Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 09, 2017 | Jun. 30, 2016 | |
Document And Entity Information | |||
Entity Registrant Name | TOR MINERALS INTERNATIONAL INC | ||
Entity Central Index Key | 842,295 | ||
Document Type | 10-K | ||
Trading Symbol | torm | ||
Document Period End Date | Dec. 31, 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 Public Float | $ 6,601 | ||
Entity Common Stock, Shares Outstanding | 3,541,703 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
NET SALES | $ 38,456 | $ 37,059 |
Cost of sales | 33,361 | 35,183 |
GROSS MARGIN | 5,095 | 1,876 |
Technical services and research and development | 199 | 178 |
Selling, general and administrative expenses | 4,154 | 4,481 |
Loss on disposal of assets | 2 | 0 |
Loss on impairment of assets | 0 | 2,950 |
OPERATING INCOME (LOSS) | 740 | (5,733) |
OTHER INCOME (EXPENSE): | ||
Interest expense, net | (177) | (208) |
Loss on foreign currency exchange rate | (50) | (137) |
Other income, net | 38 | 24 |
Total Other Expense | (189) | (321) |
INCOME (LOSS) BEFORE INCOME TAX | 551 | (6,054) |
Income tax expense | 107 | 310 |
NET INCOME (LOSS) | $ 444 | $ (6,364) |
Income (Loss) per common share: | ||
Basic | $ .13 | $ (2.11) |
Diluted | $ .13 | $ (2.11) |
Weighted average common shares outstanding: | ||
Basic | 3,376,000 | 3,014,000 |
Diluted | 3,454,000 | 3,014,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME (LOSS) | $ 444 | $ (6,364) |
Currency translation adjustment, net of tax: | ||
Net foreign currency translation adjustment loss | (496) | (3,025) |
Other comprehensive loss, net of tax | (496) | (3,025) |
COMPREHENSIVE LOSS | $ (52) | $ (9,389) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 3,716 | $ 813 |
Trade accounts receivable, net | 3,557 | 3,534 |
Inventories, net | 11,776 | 13,988 |
Other current assets | 742 | 878 |
Total current assets | 19,791 | 19,213 |
PROPERTY, PLANT AND EQUIPMENT, net | 15,907 | 17,472 |
DEFERRED TAX ASSET, foreign | 27 | 19 |
OTHER ASSETS | 4 | 4 |
Total Assets | 35,729 | 36,708 |
CURRENT LIABILITIES: | ||
Accounts payable | 2,122 | 2,432 |
Accrued expenses | 1,136 | 1,007 |
Notes payable under lines of credit | 0 | 179 |
Export credit refinancing facility | 206 | 1,108 |
Current maturities of long-term debt - financial institutions | 1,142 | 1,485 |
Total current liabilities | 4,606 | 6,211 |
LONG-TERM DEBT - FINANCIAL INSTITUTIONS | 2,725 | 3,479 |
DEFERRED TAX LIABILITY, domestic | 127 | 262 |
Total liabilities | 7,458 | 9,952 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY: | ||
Common stock $1.25 par value: authorized, 6,000 shares; 3,542 shares issued and outstanding at December 31, 2016 and 3,014 at December 31, 2015 | 4,426 | 3,767 |
Additional paid-in capital | 30,544 | 29,636 |
Accumulated deficit | (4,821) | (5,265) |
Accumulated other comprehensive loss | (1,878) | (1,382) |
Total shareholders' equity | 28,271 | 26,756 |
Total Liabilities and Shareholders' Equity | $ 35,729 | $ 36,708 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 | 3,014,000 |
Common stock, shares outstanding | 3,542,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total |
Begning balance, amount at Dec. 31, 2014 | $ 3,767 | $ 29,503 | $ 1,099 | $ 1,643 | $ 36,012 |
Begning balance, shares at Dec. 31, 2014 | 3,014,000 | ||||
Share based compensation | 133 | 133 | |||
Net income (loss) | (6,364) | (6,364) | |||
Cumulative Translation Adjustment | (3,025) | (3,025) | |||
Ending balance, amount at Dec. 31, 2015 | $ 3,767 | 29,636 | (5,265) | (1,382) | 26,756 |
Ending balance, shares at Dec. 31, 2015 | 3,014,000 | ||||
Exercise of warrants, amount | $ 659 | 738 | 1,397 | ||
Exercise of warrants, shares | 528,000 | ||||
Share based compensation | 170 | 170 | |||
Net income (loss) | 444 | 444 | |||
Cumulative Translation Adjustment | (496) | (496) | |||
Ending balance, amount at Dec. 31, 2016 | $ 4,426 | $ 30,544 | $ (4,821) | $ (1,878) | $ 28,271 |
Ending balance, shares at Dec. 31, 2016 | 3,542,000 | 3,542,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income (Loss) | $ 444 | $ (6,364) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 2,561 | 2,863 |
Inventory impairment | 0 | 1,749 |
Loss on impairment of assets | 0 | 2,950 |
Loss on disposal of assets | 2 | 0 |
Share-based compensation | 170 | 133 |
Deferred income tax (benefit) expense | (144) | 378 |
(Recovery of) provision for bad debts | (237) | 297 |
Changes in working capital: | ||
Trade accounts receivables | 182 | 861 |
Inventories | 1,937 | 2,246 |
Other current assets | 114 | (157) |
Accounts payable and accrued expenses | (197) | (1,457) |
Net cash provided by operating activities | 4,832 | 3,499 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property, plant and equipment | (1,203) | (5,662) |
Proceeds from sales of property, plant and equipment | 2 | 18 |
Net cash used in investing activities | (1,201) | (5,644) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from lines of credit | 82 | 6,578 |
Payments on lines of credit | (254) | (7,349) |
Proceeds from export credit refinancing facility | 1,705 | 4,220 |
Payments on export credit refinancing facility | (2,560) | (5,194) |
Proceeds from long-term bank debt | 0 | 3,641 |
Payments on long-term bank debt | (931) | (1,032) |
Proceeds from the issuance of common stock through exercise of warrants | 1,397 | 0 |
Net cash (used in) provided by financing activities | (561) | 864 |
Effect of foreign currency exchange rate fluctuations on cash and cash equivalents | (167) | (563) |
Net increase (decrease) in cash and cash equivalents | 2,903 | (1,844) |
Cash and cash equivalents at beginning of year | 813 | 2,657 |
Cash and cash equivalents at end of year | 3,716 | 813 |
Supplemental cash flow disclosures: | ||
Interest paid | 147 | 134 |
Income taxes paid | 95 | 386 |
Non-cash investing activities: | ||
Capital expenditures financed through accounts payable and accrued expenses | $ 96 | $ 355 |
1. Description of Business
1. Description of Business | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | TOR Minerals International, Inc. and Subsidiaries (the "Company"), a Delaware Corporation, is engaged in a single industry, the manufacture and sale of mineral products for use as pigments and extenders, primarily in the manufacture of paints, industrial coatings plastics, and solid surface applications. The Company's global headquarters and U.S. manufacturing plant are located in Corpus Christi, Texas (“TOR U.S.” or “U.S. Operation”). The Asian Operation, TOR Minerals Malaysia, Sdn. Bhd. (“TMM”), is located in Ipoh, Malaysia, and the European Operation, TOR Processing and Trade, BV (“TPT”), is located in Hattem, The Netherlands. Basis of Presentation and Use of Estimates: In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, we evaluate our estimates, including those related to bad debt, inventories, income taxes, financing operations, contingencies and litigation. TOR bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Cash and Cash Equivalents: Allowance for Doubtful Accounts: Foreign Currency: TMM measures and records its transactions in terms of the local Malaysian currency, the Ringgit (“RM”), which is also the functional currency. As a result, gains and losses resulting from translating the balance sheet from RM to U.S. Dollars are recorded as cumulative translation adjustments (which are included in accumulated other comprehensive income, a separate component of shareholders’ equity) on the consolidated balance sheets. As of December 31, 2016, the cumulative translation adjustment included on the consolidated balance sheets was a loss of approximately 1,696,000. TPT’s functional currency is the Euro. As a result, gains and losses resulting from translating the balance sheet from Euros to U.S. Dollars are recorded as cumulative translation adjustments on the consolidated balance sheets. As of December 31, 2016, the cumulative translation adjustment included on the consolidated balance sheets was a loss of approximately $182,000. Inventory: 2 Overhead is charged to inventory based on normal capacity and we expense abnormal amounts of idle facility expense, freight and handling costs in the period incurred. For the year ended December 31, 2015, the Company recorded approximately $642,000 related to idle facility expense primarily at the Malaysian operations which is included in the 2015 Consolidated Statement of Operations as a component of “Cost of sales”. During 2016, TMM incurred $5,000 related to idle facility expense. Property, Plant and Equipment: Impairment of Long-Lived Assets: Revenue Recognition: Shipping and Handling: Earnings (Loss) Per Share: Income Taxes: 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, 2016. Our state tax return, which is filed in Texas, is subject to examination for the tax years ended December 31, 2012 through December 31, 2016. 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 year ended December 31, 2016. In addition, we did not recognize any interest and penalties in our consolidated financial statements during the years ended December 31, 2016 and 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. Share Based Compensation: Derivatives: (See Note 12, Derivatives and Other Financial Instruments). Recently Adopted Accounting Standards In August 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-15, Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern adoption of this pronouncement did not have a material effect on our consolidated financial position, results of operations or cash flows. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory adoption of this pronouncement did not have a material effect on our consolidated financial position, results of operations or cash flows. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810)”, an update to their existing consolidation model, which changes the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The new rules were effective for the Company in the first quarter of 2016. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations or cash flows. In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest”, which require debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The new rules were effective for the Company in the first quarter of 2016. The impact of adopting the new accounting guidance on classification of debt issuance costs on the Company’s 2015 Consolidated Balance Sheet is a reduction in noncurrent assets and long-term debt of $21,450. In August 2015, the FASB issued ASU 2015-15, “Interest - Imputation of Interest (Subtopic 835-30) - Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements”. The guidance clarifies accounting for debt issuance costs related to line-of-credit arrangements. The standard states that the FASB deems deferring debt issuance costs related to line-of-credit arrangements as an asset and amortizing over the term of the agreement to be appropriate, which is consistent with the Company’s existing accounting treatment for these costs. New Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” as amended by multiple standards updates. The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and IFRS. The pronouncement is effective for reporting periods beginning after December 15, 2017. We are in the initial stages of evaluating the effect of the standard on our financial statements and continue to evaluate the available transition methods. We will continue to evaluate the standard as well as additional changes, modifications or interpretations which may impact the Company. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes all existing guidance on accounting for leases in ASC Topic 840. ASU 2016-02 is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. ASU 2016-02 will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. ASU 2016-02 is required to be applied with a modified retrospective approach to each prior reporting period presented with various optional practical expedients. We are currently in the initial stages of evaluating the potential impact of adopting ASU 2016-02 on our financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. If an entity early adopts in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period and the entity must adopt all of the amendments from ASU 2016-09 in the same period. We have determined that the impact of this standard will not be material. We will adopt this standard in 2017. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In the second half of 2016, the FASB issued ASU Nos. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, and 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The objective of these updates is to reduce the diversity in practice in the classification of certain cash receipts and cash payments, and the presentation of restricted cash within an entity's statement of cash flows, respectively. These ASUs are effective for interim and annual fiscal periods beginning after December 15, 2017. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. |
2. Debt and Notes Payable
2. Debt and Notes Payable | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Notes Payable | Long-term Debt – Financial Institutions Below is a summary of our long-term debt to financial institutions as of December 31, 2016 and 2015: (In thousands) December 31, 2016 2015 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at December 31, 2016, due July 1, 2029, secured by TPT's land and buildings. (Euro balance at December 31, 2016, €196) 206 235 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at December 31, 2016, due January 31, 2030, secured by TPT's land and buildings. (Euro balance at December 31, 2016, €223) 234 264 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. (Euro balance at December 31, 2016, €900) 947 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. The interest rate at December 31, 2016 was 2.3%. (Euro balance at December 31, 2016, €1,880) 1,978 2,554 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 2% above the bank base lending rate, due October 25, 2018, secured by TMM's property, plant and equipment. The interest rate at December 31, 2016 was 5.2%. (Ringgit balance at December 31, 2016, RM 2,250) 502 756 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 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 3,867 4,964 Less current maturities 1,142 1,485 Total long-term debt - financial institutions $ 2,725 $ 3,479 United States Operations U.S. Credit Agreement and Term Loan On December 31, 2010, the Company’s U.S. operation entered into a credit agreement (the “Agreement”) with American Bank, N.A. (the “Lender”). The Agreement consisted of a $2 million term loan and a $1 million line of credit, which was later increased to $2 million. The term loan, which was scheduled to mature on January 1, 2016, was paid in full on November 4, 2015. European Operations On July 7, 2004, TPT entered into a mortgage loan (the “First Mortgage”) with Rabobank. The First Mortgage, in the amount of €485,000 ($510,000 at 12/31/2016), is to be repaid over 25 years and the interest rate is to be adjusted every five years. Under the terms of the First Mortgage, the interest was adjusted to a fixed rate of 3.85%, effective August 1, 2013, for a period of five years. Thereafter, the rate will change to Rabobank prime plus 1.75%. TPT utilized €325,000 ($342,000 at 12/31/2016) of the loan to finance the July 14, 2004, purchase of land and an office building, as well as to remodel the office building. The balance of the loan proceeds, €160,000 ($168,000 at 12/31/2016), was used for the expansion of TPT’s existing building. Monthly principal and interest payments commenced on September 1, 2004, and will continue through July 1, 2029. The monthly principal payment is €1,616 ($1,700 at 12/31/2016). The loan balance at December 31, 2016 was €196,000 ($206,000 at 12/31/2016). The First Mortgage is secured by the land and office building purchased on July 7, 2004. On January 3, 2005, TPT entered into a second mortgage loan (the “Second Mortgage”) with Rabobank to fund the acquisition of a 10,000 square foot warehouse with a loading dock that is located adjacent to TPT’s existing production facility. The Second Mortgage, in the amount of €470,000 ($495,000 at 12/31/2016), is to be repaid over 25 years and the interest rate is to be adjusted every five years. Under the terms of the Second Mortgage, the interest was adjusted to a fixed rate of 3.3%, effective January 3, 2013, for a period of five years. Thereafter, the rate will change to Rabobank prime plus 1.75%. Monthly principal and interest payments commenced on February 28, 2005 and will continue through January 31, 2030. The monthly principal payment is €1,566 ($1,648 at 12/31/2016). The Second Mortgage is secured by the land and building purchased by TPT on January 3, 2005. The loan balance at December 31, 2016 was €223,000 ($234,000 at 12/31/2016). On July 13, 2015, TPT entered into a third mortgage loan (the “Third Mortgage”) with Rabobank to fund the completion of its plant expansion. The Third Mortgage, in the amount of €1,000,000 ($1,052,000 at 12/31/2016), will be repaid over 10 years and the interest rate, currently fixed at 3%, is to be adjusted every five years. Thereafter, the rate will change to Rabobank prime plus 1.75%. Monthly principal payments of €8,333 ($8,769) commenced on January 31, 2016 and will continue through December 31, 2025. The Third Mortgage is secured by TPT’s real estate. The loan balance at December 31, 2016 was €900,000 ($947,000 at 12/31/2016). On July 13, 2015, TPT entered into a term loan (the “Term Loan”) with Rabobank to fund equipment purchases designed to improve production efficiencies and increase capacity at TPT. The Term Loan, in the amount of €2,350,000 ($2,473,000 at 12/31/2016), will be amortized over a period of 5 years and 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 percentage points per annum, which was 2.3% (bank margin which is floor) at December 31, 2016. The monthly principal payment of €39,167 ($41,215 at 12/31/2016) commenced on January 31, 2016 and continues through December 31, 2020. The loan balance at December 31, 2016 was €1,880,000 ($1,978,000 at 12/31/2016). At December 31, 2016, TPT was in compliance with all covenants. Asian Operations On March 2, 2012, TMM amended its banking facility (the “HSBC Facility”) with HSBC Bank Malaysia Berhad (“HSBC”), a Malaysian Bank, to include a new term loan, funded in Malaysian Ringgits (“RM”), in the amount of RM 3,500,000 ($780,000 at 12/31/2016) for the purpose of upgrading the operation’s SR production process. Under the terms of the HSBC Facility, the loan was paid in 35 equal monthly installments of RM 97,223 (excluding interest) and a final installment of RM 97,195 ($21,671 and $21,664, respectively, at 12/31/2016), which commenced March 1, 2013 and continued through March 1, 2016. The loan balance of RM 292,000 ($68,000 at 12/31/2015) was paid in full at maturity on March 31, 2016. On October 25, 2013, TMM entered into an agreement (the “HSBC Facility Amendment”) with HSBC to amend the HSBC Facility. Under the terms of the HSBC Facility Amendment, HSBC granted a new term loan to TMM in the amount of RM 5,000,000 ($1,114,000 at 12/31/2016) which was used to finance a portion of the cost of plant improvements to increase efficiency and production capacity. Under the terms of the HSBC Facility Amendment, the term loan is amortized over a period of five (5) years, and the interest rate is 2.0% per annum above the HSBC’s base lending rate. The interest rate at December 31, 2016 was 5.2% per annum. Monthly principal payments, in the amount of RM 83,333 ($18,575 at 12/31/2016), commenced October 25, 2013 and will continue through October 25, 2018. The loan balance at December 31, 2016 was RM 2,250,000 ($502,000 at 12/31/2016). At December 31, 2016, TMM was in compliance with all covenants. Short term Debt U.S. Operations On December 31, 2010, the Company entered into the Agreement with 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 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 Agreement which extended the Line from October 15, 2015 to October 15, 2016. On December 30, 2015, the Company and the Lender entered into the Sixth Amendment to the Agreement. Under the terms of the Sixth Amendment, 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. On June 23, 2016, the Company and the Lender amended and restated the credit agreement (the “Amended Agreement”). Under the terms of the Amended 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 Amended 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 December 31, 2016 Under the terms of the Amended 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 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 December 31, 2016, no funds were outstanding on the Line. European Operations On July 13, 2015, TPT amended the short term banking facility (the “TPT Amended Agreement”) with Rabobank. Under the terms of the TPT Amended Agreement, the TPT line of credit was reduced from €1,100,000 to €500,000 ($1,158,000 to $526,000 at December 31, 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%. The interest rate was 2.9% at December 31, 2016. No funds were outstanding on the TPT line of credit at December 31, 2016. TPT was in compliance with all covenants at December 31, 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 of June 30, 2017. The HSBC facility includes the following in RM: (1) overdraft of RM 500,000 ($111,000 at 12/31/2016); (2) an import/export line (“ECR”) of RM 10,460,000 ($2,331,000 at 12/31/2016); and (3) a foreign exchange contract limit of RM 5,000,000 ($1,114,000 at 12/31/2016). On February 21, 2017, TMM amended its short term banking facility with RHB Bank Berhad (“RHB”) to extend the maturity date from August 10, 2016 to August 11, 2017. The RHB facility includes the following: (1) a multi-trade line of RM 3,500,000 ($785,000 at 2/21/2017); (2) a bank guarantee of RM 1,200,000 ($269,000 at 2/21/2017); and (3) a foreign exchange contract line of RM 2,500,000 ($561,000 at 2/21/2017). At December 31, 2016, TMM had a balance outstanding under the credit facility for the ECR of RM 924,000 ($206,000 at 12/31/2016) at a current interest rate of 5.02%. TMM was in compliance with all covenants at December 31, 2016. 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 facility 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. The following is a summary of the future maturities of long-term debt to financial institutions as of December 31, 2016: Years Ending December 31, (In thousands) 2017 1,142 2018 640 2019 640 2020 640 2021 145 Thereafter 660 Total 3,867 |
3. Fair Value Measurements
3. Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 December 31, 2016 and 2015. The Company did not hold any non-financial assets and/or non-financial liabilities subject to fair value measurements on a non-recurring basis at December 31, 2016 or 2015. The fair value measurements consist of the following three levels: Level 1 inputs: . ., Level 2 inputs: Level 3 inputs: 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 $ - December 31, 2016 Currency forward contracts $ 2 $ - $ 2 $ - 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 rate 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: December 31, 2016 December 31, 2015 (In Thousands) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including $ 3,867 $ 3,785 $ 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 | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | A summary of inventories follows: (In thousands) December 31, 2016 2015 Raw materials $ 5,235 $ 6,310 Work in progress 1,636 4,168 Finished goods 4,587 3,552 Supplies 717 784 Total Inventories 12,175 14,814 Inventory reserve (399) (826) Net Inventories $ 11,776 $ 13,988 |
5. Property, Plant and Equipmen
5. Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Major classifications and expected lives of property, plant and equipment are summarized below: (In thousands) December 31, Expected Life 2016 2015 Land -- $ 292 $ 300 Office buildings 39 years 4,280 4,400 Production facilities 10 - 20 years 10,734 10,321 Machinery and equipment 3 - 15 years 24,492 22,412 Furniture and fixtures 3 - 20 years 1,706 1,494 Total 41,504 38,927 Less accumulated depreciation (25,968) (23,973) Property, plant and equipment, net 15,536 14,954 Construction in progress 371 2,518 $ 15,907 $ 17,472 The amounts of depreciation expense calculated on the Company’s property, plant and equipment for the year ended December 31, 2016 and 2015 was $2,561,000 and $2,863,000, respectively. |
6. Segment Information
6. Segment Information | 12 Months Ended |
Dec. 31, 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. United States European Asian The accounting policies of the segments are the same as those described in the Summary of Significant Policies (See Note 1). 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 profit (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. 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 segment inventories that include an inter-company component, the net effect of these adjustments can decrease/increase location profit. Such presentation is consistent with the internal reporting reviewed by the Company’s chief operating decision maker (“CODM”). Our CODM regularly reviews financial information about our segments in order to allocate resources and evaluate performance. Our CODM assesses segment performance based on segment sales and segment net income (loss) before depreciation and amortization, interest expense, income taxes, and other items which management does not believe reflect the underlying performance of the segment. For the year ended December 31, 2016, the U.S. operations received approximately 35% of its total third party sales revenue from a single customer; the European operations received approximately 17% from a single customer; and, the Asian operations received approximately 22% of its total third party sales revenue from a single customer. For the year ended December 31, 2015, the U.S. operations received approximately 25% of its total third party sales revenue from a single customer; the European operations received approximately 28% from two customers (16% and 12%); and, the Asian operations received approximately 34% of its total third party sales revenue from three customers (12%, 11%, and 11%). Sales from the subsidiary to the parent company are based upon profit margins which represent competitive pricing of similar products. Intercompany sales consisted of ALUPREM, SR, HITOX and TIOPREM. The Company's principal products, ALUPREM and HITOX, accounted for approximately 44% and 21%, respectively, of net consolidated sales in 2016 and approximately 36% and 28%, respectively in 2015. The Company sells its products to customers located in more than 60 countries. Sales to external customers are attributed to geographic area based on country of distribution. Sales to customers located in the U.S. represented approximately 62% and 58% for the years ended December 31, 2016 and 2015, respectively. For the year ended December 31, 2016 and 2015, sales to customers in Germany represented approximately 22% and 23%, respectively, of our total foreign sales and sales to customers in Italy represented 10% of our 2016 total foreign sales. Approximately 7% of the Company's employees are represented by an in-house collective bargaining agreement during 2016 as compared to approximately 12% in 2015. A summary of the Company’s manufacturing operations by geographic segment is presented below: (In thousands) United States European Asian Inter-Company Consolidated As of and for the years ended: December 31, 2016 Net Sales: Customer sales $ 26,678 $ 9,313 $ 2,465 $ - $ 38,456 Intercompany sales 98 7,357 4,535 (11,990) - Total Net Sales $ 26,776 $ 16,670 $ 7,000 $ (11,990) $ 38,456 Share based compensation $ 170 $ - $ - $ - $ 170 Depreciation $ 1,076 $ 1,343 $ 142 $ - $ 2,561 Interest (income) expense $ (2) $ 107 $ 72 $ - $ 177 Income tax (benefit) expense $ (131) $ 247 $ - $ (9) $ 107 Location profit (loss) $ (406) $ 826 $ 34 $ (10) $ 444 Capital expenditures $ 463 $ 735 $ 5 $ - $ 1,203 Location long-lived assets $ 5,291 $ 9,832 $ 784 $ - $ 15,907 Location assets $ 17,013 $ 13,417 $ 6,013 $ (714) $ 35,729 December 31, 2015 Net Sales: Customer sales $ 25,646 $ 8,619 $ 2,794 $ - $ 37,059 Intercompany sales 37 4,309 5,832 (10,178) - Total Net Sales $ 25,683 $ 12,928 $ 8,626 $ (10,178) $ 37,059 Share based compensation $ 133 $ - $ - $ - $ 133 Depreciation $ 1,011 $ 1,174 $ 678 $ - $ 2,863 Interest expense $ 13 $ 25 $ 170 $ - $ 208 Income tax (benefit) expense $ (318) $ (69) $ 681 $ 16 $ 310 Location profit (loss) $ (760) $ (225) $ (5,437) $ 58 $ (6,364) Capital expenditures $ 1,335 $ 4,676 $ 6 $ - $ 6,017 Location long-lived assets $ 5,904 $ 10,618 $ 950 $ - $ 17,472 Location assets $ 16,449 $ 13,617 $ 8,061 $ (1,419) $ 36,708 |
7. Quarterly Data (Unaudited)
7. Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data (Unaudited) | TOR Minerals International, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands, except per share amounts) 2016 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total NET SALES $ 9,572 $ 9,850 $ 10,036 $ 8,998 $ 38,456 Cost of sales 8,247 8,680 8,452 7,982 33,361 GROSS MARGIN 1,325 1,170 1,584 1,016 5,095 Technical services and research and development 38 52 56 53 199 Selling, general and administrative expenses 842 1,062 1,068 1,182 4,154 (Gain) Loss on disposal of asset (1) - 4 (1) 2 OPERATING INCOME (LOSS) 446 56 456 (218) 740 OTHER INCOME (EXPENSE): Interest expense, net (50) (47) (43) (37) (177) Income (loss) on foreign currency exchange rate (89) 10 20 9 (50) Other income, net 12 16 - 10 38 Total Other Expense (127) (21) (23) (18) (189) INCOME (LOSS) BEFORE INCOME TAX 319 35 433 (236) 551 Income tax expense 75 (52) 142 (58) 107 NET INCOME (LOSS) $ 244 $ 87 $ 291 $ (178) $ 444 Income (loss) per common share: Basic $ 0.08 $ 0.03 $ 0.08 $ (0.05) $ 0.13 Diluted $ 0.08 $ 0.03 $ 0.08 $ (0.05) $ 0.13 Weighted average common shares outstanding: Basic 3,014 3,402 3,542 3,542 3,376 Diluted 3,187 3,459 3,550 3,542 3,454 TOR Minerals International, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands, except per share amounts) 2015 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total NET SALES $ 10,115 $ 9,963 $ 8,988 $ 7,993 $ 37,059 Cost of sales 9,221 9,010 7,877 9,075 35,183 GROSS MARGIN 894 953 1,111 (1,082) 1,876 Technical services and research and development 55 44 44 35 178 Selling, general and administrative expenses 1,052 1,039 943 1,447 4,481 (Gain) Loss on disposal of asset - - 38 2,912 2,950 OPERATING INCOME (LOSS) (213) (130) 86 (5,476) (5,733) OTHER INCOME (EXPENSE): Interest expense, net (80) (60) (37) (31) (208) Income (loss) on foreign currency exchange rate 22 1 (157) (3) (137) Other income, net - 9 9 6 24 Total Other Expense (58) (50) (185) (28) (321) LOSS BEFORE INCOME TAX (271) (180) (99) (5,504) (6,054) Income tax (benefit) expense (81) (73) 22 442 310 NET LOSS $ (190) $ (107) $ (121) $ (5,946) $ (6,364) Loss per common share: Basic and diluted $ (0.06) $ (0.04) $ (0.04) $ (1.97) $ (2.11) Weighted average common shares outstanding: Basic and diluted 3,014 3,014 3,014 3,014 3,014 |
8. Calculation of Basic and Dil
8. Calculation of Basic and Diluted Earnings per Share | 12 Months Ended |
Dec. 31, 2016 | |
Income (Loss) per common share: | |
Calculation of Basic and Diluted Earnings per Share | (in thousands, except per share amounts) Years Ended December 31, 2016 2015 Numerator: Net Income (Loss) $ 444 $ (6,364) Denominator: Denominator for basic earnings (loss) per share 3,376 3,014 Dilutive potential common shares 78 - Denominator for diluted earnings (loss) per share - 3,454 3,014 Basic and diluted earnings (loss) per common share $ 0.13 $ (2.11) For the year ended December 31, 2015, approximately 528,000 detachable warrants (the “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, were exercised prior to the May 4, 2016 maturity at an exercise price of $2.65. Approximately 130,000 and 146,000 employee stock options were excluded from calculation of diluted earnings per share for the years ended December 31, 2016 and 2015, respectively, as the effect would be anti-dilutive. |
9. Income Taxes
9. Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The Company provides for deferred taxes on temporary differences between the financial statements and tax bases of assets using the enacted tax rates that are expected to apply to taxable income when the temporary differences are expected to reverse. At December 31, 2016, our U.S. operation had federal NOL carry-forwards of approximately $930,000 which resulted in a deferred tax asset (“DTA”) of approximately $316,000 which will begin to expire in 2033. We have determined that it is not necessary to provide a valuation allowance for our U.S. NOL as we believe the DTA is fully recoverable. At December 31, 2016, our Asian operation, TMM, had NOL carry-forwards of approximately $3,159,000 and certain other deferred tax assets of approximately $3,128,000 which resulted in a DTA of approximately $1,509,000. Due to the uncertainties regarding TMM’s ability to utilize these DTAs, the Company established a valuation allowance to fully reserve against these DTAs. The undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested. Accordingly, no provision for U.S. federal and state income taxes or foreign withholding taxes has been provided on approximately $4,000,000 of such cumulative undistributed earnings. Determination of the potential amount of unrecognized deferred U.S. income tax liability and foreign withholding taxes is not practicable because of the complexities associated with its hypothetical calculation. Components of Pretax Income (Loss) Years Ended December 31, (In thousands) 2016 2015 Domestic $ (537) $ (1,078) Foreign 1,088 (4,976) Pretax income (loss) $ 551 $ (6,054) Components of Income Tax Expense (Benefit) Years Ended December 31, 2016 2015 (In thousands) Current Deferred Total Current Deferred Total Federal $ - $ (140) $ (140) $ - $ (318) $ (318) State 4 - 4 5 - 5 Foreign 247 (4) 243 (73) 696 623 Total Income Tax $ 251 $ (144) $ 107 $ (68) $ 378 $ 310 The following table accounts for the difference between the actual tax provision and the amounts obtained by applying the statutory U.S. federal income tax rate of 34% to income before taxes. Effective Tax Rate Reconciliation Years Ended December 31, (In thousands) 2016 2015 Expense (benefit) computed at statutory rate $ 187 $ (2,059) Change in valuation allowance - Foreign (30) 1,703 Effect of items deductible for book not tax, net Share based compensation 40 45 Other 5 5 Effect of foreign tax credit 11 34 Effect of foreign tax rate differential (109) 578 State income taxes, net of Federal benefit 3 4 $ 107 $ 310 Significant Components of Deferred Taxes Year Ended December 31, (In thousands) 2016 2015 Deferred Tax Assets: Net operating loss carry-forwards - Domestic $ 316 $ 414 Net operating loss carry-forwards - Foreign 758 849 Intercompany profit 50 43 Alternative minimum tax credit carry-forwards 65 65 Domestic reserves 33 31 Foreign tax credits 642 675 Unrealized foreign currency losses - Foreign - 68 Other deferred assets - Domestic 57 21 Other deferred assets - Foreign 107 118 $ 2,028 $ 2,284 Valuation Allowance - Foreign (1,478) (1,703) Total deferred tax assets 550 581 Deferred Tax Liabilities: PP&E - Domestic $ 590 $ 732 PP&E - Foreign 52 30 Unrealized foreign currency gains - Domestic - 59 Unrealized foreign currency gains - Foreign 5 - Other 3 3 Total deferred tax liabilities 650 824 Net deferred tax asset (liability) $ (100) $ (243) |
10. Stock Options
10. Stock Options | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options | On February 21, 2000, the Company's Board of Directors approved the adoption of the 2000 Incentive Stock Option Plan (the “Plan”) for TOR Minerals International, Inc. The Plan provides for the award of a variety of incentive compensation arrangements, including restricted stock awards, performance units or other non-option awards, to such employees and directors as may be determined by a Committee of the Board. At the Annual Shareholders’ meeting on May 11, 2012, the maximum number of shares of the Company’s common stock that may be sold or issued under the Plan was increased to 500,000 shares subject to certain adjustments upon recapitalization, stock splits and combinations, merger, stock dividend and similar events; in addition the Plan was extended to May 23, 2022. For the years ended December 31, 2016 and 2015, the Company recorded $170,000 and $133,000, respectively, in stock-based employee compensation. This compensation cost is included in the general and administrative expenses and cost of sales in the accompanying consolidated statements of operations. On April 21, 2016, the Board of Directors granted the officers of the Company non-qualifying stock options (the “Performance Awards”). The Performance Awards, which are subject to the terms, definitions and provisions of the 2000 Incentive Plan as amended, consist of the following grants: Officer's Name Position Five Year Performance Grant Award Olaf Karasch President & Chief Executive Officer 150,000 Mark Schomp Executive Vice President, Sales & Marketing 50,000 Barbara Russell Treasurer & Chief Financial Officer 15,000 The Performance Awards, which vest over a five year period, are based solely on the basis of satisfaction of the performance criteria established annually by the Company’s Board of Directors. The Performance Periods begin on January 1 of each calendar year and ending on December 31 of such year. The first Performance Period began on January 1, 2016 and ended on December 31, 2016. The final Performance Period shall begin on January 1, 2020 and shall end on December 31, 2020. The exercise price for the Performance Awards was set at the closing price of the Company’s stock on January 4, 2016, as established by NASDAQ, at $4.51 per share. The 2016 Performance Awards consisted of 43,000 or one fifth of the five year total. Based on the satisfaction of the performance criteria established by the Company’s Board of Directors for the year ended December 31, 2016, the actual number of Performance Awards vested consisted of 13,975 or approximately 32.5% of the annual grant. The Company granted options to purchase 19,975 and 6,000 shares of common stock during the years ended December 31, 2016 and 2015, respectively. The weighted average fair value per option at the date of grant for options granted in the years ended December 31, 2016 and 2015 was $2.73 and $4.06, respectively, as valued using the Black-Scholes option-pricing model with the following weighted average assumptions: Twelve Months Ended December 31, 2016 2015 Risk-free interest rate 1.90% 2.00% Expected dividend yield 0.00% 0.00% Expected volatility 0.59 0.66 Expected term (in years) 7.00 7.00 The risk free interest rate is based on the Treasury Constant Maturity Rate as quoted by the Federal Reserve at the time of the grant for a term equivalent to the expected term of the grant. The estimated volatility is based on the historical volatility of our stock and other factors. The expected term of options represents the period of time the options are expected to be outstanding from grant date. The following table summarizes certain information regarding stock option activity: Options Total Outstanding Weighted Avg Range of Balances at 385,369 147,705 $13.24 $2.70 - $30.55 Granted 6,000 $6.34 $6.34 - $6.34 Forfeited or expired (7,400) $30.27 $29.50 - $30.55 Balances at 385,369 146,305 $13.24 $2.70 - $30.55 Granted 19,975 $4.50 $6.34 - $6.34 Forfeited or expired (13,116) $10.38 $29.50 - $30.55 Balances at 385,369 153,164 $10.84 $2.70 - $18.22 Of the 500,000 shares included in the Plan, there have been 114,631 options exercised. At December 31, 2016, there were 153,164 options outstanding and 232,205 were available for future issuance. The number of shares of common stock underlying options exercisable at December 31, 2016 was 132,164. The weighted-average remaining contractual life of those options is 5.12 years. Exercise prices on options outstanding at December 31, 2016, ranged from $2.70 to $19.99 per share as noted in the following table. Options Outstanding at December 31, 2016 2015 Range of Exercise Prices 39,164 19,189 $ 2.70 - $ 9.99 90,500 103,616 $ 10.00 - $ 14.99 23,500 23,500 $ 15.00 - $ 19.99 153,164 146,305 As of December 31, 2016, there was approximately $140,000 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 1.2809 years. |
11. Profit Sharing Plan
11. Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Profit Sharing Plan | The Company has a profit sharing plan that covers the U.S. employees. Contributions to the plan are at the option of and determined by the Board of Directors and are limited to the maximum amount deductible by the Company for Federal income tax purposes. For the years ended December 31, 2016 and 2015, there were no contributions to the plan. The Company also offers U.S. employees a 401(k) savings plan administered by an investment services company. Employees are eligible to participate in the plan after completing six months of service with the Company. The Company matches contributions up to 4% of the employee's eligible earnings. Total Company contributions to the 401(k) plan for the years ended December 31, 2016 and 2015 was approximately $66,000 and $72,000, respectively. |
12. Derivatives and Other Finan
12. Derivatives and Other Financial Instruments | 12 Months Ended |
Dec. 31, 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 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 December 31, 2016 and 2015, we marked these contracts to market, recording $2,000 and $6,000, respectively, as a current liability on the consolidated balance sheets. For the years ended December 31, 2016 and 2015, we recorded a net loss on these contracts of $3,000 and $80,000, respectively, as a component of our net loss. The following table summarizes the gross fair market value of all derivative instruments, in thousands, which are not designated as hedging instruments and their location in our consolidated balance sheets: Liability Derivatives Derivative Instrument Location December 31, 2016 December 31, 2015 Foreign Currency Accrued Expenses $ 2 $ 6 The following table summarizes the impact of the Company’s derivatives, in thousands, on the consolidated financial statements of operations for the years ended December 31, 2016 and 2015: Derivative Location of Loss on Derivative Amount of Loss Recognized in Operations Year Ended December 31, Instrument Instrument 2016 2015 Foreign Currency Loss on foreign $ 3 $ 80 |
13. Commitments and Contingenci
13. Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Land Lease The Company operates a plant in Corpus Christi, Texas. The facility is located in the Rincon Industrial Park on approximately 15 acres of land, with 13 acres leased from the Port of Corpus Christi Authority (the "Port") and approximately two acres owned by the Company. The lease payment is subject to an adjustment every 5 years for what the Port calls the "equalization valuation". This is used as a means of equalizing rentals on various Port lands and is determined solely at the discretion of the Port. The last equalization valuation was July 2012 at which time the annual lease increased from approximately $54,000 to $95,000. The Company and the Port executed an amended lease agreement on July 11, 2000, which extended the expiration date of the lease to June 30, 2027. Minimum future rental payments for non-cancelable leases as of December 31, 2016 for the next five years ending December 31 and in total thereafter are as follows: Years Ending December 31, (In thousands) 2017 $ 114 2018 95 2019 95 2020 95 2021 95 Thereafter 527 Total minimum lease payments $ 1,021 Rent expense under these leases was approximately $114,000 and $115,000 for the years ended December 31, 2016 and 2015, respectively. Contingencies There are claims arising in the normal course of business that are pending against the Company. While it is not feasible to predict or determine the outcome of any case, it is the opinion of management that the ultimate dispositions will have no material effect on the consolidated financial statements of the Company. The Company believes that it is in compliance with all applicable federal, state and local laws and regulations relating to the discharge of substances into the environment, and it does not expect that any material expenditure for environmental control facilities will be necessary in order to continue such compliance. |
14. Significant Customers
14. Significant Customers | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Significant Customers | For the years ended December 31, 2016 and 2015, one customer accounted for approximately 24% and 18%, respectively, of our total consolidated sales revenue. Amounts included in Accounts Receivable for this customer as of December 31, 2016 and 2015 were approximately $290,000 and 140,000, respectively. |
15. Foreign Customer Sales
15. Foreign Customer Sales | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Foreign Customer Sales | Revenues from sales to customers located outside the U.S. for the years ended December 31, 2016 and 2015 are as follows: Year Ended December 31, (In thousands) 2016 2015 Canada, Mexico & South/Central America $ 2,608 $ 3,894 Pacific Rim 2,417 2,906 Europe, Africa & Middle East 9,595 8,461 Total Foreign Sales $ 14,620 $ 15,261 For the years ended December 31, 2016 and 2015, Germany represented 22% and 23%, respectively, of our foreign sales and Italy represented 10% of our 2016 foreign sales. |
16. Sales by Product
16. Sales by Product | 12 Months Ended |
Dec. 31, 2016 | |
Revenue Recognition [Abstract] | |
Sales by Product | Revenues from sales by product for the years ended December 31, 2016 and 2015 are as follows (in thousands): Product 2016 2015 Variance ALUPREM $ 16,802 44% $ 13,319 36% $ 3,483 26% HITOX 8,006 21% 10,392 28% (2,386) -23% BARTEX / BARYPREM 8,217 21% 8,417 23% (200) -2% HALTEX / OPTILOAD 4,364 11% 3,462 9% 902 26% TIOPREM 742 2% 718 2% 24 3% SR - 0% 14 <1% (14) -100% OTHER 325 1% 737 2% (412) -56% Total $ 38,456 100% $ 37,059 100% $ 1,397 4% |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | TOR Minerals International, Inc. and Subsidiaries Schedule II - Valuation and Qualifying Accounts Years Ended December 31, 2016 and 2015 (In thousands) Additions Deductions Balance at Beginning of Year Charged to Operations Credited to Operations Written Off Effect of Exchange Rate Changes Balance at End of year Allowance for Doubtful Accounts Receivable: 2016 $ 366 $ 42 $ (295) $ - $ (11) $ 102 2015 $ 83 $ 312 $ (25) $ - $ (4) $ 366 Additions Deductions Balance at Beginning of Year Charged to Operations Credited to Operations Written Off Effect of Exchange Rate Changes Balance at End of year Inventory Reserve: 2016 $ 826 $ 60 $ (458) $ - $ (29) $ 399 2015 $ 85 $ 2,614 $ (1,869) $ - $ (4) $ 826 Additions Deductions Balance at Beginning of Year Charged to Operations Charged to Additional Paid-in Capital and Other Comprehensive Income Credited to Operations Credited to Additional Paid-in Capital and Other Comprehensive Income Other Adjustments Balance at End of year Deferred Tax Valuation Allowance: 2016 $ 1,703 $ - $ - $ (225) $ - $ - $ 1,478 2015 $ - $ 1,703 $ - $ - $ - $ - $ 1,703 |
1. Description of Business (Pol
1. Description of Business (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates: In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, we evaluate our estimates, including those related to bad debt, inventories, income taxes, financing operations, contingencies and litigation. TOR bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. |
Cash and Cash Equivalents | Cash and Cash Equivalents: |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts: |
Foreign Currency | Foreign Currency: TMM measures and records its transactions in terms of the local Malaysian currency, the Ringgit (“RM”), which is also the functional currency. As a result, gains and losses resulting from translating the balance sheet from RM to U.S. Dollars are recorded as cumulative translation adjustments (which are included in accumulated other comprehensive income, a separate component of shareholders’ equity) on the consolidated balance sheets. As of December 31, 2016, the cumulative translation adjustment included on the consolidated balance sheets was a loss of approximately 1,696,000. TPT’s functional currency is the Euro. As a result, gains and losses resulting from translating the balance sheet from Euros to U.S. Dollars are recorded as cumulative translation adjustments on the consolidated balance sheets. As of December 31, 2016, the cumulative translation adjustment included on the consolidated balance sheets was a loss of approximately $182,000. |
Inventory | Inventory: 2 Overhead is charged to inventory based on normal capacity and we expense abnormal amounts of idle facility expense, freight and handling costs in the period incurred. For the year ended December 31, 2015, the Company recorded approximately $642,000 related to idle facility expense primarily at the Malaysian operations which is included in the 2015 Consolidated Statement of Operations as a component of “Cost of sales”. During 2016, TMM incurred $5,000 related to idle facility expense. |
Property, Plant and Equipment | Property, Plant and Equipment: |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: |
Revenue Recognition | Revenue Recognition: |
Shipping and Handling | Shipping and Handling: |
Earnings (Loss) Per Share | Earnings (Loss) Per Share: |
Income Taxes | Income Taxes: 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, 2016. Our state tax return, which is filed in Texas, is subject to examination for the tax years ended December 31, 2012 through December 31, 2016. 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 year ended December 31, 2016. In addition, we did not recognize any interest and penalties in our consolidated financial statements during the years ended December 31, 2016 and 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. |
Share Based Compensation | Share Based Compensation: |
Derivatives | Derivatives: (See Note 12, Derivatives and Other Financial Instruments). |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In August 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-15, Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern adoption of this pronouncement did not have a material effect on our consolidated financial position, results of operations or cash flows. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory adoption of this pronouncement did not have a material effect on our consolidated financial position, results of operations or cash flows. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810)”, an update to their existing consolidation model, which changes the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The new rules were effective for the Company in the first quarter of 2016. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations or cash flows. In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest”, which require debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The new rules were effective for the Company in the first quarter of 2016. The impact of adopting the new accounting guidance on classification of debt issuance costs on the Company’s 2015 Consolidated Balance Sheet is a reduction in noncurrent assets and long-term debt of $21,450. In August 2015, the FASB issued ASU 2015-15, “Interest - Imputation of Interest (Subtopic 835-30) - Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements”. The guidance clarifies accounting for debt issuance costs related to line-of-credit arrangements. The standard states that the FASB deems deferring debt issuance costs related to line-of-credit arrangements as an asset and amortizing over the term of the agreement to be appropriate, which is consistent with the Company’s existing accounting treatment for these costs. |
New Accounting Standards | New Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” as amended by multiple standards updates. The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and IFRS. The pronouncement is effective for reporting periods beginning after December 15, 2017. We are in the initial stages of evaluating the effect of the standard on our financial statements and continue to evaluate the available transition methods. We will continue to evaluate the standard as well as additional changes, modifications or interpretations which may impact the Company. |
2. Debt and Notes Payable (Tabl
2. Debt and Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt to Financial Institutions | (In thousands) December 31, 2016 2015 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.85% at December 31, 2016, due July 1, 2029, secured by TPT's land and buildings. (Euro balance at December 31, 2016, €196) 206 235 Fixed rate Euro term note payable to a Netherlands bank, with an interest rate of 3.3% at December 31, 2016, due January 31, 2030, secured by TPT's land and buildings. (Euro balance at December 31, 2016, €223) 234 264 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. (Euro balance at December 31, 2016, €900) 947 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. The interest rate at December 31, 2016 was 2.3%. (Euro balance at December 31, 2016, €1,880) 1,978 2,554 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 2% above the bank base lending rate, due October 25, 2018, secured by TMM's property, plant and equipment. The interest rate at December 31, 2016 was 5.2%. (Ringgit balance at December 31, 2016, RM 2,250) 502 756 Malaysian Ringgit term note payable to a Malaysian bank, with an interest rate of 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 3,867 4,964 Less current maturities 1,142 1,485 Total long-term debt - financial institutions $ 2,725 $ 3,479 |
Scedule of the future maturities of long-term debt to financial institutions | Years Ending December 31, (In thousands) 2017 1,142 2018 640 2019 640 2020 640 2021 145 Thereafter 660 Total 3,867 |
3. Fair Value Measurements (Tab
3. Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 $ - December 31, 2016 Currency forward contracts $ 2 $ - $ 2 $ - |
Schedule of Carrying Amounts and Estimated Fair Values | December 31, 2016 December 31, 2015 (In Thousands) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including $ 3,867 $ 3,785 $ 4,964 $ 4,438 |
4. Inventories (Tables)
4. Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | (In thousands) December 31, 2016 2015 Raw materials $ 5,235 $ 6,310 Work in progress 1,636 4,168 Finished goods 4,587 3,552 Supplies 717 784 Total Inventories 12,175 14,814 Inventory reserve (399) (826) Net Inventories $ 11,776 $ 13,988 |
5. Property, Plant and Equipm29
5. Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment (Tables) | (In thousands) December 31, Expected Life 2016 2015 Land -- $ 292 $ 300 Office buildings 39 years 4,280 4,400 Production facilities 10 - 20 years 10,734 10,321 Machinery and equipment 3 - 15 years 24,492 22,412 Furniture and fixtures 3 - 20 years 1,706 1,494 Total 41,504 38,927 Less accumulated depreciation (25,968) (23,973) Property, plant and equipment, net 15,536 14,954 Construction in progress 371 2,518 $ 15,907 $ 17,472 |
6. Segment Information (Tables)
6. Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | (In thousands) United States European Asian Inter-Company Consolidated As of and for the years ended: December 31, 2016 Net Sales: Customer sales $ 26,678 $ 9,313 $ 2,465 $ - $ 38,456 Intercompany sales 98 7,357 4,535 (11,990) - Total Net Sales $ 26,776 $ 16,670 $ 7,000 $ (11,990) $ 38,456 Share based compensation $ 170 $ - $ - $ - $ 170 Depreciation $ 1,076 $ 1,343 $ 142 $ - $ 2,561 Interest (income) expense $ (2) $ 107 $ 72 $ - $ 177 Income tax (benefit) expense $ (131) $ 247 $ - $ (9) $ 107 Location profit (loss) $ (406) $ 826 $ 34 $ (10) $ 444 Capital expenditures $ 463 $ 735 $ 5 $ - $ 1,203 Location long-lived assets $ 5,291 $ 9,832 $ 784 $ - $ 15,907 Location assets $ 17,013 $ 13,417 $ 6,013 $ (714) $ 35,729 December 31, 2015 Net Sales: Customer sales $ 25,646 $ 8,619 $ 2,794 $ - $ 37,059 Intercompany sales 37 4,309 5,832 (10,178) - Total Net Sales $ 25,683 $ 12,928 $ 8,626 $ (10,178) $ 37,059 Share based compensation $ 133 $ - $ - $ - $ 133 Depreciation $ 1,011 $ 1,174 $ 678 $ - $ 2,863 Interest expense $ 13 $ 25 $ 170 $ - $ 208 Income tax (benefit) expense $ (318) $ (69) $ 681 $ 16 $ 310 Location profit (loss) $ (760) $ (225) $ (5,437) $ 58 $ (6,364) Capital expenditures $ 1,335 $ 4,676 $ 6 $ - $ 6,017 Location long-lived assets $ 5,904 $ 10,618 $ 950 $ - $ 17,472 Location assets $ 16,449 $ 13,617 $ 8,061 $ (1,419) $ 36,708 |
7. Quarterly Data (Unaudited) (
7. Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | TOR Minerals International, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands, except per share amounts) 2016 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total NET SALES $ 9,572 $ 9,850 $ 10,036 $ 8,998 $ 38,456 Cost of sales 8,247 8,680 8,452 7,982 33,361 GROSS MARGIN 1,325 1,170 1,584 1,016 5,095 Technical services and research and development 38 52 56 53 199 Selling, general and administrative expenses 842 1,062 1,068 1,182 4,154 (Gain) Loss on disposal of asset (1) - 4 (1) 2 OPERATING INCOME (LOSS) 446 56 456 (218) 740 OTHER INCOME (EXPENSE): Interest expense, net (50) (47) (43) (37) (177) Income (loss) on foreign currency exchange rate (89) 10 20 9 (50) Other income, net 12 16 - 10 38 Total Other Expense (127) (21) (23) (18) (189) INCOME (LOSS) BEFORE INCOME TAX 319 35 433 (236) 551 Income tax expense 75 (52) 142 (58) 107 NET INCOME (LOSS) $ 244 $ 87 $ 291 $ (178) $ 444 Income (loss) per common share: Basic $ 0.08 $ 0.03 $ 0.08 $ (0.05) $ 0.13 Diluted $ 0.08 $ 0.03 $ 0.08 $ (0.05) $ 0.13 Weighted average common shares outstanding: Basic 3,014 3,402 3,542 3,542 3,376 Diluted 3,187 3,459 3,550 3,542 3,454 TOR Minerals International, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands, except per share amounts) 2015 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total NET SALES $ 10,115 $ 9,963 $ 8,988 $ 7,993 $ 37,059 Cost of sales 9,221 9,010 7,877 9,075 35,183 GROSS MARGIN 894 953 1,111 (1,082) 1,876 Technical services and research and development 55 44 44 35 178 Selling, general and administrative expenses 1,052 1,039 943 1,447 4,481 (Gain) Loss on disposal of asset - - 38 2,912 2,950 OPERATING INCOME (LOSS) (213) (130) 86 (5,476) (5,733) OTHER INCOME (EXPENSE): Interest expense, net (80) (60) (37) (31) (208) Income (loss) on foreign currency exchange rate 22 1 (157) (3) (137) Other income, net - 9 9 6 24 Total Other Expense (58) (50) (185) (28) (321) LOSS BEFORE INCOME TAX (271) (180) (99) (5,504) (6,054) Income tax (benefit) expense (81) (73) 22 442 310 NET LOSS $ (190) $ (107) $ (121) $ (5,946) $ (6,364) Loss per common share: Basic and diluted $ (0.06) $ (0.04) $ (0.04) $ (1.97) $ (2.11) Weighted average common shares outstanding: Basic and diluted 3,014 3,014 3,014 3,014 3,014 |
8. Calculation of Basic and D32
8. Calculation of Basic and Diluted Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income (Loss) per common share: | |
Schedule of Computation of Basic and Diluted Earnings Per Share | (in thousands, except per share amounts) Years Ended December 31, 2016 2015 Numerator: Net Income (Loss) $ 444 $ (6,364) Denominator: Denominator for basic earnings (loss) per share 3,376 3,014 Dilutive potential common shares 78 - Denominator for diluted earnings (loss) per share - 3,454 3,014 Basic and diluted earnings (loss) per common share $ 0.13 $ (2.11) |
9. Income Taxes (Tables)
9. Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Components of Pretax Income (Loss) Years Ended December 31, (In thousands) 2016 2015 Domestic $ (537) $ (1,078) Foreign 1,088 (4,976) Pretax income (loss) $ 551 $ (6,054) |
Schedule of Components of Income Tax Expense (Benefit) | Components of Income Tax Expense (Benefit) Years Ended December 31, 2016 2015 (In thousands) Current Deferred Total Current Deferred Total Federal $ - $ (140) $ (140) $ - $ (318) $ (318) State 4 - 4 5 - 5 Foreign 247 (4) 243 (73) 696 623 Total Income Tax $ 251 $ (144) $ 107 $ (68) $ 378 $ 310 |
Schedule of Effective Income Tax Rate Reconciliation | Effective Tax Rate Reconciliation Years Ended December 31, (In thousands) 2016 2015 Expense (benefit) computed at statutory rate $ 187 $ (2,059) Change in valuation allowance - Foreign (30) 1,703 Effect of items deductible for book not tax, net Share based compensation 40 45 Other 5 5 Effect of foreign tax credit 11 34 Effect of foreign tax rate differential (109) 578 State income taxes, net of Federal benefit 3 4 $ 107 $ 310 |
Schedule of Deferred Tax Assets and Liabilities | Significant Components of Deferred Taxes Year Ended December 31, (In thousands) 2016 2015 Deferred Tax Assets: Net operating loss carry-forwards - Domestic $ 316 $ 414 Net operating loss carry-forwards - Foreign 758 849 Intercompany profit 50 43 Alternative minimum tax credit carry-forwards 65 65 Domestic reserves 33 31 Foreign tax credits 642 675 Unrealized foreign currency losses - Foreign - 68 Other deferred assets - Domestic 57 21 Other deferred assets - Foreign 107 118 $ 2,028 $ 2,284 Valuation Allowance - Foreign (1,478) (1,703) Total deferred tax assets 550 581 Deferred Tax Liabilities: PP&E - Domestic $ 590 $ 732 PP&E - Foreign 52 30 Unrealized foreign currency gains - Domestic - 59 Unrealized foreign currency gains - Foreign 5 - Other 3 3 Total deferred tax liabilities 650 824 Net deferred tax asset (liability) $ (100) $ (243) |
10. Stock Options (Tables)
10. Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of grant awards | Officer's Name Position Five Year Performance Grant Award Olaf Karasch President & Chief Executive Officer 150,000 Mark Schomp Executive Vice President, Sales & Marketing 50,000 Barbara Russell Treasurer & Chief Financial Officer 15,000 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Twelve Months Ended December 31, 2016 2015 Risk-free interest rate 1.90% 2.00% Expected dividend yield 0.00% 0.00% Expected volatility 0.59 0.66 Expected term (in years) 7.00 7.00 |
Schedule of Share-based Compensation, Stock Options, Activity | Options Total Outstanding Weighted Avg Range of Balances at 385,369 147,705 $13.24 $2.70 - $30.55 Granted 6,000 $6.34 $6.34 - $6.34 Forfeited or expired (7,400) $30.27 $29.50 - $30.55 Balances at 385,369 146,305 $13.24 $2.70 - $30.55 Granted 19,975 $4.50 $6.34 - $6.34 Forfeited or expired (13,116) $10.38 $29.50 - $30.55 Balances at 385,369 153,164 $10.84 $2.70 - $18.22 |
Schedule of Share-based Compensation by Range of Exercise Prices | Options Outstanding at December 31, 2016 2015 Range of Exercise Prices 39,164 19,189 $ 2.70 - $ 9.99 90,500 103,616 $ 10.00 - $ 14.99 23,500 23,500 $ 15.00 - $ 19.99 153,164 146,305 |
12. Derivatives and Other Fin35
12. Derivatives and Other Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Gross Fair Market Value of Derivative Instruments | Liability Derivatives Derivative Instrument Location December 31, 2016 December 31, 2015 Foreign Currency Accrued Expenses $ 2 $ 6 |
Schedule of Derivative Instruments | Derivative Location of Loss on Derivative Amount of Loss Recognized in Operations Year Ended December 31, Instrument Instrument 2016 2015 Foreign Currency Loss on foreign $ 3 $ 80 |
13. Commitments and Contingen36
13. Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Years Ending December 31, (In thousands) 2017 $ 114 2018 95 2019 95 2020 95 2021 95 Thereafter 527 Total minimum lease payments $ 1,021 |
15. Foreign Customer Sales (Tab
15. Foreign Customer Sales (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Schedule of foreign customer sales | Year Ended December 31, (In thousands) 2016 2015 Canada, Mexico & South/Central America $ 2,608 $ 3,894 Pacific Rim 2,417 2,906 Europe, Africa & Middle East 9,595 8,461 Total Foreign Sales $ 14,620 $ 15,261 |
16. Sales by Product (Tables)
16. Sales by Product (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Revenue Recognition [Abstract] | |
Revenues from sales by product | Product 2016 2015 Variance ALUPREM $ 16,802 44% $ 13,319 36% $ 3,483 26% HITOX 8,006 21% 10,392 28% (2,386) -23% BARTEX / BARYPREM 8,217 21% 8,417 23% (200) -2% HALTEX / OPTILOAD 4,364 11% 3,462 9% 902 26% TIOPREM 742 2% 718 2% 24 3% SR - 0% 14 <1% (14) -100% OTHER 325 1% 737 2% (412) -56% Total $ 38,456 100% $ 37,059 100% $ 1,397 4% |
Schedule II - Valuation and Q39
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | TOR Minerals International, Inc. and Subsidiaries Schedule II - Valuation and Qualifying Accounts Years Ended December 31, 2016 and 2015 (In thousands) Additions Deductions Balance at Beginning of Year Charged to Operations Credited to Operations Written Off Effect of Exchange Rate Changes Balance at End of year Allowance for Doubtful Accounts Receivable: 2016 $ 366 $ 42 $ (295) $ - $ (11) $ 102 2015 $ 83 $ 312 $ (25) $ - $ (4) $ 366 Additions Deductions Balance at Beginning of Year Charged to Operations Credited to Operations Written Off Effect of Exchange Rate Changes Balance at End of year Inventory Reserve: 2016 $ 826 $ 60 $ (458) $ - $ (29) $ 399 2015 $ 85 $ 2,614 $ (1,869) $ - $ (4) $ 826 Additions Deductions Balance at Beginning of Year Charged to Operations Charged to Additional Paid-in Capital and Other Comprehensive Income Credited to Operations Credited to Additional Paid-in Capital and Other Comprehensive Income Other Adjustments Balance at End of year Deferred Tax Valuation Allowance: 2016 $ 1,703 $ - $ - $ (225) $ - $ - $ 1,478 2015 $ - $ 1,703 $ - $ - $ - $ - $ 1,703 |
1. Description of Business (Det
1. Description of Business (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reserve for doubtful accounts | $ 366 | $ 102 | $ 366 | $ 83 | |||
Write down inventory | 0 | 1,749 | |||||
Reserve for obsolescence and unmarketable inventory | 826 | 399 | 826 | $ 85 | |||
Idle facility expense, freight and handling costs | 642 | 642 | |||||
Loss on impairment of assets | $ 2,912 | $ 38 | $ 0 | $ 0 | 0 | 2,950 | |
Share based compensation | 170 | 133 | |||||
HITOX [Member] | |||||||
Write down inventory | $ 1,749 | ||||||
TOR Minerals Malaysia [Member] | |||||||
Cumulative translation adjustment | 1,696 | ||||||
Idle facility expense, freight and handling costs | 5 | ||||||
TOR Processing and Trade, BV [Member] | |||||||
Cumulative translation adjustment | $ 182 |
2. Debt and Notes Payable (Deta
2. Debt and Notes Payable (Details - Long term debt) € in Thousands, MYR in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016MYR | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||||
Note payable to bank | $ 3,867 | $ 4,964 | ||
Less current maturities | 1,142 | 1,485 | ||
Total long-term debt - financial institutions | 2,725 | 3,479 | ||
Euro term note 1 [Member] | Rabobank Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | $ 206 | 235 | ||
Debt maturity date | Jul. 1, 2029 | |||
Debt stated interest rate | 3.85% | 3.85% | 3.85% | |
Debt collateral | Secured by TPT's land and buildings | |||
Euro term note 1 [Member] | Rabobank Bank [Member] | EURO [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | € | € 196 | |||
Euro term note 2 [Member] | Rabobank Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | $ 234 | 264 | ||
Debt maturity date | Jan. 31, 2030 | |||
Debt stated interest rate | 3.30% | 3.30% | 3.30% | |
Debt collateral | Secured by TPT's land and buildings | |||
Euro term note 2 [Member] | Rabobank Bank [Member] | EURO [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | € | € 223 | |||
Euro term note 3 [Member] | Rabobank Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | $ 947 | 1,087 | ||
Debt maturity date | Dec. 31, 2025 | |||
Debt stated interest rate | 3.00% | 3.00% | 3.00% | |
Debt collateral | Secured by TPT's land and buildings | |||
Euro term note 3 [Member] | Rabobank Bank [Member] | EURO [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | € | € 900 | |||
Euro term note 4 [Member] | Rabobank Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | $ 1,978 | 2,554 | ||
Debt maturity date | Dec. 31, 2020 | |||
Debt collateral | Secured by substantially all of TPT's assets | |||
Debt interest variable rate | EURIBOR interest rate plus bank margin of 2.3% per annum | |||
Debt effective interest rate | 2.30% | 2.30% | 2.30% | |
Euro term note 4 [Member] | Rabobank Bank [Member] | EURO [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | € | € 1,880 | |||
Malaysian term note [Member] | Malaysian Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | $ 502 | 756 | ||
Debt maturity date | Oct. 25, 2018 | |||
Debt collateral | Secured by TMM's property, plant and equipment | |||
Debt interest variable rate | 2% above the bank base lending rate | |||
Debt effective interest rate | 5.20% | 5.20% | 5.20% | |
Malaysian term note [Member] | Malaysian Bank [Member] | RM [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | MYR | MYR 2,250 | |||
Malaysian term note 2 [Member] | Malaysian Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | $ 0 | $ 68 | ||
Debt maturity date | Mar. 31, 2016 | |||
Debt collateral | Secured by TMM's property, plant and equipment | |||
Debt interest variable rate | 2% above the bank base lending rate | |||
Malaysian term note 2 [Member] | Malaysian Bank [Member] | RM [Member] | ||||
Debt Instrument [Line Items] | ||||
Note payable to bank | MYR | MYR 0 |
2. Debt and Notes Payable (De42
2. Debt and Notes Payable (Details - Future maturities) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
2,017 | $ 1,142 | |
2,018 | 640 | |
2,019 | 640 | |
2,020 | 640 | |
2,021 | 145 | |
Thereafter | 660 | |
Total | $ 3,867 | $ 4,964 |
2. Debt and Notes Payable (De43
2. Debt and Notes Payable (Details Narrative) | 12 Months Ended | |||||||
Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016MYR | Feb. 21, 2017USD ($) | Feb. 21, 2017MYR | Dec. 31, 2016EUR (€) | Dec. 31, 2016MYR | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||||||||
Note payable to bank | $ 3,867,000 | $ 4,964,000 | ||||||
Line of Credit [Member] | UNITED STATES | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | 1,000,000 | |||||||
Credit line balance outstanding | $ 0 | |||||||
Credit line interest rate | 4.50% | 4.50% | 4.50% | |||||
Credit line expiration date | Oct. 15, 2017 | Oct. 15, 2017 | Oct. 15, 2017 | |||||
Line of Credit [Member] | European [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | $ 526,000 | |||||||
Credit line balance outstanding | $ 0 | |||||||
Credit line interest rate | 2.90% | 2.90% | 2.90% | |||||
Credit line interest rate | bank prime plus 2.8% to the average 1-month EURIBOR plus the bank margin of 3.3% | bank prime plus 2.8% to the average 1-month EURIBOR plus the bank margin of 3.3% | bank prime plus 2.8% to the average 1-month EURIBOR plus the bank margin of 3.3% | |||||
TOR Minerals Malaysia [Member] | Line of Credit [Member] | Asian Operations [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line expiration date | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | |||||
TOR Minerals Malaysia [Member] | HSBC [Member] | Line of Credit [Member] | Asian Operations [Member] | Overdrafts [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | $ 111,000 | |||||||
TOR Minerals Malaysia [Member] | HSBC [Member] | Line of Credit [Member] | Asian Operations [Member] | Import/Export Line [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | 2,331,000 | |||||||
Credit line balance outstanding | 206,000 | |||||||
TOR Minerals Malaysia [Member] | HSBC [Member] | Line of Credit [Member] | Asian Operations [Member] | Foreign Exchange [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | 1,114,000 | |||||||
TOR Minerals Malaysia [Member] | RHB Bank Berhad [Member] | Line of Credit [Member] | Asian Operations [Member] | Foreign Exchange [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | $ 561,000 | |||||||
TOR Minerals Malaysia [Member] | RHB Bank Berhad [Member] | Line of Credit [Member] | Asian Operations [Member] | Multi-Trade Line [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | 785,000 | |||||||
TOR Minerals Malaysia [Member] | RHB Bank Berhad [Member] | Line of Credit [Member] | Asian Operations [Member] | Bank Guarantee [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | $ 269,000 | |||||||
EURO [Member] | Line of Credit [Member] | European [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | € | € 500,000 | |||||||
Credit line balance outstanding | $ 0 | |||||||
RM [Member] | TOR Minerals Malaysia [Member] | HSBC [Member] | Line of Credit [Member] | Asian Operations [Member] | Overdrafts [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | MYR | MYR 500,000 | |||||||
RM [Member] | TOR Minerals Malaysia [Member] | HSBC [Member] | Line of Credit [Member] | Asian Operations [Member] | Import/Export Line [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | MYR | 10,460,000 | |||||||
Credit line balance outstanding | MYR | 924,000 | |||||||
Credit line interest rate | 5.02% | 5.02% | 5.02% | |||||
RM [Member] | TOR Minerals Malaysia [Member] | HSBC [Member] | Line of Credit [Member] | Asian Operations [Member] | Foreign Exchange [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | MYR | 5,000,000 | |||||||
RM [Member] | TOR Minerals Malaysia [Member] | RHB Bank Berhad [Member] | Line of Credit [Member] | Asian Operations [Member] | Foreign Exchange [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | MYR | MYR 2,500,000 | |||||||
RM [Member] | TOR Minerals Malaysia [Member] | RHB Bank Berhad [Member] | Line of Credit [Member] | Asian Operations [Member] | Multi-Trade Line [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | MYR | 3,500,000 | |||||||
RM [Member] | TOR Minerals Malaysia [Member] | RHB Bank Berhad [Member] | Line of Credit [Member] | Asian Operations [Member] | Bank Guarantee [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit line maximum borrowing capacity | MYR | MYR 1,200,000 | |||||||
Euro term note 1 [Member] | Rabobank Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Note payable to bank | $ 206,000 | 235,000 | ||||||
Periodic payment frequency | monthly | monthly | monthly | |||||
Amount of periodic payment | $ 1,700 | |||||||
Euro term note 1 [Member] | Rabobank Bank [Member] | EURO [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Note payable to bank | € | 196,000 | |||||||
Amount of periodic payment | € | € 1,616 | |||||||
Euro term note 2 [Member] | Rabobank Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Note payable to bank | $ 234,000 | 264,000 | ||||||
Periodic payment frequency | monthly | monthly | monthly | |||||
Amount of periodic payment | $ 1,648 | |||||||
Euro term note 2 [Member] | Rabobank Bank [Member] | EURO [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Note payable to bank | € | 223,000 | |||||||
Amount of periodic payment | € | € 1,566 | |||||||
Euro term note 3 [Member] | Rabobank Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Note payable to bank | $ 947,000 | 1,087,000 | ||||||
Periodic payment frequency | monthly | monthly | monthly | |||||
Amount of periodic payment | $ 8,769 | |||||||
Euro term note 3 [Member] | Rabobank Bank [Member] | EURO [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Note payable to bank | € | 900,000 | |||||||
Amount of periodic payment | € | € 8,333 | |||||||
Euro term note 4 [Member] | Rabobank Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Note payable to bank | 1,978,000 | $ 2,554,000 | ||||||
Amount of periodic payment | 41,215 | |||||||
Euro term note 4 [Member] | Rabobank Bank [Member] | EURO [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Note payable to bank | € | € 1,880,000 | |||||||
Amount of periodic payment | € | € 39,167 | |||||||
Malaysian term note [Member] | TOR Minerals Malaysia [Member] | HSBC [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Note payable to bank | 502,000 | |||||||
Amount of periodic payment | 18,575 | |||||||
Credit line maximum borrowing capacity | $ 1,114,000 | |||||||
Malaysian term note [Member] | RM [Member] | TOR Minerals Malaysia [Member] | HSBC [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Note payable to bank | MYR | 2,250,000 | |||||||
Amount of periodic payment | MYR | MYR 83,333 | |||||||
Credit line maximum borrowing capacity | MYR | MYR 5,000,000 |
3. Fair Value Measurements (Det
3. Fair Value Measurements (Details - Unobservable inputs) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Liability | ||
Currency forward contracts | $ 2,000 | $ 6,000 |
Level 1 [Member] | ||
Liability | ||
Currency forward contracts | 0 | 0 |
Level 2 [Member] | ||
Liability | ||
Currency forward contracts | 2,000 | 6,000 |
Level 3 [Member] | ||
Liability | ||
Currency forward contracts | $ 0 | $ 0 |
3. Fair Value Measurements (D45
3. Fair Value Measurements (Details - Carry amounts) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 3,867 | $ 4,964 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 3,785 | $ 4,438 |
4. Inventories (Details)
4. Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 5,235 | $ 6,310 | |
Work in progress | 1,636 | 4,168 | |
Finished goods | 4,587 | 3,552 | |
Supplies | 717 | 784 | |
Total Inventories | 12,175 | 14,814 | |
Inventory reserve | (399) | (826) | $ (85) |
Net Inventories | $ 11,776 | $ 13,988 |
5. Property, Plant and Equipm47
5. Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 41,504 | $ 38,927 |
Less accumulated depreciation | (25,968) | (23,973) |
Property, plant and equipment, net | 15,536 | 14,954 |
Construction in progress | 371 | 2,518 |
Property, plant and equipment, net plus construction in progress | 15,907 | 17,472 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 292 | 300 |
Office buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Expected Life | 39 years | |
Property, plant and equipment, gross | $ 4,280 | 4,400 |
Production facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Expected Life | 10-20 years | |
Property, plant and equipment, gross | $ 9,345 | 10,321 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Expected Life | 3-15 years | |
Property, plant and equipment, gross | $ 24,492 | 22,412 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Expected Life | 3-20 years | |
Property, plant and equipment, gross | $ 1,706 | $ 1,494 |
5. Property, Plant and Equipm48
5. Property, Plant and Equipment (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 2,561 | $ 2,863 |
6. Segment Information (Details
6. Segment Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Sales: | ||||||||||
Customer sales | $ 38,456,000 | $ 37,059,000 | ||||||||
Intercompany sales | 0 | 0 | ||||||||
Total Net Sales | $ 8,998,000 | $ 10,036,000 | $ 9,850,000 | $ 9,572,000 | $ 7,993,000 | $ 8,988,000 | $ 9,963,000 | $ 10,115,000 | 38,456,000 | 37,059,000 |
Share based compensation | 170,000 | 133,000 | ||||||||
Depreciation | 2,561,000 | 2,863,000 | ||||||||
Interest (income) expense | 177,000 | 208,000 | ||||||||
Income tax (benefit) expense | (58,000) | $ 142,000 | $ (52,000) | $ 75,000 | 442,000 | $ 22,000 | $ (73,000) | $ (81,000) | 107,000 | 310,000 |
Location profit (loss) | 444,000 | (6,364,000) | ||||||||
Capital expenditures | 1,203,000 | 6,017,000 | ||||||||
Location long-lived assets | 15,907,000 | 17,472,000 | 15,907,000 | 17,472,000 | ||||||
Location assets | 35,729,000 | 36,708,000 | 35,729,000 | 36,708,000 | ||||||
Inter-Company Eliminations [Member] | ||||||||||
Net Sales: | ||||||||||
Customer sales | 0 | 0 | ||||||||
Intercompany sales | (11,990,000) | (10,178,000) | ||||||||
Total Net Sales | (11,990,000) | (10,178,000) | ||||||||
Share based compensation | 0 | 0 | ||||||||
Depreciation | 0 | 0 | ||||||||
Interest (income) expense | 0 | 0 | ||||||||
Income tax (benefit) expense | (9,000) | 16,000 | ||||||||
Location profit (loss) | (10,000) | 58,000 | ||||||||
Capital expenditures | 0 | 0 | ||||||||
Location long-lived assets | 0 | 0 | 0 | 0 | ||||||
Location assets | (714,000) | (1,419,000) | (714,000) | (1,419,000) | ||||||
United States (Corpus Christi) [Member] | ||||||||||
Net Sales: | ||||||||||
Customer sales | 26,678,000 | 25,646,000 | ||||||||
Intercompany sales | 98,000 | 37,000 | ||||||||
Total Net Sales | 26,776,000 | 25,683,000 | ||||||||
Share based compensation | 170,000 | 133,000 | ||||||||
Depreciation | 1,076,000 | 1,011,000 | ||||||||
Interest (income) expense | (2,000) | 13,000 | ||||||||
Income tax (benefit) expense | (131,000) | (318,000) | ||||||||
Location profit (loss) | (406,000) | (760,000) | ||||||||
Capital expenditures | 463,000 | 1,335,000 | ||||||||
Location long-lived assets | 5,291,000 | 5,904,000 | 5,291,000 | 5,904,000 | ||||||
Location assets | 17,013,000 | 16,449,000 | 17,013,000 | 16,449,000 | ||||||
European (TPT) [Member] | ||||||||||
Net Sales: | ||||||||||
Customer sales | 9,313,000 | 8,619,000 | ||||||||
Intercompany sales | 7,357,000 | 4,309,000 | ||||||||
Total Net Sales | 16,670,000 | 12,928,000 | ||||||||
Share based compensation | 0 | 0 | ||||||||
Depreciation | 1,343,000 | 1,174,000 | ||||||||
Interest (income) expense | 107,000 | 25,000 | ||||||||
Income tax (benefit) expense | 247,000 | (69,000) | ||||||||
Location profit (loss) | 826,000 | (225,000) | ||||||||
Capital expenditures | 735,000 | 4,676,000 | ||||||||
Location long-lived assets | 9,832,000 | 10,618,000 | 9,832,000 | 10,618,000 | ||||||
Location assets | 13,417,000 | 13,617,000 | 13,417,000 | 13,617,000 | ||||||
Asian (TMM) [Member] | ||||||||||
Net Sales: | ||||||||||
Customer sales | 2,465,000 | 2,794,000 | ||||||||
Intercompany sales | 4,535,000 | 5,832,000 | ||||||||
Total Net Sales | 7,000,000 | 8,626,000 | ||||||||
Share based compensation | 0 | 0 | ||||||||
Depreciation | 142,000 | 678,000 | ||||||||
Interest (income) expense | 72,000 | 170,000 | ||||||||
Income tax (benefit) expense | 0 | 681,000 | ||||||||
Location profit (loss) | 34,000 | (5,437,000) | ||||||||
Capital expenditures | 5,000 | 6,000 | ||||||||
Location long-lived assets | 784,000 | 950,000 | 784,000 | 950,000 | ||||||
Location assets | $ 6,013,000 | $ 8,061,000 | $ 6,013,000 | $ 8,061,000 |
6. Segment Information (Detai50
6. Segment Information (Details Narrative) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 100.00% | 100.00% | ||
Sales Revenue [Member] | One Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 24.00% | 18.00% | ||
Sales Revenue [Member] | UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 62.00% | 58.00% | ||
Sales Revenue [Member] | UNITED STATES | One Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 35.00% | 25.00% | ||
Sales Revenue [Member] | European operations [Member] | One Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 17.00% | |||
Sales Revenue [Member] | European operations [Member] | Two Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 28.00% | |||
Sales Revenue [Member] | Asian Operations [Member] | One Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 22.00% | |||
Sales Revenue [Member] | Asian Operations [Member] | Three Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 34.00% | |||
Sales Revenue [Member] | TOR Processing and Trade, BV [Member] | Inter-Company Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 44.00% | 33.00% | ||
Sales Revenue [Member] | TOR Minerals Malaysia [Member] | Inter-Company Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 65.00% | 68.00% | ||
Sales Revenue [Member] | Products Manufactured in US [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 69.00% | 69.00% | ||
Sales Revenue [Member] | Products Manufactured in Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 24.00% | 23.00% | ||
Sales Revenue [Member] | Products Manufactured in Asia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 6.00% | 8.00% | ||
Sales Revenue [Member] | One Customer [Member] | Asian Operations [Member] | Three Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 12.00% | |||
Sales Revenue [Member] | One Customer [Member] | European [Member] | One Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 16.00% | |||
Sales Revenue [Member] | Customer 2 [Member] | Asian Operations [Member] | Three Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 11.00% | |||
Sales Revenue [Member] | Customer 2 [Member] | European [Member] | One Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 12.00% | |||
Sales Revenue [Member] | Customer 3 [Member] | Asian Operations [Member] | Three Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 11.00% | |||
Sales Revenue [Member] | ALUPREM [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 44.00% | 36.00% | ||
Sales Revenue [Member] | HITOX [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 21.00% | 28.00% | ||
Total Foreign Sales [Member] | GERMANY | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 22.00% | 23.00% | ||
Total Foreign Sales [Member] | ITALY | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
Percentage Employees [Member] | Collective Bargaining Agreement [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 7.00% | 12.00% |
7. Quarterly Data (Unaudited)51
7. Quarterly Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
NET SALES | $ 8,998,000 | $ 10,036,000 | $ 9,850,000 | $ 9,572,000 | $ 7,993,000 | $ 8,988,000 | $ 9,963,000 | $ 10,115,000 | $ 38,456,000 | $ 37,059,000 |
Cost of sales | 7,982,000 | 8,452,000 | 8,680,000 | 8,247,000 | 9,075,000 | 7,877,000 | 9,010,000 | 9,221,000 | 33,361,000 | 35,183,000 |
GROSS MARGIN | 1,016,000 | 1,584,000 | 1,170,000 | 1,325,000 | (1,082,000) | 1,111,000 | 953,000 | 894,000 | 5,095,000 | 1,876,000 |
Technical services and research & development | 53,000 | 56,000 | 52,000 | 38,000 | 35,000 | 44,000 | 44,000 | 55,000 | 199,000 | 178,000 |
Selling, general and administrative expenses | 1,182,000 | 1,068,000 | 1,062,000 | 842,000 | 1,447,000 | 943,000 | 1,039,000 | 1,052,000 | 4,154,000 | 4,481,000 |
Loss on disposal of assets | (1,000) | 4,000 | 0 | (1,000) | 2,000 | 0 | ||||
Loss on impairment of assets | 2,912,000 | 38,000 | 0 | 0 | 0 | 2,950,000 | ||||
OPERATING INCOME (LOSS) | (218,000) | 456,000 | 56,000 | 446,000 | (5,476,000) | 86,000 | (130,000) | (213,000) | 740,000 | (5,733,000) |
OTHER INCOME (EXPENSE): | ||||||||||
Interest expense, net | (37,000) | (43,000) | (47,000) | (50,000) | (31,000) | (37,000) | (60,000) | (80,000) | (177,000) | (208,000) |
Income (loss) on foreign currency exchange rate | 9,000 | 20,000 | 10,000 | (89,000) | (3,000) | (157,000) | 1,000 | 22,000 | (50,000) | (137,000) |
Other income, net | 10,000 | 0 | 16,000 | 12,000 | 6,000 | 9,000 | 9,000 | 0 | 38,000 | 24,000 |
Total Other Expense | (18,000) | (23,000) | (21,000) | (127,000) | (28,000) | (185,000) | (50,000) | (58,000) | (189,000) | (321,000) |
INCOME (LOSS) BEFORE INCOME TAX | (236,000) | 433,000 | 35,000 | 319,000 | (5,504,000) | (99,000) | (180,000) | (271,000) | 551,000 | (6,054,000) |
Income tax (benefit) expense | (58,000) | 142,000 | (52,000) | 75,000 | 442,000 | 22,000 | (73,000) | (81,000) | 107,000 | 310,000 |
Net income (loss) | $ (178,000) | $ 291,000 | $ 87,000 | $ 244,000 | $ (5,946,000) | $ (121,000) | $ (107,000) | $ (190,000) | $ 444,000 | $ (6,364,000) |
Income (loss) per common share: | ||||||||||
Basic | $ (.05) | $ .08 | $ .03 | $ .08 | $ .13 | $ (2.11) | ||||
Diluted | $ (0.05) | $ 0.08 | $ 0.03 | $ 0.08 | .13 | (2.11) | ||||
Basic and diluted | $ (1.97) | $ (0.04) | $ (0.04) | $ (0.06) | $ 0.13 | $ (2.11) | ||||
Weighted average common shares outstanding: | ||||||||||
Basic | 3,542,000 | 3,542,222 | 3,402,000 | 3,014,000 | 3,376,000 | 3,014,000 | ||||
Diluted | 3,542,000 | 3,550,000 | 3,459,000 | 3,187,000 | 3,454,000 | 3,014,000 | ||||
Basic and diluted | 3,014,000 | 3,014,000 | 3,014,000 | 3,014,000 | 3,014,000 |
8. Calculation of Basic and D52
8. Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | ||||||||||
Net Income (Loss) | $ (178) | $ 291 | $ 87 | $ 244 | $ (5,946) | $ (121) | $ (107) | $ (190) | $ 444 | $ (6,364) |
Denominator: | ||||||||||
Denominator for basic earnings (loss) per share- weighted-average shares | 3,542,000 | 3,542,222 | 3,402,000 | 3,014,000 | 3,376,000 | 3,014,000 | ||||
Dilutive potential common shares | 78,000 | 0 | ||||||||
Denominator for diluted earnings (loss) per share - weighted-average shares and assumed conversions | 3,542,000 | 3,550,000 | 3,459,000 | 3,187,000 | 3,454,000 | 3,014,000 | ||||
Basic and diluted earnings per common share | $ (1.97) | $ (0.04) | $ (0.04) | $ (0.06) | $ 0.13 | $ (2.11) |
8. Calculation of Basic and D53
8. Calculation of Basic and Diluted Earnings per Share (Details Narrative) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Detachable Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings | 528,000 | |
Warrants exercise price | $ 2.65 | |
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 |
9. Income Taxes (Details - Pret
9. Income Taxes (Details - Pretax income) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pretax income (loss) | $ (236) | $ 433 | $ 35 | $ 319 | $ (5,504) | $ (99) | $ (180) | $ (271) | $ 551 | $ (6,054) |
Domestic [Member] | ||||||||||
Pretax income (loss) | (537) | (1,078) | ||||||||
Foreign [Member] | ||||||||||
Pretax income (loss) | $ 1,088 | $ (4,976) |
9. Income Taxes (Details - Comp
9. Income Taxes (Details - Components of Tax Expense) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | ||||||||||
Federal | $ 0 | $ 0 | ||||||||
State | 4,000 | 5,000 | ||||||||
Foreign | 247,000 | (73,000) | ||||||||
Total Income Tax Expense (Benefit) | 251,000 | (68,000) | ||||||||
Deferred | ||||||||||
Federal | (140,000) | (318,000) | ||||||||
State | 0 | 0 | ||||||||
Foreign | (4,000) | 696,000 | ||||||||
Total Income Tax Expense (Benefit) | (144,000) | 378,000 | ||||||||
Total | ||||||||||
Federal | (140,000) | (318,000) | ||||||||
State | 4,000 | 5,000 | ||||||||
Foreign | 243,000 | 623,000 | ||||||||
Income Tax Expense (Benefit) | $ (58,000) | $ 142,000 | $ (52,000) | $ 75,000 | $ 442,000 | $ 22,000 | $ (73,000) | $ (81,000) | $ 107,000 | $ 310,000 |
9. Income Taxes (Details - Tax
9. Income Taxes (Details - Tax Reconciliation) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||||||||
Expense (benefit) computed at statutory rate | $ 187 | $ (2,059) | ||||||||
Change in valuation allowance - Foreign | (30) | 1,703 | ||||||||
Effect of items deductible for book not tax, net | ||||||||||
Share based compensation | 40 | 45 | ||||||||
Other | 5 | 5 | ||||||||
Effect of foreign tax credit | 11 | 34 | ||||||||
Effect of foreign tax rate differential | (109) | 578 | ||||||||
State income taxes, net of Federal benefit | 3 | 4 | ||||||||
Income Tax Expense (Benefit) | $ (58) | $ 142 | $ (52) | $ 75 | $ 442 | $ 22 | $ (73) | $ (81) | $ 107 | $ 310 |
9. Income Taxes (Details - Defe
9. Income Taxes (Details - Deferred income taxes) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets: | |||
Net operating loss carry-forwards - Domestic | $ 316 | $ 414 | |
Net operating loss carry-forwards - Foreign | 758 | 849 | |
Intercompany profit | 50 | 43 | |
Alternative minimum tax credit carry-forwards | 65 | 65 | |
Domestic reserves | 33 | 31 | |
Foreign tax credits | 642 | 675 | |
Unrealized foreign currency losses - Foreign | 0 | 68 | |
Other deferred assets - Domestic | 57 | 21 | |
Other deferred assets - Foreign | 107 | 118 | |
Total deferred tax assets, Gross | 2,028 | 2,284 | |
Valuation Allowance - Foreign | (1,478) | (1,703) | $ 0 |
Total deferred tax assets | 550 | 581 | |
Deferred Tax Liabilities: | |||
PP&E - Domestic | 590 | 732 | |
PP&E - Foreign | 52 | 30 | |
Unrealized foreign currency gains - Domestic | 0 | 59 | |
Unrealized foreign currency gains - Foreign | 5 | 0 | |
Other | 3 | 3 | |
Total deferred tax liabilities | 650 | 824 | |
Net deferred tax asset (liability) | $ (100) | $ (243) |
9. Income Taxes (Details Narrat
9. Income Taxes (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Federal Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carry-forwards | $ 930 |
Deferred tax asset net operating loss carry-forwards | $ 316 |
NOL expiration date | Dec. 31, 2033 |
Foreign County [Member] | TOR Minerals Malaysia [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carry-forwards | $ 3,159 |
Deferred tax asset net operating loss carry-forwards | 1,509 |
Other Deferred tax asset net operating loss carry-forwards | $ 3,128 |
10. Stock Options (Details - As
10. Stock Options (Details - Assumptions) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Risk-free interest rate | 1.90% | 2.00% |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 0.59% | 0.66% |
Expected term (in years) | 7 years | 7 years |
10. Stock Options (Details - Op
10. Stock Options (Details - Option Activity) - $ / shares | 12 Months Ended | 202 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted average exercise price, options outstanding, beginning balance | $ 2.70 | $ 2.70 | |
Weighted average exercise price, options outstanding, ending balance | 2.70 | 2.70 | $ 2.70 |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted average exercise price, options outstanding, beginning balance | 30.55 | 30.55 | |
Weighted average exercise price, options outstanding, ending balance | $ 18.22 | $ 30.55 | $ 18.22 |
Options [Member] | |||
Common Stock, Capital Shares Reserved for Future Issuance [Roll Forward] | |||
Balances | 385,369 | 385,369 | |
Balances | 385,369 | 385,369 | 385,369 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options outstanding, beginning balance | 146,305 | 385,369 | |
Options granted | 19,975 | 6,000 | |
Options Exercised | (114,631) | ||
Options forfeited or expired | (13,116) | (7,400) | |
Options outstanding, ending balance | 153,164 | 146,305 | 153,164 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted average exercise price, options outstanding, beginning balance | $ 13.24 | $ 13.24 | |
Weighted average exercise price, options granted | 4.50 | 6.34 | |
Weighted average exercise price, options forfeited or expired | 10.38 | 30.27 | |
Weighted average exercise price, options outstanding, ending balance | 10.84 | 13.24 | $ 10.84 |
Options [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted average exercise price, options granted | 6.34 | 6.34 | |
Weighted average exercise price, options forfeited or expired | 29.50 | 29.50 | |
Options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted average exercise price, options granted | 6.34 | 6.34 | |
Weighted average exercise price, options forfeited or expired | $ 30.55 | $ 30.55 |
10. Stock Options (Details - 61
10. Stock Options (Details - Options by exercise price) - shares | Dec. 31, 2016 | Dec. 31, 2015 |
Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of exercise prices of options outstanding | 153,164 | 146,305 |
$2.70 - $9.99 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of exercise prices of options outstanding | 39,164 | 19,189 |
$10.00 - $14.99 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of exercise prices of options outstanding | 90,500 | 103,616 |
$15.00 - $19.99 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of exercise prices of options outstanding | 23,500 | 23,500 |
10. Stock Options (Details Narr
10. Stock Options (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 202 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation | $ 170 | $ 133 | ||
Compensation expense non-vested awards | $ 140 | $ 140 | ||
Weighted average period of compensation expense for non-vested awards | 1 year 3 months 11 days | |||
Non-qualifying Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options vested | 13,975 | |||
Non-qualifying Stock Options [Member] | Olaf Karasch [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted | 150,000 | |||
Non-qualifying Stock Options [Member] | Mark Schomp [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted | 50,000 | |||
Non-qualifying Stock Options [Member] | Barbara Russell [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted | 15,000 | |||
Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted | 19,975 | 6,000 | ||
Weighted average fair value per option at date of grant | $ 2.73 | $ 4.06 | ||
Shares authorized | 500,000 | 500,000 | ||
Options exercised | 114,631 | |||
Options outstanding | 153,164 | 146,305 | 153,164 | 385,369 |
Options available for future issuance | 232,205 | 232,205 | ||
Common stock underlying options exercisable | 132,164 | 132,164 | ||
Weighted average remaining contractual life | 5 years 1 month 13 days |
11. Profit Sharing Plan (Detail
11. Profit Sharing Plan (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Percentage of company matches contributions | 4.00% | |
Company contributions | $ 66 | $ 72 |
12. Derivatives and Other Fin64
12. Derivatives and Other Financial Instruments (Details - Liability derivatives) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Expenses [Member] | Foreign Currency Exchange Contracts [Member] | Nondesignated [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 2 | $ 6 |
12. Derivatives and Other Fin65
12. Derivatives and Other Financial Instruments (Details - Recognized loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign Currency Exchange Contracts [Member] | Nondesignated [Member] | Foreign Currency Gain (Loss) [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amount of Gain Recognized in Operations | $ 3 | $ 80 |
13. Commitments and Contingen66
13. Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 114 |
2,018 | 95 |
2,019 | 95 |
2,020 | 95 |
2,021 | 95 |
Thereafter | 527 |
Total minimum lease payments | $ 1,021 |
13. Commitments and Contingen67
13. Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Lease expiration date | Jun. 30, 2027 | |
Rent expense | $ 114 | $ 115 |
14. Significant Customers (Deta
14. Significant Customers (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | ||
Concentration risk percentage | 100.00% | 100.00% |
Accounts Receivable | $ 3,557,000 | $ 3,534,000 |
Sales Revenue [Member] | One Customer [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk percentage | 24.00% | 18.00% |
Accounts Receivable [Member] | One Customer [Member] | ||
Revenue, Major Customer [Line Items] | ||
Accounts Receivable | $ 290,000 | $ 140,000 |
15. Foreign Customer Sales (Det
15. Foreign Customer Sales (Details) - Foreign Sales [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | ||
Total foreign sales | $ 14,620 | $ 15,261 |
Sales Revenue [Member] | Canada, Mexico & South/Central America [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total foreign sales | 2,608 | 3,894 |
Sales Revenue [Member] | Pacific Rim [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total foreign sales | 2,417 | 2,906 |
Sales Revenue [Member] | Europe Africa And Middle East [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total foreign sales | $ 9,595 | $ 8,461 |
15. Foreign Customer Sales (D70
15. Foreign Customer Sales (Details Narrative) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2015 | |
Concentration risk percentage | 100.00% | 100.00% | ||
Total Foreign Sales [Member] | GERMANY | ||||
Concentration risk percentage | 22.00% | 23.00% | ||
Total Foreign Sales [Member] | ITALY | ||||
Concentration risk percentage | 10.00% |
16. Sales by Product (Details)
16. Sales by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Product Information [Line Items] | ||||||||||
Total Sales | $ 8,998 | $ 10,036 | $ 9,850 | $ 9,572 | $ 7,993 | $ 8,988 | $ 9,963 | $ 10,115 | $ 38,456 | $ 37,059 |
Revenues from sales by product, percentage | 100.00% | 100.00% | ||||||||
Variance [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ 1,397 | |||||||||
Revenues from sales by product, percentage | 4.00% | |||||||||
ALUPREM [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ 18,516 | $ 13,319 | ||||||||
Revenues from sales by product, percentage | 44.00% | 36.00% | ||||||||
ALUPREM [Member] | Variance [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ 3,483 | |||||||||
Revenues from sales by product, percentage | 26.00% | |||||||||
HITOX [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ 8,006 | $ 10,392 | ||||||||
Revenues from sales by product, percentage | 21.00% | 28.00% | ||||||||
HITOX [Member] | Variance [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ (2,386) | |||||||||
Revenues from sales by product, percentage | (23.00%) | |||||||||
BARTEX / BARYPREM [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ 8,217 | $ 8,417 | ||||||||
Revenues from sales by product, percentage | 21.00% | 23.00% | ||||||||
BARTEX / BARYPREM [Member] | Variance [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ (200) | |||||||||
Revenues from sales by product, percentage | (2.00%) | |||||||||
HALTEX / OPTILOAD [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ 4,364 | $ 3,462 | ||||||||
Revenues from sales by product, percentage | 11.00% | 9.00% | ||||||||
HALTEX / OPTILOAD [Member] | Variance [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ 902 | |||||||||
Revenues from sales by product, percentage | 26.00% | |||||||||
TIOPREM [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ 742 | $ 718 | ||||||||
Revenues from sales by product, percentage | 2.00% | 2.00% | ||||||||
TIOPREM [Member] | Variance [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ 24 | |||||||||
Revenues from sales by product, percentage | 3.00% | |||||||||
SR [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ 0 | $ 14 | ||||||||
Revenues from sales by product, percentage | 0.00% | 0.00% | ||||||||
SR [Member] | Variance [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ (14) | |||||||||
Revenues from sales by product, percentage | (100.00%) | |||||||||
OTHER [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ 325 | $ 737 | ||||||||
Revenues from sales by product, percentage | 1.00% | 2.00% | ||||||||
OTHER [Member] | Variance [Member] | ||||||||||
Product Information [Line Items] | ||||||||||
Total Sales | $ (412) | |||||||||
Revenues from sales by product, percentage | (56.00%) |
Schedule II - Valuation and Q72
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Receivable: | ||
Allowance for Doubtful Accounts Receivable, beginning balance | $ 366 | $ 83 |
Allowance for Doubtful Accounts Receivable, charged to operations | 42 | 312 |
Allowance for Doubtful Accounts Receivable, credited to operations | (295) | (25) |
Allowance for Doubtful Accounts Receivable, written off | 0 | 0 |
Allowance for Doubtful Accounts Receivable, effect of exchange rate changes | (11) | (4) |
Allowance for Doubtful Accounts Receivable, ending balance | 102 | 366 |
Inventory reserve: | ||
Inventory reserve, beginning balance | 826 | 85 |
Inventory reserve, charged to operations | 60 | 2,614 |
Inventory reserve, credited to operations | (458) | (1,869) |
Inventory reserve, written off | 0 | 0 |
Inventory reserve, effect of exchange rate changes | (29) | (4) |
Inventory reserve, ending balance | 399 | 826 |
Deferred Tax Valuation Allowance: | ||
Deferred tax valuation allowance, beginning balance | 1,703 | 0 |
Deferred tax valuation allowance, charged to operations | 0 | 1,703 |
Deferred tax valuation allowance, charged to additional paid-in capital and other comprehensive income | 0 | 0 |
Deferred tax valuation allowance, creditied to additional paid-in capital and other comprehensive income | (225) | 0 |
Deferred tax valuation allowance, other adjustments | 0 | 0 |
Deferred tax valuation allowance, ending balance | $ 1,478 | $ 1,703 |