| Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES 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 Air Pollution Control (APC) technologies as well as our FUEL CHEM program. The Company's NOx reduction technologies reduce nitrogen oxide emissions from boilers, furnaces and other stationary combustion sources. Our FUEL CHEM program is based on proprietary TIFI ® 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. International revenues were $3,928 $4,585 December 31, 2020 2019 17% 15% not Basis of Presentation The consolidated financial statements include the accounts of Fuel Tech and its wholly-owned subsidiaries. All intercompany transactions have been eliminated. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The books and records of subsidiaries located in foreign countries are maintained according to generally accepted accounting principles in those countries. Upon consolidation, the Company evaluates the differences in accounting principles and determines whether adjustments are necessary to convert the foreign financial statements to the accounting principles upon which the consolidated financial statements are based. All intercompany transactions have been eliminated. COVID- 19 The emergence of the coronavirus (COVID- 19 not 19 twelve December 31, 2020, may may third Management cannot predict the full impact of the COVID- 19 19 Liquidity We have experienced continued declines in revenues and recurring losses. As a result, we have evaluated our ongoing business needs, and considered the cash requirements of our Air Pollution Control (APC) and FUEL CHEM businesses. This evaluation included consideration of the following: a) customer and revenue trends in our APC and FUEL CHEM business segments, b) current operating structure and expenditure levels, c) current availability of working capital, and d) support for our research and development initiatives. We continue to monitor our liquidity needs and have taken measures to reduce expenses and restructure operations which we feel are necessary to ensure we maintain sufficient working capital and liquidity to operate the business and invest in our future. On February 11, 2021, 5,000,000 2,500,000 2,500,000 $5.10 $5.1625 $25.8 12 Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company uses estimates in accounting for, among other items, revenue recognition, allowance for doubtful accounts, income tax provisions, excess and obsolete inventory reserve, impairment of long-lived assets, and warranty expenses. Actual results could differ from those estimates. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable, accounts payable and long-term borrowings are reasonable estimates of their fair value due to their short-term nature. Cash, cash equivalents and restricted cash We include cash and investments having an original maturity of three December 31, 2020 $858 may $1,111 December 31, 2020 $314 December 31, 2020 Restricted cash as of December 31, 2020 $1,966 1,595 no December 31, 2020 371 February 1, 2023) 11 Restricted cash as of December 31, 2019 September 25, 2019. 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: December 31, 2020 December 31, 2019 Cash and cash equivalents $ 10,640 $ 10,914 Restricted cash included in current assets 1,595 2,080 Restricted cash included in long-term assets 371 507 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows $ 12,606 $ 13,501 Foreign Currency Risk Management Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates. We do not Accounts Receivable Accounts receivable consist of amounts due to us in the normal course of our business, are not not 606 Revenue from Contracts with Customers December 31, 2020 2019 2,348 1,857 3 Allowance for Doubtful Accounts The allowance for doubtful accounts is our management's best estimate of the amount of credit losses in accounts receivable. In order to control and monitor the credit risk associated with our customer base, we review the credit worthiness of customers on a recurring basis. Factors influencing the level of scrutiny include the level of business the customer has with Fuel Tech, the customer's payment history, and the customer's financial stability. Receivables are considered past due if payment is not 30 not December 31. Year Balance at January 1 Provision charged to expense Write-offs / Recoveries Balance at December 31 2019 $ 1,411 $ 573 $ (168 ) $ 1,816 2020 $ 1,816 $ (498 ) $ (483 ) $ 835 Prepaid expenses and other current assets Prepaid expenses and other current assets includes Chinese banker acceptances of $549 $43 December 31, 2020 2019 three six Inventories Inventories consist primarily of spare parts and are stated at the lower of cost or net realizable value, using the weighted-average cost method. Usage is recorded in cost of sales in the period that parts were issued to a project or used to service equipment. Inventories are periodically evaluated to identify obsolete or otherwise impaired parts and are written off when management determines usage is not December 31. Year Balance at January 1 Provision charged to expense Write-offs / Recoveries Balance at December 31 2019 1,131 — (131 ) 1,000 2020 1,000 — (93 ) 907 Foreign Currency Translation and Transactions Assets and liabilities of consolidated foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at year end. Revenues and expenses are translated at average exchange rates prevailing during the year. Gains or losses on foreign currency transactions and the related tax effects are reflected in net income. The resulting translation adjustments are included in stockholders' equity as part of accumulated other comprehensive loss. During 2020 $408 . Accumulated Other Comprehensive Loss December 31, 2020 2019 Foreign currency translation Balance at beginning of period $ (1,778 ) $ (1,285 ) Other comprehensive loss: Foreign currency translation adjustments (1) 408 (493 ) Balance at end of period $ (1,370 ) $ (1,778 ) Total accumulated other comprehensive loss $ (1,370 ) $ (1,778 ) ( 1 In all periods presented, there were no 2019. 2019 fourth 2019. Research and Development Research and development costs are expensed as incurred. Research and development projects funded by customer contracts are reported as part of cost of goods sold. Internally funded research and development expenses are reported as operating expenses. Product/System Warranty We typically warrant our air pollution control products and systems against defects in design, materials and workmanship for one two Goodwill Goodwill is tested for impairment at least annually as of the first fourth may not first not may two may October 1, 2020 no Goodwill is allocated to each of our reporting units, which is defined as an operating segment or one two no The Company utilizes ASU 2017 04, 350 fourth The entire goodwill balance of $2,116 December 31, 2020 2019 not December 31, 2020 2019 Other Intangible Assets Management reviews other finite-lived intangible assets, patent assets, trade names, and lease assets for impairment when events or changes in circumstances indicate the carrying amount of an asset or asset group may not may During the year ended December 31, 2020 197 no no December 31, 2020 During the year ended December 31, 2019 127 not December 31, 2019 Third-party costs related to the development of patents are included within other intangible assets on the consolidated balance sheets. As of December 31, 2020 2019 553 906 third December 31, 2020 2019 $0 $56, Our intellectual property portfolio has been a significant building block for the Air Pollution Control and FUEL CHEM technology segments. The patents are essential to the generation of revenue for our businesses and are essential to protect us from competition in the markets in which we serve. These costs are being amortized on the straight-line method over the period beginning with the patent issuance date and ending on the patent expiration date. Patent maintenance fees are charged to operations as incurred. Amortization expense from continuing operations for intangible assets was $185 $186 December 31, 2020 2019 December 31, 2020 2019 2020 2019 Description of Other Intangibles Amortization Period (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patent assets 1 20 1,310 (757 ) 553 1,897 (991 ) 906 Total $ 1,310 $ (757 ) $ 553 $ 1,897 $ (991 ) $ 906 The table below shows the estimated future amortization expense for intangible assets: Year Estimated Amortization Expense 2021 $ 145 2022 52 2023 51 2024 44 2025 43 Thereafter 218 Total $ 553 Property and Equipment Property and equipment is stated at historical cost and does not $663 $810 December 31, 2020 2019 December 31, 2020 2019 Description of Property and Equipment Depreciable Life (years) 2020 2019 Land $ 1,050 $ 1,050 Building 39 3,950 3,950 Building and leasehold improvements 3 39 2,886 2,886 Field equipment 3 4 19,748 19,507 Computer equipment and software 2 3 2,954 2,936 Furniture and fixtures 3 10 1,477 1,475 Vehicles 5 32 32 Construction in process 12 — Total cost 32,109 31,836 Less accumulated depreciation (26,889 ) (26,174 ) Total net book value $ 5,220 $ 5,662 Property and equipment is reviewed for impairment when events and circumstances indicate that the carrying amount of the assets (or asset group) may not Revenue Recognition The Company recognizes revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Fuel Tech's sales of products to customers represent single performance obligations, which are not 606. not not Air Pollution Control Technology Fuel Tech's APC contracts are typically six eighteen three four 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 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 to 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 1,200 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. On occasion, Fuel Tech will engineer and sell its chemical pumping equipment. These projects are similar in nature to the APC projects described above and for those projects where control transfers over time, revenue is recognized based on the extent of progress towards completion of the single performance obligation. For projects containing multiple performance obligations, the Company allocates the transaction price based on the estimated standalone selling price. The Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the stand-alone selling price, which may one The consideration allocated to each performance obligation is recognized as revenue when control is transferred for the related goods or services. For performance obligations which consist of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. The Company receives payments from its customers based on billing schedules established in each contract. Up-front payments and fees are recorded as deferred revenue upon receipt or when due until the Company performs its obligations under these arrangements. Amounts are recorded as accounts receivable when the Company's right to consideration is unconditional. Cost of Sales Cost of sales includes all internal and external engineering costs, equipment and chemical 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). Certain depreciation and amortization expenses related to tangible and intangible assets, respectively, are allocated to cost of sales. We classify shipping and handling costs in cost of sales in the consolidated statements of operations. Selling, General and Administrative Expenses Selling, general and administrative expenses primarily include the following categories except where an allocation to the cost of sales line item is warranted due to the project- or product-line nature of a portion of the expense category: salaries and wages, employee benefits, non-project travel, insurance, legal, rent, accounting and auditing, recruiting, telephony, employee training, Board of Directors' fees, auto rental, office supplies, dues and subscriptions, utilities, real estate taxes, commissions and bonuses, marketing materials, postage and business taxes. Departments comprising the selling, general and administrative line item primarily include the functions of executive management, finance and accounting, investor relations, regulatory affairs, marketing, business development, information technology, human resources, sales, legal and general administration. Income Taxes The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, the provision for income taxes represents income taxes paid or payable (or received or receivable) for the current year plus the change in deferred taxes during the year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid, and result from differences between the financial and tax bases of our assets and liabilities and are adjusted for changes in tax rates and tax laws when enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not not not no may not Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not Leases On January 1, 2019, 842 2018 11, 842 10 Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not may We have lease agreements with lease and non-lease components, and we elected the practical expedient to not 12 During the quarter ended September 30, 2020, 842, January 1, 2019. one not We evaluated the revision in accordance with Accounting Standards Codification (ASC) 250, No. 108, not not not not December 31, 2019. As Previously Reported Year Ended December 31, 2019 Revision As Revised Year Ended December 31, 2019 Right of Use Operating Lease Asset 980 (618 ) 362 Operating Lease Liability - Current 300 (118 ) 182 Operating Lease Liability - Non Current 680 (500 ) 180 Stock-Based Compensation Our stock-based employee compensation plan, referred to as the Fuel Tech, Inc. 2014 May 2014 may 5,600,676 may December 31, 2020 2,533,639 December 31, 2020 Basic and Diluted Earnings per Common Share Basic earnings per share excludes the antidilutive effects of stock options, restricted stock units (RSUs) and the nil 7 nil December 31, 2020 2019 584,505 913,000, December 31, 2020 2019 547,000 728,000 The table below sets forth the weighted-average shares used at December 31 2020 2019 Basic weighted-average shares 24,691,000 24,202,000 Conversion of unsecured loan notes — — Unexercised options and unvested restricted stock units — — Diluted weighted-average shares 24,691,000 24,202,000 Risk Concentrations Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. However, management believes the Company is not For the year ended December 31, 2020 two 10% 28% no 10% December 31, 2020 For the year ended December 31, 2019 three 10% 19% two 11% no 10% December 31, 2019 We control credit risk through requiring milestone payments on long-term contracts, performing ongoing credit evaluations of its customers, and in some cases obtaining security for payment through bank guarantees and letters of credit. Treasury Stock We use the cost method to account for common stock repurchases. During the years ended December 31, 2020 2019 152,257 140,784 $570 $128, 6, Recently Issued Accounting Pronouncements In December 2019, 2019 12, 740 not first 2021, In June 2016, 2016 13, 326 December 15, 2022, not |
