TOR Minerals International (TORM) 10-Q 3 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 26, 2016
Document And Entity Information
Entity Registrant Name	TOR MINERALS INTERNATIONAL INC
Entity Central Index Key	842,295
Document Type	10-Q
Trading Symbol	torm
Document Period End Date	Sep. 30, 2016
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		3,541,703
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
NET SALES	$ 10,036	$ 8,988	$ 29,458	$ 29,066
Cost of sales	8,452	7,877	25,379	26,108
GROSS MARGIN	1,584	1,111	4,079	2,958
Technical services, research and development	56	44	146	143
Selling, general and administrative expenses	1,068	943	2,972	3,034
Loss on disposal of assets	4	38	3	38
OPERATING INCOME (LOSS)	456	86	958	(257)
OTHER EXPENSE:
Interest expense, net	(43)	(37)	(140)	(177)
Gain (loss) on foreign currency exchange rate	20	(157)	(59)	(134)
Other, net	0	9	28	18
Total Other Expense	(23)	(185)	(171)	(293)
INCOME (LOSS) BEFORE INCOME TAX	433	(99)	787	(550)
Income tax expense (benefit)	142	22	165	(132)
NET INCOME (LOSS)	$ 291	$ (121)	$ 622	$ (418)
Earnings (loss) per common share:
Basic	$ .08	$ (.04)	$ .19	$ (.14)
Diluted	$ .08	$ (.04)	$ .18	$ (.14)
Weighted average common shares outstanding:
Basic	3,542,000	3,014,000	3,319,000	3,014,000
Diluted	3,550,000	3,014,000	3,398,000	3,014,000

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
NET INCOME (LOSS)	$ 291	$ (121)	$ 622	$ (418)
Currency translation adjustment, net of tax:
Net foreign currency translation adjustment gain (loss)	(110)	(1,662)	456	(3,161)
Other comprehensive income (loss), net of tax	(110)	(1,662)	456	(3,161)
COMPREHENSIVE INCOME (LOSS)	$ 181	$ (1,783)	$ 1,078	$ (3,579)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 3,082	$ 813
Trade accounts receivable, net	4,606	3,534
Inventories, net	13,153	13,988
Other current assets	906	878
Total current assets	21,747	19,213
PROPERTY, PLANT AND EQUIPMENT, net	16,837	17,472
DEFERRED TAX ASSET, foreign	8	19
OTHER ASSETS	4	4
Total Assets	38,596	36,708
CURRENT LIABILITIES:
Accounts payable	2,404	2,432
Accrued expenses	1,461	1,007
Notes payable under lines of credit	80	179
Export credit refinancing facility	726	1,108
Current maturities of long-term debt - financial institutions	1,288	1,485
Total current liabilities	5,959	6,211
LONG-TERM DEBT - FINANCIAL INSTITUTIONS	3,084	3,479
DEFERRED TAX LIABILITY, domestic	192	262
DEFERRED TAX LIABILITY, foreign
Total liabilities	9,235	9,952
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock $1.25 par value: authorized, 6,000 shares; 3,542 shares issued and outstanding at September 30, 2016 and 3,014 at December 31, 2015	4,428	3,767
Additional paid-in capital	30,502	29,636
Accumulated deficit	(4,643)	(5,265)
Accumulated other comprehensive loss	(926)	(1,382)
Total shareholders' equity	29,361	26,756
Total Liabilities and Shareholders' Equity	$ 38,596	$ 36,708

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 1.25	$ 1.25
Common stock, shares authorized	6,000,000	6,000,000
Common stock, shares issued	3,542,000	3,542,000
Common stock, shares outstanding	3,542,000	3,542,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)	$ 622	$ (418)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	1,916	2,123
Loss on disposal of assets	3	38
Stock-based compensation	130	104
Deferred income tax benefit	(61)	(178)
Provision for (Recovery of) bad debts	(237)	23
Changes in working capital:
Trade accounts receivables	(751)	302
Inventories	1,105	3,568
Other current assets	(5)	(414)
Accounts payable and accrued expenses	341	(1,431)
Net cash provided by operating activities	3,063	3,717
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment	(894)	(4,174)
Restricted Cash	0	(1,561)
Net cash used in investing activities	(894)	(5,735)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from lines of credit	85	2,663
Payments on lines of credit	(191)	(2,567)
Proceeds from export credit refinancing facility	1,853	3,420
Payments on export credit refinancing facility	(2,280)	(4,619)
Proceeds from long-term bank debt	0	3,740
Payments on long-term bank debt	(765)	(735)
Proceeds from the issuance of common stock and exercise of warrants	1,398	0
Net cash provided by financing activities	100	1,902
Effect of foreign currency exchange rate fluctuations on cash and cash equivalents	0	(453)
Net increase (decrease) in cash and cash equivalents	2,269	(569)
Cash and cash equivalents at beginning of period	813	2,657
Cash and cash equivalents at end of period	3,082	2,088
Supplemental cash flow disclosures:
Interest paid	113	112
Income taxes paid	$ 73	$ 349

1. Accounting Policies

1. Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Accounting Policies	Basis of Presentation and Use of Estimates The accompanying interim condensed 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 condensed 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, 2015, in our Annual Report on Form 10-K filed with the SEC on March 7, 2016. Operating results for the nine month period ended September 30, 2016, are not necessarily indicative of the results for the year ending December 31, 2016. 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 $23,000, state income tax expense of approximately $1,000 and foreign tax expense of approximately $118,000 for the three month period ended September 30, 2016, as compared to a federal tax expense of approximately $237,000, state tax expense of approximately $5,000 and foreign tax benefit of approximately $220,000 for the same three month period in 2015. For the nine month period ended September 30, 2016, income taxes consisted of federal income tax benefit of approximately $71,000, state income tax expense of approximately $4,000 and foreign tax expense of approximately $232,000, as compared to a federal tax benefit of approximately $31,000, state tax expense of approximately $5,000 and foreign tax benefit of approximately $106,000 for the same nine month period in 2015. 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, 2013 through December 31, 2015. Our state tax return, which is filed in Texas, is subject to examination for the tax years ended December 31, 2011 through December 31, 2015. Our tax returns in various non-U.S. jurisdictions are subject to examination for various tax years dating back to December 31, 2011. As of January 1, 2016, we did not have any unrecognized tax benefits and there was no change during the nine month period ended September 30, 2016. In addition, we did not recognize any interest and penalties in our financial statements during the three and nine month periods ended September 30, 2016. 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.

2. Debt and Notes Payable

2. Debt and Notes Payable	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
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, 2016 and December 31, 2015, in thousands: September 30, 2016 December 31, 2015 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at September 30, 2016, due July 1, 2029, secured by TPT's land and buildings. (Balance in Euro at September 30, 2016, €202) $ 227 $ 235 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at September 30, 2016, due January 31, 2030, secured by TPT's land and buildings. (Balance in Euro at September 30, 2016, €229) 257 264 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, 2016, €925) 1,039 1,087 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 substantially all of TPT's assets. (Balance in Euro at September 30, 2016, €1,997) 2,244 2,554 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, which was 5.2% at September 30, 2016, due October 25, 2018, secured by TMM's property, plant and equipment. (Balance in Ringgit at September 30, 2016, RM 2,500) 605 756 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, secured by TMM's property, plant and equipment. Paid in full at maturity, March 31, 2016. - 68 Total 4,372 4,964 Less current maturities 1,288 1,485 Total long-term debt - financial institutions $ 3,084 $ 3,479 Short-term Debt U.S. Operations On December 31, 2010, the Company entered into a credit 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 to the credit agreement which reduced the minimum interest rate floor from 5.5% to 4.5%. On May 15, 2015, the Company and the Lender entered into the Fifth Amendment to the credit agreement which extended the Line from October 15, 2015 to October 15, 2016. On June 23, 2016, the Company and the Lender amended and restated the credit agreement (the “Agreement”). Under the terms of the Agreement, the Lender extended the maturity date on the Line from October 15, 2016 to October 15, 2017. In addition, the Company requested that the Lender reduce the Line from $2,000,000 to $1,000,000. Under the terms of the Agreement, the Company is required to maintain positive net earnings before taxes, interest, depreciation, amortization and all other non-cash charges on a rolling four-quarter basis. The Company was in compliance with all covenants at September 30, 2016. Under the terms of the Agreement, 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, 2016, no funds were outstanding on the Line. European Operations On July 13, 2015, TPT amended the short-term banking facility (the “Amended Agreement”) with Rabobank. Under the terms of the Amended Agreement, the TPT line of credit was reduced from €1,100,000 to €500,000 ($1,236,000 to $562,000 at September 30, 2016) 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 2.9% at September 30, 2016. No funds were outstanding on the TPT line of credit at September 30, 2016. 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. TMM is currently negotiating with HSBC to extend the maturity date to June 30, 2017. The HSBC facility includes the following in RM: (1) overdraft line of credit of RM 500,000 ($121,000 at September 30, 2016); (2) an import/export line (“ECR”) of RM 10,460,000 ($2,533,000 at September 30, 2016); and (3) a foreign exchange contract limit of RM 5,000,000 ($1,211,000 at September 30, 2016). At September 30, 2016, the outstanding balance on the ECR was RM 3,000,000 ($726,000 at September 30, 2016) at a current interest rate of 5.0%; and the outstanding balance on the overdraft line of credit was RM 330,000 ($80,000 at September 30, 2016) at a current interest rate of 7.85%. 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, 2017. The RHB facility includes the following: (1) an overdraft line of credit up to RM 1,000,000 ($242,000 at September 30, 2016); (2) an ECR of RM 7,300,000 ($1,768,000 at September 30, 2016); (3) a bank guarantee of RM 1,200,000 ($291,000 at September 30, 2016); and (4) a foreign exchange contract limit of RM 25,000,000 ($6,054,000 at September 30, 2016). At September 30, 2016, 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.

3. Fair Value Measurements

3. Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	The following table summarizes the valuation of our financial instruments recorded on a fair value basis as of September 30, 2016 and December 31, 2015. The Company did not hold any non-financial assets and/or non-financial liabilities subject to fair value measurements at September 30, 2016 or at December 31, 2015. The fair value of our financial instruments as of September 30, 2016, was zero. 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, 2015 Currency forward contracts $ 6 $ - $ 6 $ - Our foreign currency derivative financial instruments mitigate foreign currency exchange risks and include forward contracts. The forward contracts are marked-to-market at each balance sheet date with any resulting gain or loss recognized in income as part of the gain or loss on foreign currency exchange rates included under “Other Expense” on the Company’s consolidated statement of operations. The fair value of the currency forward contracts is determined using Level 2 inputs based on the currency rate in effect at the end of the reporting period. 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, 2016 December 31, 2015 (In Thousands) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion $ 4,372 $ 3,937 $ 4,964 $ 4,438 The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, trade receivables, payables and accrued liabilities, accrued income taxes and short-term borrowings approximate fair values due to the short-term nature of these instruments; accordingly, these items have been excluded from the above table.

4. Inventories

4. Inventories	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Following is a summary of inventory at September 30, 2016 and December 31, 2015, in thousands: September 30, December 31, 2016 2015 Raw materials $ 7,139 $ 6,310 Work in progress 1,843 4,168 Finished goods 3,825 3,552 Supplies 775 784 Total Inventories 13,582 14,814 Inventory reserve (429) (826) Net Inventories $ 13,153 $ 13,988

5. Calculation of Basic and Dil

5. Calculation of Basic and Diluted Earnings per Share	9 Months Ended
	Sep. 30, 2016
Earnings (loss) per common share:
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 Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Net Income (Loss) - basic and diluted $ 291 $ (121) $ 622 $ (418) Denominator: Denominator for basic earnings (loss) per share - weighted-average shares 3,542 3,014 3,319 3,014 Effect of dilutive securities: Employee stock options 8 - 3 - Warrants - - 76 - Dilutive potential common shares 8 - 79 - Denominator for diluted earnings (loss) per share - weighted-average shares and assumed conversions 3,550 3,014 3,398 3,014 Basic earnings (loss) per common share $ 0.08 $ (0.04) $ 0.19 $ (0.14) Diluted earnings (loss) per common share $ 0.08 $ (0.04) $ 0.18 $ (0.14) For the three and nine month periods ended September 30, 2016, approximately 130,000 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. 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.

6. Segment Information

6. Segment Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Information	The Company and its subsidiaries operate in the business of pigment manufacturing and related products in three geographic segments – United States, European and Asian. Our chief operating decision maker, or CODM, regularly reviews financial information about our segments in order to allocate resources and evaluate performance. Product sales of inventory between the U.S., European and Asian operations are based on inter-company pricing, which includes an inter-company profit margin. The segment income (loss), included in the table below, from each location 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 (Corpus Christi) Europe (TPT) Asia (TMM) Inter-Company Eliminations Consolidated For the three months ended: September 30, 2016 Net Sales: Customer sales $ 7,227 $ 2,249 $ 560 $ - $ 10,036 Intercompany sales 34 2,051 1,353 (3,438) - Total Net Sales $ 7,261 $ 4,300 $ 1,913 $ (3,438) $ 10,036 Segment income (loss) $ 9 $ 325 $ (22) $ (21) $ 291 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 Segment income (loss) $ (229) $ 138 $ (210) $ 180 $ (121) (In Thousands) United States (Corpus Christi) Europe (TPT) Asia (TMM) Inter-Company Eliminations Consolidated For the nine months ended: September 30, 2016 Net Sales: Customer sales $ 20,596 $ 6,954 $ 1,908 $ - $ 29,458 Intercompany sales 87 5,336 3,672 (9,095) - Total Net Sales $ 20,683 $ 12,290 $ 5,580 $ (9,095) $ 29,458 Segment income (loss) $ (269) $ 892 $ 24 $ (25) $ 622 As of September 30, 2016 Segments assets $ 17,819 $ 14,478 $ 6,299 $ - $ 38,596 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 Segment income (loss) $ (327) $ 152 $ (356) $ 113 $ (418) As of September 30, 2015 Segment assets $ 17,026 $ 13,769 $ 12,676 $ - $ 43,471

7. Stock Options and Equity Com

7. Stock Options and Equity Compensation Plan	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options and Equity Compensation Plan	For the three and nine month periods ended September 30, 2016, the Company recorded stock-based employee compensation expense of $45,000 and $130,000, respectively, as compared to $29,000 and $104,000 for the same three and nine month periods of 2015, respectively. This compensation expense is included in “selling, general and administrative expenses” in the accompanying consolidated statements of operations. The Company granted 49,000 and 6,000 stock options during the nine month periods ended September 30, 2016 and 2015, respectively. As of September 30, 2016, there was approximately $180,000 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of approximately one year.

8. Derivatives and Other Financ

8. Derivatives and Other Financial Instruments	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
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, 2016, we marked these contracts to market resulting in a zero balance to be included on the consolidated balance sheets as the outstanding contracts were perfectly hedged. 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, 2016 and December 31, 2015, in thousands: Liability Derivatives Derivative Instrument Location September 30, 2016 December 31, 2015 Foreign Currency Exchange Contracts Accrued Expenses $ - $ 6 For the three and nine month periods ended September 30, 2016, we recognized a gain on these contracts of $4,000 and $6,000, respectively, as compared to a net loss of $51,000 and $72,000 for the three and nine month periods ended September 30, 2015, respectively. The gain (loss) on our foreign currency contracts is located under “Gain (loss) on foreign currency exchange rate” on our condensed consolidated statements of operations. 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, 2016 and 2015: Amount of Gain (Loss) Recognized in Operations Derivative Location of Gain (Loss) on Derivative Three Months Ended September 30, Nine Months Ended September 30, Instrument Instrument 2016 2015 2016 2015 Foreign Currency Exchange Contracts Gain (loss) on foreign currency exchange rate $ 4 $ (51) $ 6 $ (72)

1. Accounting Policies (Policie

1. Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation and Use of Estimates	Basis of Presentation and Use of Estimates The accompanying interim condensed 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 condensed 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, 2015, in our Annual Report on Form 10-K filed with the SEC on March 7, 2016. Operating results for the nine month period ended September 30, 2016, are not necessarily indicative of the results for the year ending December 31, 2016.
Income Taxes	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 $23,000, state income tax expense of approximately $1,000 and foreign tax expense of approximately $118,000 for the three month period ended September 30, 2016, as compared to a federal tax expense of approximately $237,000, state tax expense of approximately $5,000 and foreign tax benefit of approximately $220,000 for the same three month period in 2015. For the nine month period ended September 30, 2016, income taxes consisted of federal income tax benefit of approximately $71,000, state income tax expense of approximately $4,000 and foreign tax expense of approximately $232,000, as compared to a federal tax benefit of approximately $31,000, state tax expense of approximately $5,000 and foreign tax benefit of approximately $106,000 for the same nine month period in 2015. 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, 2013 through December 31, 2015. Our state tax return, which is filed in Texas, is subject to examination for the tax years ended December 31, 2011 through December 31, 2015. Our tax returns in various non-U.S. jurisdictions are subject to examination for various tax years dating back to December 31, 2011. As of January 1, 2016, we did not have any unrecognized tax benefits and there was no change during the nine month period ended September 30, 2016. In addition, we did not recognize any interest and penalties in our financial statements during the three and nine month periods ended September 30, 2016. 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.

2. Debt and Notes Payable (Tabl

2. Debt and Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of Long-term Debt to Financial Institutions	September 30, 2016 December 31, 2015 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at September 30, 2016, due July 1, 2029, secured by TPT's land and buildings. (Balance in Euro at September 30, 2016, €202) $ 227 $ 235 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at September 30, 2016, due January 31, 2030, secured by TPT's land and buildings. (Balance in Euro at September 30, 2016, €229) 257 264 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, 2016, €925) 1,039 1,087 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 substantially all of TPT's assets. (Balance in Euro at September 30, 2016, €1,997) 2,244 2,554 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, which was 5.2% at September 30, 2016, due October 25, 2018, secured by TMM's property, plant and equipment. (Balance in Ringgit at September 30, 2016, RM 2,500) 605 756 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate 2% above the bank base lending rate, secured by TMM's property, plant and equipment. Paid in full at maturity, March 31, 2016. - 68 Total 4,372 4,964 Less current maturities 1,288 1,485 Total long-term debt - financial institutions $ 3,084 $ 3,479

3. Fair Value Measurements (Tab

3. Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of Valuation of Financial Instruments Recorded on a Fair Value Basis	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, 2015 Currency forward contracts $ 6 $ - $ 6 $ -
Schedule of Carrying Amounts and Estimated Fair Values	September 30, 2016 December 31, 2015 (In Thousands) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion $ 4,372 $ 3,937 $ 4,964 $ 4,438

4. Inventories (Tables)

4. Inventories (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	September 30, December 31, 2016 2015 Raw materials $ 7,139 $ 6,310 Work in progress 1,843 4,168 Finished goods 3,825 3,552 Supplies 775 784 Total Inventories 13,582 14,814 Inventory reserve (429) (826) Net Inventories $ 13,153 $ 13,988

5. Calculation of Basic and D19

5. Calculation of Basic and Diluted Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings (loss) per common share:
Schedule of Computation of Basic and Diluted Earnings Per Share	(in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Net Income (Loss) - basic and diluted $ 291 $ (121) $ 622 $ (418) Denominator: Denominator for basic earnings (loss) per share - weighted-average shares 3,542 3,014 3,319 3,014 Effect of dilutive securities: Employee stock options 8 - 3 - Warrants - - 76 - Dilutive potential common shares 8 - 79 - Denominator for diluted earnings (loss) per share - weighted-average shares and assumed conversions 3,550 3,014 3,398 3,014 Basic earnings (loss) per common share $ 0.08 $ (0.04) $ 0.19 $ (0.14) Diluted earnings (loss) per common share $ 0.08 $ (0.04) $ 0.18 $ (0.14)

6. Segment Information (Tables)

6. Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area	(In Thousands) United States (Corpus Christi) Europe (TPT) Asia (TMM) Inter-Company Eliminations Consolidated For the three months ended: September 30, 2016 Net Sales: Customer sales $ 7,227 $ 2,249 $ 560 $ - $ 10,036 Intercompany sales 34 2,051 1,353 (3,438) - Total Net Sales $ 7,261 $ 4,300 $ 1,913 $ (3,438) $ 10,036 Segment income (loss) $ 9 $ 325 $ (22) $ (21) $ 291 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 Segment income (loss) $ (229) $ 138 $ (210) $ 180 $ (121) (In Thousands) United States (Corpus Christi) Europe (TPT) Asia (TMM) Inter-Company Eliminations Consolidated For the nine months ended: September 30, 2016 Net Sales: Customer sales $ 20,596 $ 6,954 $ 1,908 $ - $ 29,458 Intercompany sales 87 5,336 3,672 (9,095) - Total Net Sales $ 20,683 $ 12,290 $ 5,580 $ (9,095) $ 29,458 Segment income (loss) $ (269) $ 892 $ 24 $ (25) $ 622 As of September 30, 2016 Segments assets $ 17,819 $ 14,478 $ 6,299 $ - $ 38,596 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 Segment income (loss) $ (327) $ 152 $ (356) $ 113 $ (418) As of September 30, 2015 Segment assets $ 17,026 $ 13,769 $ 12,676 $ - $ 43,471

8. Derivatives and Other Fina21

8. Derivatives and Other Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Gross Fair Market Value of Derivative Instruments	Liability Derivatives Derivative Instrument Location September 30, 2016 December 31, 2015 Foreign Currency Exchange Contracts Accrued Expenses $ - $ 6
Schedule of Derivative Instruments	Amount of Gain (Loss) Recognized in Operations Derivative Location of Gain (Loss) on Derivative Three Months Ended September 30, Nine Months Ended September 30, Instrument Instrument 2016 2015 2016 2015 Foreign Currency Exchange Contracts Gain (loss) on foreign currency exchange rate $ 4 $ (51) $ 6 $ (72)

1. Accounting Policies (Details

1. Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accounting Policies [Abstract]
Federal income tax benefit	$ 23	$ 237	$ 71	$ 31
State income tax benefit	1	5	4	5
Foreign income tax benefit	$ 118	$ 220	$ 232	$ 106

2. Debt and Notes Payable (Deta

2. Debt and Notes Payable (Details) € in Thousands, MYR in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2016EUR (€)	Sep. 30, 2016MYR	Dec. 31, 2015USD ($)
Debt Instrument [Line Items]
Notes payable to bank	$ 4,579			$ 4,964
Less current maturities	1,288			1,485
Total long-term debt - financial institutions	3,084			3,479
Note payable 1 [Member] | Netherlands bank [Member]
Debt Instrument [Line Items]
Notes payable to bank	$ 227			235
Stated interest rate	3.85%	3.85%	3.85%
Maturity date	Jul. 1, 2029
Note payable 1 [Member] | Netherlands bank [Member] | Euro Member Countries, Euro
Debt Instrument [Line Items]
Notes payable to bank | €		€ 202
Note payable 2 [Member] | Netherlands bank [Member]
Debt Instrument [Line Items]
Notes payable to bank	$ 257			264
Stated interest rate	3.30%	3.30%	3.30%
Maturity date	Jan. 31, 2030
Note payable 2 [Member] | Netherlands bank [Member] | Euro Member Countries, Euro
Debt Instrument [Line Items]
Notes payable to bank | €		€ 229
Note payable 3 [Member] | Netherlands bank [Member]
Debt Instrument [Line Items]
Notes payable to bank	$ 1,039			1,087
Stated interest rate	3.00%	3.00%	3.00%
Maturity date	Dec. 31, 2025
Note payable 3 [Member] | Netherlands bank [Member] | Euro Member Countries, Euro
Debt Instrument [Line Items]
Notes payable to bank | €		€ 925
Note payable 4 [Member] | Netherlands bank [Member]
Debt Instrument [Line Items]
Notes payable to bank	$ 2,244			2,554
Interest rate, variable rate basis	EURIBOR interest rate plus bnak margin of 2.3% per annum
Maturity date	Dec. 31, 2020
Note payable 4 [Member] | Netherlands bank [Member] | Euro Member Countries, Euro
Debt Instrument [Line Items]
Notes payable to bank | €		€ 1,997
Note payable 5 [Member] | Malaysian bank [Member]
Debt Instrument [Line Items]
Notes payable to bank	$ 605			756
Interest rate, variable rate basis	2% above bank base lending rate
Maturity date	Oct. 25, 2018
Note payable 5 [Member] | Malaysian bank [Member] | RM [Member]
Debt Instrument [Line Items]
Notes payable to bank | MYR			MYR 2,500
Notes payable 6 [Member] | Malaysian bank [Member]
Debt Instrument [Line Items]
Notes payable to bank	$ 0			$ 68
Interest rate, variable rate basis	2% above the bank base lending rate

2. Debt and Notes Payable (De24

2. Debt and Notes Payable (Details Narrative) - 9 months ended Sep. 30, 2016 € in Thousands, MYR in Thousands, $ in Thousands	USD ($)	EUR (€)	MYR
American Bank, N.A. [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	$ 1,000
Line of credit, balance at period end	$ 0
Lines of credit interest rate (in percent)	4.50%
Lines of credit expiration date	Oct. 15, 2017
Rabobank [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	$ 562
Line of credit, balance at period end	$ 0
Description of variable rate basis	Bank prime plus 2.8% to the average 1 month EURIBOR plus the bank margin of 3.3%
Rabobank [Member] | Line of Credit [Member] | EURO [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity | €		€ 500
Line of credit, balance at period end | €		€ 0
HSBC [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Lines of credit expiration date	Jun. 30, 2016
HSBC [Member] | Line of Credit [Member] | Overdraft Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	$ 121
Line of credit, balance at period end	$ 80
Lines of credit interest rate (in percent)	7.85%
Description of variable rate basis	1.25% over bank prime
HSBC [Member] | Line of Credit [Member] | ECR Import Export Line [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	$ 2,533
Line of credit, balance at period end	$ 726
Lines of credit interest rate (in percent)	5.00%
Description of variable rate basis	1.0% above the funding rate stipulated by the Export-Import Bank of Malaysia Berhad
HSBC [Member] | Line of Credit [Member] | Foreign Currency Exchange Contracts [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	$ 1,211
HSBC [Member] | Line of Credit [Member] | RM [Member] | Overdraft Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity | MYR			MYR 500
Line of credit, balance at period end | MYR			330
HSBC [Member] | Line of Credit [Member] | RM [Member] | ECR Import Export Line [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity | MYR			10,460
Line of credit, balance at period end | MYR			3,000
HSBC [Member] | Line of Credit [Member] | RM [Member] | Foreign Currency Exchange Contracts [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity | MYR			5,000
RHB Bank Berhad [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Lines of credit expiration date	Apr. 1, 2015
RHB Bank Berhad [Member] | Line of Credit [Member] | Overdraft Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	$ 242
Line of credit, balance at period end	$ 0
Description of variable rate basis	1.25% over bank prime
RHB Bank Berhad [Member] | Line of Credit [Member] | ECR Import Export Line [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	$ 768
Line of credit, balance at period end	$ 0
Description of variable rate basis	1.0% above the funding rate stipulated by the Export-Import Bank of Malaysia Berhad
RHB Bank Berhad [Member] | Line of Credit [Member] | Foreign Currency Exchange Contracts [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	$ 6,054
Line of credit, balance at period end	0
RHB Bank Berhad [Member] | Line of Credit [Member] | Bank Guarantee [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	291
Line of credit, balance at period end	$ 0
RHB Bank Berhad [Member] | Line of Credit [Member] | RM [Member] | Overdraft Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity | MYR			1,000
Line of credit, balance at period end | MYR			0
RHB Bank Berhad [Member] | Line of Credit [Member] | RM [Member] | ECR Import Export Line [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity | MYR			7,300
Line of credit, balance at period end | MYR			0
RHB Bank Berhad [Member] | Line of Credit [Member] | RM [Member] | Foreign Currency Exchange Contracts [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity | MYR			25,000
Line of credit, balance at period end | MYR			0
RHB Bank Berhad [Member] | Line of Credit [Member] | RM [Member] | Bank Guarantee [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity | MYR			1,200
Line of credit, balance at period end | MYR			MYR 0

3. Fair Value Measurements (Det

3. Fair Value Measurements (Details - Fair value) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current Asset
Currency forward contracts	$ 0
Current Liability
Currency forward contracts	$ 0	$ 6
Level 1 [Member]
Current Liability
Currency forward contracts		0
Level 2 [Member]
Current Liability
Currency forward contracts		6
Level 3 [Member]
Current Liability
Currency forward contracts		$ 0

3. Fair Value Measurements (D26

3. Fair Value Measurements (Details - debt) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, including current portion	$ 4,372	$ 4,964
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, including current portion	$ 3,937	$ 4,438

4. Inventories (Details)

4. Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 7,139	$ 6,310
Work in progress	1,843	4,168
Finished goods	3,825	3,552
Supplies	775	784
Total Inventories	13,582	14,814
Inventory reserve	(429)	(826)
Net Inventories	$ 13,153	$ 13,988

5. Calculation of Basic and D28

5. Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator:
Net Income (Loss)	$ 291	$ (121)	$ 622	$ (418)
Denominator:
Denominator for basic earnings (loss) per share - weighted-average shares	3,542,000	3,014,000	3,319,000	3,014,000
Effect of dilutive securities:
Employee stock options	8,000	0	3,000	0
Warrants	0	0	76,000	0
Dilutive potential common shares	8,000	0	79,000	0
Denominator for diluted earnings (loss) per share - weighted-average shares and assumed conversions	3,550,000	3,014,000	3,398,000	3,014,000
Basic earnings (loss) per common share	$ .08	$ (.04)	$ .19	$ (.14)
Diluted earnings (loss) per common share	$ .08	$ (.04)	$ .18	$ (.14)

5. Calculation of Basic and D29

5. Calculation of Basic and Diluted Earnings per Share (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Employee stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings	130,000	146,000	130,000	146,000

6. Segment Information (Details

6. Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Net Sales:
Customer sales	$ 10,036	$ 8,988	$ 29,458	$ 29,066
Intercompany sales	0	0	0	0
Total Net Sales	10,036	8,988	29,458	29,066
Net Income (Loss)	291	(121)	622	(418)
Assets	38,596	43,471	38,596	43,471	$ 36,708
Intersegment Eliminations [Member]
Net Sales:
Customer sales	0	0	0	0
Intercompany sales	(3,438)	(2,240)	(9,095)	(7,836)
Total Net Sales	(3,438)	(2,240)	(9,095)	(7,836)
Net Income (Loss)	(21)	180	(25)	113
Assets	0	0	0	0
United States (Corpus Christi) [Member]
Net Sales:
Customer sales	7,227	6,308	20,596	20,485
Intercompany sales	34	33	87	37
Total Net Sales	7,261	6,341	20,683	20,522
Net Income (Loss)	9	(229)	(269)	(327)
Assets	17,819	17,026	17,819	17,026
Europe (TPT) [Member]
Net Sales:
Customer sales	2,249	2,059	6,954	6,418
Intercompany sales	2,051	1,418	5,336	3,456
Total Net Sales	4,300	3,477	12,290	9,874
Net Income (Loss)	325	138	892	152
Assets	14,478	13,769	14,478	13,769
Asia (TMM) [Member]
Net Sales:
Customer sales	560	621	1,908	2,163
Intercompany sales	1,353	789	3,672	4,343
Total Net Sales	1,913	1,410	5,580	6,506
Net Income (Loss)	(22)	(210)	24	(356)
Assets	$ 6,299	$ 12,676	$ 6,299	$ 12,676

7. Stock Options and Equity C31

7. Stock Options and Equity Compensation Plan (Details Narrative) - Employee Stock Option [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stock-based employee compensation expense	$ 45	$ 29	$ 130	$ 104
Unrecognized compensation expense related to non-vested awards	$ 180		$ 180
Unrecognized compensation expense recognized over a weighted average period			1 year
Number of options granted to purchase shares of common stock			49,000	6,000

8. Derivatives and Other Fina32

8. Derivatives and Other Financial Instruments (Details - Liability derivatives) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Derivative liability	$ 0	$ 6
Accrued Expenses [Member] | Foreign Currency Exchange Contracts [Member] | Nondesignated [Member]
Derivatives, Fair Value [Line Items]
Derivative liability	$ 0	$ 6

8. Derivatives and Other Fina33

8. Derivatives and Other Financial Instruments (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Foreign Currency Exchange Contracts [Member] | Nondesignated [Member] | Foreign Currency Gain (Loss) [Member]
Derivatives, Fair Value [Line Items]
Amount of Gain Recognized in Operations	$ 4	$ (51)	$ 6	$ (72)