Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 14, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | Inrad Optics, Inc. | |
Entity Central Index Key | 719,494 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | INRD | |
Entity Common Stock, Shares Outstanding | 12,733,208 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 771,107 | $ 1,003,254 |
Accounts receivable (net of allowance for doubtful accounts of $15,000 in 2015 and 2014) | 1,356,280 | 1,126,655 |
Inventories, net | 2,985,829 | 2,686,721 |
Other current assets | 175,830 | 142,576 |
Total current assets | 5,289,046 | 4,959,206 |
Plant and equipment: | ||
Plant and equipment, at cost | 15,768,838 | 15,741,243 |
Less: Accumulated depreciation and amortization | (14,421,877) | (14,172,811) |
Total plant and equipment | 1,346,961 | 1,568,432 |
Precious Metals | 553,925 | 553,925 |
Intangible Assets, net | 240,915 | 280,196 |
Other Assets | 34,656 | 34,656 |
Total Assets | 7,465,503 | 7,396,415 |
Current Liabilities: | ||
Current portion of other long term notes | 164,100 | 164,100 |
Accounts payable and accrued liabilities | 1,299,059 | 1,017,755 |
Customer advances | 139,132 | 170,166 |
Total current liabilities | 1,602,291 | 1,352,021 |
Related Party Convertible Notes Payable | 2,500,000 | 2,500,000 |
Other Long Term Notes, net of current portion | 467,880 | 548,747 |
Total liabilities | $ 4,570,171 | $ 4,400,768 |
Commitments | ||
Shareholders' Equity: | ||
Common stock: $.01 par value; 60,000,000 authorized shares; 12,737,808 Shares issued at June 30, 2015 and 12,354,093 issued at December 31, 2014 | $ 127,380 | $ 123,543 |
Capital in excess of par value | 18,526,133 | 18,437,405 |
Accumulated deficit | (15,743,231) | (15,550,351) |
Stockholders' Equity before Treasury Stock | 2,910,282 | 3,010,597 |
Less - Common stock in treasury, at cost (4,600 shares) | (14,950) | (14,950) |
Total shareholders’ equity | 2,895,332 | 2,995,647 |
Total Liabilities and Shareholders’ Equity | $ 7,465,503 | $ 7,396,415 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
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 | 12,737,808 | 12,354,093 |
Treasury stock, shares | 4,600 | 4,600 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Total revenue | $ 2,765,365 | $ 2,227,546 | $ 5,295,590 | $ 4,131,926 |
Cost and expenses: | ||||
Cost of goods sold | 2,231,330 | 2,307,000 | 4,069,771 | 4,288,678 |
Restructuring costs | 0 | 61,951 | 0 | 120,616 |
Selling, general and administrative expenses | 700,496 | 844,581 | 1,329,753 | 1,603,686 |
Costs and Expenses, Total | 2,931,826 | 3,213,532 | 5,399,524 | 6,012,980 |
Loss from operations | (166,461) | (985,986) | (103,934) | (1,881,054) |
Other expense: | ||||
Interest expensenet | (44,518) | (45,308) | (88,946) | (90,183) |
Gain on sale of plant and equipment | 0 | 0 | 0 | 65,074 |
Other expense | (44,518) | (45,308) | (88,946) | (25,109) |
Net loss before income taxes | (210,979) | (1,031,294) | (192,880) | (1,906,163) |
Income tax (provision) benefit | 0 | 0 | 0 | 0 |
Net loss | $ (210,979) | $ (1,031,294) | $ (192,880) | $ (1,906,163) |
Net loss per common share basic and diluted (in dollars per share) | $ (0.02) | $ (0.08) | $ (0.02) | $ (0.16) |
Weighted average shares outstanding basic and diluted (in shares) | 12,733,208 | 12,349,490 | 12,459,126 | 12,133,666 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net (loss) | $ (192,880) | $ (1,906,163) |
Adjustments to reconcile net (loss) to net cash (used in) operating activities: | ||
Depreciation and amortization | 288,347 | 295,721 |
401K common stock contribution | 79,536 | 71,255 |
Gain on sale of plant and equipment | 0 | (65,074) |
Stock based compensation | 13,028 | 57,964 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (229,625) | 115,915 |
Inventories, net | (299,108) | 212,137 |
Other current assets | (33,254) | 41,172 |
Accounts payable and accrued liabilities | 281,305 | (48,427) |
Customer advances | (31,034) | 104,586 |
Total adjustments and changes | 69,195 | 785,249 |
Net cash (used in) operating activities | (123,685) | (1,120,914) |
Cash flows from investing activities: | ||
Capital expenditures | (27,595) | (362,848) |
Purchase of precious metal tools | 0 | (8,716) |
Proceeds from sale of plant and equipment | 0 | 78,380 |
Net cash (used in) investing activities | (27,595) | (293,184) |
Cash flows from financing activities: | ||
Principal payments on notes payable-other | (80,867) | (77,529) |
Net cash (used in) financing activities | (80,867) | (77,529) |
Net (decrease) in cash and cash equivalents | (232,147) | (1,491,627) |
Cash and cash equivalents at beginning of period | 1,003,254 | 2,451,263 |
Cash and cash equivalents at end of period | 771,107 | 959,636 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest paid | 89,385 | 55,000 |
Income taxes paid | $ 1,800 | $ 2,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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, 2014. 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. These unaudited condensed consolidated 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. June 30, December 31, 2015 2014 (Unaudited) Raw materials $ 1,031 $ 1,049 Work in process, including manufactured parts and components 1,236 956 Finished goods 719 682 $ 2,986 $ 2,687 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, 2015 and 2014 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 over the three-year period ended December 31, 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, 2015, 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 $4,685,000 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. 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 months and six months ended June 30, 2015, 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 1,875,000 829,710 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 1,875,000 923,651 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. In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30) (“ASU 2015-03”). ASU 2015-03 was issued to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by these amendments. This guidance should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The guidance will be effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The adoption of this amendment is not expected to have a material impact on the Company’s consolidated financial statements. In January 2015, the FASB issued ASU 2015-01, Income Statement Extraordinary and Unusual Items (Subtopic 225-20) (“ASU 2015-01”). ASU 2015-01 changed the requirements for reporting extraordinary and unusual items in the income statement. The update eliminates the concept of extraordinary items. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. A reporting entity may apply the amendments prospectively or retrospectively to all periods presented in the financial statements. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. In August 2014, the Financial Accounting Standards Board (the “FASB”) issued authoritative accounting guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. This guidance is effective for public and non-public entities for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently assessing the expected impact, if any, that this Accounting Standards Update will have on its consolidated financial statements. In May 2014, the Financial Accounting Standards Board (the “FASB”) issued an Accounting Standards Update (“ASU”) which supersedes virtually all existing revenue recognition guidance under U.S. GAAP. The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017 (including interim periods within those periods). Early adoption is permitted to the original effective date of December 15, 2016, (including interim periods within those periods). The Company is currently assessing the potential impact of adoption on its consolidated financial statements. |
EQUITY COMPENSATION PROGRAM AND
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and 2014 include stock-based compensation expense for stock option grants totaling $ 6,548 24,425 1,216 11,000 5,332 13,425 The Company's results of operations for the six months ended June 30, 2015 and 2014 include stock-based compensation expense for stock option grants totaling $ 13,028 56,752 2,364 27,190 10,664 29,562 As of June 30, 2015 and 2014, there were $ 38,469 67,629 1.4 1.2 There were 133,000 103,000 Six Months Ended June 30, 2015 2014 Expected Dividend yield % % Expected Volatility 122 -127 % 116 % Risk-free interest rate 2.0 % 1.9 % Expected term 10 years 10 years b) Stock Option Activity Weighted Weighted Average Average Remaining Number of Exercise Contractual Aggregate Stock Options Options Price per Option Term (years) Intrinsic Value Outstanding at January 1, 2015 877,817 $ .93 5.1 $ Granted 133,000 .20 Exercised Expired/Forfeited (181,107) 1.08 Outstanding at June 30, 2015 829,710 $ .78 5.3 $ 20,113 Options Weighted-Average Grant-Date Non-vested - January 1, 2015 150,059 0.27 Granted 133,000 $ 0.19 Vested (49,330) $ 0.26 Forfeited (16,667) $ 0.23 Non-vested June 30, 2015 217,062 $ 0.22 The total fair value of options vested during the six months ended June 30, 2015 and 2014 was $ 13,036 65,993 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, 2015 and 2014. The Company's results of operations for the six months ended June 30, 2015 and 2014 include stock-based compensation expense for restricted stock unit grants totaling $ 0 1,212 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 3 STOCKHOLDERS’ EQUITY In April 2015, the Company issued an additional 383,715 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 | |
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 4.35 4.0 June 30, December 31, 2015 2014 (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 $ 333 $ 408 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. $ 299 $ 305 632 713 Less current portion (164) (164) Long-term debt, excluding current portion $ 468 $ 549 |
RESTRUCTURING COSTS
RESTRUCTURING COSTS | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 6 RESTRUCTURING COSTS The Company completed the transfer of the Sarasota operations to the Northvale, New Jersey facility and the Florida facility was closed as of March 31, 2014. Restructuring charges of $ 62,000 121,000 247,000 371,000 |
SUMMARY OF SIGNIFICANT ACCOUN12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2014. 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 |
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. June 30, December 31, 2015 2014 (Unaudited) Raw materials $ 1,031 $ 1,049 Work in process, including manufactured parts and components 1,236 956 Finished goods 719 682 $ 2,986 $ 2,687 |
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, 2015 and 2014 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 over the three-year period ended December 31, 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, 2015, 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 $4,685,000 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 months and six months ended June 30, 2015, 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 1,875,000 829,710 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 1,875,000 923,651 |
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 April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30) (“ASU 2015-03”). ASU 2015-03 was issued to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by these amendments. This guidance should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The guidance will be effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The adoption of this amendment is not expected to have a material impact on the Company’s consolidated financial statements. In January 2015, the FASB issued ASU 2015-01, Income Statement Extraordinary and Unusual Items (Subtopic 225-20) (“ASU 2015-01”). ASU 2015-01 changed the requirements for reporting extraordinary and unusual items in the income statement. The update eliminates the concept of extraordinary items. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. A reporting entity may apply the amendments prospectively or retrospectively to all periods presented in the financial statements. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. In August 2014, the Financial Accounting Standards Board (the “FASB”) issued authoritative accounting guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. This guidance is effective for public and non-public entities for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently assessing the expected impact, if any, that this Accounting Standards Update will have on its consolidated financial statements. In May 2014, the Financial Accounting Standards Board (the “FASB”) issued an Accounting Standards Update (“ASU”) which supersedes virtually all existing revenue recognition guidance under U.S. GAAP. The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017 (including interim periods within those periods). Early adoption is permitted to the original effective date of December 15, 2016, (including interim periods within those periods). The Company is currently assessing the potential impact of adoption on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 (Unaudited) Raw materials $ 1,031 $ 1,049 Work in process, including manufactured parts and components 1,236 956 Finished goods 719 682 $ 2,986 $ 2,687 |
EQUITY COMPENSATION PROGRAM A14
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and 2014: Six Months Ended June 30, 2015 2014 Expected Dividend yield % % Expected Volatility 122 -127 % 116 % Risk-free interest rate 2.0 % 1.9 % Expected term 10 years 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, 2015: Weighted Weighted Average Average Remaining Number of Exercise Contractual Aggregate Stock Options Options Price per Option Term (years) Intrinsic Value Outstanding at January 1, 2015 877,817 $ .93 5.1 $ Granted 133,000 .20 Exercised Expired/Forfeited (181,107) 1.08 Outstanding at June 30, 2015 829,710 $ .78 5.3 $ 20,113 |
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, 2015. Options Weighted-Average Grant-Date Non-vested - January 1, 2015 150,059 0.27 Granted 133,000 $ 0.19 Vested (49,330) $ 0.26 Forfeited (16,667) $ 0.23 Non-vested June 30, 2015 217,062 $ 0.22 |
OTHER LONG TERM NOTES (Tables)
OTHER LONG TERM NOTES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Other Long Term Notes consist of the following: June 30, December 31, 2015 2014 (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 $ 333 $ 408 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. $ 299 $ 305 632 713 Less current portion (164) (164) Long-term debt, excluding current portion $ 468 $ 549 |
SUMMARY OF SIGNIFICANT ACCOUN16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Raw materials | $ 1,031,000 | $ 1,049,000 |
Work in process, including manufactured parts and components | 1,236,000 | 956,000 |
Finished goods | 719,000 | 682,000 |
Inventories, net | $ 2,985,829 | $ 2,686,721 |
SUMMARY OF SIGNIFICANT ACCOUN17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary of Significant Accounting Policies [Line Items] | ||||
Deferred Tax Assets, Valuation Allowance | $ 4,685,000 | $ 4,685,000 | ||
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 | 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 | 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 | 829,710 | 923,651 | 829,710 | 923,651 |
EQUITY COMPENSATION PROGRAM A18
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Details) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Dividend yield | 0.00% | 0.00% |
Expected Volatility | 116.00% | |
Risk-free interest rate | 2.00% | 1.90% |
Expected term | 10 years | 10 years |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Volatility | 127.00% | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Volatility | 122.00% |
EQUITY COMPENSATION PROGRAM A19
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Details 1) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options, Outstanding at January 1, 2015 | 877,817 | |
Number of Options, Granted | 133,000 | |
Number of Options, Exercised | 0 | |
Number of Options, Expired/Forfeited | (181,107) | |
Number of Options, Outstanding at June 30, 2015 | 829,710 | 877,817 |
Weighted Average Exercise Price per Option, Outstanding at January 1, 2015 | $ 0.93 | |
Weighted Average Exercise Price per Option, Granted | 0.20 | |
Weighted Average Exercise Price per Option, Exercised | 0 | |
Weighted Average Exercise Price per Option, Expired/Forfeited | 1.08 | |
Weighted Average Exercise Price per Option, Outstanding at June 30, 2015 | $ 0.78 | $ 0.93 |
Weighted Average Remaining Contractual Term, Options Outstanding | 5 years 3 months 18 days | 5 years 1 month 6 days |
Aggregate Intrinsic Value, Options Outstanding (in dollars) | $ 20,113 | $ 0 |
EQUITY COMPENSATION PROGRAM A20
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Details 2) - 6 months ended Jun. 30, 2015 - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options - Non-vested - January 1, 2014 | 150,059 |
Options - Granted | 133,000 |
Options - Vested | (49,330) |
Options - Forfeited | (16,667) |
Options - Non-vested - June 30, 2015 | 217,062 |
Weighted-Average Grant-Date Fair Value, Non-vested at January 1, 2014 (in dollars per share) | $ 0.27 |
Weighted-Average Grant-Date Fair Value - Granted (in dollars per share) | 0.19 |
Weighted-Average Grant-Date Fair Value - Vested (in dollars per share) | 0.26 |
Weighted-Average Grant-Date Fair Value - Forfeited (in dollars per share) | 0.23 |
Weighted-Average Grant-Date Fair Value, Non-vested at June 30, 2015 (in dollars per share) | $ 0.22 |
EQUITY COMPENSATION PROGRAM A21
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
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 | 133,000 | |||
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 | $ 38,469 | $ 67,629 | $ 38,469 | $ 67,629 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition (in years) | 1 year 4 months 24 days | 1 year 2 months 12 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $ 13,036 | $ 65,993 | ||
Allocated Share-based Compensation Expense | 6,548 | 24,425 | $ 13,028 | $ 56,752 |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Net Of Forfeitures | 133,000 | 103,000 | ||
Employee Stock Option [Member] | Cost of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 1,216 | 11,000 | $ 2,364 | $ 27,190 |
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 | $ 5,332 | $ 13,425 | 10,664 | 29,562 |
Restricted Stock Units (Rsus) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 0 | $ 1,212 |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) | 1 Months Ended |
Apr. 30, 2015shares | |
Inrad Optics 401k plan [Member] | |
Class of Stock [Line Items] | |
Stock Issued During Period, Shares, Employee Benefit Plan | 383,715 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) - Jun. 30, 2015 | USD ($)$ / sharesshares |
Related Party Transaction [Line Items] | |
Debt Instrument, Frequency Of Periodic Payment | quarterly |
Clarex [Member] | |
Related Party Transaction [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 6.00% |
Warrants To Purchase Common Stock Number Of Shares Per Warrant | shares | 0.75 |
Investment Warrants, Exercise Price | $ / shares | $ 1.35 |
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] | |
Debt Instrument, Interest Rate, Stated Percentage | 6.00% |
Warrants To Purchase Common Stock Number Of Shares Per Warrant | shares | 0.75 |
Investment Warrants, Exercise Price | $ / shares | $ 1.35 |
Debt Instrument, Convertible, Terms of Conversion Feature | each unit consisting of one share of common stock and one warrant |
Convertible Subordinated Debt [Member] | |
Related Party Transaction [Line Items] | |
Debt Instrument, Periodic Payment, Interest | $ 37,500 |
Convertible Subordinated Debt [Member] | Clarex [Member] | |
Related Party Transaction [Line Items] | |
Convertible Subordinated Debt | $ 1,500,000 |
Debt Instrument, Maturity Date | Apr. 1, 2017 |
Debt Instrument, Convertible, Number of Equity Instruments | 1,500,000 |
Investment Warrants Expiration Date | Apr. 1, 2018 |
Convertible Subordinated Debt [Member] | Affiliate Of Clarex [Member] | |
Related Party Transaction [Line Items] | |
Convertible Subordinated Debt | $ 1,000,000 |
Debt Instrument, Maturity Date | Apr. 1, 2015 |
Debt Instrument, Convertible, Number of Equity Instruments | 1,000,000 |
Investment Warrants Expiration Date | Apr. 1, 2020 |
OTHER LONG TERM NOTES (Details)
OTHER LONG TERM NOTES (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Note Payable | $ 632,000 | $ 713,000 |
Less current portion | (164,000) | (164,000) |
Long-term debt, excluding current portion | 467,880 | 548,747 |
Term Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Note Payable | 333,000 | 408,000 |
U.S. Small Business Administration Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Note Payable | $ 299,000 | $ 305,000 |
OTHER LONG TERM NOTES (Details
OTHER LONG TERM NOTES (Details Textual) - Jun. 30, 2015 - USD ($) | Total |
Debt Instrument [Line Items] | |
Debt Instrument, Frequency of Periodic Payment | quarterly |
Term Note Payable [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 750,000 |
Debt Instrument, Issuance Date | Aug. 1, 2012 |
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 | Jul. 31, 2017 |
U.S. 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 | Apr. 30, 2032 |
RESTRUCTURING COSTS (Details Te
RESTRUCTURING COSTS (Details Textual) - Jun. 30, 2014 - USD ($) | Total | Total |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 62,000 | $ 121,000 |
Payments for Restructuring | $ 247,000 | $ 371,000 |