Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Dec. 31, 2013 | Feb. 06, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'CYANOTECH CORP | ' |
Entity Central Index Key | '0000768408 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 5,486,438 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $2,510 | $4,364 |
Accounts receivable, net of allowance for doubtful accounts of $6 at December 31, 2013 and $6 at March 31, 2013 | 4,502 | 3,766 |
Inventories, net | 5,230 | 3,688 |
Deferred tax assets | 110 | 110 |
Prepaid expenses and other current assets | 426 | 263 |
Total current assets | 12,778 | 12,191 |
Equipment and leasehold improvements, net | 11,366 | 8,835 |
Restricted cash | 1,851 | 3,360 |
Deferred tax assets | 3,034 | 3,429 |
Other assets | 843 | 772 |
Total assets | 29,872 | 28,587 |
Current liabilities: | ' | ' |
Current maturities of long-term debt | 202 | 128 |
Customer deposits | 60 | 33 |
Accounts payable | 2,437 | 1,852 |
Accrued expenses | 831 | 872 |
Total current liabilities | 3,530 | 2,885 |
Long-term debt, excluding current maturities | 5,303 | 5,454 |
Deferred rent | 18 | 21 |
Total liabilities | 8,851 | 8,360 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock of $0.02 par value, shares authorized 50,000,000; 5,486,438 shares issued and outstanding at December 31, 2013 and 5,463,938 shares at March 31, 2013 | 110 | 109 |
Additional paid-in capital | 29,698 | 29,077 |
Accumulated deficit | -8,787 | -8,959 |
Total stockholders' equity | 21,021 | 20,227 |
Total liabilities and stockholders' equity | $29,872 | $28,587 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $6 | $6 |
Common stock, par value (in dollars per share) | $0.02 | $0.02 |
Common stock, authorized shares | 50,000,000 | 50,000,000 |
Common stock, issued shares | 5,486,438 | 5,463,938 |
Common stock, outstanding shares | 5,486,438 | 5,463,938 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' |
NET SALES | $7,438 | $7,242 | $21,646 | $20,684 |
COST OF SALES | 4,293 | 4,377 | 12,656 | 12,433 |
Gross profit | 3,145 | 2,865 | 8,990 | 8,251 |
OPERATING EXPENSES: | ' | ' | ' | ' |
General and administrative | 1,685 | 1,175 | 4,502 | 3,608 |
Sales and marketing | 1,011 | 1,004 | 3,195 | 2,722 |
Research and development | 108 | 52 | 394 | 183 |
Loss on disposal of equipment and leasehold improvements | 19 | 1 | 45 | 36 |
Total operating expenses | 2,823 | 2,232 | 8,136 | 6,549 |
Income from operations | 322 | 633 | 854 | 1,702 |
OTHER EXPENSE: | ' | ' | ' | ' |
Loss on extinguishment of debt | ' | ' | ' | -51 |
Interest expense, net | -29 | -14 | -90 | -43 |
Total other expense, net | -29 | -14 | -90 | -94 |
Income before provision for income taxes | 293 | 619 | 764 | 1,608 |
PROVISION FOR INCOME TAXES | -257 | -12 | -592 | -32 |
NET INCOME | $36 | $607 | $172 | $1,576 |
NET INCOME PER SHARE: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.01 | $0.11 | $0.03 | $0.29 |
Diluted (in dollars per share) | $0.01 | $0.11 | $0.03 | $0.28 |
SHARES USED IN CALCULATION OF NET INCOME PER SHARE: | ' | ' | ' | ' |
Basic (in shares) | 5,486 | 5,464 | 5,475 | 5,451 |
Diluted (in shares) | 5,659 | 5,617 | 5,656 | 5,692 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $172 | $1,576 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Loss on extinguishment of debt | ' | 51 |
Loss on disposal of equipment and leasehold improvements | 45 | 36 |
Depreciation and amortization | 784 | 619 |
Amortization of debt issue costs and other assets | 32 | 84 |
Share based compensation expense | 589 | 563 |
Reduction of allowance for doubtful accounts | ' | -10 |
Reduction of inventory reserve | -3 | ' |
Deferred income tax provision | 395 | ' |
Net (increase) decrease in assets: | ' | ' |
Accounts receivable | -736 | -1,859 |
Inventories | -1,539 | 60 |
Prepaid expenses and other assets | -266 | -95 |
Net increase (decrease) in liabilities: | ' | ' |
Customer deposits | 27 | -7 |
Accounts payable | 585 | 230 |
Accrued expenses | -41 | -559 |
Deferred rent | -3 | 4 |
Net cash provided by operating activities | 42 | 692 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Decrease (increase) in restricted cash | 1,509 | -281 |
Investment in equipment and leasehold improvements | -3,362 | -3,292 |
Net cash used in investing activities | -1,853 | -3,573 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from long term debt, net of costs | ' | 2,281 |
Principal payments on long-term debt | -78 | -616 |
Payments for debt issuance costs | ' | -259 |
Proceeds from stock options exercised | 35 | 23 |
Net cash (used in) provided by financing activities | -43 | 1,429 |
Net decrease in cash and cash equivalents | -1,854 | -1,452 |
Cash and cash equivalents at beginning of period | 4,364 | 5,061 |
Cash and cash equivalents at end of period | 2,510 | 3,609 |
Cash paid during the period for: | ' | ' |
Interest | 229 | 98 |
Income taxes | $118 | $57 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Dec. 31, 2013 | |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | ' |
1. BASIS OF PRESENTATION | |
The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information pursuant to the instructions to Form 10-Q and Regulation S-X of the Securities and Exchange Commission (SEC). These interim condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to present fairly the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, and Condensed Consolidated Statements of Cash Flows for the periods presented in accordance with GAAP. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The Condensed Consolidated Balance Sheet as of March 31, 2013 was derived from the audited financial statements. These condensed consolidated financial statements and notes should be read in conjunction with the Company’s consolidated financial statements for the year ended March 31, 2013, contained in the Company’s annual report on Form 10-K as filed with the SEC on June 24, 2013. | |
The accompanying consolidated condensed financial statements include the accounts of Cyanotech Corporation and its wholly owned subsidiary, Nutrex Hawaii, Inc. (“Nutrex Hawaii” or “Nutrex”, collectively the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the periods reported. Management reviews these estimates and assumptions periodically and reflects the effect of revisions in the period that they are determined to be necessary. Actual results could differ from those estimates and assumptions. | |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update No. 2013-11 on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or tax credit carryforward, exists. Under the guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The updated guidance is effective for fiscal years and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Financial Statements. |
INVENTORIES
INVENTORIES | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
INVENTORIES | ' | |||||||
INVENTORIES | ' | |||||||
2. INVENTORIES | ||||||||
Inventories are stated at the lower of cost or market. Cost is determined by the first-in, first-out method. Inventories consist of the following: | ||||||||
December 31, 2013 | March 31, 2013 | |||||||
(in thousands) | ||||||||
Raw materials | $ | 915 | $ | 932 | ||||
Work in process | 303 | 330 | ||||||
Finished goods(1) | 3,812 | 2,164 | ||||||
Supplies | 200 | 262 | ||||||
$ | 5,230 | $ | 3,688 | |||||
(1) Net of reserve for obsolescence of $6,000 and $9,000 at December 31, 2013 and March 31, 2013, respectively. | ||||||||
The Company recognizes abnormal production costs, including fixed cost variances from normal production capacity, as an expense in the period incurred. Non inventoriable fixed costs of $44,000 were charged to cost of sales during the three months ended December 31, 2013. There were no abnormal production costs charged to cost of sales for the three and nine months ended December 31, 2013. Approximately $161,000 and $875,000 of abnormal production costs were charged to cost of sales for the three and nine months ended December 31, 2012. |
EQUIPMENT_AND_LEASEHOLD_IMPROV
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | ' | |||||||
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | ' | |||||||
3. EQUIPMENT AND LEASEHOLD IMPROVEMENTS | ||||||||
Equipment and leasehold improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives for equipment and furniture and fixtures, or the shorter of the land lease term or estimated useful lives for leasehold improvements as follows: | ||||||||
Equipment | 3 to 10 years | |||||||
Furniture and fixtures | 3 to 7 years | |||||||
Leasehold improvements | 10 to 25 years | |||||||
Equipment and leasehold improvements consist of the following: | ||||||||
December 31, 2013 | March 31, 2013 | |||||||
(in thousands) | ||||||||
Equipment | $ | 8,757 | $ | 7,455 | ||||
Leasehold improvements | 9,525 | 8,313 | ||||||
Furniture and fixtures | 288 | 208 | ||||||
18,570 | 15,976 | |||||||
Less accumulated depreciation and amortization | (11,122 | ) | (10,496 | ) | ||||
Construction-in-progress | 3,918 | 3,355 | ||||||
Equipment and leasehold improvements, net | $ | 11,366 | $ | 8,835 | ||||
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amount to forecasted undiscounted future cash flows expected to be generated by the asset. If the carrying amount exceeds its estimated future cash flows, then an impairment charge is recognized to the extent that the carrying amount exceeds the asset’s fair value. Management has determined no asset impairment existed as of December 31, 2013. The Company recognized a loss on disposal of assets in the amount of $19,000 and $45,000 for the three and nine months ended December 31, 2013, respectively. The Company recognized a loss on disposal of assets in the amount of $1,000 and $36,000 for the three and nine months ended December 31, 2012, respectively. | ||||||||
The Company has capitalized $50,000 and $148,000 of interest for the three and nine months ended December 31, 2013, respectively. No interest was capitalized for the three and nine month period ended December 31, 2012. |
ACCRUED_EXPENSES
ACCRUED EXPENSES | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
ACCRUED EXPENSES | ' | |||||||
ACCRUED EXPENSES | ' | |||||||
4. ACCRUED EXPENSES | ||||||||
Accrued expenses consist of the following: | ||||||||
December 31, 2013 | March 31, 2013 | |||||||
(in thousands) | ||||||||
Wages, commissions | $ | 501 | $ | 623 | ||||
Customer rebates | 93 | 109 | ||||||
Rent | 72 | 21 | ||||||
Other expenses | 165 | 119 | ||||||
$ | 831 | $ | 872 |
LONGTERM_DEBT
LONG-TERM DEBT | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
LONG-TERM DEBT | ' | |||||||
LONG-TERM DEBT | ' | |||||||
5. LONG-TERM DEBT | ||||||||
Long-term debt consists of the following: | ||||||||
December 31, 2013 | March 31, 2013 | |||||||
(in thousands) | ||||||||
Term loans | $ | 5,505 | $ | 5,582 | ||||
Less current maturities | (202 | ) | (128 | ) | ||||
Long-term debt, excluding current maturities | $ | 5,303 | $ | 5,454 | ||||
Term Loan Agreements | ||||||||
The Company executed a loan agreement with a lender providing for $5,500,000 in aggregate credit facilities (the “Loan”), secured by substantially all the Company’s assets, pursuant to a Term Loan Agreement dated August 14, 2012 (the “Loan Agreement”). The Loan Agreement is evidenced by promissory notes in the amounts of $2,250,000 and $3,250,000, the repayment of which is partially guaranteed under the provisions of a United States Department of Agriculture (“USDA”) Rural Development Guarantee program (the “Guarantees”). The proceeds of the Loan are used to acquire new processing equipment and leasehold improvements at its Kona, Hawaii facility. | ||||||||
The provisions of the Loan require the payment of interest only for the first 12 months of the term; thereafter, and until its maturity on August 14, 2032, the obligation fully amortizes over nineteen (19) years. Interest on the Loan accrues on the outstanding principal balance at an annual variable rate equal to the published Wall Street Journal prime rate (3.25% at December 31, 2013) plus 1.0% and is adjustable on the first day of each calendar quarter and fixed for that quarter. At no time shall the annual interest rate be less than 5.50%. The Loan has a prepayment penalty of 5% for any prepayment made prior to the first anniversary of the date of the Loan Agreement, which penalty is reduced by 1% each year thereafter until the fifth anniversary of such date, after which there is no prepayment penalty. The balance under this Loan was $5,445,000 at December 31, 2013. Proceeds from the Loan are classified as restricted cash until drawn upon to acquire new processing equipment and leasehold improvements. | ||||||||
The Loan includes a one-time origination and guaranty fees totaling $214,500 and an annual renewal fee payable in the amount of 0.25% of the USDA guaranteed portion of the outstanding principal balance as of December 31 of each year, beginning December 31, 2012. The USDA has guaranteed 80% of all amounts owing under the Loan. The Company is subject to financial covenants and customary affirmative and negative covenants. The Company was in compliance with these financial covenants at December 31, 2013. | ||||||||
The Company has three equipment loans with John Deere credit providing for $103,000 in equipment financing; these loans are payable in 48 equal monthly principal payments. At December 31, 2013 and March 31, 2013 the total outstanding combined balance was approximately $48,000 and $66,000, respectively. The equipment loans have maturity dates of May 2015 as to $15,000, November 2015 as to $14,000 and June 2016 as to $19,000. The loans are at a 0% rate of interest and are net of unamortized discount of $1,000 and $2,000 at December 31, 2013 and March 31, 2013, respectively | ||||||||
In September 2011, the Company executed a Term Loan Agreement with Nissan Motor Acceptance Corporation providing for $23,000 in equipment financing, secured by the equipment. The Term Loan has a maturity date of September 13, 2016 and is payable in 60 equal monthly principal payments. The interest rate under this Term Loan is 0%. Imputed interest at a rate of 2% (cash discount offered by seller) has been recorded and is being amortized as interest over the term of the loan. The balance outstanding under the Term Loan was $12,000 and $15,000 at December 31, 2013 and March 31, 2013, respectively, less the unamortized discount of $300 and $600 at December 31, 2013 and March 31, 2013, respectively. | ||||||||
Future principal payments under the term loan agreements as of December 31, 2013 are as follows: | ||||||||
Payments Due | (in | |||||||
thousands) | ||||||||
Next 12 Months | $ | 202 | ||||||
Year 2 | 205 | |||||||
Year 3 | 199 | |||||||
Year 4 | 203 | |||||||
Year 5 | 214 | |||||||
Thereafter | 4,482 | |||||||
Total principal payments | $ | 5,505 | ||||||
LEASES
LEASES | 9 Months Ended | ||||
Dec. 31, 2013 | |||||
LEASES | ' | ||||
LEASES | ' | ||||
6. LEASES | |||||
The Company leases facilities, equipment and land under operating leases expiring through 2035. The land lease provides for contingent rentals in excess of minimum rental commitments based on a percentage of the Company’s sales. Management has accrued for the estimated contingent rent as of December 31, 2013. | |||||
Future minimum lease payments under all non-cancelable operating leases at December 31, 2013 are as follows: | |||||
Payments Due | (in | ||||
thousands) | |||||
Next 12 Months | $ | 482 | |||
Year 2 | 442 | ||||
Year 3 | 341 | ||||
Year 4 | 305 | ||||
Year 5 | 299 | ||||
Thereafter | 5,087 | ||||
Total minimum lease payments | $ | 6,956 |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2013 | |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | ' |
7. COMMITMENTS AND CONTINGENCIES | |
On September 12, 2012, the Company entered into an agreement with Uhde Corporation of America (“Uhde”) for the purchase of supercritical carbon dioxide extraction equipment to be used in the processing of its natural astaxanthin (“Equipment”). Pursuant to the terms of the agreement, Uhde will build, ship and provide assistance in installing the Equipment. The Equipment which was originally scheduled for delivery approximately 14 months from the date of the agreement, is now scheduled for a delivery in the first quarter of the next fiscal year. The Company will pay Uhde an aggregate of $3,222,000 for the equipment and services, of which $645,000 remains unpaid as of December 31, 2013. Progress payments through December 31, 2013 of $2,577,000 have been classified as construction in progress on the consolidated balance sheet. | |
The Company is subject to legal proceedings and claims from time to time in the ordinary course of business. Although management cannot predict with certainty the ultimate resolution of legal proceedings and claims asserted against the Company, management does not believe that any currently pending legal proceeding to which the Company is a party is likely to have a material adverse effect on its business, results of operations, cash flows or financial condition. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||
8. SHARE-BASED COMPENSATION | ||||||||||||||
The Company accounts for share-based payment arrangements using fair value. If an award vests or becomes exercisable based on the achievement of a condition other than service, such as for meeting certain performance or market conditions, the award is classified as a liability. Liability-classified awards are remeasured to fair value at each balance sheet date until the award is settled. The Company currently has no liability-classified awards. Equity- classified awards, including grants of employee stock options, are measured at the grant-date fair value of the award and are not subsequently remeasured unless an award is modified. The cost of equity-classified awards is recognized in the statement of operations over the period during which an employee is required to provide the service in exchange for the award, or the vesting period. All of the Company’s stock options are service-based awards, and because the Company’s stock options are “plain vanilla,” as defined by the U.S. Securities and Exchange Commission in Staff Accounting Bulletin No. 107, they are reflected only in Equity and Compensation Expense accounts. | ||||||||||||||
Stock Options | ||||||||||||||
As of December 31, 2013, the Company had the following two shareholder approved plans under which shares were available for equity based awards: The 2005 Stock Option Plan (the “2005 Plan”) wherein 2,075,000 shares of common stock are reserved for issuance until the Plan terminates on August 21, 2015, and; The Independent Director Stock Option and Stock Grant Plan (the “2004 Directors Plan”) wherein 200,000 shares of common stock are reserved for issuance until the plan terminates in 2014. | ||||||||||||||
Under the 2005 Plan, eligible employees and certain independent consultants may be granted options to purchase shares of the Company’s common stock. The shares issuable under the 2005 Plan will either be shares of the Company’s authorized but previously unissued common stock or shares reacquired by the Company, including shares purchased on the open market. As of December 31, 2013, there were 419,728 options available for grant under the 2005 Plan. | ||||||||||||||
Under the 2004 Directors Plan, upon election to the Board of Directors at an annual stockholders meeting, a newly elected non-employee director will be granted a ten-year option to purchase 6,000 shares of the Company’s common stock. Options vest and become exercisable six months from the date of grant. In addition, on the date of each annual stockholders meeting, each non-employee director continuing in office is automatically issued 4,000 shares of the Company’s common stock, and an additional 1,000 shares to the director serving as Chairman of the Board, non-transferable for six months following the date of grant. As of December 31, 2013, there were 121,123 shares available for grant under the 2004 Directors Plan. | ||||||||||||||
The following table presents shares authorized, available for future grant and outstanding under each of the Company’s plans: | ||||||||||||||
As of December 31, 2013 | ||||||||||||||
Authorized | Available | Outstanding | ||||||||||||
2005 Plan | 2,075,000 | 419,728 | 1,462,106 | |||||||||||
2004 Directors Plan | 200,000 | 121,123 | 12,000 | |||||||||||
Total | 2,275,000 | 540,851 | 1,474,106 | |||||||||||
All stock option grants made under the 2005 Plan and the 2004 Directors Plan were at exercise prices no less than the Company’s closing stock price on the date of grant. Options under the 2005 Plan and 2004 Directors Plan were determined by the Board of Directors or the Stock Option and Compensation Committee of the Board in accordance with the provisions of the respective plans. The terms of each option grant include vesting, exercise and other conditions are set forth in a Stock Option Agreement evidencing each grant. No option can have a life in excess of ten (10) years. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model. The model requires various assumptions, including a risk-free interest rate, the expected term of the options, the expected stock price volatility over the expected term of the options and the expected dividend yield. Compensation expense for employee stock options is recognized ratably over the vesting term which ranges from 4 to 7 years. Compensation expense recognized for options issued under the 2005 Plan was $181,000 and $535,000 for the three and nine months ended December 31, 2013, respectively. Compensation expense recognized for options issued under the 2005 Plan was $191,000 and $486,000 for the three and nine months ended December 31, 2012, respectively. Compensation expense recognized for options issued under the 2004 Directors Plan was $2,000 and $54,000 for the three and nine months ended December 31, 2013, respectively. Compensation expense recognized for options issued under the 2004 Directors Plan was $0 and $77,000 for the three and nine months ended December 31, 2012, respectively. All share-based compensation has been classified as General and Administrative expense. | ||||||||||||||
A summary of option activity under the Company’s stock plans for the nine months ended December 31, 2013 is presented below: | ||||||||||||||
Option Activity | Shares | Weighted Average | Weighted Average | Aggregate | ||||||||||
Exercise Price | Remaining | Intrinsic | ||||||||||||
Contractual Term | Value | |||||||||||||
Outstanding at March 31, 2013 | 1,495,856 | $ | 4.03 | 8.3 years | $ | 1,139,324 | ||||||||
Granted | 6,000 | 5.56 | — | — | ||||||||||
Exercised | (13,500 | ) | $ | 2.42 | — | 44,537 | ||||||||
Forfeited or expired | (14,250 | ) | $ | 4.73 | — | 14,250 | ||||||||
Outstanding at December 31, 2013 | 1,474,106 | $ | 4.04 | 7.6 years | $ | 1,677,074 | ||||||||
Exercisable at December 31, 2013 | 507,040 | $ | 3.48 | 7.0 years | $ | 804,505 | ||||||||
The aggregate intrinsic value as of December 31, 2013 in the table above is before applicable income taxes and represents the excess amount over the exercise price optionees would have received if all options had been exercised on the last business day of the period indicated, based on the Company’s closing stock price of $4.93 for such day. | ||||||||||||||
A summary of the Company’s non-vested options for the nine months ended December 31, 2013 is presented below: | ||||||||||||||
Nonvested Options | Shares | Weighted | ||||||||||||
Average | ||||||||||||||
Grant-Date | ||||||||||||||
Fair Value | ||||||||||||||
Nonvested at March 31, 2013 | 1,157,566 | $ | 3.05 | |||||||||||
Granted | 6,000 | 0.84 | ||||||||||||
Vested | (188,250 | ) | 2.65 | |||||||||||
Forfeited or expired | (8,250 | ) | 3.08 | |||||||||||
Nonvested at December 31, 2013 | 967,066 | $ | 3.11 | |||||||||||
The following table summarizes the weighted average characteristics of outstanding stock options as of December 31, 2013: | ||||||||||||||
Outstanding Options | Exercisable Options | |||||||||||||
Range of | Number | Remaining | Weighted | Number of | Weighted | |||||||||
Exercise Prices | of Shares | Life (Years) | Average Price | Shares | Average Price | |||||||||
$ 1.60 - $3.70 | 433,190 | 6.7 | $ | 2.93 | 323,270 | $ | 2.82 | |||||||
$ 3.71 - $4.42 | 729,916 | 7.7 | 3.82 | 110,520 | 3.82 | |||||||||
$ 4.43 - $5.40 | 72,500 | 8.2 | 5.17 | 27,500 | 5.18 | |||||||||
$ 5.41 - $7.08 | 238,500 | 8.6 | 6.38 | 45,750 | 6.24 | |||||||||
Total stock options | 1,474,106 | 7.6 | $ | 4.04 | 507,040 | $ | 3.48 | |||||||
There were 6,000 stock options granted during the three and nine months ended December 31, 2013. There were 45,000 and 258,000 stock options granted during the three and nine months ended December 31, 2012, respectively. The value assumptions related to options granted during the nine months ended December 31, 2013 were as follows: | ||||||||||||||
2013 | ||||||||||||||
Exercise Price: | $5.56 | |||||||||||||
Volatility: | 38.00% | |||||||||||||
Risk Free Rate: | 0.14% | |||||||||||||
Vesting Period: | 6 months | |||||||||||||
Forfeiture Rate: | 0% | |||||||||||||
Expected Life | 1.00 year | |||||||||||||
Dividend Rate | 0% | |||||||||||||
As of December 31, 2013, total unrecognized share-based compensation expense related to all unvested stock options was $2,125,000, which is expected to be recognized over a weighted average period of 3.7 years. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Dec. 31, 2013 | |
INCOME TAXES | ' |
INCOME TAXES | ' |
9. INCOME TAXES | |
We utilize our estimated annual effective tax rate to determine our provision for income taxes for interim periods. The income tax provision is computed by taking the estimated annual effective tax rate and multiplying it by the year to date pre-tax book income. We recorded income tax expense of $257,000 and $12,000 for the three months ended December 31, 2013 and 2012, respectively. Our effective tax rate was 87.7% and 2.0% for the quarters ended December 31, 2013 and 2012, respectively. We recorded income tax expense of $592,000 and $32,000 for the nine months ended December 31, 2013 and 2012, respectively. Our effective tax rate was 77.5% and 2.1% for the nine months ended December 31, 2013 and 2012, respectively. | |
The effective tax rate for the three months ended December 31, 2013 differs from the statutory rate of 34% as a result of the state taxes (net of federal benefit) and permanent differences. | |
The Company is subject to taxation in the United States and two state jurisdictions. The preparation of tax returns requires management to interpret the applicable tax laws and regulations in effect in such jurisdictions, which could affect the amount of tax paid by the Company. Management, in consultation with its tax advisors, files its tax returns based on interpretations that are believed to be reasonable under the circumstances. The income tax returns, however, are subject to routine reviews by the various taxing authorities. As part of these reviews, a taxing authority may disagree with respect to the tax positions taken by management (“uncertain tax positions”) and therefore may require the Company to pay additional taxes. Management evaluates the requirement for additional tax accruals, including interest and penalties, which the Company could incur as a result of the ultimate resolution of its uncertain tax positions. Management reviews and updates the accrual for uncertain tax positions as more definitive information becomes available from taxing authorities, completion of tax audits, expiration of statute of limitations, or upon occurrence of other events. | |
As of December 31, 2013, there was no liability for income tax associated with unrecognized tax benefits. The Company recognizes accrued interest related to unrecognized tax benefits as well as any related penalties in interest income or expense in its consolidated condensed statements of operations, which is consistent with the recognition of these items in prior reporting periods. | |
The Company is no longer subject to U.S. federal, state, local, and non-U.S. income tax examination by tax authorities for tax years before 2008. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
EARNINGS PER SHARE | ' | |||||||||
EARNINGS PER SHARE | ' | |||||||||
10. EARNINGS PER SHARE | ||||||||||
Basic earnings per share is computed on the basis of the weighted average number of common shares outstanding. Diluted earnings per share is computed on the basis of the weighted average number of common shares outstanding plus the potentially dilutive effect of outstanding stock options using the “treasury stock” method. | ||||||||||
Reconciliations between the numerator and the denominator of the basic and diluted earnings per share computations for the three months ended December 31, 2013 and 2012 are as follows: | ||||||||||
Three Months Ended December 31, 2013 | ||||||||||
Net Income | Shares | Per Share | ||||||||
(Numerator) | (Denominator) | Amount | ||||||||
(in thousands) | ||||||||||
Basic income per share | $ | 36 | 5,486 | $ | 0.01 | |||||
Effect of dilutive securities—Common stock options | — | 173 | — | |||||||
Diluted income per share | $ | 36 | 5,659 | $ | 0.01 | |||||
Three Months Ended December 31, 2012 | ||||||||||
Net Income | Shares | Per Share | ||||||||
(Numerator) | (Denominator) | Amount | ||||||||
(in thousands) | ||||||||||
Basic income per share | $ | 607 | 5,464 | $ | 0.11 | |||||
Effect of dilutive securities — Common stock options | — | 153 | — | |||||||
Diluted income per share | $ | 607 | 5,617 | $ | 0.11 | |||||
Reconciliations between the numerator and the denominator of the basic and diluted earnings per share computations for the nine months ended December 31, 2013 and 2012 are as follows: | ||||||||||
Nine Months Ended December 31, 2013 | ||||||||||
Net Income | Shares | Per Share | ||||||||
(Numerator) | (Denominator) | Amount | ||||||||
(in thousands) | ||||||||||
Basic income per share | $ | 172 | 5,475 | $ | 0.03 | |||||
Effect of dilutive securities—Common stock options | — | 181 | — | |||||||
Diluted income per share | $ | 172 | 5,656 | $ | 0.03 | |||||
Nine Months Ended December 31, 2012 | ||||||||||
Net Income | Shares | Per Share | ||||||||
(Numerator) | (Denominator) | Amount | ||||||||
(in thousands) | ||||||||||
Basic income per share | $ | 1,576 | 5,451 | $ | 0.29 | |||||
Effect of dilutive securities — Common stock options | — | 241 | (0.01 | ) | ||||||
Diluted income per share | $ | 1,576 | 5,692 | $ | 0.28 | |||||
Diluted earnings per share does not include the impact of common stock options totaling 680,142 and 732,032 for the three months ended December 31, 2013 and 2012, respectively, and 725,142 and 198,000 for the nine months ended December 31, 2013 and 2012, respectively, as the effect of their inclusion would be anti-dilutive. |
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
INVENTORIES | ' | |||||||
Schedule of components of inventory | ' | |||||||
December 31, 2013 | March 31, 2013 | |||||||
(in thousands) | ||||||||
Raw materials | $ | 915 | $ | 932 | ||||
Work in process | 303 | 330 | ||||||
Finished goods(1) | 3,812 | 2,164 | ||||||
Supplies | 200 | 262 | ||||||
$ | 5,230 | $ | 3,688 | |||||
(1) Net of reserve for obsolescence of $6,000 and $9,000 at December 31, 2013 and March 31, 2013, respectively. |
EQUIPMENT_AND_LEASEHOLD_IMPROV1
EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Tables) | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | ' | |||||||
Schedule of estimated useful lives | ' | |||||||
Equipment | 3 to 10 years | |||||||
Furniture and fixtures | 3 to 7 years | |||||||
Leasehold improvements | 10 to 25 years | |||||||
Schedule of components of equipment and leasehold improvements | ' | |||||||
December 31, 2013 | March 31, 2013 | |||||||
(in thousands) | ||||||||
Equipment | $ | 8,757 | $ | 7,455 | ||||
Leasehold improvements | 9,525 | 8,313 | ||||||
Furniture and fixtures | 288 | 208 | ||||||
18,570 | 15,976 | |||||||
Less accumulated depreciation and amortization | (11,122 | ) | (10,496 | ) | ||||
Construction-in-progress | 3,918 | 3,355 | ||||||
Equipment and leasehold improvements, net | $ | 11,366 | $ | 8,835 |
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
ACCRUED EXPENSES | ' | |||||||
Schedule of components of accrued expenses | ' | |||||||
December 31, 2013 | March 31, 2013 | |||||||
(in thousands) | ||||||||
Wages, commissions | $ | 501 | $ | 623 | ||||
Customer rebates | 93 | 109 | ||||||
Rent | 72 | 21 | ||||||
Other expenses | 165 | 119 | ||||||
$ | 831 | $ | 872 |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 9 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
LONG-TERM DEBT | ' | |||||||
Summary of long-term debt | ' | |||||||
December 31, 2013 | March 31, 2013 | |||||||
(in thousands) | ||||||||
Term loans | $ | 5,505 | $ | 5,582 | ||||
Less current maturities | (202 | ) | (128 | ) | ||||
Long-term debt, excluding current maturities | $ | 5,303 | $ | 5,454 | ||||
Schedule of future principal payments under the term loan agreements | ' | |||||||
Payments Due | (in | |||||||
thousands) | ||||||||
Next 12 Months | $ | 202 | ||||||
Year 2 | 205 | |||||||
Year 3 | 199 | |||||||
Year 4 | 203 | |||||||
Year 5 | 214 | |||||||
Thereafter | 4,482 | |||||||
Total principal payments | $ | 5,505 |
LEASES_Tables
LEASES (Tables) | 9 Months Ended | ||||
Dec. 31, 2013 | |||||
LEASES | ' | ||||
Summary of future minimum lease payments under all non-cancelable operating leases | ' | ||||
Payments Due | (in | ||||
thousands) | |||||
Next 12 Months | $ | 482 | |||
Year 2 | 442 | ||||
Year 3 | 341 | ||||
Year 4 | 305 | ||||
Year 5 | 299 | ||||
Thereafter | 5,087 | ||||
Total minimum lease payments | $ | 6,956 |
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||
Schedule presenting shares authorized, available for future grant and outstanding under each plan | ' | |||||||||||||
As of December 31, 2013 | ||||||||||||||
Authorized | Available | Outstanding | ||||||||||||
2005 Plan | 2,075,000 | 419,728 | 1,462,106 | |||||||||||
2004 Directors Plan | 200,000 | 121,123 | 12,000 | |||||||||||
Total | 2,275,000 | 540,851 | 1,474,106 | |||||||||||
Summary of option activity under stock plans | ' | |||||||||||||
Option Activity | Shares | Weighted Average | Weighted Average | Aggregate | ||||||||||
Exercise Price | Remaining | Intrinsic | ||||||||||||
Contractual Term | Value | |||||||||||||
Outstanding at March 31, 2013 | 1,495,856 | $ | 4.03 | 8.3 years | $ | 1,139,324 | ||||||||
Granted | 6,000 | 5.56 | — | — | ||||||||||
Exercised | (13,500 | ) | $ | 2.42 | — | 44,537 | ||||||||
Forfeited or expired | (14,250 | ) | $ | 4.73 | — | 14,250 | ||||||||
Outstanding at December 31, 2013 | 1,474,106 | $ | 4.04 | 7.6 years | $ | 1,677,074 | ||||||||
Exercisable at December 31, 2013 | 507,040 | $ | 3.48 | 7.0 years | $ | 804,505 | ||||||||
Summary of non-vested options | ' | |||||||||||||
Nonvested Options | Shares | Weighted | ||||||||||||
Average | ||||||||||||||
Grant-Date | ||||||||||||||
Fair Value | ||||||||||||||
Nonvested at March 31, 2013 | 1,157,566 | $ | 3.05 | |||||||||||
Granted | 6,000 | 0.84 | ||||||||||||
Vested | (188,250 | ) | 2.65 | |||||||||||
Forfeited or expired | (8,250 | ) | 3.08 | |||||||||||
Nonvested at December 31, 2013 | 967,066 | $ | 3.11 | |||||||||||
Summary of the weighted average characteristics of outstanding stock options | ' | |||||||||||||
Outstanding Options | Exercisable Options | |||||||||||||
Range of | Number | Remaining | Weighted | Number of | Weighted | |||||||||
Exercise Prices | of Shares | Life (Years) | Average Price | Shares | Average Price | |||||||||
$ 1.60 - $3.70 | 433,190 | 6.7 | $ | 2.93 | 323,270 | $ | 2.82 | |||||||
$ 3.71 - $4.42 | 729,916 | 7.7 | 3.82 | 110,520 | 3.82 | |||||||||
$ 4.43 - $5.40 | 72,500 | 8.2 | 5.17 | 27,500 | 5.18 | |||||||||
$ 5.41 - $7.08 | 238,500 | 8.6 | 6.38 | 45,750 | 6.24 | |||||||||
Total stock options | 1,474,106 | 7.6 | $ | 4.04 | 507,040 | $ | 3.48 | |||||||
Summary of valuation assumptions related to options granted | ' | |||||||||||||
2013 | ||||||||||||||
Exercise Price: | $5.56 | |||||||||||||
Volatility: | 38.00% | |||||||||||||
Risk Free Rate: | 0.14% | |||||||||||||
Vesting Period: | 6 months | |||||||||||||
Forfeiture Rate: | 0% | |||||||||||||
Expected Life | 1.00 year | |||||||||||||
Dividend Rate | 0% |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
EARNINGS PER SHARE | ' | |||||||||
Summary of reconciliations between the numerator and the denominator of the basic and diluted earnings per share computations | ' | |||||||||
Three Months Ended December 31, 2013 | ||||||||||
Net Income | Shares | Per Share | ||||||||
(Numerator) | (Denominator) | Amount | ||||||||
(in thousands) | ||||||||||
Basic income per share | $ | 36 | 5,486 | $ | 0.01 | |||||
Effect of dilutive securities—Common stock options | — | 173 | — | |||||||
Diluted income per share | $ | 36 | 5,659 | $ | 0.01 | |||||
Three Months Ended December 31, 2012 | ||||||||||
Net Income | Shares | Per Share | ||||||||
(Numerator) | (Denominator) | Amount | ||||||||
(in thousands) | ||||||||||
Basic income per share | $ | 607 | 5,464 | $ | 0.11 | |||||
Effect of dilutive securities — Common stock options | — | 153 | — | |||||||
Diluted income per share | $ | 607 | 5,617 | $ | 0.11 | |||||
Nine Months Ended December 31, 2013 | ||||||||||
Net Income | Shares | Per Share | ||||||||
(Numerator) | (Denominator) | Amount | ||||||||
(in thousands) | ||||||||||
Basic income per share | $ | 172 | 5,475 | $ | 0.03 | |||||
Effect of dilutive securities—Common stock options | — | 181 | — | |||||||
Diluted income per share | $ | 172 | 5,656 | $ | 0.03 | |||||
Nine Months Ended December 31, 2012 | ||||||||||
Net Income | Shares | Per Share | ||||||||
(Numerator) | (Denominator) | Amount | ||||||||
(in thousands) | ||||||||||
Basic income per share | $ | 1,576 | 5,451 | $ | 0.29 | |||||
Effect of dilutive securities — Common stock options | — | 241 | (0.01 | ) | ||||||
Diluted income per share | $ | 1,576 | 5,692 | $ | 0.28 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | |
INVENTORIES | ' | ' | ' | ' | ' |
Raw materials | $915,000 | ' | $915,000 | ' | $932,000 |
Work in process | 303,000 | ' | 303,000 | ' | 330,000 |
Finished goods | 3,812,000 | ' | 3,812,000 | ' | 2,164,000 |
Supplies | 200,000 | ' | 200,000 | ' | 262,000 |
Inventories, net | 5,230,000 | ' | 5,230,000 | ' | 3,688,000 |
Reserve for obsolescence | 6,000 | ' | 6,000 | ' | 9,000 |
Non inventoriable fixed costs charged to cost of sales | 44,000 | ' | ' | ' | ' |
Abnormal production costs, charged to cost of sales | $0 | $161,000 | $0 | $875,000 | ' |
EQUIPMENT_AND_LEASEHOLD_IMPROV2
EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | |
Equipment and leasehold improvements, net | ' | ' | ' | ' | ' |
Equipment and leasehold improvements, gross, excluding construction in-progress | $18,570,000 | ' | $18,570,000 | ' | $15,976,000 |
Less accumulated depreciation and amortization | -11,122,000 | ' | -11,122,000 | ' | -10,496,000 |
Construction-in-progress | 3,918,000 | ' | 3,918,000 | ' | 3,355,000 |
Equipment and leasehold improvements, net | 11,366,000 | ' | 11,366,000 | ' | 8,835,000 |
Loss on disposal of assets | 19,000 | 1,000 | 45,000 | 36,000 | ' |
Interest capitalized | 50,000 | 0 | 148,000 | 0 | ' |
Equipment | ' | ' | ' | ' | ' |
Equipment and leasehold improvements, net | ' | ' | ' | ' | ' |
Equipment and leasehold improvements, gross | 8,757,000 | ' | 8,757,000 | ' | 7,455,000 |
Equipment | Minimum | ' | ' | ' | ' | ' |
Equipment and leasehold improvements, net | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '3 years | ' | ' |
Equipment | Maximum | ' | ' | ' | ' | ' |
Equipment and leasehold improvements, net | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '10 years | ' | ' |
Leasehold improvements | ' | ' | ' | ' | ' |
Equipment and leasehold improvements, net | ' | ' | ' | ' | ' |
Equipment and leasehold improvements, gross | 9,525,000 | ' | 9,525,000 | ' | 8,313,000 |
Leasehold improvements | Minimum | ' | ' | ' | ' | ' |
Equipment and leasehold improvements, net | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '10 years | ' | ' |
Leasehold improvements | Maximum | ' | ' | ' | ' | ' |
Equipment and leasehold improvements, net | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '25 years | ' | ' |
Furniture and fixtures | ' | ' | ' | ' | ' |
Equipment and leasehold improvements, net | ' | ' | ' | ' | ' |
Equipment and leasehold improvements, gross | $288,000 | ' | $288,000 | ' | $208,000 |
Furniture and fixtures | Minimum | ' | ' | ' | ' | ' |
Equipment and leasehold improvements, net | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '3 years | ' | ' |
Furniture and fixtures | Maximum | ' | ' | ' | ' | ' |
Equipment and leasehold improvements, net | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '7 years | ' | ' |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
ACCRUED EXPENSES | ' | ' |
Wages, commissions | $501 | $623 |
Customer rebates | 93 | 109 |
Rent | 72 | 21 |
Other expenses | 165 | 119 |
Total accrued expenses | $831 | $872 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||
Dec. 31, 2013 | Mar. 31, 2013 | Aug. 14, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 14, 2012 | Aug. 14, 2012 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2011 | Dec. 31, 2013 | Mar. 31, 2013 | |
Term loan agreement, maturing on August 14, 2032 | Term loan agreement, maturing on August 14, 2032 | Term loan agreement, maturing on August 14, 2032 | Term loan agreement, promissory note one | Term loan agreement, promissory note two | Equipment loans with John Deere | Equipment loans with John Deere | Term loan agreement with John Deere, maturing in May, 2015 | Term loan agreement with John Deere, maturing in November, 2015 | Term loan agreement with John Deere, maturing in June, 2016 | Term loan agreement with Nissan Motor Acceptance Corporation, maturing on September 13, 2016 | Term loan agreement with Nissan Motor Acceptance Corporation, maturing on September 13, 2016 | Term loan agreement with Nissan Motor Acceptance Corporation, maturing on September 13, 2016 | |||
Minimum | item | item | |||||||||||||
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total principal payments | $5,505,000 | $5,582,000 | ' | $5,445,000 | ' | ' | ' | $48,000 | $66,000 | $15,000 | $14,000 | $19,000 | ' | ' | ' |
Less current maturities | -202,000 | -128,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, excluding current maturities | 5,303,000 | 5,454,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount borrowed | ' | ' | 5,500,000 | ' | ' | 2,250,000 | 3,250,000 | 103,000 | ' | ' | ' | ' | 23,000 | ' | ' |
Period for which interest is payable | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period over which obligation fully amortizes | ' | ' | ' | '19 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate basis | 'Prime rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reference rate (as a percent) | ' | ' | ' | 3.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest rate margin (as a percent) | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual interest rate (as a percent) | ' | ' | ' | ' | 5.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment penalty (as a percent) | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in prepayment penalty each year (as a percent) | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
One-time origination and guaranty fees | ' | ' | ' | 214,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual renewal fee payable (as a percent) | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conditionally guaranteed portion of the loan (as a percent) | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of equal monthly payments | ' | ' | ' | ' | ' | ' | ' | 48 | ' | ' | ' | ' | 60 | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | 0.00% | ' |
Number of equipment loans | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' |
Imputed interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' |
Face value of term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,000 | 15,000 |
Unamortized discount | ' | ' | ' | ' | ' | ' | ' | $1,000 | $2,000 | ' | ' | ' | ' | $300 | $600 |
LONGTERM_DEBT_Details_2
LONG-TERM DEBT (Details 2) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Future principal payments under the term loan agreements | ' | ' |
Next 12 Months | $202 | ' |
Year 2 | 205 | ' |
Year 3 | 199 | ' |
Year 4 | 203 | ' |
Year 5 | 214 | ' |
Thereafter | 4,482 | ' |
Total principal payments | $5,505 | $5,582 |
LEASES_Details
LEASES (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future minimum lease payments due under all non-cancellable operating leases | ' |
Next 12 Months | $482 |
Year 2 | 442 |
Year 3 | 341 |
Year 4 | 305 |
Year 5 | 299 |
Thereafter | 5,087 |
Total minimum lease payments | $6,956 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (Supercritical carbon dioxide extraction equipment, USD $) | 0 Months Ended | |
Sep. 12, 2012 | Dec. 31, 2013 | |
Supercritical carbon dioxide extraction equipment | ' | ' |
Commitments and Contingencies | ' | ' |
Originally scheduled delivery period from the date of the agreement | '14 months | ' |
Aggregate amount to be paid | $3,222,000 | ' |
Unpaid amount | ' | 645,000 |
Amount classified as construction in progress | ' | $2,577,000 |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (USD $) | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
item | Stock options | Stock options | Stock options | Stock options | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2004 Directors Plan | 2004 Directors Plan | 2004 Directors Plan | 2004 Directors Plan | 2004 Directors Plan | 2004 Directors Plan | 2004 Directors Plan | |
item | Minimum | Maximum | Stock options | Stock options | Stock options | Stock options | Stock options | Restricted stock | Restricted stock | ||||||||
Non-employee director | Non-employee director | Director serving as Chairman of the Board | |||||||||||||||
SHARE-BASED COMPENSATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of liability-classified awards | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shareholder approved equity based plans | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Life of award | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Initial option grant upon joining the Board (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000 | ' | ' |
Vesting Period | ' | ' | ' | '4 years | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | '6 months | '6 months |
Shares issued to each non-employee director annually | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | 1,000 |
Shares authorized, available for future grant and outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized (in shares) | 2,275,000 | ' | ' | ' | ' | 2,075,000 | ' | ' | ' | ' | 200,000 | ' | 200,000 | ' | ' | ' | ' |
Available (in shares) | 540,851 | ' | ' | ' | ' | 419,728 | ' | ' | ' | ' | 121,123 | ' | 121,123 | ' | ' | ' | ' |
Outstanding (in shares) | 1,474,106 | 1,474,106 | 1,495,856 | ' | ' | 1,462,106 | ' | ' | ' | ' | 12,000 | ' | 12,000 | ' | ' | ' | ' |
Share-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options which award life in excess of ten years | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense (in dollars) | ' | ' | ' | ' | ' | ' | $181,000 | $191,000 | $535,000 | $486,000 | $2,000 | $0 | $54,000 | $77,000 | ' | ' | ' |
SHAREBASED_COMPENSATION_Detail1
SHARE-BASED COMPENSATION (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | |
Shares | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in shares) | 1,474,106 | ' | 1,474,106 | ' | ' |
Stock options | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | 1,495,856 | ' | ' |
Granted (in shares) | 6,000 | 45,000 | 6,000 | 258,000 | ' |
Exercised (in shares) | ' | ' | -13,500 | ' | ' |
Forfeited or expired (in shares) | ' | ' | -14,250 | ' | ' |
Outstanding at the end of the period (in shares) | 1,474,106 | ' | 1,474,106 | ' | 1,495,856 |
Exercisable at the end of the period (in shares) | 507,040 | ' | 507,040 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | $4.03 | ' | ' |
Granted (in dollars per share) | ' | ' | $5.56 | ' | ' |
Exercised (in dollars per share) | ' | ' | $2.42 | ' | ' |
Forfeited or expired (in dollars per share) | ' | ' | $4.73 | ' | ' |
Outstanding at the end of the period (in dollars per share) | $4.04 | ' | $4.04 | ' | $4.03 |
Exercisable at the end of the period (in dollars per share) | $3.48 | ' | $3.48 | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | ' | '7 years 7 months 6 days | ' | '8 years 3 months 18 days |
Exercisable at the end of the period | ' | ' | '7 years | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars) | ' | ' | $1,139,324 | ' | ' |
Exercised (in dollars) | ' | ' | 44,537 | ' | ' |
Forfeited or expired (in dollars) | ' | ' | 14,250 | ' | ' |
Outstanding at the end of the period (in dollars) | 1,677,074 | ' | 1,677,074 | ' | 1,139,324 |
Exercisable at the end of the period (in dollars) | $804,505 | ' | $804,505 | ' | ' |
Closing stock price for last business day (in dollars per share) | $4.93 | ' | $4.93 | ' | ' |
Nonvested Options, Shares | ' | ' | ' | ' | ' |
Nonvested at the beginning of the period (in shares) | ' | ' | 1,157,566 | ' | ' |
Granted (in shares) | 6,000 | 45,000 | 6,000 | 258,000 | ' |
Vested (in shares) | ' | ' | -188,250 | ' | ' |
Forfeited or expired (in shares) | ' | ' | -8,250 | ' | ' |
Nonvested at the end of the period (in shares) | 967,066 | ' | 967,066 | ' | 1,157,566 |
Nonvested Options, Weighted Average Grant-Date Fair Value | ' | ' | ' | ' | ' |
Nonvested at the beginning of the period (in dollars per share) | ' | ' | $3.05 | ' | ' |
Granted (in dollars per share) | ' | ' | $0.84 | ' | ' |
Vested (in dollars per share) | ' | ' | $2.65 | ' | ' |
Forfeited or expired (in dollars per share) | ' | ' | $3.08 | ' | ' |
Nonvested at the end of the period (in dollars per share) | $3.11 | ' | $3.11 | ' | $3.05 |
SHAREBASED_COMPENSATION_Detail2
SHARE-BASED COMPENSATION (Details 3) (USD $) | 9 Months Ended |
Dec. 31, 2013 | |
Outstanding Options | ' |
Number of Shares | 1,474,106 |
Remaining Life | '7 years 7 months 6 days |
Weighted Average Price (in dollars per share) | $4.04 |
Exercisable Options | ' |
Number of Shares | 507,040 |
Weighted Average Price (in dollars per share) | $3.48 |
$1.60 - $3.70 | ' |
Weighted average characteristics of outstanding stock options | ' |
Range of Exercise Prices, lower limit (in dollars per share) | $1.60 |
Range of Exercise Prices, upper limit (in dollars per share) | $3.70 |
Outstanding Options | ' |
Number of Shares | 433,190 |
Remaining Life | '6 years 8 months 12 days |
Weighted Average Price (in dollars per share) | $2.93 |
Exercisable Options | ' |
Number of Shares | 323,270 |
Weighted Average Price (in dollars per share) | $2.82 |
$3.71 - $4.42 | ' |
Weighted average characteristics of outstanding stock options | ' |
Range of Exercise Prices, lower limit (in dollars per share) | $3.71 |
Range of Exercise Prices, upper limit (in dollars per share) | $4.42 |
Outstanding Options | ' |
Number of Shares | 729,916 |
Remaining Life | '7 years 8 months 12 days |
Weighted Average Price (in dollars per share) | $3.82 |
Exercisable Options | ' |
Number of Shares | 110,520 |
Weighted Average Price (in dollars per share) | $3.82 |
$4.43 - $5.40 | ' |
Weighted average characteristics of outstanding stock options | ' |
Range of Exercise Prices, lower limit (in dollars per share) | $4.43 |
Range of Exercise Prices, upper limit (in dollars per share) | $5.40 |
Outstanding Options | ' |
Number of Shares | 72,500 |
Remaining Life | '8 years 2 months 12 days |
Weighted Average Price (in dollars per share) | $5.17 |
Exercisable Options | ' |
Number of Shares | 27,500 |
Weighted Average Price (in dollars per share) | $5.18 |
$5.41 - $7.08 | ' |
Weighted average characteristics of outstanding stock options | ' |
Range of Exercise Prices, lower limit (in dollars per share) | $5.41 |
Range of Exercise Prices, upper limit (in dollars per share) | $7.08 |
Outstanding Options | ' |
Number of Shares | 238,500 |
Remaining Life | '8 years 7 months 6 days |
Weighted Average Price (in dollars per share) | $6.38 |
Exercisable Options | ' |
Number of Shares | 45,750 |
Weighted Average Price (in dollars per share) | $6.24 |
SHAREBASED_COMPENSATION_Detail3
SHARE-BASED COMPENSATION (Details 4) (Stock options, USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock options | ' | ' | ' | ' |
Share-based compensation | ' | ' | ' | ' |
Granted (in shares) | 6,000 | 45,000 | 6,000 | 258,000 |
Valuation assumptions related to options granted | ' | ' | ' | ' |
Exercise Price (in dollars per share) | $5.56 | ' | $5.56 | ' |
Volatility (as a percent) | ' | ' | 38.00% | ' |
Risk Free Rate (as a percent) | ' | ' | 0.14% | ' |
Vesting Period | ' | ' | '6 months | ' |
Forfeiture Rate (as a percent) | ' | ' | 0.00% | ' |
Expected Life | ' | ' | '1 year | ' |
Dividend Rate (as a percent) | ' | ' | 0.00% | ' |
Unrecognized share-based compensation related to unvested stock options | ' | ' | ' | ' |
Unrecognized share-based compensation | $2,125,000 | ' | $2,125,000 | ' |
Weighted average period over which expected to be recognized | ' | ' | '3 years 8 months 12 days | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | ||||
INCOME TAXES | ' | ' | ' | ' |
Income tax expense | $257,000 | $12,000 | $592,000 | $32,000 |
Effective tax rate (as a percent) | 87.70% | 2.00% | 77.50% | 2.10% |
Statutory rate (as a percent) | 34.00% | ' | ' | ' |
Number of state jurisdictions in which the entity is subject to taxation | ' | ' | 2 | ' |
Liability for income tax associated with unrecognized tax benefits | $0 | ' | $0 | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Income (Numerator) | ' | ' | ' | ' |
Basic (in dollars) | $36 | $607 | $172 | $1,576 |
Diluted (in dollars) | $36 | $607 | $172 | $1,576 |
Shares (Denominator) | ' | ' | ' | ' |
Basic (in shares) | 5,486,000 | 5,464,000 | 5,475,000 | 5,451,000 |
Effect of dilutive securities-Common stock options (in shares) | 173,000 | 153,000 | 181,000 | 241,000 |
Diluted (in shares) | 5,659,000 | 5,617,000 | 5,656,000 | 5,692,000 |
Per Share Amount | ' | ' | ' | ' |
Basic income per share (in dollars per share) | $0.01 | $0.11 | $0.03 | $0.29 |
Effect of dilutive securities-Common stock options (in dollars per share) | ' | ' | ' | ($0.01) |
Diluted income per share (in dollars per share) | $0.01 | $0.11 | $0.03 | $0.28 |
Common stock options excluded from diluted earnings per share as effect of inclusion would be anti-dilutive (in shares) | 680,142 | 732,032 | 725,142 | 198,000 |