TOR Minerals International (TORM) 10-Q 29 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 27, 2015
Document And Entity Information
Entity Registrant Name	TOR MINERALS INTERNATIONAL INC
Entity Central Index Key	842,295
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		3,014,022
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,015

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
NET SALES	$ 8,988	$ 11,317	$ 29,066	$ 36,841
Cost of sales	7,877	9,809	26,108	31,674
GROSS MARGIN	1,111	1,508	2,958	5,167
Technical services, research and development	44	50	143	150
Selling, general and administrative expenses	943	$ 1,092	3,034	$ 3,319
Loss on disposal of assets	38		38
OPERATING INCOME (LOSS)	86	$ 366	(257)	$ 1,698
OTHER EXPENSE:
Interest expense, net	(37)	(85)	(177)	(275)
Gain (Loss) on foreign currency exchange rate	(157)	71	(134)	10
Other, net	9	5	18	10
Total Other Expense	(185)	(9)	(293)	(255)
INCOME (LOSS) BEFORE INCOME TAX	(99)	357	(550)	1,443
Income tax (benefit) expense	22	61	(132)	287
NET INCOME (LOSS)	$ (121)	$ 296	$ (418)	$ 1,156
Earnings (loss) per common share:
Basic (in dollars per share)	$ (0.04)	$ 0.10	$ (0.14)	$ 0.38
Diluted (in dollars per share)	$ (0.04)	$ 0.09	$ (0.14)	$ 0.34
Weighted average common shares outstanding:
Basic (in shares)	3,014	3,014	3,014	3,014
Diluted (in shares)	3,014	3,394	3,014	3,403

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
NET INCOME (LOSS)	$ (121)	$ 296	$ (418)	$ 1,156
Currency translation adjustment, net of tax:
Net foreign currency translation adjustment loss	(1,662)	(1,021)	(3,161)	(729)
Other comprehensive loss, net of tax	(1,662)	(1,021)	(3,161)	(729)
COMPREHENSIVE INCOME (LOSS)	$ (1,783)	$ (725)	$ (3,579)	$ 427

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 2,088	$ 2,657
Trade accounts receivable, net	4,380	4,915
Inventories, net	14,256	20,175
Other current assets	1,128	752
Current deferred tax asset, domestic	30	37
Current deferred tax asset, foreign	44	54
Total current assets	21,926	$ 28,590
RESTRICTED CASH, foreign	1,561
PROPERTY, PLANT AND EQUIPMENT, net	19,278	$ 18,889
DEFERRED TAX ASSET, foreign	689	662
OTHER ASSETS	17	22
Total Assets	43,471	48,163
CURRENT LIABILITIES:
Accounts payable	2,080	3,318
Accrued expenses	1,034	1,832
Notes payable under lines of credit	876	886
Export credit refinancing facility	1,014	2,777
Current maturities of long-term debt - financial institutions	5,347	2,720
Total current liabilities	10,351	11,533
DEFERRED TAX LIABILITY, domestic	584	618
Total liabilities	$ 10,935	$ 12,151
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock $1.25 par value: authorized, 6,000 shares; 3,014 shares issued and outstanding at September 30, 2015 and December 31, 2014	$ 3,767	$ 3,767
Additional paid-in capital	29,606	29,503
Retained earnings	681	1,099
Accumulated other comprehensive income (loss):
Cumulative translation adjustment	(1,518)	1,643
Total shareholders' equity	32,536	36,012
Total Liabilities and Shareholders' Equity	$ 43,471	$ 48,163

Consolidated Balance Sheets (U5

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 1.25	$ 1.25
Common stock, shares authorized	6,000	6,000
Common stock, shares issued	3,014	3,014
Common stock, shares outstanding	3,014	3,014

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)	$ (418)	$ 1,156
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	2,123	$ 2,570
Loss on disposal of assets	(38)
Stock-based compensation	104	$ 100
Deferred income tax (benefit) expense	$ (178)	189
Change in inventory reserve		(174)
Provision for bad debts	$ 23	(7)
Changes in working capital:
Trade accounts receivables	302	(1,411)
Inventories	3,568	343
Other current assets	(414)	(381)
Accounts payable and accrued expenses	(1,431)	2,223
Net cash provided by operating activities	3,717	4,608
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment	(4,174)	$ (1,386)
Restricted Cash	(1,561)
Net cash used in investing activities	(5,735)	$ (1,386)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from lines of credit	2,663	2,260
Payments on lines of credit	(2,567)	(3,225)
Proceeds from export credit refinancing facility	3,420	5,666
Payments on export credit refinancing facility	$ (4,619)	(7,198)
Payments on capital leases		(11)
Proceeds from long-term bank debt	$ 3,740	236
Payments on long-term bank debt	$ (735)	(947)
Proceeds from the issuance of common stock and exercise of common stock options		11
Net cash provided by (used in) financing activities	$ 1,902	(3,208)
Effect of foreign currency exchange rate fluctuations on cash and cash equivalents	(453)	(198)
Net decrease in cash and cash equivalents	(569)	(184)
Cash and cash equivalents at beginning of period	2,657	2,920
Cash and cash equivalents at end of period	2,088	2,736
Supplemental cash flow disclosures:
Interest paid	112	275
Income taxes paid	$ 349	$ 78

Accounting Policies

Accounting Policies	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Accounting Policies	Note 1. Accounting Policies Basis of Presentation and Use of Estimates The accompanying interim consolidated financial statements (the “financial statements”) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The financial statements include the consolidated accounts of TOR Minerals International, Inc. (“TOR”, “we”, “us”, “our” or the “Company”) and its wholly-owned subsidiaries, TOR Processing and Trade, BV (“TPT”) and TOR Minerals Malaysia, Sdn. Bhd. (“TMM”). All significant intercompany transactions have been eliminated. All adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the consolidated financial position, results of operations and cash flows for the interim periods presented have been made. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to SEC rules and regulations. These financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2014, in our Annual Report on Form 10-K filed with the SEC on March 17, 2015. Operating results for the three and nine month periods ended September 30, 2015, are not necessarily indicative of the results for the year ending December 31, 2015. Restricted Cash As noted in the Company’s filings on Form 8-K, filed with the Securities and Exchange Commission on July 17, 2015, TPT entered into a facilities agreement (the “TPT Agreement”) with Rabobank on July 13, 2015, at which time Rabobank funded both the mortgage loan and the term loan (See Note 2). Under the terms of the TPT Agreement, the cash is restricted to payment of invoices related to TPT’s building expansion and equipment purchases. At September 30, 2015, TPT had €1,398,000 ($1,561,000) in restricted cash related to the TPT Agreement which is included as a non-current asset on the Company’s consolidated balance sheet. Income Taxes The Company records income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Income taxes consisted of federal income tax expense of approximately $237,000, state income tax expense of approximately $5,000 and foreign tax benefit of approximately $220,000 for the three month period ended September 30, 2015, as compared to a federal and state tax expense of approximately $163,000 and $2,000, respectively, and foreign tax benefit of approximately $104,000 for the same three month period in 2014. For the nine month period ended September 30, 2015, income taxes consisted of federal income tax benefit of approximately $31,000, state income tax expense of approximately $5,000 and foreign tax benefit of approximately $106,000, as compared to a federal and state tax expense of approximately $220,000 and $7,000, respectively, and foreign tax expense of approximately $60,000 for the same nine month period in 2014. When accounting for uncertainties in income taxes, we evaluate all tax years still subject to potential audit under the applicable state, federal and foreign income tax laws. We are subject to taxation in the United States, Malaysia and The Netherlands. Our federal income tax returns in the United States are subject to examination for the tax years ended December 31, 2012 through December 31, 2014. Our state tax return, which is filed in Texas, is subject to examination for the tax years ended December 31, 2010 through December 31, 2014. Our tax returns in various non-U.S. jurisdictions are subject to examination for various tax years dating back to December 31, 2010. As of January 1, 2015, we did not have any unrecognized tax benefits and there was no change during the nine month period ended September 30, 2015. In addition, we did not recognize any interest and penalties in our financial statements during the three and nine month periods ended September 30, 2015. If any interest or penalties related to any income tax liabilities are imposed in future reporting periods, we expect to record both of these items as components of income tax expense.

Debt and Notes Payable

Debt and Notes Payable	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Debt and Notes Payable	Note 2. Debt and Notes Payable Long-term Debt – Financial Institutions Following is a summary of our long-term debt to financial institutions as of September 30, 2015 and December 31, 2014, in thousands: September 30, 2015 December 31, (Unaudited) 2014 Fixed rate term note payable to a U.S. bank, with an interest rate of 5.5% at September 30, 2015, due January 1, 2016, secured by real estate, leasehold improvements, property, plant and equipment, inventory and accounts receivable of the Company's U.S. Operation. $ 153 $ 486 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at September 30, 2015, due July 1, 2029, secured by TPT's land and office building. (Balance in Euro at September 30, 2015, €221) 247 286 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at September 30, 2015, due January 31, 2030, secured by TPT's land and building. (Balance in Euro at September 30, 2015, €247) 276 316 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.0% per annum, due December 31, 2025, is secured by TPT's land and buildings. (Balance in Euro at September 30, 2015, €1,000) 1,117 - Variable rate Euro term note payable to a Netherlands bank, with a EURIBOR interest rate plus bank margin of 2.3% per annum, due December 31, 2020, is secured by TPT's assets. (Balance in Euro at September 30, 2015, €2,350) 2,624 - Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, 5.2% at September 30, 2015, due March 1, 2016, secured by TMM's property, plant and equipment. (Balance in Ringgit ("RM") at September 30, 2015, RM 584) 133 417 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, 5.2% at September 30, 2015, due October 25, 2018, secured by TMM's property, plant and equipment. (Balance in Ringgit at September 30, 2015, RM 3,500) 797 1,215 Total current maturities 5,347 2,720 As noted above, TPT entered into the TPT Agreement with Rabobank on July 13, 2015, which provides the following: Mortgage loan, in the amount of €1,000,000 ($1,117,000); Term loan, in the amount of €2,350,000 ($2,624,000); and Line of credit reduced from €1,100,000 to €500,000 ($558,000). The mortgage loan, which relates to a plant expansion at TPT, is amortized over a period of 10 years at an interest rate of 3% per annum and is fixed for a period of 5 years. The monthly principal payment of €8,333 ($9,304) is scheduled to begin January 31, 2016. The mortgage is secured by TPT’s real estate. The term loan, which relates to equipment purchases designed to improve production efficiencies and increase capacity at TPT, also reduced TPT’s existing line of credit (the “TPT Line”) from €1,100,000 to €500,000 ($1,228,000 to $558,000). The term loan, amortized over a period of 5 years, is secured by TPT’s assets. The interest rate, set for a period of three months, is based on the relevant EURIBOR rate plus the bank margin of 2.3% per annum was 2.203% at September 30, 2015. The monthly principal payment of €39,167 ($43,730) is schedule to begin January 31, 2016. Short-term Debt U.S. Operations On December 31, 2010, the Company’s U.S. Operation, located in Corpus Christi, Texas entered into a credit agreement, (the “Agreement”) with American Bank, N.A. (the “Lender”) which established a $1,000,000 line of credit (the “Line”), and on March 1, 2012, the Line was increased from $1,000,000 to $2,000,000. On May 15, 2013, the Company and the Lender entered into the second amendment which reduced the minimum interest rate floor on the Line from 5.5% to 4.5%. On January 17, 2014, the Company entered into the third amendment (the “Third Amendment”) to the Agreement with the Lender. Under the terms of the Third Amendment, the Company is required to maintain a ratio of cash flow to debt service of 1.0 to 1.0 for the four month period ended April 30, 2014, six month period ended June 30, 2014, nine month period ended September 30, 2014, and twelve month period ended December 31, 2014. Thereafter, the required ratio of cash flow to debt service shall be 1.25 to 1.0 measured on a rolling four quarter basis as originally detailed in the Agreement. The Company was in compliance with all financial and non-financial covenants for the rolling four quarter period ended September 30, 2015. On May 26, 2015, the Company entered into the fifth amendment (the “Fifth Amendment”) to the Agreement, with the Lender. Under the terms of the Fifth Amendment, the maturity date on the Line was extended from October 15, 2015 to October 15, 2016. Under the terms of the Agreement, as amended, the amount the Company is entitled to borrow under the Line is subject to a borrowing base, which is based on the loan value of the collateral pledged to the Lender to secure the indebtedness owing to the Lender by the Company. Amounts advanced under the Line bear interest at a variable rate equal to one percent per annum point above the Wall Street Journal Prime Rate as such prime rate changes from time to time, with a minimum floor rate of 4.5%. At September 30, 2015, no funds were outstanding on the Line. European Operations On July 13, 2015, the TPT Agreement reduced the TPT line from €1,100,000 to €500,000 ($1,228,000 to $558,000) and interest was changed from a variable interest rate of bank prime plus 2.8% to the average 1-month EURIBOR plus the bank margin of 3.3%, which was 3.194% at September 30, 2015. No funds were outstanding on the TPT line at September 30, 2015. TPT’s loan agreements covering the TPT line and term loans, included in “Long-term Debt – Financial Institutions” above, include subjective acceleration clauses that allow Rabobank to accelerate payment if, in the judgment of the bank, there are adverse changes in our business. Subjective acceleration clauses are customary in The Netherlands for such borrowings. However, if demand is made by Rabobank, we may be unable to refinance the demanded indebtedness, in which case the bank could foreclose on the assets of TPT. Asian Operations On August 24, 2015, TMM amended its short-term banking facility with HSBC to extend the maturity date from June 30, 2015 to June 30, 2016. The HSBC facility includes the following in RM: (1) overdraft of RM 500,000 ($114,000); (2) an import/export line (“ECR”) of RM 10,460,000 ($2,382,000); and (3) a foreign exchange contract limit of RM 5,000,000 ($1,139,000). At September 30, 2015, the outstanding balances on the ECR and the foreign exchange contract were RM 4,453,000 ($1,014,000) and RM 3,848,000 ($876,000), respectively, and at the current interest rates of 4.96% and 2.506%, respectively. On August 15, 2014, TMM amended its short term banking facility with RHB Bank Berhad (“RHB”) to extend the maturity date from March 24, 2014 to April 1, 2015. TMM is currently negotiating with RHB to extend the maturity date to April 21, 2016. The RHB facility includes the following: (1) an overdraft line of credit up to RM 1,000,000 ($228,000); (2) an ECR of RM 7,300,000 ($1,662,000); (3) a bank guarantee of RM 1,200,000 ($273,000); and (4) a foreign exchange contract limit of RM 25,000,000 ($5,693,000). At September 30, 2015, no funds were outstanding on the RHB facility. The banking facilities with both HSBC and RHB bear an interest rate on the respective overdraft facilities at 1.25% over bank prime, and the respective ECR facilities bear interest at 1.0% above the funding rate stipulated by the Export-Import Bank of Malaysia Berhad. The ECR facilities, which are a government supported financing arrangement specifically for exporters, are used by TMM for short-term financing of up to 180 days against customers’ and inter-company shipments. The borrowings under both the HSBC and the RHB short term credit facilities are subject to certain subjective acceleration covenants based on the judgment of the banks and a demand provision that provides that the banks may demand repayment at any time. A demand provision is customary in Malaysia for such facilities. The loan agreements are secured by TMM’s property, plant and equipment. However, if demand is made by HSBC or RHB, we may be unable to refinance the demanded indebtedness, in which case, the lenders could foreclose on the assets of TMM. While repatriation is allowed in the form of dividends, the credit facilities prohibit TMM from paying dividends, and the HSBC facility further prohibits loans to related parties without the prior consent of HSBC.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 3. Fair Value Measurements The following table summarizes the valuation of our financial instruments recorded on a fair value basis as of September 30, 2015 and December 31, 2014. The Company did not hold any non-financial assets and/or non-financial liabilities subject to fair value measurements at September 30, 2015 or at December 31, 2014. Fair Value Measurements (In Thousands) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Current Liability December 31, 2014 Currency forward contracts $ 26 $ - $ 26 $ - September 30, 2015 Currency forward contracts $ 72 $ - $ 72 $ - The fair value of the Company’s debt is based on estimates using standard pricing models and Level 2 inputs, including the Company’s estimated borrowing rate, that take into account the present value of future cash flows as of the consolidated balance sheet date. The computation of the fair value of these instruments is performed by the Company. The carrying amounts and estimated fair values of the Company’s long-term debt, including current maturities, are summarized below: September 30, 2015 December 31, 2014 (In Thousands) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including $ 5,347 $ 4,800 $ 2,720 $ 2,558

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Inventories	Note 4. Inventories Following is a summary of inventory at September 30, 2015 and December 31, 2014, in thousands: September 30, December 31, 2015 2014 Raw materials $ 5,393 $ 8,465 Work in progress 3,844 6,126 Finished goods 4,296 4,800 Supplies 810 915 Total Inventories 14,343 20,306 Inventory reserve (87 ) (131 ) Net Inventories $ 14,256 $ 20,175

Calculation of Basic and Dilute

Calculation of Basic and Diluted Earnings per Share	9 Months Ended
	Sep. 30, 2015
Earnings (loss) per common share:
Calculation of Basic and Diluted Earnings per Share	Note 5. Calculation of Basic and Diluted Earnings per Share The following table sets forth the computation of basic and diluted earnings per share: (in thousands, except per share amounts) Three Months Nine Months 2015 2014 2015 2014 Numerator: Net Income (Loss) $ (121 ) $ 296 $ (418 ) $ 1,156 Numerator for basic earnings (loss) per share - income available to common shareholders (121 ) 296 (418 ) 1,156 Effect of dilutive securities: Numerator for diluted earnings (loss) per share - income available to common shareholders after assumed conversions $ (121 ) $ 296 $ (418 ) $ 1,156 Denominator: Denominator for basic earnings (loss) per share - weighted-average shares 3,014 3,014 3,014 3,014 Effect of dilutive securities: Employee stock options - 4 - 1 Warrants - 376 - 388 Dilutive potential common shares - 380 - 389 Denominator for diluted earnings (loss) per share - weighted-average shares and assumed conversions 3,014 3,394 3,014 3,403 Basic earnings (loss) per common share $ (0.04 ) $ 0.10 $ (0.14 ) $ 0.38 Diluted earnings (loss) per common share $ (0.04 ) $ 0.09 $ (0.14 ) $ 0.34 For the three and nine month periods ended September 30, 2015, approximately 528,000 detachable warrants were excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. The warrants, issued in May 2009 with our six percent (6%) convertible subordinated debentures, have an exercise price of $2.65 and a maturity date of May 4, 2016. For the three and nine month periods ended September 30, 2015, approximately 146,000 employee stock options were excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. For the three and nine month periods ended September 30, 2014, approximately 134,000 employee stock options were excluded from the calculation of diluted earnings per share as the exercise price was greater than the market price of the common shares and, therefore, the effect would be anti-dilutive.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Information	Note 6. Segment Information The Company operates in the business of pigment manufacturing and related products in three geographic segments. All United States (“U.S.”) manufacturing is done at the facility located in Corpus Christi, Texas. Foreign manufacturing is done by the Company’s wholly-owned foreign operations, TMM, located in Malaysia, and TPT, located in The Netherlands. Product sales of inventory between the U.S., Asian and European operations are based on inter-company pricing, which includes an inter-company profit margin. In the geographic information, the location profit (loss) from all locations is reflective of these inter-company prices, as is inventory at the Corpus Christi location prior to elimination adjustments. Such presentation is consistent with the internal reporting reviewed by the Company’s chief operating decision maker. The elimination entries include an adjustment to the cost of sales resulting from the adjustment to ending inventory to eliminate inter-company profit, and the reversal of a similar adjustment from a prior period. To the extent there are net increases/declines period over period in Corpus Christi inventories that include an inter-company component, the net effect of these adjustments can decrease/increase location profit. Sales from the subsidiary to the parent company are based upon profit margins which represent competitive pricing of similar products. Intercompany sales consist primarily of ALUPREM®, Synthetic Rutile, HITOX® and TIOPREM®. A summary of the Company’s manufacturing operations by geographic segment is presented below: (In Thousands) United States Europe Asia Inter-Company Consolidated As of and for the three months ended: September 30, 2015 Net Sales: Customer sales $ 6,308 $ 2,059 $ 621 $ - $ 8,988 Intercompany sales 33 1,418 789 (2,240 ) - Total Net Sales $ 6,341 $ 3,477 $ 1,410 $ (2,240 ) $ 8,988 Location income (loss) $ (229 ) $ 138 $ (210 ) $ (180 ) $ (121 ) September 30, 2014 Net Sales: Customer sales $ 8,137 $ 2,341 $ 839 $ - $ 11,317 Intercompany sales - 1,936 2,430 (4,366 ) - Total Net Sales $ 8,137 $ 4,277 $ 3,269 $ (4,366 ) $ 11,317 Location income (loss) $ 135 $ 215 $ (201 ) $ 147 $ 296 (In Thousands) United States Europe Asia Inter-Company Consolidated As of and for the nine months ended: September 30, 2015 Net Sales: Customer sales $ 20,485 $ 6,418 $ 2,163 $ - $ 29,066 Intercompany sales 37 3,456 4,343 (7,836 ) - Total Net Sales $ 20,522 $ 9,874 $ 6,506 $ (7,836 ) $ 29,066 Location income (loss) $ (327 ) $ 152 $ (356 ) $ 113 $ (418 ) Location assets $ 17,026 $ 13,769 $ 12,676 $ - $ 43,471 September 30, 2014 Net Sales: Customer sales $ 24,534 $ 8,148 $ 4,159 $ - $ 36,841 Intercompany sales 58 5,903 6,315 (12,276 ) - Total Net Sales $ 24,592 $ 14,051 $ 10,474 $ (12,276 ) $ 36,841 Location income (loss) $ 181 $ 1,362 $ (630 ) $ 243 $ 1,156 Location assets $ 21,574 $ 10,577 $ 19,888 $ - $ 52,039

Stock Options and Equity Compen

Stock Options and Equity Compensation Plan	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options and Equity Compensation Plan	Note 7. Stock Options and Equity Compensation Plan For the three and nine month periods ended September 30, 2015, the Company recorded stock-based employee compensation expense of $29,000 and $104,000, respectively, as compared to $30,000 and $100,000 for the same three and nine month periods of 2014, respectively. This compensation expense is included in “selling, general and administrative expenses” in the accompanying consolidated statements of operations. The Company granted 6,000 and 20,500 stock options during the nine month periods ended September 30, 2015 and 2014, respectively. As of September 30, 2015, there was approximately $286,000 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 1.93 years. As most options issued under the Company’s 2000 Incentive Stock Option Plan are incentive stock options, the Company does not receive any excess tax benefits relating to the compensation expense recognized on vested options.

Derivatives and Other Financial

Derivatives and Other Financial Instruments	9 Months Ended
	Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Other Financial Instruments	Note 8. Derivatives and Other Financial Instruments The Company has exposure to certain risks relating to its ongoing business operations, including financial, market, political and economic risks. The following discussion provides information regarding our exposure to the risks of changing foreign currency exchange rates. The Company has not entered into these contracts for trading or speculative purposes in the past, nor do we currently anticipate entering into such contracts for trading or speculative purposes in the future. The foreign exchange contracts are used to mitigate uncertainty and volatility and to cover underlying exposures. Foreign Currency Forward Contracts We manage the risk of changes in foreign currency exchange rates, primarily at our Malaysian operation, through the use of foreign currency contracts. Foreign currency exchange contracts are used to protect the Company from the risk that the eventual cash flows resulting from transactions in foreign currencies, including sales and purchases transacted in a currency other than the functional currency, will be adversely affected by changes in exchange rates. We report the fair value of the derivatives on our consolidated balance sheets and changes in the fair value are recognized in earnings in the period of the change. At September 30, 2015, we marked these contracts to market, recording $72,000 as a current liability on the consolidated balance sheets. The following table summarizes the gross fair market value of all derivative instruments, which are not designated as hedging instruments and their location in our consolidated balance sheets at September 30, 2015 and December 31, 2014, in thousands: Liability Derivatives Derivative Instrument Location September 30, 2015 December 31, 2014 Foreign Currency Exchange Contracts Other Current Assets $ 72 $ 26 For the three and nine month periods ended September 30, 2015, we recorded a net loss on these contracts of $51,000 and $72,000, respectively, as a component of our net loss. For the three and nine month periods ended September 30, 2014, we recorded a net loss of $35,000 and $21,000, respectively, as a component of our operations income (loss). The following table summarizes, in thousands, the impact of the Company’s derivatives on the consolidated financial statements of operations for the three and nine month periods ended September 30, 2015 and 2014: Amount of Gain (Loss) Recognized in Operations Derivative Location of Gain Three Months Ended September 30, Nine Month Ended September 30, Instrument Instrument 2015 2014 2015 2014 Foreign Currency Exchange Contracts Gain (loss) on foreign currency exchange rate $ (51 ) $ (35) $ (72 ) $ (21)

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation and Use of Estimates	Basis of Presentation and Use of Estimates The accompanying interim consolidated financial statements (the “financial statements”) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The financial statements include the consolidated accounts of TOR Minerals International, Inc. (“TOR”, “we”, “us”, “our” or the “Company”) and its wholly-owned subsidiaries, TOR Processing and Trade, BV (“TPT”) and TOR Minerals Malaysia, Sdn. Bhd. (“TMM”). All significant intercompany transactions have been eliminated. All adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the consolidated financial position, results of operations and cash flows for the interim periods presented have been made. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to SEC rules and regulations. These financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2014, in our Annual Report on Form 10-K filed with the SEC on March 17, 2015. Operating results for the three and nine month periods ended September 30, 2015, are not necessarily indicative of the results for the year ending December 31, 2015.
Restricted Cash	As noted in the Company’s filings on Form 8-K, filed with the Securities and Exchange Commission on July 17, 2015, TPT entered into a facilities agreement (the “TPT Agreement”) with Rabobank on July 13, 2015, at which time Rabobank funded both the mortgage loan and the term loan (See Note 2). Under the terms of the TPT Agreement, the cash is restricted to payment of invoices related to TPT’s building expansion and equipment purchases. At September 30, 2015, TPT had €1,398,000 ($1,561,000) in restricted cash related to the TPT Agreement which is included as a non-current asset on the Company’s consolidated balance sheet.
Income Taxes	The Company records income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Income taxes consisted of federal income tax expense of approximately $237,000, state income tax expense of approximately $5,000 and foreign tax benefit of approximately $220,000 for the three month period ended September 30, 2015, as compared to a federal and state tax expense of approximately $163,000 and $2,000, respectively, and foreign tax benefit of approximately $104,000 for the same three month period in 2014. For the nine month period ended September 30, 2015, income taxes consisted of federal income tax benefit of approximately $31,000, state income tax expense of approximately $5,000 and foreign tax benefit of approximately $106,000, as compared to a federal and state tax expense of approximately $220,000 and $7,000, respectively, and foreign tax expense of approximately $60,000 for the same nine month period in 2014. When accounting for uncertainties in income taxes, we evaluate all tax years still subject to potential audit under the applicable state, federal and foreign income tax laws. We are subject to taxation in the United States, Malaysia and The Netherlands. Our federal income tax returns in the United States are subject to examination for the tax years ended December 31, 2012 through December 31, 2014. Our state tax return, which is filed in Texas, is subject to examination for the tax years ended December 31, 2010 through December 31, 2014. Our tax returns in various non-U.S. jurisdictions are subject to examination for various tax years dating back to December 31, 2010. As of January 1, 2015, we did not have any unrecognized tax benefits and there was no change during the nine month period ended September 30, 2015. In addition, we did not recognize any interest and penalties in our financial statements during the three and nine month periods ended September 30, 2015. If any interest or penalties related to any income tax liabilities are imposed in future reporting periods, we expect to record both of these items as components of income tax expense.

Debt and Notes Payable (Tables)

Debt and Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Schedule of Long-term Debt to Financial Institutions	Following is a summary of our long-term debt to financial institutions as of September 30, 2015 and December 31, 2014, in thousands: September 30, 2015 December 31, (Unaudited) 2014 Fixed rate term note payable to a U.S. bank, with an interest rate of 5.5% at September 30, 2015, due January 1, 2016, secured by real estate, leasehold improvements, property, plant and equipment, inventory and accounts receivable of the Company's U.S. Operation. $ 153 $ 486 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at September 30, 2015, due July 1, 2029, secured by TPT's land and office building. (Balance in Euro at September 30, 2015, €221) 247 286 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at September 30, 2015, due January 31, 2030, secured by TPT's land and building. (Balance in Euro at September 30, 2015, €247) 276 316 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.0% per annum, due December 31, 2025, is secured by TPT's land and buildings. (Balance in Euro at September 30, 2015, €1,000) 1,117 - Variable rate Euro term note payable to a Netherlands bank, with a EURIBOR interest rate plus bank margin of 2.3% per annum, due December 31, 2020, is secured by TPT's assets. (Balance in Euro at September 30, 2015, €2,350) 2,624 - Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, 5.2% at September 30, 2015, due March 1, 2016, secured by TMM's property, plant and equipment. (Balance in Ringgit ("RM") at September 30, 2015, RM 584) 133 417 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, 5.2% at September 30, 2015, due October 25, 2018, secured by TMM's property, plant and equipment. (Balance in Ringgit at September 30, 2015, RM 3,500) 797 1,215 Total current maturities 5,347 2,720

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Schedule of Valuation of Financial Instruments Recorded on a Fair Value Basis	The Company did not hold any non-financial assets and/or non-financial liabilities subject to fair value measurements at September 30, 2015 or at December 31, 2014. Fair Value Measurements (In Thousands) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Current Liability December 31, 2014 Currency forward contracts $ 26 $ - $ 26 $ - September 30, 2015 Currency forward contracts $ 72 $ - $ 72 $ -
Schedule of Carrying Amounts and Estimated Fair Values	The carrying amounts and estimated fair values of the Company’s long-term debt, including current maturities, are summarized below: September 30, 2015 December 31, 2014 (In Thousands) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including $ 5,347 $ 4,800 $ 2,720 $ 2,558

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory	Following is a summary of inventory at September 30, 2015 and December 31, 2014, in thousands: September 30, December 31, 2015 2014 Raw materials $ 5,393 $ 8,465 Work in progress 3,844 6,126 Finished goods 4,296 4,800 Supplies 810 915 Total Inventories 14,343 20,306 Inventory reserve (87 ) (131 ) Net Inventories $ 14,256 $ 20,175

Calculation of Basic and Dilu19

Calculation of Basic and Diluted Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings (loss) per common share:
Schedule of Computation of Basic and Diluted Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share: (in thousands, except per share amounts) Three Months Nine Months 2015 2014 2015 2014 Numerator: Net Income (Loss) $ (121 ) $ 296 $ (418 ) $ 1,156 Numerator for basic earnings (loss) per share - income available to common shareholders (121 ) 296 (418 ) 1,156 Effect of dilutive securities: Numerator for diluted earnings (loss) per share - income available to common shareholders after assumed conversions $ (121 ) $ 296 $ (418 ) $ 1,156 Denominator: Denominator for basic earnings (loss) per share - weighted-average shares 3,014 3,014 3,014 3,014 Effect of dilutive securities: Employee stock options - 4 - 1 Warrants - 376 - 388 Dilutive potential common shares - 380 - 389 Denominator for diluted earnings (loss) per share - weighted-average shares and assumed conversions 3,014 3,394 3,014 3,403 Basic earnings (loss) per common share $ (0.04 ) $ 0.10 $ (0.14 ) $ 0.38 Diluted earnings (loss) per common share $ (0.04 ) $ 0.09 $ (0.14 ) $ 0.34

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area	A summary of the Company’s manufacturing operations by geographic segment is presented below: (In Thousands) United States Europe Asia Inter-Company Consolidated As of and for the three months ended: September 30, 2015 Net Sales: Customer sales $ 6,308 $ 2,059 $ 621 $ - $ 8,988 Intercompany sales 33 1,418 789 (2,240 ) - Total Net Sales $ 6,341 $ 3,477 $ 1,410 $ (2,240 ) $ 8,988 Location income (loss) $ (229 ) $ 138 $ (210 ) $ (180 ) $ (121 ) September 30, 2014 Net Sales: Customer sales $ 8,137 $ 2,341 $ 839 $ - $ 11,317 Intercompany sales - 1,936 2,430 (4,366 ) - Total Net Sales $ 8,137 $ 4,277 $ 3,269 $ (4,366 ) $ 11,317 Location income (loss) $ 135 $ 215 $ (201 ) $ 147 $ 296 (In Thousands) United States Europe Asia Inter-Company Consolidated As of and for the nine months ended: September 30, 2015 Net Sales: Customer sales $ 20,485 $ 6,418 $ 2,163 $ - $ 29,066 Intercompany sales 37 3,456 4,343 (7,836 ) - Total Net Sales $ 20,522 $ 9,874 $ 6,506 $ (7,836 ) $ 29,066 Location income (loss) $ (327 ) $ 152 $ (356 ) $ 113 $ (418 ) Location assets $ 17,026 $ 13,769 $ 12,676 $ - $ 43,471 September 30, 2014 Net Sales: Customer sales $ 24,534 $ 8,148 $ 4,159 $ - $ 36,841 Intercompany sales 58 5,903 6,315 (12,276 ) - Total Net Sales $ 24,592 $ 14,051 $ 10,474 $ (12,276 ) $ 36,841 Location income (loss) $ 181 $ 1,362 $ (630 ) $ 243 $ 1,156 Location assets $ 21,574 $ 10,577 $ 19,888 $ - $ 52,039

Derivatives and Other Financi21

Derivatives and Other Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Gross Fair Market Value of Derivative Instruments	The following table summarizes the gross fair market value of all derivative instruments, which are not designated as hedging instruments and their location in our consolidated balance sheets at September 30, 2015 and December 31, 2014, in thousands: Liability Derivatives Derivative Instrument Location September 30, 2015 December 31, 2014 Foreign Currency Exchange Contracts Other Current Assets $ 72 $ 26
Schedule of Derivative Instruments	The following table summarizes, in thousands, the impact of the Company’s derivatives on the consolidated financial statements of operations for the three and nine month periods ended September 30, 2015 and 2014: Amount of Gain (Loss) Recognized in Operations Derivative Location of Gain Three Months Ended September 30, Nine Month Ended September 30, Instrument Instrument 2015 2014 2015 2014 Foreign Currency Exchange Contracts Gain (loss) on foreign currency exchange rate $ (51 ) $ (35) $ (72 ) $ (21)

Accounting Policies (Details Na

Accounting Policies (Details Narative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Accounting Policies Details Narative
RESTRICTED CASH, foreign	$ 1,561		$ 1,561
Federal income tax benefit	237	$ 163	31	$ 220
State income tax benefit	5	2	5	7
Foreign income tax benefit	$ 220	$ 104	$ 106	$ 60

Debt and Notes Payable (Details

Debt and Notes Payable (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Total current maturities	$ 5,347	$ 2,720
Fixed Rate Notes Payable to U.S. Bank, Due January 1, 2016 [Member]
Debt Instrument [Line Items]
Total current maturities	153	486
Fixed Rate Notes Payable to Netherlands Bank, Due July 1, 2029 [Member]
Debt Instrument [Line Items]
Total current maturities	247	286
Fixed Rate Notes Payable to Netherlands Bank, Due January 31, 2030 [Member]
Debt Instrument [Line Items]
Total current maturities	276	$ 316
Fixed Rate Notes Payable to Netherlands Bank, Due December 31, 2025 [Member]
Debt Instrument [Line Items]
Total current maturities	1,117
Fixed Rate Notes Payable to Netherlands Bank, Due December 31, 2020 [Member]
Debt Instrument [Line Items]
Total current maturities	2,624
Term Notes Payable to Malaysian Bank, Due March 1, 2016 [Member]
Debt Instrument [Line Items]
Total current maturities	133	$ 417
Term Notes Payable to Malaysian Bank, Due October 25, 2018 [Member]
Debt Instrument [Line Items]
Total current maturities	$ 797	$ 1,215

Debt and Notes Payable (Detai24

Debt and Notes Payable (Details Narrative) € in Thousands, MYR in Thousands, $ in Thousands

Jul. 13, 2015USD ($)

Sep. 01, 2014

Aug. 31, 2014USD ($)

Aug. 31, 2014MYR

Aug. 16, 2014

Aug. 15, 2014USD ($)

Aug. 15, 2014MYR

May. 15, 2013

Mar. 01, 2012USD ($)

Dec. 31, 2010USD ($)

Jan. 01, 2010EUR (€)

Mar. 20, 2007EUR (€)

May. 26, 2015

Sep. 30, 2015USD ($)

Sep. 30, 2015EUR (€)

Sep. 30, 2015MYR

Sep. 30, 2014USD ($)

Dec. 31, 2014

Jul. 13, 2015EUR (€)

Debt Instrument [Line Items]

Proceeds from lines of credit

$ 2,663

$ 2,260

TPT Agreement Rabobank [Member] | Mortgage Loan [Member]

Debt Instrument [Line Items]

Loan, principal amount

$ 1,117

Amortization Period

10 years

Interest rate

3.00%

3.00%

Monthly principal payment

$ 9,304

First payment due date

Jan. 31, 2016

TPT Agreement Rabobank [Member] | Mortgage Loan [Member] | EURO [Member]

Debt Instrument [Line Items]

Loan, principal amount | €

€ 1,000

TPT Agreement Rabobank [Member] | Term Loan [Member]

Debt Instrument [Line Items]

Loan, principal amount

$ 558

Amortization Period

5 years

Monthly principal payment

$ 43,730

First payment due date

Jan. 31, 2016

TPT Agreement Rabobank [Member] | Term Loan [Member] | EURO [Member]

Debt Instrument [Line Items]

Loan, principal amount | €

1,100

TPT Agreement Rabobank [Member] | Line of Credit [Member]

Debt Instrument [Line Items]

Description of interest rate terms

The interest rate will be based on the average 1-month EURIBOR plus the bank margin of 3.3 percentage point per annum.

Loan, principal amount

$ 550

TPT Agreement Rabobank [Member] | Line of Credit [Member] | EURO [Member]

Debt Instrument [Line Items]

Loan, principal amount | €

€ 500

Line Of Credit American Bank, N.A.[Member]

Debt Instrument [Line Items]

Short term line of credit

$ 2,000

$ 1,000

Proceeds from lines of credit

$ 1,000

Lines of credit interest rate (in percent)

5.50%

4.50%

Lines of credit expiration date

Oct. 15, 2016

Oct. 15, 2016

Description of variable rate basis

Amounts advanced under the Line bear interest at a variable rate equal to one percent per annum point above the Wall Street Journal Prime Rate as such prime rate changes from time to time, with a minimum floor rate of 4.5%

Line Of Credit Rabobank [Member]

Debt Instrument [Line Items]

Short term line of credit

$ 874

Description of variable rate basis

Variable interest rate of bank prime plus 2.8% (currently at 3.236%)

Variable interest rate of bank prime plus 2.8% (currently at 3.236%)

Variable interest rate of bank prime plus 2.8% (currently at 3.236%)

Description of line of credit collateral

Secured by TPT’s accounts receivable and inventory.

Secured by TPT’s accounts receivable and inventory.

Secured by TPT’s accounts receivable and inventory.

Line Of Credit Rabobank [Member] | EURO [Member]

Debt Instrument [Line Items]

Short term line of credit | €

€ 1,100

€ 650

€ 784

Line Of Credit HSBC Facility [Member]

Debt Instrument [Line Items]

Lines of credit expiration date

Jun. 30, 2015

Apr. 30, 2014

Apr. 30, 2014

Line Of Credit HSBC Facility [Member] | Bank Overdrafts [Member]

Debt Instrument [Line Items]

Short term line of credit

$ 114

Line Of Credit HSBC Facility [Member] | Bank Overdrafts [Member] | RM [Member]

Debt Instrument [Line Items]

Short term line of credit

500

Line Of Credit HSBC Facility [Member] | Import & Export Line (ECR facilities) [Member]

Debt Instrument [Line Items]

Short term line of credit

2,382

Line Of Credit HSBC Facility [Member] | Import & Export Line (ECR facilities) [Member] | RM [Member]

Debt Instrument [Line Items]

Short term line of credit | MYR

MYR 10,460

Line Of Credit HSBC Facility [Member] | Foreign Exchange Contract [Member]

Debt Instrument [Line Items]

Short term line of credit

$ 1,139

$ 876

Lines of credit interest rate (in percent)

2.506%

2.506%

2.506%

Line Of Credit HSBC Facility [Member] | Foreign Exchange Contract [Member] | RM [Member]

Debt Instrument [Line Items]

Short term line of credit | MYR

MYR 5,000

MYR 3,848

Line Of Credit RHB Bank Berhad [Member]

Debt Instrument [Line Items]

Lines of credit expiration date

Apr. 1, 2015

Apr. 1, 2015

Apr. 1, 2015

Line Of Credit RHB Bank Berhad [Member] | Bank Overdrafts [Member]

Debt Instrument [Line Items]

Short term line of credit

$ 28

Line Of Credit RHB Bank Berhad [Member] | Bank Overdrafts [Member] | RM [Member]

Debt Instrument [Line Items]

Short term line of credit | MYR

MYR 1,000

Line Of Credit RHB Bank Berhad [Member] | Import & Export Line (ECR facilities) [Member]

Debt Instrument [Line Items]

Short term line of credit

1,662

Line Of Credit RHB Bank Berhad [Member] | Import & Export Line (ECR facilities) [Member] | RM [Member]

Debt Instrument [Line Items]

Short term line of credit | MYR

7,300

Line Of Credit RHB Bank Berhad [Member] | Foreign Exchange Contract [Member]

Debt Instrument [Line Items]

Short term line of credit

5,693

$ 414

Lines of credit interest rate (in percent)

2.65%

2.65%

2.65%

Line Of Credit RHB Bank Berhad [Member] | Foreign Exchange Contract [Member] | RM [Member]

Debt Instrument [Line Items]

Short term line of credit | MYR

25,000

MYR 1,552

Line Of Credit RHB Bank Berhad [Member] | Bank Guarantee [Member]

Debt Instrument [Line Items]

Short term line of credit

$ 273

Line Of Credit RHB Bank Berhad [Member] | Bank Guarantee [Member] | RM [Member]

Debt Instrument [Line Items]

Short term line of credit | MYR

MYR 1,200

Line Of Credit HSBC Facility & RHB Bank Berhad [Member] | Bank Overdrafts [Member]

Debt Instrument [Line Items]

Description of interest rate terms

1.25% over bank prime

1.25% over bank prime

1.25% over bank prime

Line Of Credit HSBC Facility & RHB Bank Berhad [Member] | Import & Export Line (ECR facilities) [Member]

Debt Instrument [Line Items]

Short term line of credit

$ 1,047

Lines of credit interest rate (in percent)

4.85%

4.85%

4.85%

Description of interest rate terms

Bear interest at 1.0% above the funding rate stipulated by the Export-Import Bank of Malaysia Berhad.

Bear interest at 1.0% above the funding rate stipulated by the Export-Import Bank of Malaysia Berhad.

Bear interest at 1.0% above the funding rate stipulated by the Export-Import Bank of Malaysia Berhad.

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Liability
Currency forward contracts	$ 72	$ 26
Level 1 [Member]
Liability
Currency forward contracts
Level 2 [Member]
Liability
Currency forward contracts	$ 72	$ 26
Level 3 [Member]
Liability
Currency forward contracts

Fair Value Measurements (Deta26

Fair Value Measurements (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, including current portion	$ 5,347	$ 2,720
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, including current portion	$ 4,800	$ 2,558

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 5,393	$ 8,465
Work in progress	3,844	6,126
Finished goods	4,296	4,800
Supplies	810	915
Total Inventories	14,343	20,306
Inventory reserve	(87)	(131)
Net Inventories	$ 14,256	$ 20,175

Calculation of Basic and Dilu28

Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator:
Net Income (Loss)	$ (121)	$ 296	$ (418)	$ 1,156
Numerator for basic earnings (loss) per share - income available to common shareholders	(121)	296	(418)	1,156
Effect of dilutive securities:
Numerator for diluted earnings (loss) per share income available to common shareholders after assumed conversions	$ (121)	$ 296	$ (418)	$ 1,156
Denominator:
Denominator for basic earnings (loss) per share - weighted-average shares	3,014	3,014	3,014	3,014
Effect of dilutive securities:
Employee stock options		$ 4		$ 1
Warrants		$ 376		$ 388
Dilutive potential common shares		380		389
Denominator for diluted earnings (loss) per share - weighted-average shares and assumed conversions	3,014	3,394	3,014	3,403
Basic earnings (loss) per common share (in dollars per share)	$ (0.04)	$ 0.10	$ (0.14)	$ 0.38
Diluted earnings (loss) per common share (in dollars per share)	$ (0.04)	$ 0.09	$ (0.14)	$ 0.34

Calculation of Basic and Dilu29

Calculation of Basic and Diluted Earnings per Share (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Detachable Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings	528,000		528,000
Employee stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings	146,000	134,000	146,000	134,000

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Net Sales:
Customer sales	$ 8,988	$ 11,317	$ 29,066	$ 36,841
Intercompany sales
Total Net Sales	$ 8,988	$ 11,317	$ 29,066	$ 36,841
Location income (loss)	(121)	296	(418)	1,156
Location assets	43,471	52,039	43,471	52,039	$ 48,163
United States (Corpus Christi) [Member]
Net Sales:
Customer sales	6,308	$ 8,137	20,485	24,534
Intercompany sales	33		37	58
Total Net Sales	6,341	$ 8,137	20,522	24,592
Location income (loss)	(229)	135	(327)	181
Location assets	17,026	21,574	17,026	21,574
Europe (TPT) [Member]
Net Sales:
Customer sales	2,059	2,341	6,418	8,148
Intercompany sales	1,418	1,936	3,456	5,903
Total Net Sales	3,477	4,277	9,874	14,051
Location income (loss)	138	215	152	1,362
Location assets	13,769	10,577	13,769	10,577
Asia (TMM) [Member]
Net Sales:
Customer sales	621	839	2,163	4,159
Intercompany sales	789	2,430	4,343	6,315
Total Net Sales	1,410	3,269	6,506	10,474
Location income (loss)	(210)	(201)	(356)	(630)
Location assets	$ 12,676	$ 19,888	$ 12,676	$ 19,888
Inter-Company Eliminations [Member]
Net Sales:
Customer sales
Intercompany sales	$ (2,240)	$ (4,366)	$ (7,836)	$ (12,276)
Total Net Sales	(2,240)	(4,366)	(7,836)	(12,276)
Location income (loss)	$ 180	$ 147	$ 113	$ 243
Location assets

Segment Information (Details Na

Segment Information (Details Narrative)	9 Months Ended
	Sep. 30, 2015Segment
Segment Information Details Narrative
Number of geographic segments	3

Stock Options and Equity Comp32

Stock Options and Equity Compensation Plan (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based employee compensation expense	$ 29	$ 30	$ 104	$ 104
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to non-vested awards	$ 286		$ 286
Unrecognized compensation expense recognized over a weighted average period			1 year 11 months 5 days
Number of options granted to purchase shares of common stock			6,000	20,500

Derivatives and Other Financi33

Derivatives and Other Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accrued Expenses [Member] | Foreign Exchange Contract [Member] | Not Designated As Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative liability fair value gross asset	$ 72	$ 26

Derivatives and Other Financi34

Derivatives and Other Financial Instruments (Details 1) - Foreign Exchange Contract [Member] - Not Designated As Hedging Instrument [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Other Expense [Member]
Derivatives, Fair Value [Line Items]
Amount of Gain (Loss) Recognized in Operations	$ (51)	$ (35)
Foreign Currency Gain (Loss) [Member]
Derivatives, Fair Value [Line Items]
Amount of Gain (Loss) Recognized in Operations			$ (72)	$ (21)