DEI_Document
DEI Document | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'HOOPER HOLMES INC | ' |
Entity Central Index Key | '0000741815 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 70,082,737 |
Consolidated_Balance_Sheets_un
Consolidated Balance Sheets (unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $6,655 | $8,319 |
Accounts receivable, net of allowance for doubtful accounts of $622 and $662 at September 30, 2013 and December 31, 2012, respectively | 15,983 | 17,018 |
Inventories | 1,773 | 1,290 |
Other current assets | 1,607 | 374 |
Assets held for sale | 0 | 3,646 |
Total current assets | 26,018 | 30,647 |
Property, plant and equipment at cost | 21,092 | 20,829 |
Less: Accumulated depreciation and amortization | 16,474 | 15,195 |
Property, plant and equipment, net | 4,618 | 5,634 |
Other assets | 2,094 | 137 |
Total assets | 32,730 | 36,418 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Short-term borrowings | 2,608 | 0 |
Accounts payable | 8,127 | 6,783 |
Accrued expenses | 5,895 | 4,439 |
Liabilities held for sale | 0 | 220 |
Total current liabilities | 16,630 | 11,442 |
Other long-term liabilities | 920 | 1,115 |
Commitments and contingencies (Note 10) | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock, par value $.04 per share; Authorized: 240,000,000 shares; Issued: 70,140,864 shares and 69,844,782 shares at September 30, 2013 and December 31, 2012, respectively; Outstanding: 70,131,469 shares and 69,835,387 shares at September 30, 2013 and December 31, 2012, respectively. | 2,806 | 2,794 |
Additional paid-in capital | 150,125 | 149,542 |
Accumulated deficit | -137,680 | -128,404 |
Stockholders' equity | 15,251 | 23,932 |
Less: Treasury stock, at cost; 9,395 shares at September 30, 2013 and December 31, 2012 | -71 | -71 |
Total stockholders' equity | 15,180 | 23,861 |
Total liabilities and stockholders' equity | $32,730 | $36,418 |
Consolidated_Balance_Sheet_una
Consolidated Balance Sheet (unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $622 | $662 |
Common stock, par value (in dollars per share) | $0.04 | $0.04 |
Common stock, shares authorized (in shares) | 240,000,000 | 240,000,000 |
Common stock, shares issued (in shares) | 70,140,864 | 69,844,782 |
Common stock, shares outstanding (in shares) | 70,131,469 | 69,835,387 |
Treasury stock (in shares) | 9,395 | 9,395 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenues | $10,993 | $12,299 | $34,193 | $35,786 |
Cost of operations | 8,730 | 8,762 | 25,663 | 25,529 |
Gross profit | 2,263 | 3,537 | 8,530 | 10,257 |
Selling, general and administrative expenses | 5,002 | 4,655 | 15,372 | 15,054 |
Impairment of long-lived assets | 0 | 0 | 212 | 0 |
Restructuring charges | 362 | 0 | 671 | 445 |
Operating loss from continuing operations | -3,101 | -1,118 | -7,725 | -5,242 |
Other expense: | ' | ' | ' | ' |
Interest expense | -54 | -2 | -80 | -8 |
Interest income | 0 | 6 | 4 | 22 |
Other expense, net | -131 | -71 | -343 | -217 |
Other expense | -185 | -67 | -419 | -203 |
Loss from continuing operations before income taxes | -3,286 | -1,185 | -8,144 | -5,445 |
Income tax expense | 5 | 4 | 14 | 11 |
Loss from continuing operations | -3,291 | -1,189 | -8,158 | -5,456 |
Discontinued operations: | ' | ' | ' | ' |
Gain on sale of Portamedic and subsidiary | 3,543 | 0 | 3,618 | 65 |
Loss from discontinued operations, net of income taxes | -1,966 | -1,004 | -4,736 | -5,470 |
Income (loss) from Discontinued Operations | 1,577 | -1,004 | -1,118 | -5,405 |
Net loss | ($1,714) | ($2,193) | ($9,276) | ($10,861) |
Continuing operations | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.05) | ($0.02) | ($0.12) | ($0.08) |
Diluted (in dollars per share) | ($0.05) | ($0.02) | ($0.12) | ($0.08) |
Discontinued operations | ' | ' | ' | ' |
Basic (in dollars per share) | $0.02 | ($0.01) | ($0.02) | ($0.08) |
Diluted (in dollars per share) | $0.02 | ($0.01) | ($0.02) | ($0.08) |
Net loss | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.02) | ($0.03) | ($0.13) | ($0.16) |
Diluted (in dollars per share) | ($0.02) | ($0.03) | ($0.13) | ($0.16) |
Weighted average number of shares - Basic (in shares) | 69,952,153 | 69,789,628 | 69,877,878 | 69,713,178 |
Weighted average number of shares - Diluted (in shares) | 69,952,153 | 69,789,628 | 69,877,878 | 69,713,178 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net loss | ($9,276) | ($10,861) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Gain on sale of Portamedic and subsidiary | -3,618 | 0 |
Depreciation | 1,828 | 2,970 |
Amortization | 0 | 159 |
Amortization of debt financing fees | 213 | 102 |
Provision for bad debt expense | 80 | 55 |
Share-based compensation expense | 581 | 539 |
Impairment and loss on disposal of fixed assets | 486 | 208 |
Change in assets and liabilities: | ' | ' |
Accounts receivable | 955 | -171 |
Inventories | -598 | -512 |
Other assets | -155 | 1,053 |
Accounts payable, accrued expenses and other long-term liabilities | 1,718 | 1,311 |
Net cash used in operating activities | -7,786 | -5,147 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -1,062 | -3,346 |
Costs paid to sell Portamedic | -411 | 0 |
Proceeds from the sale of Portamedic | 6,053 | 0 |
Proceeds from sale of equipment | 0 | 51 |
Net cash provided by (used in) investing activities | 4,580 | -3,295 |
Cash flows from financing activities: | ' | ' |
Cumulative borrowings under credit facility | 49,023 | 0 |
Cumulative payments under credit facility | -46,415 | 0 |
Reduction in capital lease obligations | -113 | -214 |
Proceeds related to the exercise of stock options | 14 | 0 |
Debt financing fees | -967 | -100 |
Net cash provided by (used in) financing activities | 1,542 | -314 |
Net decrease in cash and cash equivalents | -1,664 | -8,756 |
Cash and cash equivalents at beginning of period | 8,319 | 16,917 |
Cash and cash equivalents at end of period | 6,655 | 8,161 |
Supplemental disclosure of non-cash investing activities: | ' | ' |
Fixed assets vouchered but not paid | 556 | 570 |
Fixed assets acquired by capital lease | 74 | 0 |
Costs to sell Portamedic but not paid | 534 | 0 |
Supplemental disclosure of cash paid during period for: | ' | ' |
Income taxes | $52 | $40 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
Hooper Holmes, Inc. (“Hooper Holmes” or the "Company”) mobilizes a national network of health professionals to provide on-site health screenings, laboratory testing, risk assessment and sample collection services to wellness and disease management companies, insurance companies, employers, government organizations and academic institutions. The Company also conducts laboratory testing, assembles collection kits, conducts telephone interviews of life insurance applicants, compiles health histories, collects medical records and provides underwriting services to help life insurance companies evaluate underwriting risks. | |
As a provider of services to the health and insurance industries, the Company's business is subject to seasonality, with third quarter sales typically dropping below the other quarters due to a decline in activity during the summer months and fourth quarter sales typically the strongest quarter due to annual benefit renewal cycles. | |
The unaudited interim consolidated financial statements of the Company have been prepared in accordance with instructions for Form 10-Q and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's 2012 Annual Report on Form 10-K, filed with the SEC on April 1, 2013. | |
Financial statements prepared in accordance with U.S. GAAP require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and other disclosures. The financial information included herein is unaudited; however, such information reflects all adjustments that are, in the opinion of the Company's management, necessary for a fair statement of results for the interim periods presented. | |
The results of operations for the three and nine month periods ended September 30, 2013 and 2012 are not necessarily indicative of the results to be expected for any other interim period or the full year. See “Management's Discussion and Analysis of Financial Condition and Results of Operations” for additional information. | |
On September 30, 2013, the Company completed the sale of certain assets comprising its Portamedic service line. The Portamedic service line is accounted for as a discontinued operation in this Report. Accordingly, the assets and liabilities of Portamedic that were sold have been reclassified and are reported as assets and liabilities held for sale on the December 31, 2012 consolidated balance sheet. The operating results of Portamedic are segregated and reported as discontinued operations in the accompanying consolidated statements of operations for all periods presented. Certain costs presented within continuing operations in the financial statements, notably selling, general and administrative costs, may not be indicative of costs going forward because those costs have historically been shared among service lines and the continuing operations have been and are being restructured. There is no guarantee that costs allocated to Portamedic and included in discontinued operations will be eliminated in future periods. For further discussion on Discontinued Operations, please see Note 6. |
Liquidity
Liquidity | 9 Months Ended |
Sep. 30, 2013 | |
Liquidity [Abstract] | ' |
Liquidity | ' |
Liquidity | |
For the nine month periods ended September 30, 2013 and 2012, the Company incurred losses from continuing operations of $8.2 million and $5.5 million, respectively. Restructuring charges are included in results for each of the three and nine month periods ended September 30, 2013 and 2012. The Company has managed its liquidity through a series of cost reduction and accounts receivable collection initiatives, by obtaining a new credit facility in February 2013 and the sale of Portamedic on September 30, 2013. | |
At September 30, 2013, the Company had $6.7 million in cash and cash equivalents and working capital of $9.4 million. The Company's net cash used in operating activities for the nine month periods ended September 30, 2013 and 2012 was $7.8 million and $5.1 million, respectively, and includes the cash flow impact of accounts receivable, accounts payable, and accrued expenses related to the Portamedic service line that were retained after the sale of Portamedic. For the nine month periods ended September 30, 2013 and 2012, the Company's capital expenditures totaled $1.1 million and $3.3 million, respectively. | |
On September 30, 2013, the Company completed the sale of its Portamedic service line to American Para Professional Systems, Inc. ("APPS", "Piston Acquisition Inc.", and/or "Piston"). The adjusted purchase price (the “Purchase Price”) was approximately $8.1 million in cash, adjusted from $8.4 million at announcement due to changes in working capital, of which $2.0 million (the “Holdback Amount”) was held back by Piston as security for the Company’s obligations and agreements between the Company and Piston (see note 6). | |
The first $1.0 million tranche of the Holdback Amount is expected to be received in early 2014, with the second approximately one year later. There cannot be any assurance that the Holdback Amount will be collected by the Company in full, however management currently expects to realize the amounts in full and has recorded receivables in other current assets and other assets totaling $2.0 million. | |
In the first quarter of 2013, the Company entered into a three year Loan and Security Agreement, amended as of March 28, 2013 by the First Amendment (collectively, the “2013 Loan and Security Agreement”), with Keltic Financial Partners II, LP (“Keltic Financial”), the proceeds of which are to be used for working capital purposes and capital expenditures. The 2013 Loan and Security Agreement provides a revolving credit facility to the Company in an aggregate principal amount at any one time outstanding which does not exceed 85% of Eligible Receivables less any reserves established by Keltic Financial, at its sole discretion, provided that in no event can the aggregate amount of the revolving credit loans outstanding at any time exceed $10 million. Eligible Receivables do not include Heritage Labs receivables certain Hooper Holmes Services receivables, unbilled Portamedic and Health & Wellness receivables and other receivables deemed ineligible by Keltic Financial. | |
As of September 30, 2013 there were $2.6 million in borrowings outstanding under our 2013 Loan and Security Agreement and the Company's available borrowing capacity was $0.04 million based on September 30, 2013 Eligible Receivables and a $0.8 million reserve established by Keltic Financial. Because unbilled receivables are not considered Eligible Receivables, the Company's borrowing capacity can fluctuate in accordance with its monthly billing cycles. Given the timing of the Company's billing cycle and the borrowing base calculation method and timeline, available borrowing capacity increased to approximately $6.0 million by October 4, 2013 and the reserve established by Keltic Financial was increased back to $1.5 million from a temporary reduction to increase available borrowing at the end of September 2013. | |
The sale of the Portamedic service line, which accounted for approximately 60-75% of Eligible Receivables prior to September 30, 2013, will result in a future decrease in borrowing capacity, although Portamedic receivables were not sold in the transaction and will continue to be included as Eligible Receivables until collected, in accordance with the 2013 Loan and Security Agreement. The Company estimates Portamedic related receivables to be approximately $9 million as of September 30, 2013. We may request that other receivables qualify but we are not able to reliably estimate the future borrowing capacity. | |
The 2013 Loan and Security Agreement contains various covenants, including financial covenants which require the Company to achieve a minimum EBITDA amount (earnings before interest expense, taxes, depreciation and amortization) beginning with the twelve months ending June 30, 2014 as the first measurement date. The minimum EBIDTA required for the twelve months ending June 30, 2014 is negative $3.2 million. In addition, the Company has limitations on the maximum amount of unfunded capital expenditures for each fiscal year, beginning with the year ending December 31, 2013. | |
Certain costs presented in the financial statements, notably selling, general and administrative costs, may not be indicative of costs going forward because those costs have historically been shared among all service lines. For the nine months ended September 30, 2013, $7.4 million of such selling, general and administrative costs were allocated to discontinued operations. While the Company is attempting to reduce these costs for its continuing operations, there is no guarantee that costs allocated to Portamedic and included in discontinued operations will be eliminated or reduced in future periods. | |
Since the Company historically has not tracked accounts receivable, accounts payable and other accounts by service line, its service lines had customers and suppliers in common, and its continuing and discontinued operations shared certain selling, general and administrative services, the Company does not have reliable information for the historical impact of Portamedic on the Company’s cash flows. However, the Company feels that without the Portamedic service line and with selling, general and administrative cost reductions, cash flow from operations will improve. | |
In the fourth quarter of 2013, the Company began relocating its headquarters to Kansas and put its Basking Ridge real estate up for sale. Establishing a new team and transitioning functions to Kansas will take months and transition costs may be higher than expected. In addition, the sale of the Basking Ridge real estate may not occur when expected or for the amount expected. Any sale of the real estate is subject to consent by Keltic Financial. | |
The Company's Heritage Labs service line shared some customers with the Portamedic service line. While not all Heritage Labs life insurance samples originated from Portamedic exams, the sale of the Portamedic service line may have an impact on life insurance related lab volumes. | |
The Company's Health and Wellness business sells through wellness, disease management and insurance companies who ultimately have the relationship with the end customer. The Company's current services are aggregated with its partners' offerings to provide a total solution. As such, the Company's success is largely dependent on that of its partners. | |
Through the increased focus on the Health and Wellness sector, the Company believes it will be able to capitalize on the opportunities that exist in the Health and Wellness sector given the macro-economic focus on health care costs and improving the efficiency of health care delivery in the United States to grow revenue. | |
If the Company is not able to realize the benefits from the consolidation in Kansas and control the costs of transition, reduce its selling, general and administrative costs as it seeks to streamline operations and improve efficiency, grow the Health and Wellness service line and maintain Heritage Labs revenues as expected, and timely realize sufficient proceeds from the Holdback Amount and the sale of the Basking Ridge real estate, it may violate covenants or otherwise not be able to borrow under the 2013 Loan and Security Agreement. These and other factors could adversely affect the Company's liquidity and its ability to generate cash flow in the future. | |
Based on the Company's anticipated level of future revenues, sale of the Basking Ridge real estate, collection of the Holdback amount and restructuring initiatives, and the Company's existing cash, cash equivalents, working capital and credit facility, the Company believes it has sufficient funds to meet its cash needs through at least September 30, 2014. |
Loss_Per_Share
Loss Per Share | 9 Months Ended | |
Sep. 30, 2013 | ||
Earnings Per Share [Abstract] | ' | |
Loss Per Share | ' | |
(Loss) Earnings Per Share | ||
Outstanding stock options to purchase approximately 6,280,000 and 6,180,000 shares of the Company's common stock were excluded from the calculation of diluted loss per share for the three and nine month periods ended September 30, 2013, respectively, and approximately 5,565,000 and 5,543,000 shares for the three and nine month periods ended September 30, 2012, respectively, because their exercise prices exceeded the average market price of the Company's common stock for such periods and, therefore, were antidilutive. |
Impairment_of_Longlived_Assets
Impairment of Long-lived Assets | 9 Months Ended |
Sep. 30, 2013 | |
Asset Impairment Charges [Abstract] | ' |
Impairment of Long-lived Assets | ' |
Impairment of Long-lived Assets | |
During the nine month period ended September 30, 2013, the Company recorded an impairment charge in continuing operations of $0.2 million, which is included in impairment of long-lived assets in the accompanying consolidated statement of operations for the nine month period ended September 30, 2013. The charge of $0.2 million for the nine month period ended September 30, 2013 relates to the write-off of certain financial system software which will not be utilized in the future. | |
During the nine month periods ended September 30, 2013 and 2012, the Company recorded impairment of long-lived assets of Portamedic of $0.1 million and $0.2 million, respectively, which is included in the loss from discontinued operations, including income taxes. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Share-Based Compensation | ' | ||||||||||||
Share-Based Compensation | |||||||||||||
Employee Share-Based Compensation Plans - On May 29, 2008, the Company's shareholders approved the 2008 Omnibus Employee Incentive Plan (the “2008 Plan”) providing for the grant of stock options, stock appreciation rights, non-vested stock and performance shares. The 2008 Plan provides for the issuance of an aggregate of 5,000,000 shares. For the three and nine months ended September 30, 2013, the Company granted 325,000 options to purchase shares under the 2008 Plan. For the nine months ended September 30, 2012, 900,000 options for the purchase of shares were granted under the 2008 Plan as well as 205,332 shares of restricted stock granted to the Company's Chief Executive Officer as settlement for a discretionary bonus of $0.1 million. As of September 30, 2013, approximately 1,479,900 shares remain available for grant under the 2008 Plan. | |||||||||||||
On May 24, 2011, the Company's shareholders approved the 2011 Omnibus Employee Incentive Plan (the "2011 Plan") providing for the grant of stock options and non-vested stock awards. On May 29, 2013, the Company's shareholders approved an amendment and restatement of the 2011 Plan which increased the number of shares of the Company's common stock available for issuance from 1,500,000 shares to 3,500,000 shares (subject to adjustment as provided in the Amended and Restated Omnibus Plan). The 2011 Plan is to remain in effect until the earlier of (i) the 10th anniversary of the plan's original effective date (May 24, 2011), or (ii) the date all shares of stock available for issuance have been issued. During the three and nine months ended September 30, 2013, an aggregate of 2,000,000 options for the purchase of shares were granted under the 2011 Plan. During the three and nine months ended September 30, 2012, an aggregate of 1,225,000 options for the purchase of shares were granted under the 2011 Plan. As of September 30, 2013, approximately 1,092,500 shares remain available for grant under the 2011 Plan as amended. | |||||||||||||
Options awarded under the 2008 and 2011 Plans (as amended) are granted at fair value on the date of grant, are exercisable in accordance with a vesting schedule specified in the grant agreement, and have contractual lives of 10 years from the date of grant. Options to purchase an aggregate of 500,000 shares of the Company's stock granted to certain executives of the Company in December 2010 vested 50% on each of the first and second anniversaries of the grant. Options to purchase an aggregate of 325,000, 1,277,500 and 337,600 shares of the Company's stock granted to certain executives of the Company in September 2013, July 2012 and July 2011, respectively, vest one-third on each of the first, second and third anniversaries of the grant. Options to purchase 2,000,000 shares of the Company's stock granted to the Chief Executive Officer of the Company in September 2013, vest 25% upon receipt of the grant and 25% on the first, second and third anniversary of the grant. All other options granted by the Company vest 25% on each of the second through fifth anniversaries of the grant. | |||||||||||||
The fair value of the stock options granted during the three and nine month periods ended September 30, 2013 and 2012 was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Expected life (years) | 5.4 | 5.5 | 5.4 | 5.5 | |||||||||
Expected volatility | 89.60% | 92.40% | 89.6 | % | 92.40% | ||||||||
Expected dividend yield | —% | —% | —% | —% | |||||||||
Risk-free interest rate | 1.50% | 0.70% | 1.50% | 0.70% | |||||||||
Weighted average fair value of options granted during the period | $0.34 | $0.47 | $0.34 | $0.47 | |||||||||
The following table summarizes stock option activity for the nine month period ended September 30, 2013: | |||||||||||||
Number of Shares | Weighted Average Exercise Price Per Share | Weighted Average remaining Contractual Life (years) | Aggregate Intrinsic Value (in thousands) | ||||||||||
Outstanding balance at December 31, 2012 | 6,429,250 | $ | 1.28 | ||||||||||
Granted | 2,325,000 | 0.47 | |||||||||||
Exercised | (60,550 | ) | 0.24 | ||||||||||
Expired | (1,016,950 | ) | 2.67 | ||||||||||
Forfeited | (1,371,650 | ) | 0.63 | ||||||||||
Outstanding balance at September 30, 2013 | 6,305,100 | 0.91 | 7.7 | $4 | |||||||||
Options exercisable at September 30, 2013 | 3,526,850 | $ | 1.2 | 6.3 | $4 | ||||||||
The aggregate intrinsic value disclosed in the table above represents the difference between the Company's closing stock price on the last trading day of the quarter ended September 30, 2013 and the exercise price, multiplied by the number of in-the-money stock options. | |||||||||||||
Under the 2008 Plan, during the three and nine months ended September 30, 2013, an aggregate of 60,550 stock options valued at $0.24 were exercised. No stock options were exercised during the nine months ended September 30, 2012. Options for the purchase of an aggregate of 1,498,850 shares of common stock vested during the nine month period ended September 30, 2013, and the aggregate fair value at grant date of these options was $0.7 million. As of September 30, 2013, there was approximately $0.9 million of total unrecognized compensation cost related to stock options. The cost is expected to be recognized over a weighted average period of 2.5 years. | |||||||||||||
In July 2009, an aggregate of 500,000 shares of non-vested stock were granted under the 2008 Plan. The shares vest as follows: 25% after two years and 25% on each of the next three anniversary dates thereafter. As of September 30, 2013, an aggregate of 337,500 shares of such non-vested stock were forfeited and 150,000 were vested. In July 2011, an aggregate of 305,000 shares of non-vested stock were granted under the 2008 Plan. As of September 30, 2013, an aggregate of 112,500 shares of such non-vested stock were forfeited and 155,100 were vested. The shares vest as follows: 33% on each of the first and second anniversary dates and 34% on the third anniversary. As of September 30, 2013, there was approximately $0.03 million of total unrecognized compensation cost related to non-vested stock awards. The cost is expected to be recognized over a weighted average period of 0.8 years. | |||||||||||||
Employee Stock Purchase Plan - In February 2012, under the Stock Purchase Plan (2004) of Hooper Holmes, Inc. (the "2004 Plan"), purchase rights for approximately 273,000 shares of the Company's stock were granted to eligible participating employees with an aggregate grant date fair value of $0.05 million, based on the Black-Scholes pricing model. This offering period concluded in March 2013 and, in accordance with the 2004 Plan's automatic termination provision, no shares were issued. In February 2013, under the 2004 Plan, purchase rights for approximately 233,000 shares were granted with an aggregate fair value of $0.03 million, based on the Black-Scholes option pricing model. The February 2013 offering period will conclude in March 2014. On May 29, 2013, the Company's shareholders approved an amendment and restatement of the Employee Stock Purchase Plan (2004), to be effective January 1, 2014 (as amended and restated, the "2014 Plan"). The aggregate number of shares of the Company's common stock available for purchase under the 2014 Plan is 2,000,000. Unless terminated earlier by the Board of Directors, the 2014 Plan will terminate December 31, 2024. | |||||||||||||
Other Stock Awards - On May 30, 2007, the Company's shareholders approved the Hooper Holmes, Inc. 2007 Non-Employee Director Restricted Stock Plan (the “2007 Plan”), which provides for the automatic grant, on an annual basis for 10 years, of shares of the Company's stock to the Company's non-employee directors. The total number of shares that may be awarded under the 2007 Plan is 600,000. As of September 30, 2013, there remain available for grant approximately 360,000 shares under the 2007 Plan. Effective June 1, 2007, each non-employee member of the Board of Directors other than the non-executive chair receives 5,000 shares annually and the non-executive chair receives 10,000 shares annually of the Company's stock, with such shares vesting immediately upon issuance. The Company believes that the shares awarded under the 2007 Plan are “restricted securities”, as defined in SEC Rule 144 under the Securities Act of 1933, as amended (the "Securities Act"). The Company filed a Registration Statement on Form S-8 with respect to the 2007 Plan on April 16, 2008. The directors who receive shares under the 2007 Plan are "affiliates" as defined in Rule 144 under the Securities Act and thus remain subject to the applicable provisions of Rule 144. In addition, the terms of the awards (whether or not restricted) specify that the shares may not be sold or transferred by the recipient until the director ceases to serve on the Board or, if at that time the director has not served on the Board for at least four years, on the fourth anniversary of the date the director first became a Board member. During the nine months ended September 30, 2013 and 2012, shares awarded under the 2007 Plan totaled 30,000 and 30,000, respectively. | |||||||||||||
The Company recorded $0.4 million and $0.8 million of share-based compensation expense in selling, general and administrative expenses for the three and nine month periods ended September 30, 2013, respectively, and $0.2 million and $0.5 million for the three and nine month periods ended September 30, 2012, respectively, related to stock options, non-vested stock, restricted stock awards and the 2004 Plan. In connection with resignations of former members of management, the Company reversed previously recorded share-based compensation expense totaling $0.1 million and $0.2 million during the three and nine month periods ended September 30, 2013 and $0.0 million for the three and nine month periods ended September 30, 2012. The reversal was recorded in restructuring charges on the Company's consolidated statement of operations (See note 8). |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Discontinued Operations | ' | ||||||||||||
Discontinued Operations | |||||||||||||
On September 30, 2013, the Company completed the sale of certain assets comprising its Portamedic service line to Piston. Pursuant to the terms of the Asset Purchase Agreement, the Company sold assets associated with its Portamedic service line, including, among other things, fixed assets and intellectual property, to Piston, and Piston assumed certain specified liabilities (the “Portamedic Disposition”). The adjusted purchase price (the "Purchase Price") was approximately $8.1 million in cash, adjusted from $8.4 million at announcement due to changes in working capital, of which $2.0 million (the “Holdback Amount”) was held back by Piston as security for the Company’s obligations and agreements. | |||||||||||||
The Holdback Amount will be released as follows: within three business days after the date on which final closing adjustments for inventory and other current assets are determined and (the “Closeout Date”) (and after giving effect to any deductions from the Holdback Amount prior to such date), Piston will pay to the Company all amounts, if any, in excess of $1.0 million and the remaining $1.0 million of the Holdback Amount, less any deductions with respect to indemnification claims and any amounts in respect of any indemnification claims then in dispute, will be paid to the Company on the first anniversary of the Closeout Date. There cannot be any assurance that the Holdback Amount will be collected by the Company in full however, management currently expects to realize the amount in full and has recorded receivables in other current assets and other assets totaling $2.0 million. | |||||||||||||
The Company decided to sell its underperforming Portamedic service line and shift its focus towards the growth of its remaining health care service lines. In connection with the sale of Portamedic, the Company received $6.1 million of cash proceeds and incurred $0.9 million of financial advisory, legal and accounting fees, as of September 30, 2013. The Portamedic sale provides the Company with capital to invest in its Health and Wellness and Heritage Lab service lines. In addition, the Company retains the Portamedic accounts receivable and accounts payable, giving the Company over $9.4 million of working capital at September 30, 2013 to utilize in supporting wellness programs, clinical research and government studies. | |||||||||||||
The following summarizes the operating results of Portamedic and the gain on sale of Portamedic which are reported in discontinued operations in the accompanying consolidated statements of operations: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
30-Sep | 30-Sep | ||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||
Revenues | $ | 19,173 | $ | 21,371 | $ | 62,437 | $ | 72,077 | |||||
Loss from operations before income taxes | $ | (1,958 | ) | $ | (997 | ) | $ | (4,709 | ) | $ | (5,446 | ) | |
Gain on sale of Portamedic and subsidiary | $ | 3,543 | $ | — | $ | 3,618 | 65 | ||||||
Income taxes, which comprise margin tax expenses, relating to the operations of Portamedic were less than $0.1 million for each period | |||||||||||||
presented and there were no income taxes on the gain of the sale due to the availability of net operating loss carry forwards with a | |||||||||||||
full valuation allowance. | |||||||||||||
The assets and liabilities of Portamedic are presented separately under the captions “Assets held for sale” and “Liabilities held for sale,” respectively, in the accompanying consolidated balance sheet as of December 31, 2012 and consist of the following: | |||||||||||||
(in thousands) | 31-Dec-12 | ||||||||||||
Assets held for sale: | |||||||||||||
Inventories | 941 | ||||||||||||
Other current assets | 400 | ||||||||||||
Property, plant and equipment, net | 2,080 | ||||||||||||
Other assets | 225 | ||||||||||||
Total assets | $ | 3,646 | |||||||||||
Liabilities held for sale: | |||||||||||||
Deferred rent | 104 | ||||||||||||
Capital leases | 116 | ||||||||||||
Total liabilities | $ | 220 | |||||||||||
In June 2008, the Company sold substantially all of the assets and liabilities of its Claims Evaluation Division ("CED") operating segment. In connection with the sale of the CED, the Company released as the primary obligor for certain lease obligations acquired but remain secondarily liable in the event the buyer defaults. In September 2013, the Company reduced the reserve for this liability by $0.1 million and reported the corresponding gain in discontinued operations. At September 30, 2013, the Company maintained a liability of $0.1 million for this lease obligation. The guarantee is provided for the term of the lease, which expires in July 2015. As of September 30, 2013, the maximum potential amount of future payments under the guarantee is $0.1 million. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2013 | |
Inventory Disclosure [Abstract] | ' |
Inventories | ' |
Inventories | |
Included in inventories at September 30, 2013 and December 31, 2012 are $0.7 million and $0.4 million, respectively, of finished goods and $1.1 million and $0.9 million, respectively, of components. |
Restructuring_Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2013 | |
Restructuring Charges [Abstract] | ' |
Restructuring | ' |
Restructuring Charges | |
During the three and nine month periods ended September 30, 2013, the Company recorded restructuring charges in continuing operations totaling $0.4 million and $0.7 million, respectively. The restructuring charges for the three month period ended September 30, 2013 consisted of severance related to the resignation of the former CFO and other employee severance. The restructuring charges for the nine month period ended September 30, 2013 consisted of severance related to the resignation of the former CEO and CFO and other employee severance. | |
During the three and nine month periods ended September 30, 2012, the Company recorded restructuring charges totaling $0.0 million and $0.4 million, respectively. The restructuring charges consisted of employee severance. | |
At September 30, 2013, $1.7 million related to restructuring charges are recorded in accrued expenses and $0.1 million are recorded as other long-term liabilities in the accompanying consolidated balance sheet. These amounts include $1.2 million related to Portamedic that have been retained by the Company after the sale of Portamedic. These accruals include severance and branch closure expenses. |
Loan_and_Security_Agreements
Loan and Security Agreements | 9 Months Ended | |
Sep. 30, 2013 | ||
Debt Disclosure [Abstract] | ' | |
Loan and Security Agreements | ' | |
Loan and Security Agreement | ||
2013 Loan and Security Agreement | ||
As of February 28, 2013, in conjunction with the Company entering into the 2013 Loan and Security Agreement, the Company terminated the 2009 Loan and Security Agreement with TD Bank, N.A. During the three and nine months ended September 30, 2013, in connection with the 2013 Loan and Security Agreement, the Company incurred unused line fees of $0.04 million and $0.08 million respectively. During the three and nine months ended September 30, 2012 in connection with the 2009 Loan and Security Agreement, the Company incurred unused line fees of $0.00 million and $0.02 million, respectively. | ||
Proceeds from the 2013 Loan and Security Agreement are to be used for working capital purposes and capital expenditures. The 2013 Loan and Security Agreement provides a revolving credit facility to the Company in an aggregate principal amount at any time outstanding which does not exceed 85% of “Eligible Receivables” (as defined in the 2013 Loan and Security Agreement) less any reserves established by Keltic Financial, provided that in no event can the aggregate amount of the revolving credit loans at any time exceed $10 million. Eligible Receivables do not include Heritage Labs receivables, certain Hooper Holmes Services receivables, unbilled Portamedic and Health & Wellness receivables, and other receivables deemed ineligible by Keltic Financial. | ||
As of September 30, 2013 there were $2.6 million in borrowings outstanding under our 2013 Loan and Security Agreement, and the Company's available borrowing capacity was $0.04 million based on September 30, 2013 Eligible Receivables and a $0.8 million reserve established by Keltic Financial. Because unbilled receivables are not considered Eligible Receivables, the Company's borrowing capacity can fluctuate in accordance with its monthly billing cycles. Given the timing of the Company's billing cycle and the borrowing base calculation method and timeline, available borrowing capacity increased to approximately $6.0 million by October 4, 2013 and the reserve established by Keltic Financial was increased back to $1.5 million from a temporary reduction to increase available borrowing at the end of September 2013. | ||
As of March 28, 2013, the Company entered into the First Amendment to the 2013 Loan and Security Agreement. Under the First Amendment, the annual facility fee increased to 1.5% from 1.0% of the revolving credit limit of $10 million; the monthly collateral management fee increased to $2,500 per month from $1,500 per month; and the monthly collateral management fee increased to $5,000 per month from $3,000 per month if there is an occurrence or event of default. In addition, the early termination fee changed a) if prior to the first anniversary of the effective date, from 3% to 5% of the revolving credit limit; b) if after the first anniversary but before the second anniversary of the effective date, from 2% to 3% of the revolving credit; and c) if after the second anniversary but prior to the third anniversary of the effective date, from 1% to 2% of the revolving credit limit. In regard to the financial covenants, the first EBITDA measurement date changed from the six months ended June 30, 2013 to the twelve months ending June 30, 2014. The Company paid an amendment fee of $0.2 million. | ||
Interest on revolving credit loans is calculated based on the greatest of (i) the annualized prime rate plus 2.75%, (ii) the 90 day LIBOR rate plus 5.25%, and (iii) 6% per annum. In connection with the 2013 Loan and Security Agreement, the Company incurred a commitment fee of $0.1 million and other issue costs totaling $0.7 million. During the three and nine months ended September 30, 2013, in connection with the 2013 Loan and Security Agreement the Company incurred $0.04 million and $0.1 million in facility fees, respectively. | ||
The revolving credit loans are payable in full, together with all accrued interest and fees, on February 28, 2016. The 2013 Loan and Security Agreement provides for the prepayment of the entire outstanding balance of the revolving credit loans, however the Company would be required to pay an early termination fee as noted above. | ||
As security for the Company's payment and other obligations under the 2013 Loan and Security Agreement, the Company granted Keltic Financial a security interest in all existing and after-acquired property of the Company and its subsidiary guarantors, including its receivables (which are subject to a lockbox account arrangement), inventory, equipment and corporate headquarters. The aforementioned security interest is collectively referred to herein as the “collateral”. In addition, in connection with entering into the First Amendment to the 2013 Loan and Security Agreement as March 28, 2013, the Company granted to the lender a mortgage of the Company's headquarters building as additional security. | ||
Pursuant to the terms of the 2013 Loan and Security Agreement, Keltic Financial may establish one or more reserves at its reasonable discretion and, at its sole discretion, may establish reserves with respect to (a) any event which in Keltic Financial's reasonable determination, diminishes the value of any collateral or (b) any contingent liability of the Company. A reserve may reduce the aggregate amount of indebtedness that may be incurred under the 2013 Loan and Security Agreement. | ||
The 2013 Loan and Security Agreement contains covenants that, among other things, restrict the Company's ability, and that of its subsidiaries, to: | ||
• | pay any dividends or distributions on, or redeem or retire any shares of any class of its capital stock or other equity interests; | |
• | incur additional indebtedness or otherwise become liable for the indebtedness, except for transactions in the ordinary course of business; | |
• | permit a change of control of the board of directors and certain senior management positions of the Company without prior consent of Keltic Financial; | |
• | sell or otherwise dispose of any of the Company's assets, other than in the ordinary course of business; | |
• | create liens or encumbrances on the Company's assets; and | |
• | enter into transactions with any of its affiliates on other than an arm's-length or no less favorable basis. | |
Keltic Financial consented to the change in CEO and CFO that occurred during 2013 as well as the sale of Portamedic. There were no waiver or amendment fees paid or associated with these consents. | ||
The 2013 Loan and Security Agreement also contains financial covenants, which require the Company to achieve a minimum EBITDA amount (earnings before interest expense, income taxes, depreciation and amortization) with the twelve months ending June 30, 2014, as amended, as the first measurement date. In addition, the Company has limitations on the maximum amount of unfunded capital expenditures for each fiscal year, beginning with the year ending December 31, 2013. | ||
The failure of the Company or any subsidiary guarantor to comply with any of the covenants or the breach of any of its or their representations and warranties, contained in the 2013 Loan and Security Agreement, constitutes an event of default under the agreement. In addition, the 2013 Loan and Security Agreement provides that "Events of Default" include the occurrence or failure of any event or condition that, in Keltic Financial's sole judgment, could have a material adverse effect (i) on the business, operations, assets, management, liabilities or condition of the Company, (ii) in the value, collectability or salability of the collateral, or (iii) on the ability of the Company and its subsidiary guarantors to perform under the 2013 Loan and Security Agreement. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
The Company has employment retention or change in control agreements with certain executive officers that provide, in defined circumstances, for the payment of severance payments of 12 months base compensation, among other things. | |
On September 30, 2013, the Company completed the sale of certain assets comprising its Portamedic service line to Piston. The Asset Purchase Agreement also provides, among other things, that (1) if Piston incurs any losses relating to any governmental inquiry received by Piston or the Company within 18 months of the closing date, the Company will pay up to $100,000 for one half of such losses, (2) if Piston elects to pursue, prosecute, defend, settle, compromise, appeal or take other actions with respect to certain matters relating to matters disclosed by the Company to Piston pre-closing (“Pre-Closing Matters”), the Company will cooperate with Piston (including joining in any legal proceeding related to such matters) and pay up to $100,000 for one half of all losses in connection with such matters, and (3) Piston or its designees will make required payments for rents, charges, maintenance fees and all utility services to the Company associated with Piston’s or such designee’s occupancy of each premises that is the subject of a Company lease to be assumed by Piston or its designees, but the assignment of which was not completed by closing, until such time as the lease is duly assigned (or otherwise superseded by an agreement between Piston and the applicable landlord). The Company has agreed to bear all liability relating to the occupancy arrangements until they are transferred to Piston. With respect to Pre-Closing Matters, the Company also agreed that in the event Piston elects to pursue a claim relating to a Pre-Closing Matter and desires to add the Company as a plaintiff, Piston and the Company will cooperate to select counsel and to jointly prosecute such claim, but Piston will control such claim. | |
On July 11, 2003, the Company received a determination from the Internal Revenue Service that one individual the Company contracted with as an independent contractor should have been classified as an employee in 2002. This ruling also applied to any other individuals engaged by the Company under similar circumstances. The ruling stated that the Company may not be subject to adverse consequences as the Company may be entitled to relief under applicable tax laws (Section 530 of the Revenue Act of 1978). Management believes that the Company qualifies for relief under Section 530. To date, the Company has not received any further communication from the Internal Revenue Service. | |
In the past, some state agencies have claimed that the Company improperly classified its health professionals as independent contractors for purposes of state unemployment and/or worker's compensation tax laws and that the Company was therefore liable for taxes in arrears, or for penalties for failure to comply with their interpretation of the laws. There are no assurances that the Company will not be subject to similar claims in other states in the future. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2013 | |
Loss Contingency, Information about Litigation Matters [Abstract] | ' |
Litigation | ' |
Litigation | |
With respect to the complaint filed against the Company in U.S. District Court for the District of New Jersey on May 24, 2012 alleging that the Company failed to pay overtime compensation to a purported class of certain independent contractor examiners, preliminary motion practice and discovery is continuing. The Company has denied all of the allegations in the case and believes them to be without merit. | |
The Company is a party to a number of other legal actions arising in the ordinary course of its business. In the opinion of management, the Company has substantial legal defenses and/or insurance coverage with respect to all of its pending legal actions. Accordingly, none of these actions is expected to have a material adverse effect on the Company’s liquidity, its consolidated results of operations or its consolidated financial position. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company recorded tax expense of less than $0.01 million and $0.01 million in continuing operations for the three and nine month periods ended September 30, 2013, respectively, reflecting a state tax liability to one state. For the three and nine month periods ended September 30, 2012, the Company recorded tax expense of less than $0.01 million and $0.01 million, respectively, reflecting a state tax liability to one state. No amounts were recorded for unrecognized tax benefits or for the payment of interest and penalties during the three and nine month periods ended September 30, 2013 and 2012. No federal or state tax benefits were recorded relating to the current year loss, as the Company continues to believe that a full valuation allowance is required on its net deferred tax assets. | |
In July 2008, the Company received notification from the Internal Revenue Service that it had completed its audits of the Company's tax returns for the years 2001 through 2006 with no adjustments. An examination of the Company's 2011 federal income tax return is currently underway. State income tax returns for the year 2008 and forward are subject to examination. | |
As of September 30, 2013, the Company has U.S. federal and state net operating loss carryforwards in excess of $100 million each. The net operating loss carryforwards, if unutilized, will expire in the years 2013 through 2033. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
The unaudited interim consolidated financial statements of the Company have been prepared in accordance with instructions for Form 10-Q and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's 2012 Annual Report on Form 10-K, filed with the SEC on April 1, 2013. | |
Financial statements prepared in accordance with U.S. GAAP require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and other disclosures. The financial information included herein is unaudited; however, such information reflects all adjustments that are, in the opinion of the Company's management, necessary for a fair statement of results for the interim periods presented. | |
The results of operations for the three and nine month periods ended September 30, 2013 and 2012 are not necessarily indicative of the results to be expected for any other interim period or the full year. See “Management's Discussion and Analysis of Financial Condition and Results of Operations” for additional information. | |
Discontinued Operations | ' |
On September 30, 2013, the Company completed the sale of certain assets comprising its Portamedic service line. The Portamedic service line is accounted for as a discontinued operation in this Report. Accordingly, the assets and liabilities of Portamedic that were sold have been reclassified and are reported as assets and liabilities held for sale on the December 31, 2012 consolidated balance sheet. The operating results of Portamedic are segregated and reported as discontinued operations in the accompanying consolidated statements of operations for all periods presented. Certain costs presented within continuing operations in the financial statements, notably selling, general and administrative costs, may not be indicative of costs going forward because those costs have historically been shared among service lines and the continuing operations have been and are being restructured. There is no guarantee that costs allocated to Portamedic and included in discontinued operations will be eliminated in future periods. For further discussion on Discontinued Operations, please see Note 6. |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||
The following table summarizes stock option activity for the nine month period ended September 30, 2013: | |||||||||||||
Number of Shares | Weighted Average Exercise Price Per Share | Weighted Average remaining Contractual Life (years) | Aggregate Intrinsic Value (in thousands) | ||||||||||
Outstanding balance at December 31, 2012 | 6,429,250 | $ | 1.28 | ||||||||||
Granted | 2,325,000 | 0.47 | |||||||||||
Exercised | (60,550 | ) | 0.24 | ||||||||||
Expired | (1,016,950 | ) | 2.67 | ||||||||||
Forfeited | (1,371,650 | ) | 0.63 | ||||||||||
Outstanding balance at September 30, 2013 | 6,305,100 | 0.91 | 7.7 | $4 | |||||||||
Options exercisable at September 30, 2013 | 3,526,850 | $ | 1.2 | 6.3 | $4 | ||||||||
Schedule of Valuation Assumptions | ' | ||||||||||||
The fair value of the stock options granted during the three and nine month periods ended September 30, 2013 and 2012 was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Expected life (years) | 5.4 | 5.5 | 5.4 | 5.5 | |||||||||
Expected volatility | 89.60% | 92.40% | 89.6 | % | 92.40% | ||||||||
Expected dividend yield | —% | —% | —% | —% | |||||||||
Risk-free interest rate | 1.50% | 0.70% | 1.50% | 0.70% | |||||||||
Weighted average fair value of options granted during the period | $0.34 | $0.47 | $0.34 | $0.47 |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Schedule of Discontinued Operations | ' | ||||||||||||
The following summarizes the operating results of Portamedic and the gain on sale of Portamedic which are reported in discontinued operations in the accompanying consolidated statements of operations: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
30-Sep | 30-Sep | ||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||
Revenues | $ | 19,173 | $ | 21,371 | $ | 62,437 | $ | 72,077 | |||||
Loss from operations before income taxes | $ | (1,958 | ) | $ | (997 | ) | $ | (4,709 | ) | $ | (5,446 | ) | |
Gain on sale of Portamedic and subsidiary | $ | 3,543 | $ | — | $ | 3,618 | 65 | ||||||
Income taxes, which comprise margin tax expenses, relating to the operations of Portamedic were less than $0.1 million for each period | |||||||||||||
presented and there were no income taxes on the gain of the sale due to the availability of net operating loss carry forwards with a | |||||||||||||
full valuation allowance. | |||||||||||||
The assets and liabilities of Portamedic are presented separately under the captions “Assets held for sale” and “Liabilities held for sale,” respectively, in the accompanying consolidated balance sheet as of December 31, 2012 and consist of the following: | |||||||||||||
(in thousands) | 31-Dec-12 | ||||||||||||
Assets held for sale: | |||||||||||||
Inventories | 941 | ||||||||||||
Other current assets | 400 | ||||||||||||
Property, plant and equipment, net | 2,080 | ||||||||||||
Other assets | 225 | ||||||||||||
Total assets | $ | 3,646 | |||||||||||
Liabilities held for sale: | |||||||||||||
Deferred rent | 104 | ||||||||||||
Capital leases | 116 | ||||||||||||
Total liabilities | $ | 220 | |||||||||||
Liquidity_Details
Liquidity (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 04, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Portamedic Service Line [Member] | Portamedic Service Line [Member] | Minimum [Member] | Maximum [Member] | ||||||||
Portamedic Service Line [Member] | Portamedic Service Line [Member] | ||||||||||
Liquidity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss from continuing operations | ($3,291,000) | ($1,189,000) | ($8,158,000) | ($5,456,000) | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 6,655,000 | 8,161,000 | 6,655,000 | 8,161,000 | ' | 8,319,000 | 16,917,000 | ' | ' | ' | ' |
Working capital | ' | ' | ' | ' | ' | ' | ' | ' | 9,400,000 | ' | ' |
Borrowings outstanding under Loan and Security Agreement | 2,608,000 | ' | 2,608,000 | ' | ' | 0 | ' | ' | ' | ' | ' |
Remaining borrowing capacity under Loan and Security Agreement | 40,000 | ' | 40,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash used in operating activities of continuing operations | ' | ' | -7,786,000 | -5,147,000 | ' | ' | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | -1,062,000 | -3,346,000 | ' | ' | ' | ' | ' | ' | ' |
Term of loan and security agreement | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Loan maximum defined, based on eligible receivables | 85.00% | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity under Loan and Security Agreement | 10,000,000 | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional borrowing availability under Loan and Security Agreement | 6,000,000 | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Loan maximum defined, based on eligible receivables, reserve | 800,000 | ' | 800,000 | ' | 1,500,000 | ' | ' | ' | ' | ' | ' |
EBITDA twelve month requirement | 3,200,000 | ' | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from the sale of Portamedic | ' | ' | 6,053,000 | 0 | ' | ' | ' | 8,100,000 | 6,100,000 | ' | ' |
Consideration amount | ' | ' | ' | ' | ' | ' | ' | 8,400,000 | 8,400,000 | ' | ' |
Holdback amount | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 2,000,000 | ' | ' |
Holdback release, business days after closing | ' | ' | ' | ' | ' | ' | ' | '3 days | ' | ' | ' |
Holdback release, amounts paid threshold | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 1,000,000 | ' | ' |
Holdback release, amount less deductions for indemnification claims | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 1,000,000 | ' | ' |
Holdback receivable recorded | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 2,000,000 | ' | ' |
Eligible receivables generated, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | 75.00% |
Eligible receivables generated | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' |
Selling, general and administrative expenses | $5,002,000 | $4,655,000 | $15,372,000 | $15,054,000 | ' | ' | ' | ' | $7,400,000 | ' | ' |
Loss_Per_Share_Details
Loss Per Share (Details) (Stock Options [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of EPS (in shares) | 6,280,000 | 5,565,000 | 6,180,000 | 5,543,000 |
Impairment_of_Longlived_Assets1
Impairment of Long-lived Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Impairment of Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Impairment of long-lived assets | $0 | $0 | $212 | $0 |
Portamedic Service Line [Member] | ' | ' | ' | ' |
Impairment of Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Impairment of long-lived assets | ' | ' | 100 | 200 |
Financial System Software [Member] | ' | ' | ' | ' |
Impairment of Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Impairment of long-lived assets | ' | ' | $200 | ' |
ShareBased_Compensation_Employ
Share-Based Compensation Employee Share-Based Compensation Plans (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 31, 2012 | Sep. 30, 2013 | Jul. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 |
2008 Plan [Member] | 2008 Plan [Member] | 2008 Plan [Member] | 2008 Plan [Member] | 2011 Plan [Member] | 2011 Plan [Member] | 2011 Plan [Member] | 2011 Plan [Member] | Amended and Restated 2011 Plan [Member] | December 2010 Stock Option Award [Member] | December 2010 Stock Option Award [Member] | September 2013 Stock Option Award [Member] | July 2012 Stock Option Award [Member] | July 2012 Stock Option Award [Member] | July 2011 Stock Option Award [Member] | July 2011 Stock Option Award [Member] | All Other Stock Option Awards [Member] | ||
Number of shares authorized under the plan (in shares) | ' | 5,000,000 | ' | 5,000,000 | ' | 1,500,000 | ' | 1,500,000 | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining shares available for grant under the plan (in shares) | ' | 1,479,900 | ' | 1,479,900 | ' | ' | ' | ' | ' | 1,092,500 | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual life of stock options and other awards under share-based compensation plans | ' | ' | ' | '10 years | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted (in shares) | 2,325,000 | 325,000 | 900,000 | 325,000 | 900,000 | 2,000,000 | 1,225,000 | 2,000,000 | 1,225,000 | ' | 500,000 | ' | 325,000 | 1,277,500 | ' | 337,600 | ' | ' |
Restricted stock granted to CEO as settlement for discretionary bonus (in shares) | ' | ' | ' | 205,332 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock granted to CEO as settlement for discretionary bonus | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option Vesting Schedule | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting percentage, year one | ' | ' | ' | ' | ' | 25.00% | ' | 25.00% | ' | ' | ' | 50.00% | 33.00% | ' | 33.00% | ' | 33.00% | 0.00% |
Vesting percentage, year two | ' | ' | ' | ' | ' | 25.00% | ' | 25.00% | ' | ' | ' | 50.00% | 33.00% | ' | 33.00% | ' | 33.00% | 25.00% |
Vesting percentage, year three | ' | ' | ' | ' | ' | 25.00% | ' | 25.00% | ' | ' | ' | ' | 34.00% | ' | 34.00% | ' | 34.00% | 25.00% |
Vesting percentage, year four | ' | ' | ' | ' | ' | 25.00% | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% |
Vesting percentage, year five | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% |
ShareBased_Compensation_Stock_
Share-Based Compensation Stock Option Valuation Assumptions (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Expected life (years) | '5 years 4 months 24 days | '5 years 6 months | '5 years 4 months 24 days | '5 years 6 months |
Expected volatility | 89.60% | 92.40% | 89.60% | 92.40% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.50% | 0.70% | 1.50% | 0.70% |
Weighted average fair value of options granted during the period | $0.34 | $0.47 | $0.34 | $0.47 |
ShareBased_Compensation_Option
Share-Based Compensation Option Roll-Forward (Details) (USD $) | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Stock Option Activity [Roll Forward] | ' | ' |
Outstanding balance (options) at December 31, 2012 | 6,429,250 | ' |
Options granted (in shares) | 2,325,000 | ' |
Exercised (options) | -60,550 | 0 |
Expired (options) | -1,016,950 | ' |
Forfeited (options) | -1,371,650 | ' |
Outstanding balance (options) at March 31, 2013 | 6,305,100 | ' |
Outstanding balance (weighted average exercise price) at December 31, 2012 | $1,280 | ' |
Granted (weighted average exercise price) | $0.47 | ' |
Exercised (weighted averaged exercise price) | $0.24 | ' |
Expired (weighted average exercise price) | $2.67 | ' |
Forfeited (weighted average exercise price) | $0.63 | ' |
Outstanding balance (weighted average exercise price) at March 31, 2013 | $0.91 | ' |
Weighted Average Remaining Contractual Life, options outstanding | '7 years 8 months 12 days | ' |
Aggregate Intrinsic Value (in thousands), options outstanding | $4 | ' |
Number of options exercisable at March 31, 2013 | 3,526,850 | ' |
Weighted average exercise price of options exercisable at March 31, 2013 | $1.20 | ' |
Weighted Average Remaining Contractual Life, options exercisable | '6 years 3 months 18 days | ' |
Aggregate Intrinsic Value (in thousands), options exercisable | $4 | ' |
ShareBased_Compensation_Award_
Share-Based Compensation Award Activity (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 27, 2013 | Feb. 29, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 31, 2009 | Sep. 30, 2013 | Jul. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 |
Director Stock Plan [Member] | Director Stock Plan [Member] | Amended and Restated 2014 Plan [Member] | Stock Options [Member] | July 2009 Non-vested Stock Award [Member] | July 2009 Non-vested Stock Award [Member] | July 2011 Non-vested Stock Award [Member] | July 2011 Non-vested Stock Award [Member] | Non-Vested Stock Award [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (options) | ' | ' | -60,550 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (weighted averaged exercise price) | ' | ' | $0.24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vested in period | ' | ' | 1,498,850 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate fair value of options vested in period | ' | ' | $0.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.9 | ' | ' | ' | ' | ' |
Weighted average period for recognition of compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 6 months | ' | ' | ' | ' | '9 months 18 days |
Compensation expense allocated to selling, general and administrative expenses | 0.4 | 0.2 | 0.8 | 0.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reversal of previously recorded share-based compensation expense | 0.1 | 0 | 0.2 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Non-vested Stock Awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate shares granted | ' | ' | ' | ' | ' | ' | 30,000 | 30,000 | ' | ' | 500,000 | ' | 305,000 | ' | ' |
Aggregate shares of non-vested stock forfeited | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 337,500 | ' | 112,500 | ' |
Aggregate shares that vested in the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | ' | 155,100 | ' |
Vesting Schedule for Equity Grants Other than Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting percentage, year one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | 33.00% | ' |
Vesting percentage, year two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | 33.00% | ' |
Vesting percentage, year three | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | 34.00% | ' |
Vesting percentage, year four | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' |
Vesting percentage, year five | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' |
ESPP | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Allocated During Period, Shares, Employee Stock Purchase Plan | ' | ' | ' | ' | 233,000 | 273,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Grant-Date Fair Value, Employee Stock Purchase Plan | ' | ' | ' | ' | $0.03 | $0.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Stock Awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term over which grants will occur | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized under the plan (in shares) | ' | ' | ' | ' | ' | ' | 600,000 | ' | 2,000,000 | ' | ' | ' | ' | ' | ' |
Remaining shares available for grant under the plan (in shares) | ' | ' | ' | ' | ' | ' | 360,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares awarded annually to non-employee board members other than the non-executive chair | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares awarded annually to non-executive chair of the board of directors | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate shares granted | ' | ' | ' | ' | ' | ' | 30,000 | 30,000 | ' | ' | 500,000 | ' | 305,000 | ' | ' |
Discontinued_Operations_Narrat
Discontinued Operations Narrative (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Portamedic Service Line [Member] | Portamedic Service Line [Member] | Portamedic Service Line [Member] | Portamedic Service Line [Member] | Portamedic Service Line [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration amount | ' | ' | ' | ' | ' | $8,400,000 | $8,400,000 | ' | $8,400,000 | ' |
Proceeds from the sale of Portamedic | ' | ' | ' | 6,053,000 | 0 | 8,100,000 | ' | ' | 6,100,000 | ' |
Holdback amount | ' | ' | ' | ' | ' | 2,000,000 | 2,000,000 | ' | 2,000,000 | ' |
Holdback release, business days after closing | ' | ' | ' | ' | ' | '3 days | ' | ' | ' | ' |
Holdback release, amounts paid threshold | ' | ' | ' | ' | ' | 1,000,000 | 1,000,000 | ' | 1,000,000 | ' |
Holdback release, amount less deductions for indemnification claims | ' | ' | ' | ' | ' | 1,000,000 | 1,000,000 | ' | 1,000,000 | ' |
Holdback receivable recorded | ' | ' | ' | ' | ' | 2,000,000 | 2,000,000 | ' | 2,000,000 | ' |
Divestiture of business related costs | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' |
Working capital | ' | ' | ' | ' | ' | ' | ' | ' | 9,400,000 | ' |
Loss from discontinued operations, net of tax | ' | ' | ' | ' | ' | ' | -1,958,000 | -997,000 | -4,709,000 | -5,446,000 |
Decrease in reserve for lease obligation | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease obligations | ' | 100,000 | ' | 100,000 | ' | ' | ' | ' | ' | ' |
Lease obligations future minimum payments due | ' | 100,000 | ' | 100,000 | ' | ' | ' | ' | ' | ' |
Gain on sale of Portamedic and subsidiary | ' | $3,543,000 | $0 | $3,618,000 | $65,000 | ' | ' | ' | ' | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Gain on sale of Portamedic and subsidiary | $3,543,000 | $0 | $3,618,000 | $65,000 | ' |
Portamedic Service Line [Member] | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Revenues | 19,173,000 | 21,371,000 | 62,437,000 | 72,077,000 | ' |
Loss from operations before income taxes | -1,958,000 | -997,000 | -4,709,000 | -5,446,000 | ' |
Maximum tax effect of discontinued operation | 100,000 | 100,000 | 100,000 | 100,000 | ' |
Assets held for sale: | ' | ' | ' | ' | ' |
Inventories | ' | ' | ' | ' | 941,000 |
Other current assets | ' | ' | ' | ' | 400,000 |
Property, plant and equipment, net | ' | ' | ' | ' | 2,080,000 |
Other assets | ' | ' | ' | ' | 225,000 |
Total assets | ' | ' | ' | ' | 3,646,000 |
Liabilities held for sale: | ' | ' | ' | ' | ' |
Deferred rent | ' | ' | ' | ' | 104,000 |
Capital leases | ' | ' | ' | ' | 116,000 |
Total liabilities | ' | ' | ' | ' | $220,000 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $0.70 | $0.40 |
Components | $1.10 | $0.90 |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges related to severance | $362,000 | $0 | $671,000 | $445,000 |
Restructuring reserve, current | 1,700,000 | ' | 1,700,000 | ' |
Restructuring reserve, noncurrent | 100,000 | ' | 100,000 | ' |
Other Restructuring [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring reserve, noncurrent | $1,200,000 | ' | $1,200,000 | ' |
Loan_and_Security_Agreements_D
Loan and Security Agreements (Details) (USD $) | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | Oct. 04, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Prime rate [Member] | LIBOR 90 day rate [Member] | Prior to first anniversary [Member] | Prior to second anniversary [Member] | Prior to third anniversary [Member] | First amendment [Member] | First amendment [Member] | First amendment [Member] | First amendment [Member] | 2013 Loan and Security Agreement [Member] | 2013 Loan and Security Agreement [Member] | 2013 Loan and Security Agreement [Member] | 2013 Loan and Security Agreement [Member] | ||||
Prior to first anniversary [Member] | Prior to second anniversary [Member] | Prior to third anniversary [Member] | ||||||||||||||
Loan and Security Agreements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unused line fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40,000 | $0 | $80,000 | $20,000 |
Loan maximum defined, based on eligible receivables | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity under Loan and Security Agreement | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional borrowing availability under Loan and Security Agreement | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings outstanding under Loan and Security Agreement | 2,608,000 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining borrowing capacity under Loan and Security Agreement | 40,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan maximum defined, based on eligible receivables, reserve | 800,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Facility fee, percentage | 1.00% | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' |
Monthly collateral fee | 1,500 | ' | ' | ' | ' | ' | ' | ' | 2,500 | ' | ' | ' | ' | ' | ' | ' |
Monthly collertal fee (upon default) | 3,000 | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' |
Credit facility - early termination fee | ' | ' | ' | ' | ' | 3.00% | 2.00% | 1.00% | ' | 5.00% | 3.00% | 2.00% | ' | ' | ' | ' |
Amendment fee | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' |
Spread on variable rate | ' | ' | ' | 2.75% | 5.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, stated percentage | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other issue costs | $700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Term of possible loss contingency | '18 months |
Estimate of possible loss maximum | $100,000 |
Employment agreements, contract term | '12 months |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Income tax expense | $5,000 | $4,000 | $14,000 | $11,000 |
Internal Revenue Service (IRS) [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Operating loss carryforwards, subject to expiration | 100,000,000 | ' | 100,000,000 | ' |
State and Local Jurisdiction [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Income tax expense | ' | $10,000 | ' | ' |