Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | LAPOLLA INDUSTRIES INC | |
Entity Central Index Key | 875,296 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 123,394,129 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets, Current [Abstract] | ||
Cash | $ 1,217 | $ 0 |
Trade Receivables, Net | 11,412 | 10,006 |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | 9 | 42 |
Inventories | 7,151 | 8,174 |
Prepaid Expenses and Other Current Assets | 1,124 | 1,174 |
Total Current Assets | 20,913 | 19,396 |
Property, Plant and Equipment | 1,016 | 1,087 |
Goodwill | 4,235 | 4,235 |
Other Intangible Assets, Net | 1,176 | 1,197 |
Deposits and Other Non-Current Assets, Net | 88 | 94 |
Total Assets | 27,428 | 26,009 |
Current Liabilities: | ||
Accounts Payable | 7,359 | 6,384 |
Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | 65 | 51 |
Accrued Expenses and Other Current Liabilities | 2,269 | 2,773 |
Total Current Liabilities | 9,693 | 9,208 |
Long-Term Debt, Net | 9,662 | 14,137 |
Accrued Interest – Note Payable – Related Party | 4 | 4 |
Deferred Tax Liability | 404 | 365 |
Total Liabilities | 19,763 | 23,714 |
Stockholders' Equity: | ||
Common Stock, $0.01 Par Value; 140,000,000 Shares Authorized; 123,394,129 and 122,125,072 Issued and Outstanding for September 30, 2016 and December 31, 2015, respectively. | 1,234 | 1,221 |
Additional Paid-In Capital | 93,323 | 91,930 |
Accumulated Deficit | (86,892) | (90,856) |
Total Stockholders' Equity | 7,665 | 2,295 |
Total Liabilities and Stockholders' Equity | $ 27,428 | $ 26,009 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 140,000,000 | 140,000,000 |
Common Stock, Shares, Issued | 123,394,129 | 122,125,072 |
Common Stock, Shares, Outstanding | 123,394,129 | 122,125,072 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Sales | $ 20,917 | $ 20,182 | $ 61,647 | $ 57,219 |
Cost of Sales | 14,773 | 15,340 | 43,719 | 44,352 |
Gross Profit | 6,144 | 4,842 | 17,928 | 12,867 |
Operating Expenses: | ||||
Selling, General and Administrative | 3,525 | 3,391 | 11,100 | 10,472 |
Professional Fees | 339 | 335 | 969 | 941 |
Depreciation | 20 | 35 | 79 | 108 |
Amortization of Other Intangible Assets | 67 | 60 | 210 | 192 |
Consulting Fees | 123 | 140 | 421 | 499 |
Total Operating Expenses | 4,074 | 3,961 | 12,779 | 12,212 |
Operating Income | 2,070 | 881 | 5,149 | 655 |
Other (Income) Expense: | ||||
Interest Expense | 192 | 335 | 818 | 995 |
Interest Expense – Related Party | 125 | 196 | 491 | 579 |
Interest Expense – Amortization of Discount | 30 | 46 | 120 | 136 |
Loss on Extinguishment of Debt | 306 | 0 | 306 | 0 |
Other, Net | (90) | (2) | (701) | 5 |
Total Other Expense | 563 | 575 | 1,034 | 1,715 |
Income (Loss) Before Income Taxes | 1,507 | 306 | 4,115 | (1,060) |
Income Tax Expense | 39 | 91 | 151 | 273 |
Net Income (Loss) | $ 1,468 | $ 215 | $ 3,964 | $ (1,333) |
Basic | $ 0.01 | $ 0 | $ 0.03 | $ (0.01) |
Basic | 123,016 | 121,556 | 122,654 | 121,076 |
Net Income (Loss) Per Share – Diluted | $ 0.01 | $ 0 | $ 0.03 | $ (0.01) |
Diluted | 123,050 | 121,558 | 122,655 | 121,076 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Income (Loss) | $ 3,964 | $ (1,333) |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities: | ||
Depreciation | 202 | 268 |
Amortization of Other Intangible Assets | 210 | 192 |
Provision for Losses on Accounts Receivable | 169 | 245 |
Share Based Compensation Expense | 711 | 1,017 |
Interest Expense – Related Party | 491 | 579 |
Interest Expense – Enhanced Notes PIK | 0 | 245 |
Interest Expense – Amortization of Discount | 120 | 136 |
Loss on Foreign Currency Exchange | 8 | 51 |
Gain on Disposal of Assets | (9) | (4) |
Loss on Extinguishment of Debt | 306 | 0 |
Deferred Income Tax Provision | 39 | 273 |
Changes in Assets and Liabilities: | ||
Trade Receivables | (1,580) | (1,943) |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | 33 | (22) |
Inventories | 1,022 | (718) |
Prepaid Expenses and Other Current Assets | 51 | 662 |
Other Intangible Assets | (190) | (225) |
Deposits and Other Non-Current Assets | 41 | 112 |
Accounts Payable | 973 | (366) |
Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | 14 | 125 |
Accrued Expenses and Other Current Liabilities | (504) | 421 |
Net Cash Provided by (Used in) Operating Activities | 6,071 | (285) |
Cash Flows From Investing Activities: | ||
Additions to Property, Plant and Equipment | (133) | (56) |
Net Cash Used in Investing Activities | (133) | (56) |
Cash Flows From Financing Activities: | ||
Proceeds from Line of Credit | 9,953 | 0 |
Principal Repayments to Line of Credit | (250) | 0 |
Proceeds from Revolver Loan | 54,996 | 58,772 |
Principal Repayments to Revolver Loan | (61,732) | (58,681) |
Proceeds from Note Payable – Related Party | 0 | 250 |
Principal Repayments on Enhanced Notes | (7,688) | 0 |
Net Cash (Used in) Provided by Financing Activities | (4,721) | 341 |
Net Increase in Cash | 1,217 | 0 |
Cash at Beginning of Period | 0 | 0 |
Cash at End of Period | 1,217 | 0 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Payments for Income Taxes | 27 | 0 |
Cash Payments for Interest | 735 | 791 |
Supplemental Schedule of Non Cash Investing and Financing Activities: | ||
Issuances of Common Stock for Guaranty by Related Party classified as Interest Expense | $ 695 | $ 550 |
Basis of Presentation, Critical
Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions | Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions The condensed financial statements included herein are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying statements reflect adjustments necessary to present fairly the financial position, results of operations and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the Notes to the condensed financial statements. These unaudited condensed financial statements should be read in conjunction with the risk factors and the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 , which was filed with the SEC on March 28, 2016, in order to fully understand the basis of presentation. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. The Company’s critical accounting policies were described in Note 1 to the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . There have been no significant changes in the Company’s accounting policies during the nine months ended September 30, 2016 . The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and reported amounts of revenue and expenses. Actual results could differ from these estimates. Income Taxes The Company's provision for income taxes is determined using the U.S. federal statutory rate. The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities along with net operating loss and tax credit carryovers. The Company's deferred tax asset was approximately $23.3 million and $27.4 million at September 30, 2016 and December 31, 2015 , respectively. The Company recorded a valuation allowance against the deferred tax asset of $23.7 million and $27.8 million at September 30, 2016 and December 31, 2015 , respectively, creating a deferred tax liability of $404,000 and $ 365,000 , respectively. The Company had no increase or decrease in unrecognized income tax benefits or any accrued interest or penalties relating to tax uncertainties at September 30, 2016 and December 31, 2015 . Unrecognized tax benefits are not expected to increase or decrease within the next twelve months. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Standards In April 2015, the FASB issued ASU No. 2015-03, “ Simplifying the Presentation of Debt Issuance Costs. " The accounting guidance requires that debt issuance costs related to a recognized debt liability be reported on the Statements of Financial Condition as a direct deduction from the carrying amount of that debt liability. The pronouncement is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early application permitted for financial statements that have not been previously issued. The Company adopted the provisions of the guidance in the first quarter of 2016. The adoption did not have a material impact on the Company’s financial statements. New Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “ Revenue from Contracts with Customers .” The ASU will supersede most of the existing revenue recognition requirements in U.S. GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity’s nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, which deferred the effective date by one year to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before the original effective date of reporting periods beginning after December 15, 2016. In March 2016, the FASB issued ASU No. 2016-08, which improves the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, which clarifies identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-11, which rescinds certain SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, effective upon adoption of ASU 2014-09, and ASU No. 2016-12, which reduces the potential for diversity in practice at initial application and reduces the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The Company is currently evaluating the impact these pronouncements will have on the consolidated financial statements and related disclosures. New Accounting Standards Not Yet Adopted - continued In August 2014, the FASB issued ASU No. 2014-15, “ Presentation of Financial Statements-Going Concern: Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The amendments are intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations in the financial statement footnotes. The pronouncement is effective for annual reporting periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company is currently evaluating the impact the pronouncement will have on the financial statements and related disclosures. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory," which applies to inventory that is measured using first-in, first-out ("FIFO") or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, first-out ("LIFO"). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact the pronouncement will have on the Company’s financial statements and related disclosures. In November 2015, the FASB issued ASU 2015-17, " Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ," which simplifies the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This ASU is effective for financial statements issued for annual periods beginning after December 16, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact the pronouncement will have on the Company’s financial statements and related disclosures. In January 2016, the FASB issued ASU 2016-01, " Financial Instruments--Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, " which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is currently evaluating the impact the pronouncement will have on the Company’s financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases: Amendments to the FASB Accounting Standards Codification," which requires companies to recognize all leases as assets and liabilities on the consolidated balance sheet. This ASU retains a distinction between finance leases and operating leases, and the classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the current accounting literature. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model, the effect of leases in a consolidated statement of comprehensive income and a consolidated statement of cash flows is largely unchanged from previous GAAP. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Earlier application is permitted. The Company is currently evaluating the impact the pronouncement will have on the Company’s financial statements and related disclosures. New Accounting Standards Not Yet Adopted - continued In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance requires that a lessee recognize assets and liabilities for leases with lease terms of more than twelve months and recognition, presentation and measurement in the financial statements will depend on its classification as a finance or operating lease. In addition, the new guidance will require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. Lessor accounting remains largely unchanged from current U.S. GAAP but does contain some targeted improvements to align with the new revenue recognition guidance issued in 2014. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, using a modified retrospective approach, and early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for share-based payment awards to employees, including the accounting for income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted in any annual or interim period for which financial statements have not yet been issued, and all amendments in the ASU that apply must be adopted in the same period. The Company is currently evaluating the impact of adopting this guidance. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which contains amendments designed to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date and replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this guidance. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which contains amendments designed to make current GAAP clear or provide specific guidance on eight cash flow classification issues relating to how certain cash receipts and cash payments are presented and classified in the statement of cash flows, thereby reducing the current and potential future diversity in practice. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact of adopting this guidance. |
Dependence on Few Suppliers
Dependence on Few Suppliers | 9 Months Ended |
Sep. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Dependence on Few Suppliers | Dependence on Few Suppliers The Company is dependent on a few suppliers for certain raw materials and finished goods. For the three and nine month period ended September 30, 2016 and 2015 , raw materials and finished goods purchased from the three largest suppliers accounted for approximately 43% and 41% , and 42% and 42% , of purchases, respectively. |
Trade Receivables
Trade Receivables | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Trade Receivables | Trade Receivables Trade receivables are comprised of the following (in thousands): September 30, 2016 December 31, 2015 Trade Receivables $ 11,946 $ 10,551 Less: Allowance for Doubtful Accounts (534 ) (545 ) Trade Receivables, Net $ 11,412 $ 10,006 |
Costs and Estimated Earnings on
Costs and Estimated Earnings on Uncompleted Contracts | 9 Months Ended |
Sep. 30, 2016 | |
Contractors [Abstract] | |
Costs and Estimated Earnings on Uncompleted Contracts | Costs and Estimated Earnings on Uncompleted Contracts The following is a summary of contracts in progress (in thousands): September 30, 2016 December 31, 2015 Costs Incurred on Uncompleted Contracts $ 610 $ 1,089 Estimated Earnings on Uncompleted Contracts 184 306 Earned Revenues 794 1,395 Billings to Date (850 ) (1,404 ) Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts $ (56 ) $ (9 ) This amount is included in the accompanying condensed balance sheets under the following captions at: September 30, 2016 December 31, 2015 Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts $ 9 $ 42 Billing in Excess of Costs and Estimated Earnings on Uncompleted Contracts (65 ) (51 ) Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts $ (56 ) $ (9 ) |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following is a summary of inventories (in thousands): September 30, 2016 December 31, 2015 Raw Materials $ 1,995 $ 2,599 Finished Goods 5,156 5,575 Total Inventories $ 7,151 $ 8,174 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets The following is a summary of prepaid expenses and other current assets (in thousands): September 30, 2016 December 31, 2015 Prepaid Insurances $ 403 $ 637 Prepaid Marketing 75 116 Prepaid Consulting 61 58 Prepaid Other 585 363 Total Prepaid Expenses and Other Current Assets $ 1,124 $ 1,174 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The following is a summary of property, plant and equipment (in thousands): September 30, 2016 December 31, 2015 Vehicles $ 244 $ 462 Leasehold Improvements 270 289 Office Furniture and Equipment 155 307 Computers and Software 902 946 Machinery and Equipment 2,532 2,517 Total Property, Plant and Equipment $ 4,103 $ 4,521 Less: Accumulated Depreciation (3,087 ) (3,434 ) Total Property, Plant and Equipment, Net $ 1,016 $ 1,087 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The following is a summary of Goodwill (in thousands): September 30, 2016 December 31, 2015 Foam $ 2,932 $ 2,932 Coatings 1,303 1,303 Total Goodwill $ 4,235 $ 4,235 Other Intangible Assets The following is a summary of Other Intangible Assets (in thousands): September 30, 2016 December 31, 2015 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Product Formulation $ 138 $ (102 ) $ 36 $ 138 $ (95 ) $ 43 Trade Names 750 (407 ) 343 750 (369 ) 381 Approvals and Certifications 3,392 (2,595 ) 797 3,202 (2,429 ) 773 $ 4,280 $ (3,104 ) $ 1,176 $ 4,090 $ (2,893 ) $ 1,197 |
Deposits and Other Non-Current
Deposits and Other Non-Current Assets | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deposits and Other Non-Current Assets | Deposits and Other Non-Current Assets The following is a summary of deposits and other non-current assets (in thousands): September 30, 2016 December 31, 2015 Prepaid Expenses $ 11 $ 25 Other Receivables 13 5 Deposits 64 64 Total Deposits and Other Non-Current Assets $ 88 $ 94 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities The following is a summary of accrued expenses and other current liabilities (in thousands): September 30, 2016 December 31, 2015 Accrued Payroll $ 123 $ (6 ) Accrued Commissions 132 129 Accrued Inventory Purchases 352 438 Accrued Taxes and Other 1,450 1,725 Accrued Insurance 205 459 Deferred Finance Charge Income 7 28 Total Accrued Expenses and Other Current Liabilities $ 2,269 $ 2,773 |
Financing Instruments
Financing Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Financing Instruments | Long-Term Debt The following is a summary of long-term debt (in thousands): Debt Facility Effective Cash Interest Rate September 30, 2016 December 31, 2015 Line of Credit 2.78% $ 9,703 $ — Revolver Loan 4.59% — 6,736 Note Payable 11.66% — 7,688 Total Long-Term Debt 9,703 14,424 Less Debt Issuance Costs and Unamortized Discount (41 ) (287 ) Long-Term Debt, Net $ 9,662 $ 14,137 (a) Loan Agreement . The Company entered into a loan agreement with Bank of America, N.A. (the "Bank") on September 7, 2016 (the “Loan Agreement”), which amended and restated in its entirety that certain Loan and Security Agreement dated August 31, 2010 with the Bank (as amended, the "Prior Credit Agreement"). The Loan Agreement provides an initial line of credit of $15 million for a 3 years term maturing on September 7, 2019 (the “Line of Credit”). The available amount of the Line of Credit will be reduced each quarter by $250,000 starting January 1, 2017, until it reaches $12 million on July 1, 2019, thereby reducing the Company’s unused line fee. The interest rate used by the Company is the daily floating LIBOR rate plus 2.25% . The Loan Agreement requires the Company to comply with two financial covenants, including: (i) an asset coverage ratio of at least (a) 1.10 to 1.00 from September 30, 2016, until September 30, 2017, (b) 1.15 to 1.00 from October 1, 2017, through March 31, 2018, and (c) 1.20 to 1.00 from April 1, 2018, and thereafter, tested quarterly, which in each case will be determined based upon the ratio of (x) 85% of book value of all accounts receivable, plus 55% of book value of all inventory, plus 50% net book value of plant, property and equipment of the Company (the "Total Margined Value") to (y) all outstanding liabilities for borrowed money and other interest-bearing liabilities arising under the Line of Credit (the "Total Line of Credit"); and (ii) a fixed charge coverage ratio of at least 1.20 to 1.00, tested quarterly based upon the ratio of (a) Adjusted EBITDA (as defined in the Loan Agreement), to (b) the sum of capital expenditures, cash taxes paid, interest expenses, principal payments made on borrowed money other than the Line of Credit and the Enhanced Notes (as defined below), and distributions made, in each case for the immediately preceding four fiscal quarter period and determined on a consolidated basis. Upon closing of the Loan Agreement, an aggregate of $8.5 million was drawn from the Line of Credit and used to pay off the Enhanced Notes (defined below) and the Prior Credit Agreement. The Company granted the Bank a continuing security interest in and lien upon substantially all assets of the corporation. If, at any time, the Company’s Total Margined Value is less than the amount outstanding under the Total Line of Credit, and that amount remains unpaid or future Total Margined Value calculations do not increase to an amount equal to the balance outstanding under the Total Line of Credit, the Bank, in its sole discretion, may accelerate any and all amounts outstanding under the Line of Credit. At September 30, 2016, the balance outstanding on the Line of Credit, net of deferred financing costs, was $9.7 million , and the weighted-average interest rate was 2.78% . Cash available under our Line of Credit based on the Asset Coverage Ratio at September 30, 2016 was $3.2 million . At September 30, 2016, the Company was in compliance with all of its Loan Agreement debt covenants. (b) Prior Credit Agreement. The Company entered into the Prior Credit Agreement with the Bank on September 1, 2010, which, as amended, provided for a $12 million Revolver Loan. This Prior Credit Agreement was replaced in its entirety and the Revolver Loan provided in connection therewith, which had an outstanding balance of $2.7 million , was paid in full from a draw against our Line of Credit upon closing of the Loan Agreement with the Bank on September 7, 2016. At December 31, 2015, the balance outstanding on the Revolver Loan, net of deferred financing costs, was $6.7 million , and the weighted-average interest rate was 4.6% . Cash available under the Revolver Loan based on the borrowing base calculation (defined as an amount determined by a detailed calculation that includes an amount equal to 85% of eligible accounts receivable, 65% of eligible finished goods and 30% of eligible raw materials, up to $6 million ) at December 31, 2015 was $2.2 million . (c) Note Purchase Agreement . (i) Enhanced Notes . The Company entered into a Note Purchase Agreement with Enhanced Jobs for Texas Fund, LLC (“Enhanced Jobs”) and Enhanced Credit Supported Loan Fund, LP (“Enhanced Credit”), on December 10, 2013, originally issuing an aggregate of $7.2 million in subordinated secured promissory notes maturing December 10, 2017 (“Enhanced Notes”), of which $5.7 million was to Enhanced Credit and $1.5 million was to Enhanced Jobs. This Note Purchase Agreement was terminated and the Enhanced Notes issued in connection therewith, which had an aggregate outstanding balance, net of repayments plus accrued interest including PIK, of $5.8 million , were paid in full from a draw against our Line of Credit upon closing of the Loan Agreement with the Bank on September 7, 2016. Upon satisfaction and termination of the Note Purchase Agreement by the Company, the chairman of the board's commitment to ensure funding upon maturity of the Enhanced Notes and his personal guaranty on the Note Purchase Agreement were terminated. At December 31, 2015, the balance outstanding on the Enhanced Notes, net of deferred financing costs, was $7.5 million , and the effective interest rate was 25.6% . (ii) Guaranty Agreement . In connection with the Enhanced Notes described in (c)(i) above, the chairman of the board and majority stockholder of the Company (the “Guarantor”), entered into a Guaranty Agreement to secure the Company’s performance under the Enhanced Notes. The Company, in exchange for Guarantor’s personal guarantee of the obligations under the Enhanced Notes, granted Guarantor 3.7 million shares of common stock, par value $.01 per share, which shares vest monthly on a pro rata basis over the original 3 year term of the Enhanced Notes (“Guaranty Shares”). The Guaranty Shares were valued at $0.60 per share, the closing price of the Company’s common stock as quoted on OTC Markets on the day preceding the closing date of December 10, 2013, for an aggregate amount of $2.2 million . The Guaranty Shares were recorded as interest expense – related party, thereby increasing the effective interest rate of the Enhanced Notes. Upon repayment of the Enhanced Notes by the Company, the chairman of the board's personal guaranty on the Note Purchase Agreement terminated and all remaining unvested Guaranty Shares vested on an accelerated basis. At December 31, 2015, there were 2.5 million Guaranty Shares vested, valued and recorded at $1.5 million . (iii) Chairman of the Board Commitment . On November 12, 2015, pursuant to a commitment letter, effective as of October 31, 2015 (the “Commitment”), the Company's chairman of the board and principal stockholder, Richard J. Kurtz, committed to ensure the Company had funding to pay off the aggregate amount of $7.2 million by August 31, 2016, plus any accrued and unpaid interest (the “Obligations”), outstanding with respect to the Enhanced Notes, of which $2 million is required from him by April 30, 2016 if the Company does not repay that amount (the Commitment”). As consideration for the Commitment, the Company granted Mr. Kurtz a fully vested and exercisable stock option to purchase 500,000 shares of the Company’s common stock, with an exercise price per share equal to the fair market value of a share of the Company’s common stock on November 12, 2015, determined based on the per share closing price on such date, or $0.294 per share, for a term of eight (8) years. The transaction was valued at approximately $ 47,000 , which was estimated using the Black-Scholes option pricing model and fully expensed on the date of grant. In connection with the Company's payment of $ 500,000 in principal to Mr. Kurtz during the fourth quarter of 2015 for the Notes Payable - Related Party, Mr. Kurtz made a principal payment of $ 150,000 towards paying down the Enhanced Notes. On April 21, 2016, the Company made a payment of $1.9 million on the outstanding principal of the Enhanced Notes. Upon repayment of the Enhanced Notes by the Company, the chairman of the board's Commitment was terminated. (d) Notes Payable – Related Party . The Company entered into a $250,000 promissory note with the chairman of the board, bearing interest at 8% per annum, and maturing June 10, 2017, which was subordinated to the Prior Credit Agreement and the Enhanced Notes described in (b) and (c)(i) above, on January 21, 2015. The Company paid the $250,000 principal amount back to the chairman of the board during the fourth quarter of 2015, and at September 30, 2016, there remains $4,000 in accrued and unpaid interest outstanding. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions (a) On March 14, 2016, the Company granted an eight -year option to Richard J. Kurtz, chairman of the board and principal stockholder, for the right to acquire 800,000 shares of the Company's common stock, par value $.01 , at an exercise price per share equal to the fair market value of a share of the Company’s common stock on the date of grant, determined based on the per share closing price on such date, or $0.40 per share, which options vest monthly on a pro rata basis over 3 years , subject to continued satisfactory board services. The transaction was valued at $306,487 , which was estimated using the Black-Scholes option pricing model and will be expensed over the requisite vesting period. (b) On March 14, 2016, the Company granted an eight -year option to Douglas J. Kramer, chief executive officer and president, for the right to acquire 2 million shares of the Company's common stock, par value $.01 , at an exercise price per share equal to the fair market value of a share of the Company’s common stock on the date of grant, determined based on the per share closing price on such date, or $0.40 per share, which options vest monthly on a pro rata basis over 3 years , subject to continued satisfactory employment. The transaction was valued at $766,217 , which was estimated using the Black-Scholes option pricing model and will be expensed over the requisite vesting period. (c) On February 7, 2016, the Company vested the last tranche of 25,000 shares of common stock, par value $.01 , pursuant to an agreement with the chief operating officer, Harvey L. Schnitzer, for a stock bonus, which transaction was valued and recorded at $16,000 . Under the stock bonus agreement, the Company granted Mr. Schnitzer 100,000 shares of the Company’s common stock, par value $.01 , which vest in four equal 25,000 share increments, on February 7, 2014, December 31, 2014, December 31, 2015, and February 6, 2016, respectively, subject to continued employment with the Company. (d) During the three and nine months ended September 30, 2016 , the Company issued an aggregate of 41,801 and 86,404 shares of restricted common stock, par value $.01 , pursuant to the anti-dilution provisions in an agreement with the Vice Chairman, Jay C. Nadel, for advisory and consulting services, which transactions were valued and recorded in the aggregate at $18,014 and $38,064 , respectively. (e) During the three and nine months ended September 30, 2016 , the Company vested an aggregate of 546,949 and 1,157,653 shares of restricted common stock, par value $.01 , as Guaranty Shares, issued to the Chairman of the Board and majority stockholder in connection with his personal guaranty relating to the Enhanced Note, which transactions were valued and recorded in the aggregate at $328,169 and $694,591 , respectively, and classified as interest expense – related party. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share - Basic and Diluted | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share - Basic and Diluted | Net Income (Loss) Per Common Share – Basic and Diluted Basic income (loss) per share is based upon the net income (loss) applicable to common shares and upon the weighted average number of common shares outstanding during the period. Diluted income (loss) per share reflects the effect of the assumed exercise of stock options only in periods in which such effect would have been dilutive. The computation of the Company’s basic and diluted earnings per share (in thousands, except per share data): For The Three Months Ended For The Nine Months Ended 2016 2015 2016 2015 Income (loss) available to common shareholders (A) $ 1,468 $ 215 $ 3,964 $ (1,333 ) Weighted average common shares outstanding (B) 123,016 121,556 122,654 121,076 Dilutive effect of equity incentive plans 34 2 1 0 Weighted average common shares outstanding, assuming dilution (C) 123,050 121,558 122,655 121,076 Basic earnings (loss) per common share (A)/(B) $ 0.01 $ 0.00 $ 0.03 $ (0.01 ) Diluted earnings (loss) per common share (A)/(C) $ 0.01 $ 0.00 $ 0.03 $ (0.01 ) For the three and nine months ended September 30, 2016 , a total of 1,008,000 shares of common stock underlying vested and exercisable stock options were excluded from the calculation of diluted earnings per common share as the exercise prices of the stock options were greater than the market value of the common shares (out-of-the-money). For the three and nine months ended September 30, 2015 , a total of 4,459,000 shares of common stock underlying vested and exercisable stock options were excluded from the calculation of diluted earnings per common share as the exercise prices of the stock options were out-of-the-money. Out-of-the money options could be included in the calculation in the future if the market value of the Company’s common shares increases and is greater than their exercise price. |
Securities Transactions
Securities Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Securities Financing Transactions [Abstract] | |
Securities Transactions | Securities Transactions (a) During the three and nine months ended September 30, 2016 , the Company issued an aggregate of 41,801 and 86,404 shares of restricted common stock, par value $.01 , pursuant to the anti-dilution provisions in an agreement with the Vice Chairman, Jay C. Nadel, for advisory and consulting services, which transactions were valued and recorded in the aggregate at $18,014 and $38,063 , respectively. (b) During the three and nine months ended September 30, 2016 , the Company vested an aggregate of 546,949 and 1,157,653 shares of restricted common stock, par value $.01 , as Guaranty Shares, issued to the Chairman of the Board and majority stockholder in connection with his personal guaranty relating to the Enhanced Note, which transactions were valued and recorded in the aggregate at $328,169 and $694,591 , respectively, and classified as interest expense – related party. |
Business Segment and Geographic
Business Segment and Geographic Area Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment and Geographic Area Information | Business Segment and Geographic Area Information Business Segments Summarized financial information for the reportable segments is as follows (in thousands): Three Months Ended September 30, 2016 2015 Foam Coatings Totals Foam Coatings Totals Sales $ 17,719 $ 3,198 $ 20,917 $ 16,289 $ 3,893 $ 20,182 Depreciation 15 3 18 26 6 32 Amortization of Other Intangible Assets 51 9 60 44 10 54 Interest Expense 147 27 174 232 56 288 Segment Profit 2,713 541 3,254 1,176 631 1,807 Segment Assets (1) 21,315 4,564 25,879 19,153 4,560 23,713 Expenditures for Segment Assets $ (38 ) $ (7 ) $ (45 ) $ 28 $ 7 $ 35 Nine Months Ended September 30, 2016 2015 Foam Coatings Totals Foam Coatings Totals Sales $ 52,088 $ 9,559 $ 61,647 $ 47,449 $ 9,770 $ 57,219 Depreciation 59 11 70 81 17 98 Amortization of Other Intangible Assets 160 29 189 143 29 172 Interest Expense 603 112 715 709 146 855 Segment Profit 7,517 1,580 9,097 2,520 1,363 3,883 Segment Assets (1) 21,315 4,564 25,879 19,153 4,560 23,713 Expenditures for Segment Assets $ 112 $ 21 $ 133 $ 47 $ 9 $ 56 The following are reconciliations of reportable segment profit or loss, and assets, to the Company’s consolidated totals (in thousands): For The Three Months Ended For The Nine Months Ended Profit or Loss 2016 2015 2016 2015 Total Profit or Loss for Reportable Segments $ 3,254 $ 1,807 $ 9,097 $ 3,883 Unallocated Amounts: Corporate Expenses (1,747 ) (1,501 ) (4,982 ) (4,943 ) Income (Loss) Before Income Taxes $ 1,507 $ 306 $ 4,115 $ (1,060 ) Assets At September 30, 2016 At December 31, 2015 Total Assets for Reportable Segments (1) $ 25,879 $ 23,713 Other Unallocated Amounts (2) 1,549 2,296 Consolidated Total $ 27,428 $ 26,009 (1) Segment assets are the total assets used in the operation of each segment. (2) Includes corporate assets which are principally cash and cash equivalents and deposits. Geographic Area Information The Company does not operate any manufacturing sites nor maintain a permanent establishment in any particular country outside of the United States at this time. The Company’s products are sold to independent distributors globally for select target markets. Sales are attributed to geographic areas based on customer location. Long-lived assets are attributable to geographic areas based on asset location. Sales and Long-Lived Assets by geographic area are as follows (in thousands): Three Months Ended September 30, 2016 2015 United States Europe Middle East Rest of World Total United States Europe Middle East Rest of World Total Sales $ 19,592 $ 921 $ — $ 404 $ 20,917 $ 19,134 $ 629 $ — $ 419 $ 20,182 Long-Lived Assets 6,464 — — — 6,464 6,838 — — — 6,838 Nine Months Ended September 30, 2016 2015 United States Europe Middle East Rest of World Total United States Europe Middle East Rest of World Total Sales $ 58,166 $ 1,870 $ 3 $ 1,608 $ 61,647 $ 53,717 $ 1,709 $ — $ 1,793 $ 57,219 Long-Lived Assets 6,464 — — — 6,464 6,838 — — — 6,838 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events (a) The Company has evaluated subsequent events through the date of filing this report. |
Basis of Presentation, Critic23
Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The condensed financial statements included herein are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying statements reflect adjustments necessary to present fairly the financial position, results of operations and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the Notes to the condensed financial statements. These unaudited condensed financial statements should be read in conjunction with the risk factors and the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 , which was filed with the SEC on March 28, 2016, in order to fully understand the basis of presentation. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. The Company’s critical accounting policies were described in Note 1 to the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . There have been no significant changes in the Company’s accounting policies during the nine months ended September 30, 2016 . The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and reported amounts of revenue and expenses. Actual results could differ from these estimates. |
Income Taxes | Income Taxes The Company's provision for income taxes is determined using the U.S. federal statutory rate. The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities along with net operating loss and tax credit carryovers. The Company's deferred tax asset was approximately $23.3 million and $27.4 million at September 30, 2016 and December 31, 2015 , respectively. The Company recorded a valuation allowance against the deferred tax asset of $23.7 million and $27.8 million at September 30, 2016 and December 31, 2015 , respectively, creating a deferred tax liability of $404,000 and $ 365,000 , respectively. The Company had no increase or decrease in unrecognized income tax benefits or any accrued interest or penalties relating to tax uncertainties at September 30, 2016 and December 31, 2015 . Unrecognized tax benefits are not expected to increase or decrease within the next twelve months. |
Recently Adopted Accounting Standards and New Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards In April 2015, the FASB issued ASU No. 2015-03, “ Simplifying the Presentation of Debt Issuance Costs. " The accounting guidance requires that debt issuance costs related to a recognized debt liability be reported on the Statements of Financial Condition as a direct deduction from the carrying amount of that debt liability. The pronouncement is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early application permitted for financial statements that have not been previously issued. The Company adopted the provisions of the guidance in the first quarter of 2016. The adoption did not have a material impact on the Company’s financial statements. New Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “ Revenue from Contracts with Customers .” The ASU will supersede most of the existing revenue recognition requirements in U.S. GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity’s nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, which deferred the effective date by one year to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before the original effective date of reporting periods beginning after December 15, 2016. In March 2016, the FASB issued ASU No. 2016-08, which improves the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, which clarifies identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-11, which rescinds certain SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, effective upon adoption of ASU 2014-09, and ASU No. 2016-12, which reduces the potential for diversity in practice at initial application and reduces the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The Company is currently evaluating the impact these pronouncements will have on the consolidated financial statements and related disclosures. New Accounting Standards Not Yet Adopted - continued In August 2014, the FASB issued ASU No. 2014-15, “ Presentation of Financial Statements-Going Concern: Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The amendments are intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations in the financial statement footnotes. The pronouncement is effective for annual reporting periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company is currently evaluating the impact the pronouncement will have on the financial statements and related disclosures. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory," which applies to inventory that is measured using first-in, first-out ("FIFO") or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, first-out ("LIFO"). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact the pronouncement will have on the Company’s financial statements and related disclosures. In November 2015, the FASB issued ASU 2015-17, " Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ," which simplifies the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This ASU is effective for financial statements issued for annual periods beginning after December 16, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact the pronouncement will have on the Company’s financial statements and related disclosures. In January 2016, the FASB issued ASU 2016-01, " Financial Instruments--Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, " which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is currently evaluating the impact the pronouncement will have on the Company’s financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases: Amendments to the FASB Accounting Standards Codification," which requires companies to recognize all leases as assets and liabilities on the consolidated balance sheet. This ASU retains a distinction between finance leases and operating leases, and the classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the current accounting literature. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model, the effect of leases in a consolidated statement of comprehensive income and a consolidated statement of cash flows is largely unchanged from previous GAAP. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Earlier application is permitted. The Company is currently evaluating the impact the pronouncement will have on the Company’s financial statements and related disclosures. New Accounting Standards Not Yet Adopted - continued In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance requires that a lessee recognize assets and liabilities for leases with lease terms of more than twelve months and recognition, presentation and measurement in the financial statements will depend on its classification as a finance or operating lease. In addition, the new guidance will require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. Lessor accounting remains largely unchanged from current U.S. GAAP but does contain some targeted improvements to align with the new revenue recognition guidance issued in 2014. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, using a modified retrospective approach, and early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for share-based payment awards to employees, including the accounting for income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted in any annual or interim period for which financial statements have not yet been issued, and all amendments in the ASU that apply must be adopted in the same period. The Company is currently evaluating the impact of adopting this guidance. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which contains amendments designed to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date and replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this guidance. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which contains amendments designed to make current GAAP clear or provide specific guidance on eight cash flow classification issues relating to how certain cash receipts and cash payments are presented and classified in the statement of cash flows, thereby reducing the current and potential future diversity in practice. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact of adopting this guidance. |
Trade Receivables (Tables)
Trade Receivables (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Trade Receivables | Trade receivables are comprised of the following (in thousands): September 30, 2016 December 31, 2015 Trade Receivables $ 11,946 $ 10,551 Less: Allowance for Doubtful Accounts (534 ) (545 ) Trade Receivables, Net $ 11,412 $ 10,006 |
Costs and Estimated Earnings 25
Costs and Estimated Earnings on Uncompleted Contract. (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Contractors [Abstract] | |
Summary of Costs and Estimated Earnings on Uncompleted Contracts | The following is a summary of contracts in progress (in thousands): September 30, 2016 December 31, 2015 Costs Incurred on Uncompleted Contracts $ 610 $ 1,089 Estimated Earnings on Uncompleted Contracts 184 306 Earned Revenues 794 1,395 Billings to Date (850 ) (1,404 ) Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts $ (56 ) $ (9 ) This amount is included in the accompanying condensed balance sheets under the following captions at: September 30, 2016 December 31, 2015 Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts $ 9 $ 42 Billing in Excess of Costs and Estimated Earnings on Uncompleted Contracts (65 ) (51 ) Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts $ (56 ) $ (9 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The following is a summary of inventories (in thousands): September 30, 2016 December 31, 2015 Raw Materials $ 1,995 $ 2,599 Finished Goods 5,156 5,575 Total Inventories $ 7,151 $ 8,174 |
Prepaid Expenses and Other Cu27
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | The following is a summary of prepaid expenses and other current assets (in thousands): September 30, 2016 December 31, 2015 Prepaid Insurances $ 403 $ 637 Prepaid Marketing 75 116 Prepaid Consulting 61 58 Prepaid Other 585 363 Total Prepaid Expenses and Other Current Assets $ 1,124 $ 1,174 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following is a summary of property, plant and equipment (in thousands): September 30, 2016 December 31, 2015 Vehicles $ 244 $ 462 Leasehold Improvements 270 289 Office Furniture and Equipment 155 307 Computers and Software 902 946 Machinery and Equipment 2,532 2,517 Total Property, Plant and Equipment $ 4,103 $ 4,521 Less: Accumulated Depreciation (3,087 ) (3,434 ) Total Property, Plant and Equipment, Net $ 1,016 $ 1,087 |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The following is a summary of Goodwill (in thousands): September 30, 2016 December 31, 2015 Foam $ 2,932 $ 2,932 Coatings 1,303 1,303 Total Goodwill $ 4,235 $ 4,235 |
Other Intangible Assets | Other Intangible Assets The following is a summary of Other Intangible Assets (in thousands): September 30, 2016 December 31, 2015 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Product Formulation $ 138 $ (102 ) $ 36 $ 138 $ (95 ) $ 43 Trade Names 750 (407 ) 343 750 (369 ) 381 Approvals and Certifications 3,392 (2,595 ) 797 3,202 (2,429 ) 773 $ 4,280 $ (3,104 ) $ 1,176 $ 4,090 $ (2,893 ) $ 1,197 |
Deposits and Other Non-Curren30
Deposits and Other Non-Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Deposits and Other Non-Current Assets | The following is a summary of deposits and other non-current assets (in thousands): September 30, 2016 December 31, 2015 Prepaid Expenses $ 11 $ 25 Other Receivables 13 5 Deposits 64 64 Total Deposits and Other Non-Current Assets $ 88 $ 94 |
Accrued Expenses and Other Cu31
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | The following is a summary of accrued expenses and other current liabilities (in thousands): September 30, 2016 December 31, 2015 Accrued Payroll $ 123 $ (6 ) Accrued Commissions 132 129 Accrued Inventory Purchases 352 438 Accrued Taxes and Other 1,450 1,725 Accrued Insurance 205 459 Deferred Finance Charge Income 7 28 Total Accrued Expenses and Other Current Liabilities $ 2,269 $ 2,773 |
Financing Instruments (Tables)
Financing Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt | The following is a summary of long-term debt (in thousands): Debt Facility Effective Cash Interest Rate September 30, 2016 December 31, 2015 Line of Credit 2.78% $ 9,703 $ — Revolver Loan 4.59% — 6,736 Note Payable 11.66% — 7,688 Total Long-Term Debt 9,703 14,424 Less Debt Issuance Costs and Unamortized Discount (41 ) (287 ) Long-Term Debt, Net $ 9,662 $ 14,137 |
Net Income (Loss) per Common 33
Net Income (Loss) per Common Share - Basic and Diluted (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computation of the Company’s basic and diluted earnings per share (in thousands, except per share data): For The Three Months Ended For The Nine Months Ended 2016 2015 2016 2015 Income (loss) available to common shareholders (A) $ 1,468 $ 215 $ 3,964 $ (1,333 ) Weighted average common shares outstanding (B) 123,016 121,556 122,654 121,076 Dilutive effect of equity incentive plans 34 2 1 0 Weighted average common shares outstanding, assuming dilution (C) 123,050 121,558 122,655 121,076 Basic earnings (loss) per common share (A)/(B) $ 0.01 $ 0.00 $ 0.03 $ (0.01 ) Diluted earnings (loss) per common share (A)/(C) $ 0.01 $ 0.00 $ 0.03 $ (0.01 ) |
Business Segment and Geograph34
Business Segment and Geographic Area Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended September 30, 2016 2015 Foam Coatings Totals Foam Coatings Totals Sales $ 17,719 $ 3,198 $ 20,917 $ 16,289 $ 3,893 $ 20,182 Depreciation 15 3 18 26 6 32 Amortization of Other Intangible Assets 51 9 60 44 10 54 Interest Expense 147 27 174 232 56 288 Segment Profit 2,713 541 3,254 1,176 631 1,807 Segment Assets (1) 21,315 4,564 25,879 19,153 4,560 23,713 Expenditures for Segment Assets $ (38 ) $ (7 ) $ (45 ) $ 28 $ 7 $ 35 Nine Months Ended September 30, 2016 2015 Foam Coatings Totals Foam Coatings Totals Sales $ 52,088 $ 9,559 $ 61,647 $ 47,449 $ 9,770 $ 57,219 Depreciation 59 11 70 81 17 98 Amortization of Other Intangible Assets 160 29 189 143 29 172 Interest Expense 603 112 715 709 146 855 Segment Profit 7,517 1,580 9,097 2,520 1,363 3,883 Segment Assets (1) 21,315 4,564 25,879 19,153 4,560 23,713 Expenditures for Segment Assets $ 112 $ 21 $ 133 $ 47 $ 9 $ 56 |
Reconciliation of Reportable Segment Profit or Loss | The following are reconciliations of reportable segment profit or loss, and assets, to the Company’s consolidated totals (in thousands): For The Three Months Ended For The Nine Months Ended Profit or Loss 2016 2015 2016 2015 Total Profit or Loss for Reportable Segments $ 3,254 $ 1,807 $ 9,097 $ 3,883 Unallocated Amounts: Corporate Expenses (1,747 ) (1,501 ) (4,982 ) (4,943 ) Income (Loss) Before Income Taxes $ 1,507 $ 306 $ 4,115 $ (1,060 ) |
Reconciliation of Assets from Segment to Consolidated | Assets At September 30, 2016 At December 31, 2015 Total Assets for Reportable Segments (1) $ 25,879 $ 23,713 Other Unallocated Amounts (2) 1,549 2,296 Consolidated Total $ 27,428 $ 26,009 |
Summary of Sales and Long-Lived Assets by Geographic Area | Three Months Ended September 30, 2016 2015 United States Europe Middle East Rest of World Total United States Europe Middle East Rest of World Total Sales $ 19,592 $ 921 $ — $ 404 $ 20,917 $ 19,134 $ 629 $ — $ 419 $ 20,182 Long-Lived Assets 6,464 — — — 6,464 6,838 — — — 6,838 Nine Months Ended September 30, 2016 2015 United States Europe Middle East Rest of World Total United States Europe Middle East Rest of World Total Sales $ 58,166 $ 1,870 $ 3 $ 1,608 $ 61,647 $ 53,717 $ 1,709 $ — $ 1,793 $ 57,219 Long-Lived Assets 6,464 — — — 6,464 6,838 — — — 6,838 Three Months Ended September 30, 2016 2015 United States Europe Middle East Rest of World Total United States Europe Middle East Rest of World Total Sales $ 19,592 $ 921 $ — $ 404 $ 20,917 $ 19,134 $ 629 $ — $ 419 $ 20,182 Long-Lived Assets 6,464 — — — 6,464 6,838 — — — 6,838 Nine Months Ended September 30, 2016 2015 United States Europe Middle East Rest of World Total United States Europe Middle East Rest of World Total Sales $ 58,166 $ 1,870 $ 3 $ 1,608 $ 61,647 $ 53,717 $ 1,709 $ — $ 1,793 $ 57,219 Long-Lived Assets 6,464 — — — 6,464 6,838 — — — 6,838 |
Basis of Presentation, Critic35
Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Income Taxes | ||
Deferred tax asset | $ 23,300 | $ 27,400 |
Valuation allowance | 23,700 | 27,800 |
Deferred tax liability | $ 404 | $ 365 |
Dependence on Few Suppliers (De
Dependence on Few Suppliers (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Concentration Risk [Line Items] | ||||
Concentration Risk (percent) | 43.00% | 42.00% | 41.00% | 42.00% |
Trade Receivables (Details)
Trade Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Trade Receivables | $ 11,946 | $ 10,551 |
Less: Allowance for Doubtful Accounts | (534) | (545) |
Trade Receivables, Net | $ 11,412 | $ 10,006 |
Costs and Estimated Earnings 38
Costs and Estimated Earnings on Uncompleted Contracts - Costs, Estimated Earnings and Billings on Uncompleted Contracts (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Costs in Excess of Billings on Uncompleted Contracts or Programs [Abstract] | ||
Costs Incurred on Uncompleted Contracts | $ 610 | $ 1,089 |
Estimated Earnings on Uncompleted Contracts | 184 | 306 |
Uncompleted Contracts | 794 | 1,395 |
Billings to Date | (850) | (1,404) |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | $ (56) | $ (9) |
Costs and Estimated Earnings 39
Costs and Estimated Earnings on Uncompleted Contracts - Costs and Estimated Earnings on Uncompleted Contracts in the Accompanying Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Costs in Excess of Billings on Uncompleted Contracts or Programs [Abstract] | ||
Costs in Excess of Billings | $ 9 | $ 42 |
Billing in Excess of Costs and Estimated Earnings on Uncompleted Contracts | (65) | (51) |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | $ (56) | $ (9) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 1,995 | $ 2,599 |
Finished Goods | 5,156 | 5,575 |
Total Inventories | $ 7,151 | $ 8,174 |
Prepaid Expenses and Other Cu41
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid Insurances | $ 403 | $ 637 |
Prepaid Marketing | 75 | 116 |
Prepaid Consulting | 61 | 58 |
Prepaid Other | 585 | 363 |
Total Prepaid Expenses and Other Current Assets | $ 1,124 | $ 1,174 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 4,103 | $ 4,521 |
Less: Accumulated Depreciation | (3,087) | (3,434) |
Total Property, Plant and Equipment, Net | 1,016 | 1,087 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 244 | 462 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 270 | 289 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 155 | 307 |
Computers and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 902 | 946 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,532 | $ 2,517 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Goodwill [Line Items] | ||
Total Goodwill | $ 4,235 | $ 4,235 |
Operating Segments [Member] | Foam [Member] | ||
Goodwill [Line Items] | ||
Total Goodwill | 2,932 | 2,932 |
Operating Segments [Member] | Coatings [Member] | ||
Goodwill [Line Items] | ||
Total Goodwill | $ 1,303 | $ 1,303 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 4,280 | $ 4,090 |
Accumulated Amortization | (3,104) | (2,893) |
Net Amount | 1,176 | 1,197 |
Product Formulations [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 138 | 138 |
Accumulated Amortization | (102) | (95) |
Net Amount | 36 | 43 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 750 | 750 |
Accumulated Amortization | (407) | (369) |
Net Amount | 343 | 381 |
Approvals and Certifications [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 3,392 | 3,202 |
Accumulated Amortization | (2,595) | (2,429) |
Net Amount | $ 797 | $ 773 |
Deposits and Other Non-Curren45
Deposits and Other Non-Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid Expenses | $ 11 | $ 25 |
Other Receivables | 13 | 5 |
Deposits | 64 | 64 |
Total Deposits and Other Non-Current Assets | $ 88 | $ 94 |
Accrued Expenses and Other Cu46
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued Payroll | $ 123 | $ (6) |
Accrued Commissions | 132 | 129 |
Accrued Inventory Purchases | 352 | 438 |
Accrued Taxes and Other | 1,450 | 1,725 |
Accrued Insurance | 205 | 459 |
Deferred Finance Charge Income | 7 | 28 |
Total Accrued Expenses and Other Current Liabilities | $ 2,269 | $ 2,773 |
Financing Instruments - Summary
Financing Instruments - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total Long-Term Debt | $ 9,703 | $ 14,424 |
Less Debt Issuance Costs and Unamortized Discount | (41) | (287) |
Long-Term Debt, Net | $ 9,662 | 14,137 |
Line of Credit [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Effective Cash Interest Rate (as a percent) | 2.78% | |
Total Long-Term Debt | $ 9,703 | 0 |
Line of Credit [Member] | Revolver Loan [Member] | ||
Debt Instrument [Line Items] | ||
Effective Cash Interest Rate (as a percent) | 4.60% | |
Total Long-Term Debt | $ 0 | 6,736 |
Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Effective Cash Interest Rate (as a percent) | 11.66% | |
Total Long-Term Debt | $ 0 | $ 7,688 |
Financing Instruments - Loan Ag
Financing Instruments - Loan Agreement (Details) | Sep. 07, 2016USD ($)covenant | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 07, 2019 | Jul. 01, 2019USD ($) | Jan. 01, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||
Amounts outstanding net of deferred financing costs | $ 9,662,000 | $ 14,137,000 | ||||||
Loan Agreement [Member] | Line of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 15,000,000 | |||||||
Number of debt covenants (in covenant) | covenant | 2 | |||||||
Debt instrument term (in years) | 3 years | |||||||
Financial covenant, book value of accounts receivable compared to all borrowings and interest bearing liabilities (percent) | 85.00% | |||||||
Financial covenant, book value of inventory compared to all borrowings and interest bearing liabilities (percent) | 55.00% | |||||||
Financial covenant, book value of plant, property and equipment compared to all borrowings and interest bearing liabilities (percent) | 50.00% | |||||||
Financial covenant, minimum fixed charge coverage ratio | 1.20 | |||||||
Amounts outstanding net of deferred financing costs | $ 8,500,000 | $ 9,700,000 | ||||||
Weighted average interest rate (percent) | 2.78% | |||||||
Remaining borrowing capacity | $ 3,200,000 | |||||||
Loan Agreement [Member] | Line of Credit [Member] | Daily Floating LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate (percent) | 2.25% | |||||||
Loan Agreement [Member] | Line of Credit [Member] | Forecast [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 12,000,000 | |||||||
Quarterly decrease in borrowing capacity | $ 250,000 | |||||||
Financial covenant, minimum asset coverage ratio | 1.15 | 1.10 | 1.20 |
Financing Instruments - Prior C
Financing Instruments - Prior Credit Agreement (Details) - USD ($) | Sep. 07, 2016 | Apr. 30, 2016 | Sep. 01, 2010 | Sep. 30, 2016 | Dec. 31, 2015 |
Line of Credit Facility [Line Items] | |||||
Repayments of outstanding balance | $ 2,000,000 | ||||
Total Long-Term Debt | $ 9,703,000 | $ 14,424,000 | |||
Line of Credit [Member] | Revolver Loan [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 12,000,000 | 2,200,000 | |||
Repayments of outstanding balance | $ 2,700,000 | ||||
Total Long-Term Debt | $ 6,700,000 | ||||
Weighted average interest rate | 4.60% | ||||
Eligible accounts receivable (percent) | 85.00% | ||||
Eligible inventory (percent) | 65.00% | ||||
Eligible raw materials (percent) | 30.00% | ||||
Inventory included in vase rate calculation (up to) | $ 6,000,000 |
Financing Instruments - Note Pu
Financing Instruments - Note Purchase Agreement - Enhanced Note (Details) - USD ($) | Sep. 07, 2016 | Apr. 30, 2016 | Apr. 21, 2016 | Dec. 31, 2015 | Dec. 10, 2013 |
Debt Instrument [Line Items] | |||||
Repayments of debt | $ 2,000,000 | ||||
Secured Debt [Member] | Enhanced Texas Fund | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 1,500,000 | ||||
Secured Debt [Member] | Enhanced Jobs for Texas | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 5,700,000 | ||||
Secured Debt [Member] | Note Purchase Agreement | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 7,200,000 | ||||
Repayments of debt | $ 5,800,000 | $ 1,900,000 | |||
Notes payable, noncurrent | $ 7,500,000 | ||||
Effective interest rate (percent) | 25.60% |
Financing Instruments - Note 51
Financing Instruments - Note Purchase Agreement - Guaranty Agreement (Details) - Note Purchase Agreement - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Dec. 10, 2013 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Restricted stock issued during the period (shares) | 3.7 | 2.5 |
Restricted common stock par value (in USD per share) | $ 0.01 | |
Temporary equity redemption price (usd per share) | $ 0.60 | |
Value of restricted stock issued during the period | $ 2.2 | $ 1.5 |
Financing Instruments - Chairma
Financing Instruments - Chairman of the Board Commitment (Details) - USD ($) | Sep. 07, 2016 | Apr. 30, 2016 | Apr. 21, 2016 | Mar. 14, 2016 | Nov. 12, 2015 | Dec. 31, 2015 | Dec. 10, 2013 |
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 2,000,000 | ||||||
Board of Directors Chairman [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Granted in period (in shares) | 500,000 | ||||||
Share price (in USD per share) | $ 0.40 | $ 0.294 | |||||
Term of stock option acquisition rights (years) | 3 years | 8 years | |||||
Grant date fair value of options awards | $ 47,000 | ||||||
Repayments of related party debt | $ 500,000 | ||||||
Repurchase of principal | $ 150,000 | ||||||
Secured Debt [Member] | Note Purchase Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 7,200,000 | ||||||
Repayments of debt | $ 5,800,000 | $ 1,900,000 |
Financing Instruments - Note Pa
Financing Instruments - Note Payable - Related Party (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2015 | Sep. 30, 2016 | Jun. 30, 2016 | |
Promissory Note - January 21, 2015 [Member] | |||
Related Party Transaction [Line Items] | |||
Notes payable | $ 250,000 | ||
Interest rate (percent) | 8.00% | ||
Promissory Note - January 1, 2015 Member | |||
Related Party Transaction [Line Items] | |||
Repayments of related party debt | $ 250,000 | ||
Accrued and unpaid interest | $ 4,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Mar. 14, 2016 | Feb. 07, 2016 | Dec. 31, 2015 | Nov. 12, 2015 | Dec. 31, 2014 | Feb. 07, 2014 | Sep. 30, 2016 | Sep. 30, 2016 |
Related Party Transaction [Line Items] | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Options vested in period (in shares) | 25,000 | 25,000 | ||||||
Kramer Options [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Expiration period (years) | 8 years | |||||||
Number of shares of common stock (in shares) | 2,000,000 | |||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||||||
Share price (in USD per share) | $ 0.40 | |||||||
Term of stock option acquisition rights (years) | 3 years | |||||||
Fair value of options vested in the period | $ 766,217 | |||||||
Chief Operating Officer [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||||||
Fair value of options vested in the period | $ 16,000 | |||||||
Options vested in period (in shares) | 25,000 | 25,000 | ||||||
Granted in period (in shares) | 100,000 | |||||||
Servicing Contracts [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||||||
Restricted stock award issued (in shares) | 41,801 | 86,404 | ||||||
Value of restricted stock award | $ 18,014 | $ 38,064 | ||||||
Majority Shareholder [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||||||
Restricted stock award issued (in shares) | 546,949 | 1,157,653 | ||||||
Value of restricted stock award | $ 328,169 | $ 694,591 | ||||||
Board of Directors Chairman [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Expiration period (years) | 8 years | |||||||
Number of shares of common stock (in shares) | 800,000 | |||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||||||
Share price (in USD per share) | $ 0.40 | $ 0.294 | ||||||
Term of stock option acquisition rights (years) | 3 years | 8 years | ||||||
Fair value of options vested in the period | $ 306,487 | |||||||
Granted in period (in shares) | 500,000 |
Net Income (Loss) per Common 55
Net Income (Loss) per Common Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) available to common shareholders | $ 1,468 | $ 215 | $ 3,964 | $ (1,333) |
Weighted average common shares outstanding (shares) | 123,016 | 121,556 | 122,654 | 121,076 |
Dilutive effect of equity incentive plans | $ 34 | $ 2 | $ 1 | $ 0 |
Weighted average common shares outstanding, assuming dilution (shares) | 123,050 | 121,558 | 122,655 | 121,076 |
Basic earnings per common share (usd per share) | $ 0.01 | $ 0 | $ 0.03 | $ (0.01) |
Diluted earnings per common share (usd per share) | $ 0.01 | $ 0 | $ 0.03 | $ (0.01) |
Net Income (Loss) per Common 56
Net Income (Loss) per Common Share - Basic and Diluted - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Out-of-the-money [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 1,008,333 | 4,459,167 | 1,008,000 | 4,459,000 |
Securities Transactions (Detail
Securities Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2016 | Feb. 07, 2016 | Dec. 31, 2015 | |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | |
Servicing Contracts [Member] | ||||
Shares issued for services (shares) | 41,801 | 86,404 | ||
Restricted common stock par value (in USD per share) | $ 0.01 | $ 0.01 | ||
Value of shares issued for service | $ 18,014 | $ 38,063 | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||
Affiliated Entity [Member] | ||||
Restricted common stock par value (in USD per share) | $ 0.01 | $ 0.01 | ||
Stock issued during the period (shares) | 546,949 | 1,157,653 | ||
Value of stock issued during the period | $ 328,169 | $ 694,591 | ||
Common stock issued (shares) | 25,000 | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||
Common stock issued, value | $ 16,000 |
Business Segment and Geograph58
Business Segment and Geographic Area Information - Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 20,917 | $ 20,182 | $ 61,647 | $ 57,219 |
Depreciation | 18 | 32 | 70 | 98 |
Amortization of Other Intangible Assets | 60 | 54 | 189 | 172 |
Interest Expense | 174 | 288 | 715 | 855 |
Segment Profit | 3,254 | 1,807 | 9,097 | 3,883 |
Segment Assets | 25,879 | 23,713 | 25,879 | 23,713 |
Expenditures for Segment Assets | (45) | 35 | 133 | 56 |
Foam [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 52,088 | 47,449 | ||
Depreciation | 59 | 81 | ||
Amortization of Other Intangible Assets | 160 | 143 | ||
Interest Expense | 603 | 709 | ||
Segment Profit | 7,517 | 2,520 | ||
Segment Assets | 21,315 | 19,153 | ||
Expenditures for Segment Assets | 112 | 47 | ||
Coatings [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 9,559 | 9,770 | ||
Depreciation | 11 | 17 | ||
Amortization of Other Intangible Assets | 29 | 29 | ||
Interest Expense | 112 | 146 | ||
Segment Profit | 1,580 | 1,363 | ||
Segment Assets | 4,564 | 4,560 | ||
Expenditures for Segment Assets | $ 21 | $ 9 | ||
Operating Segments [Member] | Foam [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 17,719 | 16,289 | ||
Depreciation | 15 | 26 | ||
Amortization of Other Intangible Assets | 51 | 44 | ||
Interest Expense | 147 | 232 | ||
Segment Profit | 2,713 | 1,176 | ||
Segment Assets | 21,315 | 19,153 | ||
Expenditures for Segment Assets | (38) | 28 | ||
Operating Segments [Member] | Coatings [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 3,198 | 3,893 | ||
Depreciation | 3 | 6 | ||
Amortization of Other Intangible Assets | 9 | 10 | ||
Interest Expense | 27 | 56 | ||
Segment Profit | 541 | 631 | ||
Segment Assets | 4,564 | 4,560 | ||
Expenditures for Segment Assets | $ (7) | $ 7 |
Business Segment and Geograph59
Business Segment and Geographic Area Information - Reconciliation of Reportable Segment Profit or Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting [Abstract] | ||||
Total Profit or Loss for Reportable Segments | $ 3,254 | $ 1,807 | $ 9,097 | $ 3,883 |
Corporate Expenses | (1,747) | (1,501) | (4,982) | (4,943) |
Income (Loss) Before Income Taxes | $ 1,507 | $ 306 | $ 4,115 | $ (1,060) |
Business Segment and Geograph60
Business Segment and Geographic Area Information - Reconciliation of Reportable Segment Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Segment Reporting [Abstract] | ||
Total Assets for Reportable Segments | $ 25,879 | $ 23,713 |
Other Unallocated Amounts | 1,549 | 2,296 |
Consolidated Total | $ 27,428 | $ 26,009 |
Business Segment and Geograph61
Business Segment and Geographic Area Information - Geographic Area Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Sales | $ 20,917 | $ 20,182 | $ 61,647 | $ 57,219 |
Long-Lived Assets | 6,464 | 6,838 | 6,464 | 6,838 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Sales | 19,592 | 19,134 | 58,166 | 53,717 |
Long-Lived Assets | 6,464 | 6,838 | 6,464 | 6,838 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Sales | 921 | 629 | 1,870 | 1,709 |
Long-Lived Assets | 0 | 0 | 0 | 0 |
Middle East [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Sales | 0 | 0 | 3 | 0 |
Long-Lived Assets | 0 | 0 | 0 | 0 |
Rest of the World [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Sales | 404 | 419 | 1,608 | 1,793 |
Long-Lived Assets | $ 0 | $ 0 | $ 0 | $ 0 |