Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 09, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FUEL TECH, INC. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 24,167,679 | |
Amendment Flag | false | |
Entity Central Index Key | 846,913 | |
Entity Filer Category | Smaller Reporting Company | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 5,667,000 | $ 8,366,000 |
Restricted cash | 1,520,000 | 1,020,000 |
Marketable securities | 4,000 | 6,000 |
Accounts receivable, net of allowance for doubtful accounts of $1,531 and $1,545, respectively | 20,164,000 | 19,690,000 |
Inventories, net | 1,026,000 | 945,000 |
Prepaid expenses and other current assets | 3,548,000 | 3,592,000 |
Income taxes receivable | 128,000 | 129,000 |
Total current assets | 32,057,000 | 33,748,000 |
Property and equipment, net of accumulated depreciation of $26,159 and $25,938, respectively | 6,111,000 | 6,272,000 |
Goodwill | 2,116,000 | |
Other intangible assets, net of accumulated amortization of $1,993 and $1,939, respectively | 1,640,000 | 1,671,000 |
Restricted cash | 5,000,000 | 5,000,000 |
Assets held for sale | 485,000 | 485,000 |
Other assets | 1,221,000 | 1,192,000 |
Total assets | 48,630,000 | 50,484,000 |
Current liabilities: | ||
Accounts payable | 9,430,000 | 9,065,000 |
Accrued liabilities: | ||
Employee compensation | 1,518,000 | 1,487,000 |
Income taxes payable | 52,000 | 73,000 |
Other accrued liabilities | 2,554,000 | 5,098,000 |
Total current liabilities | 13,554,000 | 15,723,000 |
Other liabilities | 400,000 | 420,000 |
Total liabilities | 13,954,000 | 16,143,000 |
COMMITMENTS AND CONTINGENCIES (Note 12) | ||
Shareholders’ equity: | ||
Common stock, $.01 par value, 40,000,000 shares authorized, 24,821,446 and 24,777,001 shares issued, and 24,167,679, and 24,132,910 shares outstanding, respectively | 248,000 | 248,000 |
Additional paid-in capital | 138,701,000 | 138,760,000 |
Accumulated deficit | (102,514,000) | (102,503,000) |
Accumulated other comprehensive loss | (353,000) | (768,000) |
Nil coupon perpetual loan notes | 76,000 | 76,000 |
Treasury stock, at cost | (1,482,000) | (1,472,000) |
Total shareholders’ equity | 34,676,000 | 34,341,000 |
Total liabilities and shareholders’ equity | $ 48,630,000 | $ 50,484,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1,531 | $ 1,545 |
Accumulated depreciation | 26,159 | 25,938 |
Accumulated amortization | $ 1,993 | $ 1,939 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 24,821,446 | 24,777,001 |
Common stock outstanding (in shares) | 24,167,679 | 24,132,910 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenues | $ 12,791 | $ 8,491 |
Costs and expenses: | ||
Cost of sales | 7,766 | 4,769 |
Selling, general and administrative | 4,921 | 5,154 |
Restructuring charge | 0 | 61 |
Research and development | 288 | 284 |
Costs and expenses: | 12,975 | 10,268 |
Operating loss from continuing operations | (184) | (1,777) |
Interest income | 2 | 3 |
Other expense | (8) | (2) |
Loss from continuing operations before income taxes | (190) | (1,776) |
Income tax expense | (1) | 0 |
Net loss from continuing operations | (191) | (1,776) |
Loss from discontinued operations (net of income tax benefit of $0 in 2018 and 2017) | (25) | (730) |
Net loss | $ (216) | $ (2,506) |
Basic | ||
Continuing operations (in dollars per share) | $ (0.01) | $ (0.08) |
Discontinued operations (in dollars per share) | 0 | (0.03) |
Basic net loss per common share (in dollars per share) | (0.01) | (0.11) |
Diluted | ||
Continuing operations (in dollars per share) | (0.01) | (0.08) |
Discontinued operations (in dollars per share) | 0 | (0.03) |
Diluted net loss per common share (in dollars per share) | $ (0.01) | $ (0.11) |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 24,146,000 | 23,472,000 |
Diluted (in shares) | 24,146,000 | 23,472,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Income tax benefit | $ 0 | $ 0 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (216) | $ (2,506) |
Other comprehensive income: | ||
Foreign currency translation adjustments | 416 | 116 |
Unrealized gains (losses) from marketable securities, net of tax | (1) | 1 |
Total other comprehensive income | 415 | 117 |
Comprehensive income (loss) | $ 199 | $ (2,389) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities | ||
Net loss | $ (216,000) | $ (2,506,000) |
Loss from discontinued operations | 25,000 | 730,000 |
Net loss from continuing operations | (191,000) | (1,776,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 195,000 | 405,000 |
Amortization | 53,000 | 54,000 |
Loss on disposal of equipment | 15,000 | 10,000 |
Provision for doubtful accounts, net of recoveries | (62,000) | 0 |
Stock-based compensation, net of forfeitures | (59,000) | (10,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 32,000 | 3,525,000 |
Inventories | (68,000) | (26,000) |
Prepaid expenses, other current assets and other non-current assets | 113,000 | 108,000 |
Accounts payable | 186,000 | (1,848,000) |
Accrued liabilities and other non-current liabilities | (2,750,000) | (1,483,000) |
Net cash used in operating activities - continuing operations | (2,536,000) | (1,041,000) |
Net cash used in operating activities - discontinued operations | (25,000) | (579,000) |
Net cash used in operating activities | (2,561,000) | (1,620,000) |
Investing Activities | ||
Purchases of equipment and patents | (62,000) | (97,000) |
Proceeds from the sale of equipment | 2,000 | 0 |
Net cash used in investing activities | (60,000) | (97,000) |
Financing Activities | ||
Taxes paid on behalf of equity award participants | (11,000) | (23,000) |
Net cash used in financing activities | (11,000) | (23,000) |
Effect of exchange rate fluctuations on cash | 433,000 | 117,000 |
Net decrease in cash, cash equivalents and restricted cash | (2,199,000) | (1,623,000) |
Cash, cash equivalents, and restricted cash at beginning of period (Note 2) | 14,386,000 | |
Cash, cash equivalents and restricted cash at end of period (Note 2) | $ 12,187,000 | $ 16,223,000 |
General
General | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Organization Fuel Tech, Inc. and subsidiaries ("Fuel Tech", the "Company", "we", "us" or "our") provides advanced engineered solutions for the optimization of combustion systems in utility and industrial applications. Our primary focus is on the worldwide marketing and sale of NO x reduction technologies as well as our FUEL CHEM program. The Company’s NO x reduction technologies reduce nitrogen oxide emissions from boilers, furnaces and other stationary combustion sources. Our FUEL CHEM program is based on proprietary TIFI ® Targeted In-Furnace™ Injection technology, in combination with advanced Computational Fluid Dynamics (CFD) and Chemical Kinetics Modeling (CKM) boiler modeling, in the unique application of specialty chemicals to improve the efficiency, reliability and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity and other sulfur trioxide-related issues in the boiler. Our business is materially dependent on the continued existence and enforcement of air quality regulations, particularly in the United States. We have expended significant resources in the research and development of new technologies in building our proprietary portfolio of air pollution control, fuel and boiler treatment chemicals, computer modeling and advanced visualization technologies. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Exchange Act. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the statements for the periods presented. All significant intercompany transactions and balances have been eliminated. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year ending December 31, 2018. For further information, refer to the audited consolidated financial statements and footnotes thereto included in Fuel Tech’s Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission. Reclassifications Certain reclassifications to prior year amounts have been made in the consolidated financial statements to conform to the current year presentation without affecting the reported net loss. In the second quarter of 2017, the Company suspended all operations associated with the Fuel Conversion business segment. All amounts for the periods presented in the Consolidated Balance Sheets have been reclassified to Assets Held for Sale and all amounts in the Consolidated Statements of Operations have been reclassified to Discontinued Operations; Refer to footnote 4 for further detail. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Restricted cash Restricted cash represents funds that are restricted to satisfy any amount borrowed against the Company's existing revolving credit facility (the Facility) with JPMorgan Chase Bank, N.A. The balance of restricted cash totaling $6,520 will remain through the Maturity Date of the Facility, except for $500 which will become unrestricted cash on August 31, 2018. Refer to Note 10 Debt Financing for further information on the Facility. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09 "Revenue from Contracts with Customers" (ASC 606). These changes created a comprehensive framework for all entities in all industries to apply in the determination of when to recognize revenue, and, therefore, supersede virtually all existing revenue recognition requirements and guidance. This framework is expected to result in less complex guidance in application while providing a consistent and comparable methodology for revenue recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. The new standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. In August 2015, the FASB approved a one-year deferral to January 1, 2018. The Company adopted the standard on January 1, 2018 using the modified retrospective transition method. Refer to Note 3 for further details. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Accordingly, restricted cash will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Consolidated Statement of Cash Flows. The Company adopted ASU 2016-18 beginning on January 1, 2018 and adopted the standard using a retrospective approach. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheet that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows: Three Months Ended 2018 2017 Cash and cash equivalents 5,667 10,203 Restricted cash included in current assets 1,520 6,020 Restricted cash included in long-term assets 5,000 — Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows 12,187 16,223 Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The amendments in this Update increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 will be effective for the Company beginning on January 1, 2019. The Company is in the initial stages of evaluating the impact of the new standard on the accounting policies, processes, and system requirements. While the Company continues to assess the potential impacts of the new standard and anticipate this standard could have a material impact on the consolidated financial statements, the Company does not know or cannot reasonably estimate quantitative information related to the impact of the new standard on the financial statements at this time. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU is meant to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. ASU 2017-04 will be effective for the Company beginning on January 1, 2020. The Company is in the initial stages of evaluating the impact of the new standard on the accounting policies, processes, and system requirements. While the Company continues to assess the potential impacts of the new standard and anticipate this standard could have a material impact on the consolidated financial statements, the Company does not know or cannot reasonably estimate quantitative information related to the impact of the new standard on the financial statements at this time. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Adoption of ASC 606, "Revenue from Contracts with Customers" On January 1, 2018, we adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our legacy accounting under Accounting Standards Codification Topic 605: Revenue Recognition (ASC 605). The cumulative effect of the changes made to our January 1, 2018 consolidated balance sheet for the adoption of ASC 606 were as follows: Balance at December 31, 2017 Adjustments Upon Adoption of ASC 606 Balance at January 1, 2018 Liabilities Other accrued liabilities 5,098 (205 ) 4,893 Equity Accumulated deficit (102,503 ) 205 (102,298 ) The adjustment made to the January 1, 2018 consolidated balance sheet related to deferred revenue under ASC 605 for the license of standalone functional intellectual property to a customer in one of our foreign locations which is recognized at a point in time upon adoption of ASC 606. Revenue Recognition The Company recognizes revenue when control of the promised goods or services is transferred to our customers, in amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Fuel Tech’s sales of its products to customers represent single performance obligations, which are not impacted upon the adoption of ASC 606. The majority of our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. FUEL CHEM Revenues from the sale of chemical products are recognized when control transfers to customer upon shipment or delivery of the product based on the applicable shipping terms. We generally recognize revenue for these arrangements at a point in time based on our evaluation of when the customer obtains control of the promised goods or services. Air Pollution Control Technology Fuel Tech’s APC contracts are typically six to eighteen months in length. A typical contract will have three or four critical operational measurements that, when achieved, serve as the basis for us to invoice the customer via progress billings. At a minimum, these measurements will include the generation of engineering drawings, the shipment of equipment and the completion of a system performance test. As part of most of its contractual APC project agreements, Fuel Tech will agree to customer-specific acceptance criteria that relate to the operational performance of the system that is being sold. These criteria are determined based on modeling that is performed by Fuel Tech personnel, which is based on operational inputs that are provided by the customer. The customer will warrant that these operational inputs are accurate as they are specified in the binding contractual agreement. Further, the customer is solely responsible for the accuracy of the operating condition information; typically all performance guarantees and equipment warranties granted by us are voidable if the operating condition information is inaccurate or is not met. Since control transfers over time, revenue is recognized based on the extent of progress towards completion of the single performance obligation. Fuel Tech uses the cost-to-cost input measure of progress for our contracts since it best depicts the transfer of assets of the customer which occurs as we incur costs on our contracts. Under the cost-to-cost input measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Costs to fulfill include all internal and external engineering costs, equipment charges, inbound and outbound freight expenses, internal and site transfer costs, installation charges, purchasing and receiving costs, inspection costs, warehousing costs, project personnel travel expenses and other direct and indirect expenses specifically identified as project- or product-line related, as appropriate (e.g. test equipment depreciation and certain insurance expenses). Fuel Tech has installed over 1,000 units with APC technology and normally provides performance guarantees to our customers based on the operating conditions for the project. As part of the project implementation process, we perform system start-up and optimization services that effectively serve as a test of actual project performance. We believe that this test, combined with the accuracy of the modeling that is performed, enables revenue to be recognized prior to the receipt of formal customer acceptance. Disaggregated Revenue by Product Technology The following table presents our revenues disaggregated by product technology: Three Months Ended March 31, 2018 2017 (1) Air Pollution Control Technology solutions 7,722 3,348 Spare parts 300 269 Ancillary revenue 561 385 Total Air Pollution Control Technology revenues 8,583 4,002 FUEL CHEM FUEL CHEM technology solutions 4,208 4,489 Total Revenues 12,791 8,491 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. Disaggregated Revenue by Geography The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers: Three Months Ended March 31, 2018 2017 (1) United States 10,242 6,734 Foreign Revenues South America 335 155 Europe 1,454 838 Asia 760 764 Total Foreign Revenues 2,549 1,757 Total Revenues 12,791 8,491 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. Timing of Revenue Recognition The following table presents the timing of our revenue recognition: Three Months Ended March 31, 2018 2017 (1) Products transferred at a point in time 5,069 5,143 Products and services transferred over time 7,722 3,348 Total Revenues 12,791 8,491 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheets. In our Air Pollution Control Technology segment, amounts are billed as work progresses in accordance with agreed-upon contractual terms. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. These assets are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. At March 31, 2018 and December 31, 2017 , contract assets were approximately $8,830 and $7,894 , respectively, and are included in accounts receivable on the consolidated balance sheets. However, the Company will periodically bill in advance of costs incurred before revenue is recognized, resulting in contract liabilities. These liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. Contract liabilities were $623 and $2,403 , at March 31, 2018 and December 31, 2017 , respectively, and are included in other accrued liabilities on the consolidated balance sheets. Changes in the contract asset and liability balances during the three-month period ended March 31, 2018 , were not materially impacted by any other items other than amounts billed and revenue recognized as described previously. During the three months ended March 31, 2018 , revenue recognized that was included in the contract liability balance at the beginning of the period was $1,942 and represented primarily revenue from progress towards completion of our Air Pollution Control technology contracts. As of March 31, 2018 , we had three construction contracts in progress that were identified as loss contracts and a provision for losses of $73 was recorded in other accrued liabilities on the consolidated balance sheet. Remaining Performance Obligations Remaining performance obligations, represents the transaction price of Air Pollution Control technology booked orders for which work has not been performed. As of March 31, 2018 , the aggregate amount of the transaction price allocated to remaining performance obligations was $19,705 . The Company expects to recognize revenue on approximately $17,900 of the remaining performance obligations over the next 12 months with the remaining recognized thereafter. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations During the second quarter of 2017, the Company suspended all operations associated with the Fuel Conversion business segment. The components of the net assets of the Fuel Conversion discontinued operations as of March 31, 2018 and December 31, 2017 are Assets held for sale on the Consolidated Balance Sheets totaling $485 which consists primarily of certain equipment. The resulting amount in assets held for sale was determined using management's assumptions based on a plan of sale and we may not be able to realize as much value from the sale of the assets as we expect. In addition, accrued severance of $281 and $376 is included in the other accrued liabilities line of the Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017 , respectively. The Fuel Conversion business segment had no other assets or liabilities associated with it. The activity of the Fuel Conversion discontinued operations consisted of Research and Development, severance and other costs for the three-month periods ended March 31, 2018 and 2017 of $25 and $730 , respectively. The Fuel Conversion business segment had no revenues associated with it. As of the date the operations were suspended, the Company incurred $581 of severance costs related to the suspension of the Fuel Conversion business segment, of which $311 ( $95 was paid for the three-months ended March 31, 2018 ) will be paid in 2018 and $65 will be paid in 2019. The Company expects to incur storage fees and other disposal costs associated with certain property, plant and equipment and contractual termination payments or other miscellaneous expenses but an estimated amount or range of amounts has not yet been determined. |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities The Company recorded a restructuring charge of $0 and $61 for the three months ended March 31, 2018 and 2017, respectively, in connection with the workforce reduction. The charge consisted primarily of one-time severance payments and benefit continuation costs. The following is a reconciliation of the accrual for the workforce reduction that is included within the "Accrued Liabilities" line of the consolidated balance sheets for the three months ending March 31, 2018 and 2017: Three Months Ended 2018 2017 Restructuring liability at beginning of period $ 391 $ 309 Amounts expensed — 61 Amounts paid (109 ) (184 ) Restructuring liability at end of period $ 282 $ 186 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component were as follows: Three Months Ended March 31, 2018 2017 Foreign currency translation Balance at beginning of period $ (772 ) $ (1,574 ) Other comprehensive loss: Foreign currency translation adjustments (1) 416 116 Balance at end of period $ (356 ) $ (1,458 ) Available-for-sale marketable securities Balance at beginning of period $ 4 $ 6 Other comprehensive income: Net unrealized holding gain (loss) (2) (1 ) 1 Balance at end of period $ 3 $ 7 Total accumulated other comprehensive loss $ (353 ) $ (1,451 ) (1) In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to earnings. (2) In all periods presented, there were no realized holding gains or losses and therefore no amounts were reclassified to earnings. |
Treasury Stock
Treasury Stock | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Treasury Stock | Treasury Stock Common stock held in treasury totaled 653,767 and 644,091 with a cost of $1,482 and $1,472 at March 31, 2018 and December 31, 2017 , respectively. These shares were withheld from employees to settle personal tax withholding obligations that arose as a result of restricted stock units that have vested in the periods presented. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share excludes the dilutive effects of stock options, restricted stock units (RSUs), and the nil coupon non-redeemable convertible unsecured loan notes. Diluted earnings per share includes the dilutive effect of the nil coupon non-redeemable convertible unsecured loan notes, RSUs, and unexercised in-the-money stock options, except in periods of net loss where the effect of these instruments is anti-dilutive. Out-of-money stock options are excluded from diluted earnings per share because they are anti-dilutive. For the three months ended March 31, 2018 and 2017 , basic earnings per share is equal to diluted earnings per share because all outstanding stock awards and convertible loan notes are considered anti-dilutive during periods of net loss. The following table sets forth the weighted-average shares used in calculating the earnings per share for the months ended March 31, 2018 and 2017 . Three Months Ended 2018 2017 Basic weighted-average shares 24,146,000 23,472,000 Conversion of unsecured loan notes — — Unexercised options and unvested RSUs — — Diluted weighted-average shares 24,146,000 23,472,000 Fuel Tech had 2,006,000 and 1,792,000 weighted average equity awards outstanding at March 31, 2018 and 2017 , respectively, that were not dilutive for the purposes of inclusion in the calculation of diluted earnings per share but could potentially become dilutive in future periods. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Under our stock-based employee compensation plan, referred to as the Fuel Tech, Inc. 2014 Long-Term Incentive Plan (Incentive Plan), awards may be granted to participants in the form of Non-Qualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units (“RSUs”), Performance Awards, Bonuses or other forms of share-based or non-share-based awards or combinations thereof. Participants in the Incentive Plan may be our directors, officers, employees, consultants or advisors (except consultants or advisors in capital-raising transactions) as the directors determine are key to the success of our business. There are a maximum of 4,400,676 shares that may be issued or reserved for awards to participants under the Incentive Plan. As of March 31, 2018 , Fuel Tech had 593,198 shares available for share-based awards under the 2014 Plan. We record any excess tax benefits within income tax expense for the three months ended March 31, 2018 . Given the Company has a full valuation allowance on its deferred tax assets, there were no excess tax benefits to record for the three months ended March 31, 2018 . In addition, we account for forfeitures of awards based on an estimate of the number of awards expected to be forfeited and adjusting the estimate when it is no longer probable that the employee will fulfill the service condition. Stock-based compensation is included in selling, general, and administrative costs in our Consolidated Statements of Operations. The components of stock-based compensation for the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended 2018 2017 Stock options and restricted stock units, net of forfeited $ (59 ) $ (10 ) Tax benefit of stock-based compensation expense — — After-tax effect of stock-based compensation $ (59 ) $ (10 ) Stock Options Stock options granted to employees under the Incentive Plans have a 10 -year life and they vest as follows: 50% after the second anniversary of the award date, 25% after the third anniversary, and the final 25% after the fourth anniversary of the award date. Fuel Tech calculates stock compensation expense for employee option awards based on the grant date fair value of the award, less expected annual forfeitures, and recognizes expense on a straight-line basis over the four -year service period of the award. Stock options granted to members of our board of directors vest immediately. Stock compensation for these awards is based on the grant date fair value of the award and is recognized in expense immediately. Fuel Tech uses the Black-Scholes option pricing model to estimate the grant date fair value of employee stock options. The principal variable assumptions utilized in valuing options and the methodology for estimating such model inputs include: (1) risk-free interest rate – an estimate based on the yield of zero–coupon treasury securities with a maturity equal to the expected life of the option; (2) expected volatility – an estimate based on the historical volatility of Fuel Tech’s Common Stock for a period equal to the expected life of the option; and (3) expected life of the option – an estimate based on historical experience including the effect of employee terminations. Stock option activity for Fuel Tech’s Incentive Plans for the three months ended March 31, 2018 was as follows: Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding on January 1, 2018 1,116,750 $ 6.34 Granted — — Exercised — — Expired or forfeited (45,250 ) 12.74 Outstanding on March 31, 2018 1,071,500 $ 6.07 4.75 $ 41,360 Exercisable on March 31, 2018 1,071,500 $ 6.07 4.75 $ 41,360 As of March 31, 2018 , there was no unrecognized compensation cost related to non-vested stock options granted under the Incentive Plans. Restricted Stock Units Restricted stock units (RSUs) granted to employees vest over time based on continued service (typically vesting over a period between two and four years). Such time-vested RSUs are valued at the date of grant using the intrinsic value method based on the closing price of the Common Shares on the grant date. Compensation cost, adjusted for estimated forfeitures, is amortized on a straight-line basis over the requisite service period. At March 31, 2018 , there is $858 of unrecognized compensation costs related to performance based restricted stock unit awards to be recognized over a weighted average period of 2.75 years. A summary of restricted stock unit activity for the three months ended March 31, 2018 is as follows: Shares Weighted Average Grant Date Fair Value Unvested restricted stock units at January 1, 2018 1,359,162 $ 1.28 Granted — — Forfeited (66,665 ) 1.59 Vested (44,445 ) 1.59 Unvested restricted stock units at March 31, 2018 1,248,052 $ 1.25 The fair value of restricted stock that vested during the three month period ending March 31, 2018 was $49 . Deferred Directors Fees In addition to the Incentive Plans, Fuel Tech has a Deferred Compensation Plans for Directors (Deferred Plan). Under the terms of the Deferred Plan, Directors can elect to defer Directors’ fees for shares of Fuel Tech Common Stock that are issuable at a future date as defined in the agreement. In accordance with ASC 718, Fuel Tech accounts for these awards as equity awards as opposed to liability awards. In the three -month periods ended March 31, 2018 and 2017 , Fuel Tech recorded no stock-based compensation expense under the Deferred Plan. |
Debt Financing
Debt Financing | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Financing | Debt Financing On June 16, 2017, the Company amended its existing U.S. Domestic credit facility with JPM Chase to extend the maturity date to June 28, 2019. There are no financial covenants set forth in this amendment to the Facility. The amount of credit available to the Company under the Facility is $5,000 and will remain as such until the Maturity Date of the Facility on June 28, 2019. During the entire period of the Facility the Company must maintain sufficient cash balances in a segregated deposit account equal to the amount of the Facility and has fully pledged such cash as collateral to the bank to support the credit available to the Company under the Facility. As of March 31, 2018 and December 31, 2017 , there were no outstanding borrowings on the credit facility. On January 10, 2018, the Company amended its existing U.S. Domestic credit facility with JPM Chase to increase the credit available under the Facility by $500 to $5,500 from the effective date of the amendment to August 31, 2018. After August 31, 2018, the amount of credit available under the facility will be reduced to $5,000 through the maturity date of June 28, 2019. The Company must maintain an additional $500 in a segregated deposit account and has fully pledged such incremental cash as collateral to the bank to support the credit available to the Company through August 31, 2018. There were no other modifications to the terms of the Facility from the amendment of the facility on June 16, 2017. At March 31, 2018 and December 31, 2017 , the Company had outstanding standby letters of credit and bank guarantees totaling approximately $5,243 and $3,004 , respectively, under the Facility in connection with contracts in process. Fuel Tech is committed to reimbursing the issuing bank for any payments made by the bank under these instruments. The Company pays a commitment fee of 0.25% per year on the unused portion of the revolving credit facility. At March 31, 2018 and December 31, 2017 , approximately $257 and $1,996 was available for future borrowings under the Facility. On June 16, 2017, Beijing Fuel Tech Environmental Technologies Company, Ltd. (Beijing Fuel Tech), a wholly-owned subsidiary of Fuel Tech, entered into a new revolving credit facility (the China Facility) agreement with JPM Chase for RMB 6.5 million (approximately $1,035 ), which expires on June 29, 2018. The current facility for Beijing Fuel Tech is also secured by cash held by the Company of $1,020 in a separate restricted use designated JPM Chase deposit account. The Company intends to renew the China Facility at its maturity. The facility is unsecured, bears interest at a rate of 125% of the People’s Bank of China (PBOC) Base Rate, and is guaranteed by Fuel Tech. Beijing Fuel Tech can use this facility for cash advances and bank guarantees. As of March 31, 2018 and December 31, 2017 , Beijing Fuel Tech had no cash borrowings under the China Facility. At March 31, 2018 and December 31, 2017 , the Company had outstanding standby letters of credit and bank guarantees totaling approximately $192 and $246 , respectively, on its Beijing Fuel Tech revolving credit facility in connection with contracts in process. At March 31, 2018 and December 31, 2017 , approximately $843 and $753 was available for future borrowings. In the event of default on either the domestic facility or the China facility, the cross default feature in each allows the lending bank to accelerate the payments of any amounts outstanding and may, under certain circumstances, allow the bank to cancel the facility. If the Company were unable to obtain a waiver for a breach of covenant and the bank accelerated the payment of any outstanding amounts, such acceleration may cause the Company’s cash position to deteriorate or, if cash on hand were insufficient to satisfy the payment due, may require the Company to obtain alternate financing to satisfy the accelerated payment. |
Business Segment and Geographic
Business Segment and Geographic Financial Data | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment and Geographic Financial Data | Business Segment and Geographic Financial Data Business Segment Financial Data We segregate our financial results into two reportable segments representing two broad technology segments as follows: • The Air Pollution Control technology segment includes technologies to reduce NO x emissions in flue gas from boilers, incinerators, furnaces and other stationary combustion sources. These include Low and Ultra Low NO x Burners (LNB and ULNB), Over-Fire Air (OFA) systems, NO x OUT ® and HERT™ Selective Non-Catalytic Reduction (SNCR) systems, and Advanced Selective Catalytic Reduction (ASCR ™ ) systems. Our ASCR systems include ULNB, OFA, and SNCR components, along with a downsized SCR catalyst, Ammonia Injection Grid (AIG), and Graduated Straightening Grid GSG™ systems to provide high NO x reductions at significantly lower capital and operating costs than conventional SCR systems. The NO x OUT CASCADE ® and NO x OUT-SCR ® processes are more basic, using just SNCR and SCR catalyst components. ULTRA™ technology creates ammonia at a plant site using safe urea for use with any SCR application. Flue Gas Conditioning systems are chemical injection systems offered in markets outside the U.S. and Canada to enhance electrostatic precipitator and fabric filter performance in controlling particulate emissions. • The FUEL CHEM ® technology segment, which uses chemical processes in combination with advanced CFD and CKM boiler modeling, for the control of slagging, fouling, corrosion, opacity and other sulfur trioxide-related issues in furnaces and boilers through the addition of chemicals into the furnace using TIFI ® Targeted In-Furnace Injection™ technology. The “Other” classification includes those profit and loss items not allocated to either reportable segment. There are no inter-segment sales that require elimination. We evaluate performance and allocate resources based on reviewing gross margin by reportable segment. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies (Note 1 in our annual report on Form 10-K). We do not review assets by reportable segment, but rather, in aggregate for the Company as a whole. Information about reporting segment net sales and gross margin from continuing operations are provided below: Three months ended March 31, 2018 Air Pollution FUEL CHEM Segment Other Total Revenues from external customers $ 8,583 $ 4,208 $ — $ 12,791 Cost of sales (5,597 ) (2,169 ) — (7,766 ) Gross margin 2,986 2,039 — 5,025 Selling, general and administrative — — (4,921 ) (4,921 ) Research and development — — (288 ) (288 ) Operating income (loss) from continuing operations $ 2,986 $ 2,039 $ (5,209 ) $ (184 ) Three months ended March 31, 2017 Air Pollution Control Segment FUEL CHEM Segment Other Total Revenues from external customers $ 4,002 $ 4,489 $ — $ 8,491 Cost of sales (2,500 ) (2,269 ) — (4,769 ) Gross margin 1,502 2,220 — 3,722 Selling, general and administrative — — (5,154 ) (5,154 ) Restructuring charge — (61 ) — (61 ) Research and development — — (284 ) (284 ) Operating income (loss) from continuing operations $ 1,502 $ 2,159 $ (5,438 ) $ (1,777 ) Geographic Segment Financial Data Information concerning our operations by geographic area is provided below. Revenues are attributed to countries based on the location of the customer. Assets are those directly associated with operations of the geographic area. Three Months Ended 2018 2017 Revenues: United States $ 10,242 $ 6,734 Foreign 2,549 1,757 $ 12,791 $ 8,491 March 31, December 31, Assets: United States $ 29,699 $ 29,945 Foreign 18,931 20,539 $ 48,630 $ 50,484 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Fuel Tech is subject to various claims and contingencies related to, among other things, workers compensation, general liability (including product liability), and lawsuits. The Company records liabilities where a contingent loss is probable and can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The Company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that a material loss may have been incurred. During the fourth quarter of 2017, the Company was notified that, on a project for which the Company served as a subcontractor to a prime contractor, the prime contractor had received notice from the end-user customer in China of its intent to deduct from final payment for the project liquidated damages in the amount of approximately $920 due to delays in project completion. Thus far, the prime contractor is working to resolve this matter without resorting to litigation. Nevertheless, the matter is in the preliminary stage and we cannot predict the ultimate outcome of this claim or estimate a range of possible losses related to this matter at this time. We intend to pursue all of our rights should the current negotiations not result in a satisfactory resolution of this matter. Fuel Tech issues a standard product warranty with the sale of its products to customers. Our recognition of warranty liability is based primarily on analyses of warranty claims experienced in the preceding years as the nature of our historical product sales for which we offer a warranty are substantially unchanged. This approach provides an aggregate warranty accrual that is historically aligned with actual warranty claims experienced. There was no change in the warranty liability balance during the three -months ended March 31, 2018 and 2017 . The warranty liability balance was $159 at March 31, 2018 and 2017 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate is 0% for the three-month periods ended March 31, 2018 and 2017 , respectively. Effective January 1, 2018, the U.S. federal corporate income tax rate was reduced was 35 percent to 21 percent attributed to the impact of the H.R.1, "An Act for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018" (previously known as "the Tax Cuts and Jobs Act") enacted into law on December 22, 2017. The Company's effective tax rate differs from the statutory federal tax rate of 21% for the three-month periods ended March 31, 2018 primarily due to a full valuation allowance recorded on our United States, China and Italy deferred tax assets since we cannot anticipate when or if we will have sufficient taxable income to utilize the deferred tax assets in the future. Further, our effective tax rate differs from the statutory federal tax rate due to state taxes, differences between U.S. and foreign tax rates, foreign losses incurred with no related tax benefit, non-deductible commissions, and non-deductible meals and entertainment expenses for the three- month periods ended March 31, 2018 and 2017 . Fuel Tech had no unrecognized tax benefits as of March 31, 2018 and December 31, 2017 . |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. Fuel Tech has two reporting units for goodwill evaluation purposes: the FUEL CHEM ® technology segment and the APC technology segment. There is no goodwill associated with our APC segment. At both March 31, 2018 and December 31, 2017 , our entire goodwill balance of $2,116 was allocated to the FUEL CHEM ® technology segment. Goodwill is allocated to each of our reporting units after considering the nature of the net assets giving rise to the goodwill and how each reporting unit would enjoy the benefits and synergies of the net assets acquired. There were no indications of goodwill impairment in the three months ended March 31, 2018 and 2017 . Fuel Tech reviews other intangible assets, which include customer lists and relationships, covenants not to compete, patent assets, tradenames, and acquired technologies, for impairment on a recurring basis or when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. In the event that impairment indicators exist, a further analysis is performed and if the sum of the expected undiscounted future cash flows resulting from the use of the asset is less than the carrying amount of the asset, an impairment loss equal to the excess of the asset’s carrying value over its fair value is recorded. Management considers historical experience and all available information at the time the estimates of future cash flows are made, however, the actual cash values that could be realized may differ from those that are estimated. There were no indications of intangible asset impairment in the three -month periods ended March 31, 2018 and 2017 . |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Exchange Act. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the statements for the periods presented. All significant intercompany transactions and balances have been eliminated. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year ending December 31, 2018. For further information, refer to the audited consolidated financial statements and footnotes thereto included in Fuel Tech’s Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Accordingly, restricted cash will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Consolidated Statement of Cash Flows. The Company adopted ASU 2016-18 beginning on January 1, 2018 and adopted the standard using a retrospective approach. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheet that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows: Three Months Ended 2018 2017 Cash and cash equivalents 5,667 10,203 Restricted cash included in current assets 1,520 6,020 Restricted cash included in long-term assets 5,000 — Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows 12,187 16,223 Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The amendments in this Update increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 will be effective for the Company beginning on January 1, 2019. The Company is in the initial stages of evaluating the impact of the new standard on the accounting policies, processes, and system requirements. While the Company continues to assess the potential impacts of the new standard and anticipate this standard could have a material impact on the consolidated financial statements, the Company does not know or cannot reasonably estimate quantitative information related to the impact of the new standard on the financial statements at this time. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU is meant to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. ASU 2017-04 will be effective for the Company beginning on January 1, 2020. The Company is in the initial stages of evaluating the impact of the new standard on the accounting policies, processes, and system requirements. While the Company continues to assess the potential impacts of the new standard and anticipate this standard could have a material impact on the consolidated financial statements, the Company does not know or cannot reasonably estimate quantitative information related to the impact of the new standard on the financial statements at this time. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when control of the promised goods or services is transferred to our customers, in amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Fuel Tech’s sales of its products to customers represent single performance obligations, which are not impacted upon the adoption of ASC 606. The majority of our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. FUEL CHEM Revenues from the sale of chemical products are recognized when control transfers to customer upon shipment or delivery of the product based on the applicable shipping terms. We generally recognize revenue for these arrangements at a point in time based on our evaluation of when the customer obtains control of the promised goods or services. Air Pollution Control Technology Fuel Tech’s APC contracts are typically six to eighteen months in length. A typical contract will have three or four critical operational measurements that, when achieved, serve as the basis for us to invoice the customer via progress billings. At a minimum, these measurements will include the generation of engineering drawings, the shipment of equipment and the completion of a system performance test. As part of most of its contractual APC project agreements, Fuel Tech will agree to customer-specific acceptance criteria that relate to the operational performance of the system that is being sold. These criteria are determined based on modeling that is performed by Fuel Tech personnel, which is based on operational inputs that are provided by the customer. The customer will warrant that these operational inputs are accurate as they are specified in the binding contractual agreement. Further, the customer is solely responsible for the accuracy of the operating condition information; typically all performance guarantees and equipment warranties granted by us are voidable if the operating condition information is inaccurate or is not met. Since control transfers over time, revenue is recognized based on the extent of progress towards completion of the single performance obligation. Fuel Tech uses the cost-to-cost input measure of progress for our contracts since it best depicts the transfer of assets of the customer which occurs as we incur costs on our contracts. Under the cost-to-cost input measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Costs to fulfill include all internal and external engineering costs, equipment charges, inbound and outbound freight expenses, internal and site transfer costs, installation charges, purchasing and receiving costs, inspection costs, warehousing costs, project personnel travel expenses and other direct and indirect expenses specifically identified as project- or product-line related, as appropriate (e.g. test equipment depreciation and certain insurance expenses). Fuel Tech has installed over 1,000 units with APC technology and normally provides performance guarantees to our customers based on the operating conditions for the project. As part of the project implementation process, we perform system start-up and optimization services that effectively serve as a test of actual project performance. We believe that this test, combined with the accuracy of the modeling that is performed, enables revenue to be recognized prior to the receipt of formal customer acceptance. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheet that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows: Three Months Ended 2018 2017 Cash and cash equivalents 5,667 10,203 Restricted cash included in current assets 1,520 6,020 Restricted cash included in long-term assets 5,000 — Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows 12,187 16,223 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Cumulative Effect of Changes to Balance Sheet | The cumulative effect of the changes made to our January 1, 2018 consolidated balance sheet for the adoption of ASC 606 were as follows: Balance at December 31, 2017 Adjustments Upon Adoption of ASC 606 Balance at January 1, 2018 Liabilities Other accrued liabilities 5,098 (205 ) 4,893 Equity Accumulated deficit (102,503 ) 205 (102,298 ) |
Disaggregation of Revenue | The following table presents our revenues disaggregated by product technology: Three Months Ended March 31, 2018 2017 (1) Air Pollution Control Technology solutions 7,722 3,348 Spare parts 300 269 Ancillary revenue 561 385 Total Air Pollution Control Technology revenues 8,583 4,002 FUEL CHEM FUEL CHEM technology solutions 4,208 4,489 Total Revenues 12,791 8,491 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. The following table presents the timing of our revenue recognition: Three Months Ended March 31, 2018 2017 (1) Products transferred at a point in time 5,069 5,143 Products and services transferred over time 7,722 3,348 Total Revenues 12,791 8,491 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. |
Revenue Disaggregated by Geography | The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers: Three Months Ended March 31, 2018 2017 (1) United States 10,242 6,734 Foreign Revenues South America 335 155 Europe 1,454 838 Asia 760 764 Total Foreign Revenues 2,549 1,757 Total Revenues 12,791 8,491 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Reconciliation of restructuring accrual | The following is a reconciliation of the accrual for the workforce reduction that is included within the "Accrued Liabilities" line of the consolidated balance sheets for the three months ending March 31, 2018 and 2017: Three Months Ended 2018 2017 Restructuring liability at beginning of period $ 391 $ 309 Amounts expensed — 61 Amounts paid (109 ) (184 ) Restructuring liability at end of period $ 282 $ 186 |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive loss by component were as follows: Three Months Ended March 31, 2018 2017 Foreign currency translation Balance at beginning of period $ (772 ) $ (1,574 ) Other comprehensive loss: Foreign currency translation adjustments (1) 416 116 Balance at end of period $ (356 ) $ (1,458 ) Available-for-sale marketable securities Balance at beginning of period $ 4 $ 6 Other comprehensive income: Net unrealized holding gain (loss) (2) (1 ) 1 Balance at end of period $ 3 $ 7 Total accumulated other comprehensive loss $ (353 ) $ (1,451 ) (1) In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to earnings. (2) In all periods presented, there were no realized holding gains or losses and therefore no amounts were reclassified to earnings. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the weighted-average shares used in calculating the earnings per share for the months ended March 31, 2018 and 2017 . Three Months Ended 2018 2017 Basic weighted-average shares 24,146,000 23,472,000 Conversion of unsecured loan notes — — Unexercised options and unvested RSUs — — Diluted weighted-average shares 24,146,000 23,472,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The components of stock-based compensation for the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended 2018 2017 Stock options and restricted stock units, net of forfeited $ (59 ) $ (10 ) Tax benefit of stock-based compensation expense — — After-tax effect of stock-based compensation $ (59 ) $ (10 ) |
Schedule of Stock Option Activity | Stock option activity for Fuel Tech’s Incentive Plans for the three months ended March 31, 2018 was as follows: Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding on January 1, 2018 1,116,750 $ 6.34 Granted — — Exercised — — Expired or forfeited (45,250 ) 12.74 Outstanding on March 31, 2018 1,071,500 $ 6.07 4.75 $ 41,360 Exercisable on March 31, 2018 1,071,500 $ 6.07 4.75 $ 41,360 |
Schedule of Nonvested Restricted Stock Units Activity | A summary of restricted stock unit activity for the three months ended March 31, 2018 is as follows: Shares Weighted Average Grant Date Fair Value Unvested restricted stock units at January 1, 2018 1,359,162 $ 1.28 Granted — — Forfeited (66,665 ) 1.59 Vested (44,445 ) 1.59 Unvested restricted stock units at March 31, 2018 1,248,052 $ 1.25 |
Business Segment and Geograph30
Business Segment and Geographic Financial Data (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about reporting segment net sales and gross margin from continuing operations are provided below: Three months ended March 31, 2018 Air Pollution FUEL CHEM Segment Other Total Revenues from external customers $ 8,583 $ 4,208 $ — $ 12,791 Cost of sales (5,597 ) (2,169 ) — (7,766 ) Gross margin 2,986 2,039 — 5,025 Selling, general and administrative — — (4,921 ) (4,921 ) Research and development — — (288 ) (288 ) Operating income (loss) from continuing operations $ 2,986 $ 2,039 $ (5,209 ) $ (184 ) Three months ended March 31, 2017 Air Pollution Control Segment FUEL CHEM Segment Other Total Revenues from external customers $ 4,002 $ 4,489 $ — $ 8,491 Cost of sales (2,500 ) (2,269 ) — (4,769 ) Gross margin 1,502 2,220 — 3,722 Selling, general and administrative — — (5,154 ) (5,154 ) Restructuring charge — (61 ) — (61 ) Research and development — — (284 ) (284 ) Operating income (loss) from continuing operations $ 1,502 $ 2,159 $ (5,438 ) $ (1,777 ) |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | Information concerning our operations by geographic area is provided below. Revenues are attributed to countries based on the location of the customer. Assets are those directly associated with operations of the geographic area. Three Months Ended 2018 2017 Revenues: United States $ 10,242 $ 6,734 Foreign 2,549 1,757 $ 12,791 $ 8,491 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | March 31, December 31, Assets: United States $ 29,699 $ 29,945 Foreign 18,931 20,539 $ 48,630 $ 50,484 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||||
Balance of total restricted cash | $ 6,520,000 | |||
Cash and cash equivalents | $ 5,667,000 | 8,366,000 | $ 10,203,000 | |
Restricted cash included in current assets | 1,520,000 | 1,020,000 | 6,020,000 | |
Restricted cash included in long-term assets | 5,000,000 | 5,000,000 | 0 | |
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows | $ 12,187,000 | $ 14,386,000 | $ 16,223,000 | $ 17,846,000 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled receivables, current | $ 8,830,000 | $ 7,894,000 |
Billings in excess of cost, current | 623,000 | $ 2,403,000 |
Provision for losses on contracts | 73,000 | |
Remaining performance obligations | $ 19,705 |
Revenue - Cumulative Effect of
Revenue - Cumulative Effect of Changes to Balance Sheet (Details) - USD ($) | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Other accrued liabilities | $ 4,893 | ||
Accumulated deficit | $ (102,514,000) | (102,298) | $ (102,503,000) |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Other accrued liabilities | 5,098 | ||
Accumulated deficit | $ (102,503) | ||
Adjustments Upon Adoption of ASC 606 | Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Other accrued liabilities | (205) | ||
Accumulated deficit | $ 205 |
Revenue - Revenues Disaggregate
Revenue - Revenues Disaggregated by Product Technology (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 12,791 | $ 8,491 |
Air Pollution Control | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 8,583 | 4,002 |
Air Pollution Control | Technology solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 7,722 | 3,348 |
Air Pollution Control | Spare parts | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 300 | 269 |
Air Pollution Control | Ancillary revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 561 | 385 |
FUEL CHEM | Technology solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 4,208 | $ 4,489 |
Revenue - Disaggregated Revenue
Revenue - Disaggregated Revenue by Geography (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 12,791 | $ 8,491 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 10,242 | 6,734 |
South America | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 335 | 155 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 1,454 | 838 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 760 | 764 |
Total Foreign Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 2,549 | $ 1,757 |
Revenue - Timing of Revenue Rec
Revenue - Timing of Revenue Recognition (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 12,791 | $ 8,491 |
Products transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 5,069 | 5,143 |
Products and services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 7,722 | $ 3,348 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | $ 485 | $ 485 | |
Accrued severance charges | $ 376 | ||
Loss from discontinued operations | (25) | $ (730) | |
Fuel Conversion Segment | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Expected severance costs | 581 | ||
Fuel Conversion Segment | Period One | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Severance costs | 0 | ||
Fuel Conversion Segment | Period Two | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cost remaining | 311 | ||
Fuel Conversion Segment | Period Three | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cost remaining | 65 | ||
Fuel Conversion Segment | Accrued Liabilities | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Accrued severance charges | $ 281 |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring liability, beginning balance | $ 391 | $ 309 |
Amounts expensed | 0 | 61 |
Amounts paid | (109) | (184) |
Restructuring liability, ending balance | $ 282 | $ 186 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Balance at beginning of period | $ 34,341 | |
Balance at end of period | 34,676 | |
Foreign currency translation | ||
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Balance at beginning of period | (772) | $ (1,574) |
Total other comprehensive (loss) income | 416 | 116 |
Balance at end of period | (356) | (1,458) |
Available-for-sale marketable securities | ||
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Balance at beginning of period | 4 | 6 |
Other comprehensive (loss) income | (1) | 1 |
Balance at end of period | 3 | 7 |
Total accumulated other comprehensive loss | ||
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Balance at end of period | $ (353) | $ (1,451) |
Treasury Stock (Details)
Treasury Stock (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||
Treasury stock (in shares) | 653,767,000 | 644,091,000 |
Cost of common stock held in treasury | $ 1,482 | $ 1,472 |
Earnings per Share - Basic Earn
Earnings per Share - Basic Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Basic weighted-average shares (in shares) | 24,146,000 | 23,472,000 |
Conversion of unsecured loan notes (in shares) | 0 | 0 |
Unexercised options and unvested RSUs (in shares) | 0 | 0 |
Diluted weighted-average shares (in shares) | 24,146,000 | 23,472,000 |
Earnings per Share (Details)
Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,006 | 1,792 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ (59,000) | $ (10,000) |
Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares originally reserved (in shares) | 4,400,676 | |
Number of shares available for grant (in shares) | 593,198 | |
Incentive Plan | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 10 years | |
Award service period (in years) | 4 years | |
Unrecognized compensation costs | $ 0 | |
Incentive Plan | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 858,000 | |
Unrecognized compensation cost, period of recognition (in years) | 2 years 9 months | |
Incentive Plan | Restricted Stock Units (RSUs) | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 2 years | |
Incentive Plan | Restricted Stock Units (RSUs) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
Incentive Plan | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of stock vested | $ 49,000 | |
Incentive Plan | Second Anniversary of Award Date | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percent of options vesting | 50.00% | |
Incentive Plan | Third Anniversary of Award Date | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percent of options vesting | 25.00% | |
Incentive Plan | Fourth Anniversary of Award Date | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percent of options vesting | 25.00% | |
Deferred Plan | Deferred Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 0 | $ 0 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock options and restricted stock units, net of forfeited | $ (59) | $ (10) |
Tax benefit of stock-based compensation expense | 0 | 0 |
After-tax effect of stock-based compensation | $ (59) | $ (10) |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation - Stock Option Activity (Details) - Stock Options - Incentive Plan | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Number of Options | |
Outstanding, beginning of period (in shares) | shares | 1,116,750 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Expired or forfeited (in shares) | shares | (45,250) |
Outstanding, end of period (in shares) | shares | 1,071,500 |
Number of Shares, exercisable (in shares) | shares | 1,071,500 |
Weighted- Average Exercise Price | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 6.34 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Expired or forfeited (in dollars per share) | $ / shares | 12.74 |
Outstanding, end of period (in dollars per share) | $ / shares | 6.07 |
Weighted average exercise price, exercisable (in dollars per share) | $ / shares | $ 6.07 |
Weighted- Average Remaining Contractual Term, Outstanding | 4 years 9 months |
Weighted- Average Remaining Contractual Term, Exercisable | 4 years 9 months |
Aggregate Intrinsic Value, Outstanding | $ | $ 41,360,000 |
Aggregate Intrinsic Value, Exercisable | $ | 41,360,000 |
Unrecognized compensation costs | $ | $ 0 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Unit Activity (Details) - Incentive Plan - Restricted Stock | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Shares (in shares) | |
Beginning balance (in shares) | shares | 1,359,162 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | (66,665) |
Vested (in shares) | shares | (44,445) |
Ending balance (in shares) | shares | 1,248,052 |
Weighted Average Grant Date Fair Value (in Dollars per share) | |
Beginning balance (in dollars per share) | $ / shares | $ 1.28 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 1.59 |
Vested (in dollars per share) | $ / shares | 1.59 |
Ending balance (in dollars per share) | $ / shares | $ 1.25 |
Debt Financing (Details)
Debt Financing (Details) | Jan. 10, 2018USD ($) | Jun. 26, 2015 | Mar. 31, 2018USD ($) | Sep. 01, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 24, 2016CNY (¥) | Jun. 24, 2016USD ($) |
Line of Credit Facility [Line Items] | ||||||||
Restricted cash | $ 1,520,000 | $ 1,020,000 | $ 6,020,000 | |||||
Domestic Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Letters of credit, amount outstanding | $ 5,243,000 | 3,004,000 | ||||||
Line of credit, commitment fee percentage | 0.25% | |||||||
Line of credit, remaining borrowing capacity | $ 257,000 | 1,996,000 | ||||||
China Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit, maximum borrowing capacity | ¥ 6,500,000 | $ 1,035,000 | ||||||
Line of credit, amount outstanding | 0 | |||||||
China Facility | Base Rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate (as percent) | 125.00% | |||||||
Standby Letters of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Letters of credit, amount outstanding | 192,000 | 246,000 | ||||||
Line of credit, remaining borrowing capacity | 843,000 | 753,000 | ||||||
Amended Amount | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit, maximum borrowing capacity | 5,000,000 | |||||||
Letters of credit, amount outstanding | $ 0 | $ 0 | ||||||
Amendment 2018 | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit, maximum borrowing capacity | $ 5,500,000 | |||||||
Increase in credit facility | $ 500,000 | |||||||
Forecast | Amendment 2018 | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit, maximum borrowing capacity | $ 5,000,000 |
Business Segment and Geograph48
Business Segment and Geographic Financial Data (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Business Segment and Geograph49
Business Segment and Geographic Financial Data - Reporting Segment Net Sales and Gross Margin (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues from external customers | $ 12,791 | $ 8,491 |
Cost of sales | (7,766) | (4,769) |
Gross margin | 5,025 | 3,722 |
Selling, general and administrative | (4,921) | (5,154) |
Restructuring charge | 0 | (61) |
Research and development | (288) | (284) |
Operating loss from continuing operations | (184) | (1,777) |
Air Pollution Control Segment | ||
Revenues from external customers | 8,583 | 4,002 |
Cost of sales | (5,597) | (2,500) |
Gross margin | 2,986 | 1,502 |
Selling, general and administrative | 0 | 0 |
Restructuring charge | 0 | |
Research and development | 0 | 0 |
Operating loss from continuing operations | 2,986 | 1,502 |
FUEL CHEM Segment | ||
Revenues from external customers | 4,208 | 4,489 |
Cost of sales | (2,169) | (2,269) |
Gross margin | 2,039 | 2,220 |
Selling, general and administrative | 0 | 0 |
Restructuring charge | (61) | |
Research and development | 0 | 0 |
Operating loss from continuing operations | 2,039 | 2,159 |
Other | ||
Selling, general and administrative | (4,921) | (5,154) |
Restructuring charge | 0 | |
Research and development | (288) | (284) |
Operating loss from continuing operations | $ (5,209) | $ (5,438) |
Business Segment and Geograph50
Business Segment and Geographic Financial Data - Operations by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Revenues | $ 12,791 | $ 8,491 |
United States | ||
Revenues: | ||
Revenues | 10,242 | 6,734 |
Foreign | ||
Revenues: | ||
Revenues | $ 2,549 | $ 1,757 |
Business Segment and Geograph51
Business Segment and Geographic Financial Data - Assets by Geographic Area (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Assets | $ 48,630 | $ 50,484 |
United States | ||
ASSETS | ||
Assets | 29,699 | 29,945 |
Foreign | ||
ASSETS | ||
Assets | $ 18,931 | $ 20,539 |
(Details)
(Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Damages sought | $ 920,000 | ||
Change in warranty liability balance | $ 0 | $ 0 | |
Warranty liability balance | $ 159,000 | $ 159,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 0.00% | 0.00% | |
Federal tax rate (as a percent) | 21.00% | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Details) | 3 Months Ended | ||
Mar. 31, 2018USD ($)reporting_unit | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Goodwill [Line Items] | |||
Number of reporting units | reporting_unit | 2 | ||
Goodwill | $ 2,116,000 | ||
Goodwill impairments | $ 0 | $ 0 | |
FUEL CHEM Segment | |||
Goodwill [Line Items] | |||
Goodwill | $ 2,116,000 | $ 2,116,000 |