Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 14, 2014 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'Inrad Optics, Inc. | ' |
Entity Central Index Key | '0000719494 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'INRD | ' |
Entity Common Stock, Shares Outstanding | ' | 12,349,493 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $959,636 | $2,451,263 |
Accounts receivable (net of allowance for doubtful accounts of $15,000 in 2014 and 2013) | 1,121,043 | 1,236,958 |
Inventories, net | 2,917,718 | 3,129,855 |
Other current assets | 103,409 | 144,581 |
Total current assets | 5,101,806 | 6,962,657 |
Plant and equipment: | ' | ' |
Plant and equipment, at cost | 15,674,367 | 15,638,759 |
Less: Accumulated depreciation and amortization | -13,874,280 | -13,931,775 |
Total plant and equipment | 1,800,087 | 1,706,984 |
Precious Metals | 483,676 | 474,960 |
Goodwill | 311,572 | 311,572 |
Intangible Assets, net | 319,479 | 358,760 |
Other Assets | 33,122 | 33,122 |
Total Assets | 8,049,742 | 9,848,055 |
Current Liabilities: | ' | ' |
Current portion of other long term notes | 156,600 | 156,600 |
Accounts payable and accrued liabilities | 919,537 | 967,963 |
Customer advances | 251,370 | 146,784 |
Total current liabilities | 1,327,507 | 1,271,347 |
Related Party Convertible Notes Payable | 2,500,000 | 2,500,000 |
Other Long Term Notes, net of current portion | 635,339 | 712,868 |
Total liabilities | 4,462,846 | 4,484,215 |
Commitments | ' | ' |
Shareholders' Equity: | ' | ' |
Common stock: $.01 par value; 60,000,000 authorized shares; 12,354,093 shares issued at June 30, 2014 and 12,050,603 issued at December 31, 2013 | 123,543 | 120,508 |
Capital in excess of par value | 18,419,966 | 18,293,782 |
Accumulated deficit | -14,941,663 | -13,035,500 |
Stockholders' Equity before Treasury Stock | 3,601,846 | 5,378,790 |
Less - Common stock in treasury, at cost (4,600 shares) | -14,950 | -14,950 |
Total shareholders' equity | 3,586,896 | 5,363,840 |
Total Liabilities and Shareholders' Equity | $8,049,742 | $9,848,055 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Allowance for doubtful accounts ( in dollars) | $15,000 | $15,000 |
Common stock, par value ( in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 12,354,093 | 12,050,603 |
Treasury stock, shares | 4,600 | 4,600 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Total revenue | $2,227,546 | $2,694,598 | $4,131,926 | $5,771,724 |
Cost and expenses: | ' | ' | ' | ' |
Cost of goods sold | 2,307,000 | 2,386,866 | 4,288,678 | 4,764,894 |
Restructuring costs | 61,951 | 0 | 120,616 | 0 |
Selling, general and administrative expenses | 844,581 | 909,664 | 1,603,686 | 1,763,472 |
Costs and Expenses, Total | 3,213,532 | 3,296,530 | 6,012,980 | 6,528,366 |
Loss from operations | -985,986 | -601,932 | -1,881,054 | -756,642 |
Other expense: | ' | ' | ' | ' |
Interest expense - net | -45,308 | -45,832 | -90,183 | -91,476 |
Gain on sale of plant and equipment | 0 | 0 | 65,074 | 31,000 |
Other (expense) income | -45,308 | -45,832 | -25,109 | -60,476 |
Net loss before income taxes | -1,031,294 | -647,764 | -1,906,163 | -817,118 |
Income tax (provision) benefit | 0 | 0 | 0 | 0 |
Net loss | ($1,031,294) | ($647,764) | ($1,906,163) | ($817,118) |
Net loss per common share - basic and diluted (in dollars per share) | ($0.08) | ($0.05) | ($0.16) | ($0.07) |
Weighted average shares outstanding - basic and diluted (in shares) | 12,349,490 | 12,046,003 | 12,133,666 | 11,926,328 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net (loss) | ($1,906,163) | ($817,118) |
Adjustments to reconcile net (loss) to net cash (used in) operating activities: | ' | ' |
Depreciation and amortization | 295,721 | 259,094 |
401K common stock contribution | 71,255 | 80,922 |
(Gain) on sale of plant and equipment | -65,074 | -31,000 |
Stock based compensation | 57,964 | 80,284 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 115,915 | 185,660 |
Inventories, net | 212,137 | 200,393 |
Other current assets | 41,172 | 46,797 |
Accounts payable and accrued liabilities | -48,427 | -26,180 |
Customer advances | 104,586 | -112,512 |
Total adjustments and changes | 785,249 | 683,458 |
Net cash (used in) operating activities | -1,120,914 | -133,660 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -362,848 | -447,039 |
Purchase of precious metal tools | -8,716 | 0 |
Proceeds from sale of plant and equipment | 78,380 | 31,000 |
Net cash (used in) investing activities | -293,184 | -416,039 |
Cash flows from financing activities: | ' | ' |
Principal payments on notes payable-other | -77,529 | -74,169 |
Net cash (used in) financing activities | -77,529 | -74,169 |
Net (decrease) in cash and cash equivalents | -1,491,627 | -623,868 |
Cash and cash equivalents at beginning of period | 2,451,263 | 3,089,013 |
Cash and cash equivalents at end of period | 959,636 | 2,465,145 |
Supplemental Disclosure of Cash Flow Information: | ' | ' |
Interest paid | 55,000 | 59,000 |
Income taxes paid | $2,000 | $2,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Significant Accounting Policies [Text Block] | ' | |||||||
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Basis of Presentation | ||||||||
The accompanying unaudited condensed consolidated financial statements include the accounts of Inrad Optics, Inc. and its subsidiaries (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated. | ||||||||
The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. For further information, refer to the consolidated financial statements and accompanying footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | ||||||||
In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the consolidated financial statements were issued. | ||||||||
Management Estimates | ||||||||
These unaudited condensed consolidated financial statements and related disclosures have been prepared in conformity with U.S. GAAP which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses reported in those financial statements. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. | ||||||||
Inventories | ||||||||
Inventories are stated at the lower of cost (first-in-first-out basis) or market. The Company records a reserve for slow moving inventory as a charge against earnings for all products identified as surplus, slow-moving or discontinued. Excess work-in-process costs are charged against earnings whenever estimated costs-of-completion exceed unbilled revenues. | ||||||||
Inventories are comprised of the following and are shown net of inventory reserves, in thousands: | ||||||||
June 30, | December 31, 2013 | |||||||
2014 | ||||||||
(Unaudited) | ||||||||
Raw materials | $ | 1,028 | $ | 1,012 | ||||
Work in process, including manufactured parts and components | 1,145 | 1,155 | ||||||
Finished goods | 745 | 963 | ||||||
$ | 2,918 | $ | 3,130 | |||||
Income Taxes | ||||||||
The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statements carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. | ||||||||
For the three and six months ended June 30, 2014 and 2013 the Company did not record a current provision for either state or federal income tax due to the losses incurred for both income tax and financial reporting purposes or the availability of net operating loss carry-forwards to offset against federal and state income tax. | ||||||||
In evaluating the Company’s ability to recover deferred tax assets in future periods, management considers the available positive and negative factors, including the Company’s recent operating results, the existence of cumulative losses and near term forecasts of future taxable income consistent with the plans and estimates that management uses to manage the underlying business. A significant piece of objective negative evidence evaluated was the cumulative loss incurred by the Company in the three-year period ended December 31, 2013 as well as the six months ended June 30, 2014. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. | ||||||||
On the basis of this evaluation as of June 30, 2014, the Company’s management concluded that it is more likely than not that the Company will not be able to realize any portion of the benefit on the net deferred tax balance of $4,287,000 and therefore the Company continues to maintain a valuation allowance for the full amount of the net deferred tax balance. | ||||||||
When sufficient positive evidence exists, the Company’s income tax expense will be charged with the increase or decrease in its valuation allowance. An increase or reversal of the Company’s valuation allowance could have a significant negative or positive impact on the Company’s future earnings. | ||||||||
Net (Loss) Income per Common Share | ||||||||
Basic net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of common shares outstanding during the period. Diluted net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of common shares and common stock equivalents outstanding, calculated on the treasury stock method for options, stock grants and warrants using the average market prices during the period, including potential common shares issuable upon conversion of outstanding convertible notes, except if the effect on the per share amounts is anti-dilutive. | ||||||||
For the three and six months ended June 30, 2014, all common stock equivalents were excluded from the computation of diluted net loss per share because their effect is anti-dilutive. This included 2,500,000 common shares and 1,875,000 warrants issuable upon conversion of outstanding related party convertible notes in each respective period, in addition to 923,651 common stock options and grants, in each respective period. | ||||||||
For the three and six months ended June 30, 2013, all common stock equivalents were excluded from the computation of diluted net loss per share because their effect is anti-dilutive. This included 2,500,000 common shares and 1,875,000 warrants issuable upon conversion of outstanding related party convertible notes in each respective period, in addition to 970,211 common stock options and grants, in each respective period. | ||||||||
Stock-Based Compensation | ||||||||
Stock-based compensation expense is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options granted using the Black-Scholes option pricing model. The fair value of restricted stock units granted is based on the closing market price of the Company’s common stock on the date of the grant. The fair value of these awards, adjusted for estimated forfeitures, is amortized over the requisite service period of the award, which is generally the vesting period. | ||||||||
Recently Adopted Accounting Standards | ||||||||
In July 2013, the Financial Accounting Standard Board (“FASB”) amended its guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or a tax credit carryforward exists. This guidance is effective for fiscal periods beginning after December 15, 2013. The adoption of this amendment did not have a material impact on the Company’s consolidated financial statements. | ||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606). This updated outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new guidance is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016; early adoption is not permitted. Companies have the option of using either a full retrospective or a modified retrospective approach to adopt the guidance. This update could impact the timing and amounts of revenue recognized. The Company is currently evaluating the effect that implementation of this update will have on its consolidated financial position and results of operations upon adoption. | ||||||||
EQUITY_COMPENSATION_PROGRAM_AN
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | |||||||||||
NOTE 2- EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION | ||||||||||||
a) | Stock Option Expense | |||||||||||
The Company's results of operations for the three months ended June 30, 2014 and 2013 include stock-based compensation expense for stock option grants totaling $24,425 and $38,930, respectively. Such amounts have been included in the accompanying Condensed Consolidated Statements of Operations within cost of goods sold in the amount of $11,000 ($20,314 for 2013), and selling, general and administrative expenses in the amount of $13,425 ($18,616 for 2013). | ||||||||||||
The Company's results of operations for the six months ended June 30, 2014 and 2013 include stock-based compensation expense for stock option grants totaling $56,752 and $77,860, respectively. Such amounts have been included in the accompanying Condensed Consolidated Statements of Operations within cost of goods sold in the amount of $27,190 ($40,628 for 2013), and selling, general and administrative expenses in the amount of $29,562 ($37,232 for 2013). | ||||||||||||
As of June 30, 2014 and 2013, there were $67,629 and $148,232 of unrecognized compensation cost, net of estimated forfeitures, related to non-vested stock options, which are expected to be recognized over a weighted average period of approximately 1.2 years and 1.4 years, respectively. | ||||||||||||
There were 103,000 and 80,000 stock options granted during the six months ended June 30, 2014 and 2013. The following range of weighted-average assumptions were used to determine the fair value of stock option grants during the six months ended June 30, 2014 and 2013: | ||||||||||||
Six Months Ended | ||||||||||||
June 30, | ||||||||||||
2014 | 2013 | |||||||||||
Expected Dividend yield | — | % | — | % | ||||||||
Expected Volatility | 116.4 | % | 98.1 – 110 | % | ||||||||
Risk-free interest rate | 1.9 | % | 1.9 – 2.1 | % | ||||||||
Expected term | 10 years | 8 – 10 years | ||||||||||
b) | Stock Option Activity | |||||||||||
The following table represents stock options granted, exercised and forfeited during the six month period ended June 30, 2014: | ||||||||||||
Stock Options | Number of Options | Weighted Average | Weighted Average | Aggregate Intrinsic Value | ||||||||
Exercise | Remaining | |||||||||||
Price per Option | Contractual Term (years) | |||||||||||
979,021 | $ | 0.96 | 5.7 | $ | — | |||||||
Outstanding at January 1, 2014 | ||||||||||||
Granted | 103,000 | 0.27 | ||||||||||
Exercised | — | — | ||||||||||
Expired/Forfeited | -158,370 | 0.83 | ||||||||||
923,651 | $ | 0.91 | 5.7 | $ | 300 | |||||||
Outstanding at June 30, 2014 | ||||||||||||
691,397 | $ | 1.07 | 5.3 | $ | 50 | |||||||
Exercisable at June 30, 2014 | ||||||||||||
The following table represents non-vested stock options granted, vested and forfeited for the six months ended June 30, 2014. | ||||||||||||
Options | Weighted-Average Grant-Date Fair | |||||||||||
Value | ||||||||||||
Non-vested - January 1, 2014 | 206,897 | $ | 0.55 | |||||||||
Granted | 103,000 | $ | 0.26 | |||||||||
Vested | -69,516 | $ | 0.95 | |||||||||
Forfeited | -8,127 | $ | 0.84 | |||||||||
Non-vested – June 30, 2014 | 232,254 | $ | 0.38 | |||||||||
The total fair value of options vested during the six months ended June 30, 2014 and 2013 was $65,993 and $81,133, respectively. | ||||||||||||
c) | Restricted Stock Unit Awards | |||||||||||
There were no grants of restricted stock units granted under the 2010 Equity Compensation Program during the six months ended June 30, 2014 and 2013. | ||||||||||||
Restricted stock units granted usually vest over a three year period at the rate of one-third per year, contingent on continued employment or service during the vesting period. | ||||||||||||
All of the restricted stock units last granted were fully vested during the first quarter of 2014 and therefore there was no remaining expense to be recognized during the three months ended June 30, 2014. The Company's results of operations for the three months ended June 30, 2013 include stock-based compensation expense for restricted stock unit grants totaling $1,212 and such amounts have been included in the accompanying Consolidated Statements of Operations within selling, general and administrative expenses. | ||||||||||||
The Company's results of operations for the six months ended June 30, 2014 and 2013 include stock-based compensation expense for restricted stock unit grants totaling $1,212 and $2,424, respectively, and such amounts have been included in the accompanying Consolidated Statements of Operations within selling, general and administrative expenses. | ||||||||||||
A summary of the Company’s non-vested restricted stock units at June 30, 2014 is presented below: | ||||||||||||
Restricted Stock Units | Weighted-Average Grant-Date Fair | |||||||||||
Value | ||||||||||||
Non-vested - January 1, 2014 | 5,000 | $ | 0.97 | |||||||||
Granted | — | — | ||||||||||
Vested | -5,000 | $ | 0.97 | |||||||||
Forfeited | — | — | ||||||||||
Non-vested – June 30, 2014 | — | — | ||||||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
NOTE 3- STOCKHOLDERS’ EQUITY | |
For the six months ended June 30, 2014, the Company issued 5,000 common shares on vesting of restricted stock awards. In April 2014, the Company issued an additional 298,490 common shares to the Inrad Optics 401k plan as a match to employee contributions for the 2013 Plan year. | |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE 4 – RELATED PARTY TRANSACTIONS | |
On July 29, 2014, the maturity dates of a $1,500,000 Subordinated Convertible Promissory Note to Clarex Limited (“Clarex”) and a $1,000,000 Subordinated Convertible Promissory Note to an affiliate of Clarex were each extended to April 1, 2017 from April 1, 2015. The notes bear interest at 6%. Interest accrues yearly and is payable on maturity. Unpaid interest, along with principal, may be converted into securities of the Company as follows: the notes are convertible in the aggregate into 1,500,000 units and 1,000,000 units, respectively, with each unit consisting of one share of common stock and one warrant. Each warrant allows the holder to acquire 0.75 shares of common stock at a price of $1.35 per share. As part of the agreement, the expiration dates of the warrants were extended from April 1, 2018 to April 1, 2020.. The Company is currently paying interest of $37,500 quarterly. | |
OTHER_LONG_TERM_NOTES
OTHER LONG TERM NOTES | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Other Liabilities Disclosure [Text Block] | ' | |||||||
NOTE 5 – OTHER LONG TERM NOTES | ||||||||
On July 26, 2012, the Company entered into a term loan agreement in the amount of $750,000 with Valley National Bank, Wayne, NJ. The loan is payable in equal monthly installments over five years beginning in August 2012 and bears an interest rate of 4.35% annually. The loan is secured with a security interest in new equipment, which the Company placed in service in 2013. In 2012, the Company made a down-payment of $500,000 on the equipment and the balance of the purchase price of $325,000 was paid in 2013 when the equipment was placed in service. The full amount of the asset was included in Machinery and Equipment at December 31, 2013. | ||||||||
The Company also has a note payable to the U.S. Small Business Administration which bears interest at the rate of 4.0% and is due in 2032. | ||||||||
Other Long Term Notes consist of the following: | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Term Note Payable, payable in equal monthly installments of $13,953 and bearing an interest rate of 4.35% and expiring in July 2017 | $ | 481 | $ | 554 | ||||
U.S. Small Business Administration term note payable in equal monthly installments of $1,922 and bearing an interest rate of 4.0% and expiring in April 2032. | $ | 310 | $ | 315 | ||||
791 | 869 | |||||||
Less current portion | -156 | -156 | ||||||
Long-term debt, excluding current portion | $ | 635 | $ | 713 | ||||
RESTRUCTURING_COSTS
RESTRUCTURING COSTS | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | |||||||||||||
NOTE 6 – RESTRUCTURING COSTS | ||||||||||||||
In November 2013, the Company announced plans to move the operations of its Sarasota, FL metal optics facility to its Northvale, NJ optical production center and corporate headquarters. The consolidation is part of a larger strategic effort to improve the Company's value proposition to its customers as well as improve its financial results. The physical integration of all development and production in one location is intended to enhance operating efficiencies and reduce overhead costs and centralize the Company's optical problem solving skills. This will allow for beneficial cross-pollination of expertise, including leveraging the Florida metal optics facility's single point diamond turning capability over a broader range of optical materials. | ||||||||||||||
The decision also reflects the continued uncertainty in U.S. defense funding. Much of the Company's metal optics business serves U.S. government installations and defense prime contractors. The company experienced a falloff in bookings from these customer groups in 2013 and through the six months ended June 30, 2014. | ||||||||||||||
As of March 31, 2014, the Company completed the transfer of the Sarasota operations to the Northvale facility and closed the Florida facility as scheduled. Through June 30, 2014, the Company incurred one-time charges of approximately $746,000, primarily associated with employee termination and relocation, moving of equipment, preparation of the Northvale facility and other general costs associated with consolidation. Of the total, $313,000 of restructuring costs were expensed in the fourth quarter of 2013. In addition, approximately $62,000 and $121,000 have been expensed in the three and six months ended June 30, 2014, respectively. Also included in the total are capital expenditures for leasehold improvements associated with this project. In the three and six months ended June 30, 2014, these were approximately $171,000 and $312,000, respectively and have been included in Plant and Equipment in the Company’s Condensed Consolidated Balance Sheets at June 30, 2014. Depreciation of these and associated capital expenditures will begin in the third quarter of 2014. Accrued restructuring costs related to severance and other costs in the amount of $47,000 are expected to be paid through the end of 2014 and are included in Accounts Payable and Accrued Liabilities in the Company’s Condensed Consolidated Balance Sheets at June 30, 2014. | ||||||||||||||
Overall annual reductions in operational costs are expected to be in the range of $800,000 to $1,000,000 per year starting in the second quarter of 2014. | ||||||||||||||
The following table summarizes restructuring information by type of cost: | ||||||||||||||
(In Thousands) | Termination | Northvale | Moving and Other Costs | Total | ||||||||||
and | Facility | |||||||||||||
Relocation | Expenditures | |||||||||||||
Restructuring costs expected to be incurred | $ | 227 | $ | 374 | $ | 145 | $ | 746 | ||||||
Accrued balance December 31, 2013 | $ | 227 | $ | — | $ | 70 | $ | 297 | ||||||
Provisions | — | 41 | 18 | 59 | ||||||||||
Cash expenditures | -25 | -41 | -58 | -124 | ||||||||||
Accrued balance March 31, 2014 | $ | 202 | $ | — | $ | 30 | $ | 232 | ||||||
Provisions | — | 5 | 57 | 62 | ||||||||||
Cash expenditures | -155 | -5 | -87 | -247 | ||||||||||
Accrued balance June 30, 2014 | $ | 47 | $ | — | $ | — | $ | 47 | ||||||
WORKFORCE_REDUCTION
WORKFORCE REDUCTION | 6 Months Ended |
Jun. 30, 2014 | |
Workforce Reduction [Abstract] | ' |
Workforce Reduction Disclosure [Text Block] | ' |
NOTE 7 – WORKFORCE REDUCTION | |
In the first quarter of 2013, the Company instituted a plan to reduce its combined headcount by approximately 11%, in order to reduce costs and align its workforce with current business requirements while ensuring the Company would continue to meet its customers’ needs. The reductions affected both the Company’s Northvale, NJ and the Sarasota, FL operations. Annualized savings from the reductions are expected to be approximately $700,000. Severance and other separation costs of $112,000 and $29,000 were expensed in the first and second quarters of 2013, respectively, and offset payroll savings of approximately $45,000 and $175,000, respectively. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Basis of Accounting, Policy [Policy Text Block] | ' | |||||||
Basis of Presentation | ||||||||
The accompanying unaudited condensed consolidated financial statements include the accounts of Inrad Optics, Inc. and its subsidiaries (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated. | ||||||||
The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. For further information, refer to the consolidated financial statements and accompanying footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | ||||||||
In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the consolidated financial statements were issued. | ||||||||
Use of Estimates, Policy [Policy Text Block] | ' | |||||||
Management Estimates | ||||||||
These unaudited condensed consolidated financial statements and related disclosures have been prepared in conformity with U.S. GAAP which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses reported in those financial statements. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. | ||||||||
Inventory, Policy [Policy Text Block] | ' | |||||||
Inventories | ||||||||
Inventories are stated at the lower of cost (first-in-first-out basis) or market. The Company records a reserve for slow moving inventory as a charge against earnings for all products identified as surplus, slow-moving or discontinued. Excess work-in-process costs are charged against earnings whenever estimated costs-of-completion exceed unbilled revenues. | ||||||||
Inventories are comprised of the following and are shown net of inventory reserves, in thousands: | ||||||||
June 30, | December 31, 2013 | |||||||
2014 | ||||||||
(Unaudited) | ||||||||
Raw materials | $ | 1,028 | $ | 1,012 | ||||
Work in process, including manufactured parts and components | 1,145 | 1,155 | ||||||
Finished goods | 745 | 963 | ||||||
$ | 2,918 | $ | 3,130 | |||||
Income Tax, Policy [Policy Text Block] | ' | |||||||
Income Taxes | ||||||||
The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statements carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. | ||||||||
For the three and six months ended June 30, 2014 and 2013 the Company did not record a current provision for either state or federal income tax due to the losses incurred for both income tax and financial reporting purposes or the availability of net operating loss carry-forwards to offset against federal and state income tax. | ||||||||
In evaluating the Company’s ability to recover deferred tax assets in future periods, management considers the available positive and negative factors, including the Company’s recent operating results, the existence of cumulative losses and near term forecasts of future taxable income consistent with the plans and estimates that management uses to manage the underlying business. A significant piece of objective negative evidence evaluated was the cumulative loss incurred by the Company in the three-year period ended December 31, 2013 as well as the six months ended June 30, 2014. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. | ||||||||
On the basis of this evaluation as of June 30, 2014, the Company’s management concluded that it is more likely than not that the Company will not be able to realize any portion of the benefit on the net deferred tax balance of $4,287,000 and therefore the Company continues to maintain a valuation allowance for the full amount of the net deferred tax balance. | ||||||||
When sufficient positive evidence exists, the Company’s income tax expense will be charged with the increase or decrease in its valuation allowance. An increase or reversal of the Company’s valuation allowance could have a significant negative or positive impact on the Company’s future earnings. | ||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | |||||||
Net (Loss) Income per Common Share | ||||||||
Basic net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of common shares outstanding during the period. Diluted net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of common shares and common stock equivalents outstanding, calculated on the treasury stock method for options, stock grants and warrants using the average market prices during the period, including potential common shares issuable upon conversion of outstanding convertible notes, except if the effect on the per share amounts is anti-dilutive. | ||||||||
For the three and six months ended June 30, 2014, all common stock equivalents were excluded from the computation of diluted net loss per share because their effect is anti-dilutive. This included 2,500,000 common shares and 1,875,000 warrants issuable upon conversion of outstanding related party convertible notes in each respective period, in addition to 923,651 common stock options and grants, in each respective period. | ||||||||
For the three and six months ended June 30, 2013, all common stock equivalents were excluded from the computation of diluted net loss per share because their effect is anti-dilutive. This included 2,500,000 common shares and 1,875,000 warrants issuable upon conversion of outstanding related party convertible notes in each respective period, in addition to 970,211 common stock options and grants, in each respective period. | ||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |||||||
Stock-Based Compensation | ||||||||
Stock-based compensation expense is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options granted using the Black-Scholes option pricing model. The fair value of restricted stock units granted is based on the closing market price of the Company’s common stock on the date of the grant. The fair value of these awards, adjusted for estimated forfeitures, is amortized over the requisite service period of the award, which is generally the vesting period. | ||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||||||
Recently Adopted Accounting Standards | ||||||||
In July 2013, the Financial Accounting Standard Board (“FASB”) amended its guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or a tax credit carryforward exists. This guidance is effective for fiscal periods beginning after December 15, 2013. The adoption of this amendment did not have a material impact on the Company’s consolidated financial statements. | ||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606). This updated outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new guidance is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016; early adoption is not permitted. Companies have the option of using either a full retrospective or a modified retrospective approach to adopt the guidance. This update could impact the timing and amounts of revenue recognized. The Company is currently evaluating the effect that implementation of this update will have on its consolidated financial position and results of operations upon adoption. | ||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventories are comprised of the following and are shown net of inventory reserves, in thousands: | ||||||||
June 30, | December 31, 2013 | |||||||
2014 | ||||||||
(Unaudited) | ||||||||
Raw materials | $ | 1,028 | $ | 1,012 | ||||
Work in process, including manufactured parts and components | 1,145 | 1,155 | ||||||
Finished goods | 745 | 963 | ||||||
$ | 2,918 | $ | 3,130 | |||||
EQUITY_COMPENSATION_PROGRAM_AN1
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | |||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||
The following range of weighted-average assumptions were used to determine the fair value of stock option grants during the six months ended June 30, 2014 and 2013: | ||||||||||||
Six Months Ended | ||||||||||||
June 30, | ||||||||||||
2014 | 2013 | |||||||||||
Expected Dividend yield | — | % | — | % | ||||||||
Expected Volatility | 116.4 | % | 98.1 – 110 | % | ||||||||
Risk-free interest rate | 1.9 | % | 1.9 – 2.1 | % | ||||||||
Expected term | 10 years | 8 – 10 years | ||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||
The following table represents stock options granted, exercised and forfeited during the six month period ended June 30, 2014: | ||||||||||||
Stock Options | Number of Options | Weighted Average | Weighted Average | Aggregate Intrinsic Value | ||||||||
Exercise | Remaining | |||||||||||
Price per Option | Contractual Term (years) | |||||||||||
979,021 | $ | 0.96 | 5.7 | $ | — | |||||||
Outstanding at January 1, 2014 | ||||||||||||
Granted | 103,000 | 0.27 | ||||||||||
Exercised | — | — | ||||||||||
Expired/Forfeited | -158,370 | 0.83 | ||||||||||
923,651 | $ | 0.91 | 5.7 | $ | 300 | |||||||
Outstanding at June 30, 2014 | ||||||||||||
691,397 | $ | 1.07 | 5.3 | $ | 50 | |||||||
Exercisable at June 30, 2014 | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Non Vested [Table Text Block] | ' | |||||||||||
The following table represents non-vested stock options granted, vested and forfeited for the six months ended June 30, 2014. | ||||||||||||
Options | Weighted-Average Grant-Date Fair | |||||||||||
Value | ||||||||||||
Non-vested - January 1, 2014 | 206,897 | $ | 0.55 | |||||||||
Granted | 103,000 | $ | 0.26 | |||||||||
Vested | -69,516 | $ | 0.95 | |||||||||
Forfeited | -8,127 | $ | 0.84 | |||||||||
Non-vested – June 30, 2014 | 232,254 | $ | 0.38 | |||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | ' | |||||||||||
A summary of the Company’s non-vested restricted stock units at June 30, 2014 is presented below: | ||||||||||||
Restricted Stock Units | Weighted-Average Grant-Date Fair | |||||||||||
Value | ||||||||||||
Non-vested - January 1, 2014 | 5,000 | $ | 0.97 | |||||||||
Granted | — | — | ||||||||||
Vested | -5,000 | $ | 0.97 | |||||||||
Forfeited | — | — | ||||||||||
Non-vested – June 30, 2014 | — | — | ||||||||||
OTHER_LONG_TERM_NOTES_Tables
OTHER LONG TERM NOTES (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Schedule of Debt [Table Text Block] | ' | |||||||
Other Long Term Notes consist of the following: | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Term Note Payable, payable in equal monthly installments of $13,953 and bearing an interest rate of 4.35% and expiring in July 2017 | $ | 481 | $ | 554 | ||||
U.S. Small Business Administration term note payable in equal monthly installments of $1,922 and bearing an interest rate of 4.0% and expiring in April 2032. | $ | 310 | $ | 315 | ||||
791 | 869 | |||||||
Less current portion | -156 | -156 | ||||||
Long-term debt, excluding current portion | $ | 635 | $ | 713 | ||||
RESTRUCTURING_COSTS_Tables
RESTRUCTURING COSTS (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||
Restructuring and Related Costs [Table Text Block] | ' | |||||||||||||
The following table summarizes restructuring information by type of cost: | ||||||||||||||
(In Thousands) | Termination | Northvale | Moving and Other Costs | Total | ||||||||||
and | Facility | |||||||||||||
Relocation | Expenditures | |||||||||||||
Restructuring costs expected to be incurred | $ | 227 | $ | 374 | $ | 145 | $ | 746 | ||||||
Accrued balance December 31, 2013 | $ | 227 | $ | — | $ | 70 | $ | 297 | ||||||
Provisions | — | 41 | 18 | 59 | ||||||||||
Cash expenditures | -25 | -41 | -58 | -124 | ||||||||||
Accrued balance March 31, 2014 | $ | 202 | $ | — | $ | 30 | $ | 232 | ||||||
Provisions | — | 5 | 57 | 62 | ||||||||||
Cash expenditures | -155 | -5 | -87 | -247 | ||||||||||
Accrued balance June 30, 2014 | $ | 47 | $ | — | $ | — | $ | 47 | ||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Inventory [Line Items] | ' | ' |
Raw materials | $1,028,000 | $1,012,000 |
Work in process, including manufactured parts and components | 1,145,000 | 1,155,000 |
Finished goods | 745,000 | 963,000 |
Inventories, net | $2,917,718 | $3,129,855 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Summary of Significant Accounting Policies [Line Items] | ' | ' |
Deferred Tax Assets, Valuation Allowance | 4,287,000 | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 923,651 | ' |
Convertible Debt Securities [Member] | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,500,000 | 2,500,000 |
Warrant [Member] | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,875,000 | 1,875,000 |
Equity Option [Member] | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 970,211 |
EQUITY_COMPENSATION_PROGRAM_AN2
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Details) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected Dividend yield | 0.00% | 0.00% |
Expected Volatility | 116.40% | ' |
Risk-free interest rate | 1.90% | ' |
Expected term | '10 years | ' |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected Volatility | ' | 110.00% |
Risk-free interest rate | ' | 2.10% |
Expected term | ' | '10 years |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected Volatility | ' | 98.10% |
Risk-free interest rate | ' | 1.90% |
Expected term | ' | '8 years |
EQUITY_COMPENSATION_PROGRAM_AN3
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Details 1) (USD $) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Options, Outstanding at January 1, 2014 | 979,021 | ' | ' |
Number of Options, Granted | 103,000 | 80,000 | ' |
Number of Options, Exercised | 0 | ' | ' |
Number of Options, Forfeited/Expired | -158,370 | ' | ' |
Number of Options, Outstanding at June 30, 2014 | 923,651 | ' | 979,021 |
Options, Exercisable as of June 30, 2014 | 691,397 | ' | ' |
Weighted Average Exercise Price per Option, Outstanding at January 1, 2014 | $0.96 | ' | ' |
Weighted Average Exercise Price per Option, Granted | $0.27 | ' | ' |
Weighted Average Exercise Price per Option, Exercised | $0 | ' | ' |
Weighted Average Exercise Price per Option, Expired/Forfeited | $0.83 | ' | ' |
Weighted Average Exercise Price per Option, Outstanding at June 30, 2014 | $0.91 | ' | $0.96 |
Weighted Average Exercise Price per Option, Exercisable at June 30, 2014 | $1.07 | ' | ' |
Weighted Average Remaining Contractual Term (years), Options Outstanding | '5 years 8 months 12 days | ' | '5 years 8 months 12 days |
Weighted Average Remaining Contractual Term (years), Options Exercisable at June 30, 2014 | '5 years 3 months 18 days | ' | ' |
Aggregate Intrinsic Value, Options Outstanding (in dollars) | $300 | ' | $0 |
Aggregate Intrinsic Value, Options Exercisable at June 30, 2014 (in dollars) | $50 | ' | ' |
EQUITY_COMPENSATION_PROGRAM_AN4
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Details 2) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options - Non-vested - January 1, 2014 | 206,897 |
Options - Granted | 103,000 |
Options - Vested | -69,516 |
Options - Forfeited | -8,127 |
Options - Non-vested - June 30, 2014 | 232,254 |
Weighted-Average Grant-Date Fair Value, Non-vested at January 1, 2014 (in dollars per share) | $0.55 |
Weighted-Average Grant-Date Fair Value - Granted (in dollars per share) | $0.26 |
Weighted-Average Grant-Date Fair Value - Vested (in dollars per share) | $0.95 |
Weighted-Average Grant-Date Fair Value - Forfeited (in dollars per share) | $0.84 |
Weighted-Average Grant-Date Fair Value, Non-vested at June 30, 2014 (in dollars per share) | $0.38 |
EQUITY_COMPENSATION_PROGRAM_AN5
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Details 3) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Non-vested Restricted Stock Units, Outstanding | 5,000 |
Non-vested Restricted Stock Units, Granted | 0 |
Non-vested Restricted Stock Units, Vested | -5,000 |
Non-vested Restricted Stock Units, Forfeited | 0 |
Non-vested Restricted Stock Units, Outstanding | 0 |
Weighted Average Grant Date Fair Value, Non-vested Restricted Stock Units, Outstanding (in dollars per share) | $0.97 |
Weighted Average Grant Date Fair Value, Non-vested Restricted Stock Units, Granted (in dollars per share) | $0 |
Weighted Average Grant Date Fair Value, Non-vested Restricted Stock Units, Vested (in dollars per share) | $0.97 |
Weighted Average Grant Date Fair Value, Non-vested Restricted Stock Units, Forfeited (in dollars per share) | $0 |
Weighted Average Grant Date Fair Value, Non-vested Restricted Stock Units, Outstanding (in dollars per share) | $0 |
EQUITY_COMPENSATION_PROGRAM_AN6
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Net Of Forfeitures | ' | ' | 103,000 | 80,000 |
Employee Stock Option [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $67,629 | $148,232 | $67,629 | $148,232 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition (in years) | ' | ' | '1 year 2 months 12 days | '1 year 4 months 24 days |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | ' | ' | 65,993 | 81,133 |
Allocated Share-based Compensation Expense | 24,425 | 38,930 | 56,752 | 77,860 |
Employee Stock Option [Member] | Cost of Sales [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 11,000 | 20,314 | 27,190 | 40,628 |
Employee Stock Option [Member] | Selling, General and Administrative Expenses [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 13,425 | 18,616 | 29,562 | 37,232 |
Restricted Stock Units (Rsus) [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | $1,212 | $1,212 | $2,424 |
STOCKHOLDERS_EQUITY_Details_Te
STOCKHOLDERS' EQUITY (Details Textual) | 6 Months Ended |
Jun. 30, 2014 | |
Class of Stock [Line Items] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Vested In Period | 5,000 |
Subsequent Event [Member] | ' |
Class of Stock [Line Items] | ' |
Stock Issued During Period, Shares, Employee Benefit Plan | 298,490 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Textual) (Convertible Subordinated Debt [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transaction [Line Items] | ' |
Debt Instrument, Periodic Payment, Interest | $37,500 |
Debt Instrument, Frequency Of Periodic Payment | 'quarterly |
Clarex [Member] | ' |
Related Party Transaction [Line Items] | ' |
Convertible Subordinated Debt | 1,500,000 |
Debt Instrument, Maturity Date | 1-Apr-17 |
Debt Instrument, Interest Rate, Stated Percentage | 6.00% |
Debt Instrument, Convertible, Number of Equity Instruments | 1,500,000 |
Warrants To Purchase Common Stock Number Of Shares Per Warrant | 0.75 |
Investment Warrants, Exercise Price | $1.35 |
Investment Warrants Expiration Date | 1-Apr-20 |
Debt Instrument, Convertible, Terms of Conversion Feature | 'each unit consisting of one share of common stock and one warrant |
Affiliate Of Clarex [Member] | ' |
Related Party Transaction [Line Items] | ' |
Convertible Subordinated Debt | $1,000,000 |
Debt Instrument, Maturity Date | 1-Apr-17 |
Debt Instrument, Interest Rate, Stated Percentage | 6.00% |
Debt Instrument, Convertible, Number of Equity Instruments | 1,000,000 |
Warrants To Purchase Common Stock Number Of Shares Per Warrant | 0.75 |
Investment Warrants, Exercise Price | $1.35 |
Investment Warrants Expiration Date | 1-Apr-20 |
Debt Instrument, Convertible, Terms of Conversion Feature | 'each unit consisting of one share of common stock and one warrant |
OTHER_LONG_TERM_NOTES_Details
OTHER LONG TERM NOTES (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Note Payable | $791,000 | $869,000 |
Less current portion | -156,000 | -156,000 |
Long-term debt, excluding current portion | 635,339 | 712,868 |
Term Note Payable [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Note Payable | 481,000 | 554,000 |
Us Small Business Administration Note Payable [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Note Payable | $310,000 | $315,000 |
OTHER_LONG_TERM_NOTES_Details_
OTHER LONG TERM NOTES (Details Textual) (USD $) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | |
Term Note Payable [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt Instrument, Face Amount | $750,000 | ' | ' |
Debt Instrument, Issuance Date | 1-Aug-12 | ' | ' |
Debt Instrument, Frequency of Periodic Payment | 'monthly | ' | ' |
Debt Instrument, Periodic Payment | 13,953 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | ' | ' |
Debt Instrument, Maturity Date | 31-Jul-17 | ' | ' |
Long-term Debt, Maturities, Repayment Terms | 'five years | ' | ' |
Cash Down Payment | ' | 500,000 | ' |
Asset Held As Security Purchase Price Payment Due | ' | ' | 325,000 |
Us Small Business Administration Note Payable [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt Instrument, Frequency of Periodic Payment | 'monthly | ' | ' |
Debt Instrument, Periodic Payment | $1,922 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | ' | ' |
Debt Instrument, Maturity Date | 30-Apr-32 | ' | ' |
RESTRUCTURING_COSTS_Details
RESTRUCTURING COSTS (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring costs expected to be incurred | $746,000 | ' | ' | $746,000 |
Accrued balance | 232,000 | 297,000 | ' | 297,000 |
Provisions | 62,000 | 59,000 | 313,000 | 121,000 |
Cash expenditures | -247,000 | -124,000 | ' | ' |
Accrued balance | 47,000 | 232,000 | 297,000 | 47,000 |
Termination and Relocation [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring costs expected to be incurred | 227,000 | ' | ' | 227,000 |
Accrued balance | 202,000 | 227,000 | ' | 227,000 |
Provisions | 0 | 0 | ' | ' |
Cash expenditures | -155,000 | -25,000 | ' | ' |
Accrued balance | 47,000 | 202,000 | ' | 47,000 |
Northvale Facility Expenditures [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring costs expected to be incurred | 374,000 | ' | ' | 374,000 |
Accrued balance | 0 | 0 | ' | 0 |
Provisions | 5,000 | 41,000 | ' | ' |
Cash expenditures | -5,000 | -41,000 | ' | ' |
Accrued balance | 0 | 0 | ' | 0 |
Moving and Other Costs [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring costs expected to be incurred | 145,000 | ' | ' | 145,000 |
Accrued balance | 30,000 | 70,000 | ' | 70,000 |
Provisions | 57,000 | 18,000 | ' | ' |
Cash expenditures | -87,000 | -58,000 | ' | ' |
Accrued balance | $0 | $30,000 | ' | $0 |
RESTRUCTURING_COSTS_Details_Te
RESTRUCTURING COSTS (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | $746,000 | ' | ' | $746,000 |
Restructuring Charges | 62,000 | 59,000 | 313,000 | 121,000 |
Leasehold Improvements [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Property, Plant and Equipment, Gross, Period Increase (Decrease) | 171,000 | ' | ' | 312,000 |
Northvale Facility Expenditures [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | 374,000 | ' | ' | 374,000 |
Restructuring Charges | 5,000 | 41,000 | ' | ' |
Maximum [Member] | Subsequent Event [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | 1,000,000 | ' | ' | 1,000,000 |
Minimum [Member] | Subsequent Event [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | $800,000 | ' | ' | $800,000 |
WORKFORCE_REDUCTION_Details_Te
WORKFORCE REDUCTION (Details Textual) (USD $) | 3 Months Ended | |
Jun. 30, 2013 | Mar. 31, 2013 | |
Workforce Reduction Disclosure [Line Items] | ' | ' |
Percentage Reduction In Work Force | ' | 11.00% |
Annualized Savings Due To Reduction In Work Force | ' | $700,000 |
Severance Costs | 29,000 | 112,000 |
Offset Payroll Savings Amount | $175,000 | $45,000 |