -680 | $ | -86 | |||||||
Inventory_Note_4
Inventory - Note 4 | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Inventory Disclosure | ' | |||||||||
Inventory - Note 4 | ' | |||||||||
4. Inventory | ||||||||||
Inventory consists of the following: | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Raw materials | $ | 23,000 | $ | 361,000 | ||||||
Finished goods | 26,000 | 136,000 | ||||||||
$ | 49,000 | $ | 497,000 | |||||||
The inventory at December 31, 2013 and 2012 consisted of components and finished goods primarily composed of our accessory pico projectors. Inventory is stated at the lower of cost or market. Management periodically assesses the need to provide for obsolescence of inventory and adjusts the carrying value of inventory to its net realizable value when required. In addition, we reduce the value of our inventory to its estimated scrap value when management determines that it is not probable that the inventory will be consumed through the normal course of business during the next twelve months. In 2013 and 2012, we recorded inventory write-downs of $303,000 and $1,094,000, respectively. At December 31, 2013 and 2012, we have aggregate write-downs recorded of $7,964,000 and $9,916,000, respectively, offsetting inventory on hand deemed to be obsolete or scrap inventory. | ||||||||||
Accrued_liabilities_Note_5
Accrued liabilities - Note 5 | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements | ' | |||||||||
Accrued liabilities - Note 5 | ' | |||||||||
6. Accrued liabilities | ||||||||||
Accrued liabilities consist of the following: | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Bonuses | $ | 725,000 | $ | 724,000 | ||||||
Payroll and payroll taxes | 375,000 | 427,000 | ||||||||
Compensated absences | 315,000 | 384,000 | ||||||||
Deferred rent credit | 99,000 | 187,000 | ||||||||
Warranty | 32,000 | 206,000 | ||||||||
Adverse purchase commitments | 500,000 | 634,000 | ||||||||
Accelerated rent expense | - | 109,000 | ||||||||
Professional fees | 76,000 | 533,000 | ||||||||
Other | 333,000 | 803,000 | ||||||||
$ | 2,455,000 | $ | 4,007,000 | |||||||
Property_and_equipment_net_Not
Property and equipment, net - Note 6 | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements | ' | |||||||||
Property and equipment, net - Note 6 | ' | |||||||||
6. Property and equipment, net | ||||||||||
Property and equipment consists of the following: | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Production equipment | $ | 2,943,000 | $ | 5,201,000 | ||||||
Leasehold improvements | 502,000 | 3,344,000 | ||||||||
Computer hardware and software/lab equipment | 4,373,000 | 9,002,000 | ||||||||
Office furniture and equipment | 1,100,000 | 1,485,000 | ||||||||
8,918,000 | 19,032,000 | |||||||||
Less: Accumulated depreciation | -7,853,000 | -17,827,000 | ||||||||
$ | 1,065,000 | $ | 1,205,000 | |||||||
Depreciation expense was $923,000 and $1,445,000 in 2013 and 2012, respectively. | ||||||||||
Intangible_assets_Note_7
Intangible assets - Note 7 | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Notes to Financial Statements | ' | ||||||
Intangible assets - Note 7 | ' | ||||||
7. Intangible assets | |||||||
Our intangible assets consist entirely of technology-based purchased patents. The patents are amortized using the straight-line method over their estimated period of benefit, ranging from one to 17 years. The gross value of our intangible assets was $1.7 million and $2.3 million as of December 31, 2013 and 2012, respectively. Amortization expense was $158,000 and $184,000 in 2013 and 2012, respectively. In 2013, we recorded an impairment amounting to $277,000 on 42 patents that were abandoned in prosecution. In 2012, we recorded an impairment amounting to $284,000 on 35 patents that were abandoned in prosecution. | |||||||
The following table outlines the estimated future amortization expense related to intangible assets held at December 31, 2013: | |||||||
Year ended December 31, | Amount | ||||||
2014 | $ | 132,000 | |||||
2015 | 132,000 | ||||||
2016 | 131,000 | ||||||
2017 | 120,000 | ||||||
2018 | 119,000 | ||||||
Thereafter | 511,000 | ||||||
Total | $ | 1,145,000 | |||||
8_Common_stock
8. Common stock | 12 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
Common stock - Note 8 | ' |
8. Common stock | |
In September 2013, we raised $6.6 million before issuance costs of approximately $452,000 from the sale of 3.5 million shares of common stock and warrants to purchase up to an aggregate of 2.1 million shares of our common stock in a registered direct offering. Details of the warrants are described below in Note 9. | |
In May 2013, we raised $5.85 million before issuance costs of approximately $362,000 from the sale of 2.6 million shares of common stock and warrants to purchase up to an aggregate of 2.0 million shares of our common stock in a registered direct offering. Details of the warrants are described below in Note 9. | |
In June 2012, we raised $10.5 million before issuance costs of approximately $823,000 through an underwritten public offering of 4.2 million shares of our common stock and warrants to purchase 2.1 million shares of our common stock. Details of the warrants are described below in Note 9. | |
In May 2012, we raised approximately $5.0 million before issuance costs of approximately $71,000 from the sale of 3.3 million shares of common stock and warrants to purchase 1.0 million shares of our common stock to private investors. Details of the warrants are described below in Note 9. | |
9_Warrants
9. Warrants | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Notes to Financial Statements | ' | |||||||||||||||
Warrants - Note 9 | ' | |||||||||||||||
9. Warrants | ||||||||||||||||
The warrants issued in September 2013 have an exercise price of $2.444 per share, a five year term, and are exercisable beginning on the date of issuance. Each warrant to purchase a share of common stock may also be exchanged during its term for a number of shares of common stock (but not more than one share of common stock for each warrant so exchanged) with a value determined by a formula if, among other things, our common stock is then trading at a price at or lower than the warrant exercise price per share. Subject to limitations in the warrants, we may require the warrants be exercised for cash if the closing bid price of our stock is over $3.055 for 20 consecutive trading days and the average daily dollar volume over that period is equal to or exceeds $300,000. | ||||||||||||||||
The warrants issued in May 2013 have an exercise price of $2.886 per share, a five year term, and are exercisable beginning on the date of issuance. Each warrant to purchase a share of common stock may also be exchanged during its term for a number of shares of common stock (but not more than one share of common stock for each warrant so exchanged) with a value determined by a formula if, among other things, our common stock is then trading at a price at or lower than the warrant exercise price per share. Subject to limitations in the warrants, we may require the warrants be exercised for cash if the closing bid price of our stock is over $3.61 for 20 consecutive trading days and the average daily dollar volume over that period is equal to or exceeds $300,000. | ||||||||||||||||
Based on the terms of the warrants we issued in May and September, 2013, we have determined that they should be classified as a liability given that the warrants could result in the issuance of a variable number of shares of common stock based on a conditional exchange provision that is outside of our control at any point when the share price of our common stock is equal to or less than the stated exercise prices of $2.886 and $2.444 per share. At the dates of issuance, and as of December 31, 2013, our common stock was trading at a value less than the stated exercise price. As such, the holders may elect to exchange the warrants for a variable number of shares of common stock as determined by a formula included in the warrants. However, the warrants limit the number of shares that may be issued under this exchange provision to one share of common stock for each warrant exchanged. The maximum number of shares that we could be required to issue is under the terms of the warrants is 4,071,552. As of December 31, 2013, 358,243 shares of common stock have been issued on a one-for-one basis under the warrant exchange provisions of the May and September agreements. As of December 31, 2013, based upon the terms of the then outstanding warrants and the quoted market price of our common stock, if the exchange feature had been exercised, we would have been required to issue 3,713,309 shares of common stock to satisfy the obligation without receiving any additional cash consideration, equal to an estimated fair market value of $4,902,000, which we believe is the best indication of the fair value of the warrant obligation as of December 31, 2013. Changes in the market value of our common stock may decrease the number of shares to be issued under this exchange feature. | ||||||||||||||||
At each balance sheet date, we evaluate the fair value of the warrants and any change in value will be recorded as a non-operating gain or loss on the statement of operations. During 2013, we recorded non-operating gains of $1.8 million related to the change in value of the warrants. If and when the exchange feature is exercised by the holder, we will recognize a gain or loss on the exchange based on the fair market value of the common stock issued by us to the holder to satisfy the exchange provision. | ||||||||||||||||
Subsequent to year end, the holders of the warrants we issued in May and September 2013 elected to exchange all of such remaining outstanding warrants for common stock under the exchange provision, see Note 15. | ||||||||||||||||
The warrants issued in June 2012 were issued with an exercise price of $2.65 per share, a five year term, and are exercisable beginning one year from the date of issuance. The exercise price of the warrants is subject to anti-dilution adjustments. As a result of subsequent financing activities, the exercise price has been reduced to $2.29. | ||||||||||||||||
The warrants issued in May 2012 have an exercise price of $2.125 per share, a three year term, and are exercisable 60 days from the date of issuance. | ||||||||||||||||
The following summarizes activity with respect to MicroVision common stock warrants during the two years ended December 31, 2013: | ||||||||||||||||
Warrants to | Weighted | |||||||||||||||
purchase | average | |||||||||||||||
common | excercise | |||||||||||||||
shares | price | |||||||||||||||
Outstanding at December 31, 2011 | 2,287,000 | $ | 14.96 | |||||||||||||
Granted: | ||||||||||||||||
Exercise price greater than intrinsic value | 3,100,000 | 2.48 | ||||||||||||||
Exercised | - | - | ||||||||||||||
Canceled/expired | -256,000 | 17.60 | ||||||||||||||
Outstanding at December 31, 2012 | 5,131,000 | 7.28 | ||||||||||||||
Granted: | ||||||||||||||||
Exercise price less than intrinsic value | 2,216,000 | 2.71 | ||||||||||||||
Exercise price greater than intrinsic value | 1,855,000 | 2.44 | ||||||||||||||
Exercised | -358,000 | 1.77 | ||||||||||||||
Canceled/expired | -753,000 | 28.80 | ||||||||||||||
Outstanding at December 31, 2013 | 8,091,000 | $ | 3.07 | |||||||||||||
Exercisable at December 31, 2013 | 8,091,000 | $ | 3.07 | |||||||||||||
The following table summarizes information about the weighted-average fair value of MicroVision common stock warrants granted for the periods shown: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Exercise price greater than fair value | $ | - | $ | 0.97 | ||||||||||||
With the exception of common stock warrants that include exchange provisions, we estimate the fair value of our common stock warrants using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants in 2012: dividend yield of zero percent; expected volatility of 100%; risk-free interest rates of 0.52% and expected lives of 4 years. | ||||||||||||||||
The following table summarizes information about our common stock warrants outstanding and exercisable at December 31, 2013: | ||||||||||||||||
Warrants outstanding | Warrants exercisable | |||||||||||||||
Weighted | ||||||||||||||||
Number | average | Weighted | Number | Weighted | ||||||||||||
outstanding at | remaining | average | excercisable at | average | ||||||||||||
December 31, | contractual | excercise | December 31, | excercise | ||||||||||||
Range of exercise prices | 2013 | life (years) | price | 2013 | price | |||||||||||
$2.13 | 1,000,000 | 1.39 | $ | 2.13 | 1,000,000 | $ | 2.13 | |||||||||
$2.29 | 2,100,000 | 3.47 | 2.29 | 2,100,000 | 2.29 | |||||||||||
$2.44 | 1,855,000 | 4.72 | 2.44 | 1,855,000 | 2.44 | |||||||||||
$2.89 | 1,858,000 | 4.38 | 2.89 | 1,858,000 | 2.89 | |||||||||||
$6.24 | 1,278,000 | 2.88 | 6.24 | 1,278,000 | 6.24 | |||||||||||
$2.13-$6.24 | 8,091,000 | 8,091,000 | ||||||||||||||
10_SharedBased_Compensation
10. Shared-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure Of Compensation Related Costs | ' | ||||||||||||
Share-based compensation - Note 10 | ' | ||||||||||||
10. Share-based compensation | |||||||||||||
We use the straight-line attribution method to allocate the fair value of share-based compensation awards over the requisite service period for each award. The valuation of and accounting for share-based awards includes a number of complex and subjective estimates. These estimates include, but are not limited to, the future volatility of our stock price, future stock option exercise behaviors, estimated employee turnover and award forfeiture rates. | |||||||||||||
As part of our plan to conserve cash used in operations, we have implemented share-based compensation programs under which we issued shares of our common stock as compensation instead of cash. We have allocated the expense related to these programs to various financial statement lines consistent with the method used for allocating all share-based compensation. | |||||||||||||
In August 2013, we issued 201,000 shares of our common stock to employees for payment of 2012 performance bonuses. These shares were valued using our closing stock price on the date of grant. These shares vested in November 2013 and expense was recognized over the vesting period. During 2013, we expensed $457,000 of share-based employee compensation for these awards. | |||||||||||||
In August 2012, we issued 440,000 shares of our common stock to non-executive employees for retention purposes. These shares were valued using our closing stock price on the date of grant. These shares vest 40% in August 2012, 30% in December 2012, and 30% in August 2013 and expense is recognized over the vesting period. During 2013 and 2012, we expensed $175,000 and $562,000, respectively, of share-based employee compensation for these awards. | |||||||||||||
In May 2012, we issued 227,000 shares of our common stock to non-executive employees as the remaining payment of 2010 bonuses in lieu of cash. These shares were valued using our closing stock price on the date of grant. We expensed $345,000 of share-based employee compensation for these awards at grant. | |||||||||||||
Description of Incentive Plans | |||||||||||||
The Company currently has two share-based incentive plans. The 2013 Incentive Plan described below is administered by the Board of Directors, or its designated committee ("Plan Administrator"), and provides for various awards as determined by the Plan Administrator. In June 2008, we determined not to issue additional options from a second share-based incentive plan, the Independent Director Stock Option Plan described below. | |||||||||||||
The 2013 Incentive Plan has 4.4 million shares authorized, of which 940,000 shares were available for awards as of December 31, 2013. The 2013 Incentive Plan permits granting non-qualified stock options (NSOs), incentive stock options (ISOs), stock appreciation rights, restricted or unrestricted stock, deferred stock, other share-based awards, or cash awards to employees, officers, directors and certain non-employees of the Company. Any award may be a performance-based award. Awards granted under the 2013 Incentive Plan have generally been to employees under non-qualified stock option agreements with the following provisions: exercise prices greater than or equal to the Company's closing stock price on the date of grant; vesting periods ranging from three years to four years; expiration 10 years from the date of grant; and optionees who terminate their service after vesting have a limited time to exercise their options (typically three to twelve months). | |||||||||||||
The Independent Director Stock Option Plan (IDSOP) has 113,000 shares authorized, of which 62,000 are issued and outstanding as of December 31, 2013. The IDSOP permits granting NSOs to independent directors of the Company. Grants awarded under the IDSOP generally have the following terms: exercise price equal to the Company's closing stock price on the date of grant, expiration 10 years from the date of grant, and vested grants remain exercisable until their expiration dates if a director leaves the Board. In June 2008, the Company shareholders approved an amendment to the 2013 Incentive Plan described above to allow non-employee directors to participate in the plan. | |||||||||||||
Options Valuation Methodology and Assumptions | |||||||||||||
We use the Black-Scholes option valuation model to determine the fair value of options granted and use the closing price of our common stock as the fair market value of our stock on that date. | |||||||||||||
We consider historical stock price volatilities, volatilities of similar companies and other factors in determining estimates of future volatilities. | |||||||||||||
We use historical lives, including post-termination exercise behavior, publications, comparable company estimates, and other factors as the basis for estimating expected lives. | |||||||||||||
Risk free rates are based on the U.S. Treasury Yield Curve as published by the U.S. Treasury. | |||||||||||||
The following table summarizes the weighted-average valuation assumptions and weighted-average grant date fair value of options granted during the periods shown below: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Assumptions (weighted average) | |||||||||||||
Volatility | 96% | 98% | |||||||||||
Expected term (in years) | 4.1 | 4.5 | |||||||||||
Risk-free rate | 1.00% | 0.60% | |||||||||||
Expected dividends | 0.00% | 0.00% | |||||||||||
Pre-vest forfeiture rate | 8.50% | 8.50% | |||||||||||
Grant date fair value of options granted | $ | 1.49 | $ | 1.39 | |||||||||
Options Activity and Positions | |||||||||||||
The following table summarizes activity and positions with respect to options for the two years ended December 31, 2013: | |||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Weighted | Remaining | ||||||||||||
Average | Contractual | Aggregate | |||||||||||
Exercise | Term | Intrinsic | |||||||||||
Options | Shares | Price | (years) | Value | |||||||||
Outstanding as of December 31, 2011 | 964,000 | $ | 24.00 | 5.8 | $ | - | |||||||
Granted | 671,000 | 1.97 | |||||||||||
Exercised | -16,000 | 1.80 | |||||||||||
Forfeited or expired | -301,000 | 21.20 | |||||||||||
Outstanding as of December 31, 2012 | 1,318,000 | 13.71 | 6.8 | - | |||||||||
Granted | 824,000 | 2.22 | |||||||||||
Exercised | -23,000 | 1.80 | |||||||||||
Forfeited or expired | -214,000 | 13.86 | |||||||||||
Outstanding as of December 31, 2013 | 1,905,000 | $ | 8.86 | 7.4 | $ | 1,500 | |||||||
Vested and expected to vest as of December 31, 2013 | 1,797,000 | $ | 9.26 | 7.3 | $ | 1,443 | |||||||
Exercisable as of December 31, 2013 | 934,000 | $ | 15.41 | 5.6 | $ | 750 | |||||||
The total intrinsic value of options exercised during the years ended December 31, 2013 and 2012 were $21,000 and $13,000, respectively. | |||||||||||||
The total grant date fair value of options vested during the years ended December 31, 2013 and 2012 was $1.7 million and $2.5 million, respectively. As of December 31, 2013, our unamortized share-based compensation was $1.2 million which we plan to amortize over the next 2.3 years. | |||||||||||||
In March 2011, we issued 85,000 restricted stock units of the Company's common stock to executive employees. These shares vest conditionally upon completion of certain service and performance objectives by June 30, 2014. The grant date fair value of the performance based restricted shares is recognized over the respective service periods based on an assessment of the probability that performance goals will be met. | |||||||||||||
As of December 31, 2013, our unamortized share-based compensation related to the restricted stock units was $145,000 which we plan to amortize over the next six months. | |||||||||||||
11_Commitments_and_contingenci
11. Commitments and contingencies | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Commitments And Contingencies Disclosure Footnote | ' | ||||||
Commitments and contingencies - Note 11 | ' | ||||||
11. Commitments and contingencies | |||||||
Litigation | |||||||
We are subject to various claims and pending or threatened lawsuits in the normal course of business. We are not currently party to any legal proceedings that management believes are reasonably possible to have a material adverse effect on the Company's financial position, results of operations or cash flows. | |||||||
Lease commitments | |||||||
We lease our office space and certain equipment under noncancelable capital and operating leases with initial or remaining terms in excess of one year. | |||||||
We entered into a 65 month facility lease amendment that commenced in September 2013. The lease includes extension and rent escalation provisions over the 65 month term of the lease. Rent expense will be recognized on a straight-line basis over the lease term. | |||||||
Future minimum rental commitments under capital and operating leases for years ending December 31 are as follows: | |||||||
Capital | Operating | ||||||
leases | leases | ||||||
2014 | $ | 15,000 | $ | 254,000 | |||
2015 | - | 430,000 | |||||
2016 | - | 442,000 | |||||
2017 | - | 434,000 | |||||
2018 | - | 446,000 | |||||
Thereafter | - | 38,000 | |||||
Total minimum lease payments | 15,000 | $ | 2,044,000 | ||||
Less: Amount representing interest | - | ||||||
Present value of capital lease obligations | 15,000 | ||||||
Less: Current portion | -15,000 | ||||||
Long-term obligation at December 31, 2013 | $ | - | |||||
The capital leases are collateralized by the related assets financed and by security deposits held by the lessors under the lease agreements. The cost and accumulated depreciation of equipment under capital leases was $704,000 and $704,000, respectively, at December 31, 2013 and $987,000 and $961,000, respectively, at December 31, 2012. | |||||||
Net rent expense was $636,000 and $708,000 for 2013 and 2012, respectively. | |||||||
Adverse purchase commitments | |||||||
We have periodically entered into noncancelable purchase contracts in order to ensure the availability of materials to support production of our products and bar code scanners. We periodically assess the need to provide for impairment on these purchase contracts and record a loss on purchase commitments when required. During 2012, we recorded losses of $500,000 to cost of product revenue as a result of commitments to purchase materials for the SHOWWX that were in excess of our estimated future proceeds from sale of the SHOWWX. During 2013, no losses on purchase commitments were recorded. | |||||||
12_Income_taxes
12. Income taxes | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Notes to Financial Statements | ' | ||||||
Income taxes - Note 12 | ' | ||||||
12. Income taxes | |||||||
A provision for income taxes has not been recorded for 2013 and 2012 due to the valuation allowances placed against the net operating losses and deferred tax assets arising during such periods. A valuation allowance has been recorded for all deferred tax assets. Based on our history of losses since inception, the available objective evidence creates sufficient uncertainty regarding the realizability of the deferred tax assets. | |||||||
At December 31, 2013, we have net operating loss carry-forwards of approximately $326.0 million, for federal income tax reporting purposes. In addition, we have research and development tax credits of $6.3 million. The net operating loss carry-forwards and research and development credits available to offset future taxable income, if any, will expire in varying amounts from 2017 to 2033 if not previously utilized. The research and development tax credits and the remaining net operating losses are scheduled to expire between 2018 and 2033. In certain circumstances, as specified in the Internal Revenue Code, a 50% or more ownership change by certain combinations of our stockholders during any three-year period would result in limitations on our ability to utilize our net operating loss carry-forwards. | |||||||
Deferred tax assets are summarized as follows: | |||||||
December 31, | |||||||
2013 | 2012 | ||||||
Deferred tax assets, current | |||||||
Reserves | $ | 2,994,000 | $ | 3,804,000 | |||
Other | 621,000 | 710,000 | |||||
Total gross deferred tax assets, current | 3,615,000 | 4,514,000 | |||||
Deferred tax assets, noncurrent | |||||||
Net operating loss carryforwards | 111,339,000 | 104,893,000 | |||||
R&D credit carryforwards | 6,277,000 | 6,032,000 | |||||
Depreciation/amortization deferred | 24,526,000 | 26,594,000 | |||||
Other | 7,544,000 | 7,573,000 | |||||
Total gross deferred tax assets, noncurrent | 149,686,000 | 145,092,000 | |||||
Net deferred taxes before valuation allowance | 153,301,000 | 149,606,000 | |||||
Less: Valuation allowance | -153,301,000 | -149,606,000 | |||||
Deferred tax assets | $ | - | $ | - | |||
The valuation allowance and the research and development credit carry forwards account for substantially all of the difference between our effective income tax rate and the Federal statutory tax rate of 34%. | |||||||
Certain net operating losses arise from the deductibility for tax purposes of compensation under nonqualified stock options equal to the difference between the fair value of the stock on the date of exercise and the exercise price of the options. For financial reporting purposes, the tax effect of this deduction when recognized is accounted for as a credit to shareholders' equity. | |||||||
We did not have any unrecognized tax benefits at December 31, 2013 and at December 31, 2012. | |||||||
We recognize interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2013 and 2012, we recognized no interest or penalties. | |||||||
We file income tax returns in the U.S. federal jurisdiction and various states. Due to our operating loss and credit carry-forwards, the U.S. federal statute of limitations remains open for 1997 and onward. | |||||||
13_Retirement_savings_plan
13. Retirement savings plan | 12 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
Retirement savings plan - Note 13 | ' |
13. Retirement savings plan | |
We have a retirement savings plan that qualifies under Internal Revenue Code Section 401(k). The plan covers all qualified employees. Contributions to the plan by the Company are made at the discretion of the Board of Directors. In March 2012, the Company discontinued matching contributions. Prior to March 2012, we matched 50% of employee contributions to the plan, up to 6% of the employee's per pay period compensation. During 2013 and 2012, we contributed $0 and $44,000, respectively, to the plan under the matching program. | |
14_Quarterly_financial_informa
14. Quarterly financial information (unaudited) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Notes to Financial Statements | ' | ||||||||||||
Quarterly financial information (unaudited) - Note 14 | ' | ||||||||||||
14. Quarterly financial information (Unaudited) | |||||||||||||
The following table presents our unaudited quarterly financial information for the years ending December 31, 2013 and 2012 (in thousands, except per share data): | |||||||||||||
Fiscal Year 2013 | |||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||
Revenue | $ | 1,217 | $ | 964 | $ | 1,870 | $ | 1,801 | |||||
Gross margin (loss) | 1,164 | 880 | 1,007 | 1,000 | |||||||||
Net loss | -2,421 | -3,667 | -3,436 | -3,654 | |||||||||
Net loss per share basic and diluted | -0.08 | -0.13 | -0.13 | -0.14 | |||||||||
Fiscal Year 2012 | |||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||
Revenue | $ | 2,727 | $ | 2,613 | $ | 1,295 | $ | 1,730 | |||||
Gross margin (loss) | 1,238 | 1,475 | 1,328 | -2,600 | |||||||||
Net loss | -4,074 | -3,845 | -4,971 | -9,803 | |||||||||
Net loss per share basic and diluted | -0.16 | -0.15 | -0.26 | -0.58 | |||||||||
15_Subsequent_Event
15. Subsequent Event | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
15. Subsequent Event | ' |
15. Subsequent Event | |
In February 2014, we issued 3,713,309 shares of our common stock under the warrant exchange provisions of our May and September 2013 registered direct offerings. Under the warrant exchange provisions, the holders could elect to exchange the warrants for a variable number of shares of common stock as determined by a formula included in the warrants. We did not receive additional cash consideration in the exchange transaction. We expect to record a loss of $5.0 million during the first quarter of 2014 on the exchange, as the fair market value of the common stock issued was greater than the obligation recorded due to the increase in stock price subsequent to year end. | |
Recovered_Sheet1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Notes to Financial Statements | ' | ||||||||||||
Management's Statement and Policies (Policies) | ' | ||||||||||||
MicroVision, Inc. (the "Company") is developing its proprietary PicoP® display technology which can be used by our customers to create high-resolution miniature laser display and imaging engines. Our PicoP display technology uses our widely patented expertise in two dimensional Micro-Electrical Mechanical Systems (MEMS), lasers, optics, and electronics to create a high quality video or still image from a small form factor device with lower power needs than conventional display technologies. Our strategy is to develop and supply PicoP display technology directly or through licensing arrangements to original device manufacturers (ODMs) and original equipment manufacturers (OEMs) in various market segments, including consumer electronics and automotive, for integration into their products. | |||||||||||||
During 2012, we aligned our operations to our ingredient brand strategy, simplifying our operations and resulting in a significant reduction to our 2013 cash usage relative to 2012. Our strategy is to focus our efforts on licensing our technology and selling display engine components to partners who will produce display engines based on PicoP display technology and either sell those display engines to OEMs, or incorporate the engines into their own products. | |||||||||||||
Our development efforts are focused on improving the performance of display engines through the improvement of both engine system, hardware and software design, and the performance of various components of the display engine. We also provide engineering support to our customers as they prepare to manufacture display engines as well as providing support to ODMs and OEMs during the integration and optimization of PicoP display technology for specific products. | |||||||||||||
The primary objective for consumer applications is to provide users of mobile devices such as smartphones, tablets and other consumer electronics products with a large screen viewing experience produced by a small projector either embedded in the device or via a companion product. These potential products would allow users to watch movies and videos, play games, and display images and other data onto a variety of surfaces, freeing users from the limitations of a small screen. | |||||||||||||
PicoP display technology could also be combined with other components and systems to be embedded into a vehicle or integrated into a portable standalone head-up display (HUD). HUD technology allows for important information, such as safety warnings or navigation instructions, to be projected so that it appears in front of vehicle operators where the information can be accessed without taking their eyes off the road. | |||||||||||||
We also see potential for PicoP display technology in other areas, although we are not currently working with customers. PicoP display technology could be combined with other components and systems to be incorporated into a pair of glasses to provide the mobile user with a see-through or occluded personal display to view movies, play games or access other content. | |||||||||||||
Devices enabled by PicoP display technology could be used in field-based professions such as service repair or sales to view and share information such as schematics for equipment repair, sales data, orders or contact information on a larger, more user-friendly display. We also see potential for embedding PicoP display technology in industrial products where our displays could be used for 3D measuring and digital signage, enhancing the overall user experience of these applications. | |||||||||||||
We develop and procure intellectual property rights relating to our technology as a key aspect of our business strategy. We generate intellectual property from our internal research and development activities and our ongoing performance on development contracts. We also have acquired exclusive rights to various technologies under licensing and acquisition agreements. | |||||||||||||
Based on our current operating plan, we anticipate that we have sufficient cash and cash equivalents to fund our operations through March 2014. We will require additional cash to fund our operating plan past that time. We plan to obtain additional cash through the issuance of equity or debt securities. There can be no assurance that additional cash will be available or that, if available, it will be available on terms acceptable to us on a timely basis. If adequate funds are not available on a timely basis, we intend to consider limiting our operations substantially. This limitation of operations could include reducing our planned investment in development projects resulting in reductions in staff, operating costs, capital expenditures and investment in research and development. | |||||||||||||
Our capital requirements will depend on many factors, including, but not limited to, the rate at which OEMs or ODMs introduce products incorporating the PicoP display and image capture technologies and the market acceptance and competitive position of such products. If revenues are less than anticipated, if the mix of revenues vary from anticipated amounts or if expenses exceed the amounts budgeted, we may require additional capital earlier than expected to further the development of our technologies, for expenses associated with product development, and to respond to competitive pressures or to meet unanticipated development difficulties. In addition, our operating plan provides for the development of strategic relationships with systems and equipment manufacturers that may require additional investments by us. | |||||||||||||
We have received a report from our independent registered public accounting firm regarding the consolidated financial statements for the year ended December 31, 2013 that includes an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. These consolidated financial statements are prepared assuming the Company will continue as a going concern. | |||||||||||||
A 1:8 reverse stock split of MicroVision's common stock became effective on February 17, 2012. All of the share and per share amounts discussed and shown in the consolidated financial statements and notes have been adjusted to reflect the effect of this reverse split. | |||||||||||||
Going Concern and Management's Plan | ' | ||||||||||||
Based on our current operating plan, we anticipate that we have sufficient cash and cash equivalents to fund our operations through March 2014. We will require additional cash to fund our operating plan past that time. We plan to obtain additional cash through the issuance of equity or debt securities. There can be no assurance that additional cash will be available or that, if available, it will be available on terms acceptable to us on a timely basis. If adequate funds are not available on a timely basis, we intend to consider limiting our operations substantially. This limitation of operations could include reducing our planned investment in development projects resulting in reductions in staff, operating costs, capital expenditures and investment in research and development. | |||||||||||||
Our capital requirements will depend on many factors, including, but not limited to, the rate at which OEMs or ODMs introduce products incorporating the PicoP display and image capture technologies and the market acceptance and competitive position of such products. If revenues are less than anticipated, if the mix of revenues vary from anticipated amounts or if expenses exceed the amounts budgeted, we may require additional capital earlier than expected to further the development of our technologies, for expenses associated with product development, and to respond to competitive pressures or to meet unanticipated development difficulties. In addition, our operating plan provides for the development of strategic relationships with systems and equipment manufacturers that may require additional investments by us. | |||||||||||||
We have received a report from our independent registered public accounting firm regarding the consolidated financial statements for the year ended December 31, 2013 that includes an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. These consolidated financial statements are prepared assuming the Company will continue as a going concern. | |||||||||||||
Use of Estimates | ' | ||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles of the United States requires us 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. Actual results could differ from those estimates. We have identified the following areas where significant estimates and assumptions have been made in preparing the financial statements: revenue recognition, valuation of share-based compensation, allowance for uncollectible receivables and inventory valuation. | |||||||||||||
Principles of Consolidation | ' | ||||||||||||
Our consolidated financial statements include the accounts of MicroVision, Inc. and MicroVision Innovations Singapore Pte. Ltd. ("MicroVision Singapore"), a wholly owned foreign subsidiary. MicroVision Singapore was incorporated in April 2011 and was engaged in advanced research and development activities and operation support functions for MicroVision, Inc. There were no material intercompany accounts and transactions during the years ended December 31, 2013 and 2012. | |||||||||||||
Fair value of financial instruments | ' | ||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the authoritative guidance establishes a three level fair value inputs hierarchy, and requires an entity to maximize the use of observable valuation inputs and minimize the use of unobservable inputs. We use market data, assumptions and risks we believe market participants would use in measuring the fair value of the asset or liability, including the risks inherent in the inputs and the valuation techniques. The hierarchy is summarized below. | |||||||||||||
Level 1 - Observable inputs such as quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2 - Observable inputs such as quoted prices for similar assets or liabilities in markets that are not sufficiently active to qualify as Level 1 or, other inputs that are observable by market data. | |||||||||||||
Level 3 - Unobservable inputs for which there is little or no market data, which requires us to develop our own assumptions, which are significant to the measurement of the fair values. | |||||||||||||
Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, long-term debt and warrant liabilities. Excluding the long term debt and warrant liabilities, the carrying value of our financial instruments approximates fair value due to their short maturities. The carrying amount of long-term debt at December 31, 2013 and 2012 was not materially different from the fair value based on rates available for similar types of arrangements. At each balance sheet date, we evaluate the warrant liability and any change in value is recorded as a non-operating gain or loss on the statement of operations. Due to the features of the warrants, the determination of the fair value of the warrant liability may vary depending on our common stock price. If the price of our common stock is less than the exercise price of the warrant, we will calculate the fair value of the warrant liability as the fair value of the common stock that would be required to be issued to settle the exchange feature of the warrant. If the price of our common stock is greater than the exercise price of the warrant, we will use a binomial option pricing model to estimate the fair value of the warrant as the exchange feature provided per the agreement will no longer be available to the holder. | |||||||||||||
The valuation inputs hierarchy classification for the warrant liability measured at fair value on a recurring basis is summarized below as of December 31, 2013. | |||||||||||||
As of December 31, 2013: | Level 1 | Level 2 | Level 3 | Total | |||||||||
Liabilities | |||||||||||||
Warrant liability | $ | - | $ | 4,902,000 | $ | - | $ | 4,902,000 | |||||
$ | - | $ | 4,902,000 | $ | - | $ | 4,902,000 | ||||||
Cash and cash equivalents | ' | ||||||||||||
Our cash equivalents are comprised of money market savings accounts and equity securities. We classify investment securities available-for-sale purchased with 90 days or less remaining until contractual maturities as cash equivalents. | |||||||||||||
Intangible assets | ' | ||||||||||||
Our intangible assets consist entirely of purchased patents. The patents are amortized using the straight-line method over their estimated period of benefit, ranging from one to 17 years. We evaluate the recoverability of intangible assets periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. We compare the projected undiscounted net cash flows associated with the related intangible assets or group of assets over their remaining lives against their respective carrying amounts. Measurement of an impairment loss for our intangible assets is based on the difference between the fair value of the asset and its carrying value. | |||||||||||||
Inventory | ' | ||||||||||||
Inventory consists of components, raw materials and finished goods for our pico projectors. Inventory is recorded at the lower of cost or market with cost determined on a net realizable value basis. We periodically assess the need to provide for obsolescence of inventory and adjust the carrying value of inventory to its net realizable value when required. In addition, we reduce the value of our inventory to its estimated scrap value when we determine that it is not probable that the inventory will be consumed through normal production during the next twelve months. | |||||||||||||
Property and equipment | ' | ||||||||||||
Property and equipment is stated at cost and depreciated over the estimated useful lives of the assets (two to five years) using the straight-line method. Leasehold improvements are depreciated over the shorter of estimated useful lives or the lease term. Costs for repairs and maintenance are charged to expense as incurred and expenditures for major improvements are capitalized at cost. Gains or losses on the disposition of assets are reflected in the income statements at the time of disposal. | |||||||||||||
Restricted investments | ' | ||||||||||||
As of December 31, 2013, restricted investments were in money market savings accounts and serve as collateral for $435,000 in irrevocable letters of credit. The restricted investments balance includes two letters of credit which are outstanding in connection with a lease agreement for our corporate headquarters building in Redmond, WA. The balance is required over the term of the lease, which expires in January 2019. In January 2012, a $350,000 letter of credit which was outstanding under the terms of a supplier agreement expired. | |||||||||||||
Revenue recognition | ' | ||||||||||||
We evaluate the performance criteria and terms of our collaborative research and development agreements to determine whether revenue should be recognized under a performance-based method or milestone method. Significant items included in our evaluation are the following: | |||||||||||||
· | the nature of our obligation under the agreement, | ||||||||||||
· | whether provisions leading to variable revenues exist | ||||||||||||
· | whether any payments are required to be repaid, | ||||||||||||
· | whether the deliverables should be treated as one unit of accounting or separated into multiple units, | ||||||||||||
· | whether substantive milestones exist, | ||||||||||||
· | whether milestone payments are commensurate with either our level of effort or the increase in value of the customer's rights, and | ||||||||||||
· | whether a licensing agreement exists. | ||||||||||||
We recognize development revenue as work progresses on the agreement and as our customer accepts the deliverables using a proportional method based on the lesser of the cumulative proportion of total planned costs to be incurred under the agreement or the cash payments received plus outstanding billings for work accepted by the customer. Since our collaborative agreements generally require some level of technology development, the actual costs required to complete a contract can vary from our estimates. The proportional revenue recognition method we use for collaborative research and development agreements includes adjustments for revisions to estimated total agreement costs. Each period, we evaluate total estimated costs for each agreement. Any adjustments that result from revisions to the estimated costs are recognized in the period we become aware of changes. The costs for work performed under collaborative research and development agreements are expensed in the periods incurred and included in the Statement of Operations in research and development expense. | |||||||||||||
Product revenue is recognized when there is sufficient evidence of an arrangement, delivery has occurred, the fee is fixed or determinable, and collection is reasonably assured. We have entered into agreements with resellers and distributors, as well as selling directly to the public. Sales made to resellers and distributors are recognized using either the sell-through method or upon expiration of the contractually agreed-upon acceptance period, depending on the volume of the sale. Some of the agreements with resellers and distributors contain price-protection clauses, and revenue is recognized net of these amounts. Sales made directly to the public are recognized either upon expiration of the contractual acceptance period after which there are no rights of return, or net of estimated returns and allowances. Provisions are made for warranties at the time revenue is recorded. | |||||||||||||
Contract revenue has primarily been generated from contracts to develop the light scanning technology and to produce demonstration units for commercial enterprises and the U.S. government. We recognize contract revenue as work progresses on long-term cost plus fixed fee and fixed price contracts using the percentage-of-completion method, which relies on estimates of total expected contract revenue and costs. Our revenue contracts generally include a statement of the work we are to complete and the total fee we will earn from the contract. When we begin work on the contract and at the end of each accounting period, we estimate the labor, material, and other cost required to complete the statement of work compared to cost incurred to date. We use information provided by our technical team, project managers, vendors, outside consultants and others to develop our cost estimates. Since our contracts generally require some level of technology development to complete, the actual cost required to complete a statement of work can vary from our estimates. We have developed processes that allow us to reasonably estimate the cost to complete a contract. Historically, we have made only immaterial revisions in the estimates to complete the contract at each reporting period. Recognized revenues are subject to revisions as the contract progresses to completion and actual revenue and cost become certain. Revisions in revenue estimates are reflected in the period in which the facts that give rise to the revision become known. In the future, revisions in these estimates could significantly impact recognized revenue in any one reporting period. | |||||||||||||
We recognize losses, if any, as soon as identified. Losses occur when the estimated direct and indirect costs to complete the contract exceed unrecognized revenue. We evaluate the reserve for contract losses on a contract-by-contract basis. | |||||||||||||
We recognize contract revenue for prototype units and evaluation kits for development work upon acceptance or the expiration of the acceptance period, when there is sufficient evidence of an arrangement, the selling price is fixed or determinable and collection is reasonably assured. | |||||||||||||
Cost of revenue | ' | ||||||||||||
Cost of product revenue includes the direct and allocated indirect costs of manufacturing products sold to customers. Direct costs include labor, materials and other costs incurred directly in the manufacture of these products. Indirect costs include labor and other costs associated with operating our manufacturing capabilities and capacity. | |||||||||||||
Cost of contract revenue includes both the direct and allocated indirect costs of performing on development contracts and producing prototype units and evaluation kits. Direct costs include labor, materials and other costs incurred directly in performing on a contract or producing prototype units and evaluation kits. Indirect costs include labor and other costs associated with operating our research and development department and building our technical capabilities and capacity. Cost of contract revenue is determined by the level of direct and indirect costs incurred, which can fluctuate substantially from period to period. | |||||||||||||
Our overhead, which includes the costs of procuring, inspecting and storing material, and facility and depreciation costs, is allocated to inventory, cost of product revenue, cost of contract revenue, and research and development expense based on the level of effort supporting production or research and development activity. | |||||||||||||
Concentration of credit risk and sales to major customers | ' | ||||||||||||
Concentration of Credit Risk | |||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk are primarily cash equivalents and accounts receivable. We typically do not require collateral from our customers. As of December 31, 2013, our cash and cash equivalents are comprised of short-term highly rated money market savings accounts. | |||||||||||||
Concentration of Sales to Major Customers | |||||||||||||
During 2013, two commercial customers accounted for 86% of our total revenue. During 2012, one commercial customer accounted for 61% of our total revenue and 96% of our accounts receivable balance at December 31, 2012. | |||||||||||||
Income taxes | ' | ||||||||||||
Deferred tax assets and liabilities are recorded for differences between the financial statement and tax bases of the assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable for the period increased or decreased by the change in deferred tax assets and liabilities during the period. | |||||||||||||
Certain net operating losses arise from the deductibility for tax purposes of compensation under nonqualified stock options equal to the difference between the fair value of the stock on the date of exercise and the exercise price of the options. For financial reporting purposes, the tax effect of this deduction when recognized is accounted for as a credit to shareholders' equity. | |||||||||||||
Net loss per share | ' | ||||||||||||
Basic net loss per share is calculated using the weighted-average number of common shares outstanding during the periods. Net loss per share assuming dilution is calculated using the weighted-average number of common shares outstanding and the dilutive effect of all potentially dilutive securities, including common stock equivalents and convertible securities. Net loss per share assuming dilution is equal to basic net loss per share because the effect of dilutive securities outstanding during the periods including options and warrants computed using the treasury stock method, is anti-dilutive. | |||||||||||||
Research and development | ' | ||||||||||||
Research and development expenses consist of costs incurred for internally funded research and product development activities as well as collaborative research and development activities that are funded by customers. These costs include compensation related costs of employees, share-based compensation, materials, subcontracted services, facility costs, and depreciation of facilities and lab equipment. Research and development costs are expensed as incurred. | |||||||||||||
Long-lived assets | ' | ||||||||||||
We evaluate the recoverability of our long-lived assets when an impairment is indicated based on expected undiscounted cash flows. We recognize impairment of the carrying value of long-lived assets, if any, based on the fair value of such assets. | |||||||||||||
Share-based compensation | ' | ||||||||||||
We use the straight-line attribution method to allocate the fair value of share-based compensation awards over the requisite service period for each award. The valuation of and accounting for share-based awards includes a number of complex and subjective estimates. These estimates include, but are not limited to, the future volatility of our stock price, future stock option exercise behaviors, estimated employee turnover and award forfeiture rates. | |||||||||||||
As part of our plan to conserve cash used in operations, we have implemented share-based compensation programs under which we issued shares of our common stock as compensation instead of cash. We have allocated the expense related to these programs to various financial statement lines consistent with the method used for allocating all share-based compensation. | |||||||||||||
Reclassifications | ' | ||||||||||||
Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. These reclassifications had no impact on net loss, shareholders' equity or cash flows as previously reported. | |||||||||||||
New accounting pronouncements | ' | ||||||||||||
In February 2013, the Financial Accounting Standards Board ("FASB") issued guidance that requires disclosure of amounts reclassified out of accumulated other comprehensive income in its entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. We adopted this guidance on January 1, 2013. The adoption did not have a material impact on our financial position, results of operations or cash flows. | |||||||||||||
Adverse purchase commitments | ' | ||||||||||||
We have periodically entered into noncancelable purchase contracts in order to ensure the availability of materials to support production of our products and bar code scanners. We periodically assess the need to provide for impairment on these purchase contracts and record a loss on purchase commitments when required. | |||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Fair Value) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary Of Significant Accounting Policies Fair Value Tables | ' | ||||||||||||
Fair Value Measurement (Tables) | ' | ||||||||||||
The valuation inputs hierarchy classification for the warrant liability measured at fair value on a recurring basis is summarized below as of December 31, 2013. | |||||||||||||
As of December 31, 2013: | Level 1 | Level 2 | Level 3 | Total | |||||||||
Liabilities | |||||||||||||
Warrant liability | $ | - | $ | 4,902,000 | $ | - | $ | 4,902,000 | |||||
$ | - | $ | 4,902,000 | $ | - | $ | 4,902,000 | ||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Net Loss Per Share) (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Summary Of Significant Accounting Policies Net Loss Per Share Tables | ' | ||||||
Excluded Securities from Net Loss Per Share | ' | ||||||
As of December 31, 2013 and 2012, we excluded the following convertible securities from diluted net loss per share as the effect of including them would have been anti-dilutive. The shares shown represent the number of shares of common stock which would be issued upon conversion in the respective years. | |||||||
December 31, | |||||||
2013 | 2012 | ||||||
Publicly traded warrants | - | 753,000 | |||||
Options and private warrants | 9,996,000 | 5,696,000 | |||||
Nonvested equity shares | 108,000 | 207,000 | |||||
10,104,000 | 6,656,000 | ||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Share-Based Compensation) (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Summary Of Significant Accounting Policies Share-Based Compensation Tables | ' | ||||||
Stock-based employee compensation expense | ' | ||||||
The following table shows the amount of share-based compensation expense included in the statements of operations for each period shown: | |||||||
Year Ended December 31, | |||||||
2013 | 2012 | ||||||
Cost of contract revenue | $ | 19,000 | $ | 34,000 | |||
Cost of product revenue | 1,000 | 54,000 | |||||
Research and development expense | 466,000 | 825,000 | |||||
Sales, marketing, general and administrative expense | 1,120,000 | 1,356,000 | |||||
$ | 1,606,000 | $ | 2,269,000 | ||||
Longterm_Contracts_Tables
Long-term Contracts (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Long-Term Contracts Tables | ' | |||||||||
Long-term Contracts (Tables) | ' | |||||||||
The following table summarizes the costs incurred on our collaborative research and development agreements and revenue contracts (in thousands): | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Costs and estimated earnings incurred on uncompleted contracts | $ | 2,909 | $ | 1,977 | ||||||
Billings on uncompleted contracts | -3,589 | -2,063 | ||||||||
$ | -680 | $ | -86 | |||||||
Included in accompanying consolidated balance sheets under the following captions: | ||||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | - | $ | 12 | ||||||
Billings in excess of costs and estimated earnings on uncompleted | ||||||||||
contracts | -680 | -98 | ||||||||
$ | -680 | $ | -86 | |||||||
Inventory_Tables
Inventory (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Inventory Tables | ' | |||||||||
Inventory (Tables) | ' | |||||||||
Inventory consists of the following: | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Raw materials | $ | 23,000 | $ | 361,000 | ||||||
Finished goods | 26,000 | 136,000 | ||||||||
$ | 49,000 | $ | 497,000 | |||||||
Accrued_liabilities_Tables
Accrued liabilities (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Accrued Liabilities Tables | ' | |||||||||
Accrued liabilities (Tables) | ' | |||||||||
Accrued liabilities consist of the following: | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Bonuses | $ | 725,000 | $ | 724,000 | ||||||
Payroll and payroll taxes | 375,000 | 427,000 | ||||||||
Compensated absences | 315,000 | 384,000 | ||||||||
Deferred rent credit | 99,000 | 187,000 | ||||||||
Warranty | 32,000 | 206,000 | ||||||||
Adverse purchase commitments | 500,000 | 634,000 | ||||||||
Accelerated rent expense | - | 109,000 | ||||||||
Professional fees | 76,000 | 533,000 | ||||||||
Other | 333,000 | 803,000 | ||||||||
$ | 2,455,000 | $ | 4,007,000 | |||||||
Property_and_equipment_net_Tab
Property and equipment, net (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property And Equipment Net Tables | ' | |||||||||
Components of Property, Plant and Equipment | ' | |||||||||
Property and equipment consists of the following: | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Production equipment | $ | 2,943,000 | $ | 5,201,000 | ||||||
Leasehold improvements | 502,000 | 3,344,000 | ||||||||
Computer hardware and software/lab equipment | 4,373,000 | 9,002,000 | ||||||||
Office furniture and equipment | 1,100,000 | 1,485,000 | ||||||||
8,918,000 | 19,032,000 | |||||||||
Less: Accumulated depreciation | -7,853,000 | -17,827,000 | ||||||||
$ | 1,065,000 | $ | 1,205,000 | |||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Intangible Assets Tables | ' | ||||||
Estimated future amortization expense of intangible assets | ' | ||||||
The following table outlines the estimated future amortization expense related to intangible assets held at December 31, 2013: | |||||||
Year ended December 31, | Amount | ||||||
2014 | $ | 132,000 | |||||
2015 | 132,000 | ||||||
2016 | 131,000 | ||||||
2017 | 120,000 | ||||||
2018 | 119,000 | ||||||
Thereafter | 511,000 | ||||||
Total | $ | 1,145,000 | |||||
Warrants_Tables
Warrants (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Warrants Tables | ' | |||||||||||||||
Warrant activity and summary | ' | |||||||||||||||
The following summarizes activity with respect to MicroVision common stock warrants during the two years ended December 31, 2013: | ||||||||||||||||
Warrants to | Weighted | |||||||||||||||
purchase | average | |||||||||||||||
common | excercise | |||||||||||||||
shares | price | |||||||||||||||
Outstanding at December 31, 2011 | 2,287,000 | $ | 14.96 | |||||||||||||
Granted: | ||||||||||||||||
Exercise price greater than intrinsic value | 3,100,000 | 2.48 | ||||||||||||||
Exercised | - | - | ||||||||||||||
Canceled/expired | -256,000 | 17.60 | ||||||||||||||
Outstanding at December 31, 2012 | 5,131,000 | 7.28 | ||||||||||||||
Granted: | ||||||||||||||||
Exercise price less than intrinsic value | 2,216,000 | 2.71 | ||||||||||||||
Exercise price greater than intrinsic value | 1,855,000 | 2.44 | ||||||||||||||
Exercised | -358,000 | 1.77 | ||||||||||||||
Canceled/expired | -753,000 | 28.80 | ||||||||||||||
Outstanding at December 31, 2013 | 8,091,000 | $ | 3.07 | |||||||||||||
Exercisable at December 31, 2013 | 8,091,000 | $ | 3.07 | |||||||||||||
The following table summarizes information about the weighted-average fair value of MicroVision common stock warrants for the periods shown: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Exercise price greater than fair value | $ | - | $ | 0.97 | ||||||||||||
The following table summarizes information about our common stock warrants outstanding and exercisable at December 31, 2013: | ||||||||||||||||
Warrants outstanding | Warrants exercisable | |||||||||||||||
Weighted | ||||||||||||||||
Number | average | Weighted | Number | Weighted | ||||||||||||
outstanding at | remaining | average | excercisable at | average | ||||||||||||
December 31, | contractual | excercise | December 31, | excercise | ||||||||||||
Range of exercise prices | 2013 | life (years) | price | 2013 | price | |||||||||||
$2.13 | 1,000,000 | 1.39 | $ | 2.13 | 1,000,000 | $ | 2.13 | |||||||||
$2.29 | 2,100,000 | 3.47 | 2.29 | 2,100,000 | 2.29 | |||||||||||
$2.44 | 1,855,000 | 4.72 | 2.44 | 1,855,000 | 2.44 | |||||||||||
$2.89 | 1,858,000 | 4.38 | 2.89 | 1,858,000 | 2.89 | |||||||||||
$6.24 | 1,278,000 | 2.88 | 6.24 | 1,278,000 | 6.24 | |||||||||||
$2.13-$6.24 | 8,091,000 | 8,091,000 | ||||||||||||||
Sharebased_compensation_Tables
Share-based compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary Of Significant Accounting Policies Share-Based Compensation Tables | ' | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||
The following table summarizes the weighted-average valuation assumptions and weighted-average grant date fair value of options granted during the periods shown below: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Assumptions (weighted average) | |||||||||||||
Volatility | 96% | 98% | |||||||||||
Expected term (in years) | 4.1 | 4.5 | |||||||||||
Risk-free rate | 1.00% | 0.60% | |||||||||||
Expected dividends | 0.00% | 0.00% | |||||||||||
Pre-vest forfeiture rate | 8.50% | 8.50% | |||||||||||
Grant date fair value of options granted | $ | 1.49 | $ | 1.39 | |||||||||
Options activity and positions | ' | ||||||||||||
The following table summarizes activity and positions with respect to options for the two years ended December 31, 2013: | |||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Weighted | Remaining | ||||||||||||
Average | Contractual | Aggregate | |||||||||||
Exercise | Term | Intrinsic | |||||||||||
Options | Shares | Price | (years) | Value | |||||||||
Outstanding as of December 31, 2011 | 964,000 | $ | 24.00 | 5.8 | $ | - | |||||||
Granted | 671,000 | 1.97 | |||||||||||
Exercised | -16,000 | 1.80 | |||||||||||
Forfeited or expired | -301,000 | 21.20 | |||||||||||
Outstanding as of December 31, 2012 | 1,318,000 | 13.71 | 6.8 | - | |||||||||
Granted | 824,000 | 2.22 | |||||||||||
Exercised | -23,000 | 1.80 | |||||||||||
Forfeited or expired | -214,000 | 13.86 | |||||||||||
Outstanding as of December 31, 2013 | 1,905,000 | $ | 8.86 | 7.4 | $ | 1,500 | |||||||
Vested and expected to vest as of December 31, 2013 | 1,797,000 | $ | 9.26 | 7.3 | $ | 1,443 | |||||||
Exercisable as of December 31, 2013 | 934,000 | $ | 15.41 | 5.6 | $ | 750 | |||||||
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Commitments And Contingencies Tables | ' | ||||||
Future minimum annual capital and operating lease payments | ' | ||||||
Future minimum rental commitments under capital and operating leases for years ending December 31 are as follows: | |||||||
Capital | Operating | ||||||
leases | leases | ||||||
2014 | $ | 15,000 | $ | 254,000 | |||
2015 | - | 430,000 | |||||
2016 | - | 442,000 | |||||
2017 | - | 434,000 | |||||
2018 | - | 446,000 | |||||
Thereafter | - | 38,000 | |||||
Total minimum lease payments | 15,000 | $ | 2,044,000 | ||||
Less: Amount representing interest | - | ||||||
Present value of capital lease obligations | 15,000 | ||||||
Less: Current portion | -15,000 | ||||||
Long-term obligation at December 31, 2013 | $ | - | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Income Taxes Tables | ' | ||||||
Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities | ' | ||||||
Deferred tax assets are summarized as follows: | |||||||
December 31, | |||||||
2013 | 2012 | ||||||
Deferred tax assets, current | |||||||
Reserves | $ | 2,994,000 | $ | 3,804,000 | |||
Other | 621,000 | 710,000 | |||||
Total gross deferred tax assets, current | 3,615,000 | 4,514,000 | |||||
Deferred tax assets, noncurrent | |||||||
Net operating loss carryforwards | 111,339,000 | 104,893,000 | |||||
R&D credit carryforwards | 6,277,000 | 6,032,000 | |||||
Depreciation/amortization deferred | 24,526,000 | 26,594,000 | |||||
Other | 7,544,000 | 7,573,000 | |||||
Total gross deferred tax assets, noncurrent | 149,686,000 | 145,092,000 | |||||
Net deferred taxes before valuation allowance | 153,301,000 | 149,606,000 | |||||
Less: Valuation allowance | -153,301,000 | -149,606,000 | |||||
Deferred tax assets | $ | - | $ | - | |||
Quarterly_financial_informatio
Quarterly financial information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Quarterly Financial Information Tables | ' | ||||||||||||
Selected Quarterly Financial Data (Unaudited) (Tables) | ' | ||||||||||||
The following table presents our unaudited quarterly financial information for the years ending December 31, 2013 and 2012 (in thousands, except per share data): | |||||||||||||
Fiscal Year 2013 | |||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||
Revenue | $ | 1,217 | $ | 964 | $ | 1,870 | $ | 1,801 | |||||
Gross margin (loss) | 1,164 | 880 | 1,007 | 1,000 | |||||||||
Net loss | -2,421 | -3,667 | -3,436 | -3,654 | |||||||||
Net loss per share basic and diluted | -0.08 | -0.13 | -0.13 | -0.14 | |||||||||
Fiscal Year 2012 | |||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||
Revenue | $ | 2,727 | $ | 2,613 | $ | 1,295 | $ | 1,730 | |||||
Gross margin (loss) | 1,238 | 1,475 | 1,328 | -2,600 | |||||||||
Net loss | -4,074 | -3,845 | -4,971 | -9,803 | |||||||||
Net loss per share basic and diluted | -0.16 | -0.15 | -0.26 | -0.58 | |||||||||
The_Company_and_liquidity_Reve
The Company and liquidity (Reverse Stock Split) (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2012 | |
Company And Liquidity Reverse Stock Split Narrative Details | ' |
Reverse stock split exchange ratio | 0.125 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Fair Value of Financial Instruments) (Details) (USD $) | Dec. 31, 2013 |
Liabilities | ' |
Warrant liability | $4,902,000 |
Total | 4,902,000 |
(Level 1) | ' |
Liabilities | ' |
Warrant liability | 0 |
Total | 0 |
(Level 2) | ' |
Liabilities | ' |
Warrant liability | 4,902,000 |
Total | 4,902,000 |
(Level 3) | ' |
Liabilities | ' |
Warrant liability | 0 |
Total | $0 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Intangible Assets Useful Life Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum | ' |
Finite-Lived Intangible Asset, Useful Life | '1 year |
Maximum | ' |
Finite-Lived Intangible Asset, Useful Life | '17 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Property and Equipment Useful Life Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum | ' |
Property and Equipment, Useful Life | 'P2Y |
Maximum | ' |
Property and Equipment, Useful Life | 'P5Y |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Concentration of Sales to Major Customers Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Customer Revenue Concentration | ' | ' |
Concentration Risk, Percentage | 86.00% | 61.00% |
Accounts Receivable Concentration | ' | ' |
Concentration Risk, Percentage | ' | 96.00% |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies (Net Loss Per Share) (Convertible Securities and Options Excluded) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Anti-dilutive shares | 10,104,000 | 6,656,000 |
Publicly Traded Warrants Exercisable | ' | ' |
Anti-dilutive shares | 0 | 753,000 |
Options and Private Warrants Exercisable | ' | ' |
Anti-dilutive shares | 9,996,000 | 5,696,000 |
Nonvested Equity Shares | ' | ' |
Anti-dilutive shares | 108,000 | 207,000 |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies (Schedule Of Stock-Based Compensation Expense By Statement Of Operations) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Stock-based employee compensation expense | $1,606,000 | $2,269,000 |
Cost of contract revenue | ' | ' |
Stock-based employee compensation expense | 19,000 | 34,000 |
Cost of product revenue | ' | ' |
Stock-based employee compensation expense | 1,000 | 54,000 |
Research and development expense | ' | ' |
Stock-based employee compensation expense | 466,000 | 825,000 |
Sales, marketing, general and administrative expense | ' | ' |
Stock-based employee compensation expense | $1,120,000 | $1,356,000 |
Longterm_contracts_Costs_Incur
Long-term contracts (Costs Incurred on Contracts) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long-Term Contracts Costs Incurred On Contracts Details | ' | ' |
Costs and estimated earnings incurred on uncompleted contracts | $2,909 | $1,977 |
Billings on uncompleted contracts | -3,589 | -2,063 |
Net of costs and billings on uncompleted contracts | -680 | -86 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | 12 |
Billings in excess of costs and estimated earnings on uncompleted contracts | -680 | -98 |
Net of costs and billings on uncompleted contracts | ($680) | ($86) |
Longterm_contracts_Collaborati
Long-term contracts (Collaborative Research and Development Agreement Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Long-Term Contracts Collaborative Research And Development Agreement Narrative Details | ' | ' |
Date of collaborative research and development agreement | 'March 2013 | ' |
Amount of collaborative research and development agreement | $4,600,000 | ' |
Development revenue | $2,909,000 | $0 |
Inventory_Components_Details
Inventory Components (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Components Details | ' | ' |
Raw materials | $23,000 | $361,000 |
Finished goods | 26,000 | 136,000 |
Inventory, net | $49,000 | $497,000 |
Inventory_Narrative_Details
Inventory (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Inventory Narrative Details | ' | ' |
Inventory write-downs | $303,000 | $1,094,000 |
Inventory allowance | $7,964,000 | $9,916,000 |
Accrued_liabilities_components
Accrued liabilities components (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accrued Liabilities Components Details | ' | ' |
Bonuses | $725,000 | $724,000 |
Payroll and payroll taxes | 375,000 | 427,000 |
Compensated absences | 315,000 | 384,000 |
Deferred rent credit | 99,000 | 187,000 |
Warranty | 32,000 | 206,000 |
Adverse purchase commitments | 500,000 | 634,000 |
Accelerated rent expense | 0 | 109,000 |
Professional fees | 76,000 | 533,000 |
Other | 333,000 | 803,000 |
Accrued liabilities | $2,455,000 | $4,007,000 |
Property_and_equipment_Details
Property and equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property And Equipment Details | ' | ' |
Production equipment | $2,943,000 | $5,201,000 |
Leasehold improvements | 502,000 | 3,344,000 |
Computer hardware and software/lab equipment | 4,373,000 | 9,002,000 |
Office furniture and equipment | 1,100,000 | 1,485,000 |
Property and equipment, gross | 8,918,000 | 19,032,000 |
Less: Accumulated depreciation | -7,853,000 | -17,827,000 |
Property and equipment, net | $1,065,000 | $1,205,000 |
Property_and_equipment_Depreci
Property and equipment (Depreciation Expense Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property And Equipment Depreciation Expense Narrative Details | ' | ' |
Depreciation expense | $923 | $1,445 |
Intangible_assets_Future_Amort
Intangible assets (Future Amortization) (Details) (USD $) | Dec. 31, 2013 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ' |
2014 | $132,000 |
2015 | 132,000 |
2016 | 131,000 |
2017 | 120,000 |
2018 | 119,000 |
Thereafter | 511,000 |
Total | $1,145,000 |
Intangible_assets_Narrative_De
Intangible assets (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Intangible Assets Narrative Details | ' | ' |
Gross value of intangible assets | $1,700,000 | $2,300,000 |
Amortization expense | 158,000 | 184,000 |
Impairment of intangible assets | $277,000 | $284,000 |
Number of patents abandoned in prosecution | '42 | '35 |
Common_Stock_Narrative_Details
Common Stock (Narrative) (Details) (USD $) | 1 Months Ended | 1 Months Ended | ||||||
Feb. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-12 | Jun. 30, 2012 | 31-May-13 | Sep. 30, 2013 | |
May-12 | Jun-12 | May-13 | Sep-13 | |||||
Number of shares of common stock issued | 3,713,309 | ' | ' | ' | 3.3 | 4.2 | 2.6 | 3.5 |
Cash received from stock sale and warrants before issuance costs | ' | ' | ' | ' | $5,000,000 | $10,500,000 | $5,850,000 | $6,600,000 |
Stock issuance costs | ' | ' | ' | ' | $71,000 | $823,000 | $362,000 | $452,000 |
Common shares underlying warrants | ' | 8,091,000 | 5,131,000 | 2,287,000 | 1 | 2.1 | 2 | 2.1 |
Warrants_Summary_of_Warrant_Ac
Warrants (Summary of Warrant Activity) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Warrants Summary Of Warrant Activity Details | ' | ' |
Warrants, Outstanding as of beginning of period | 5,131,000 | 2,287,000 |
Granted with exercise price less than intrinsic value | 2,216,000 | ' |
Granted with exercise price greater than intrinsic value | 1,855,000 | 3,100,000 |
Exercised | -358,000 | 0 |
Canceled/expired | -753,000 | -256,000 |
Warrants, Outstanding as of end of period | 8,091,000 | 5,131,000 |
Warrants, Weighted-Average Exercise Prices, Outstanding as of beginnig of period | $7.28 | $14.96 |
Warrants, Weighted-Average Exercise Prices, Granted less than intrinsic value | $2.71 | ' |
Warrants, Weighted-Average Exercise Prices, Granted greater than intrinsic value | $2.44 | $2.48 |
Warrants, Weighted-Average Exercise Prices, Exercised | 1.77 | 0 |
Warrants, Weighted-Average Exercise Prices, cancelled or expired | $28.80 | $17.60 |
Warrants, Weighted-Average Exercise Prices, Outstanding as of end of period | $3.07 | $7.28 |
Warrants, Exercisable at end of period | 8,091,000 | ' |
Warrants, Weighted-Average Exercise Price, Exercisable | $3.07 | ' |
Warrants_Outstanding_and_Exerc
Warrants Outstanding and Exercisable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Warrant, exercise price | $3.07 | $7.28 | $14.96 |
Warrants, Outstanding as of end of period | 8,091,000 | 5,131,000 | 2,287,000 |
Warrants, Exercisable at end of period | 8,091,000 | ' | ' |
Warrants exercisable, weighted average exercise price | $3.07 | ' | ' |
2.13 | ' | ' | ' |
Warrant, exercise price | $2.13 | ' | ' |
Warrants, Outstanding as of end of period | 1,000,000 | ' | ' |
Warrants outstanding, weighted average remaining contractual life, years | 1.39 | ' | ' |
Warrants outstanding, weighted average exercise price | $2.13 | ' | ' |
Warrants, Exercisable at end of period | 1,000,000 | ' | ' |
Warrants exercisable, weighted average exercise price | $2.13 | ' | ' |
2.29 | ' | ' | ' |
Warrant, exercise price | $2.29 | ' | ' |
Warrants, Outstanding as of end of period | 2,100,000 | ' | ' |
Warrants outstanding, weighted average remaining contractual life, years | 3.47 | ' | ' |
Warrants outstanding, weighted average exercise price | $2.29 | ' | ' |
Warrants, Exercisable at end of period | 0 | ' | ' |
Warrants exercisable, weighted average exercise price | $0 | ' | ' |
2.44 | ' | ' | ' |
Warrant, exercise price | $2.44 | ' | ' |
Warrants, Outstanding as of end of period | 1,855,000 | ' | ' |
Warrants outstanding, weighted average remaining contractual life, years | 4.72 | ' | ' |
Warrants outstanding, weighted average exercise price | $2.44 | ' | ' |
Warrants, Exercisable at end of period | 1,855,000 | ' | ' |
Warrants exercisable, weighted average exercise price | $2.44 | ' | ' |
2.89 | ' | ' | ' |
Warrant, exercise price | $2.89 | ' | ' |
Warrants, Outstanding as of end of period | 1,858,000 | ' | ' |
Warrants outstanding, weighted average remaining contractual life, years | 4.38 | ' | ' |
Warrants outstanding, weighted average exercise price | $2.89 | ' | ' |
Warrants, Exercisable at end of period | 1,858,000 | ' | ' |
Warrants exercisable, weighted average exercise price | $2.89 | ' | ' |
6.24 | ' | ' | ' |
Warrant, exercise price | $6.24 | ' | ' |
Warrants, Outstanding as of end of period | 1,278,000 | ' | ' |
Warrants outstanding, weighted average remaining contractual life, years | 2.88 | ' | ' |
Warrants outstanding, weighted average exercise price | $6.24 | ' | ' |
Warrants, Exercisable at end of period | 1,278,000 | ' | ' |
Warrants exercisable, weighted average exercise price | $6.24 | ' | ' |
Warrants_Summary_of_Fair_Value
Warrants (Summary of Fair Value) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Warrants Summary Of Fair Value Details | ' | ' |
Exercise price greater than fair value | $0 | $0.97 |
Warrants_Issued_Narrative_Deta
Warrants Issued (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
September 2013 Warrant | May 2013 Warrant | June 2012 Warrant | May 2012 Warrant | ||||
Number of shares of common stock available for purchase | ' | ' | ' | 2,100,000 | 2,000,000 | 2,100,000 | 1,000,000 |
Warrant exercise price, per share, as adjusted | $3.07 | $7.28 | $14.96 | $2.44 | $2.89 | $2.29 | $2.13 |
Warrant term, in years | ' | ' | ' | '5 years | '5 years | '5 years | ' |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | ' | ' | ' | 30-Sep-13 | 31-May-13 | 30-Jun-13 | 31-Jul-12 |
Warrant terms and provisions | ' | ' | ' | ' | ' | ' | ' |
The warrants issued in September 2013 have an exercise price of $2.444 per share, a five year term, and are exercisable beginning on the date of issuance. Each warrant to purchase a share of common stock may also be exchanged during its term for a number of shares of common stock (but not more than one share of common stock for each warrant so exchanged) with a value determined by a formula if, among other things, our common stock is then trading at a price at or lower than the warrant exercise price per share. Subject to limitations in the warrants, we may require the warrants be exercised for cash if the closing bid price of our stock is over $3.055 for 20 consecutive trading days and the average daily dollar volume over that period is equal to or exceeds $300,000. | The warrants issued in May 2013 have an exercise price of $2.886 per share, a five year term, and are exercisable beginning on the date of issuance. Each warrant to purchase a share of common stock may also be exchanged during its term for a number of shares of common stock (but not more than one share of common stock for each warrant so exchanged) with a value determined by a formula if, among other things, our common stock is then trading at a price at or lower than the warrant exercise price per share. Subject to limitations in the warrants, we may require the warrants be exercised for cash if the closing bid price of our stock is over $3.61 for 20 consecutive trading days and the average daily dollar volume over that period is equal to or exceeds $300,000. | The warrants issued in June 2012 were issued with an exercise price of $2.65 per share, a five year term, and are exercisable beginning one year from the date of issuance. The exercise price of the warrants is subject to anti-dilution adjustments. As a result of subsequent financing activities, the exercise price has been reduced to $2.29. | The warrants issued in May 2012 have an exercise price of $2.125 per share, a three year term, and are exercisable 60 days from the date of issuance. | ||||
Based on the terms of the warrants we issued in May and September, 2013, we have determined that they should be classified as a liability given that the warrants could result in the issuance of a variable number of shares of common stock based on a conditional exchange provision that is outside of our control at any point when the share price of our common stock is equal to or less than the stated exercise prices of $2.886 and $2.444 per share. At the dates of issuance, and as of December 31, 2013, our common stock was trading at a value less than the stated exercise price. As such, the holders may elect to exchange the warrants for a variable number of shares of common stock as determined by a formula included in the warrants. However, the warrants limit the number of shares that may be issued under this exchange provision to one share of common stock for each warrant exchanged. The maximum number of shares that we could be required to issue is under the terms of the warrants is 4,071,552. As of December 31, 2013, 358,243 shares of common stock have been issued on a one-for-one basis under the warrant exchange provisions of the May and September agreements. As of December 31, 2013, based upon the terms of the then outstanding warrants and the quoted market price of our common stock, if the exchange feature had been exercised, we would have been required to issue 3,713,309 shares of common stock to satisfy the obligation without receiving any additional cash consideration, equal to an estimated fair market value of $4,902,000, which we believe is the best indication of the fair value of the warrant obligation as of December 31, 2013. Changes in the market value of our common stock may decrease the number of shares to be issued under this exchange feature. | Based on the terms of the warrants we issued in May and September, 2013, we have determined that they should be classified as a liability given that the warrants could result in the issuance of a variable number of shares of common stock based on a conditional exchange provision that is outside of our control at any point when the share price of our common stock is equal to or less than the stated exercise prices of $2.886 and $2.444 per share. At the dates of issuance, and as of December 31, 2013, our common stock was trading at a value less than the stated exercise price. As such, the holders may elect to exchange the warrants for a variable number of shares of common stock as determined by a formula included in the warrants. However, the warrants limit the number of shares that may be issued under this exchange provision to one share of common stock for each warrant exchanged. The maximum number of shares that we could be required to issue is under the terms of the warrants is 4,071,552. As of December 31, 2013, 358,243 shares of common stock have been issued on a one-for-one basis under the warrant exchange provisions of the May and September agreements. As of December 31, 2013, based upon the terms of the then outstanding warrants and the quoted market price of our common stock, if the exchange feature had been exercised, we would have been required to issue 3,713,309 shares of common stock to satisfy the obligation without receiving any additional cash consideration, equal to an estimated fair market value of $4,902,000, which we believe is the best indication of the fair value of the warrant obligation as of December 31, 2013. Changes in the market value of our common stock may decrease the number of shares to be issued under this exchange feature. | ||||||
At each balance sheet date, we evaluate the fair value of the warrants and any change in value will be recorded as a non-operating gain or loss on the statement of operations. During 2013, we recorded non-operating gains of $1.8 million related to the change in value of the warrants. If and when the exchange feature is exercised by the holder, we will recognize a gain or loss on the exchange based on the fair market value of the common stock issued by us to the holder to satisfy the exchange provision. | At each balance sheet date, we evaluate the fair value of the warrants and any change in value will be recorded as a non-operating gain or loss on the statement of operations. During 2013, we recorded non-operating gains of $1.8 million related to the change in value of the warrants. If and when the exchange feature is exercised by the holder, we will recognize a gain or loss on the exchange based on the fair market value of the common stock issued by us to the holder to satisfy the exchange provision. | ||||||
Subsequent to year end, the holders of the warrants we issued in May and September 2013 elected to exchange all of such remaining outstanding warrants for common stock under the exchange provision, see Note 15. | Subsequent to year end, the holders of the warrants we issued in May and September 2013 elected to exchange all of such remaining outstanding warrants for common stock under the exchange provision, see Note 15. | ||||||
Warrants_Fair_Value_Assumption
Warrants Fair Value Assumptions (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Assumptions (weighted average) | ' | ' |
Volatility | 96.00% | 98.00% |
Risk-free rate | 1.00% | 0.60% |
Expected dividends | $0 | $0 |
All Warrants | ' | ' |
Assumptions (weighted average) | ' | ' |
Volatility | ' | 100.00% |
Expected term (in years) | ' | '4 years |
Risk-free rate | ' | 0.52% |
Expected dividends | ' | $0 |
ShareBased_Compensation_Plan_N
Share-Based Compensation (Plan Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
2013 Plan | ' |
Plan Description | ' |
The 2013 Incentive Plan has 4.4 million shares authorized, of which 940,000 shares were available for awards as of December 31, 2013. The 2013 Incentive Plan permits granting non-qualified stock options (NSOs), incentive stock options (ISOs), stock appreciation rights, restricted or unrestricted stock, deferred stock, other share-based awards, or cash awards to employees, officers, directors and certain non-employees of the Company. Any award may be a performance-based award. Awards granted under the 2013 Incentive Plan have generally been to employees under non-qualified stock option agreements with the following provisions: exercise prices greater than or equal to the Company's closing stock price on the date of grant; vesting periods ranging from three years to four years; expiration 10 years from the date of grant; and optionees who terminate their service after vesting have a limited time to exercise their options (typically three to twelve months). | |
Number Of Shares Authorized | 4,400,000 |
Number of Shares Available for Grant | 940,000 |
Expiration Period from date of grant, years | '10 years |
Maximum Award Vesting Period, years | '4 years |
IDSOP | ' |
Plan Description | ' |
The Independent Director Stock Option Plan (IDSOP) has 113,000 shares authorized, of which 62,000 are issued and outstanding as of December 31, 2013. The IDSOP permits granting NSOs to independent directors of the Company. Grants awarded under the IDSOP generally have the following terms: exercise price equal to the Company's closing stock price on the date of grant, expiration 10 years from the date of grant, and vested grants remain exercisable until their expiration dates if a director leaves the Board. In June 2008, the Company shareholders approved an amendment to the 2013 Incentive Plan described above to allow non-employee directors to participate in the plan. | |
Number Of Shares Authorized | 113,000 |
Issued and outstanding | 62,000 |
Expiration Period from date of grant, years | '10 years |
ShareBased_Compensation_Award_
Share-Based Compensation (Award Date Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | 31-May-12 | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2013 | Dec. 31, 2013 | |
May 2012 Award | August 2012 Award | August 2012 Award | August 2012 Award | August 2013 Award | August 2013 Award | |||
Shares of common stock issued | ' | ' | 227,000 | 440,000 | ' | ' | 201,000 | ' |
Non-cash stock-based compensation expense | $1,606,000 | $2,269,000 | $345,000 | ' | $175,000 | $562,000 | ' | $457,000 |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | |
Employee Stock Options | Restricted Stock Rights | ||
Unrecognized compensation cost related to share-based compensation | ' | $1,200,000 | $145,000 |
Weighted-average service period, years | ' | '2 years 110 days | '0 years 6 months 0 days |
Restricted stock units granted | 85,000 | ' | ' |
Sharebased_compensation_Weight
Share-based compensation (Weighted Average Assumptions) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Y | Y | |
Assumptions (weighted average) | ' | ' |
Volatility | 96.00% | 98.00% |
Expected term (in years) | 4.1 | 4.5 |
Risk-free rate | 1.00% | 0.60% |
Expected dividends | $0 | $0 |
Pre-vest forfeiture rate | 8.50% | 8.50% |
Grant date fair value of options granted | $0.01 | $0.01 |
Sharebased_compensation_Schedu
Share-based compensation (Schedule Of Stock Option Activity) (Details) (MVIS, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
MVIS | ' | ' | ' |
Options, Outstanding as of beginning of period | 1,318,000 | 964,000 | ' |
Options, Granted | 824,000 | 671,000 | ' |
Options, Exercised | -23,000 | -16,000 | ' |
Options, Forfeited, cancelled or expired | -214,000 | -301,000 | ' |
Options, Outstanding as of end of period | 1,905,000 | 1,318,000 | ' |
Weighted-Average Exercise Prices, Outstanding as of beginnig of period | $13.71 | $24 | ' |
Weighted-Average Exercise Prices, Granted | $2.22 | $1.97 | ' |
Weighted-Average Exercise Prices, Exercised | $1.80 | $1.80 | ' |
Weighted-Average Exercise Prices, Forfeited, cancelled or expired | $13.86 | $21.20 | ' |
Weighted-Average Exercise Prices, Outstanding as of end of period | $8.86 | $13.71 | ' |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 7.4 | 6.8 | 5.8 |
Options, Outstanding, Aggregate Intrinsic Value | $1,500 | $0 | $0 |
Options, Vested and expected to vest at end of period | 1,797,000 | ' | ' |
Weighted-Average Exercise Price, Vested and expected to vest | $9.26 | ' | ' |
Weighted-Average Remaining Contractual Term (in years), Vested and expected to vest | 7.3 | ' | ' |
Options, Vested and expected to vest, Aggregate Intrinsic Value | 1,443 | ' | ' |
Options, Exercisable at end of period | 934,000 | ' | ' |
Weighted-Average Exercise Price, Exercisable | $15.41 | ' | ' |
Weighted-Average Remaining Contractual Term (in years), Exercisable | 5.6 | ' | ' |
Options, Exercisable, Aggregate Intrinsic Value | 750 | ' | ' |
Options, Exercises in Period, Intrinsic Value | 21,000 | 13,000 | ' |
Options, Vested, Aggregate Intrinsic Value | ' | $1,700,000 | $2,500,000 |
Recovered_Sheet2
Commitments and Contingencies (Capital Leases) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Year ending December 31: | ' | ' |
2014 | $15,000 | ' |
2015 | 0 | ' |
2016 | 0 | ' |
2017 | 0 | ' |
2018 | 0 | ' |
Thereafter | 0 | ' |
Total minimum payments | 15,000 | ' |
Less: Amount representing interest | 0 | ' |
Present value of capital lease obligations | 15,000 | ' |
Less: Current portion | -15,000 | -48,000 |
Long-term obligation at December 31, 2013 | $0 | $20,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Operating Leases) (Details) (USD $) | Dec. 31, 2013 |
Year ending December 31: | ' |
2014 | $254,000 |
2015 | 430,000 |
2016 | 442,000 |
2017 | 434,000 |
2018 | 446,000 |
Thereafter | 38,000 |
Total minimum lease payments | $2,044,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Lease Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments And Contingencies Lease Narrative Details | ' | ' |
Cost of equipment under capital leases | $704,000 | $987,000 |
Accumulated depreciation of equipment under capital leases | 704,000 | 961,000 |
Net rent expense | $636,000 | $708,000 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Adverse Purchase Commitments Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments And Contingencies Adverse Purchase Commitments Narrative Details | ' | ' |
Accrued liability for loss on commitments to purchase materials to support production of PicoP based products | $500,000 | $634,000 |
Income_taxes_Deferred_Tax_Asse
Income taxes (Deferred Tax Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets, current | ' | ' |
Reserves | $2,994,000 | $3,804,000 |
Other | 621,000 | 710,000 |
Total gross deferred tax assets, current | 3,615,000 | 4,514,000 |
Deferred tax assets, noncurrent | ' | ' |
Net operating loss carryforwards | 111,339,000 | 104,893,000 |
R&D credit carryforwards | 6,277,000 | 6,032,000 |
Depreciation/amortization deferred | 24,526,000 | 26,594,000 |
Other | 7,544,000 | 7,573,000 |
Total gross deferred tax assets, noncurrent | 149,686,000 | 145,092,000 |
Total gross deferred tax liabilities, noncurrent | 0 | 0 |
Net deferred taxes before valuation allowance | 153,301,000 | 149,606,000 |
Less: Valuation allowance | -153,301,000 | -149,606,000 |
Deferred tax assets | $0 | $0 |
Income_taxes_Narrative_Details
Income taxes (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes Narrative Details | ' | ' |
Provision for income taxes | $0 | $0 |
Operating Loss Carryforwards | 326 | ' |
Operating loss carryforwards, expiration dates | ' | ' |
Will expire in varying amounts from 2017 to 2033 | ||
U.S. Federal Research Tax Credit Carryforwards | 6.3 | ' |
U.S. Federal Research Tax Credit Carryforwards, Expiration Dates | ' | ' |
Will expire in varying amounts from 2018 to 2033 | ||
Annual limit on operating loss carryforwards | ' | ' |
n certain circumstances, as specified in the Internal Revenue Code, a 50% or more ownership change by certain combinations of our stockholders during any three-year period would result in limitations on our ability to utilize our net operating loss carry-forwards. | ||
Accrued penalties and interest | 0 | 0 |
Unrecognized tax benefits | $0 | $0 |
Tax years open for examination | ' | ' |
We file income tax returns in the U.S. federal jurisdiction and various states. Due to our operating loss and credit carry-forwards, the U.S. federal statute of limitations remains open for 1997 and onward. | ||
Retirement_savings_plan_Narrat
Retirement savings plan (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Retirement Savings Plan Narrative Details | ' | ' |
401 (k) Employee Maximum Contribution Percentage | 6.00% | ' |
Company matching employee contribution percentage | 50.00% | ' |
Contribution to 401 (k) plan | $0 | $44,000 |
Quarterly_financial_informatio1
Quarterly financial information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Details | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $1,217 | $964 | $1,870 | $1,801 | $2,727 | $2,613 | $1,295 | $1,730 | $5,852 | $8,365 |
Gross margin (loss) | 1,164 | 880 | 1,007 | 1,000 | 1,238 | 1,475 | 1,328 | -2,600 | 4,051 | 1,441 |
Net loss | ($2,421) | ($3,667) | ($3,436) | ($3,654) | ($4,074) | ($3,845) | ($4,971) | ($9,803) | ($13,178) | ($22,693) |
Net loss per share - basic and diluted | ($0.08) | ($0.13) | ($0.13) | ($0.14) | ($0.16) | ($0.15) | ($0.26) | ($0.58) | ($0.47) | ($1.05) |
Subsequent_Event_Narrative_Det
Subsequent Event (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Subsequent Event Narrative Details | ' | ' | ' |
Subsequent Event, Description | ' | ' | ' |
In February 2014, we issued 3,713,309 shares of our common stock under the warrant exchange provisions of our May and September 2013 registered direct offerings. Under the warrant exchange provisions, the holders could elect to exchange the warrants for a variable number of shares of common stock as determined by a formula included in the warrants. We did not receive additional cash consideration in the exchange transaction. We expect to record a loss of $5.0 million during the first quarter of 2014 on the exchange, as the fair market value of the common stock issued was greater than the obligation recorded due to the increase in stock price subsequent to year end. | |||
Number of shares of common stock issued | 3,713,309 | ' | ' |
Cash received from stock sale, before issuance costs | $0 | $4,262,000 | $14,601,000 |
Expected loss on warrant exchange | $5,000,000 | ' | ' |