Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 14, 2014 | Jun. 28, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'NANX | ' | ' |
Entity Registrant Name | 'NANOPHASE TECHNOLOGIES CORPORATION | ' | ' |
Entity Central Index Key | '0000883107 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 28,481,496 | ' |
Entity Public Float | ' | ' | $9,455,000 |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $3,276 | $4,124 |
Investments | 30 | 30 |
Trade accounts receivable, less allowance for doubtful accounts of $6 on December 31, 2013 and 2012 | 52 | 1,031 |
Other receivables | 1 | 27 |
Inventories, net | 976 | 1,139 |
Prepaid expenses and other current assets | 202 | 241 |
Total current assets | 4,537 | 6,592 |
Equipment and leasehold improvements, net | 2,464 | 3,028 |
Other assets, net | 27 | 30 |
Total assets | 7,028 | 9,650 |
Current liabilities: | ' | ' |
Current portion of capital lease obligations | 31 | 35 |
Accounts payable | 503 | 680 |
Accrued expenses | 323 | 485 |
Total current liabilities | 857 | 1,200 |
Long-term portion of capital lease obligations | 10 | 63 |
Long-term deferred rent | 633 | 636 |
Asset retirement obligations | 160 | 154 |
Total long-term liabilities | 803 | 853 |
Contingent liabilities | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $.01 par value, 24,088 shares authorized and no shares issued and outstanding | ' | ' |
Common stock, $.01 par value, 35,000,000 shares authorized; 28,481,496 and 28,458,162 shares issued and outstanding on December 31, 2013 and December 31, 2012 , respectively | 285 | 285 |
Additional paid-in capital | 95,761 | 95,512 |
Accumulated deficit | -90,678 | -88,200 |
Total stockholders' equity | 5,368 | 7,597 |
Total liabilities and stockholders' equity | $7,028 | $9,650 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Trade accounts receivable, less allowance for doubtful accounts | $6 | $6 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 24,088 | 24,088 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 28,481,496 | 28,458,162 |
Common stock, shares outstanding | 28,481,496 | 28,458,162 |
STATEMENTS_OF_OPERATIONS
STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | ' | ' |
Product revenue | $9,566 | $9,725 |
Other revenue | 24 | 312 |
Total revenue | 9,590 | 10,037 |
Operating expense: | ' | ' |
Cost of revenue | 7,030 | 7,396 |
Gross profit | 2,560 | 2,641 |
Research and development expense | 1,679 | 1,627 |
Selling, general and administrative expense | 3,372 | 3,403 |
Loss from operations | -2,491 | -2,389 |
Interest income | 2 | ' |
Interest expense | -12 | -7 |
Other, net | 23 | 3 |
Loss before provision for income taxes | -2,478 | -2,393 |
Provision for income taxes | ' | ' |
Net loss | ($2,478) | ($2,393) |
Net loss per share-basic and diluted | ($0.09) | ($0.10) |
Weighted average number of basic and diluted common shares outstanding | 28,469,393 | 24,476,605 |
STATEMENTS_OF_STOCKHOLDERS_EQU
STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, except Share data | |||||
Beginning Balance at Dec. 31, 2011 | $7,476 | $0 | $212 | $93,071 | ($85,807) |
Beginning Balance, Shares at Dec. 31, 2011 | ' | 0 | 21,208,162 | ' | ' |
Stock option exercises , Shares | 0 | ' | ' | ' | ' |
Shareholder rights offering, net of costs | 2,221 | ' | 73 | 2,148 | ' |
Shareholder rights offering, net of costs, Shares | ' | ' | 7,250,000 | ' | ' |
Stock-based compensation | 293 | ' | ' | 293 | ' |
Net loss | -2,393 | ' | ' | ' | -2,393 |
Ending Balance at Dec. 31, 2012 | 7,597 | 0 | 285 | 95,512 | -88,200 |
Ending Balance, Shares at Dec. 31, 2012 | ' | 0 | 28,458,162 | ' | ' |
Stock option exercises | 7 | ' | ' | 7 | ' |
Stock option exercises , Shares | 23,000 | ' | 23,334 | ' | ' |
Stock-based compensation | 242 | ' | ' | 242 | ' |
Net loss | -2,478 | ' | ' | ' | -2,478 |
Ending Balance at Dec. 31, 2013 | $5,368 | $0 | $285 | $95,761 | ($90,678) |
Ending Balance, Shares at Dec. 31, 2013 | ' | 0 | 28,481,496 | ' | ' |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | ' | ' |
Net loss | ($2,478) | ($2,393) |
Adjustments to reconcile net loss to cash used in operating activities: | ' | ' |
Depreciation and amortization | 875 | 982 |
Share-based compensation | 242 | 291 |
(Gain) Loss on disposal of equipment | -23 | 4 |
Allowance for excess inventory quantities | 52 | ' |
Changes in assets and liabilities related to operations: | ' | ' |
Trade accounts receivable | 979 | -153 |
Other receivables | 26 | -13 |
Inventories | 111 | 200 |
Prepaid expenses and other assets | 39 | 151 |
Accounts payable | -180 | 355 |
Accrued expenses | -165 | -24 |
Net cash used in operating activities | -522 | -600 |
Investing activities: | ' | ' |
Proceeds from disposal of equipment | 23 | ' |
Acquisition of equipment and leasehold improvements | -279 | -152 |
Payment of accounts payable incurred for the purchase of equipment and leasehold improvements | -20 | -15 |
Net cash used in investing activities | -276 | -167 |
Financing activities: | ' | ' |
Principal payment on capital leases | -57 | -23 |
Proceeds from shareholder rights offering, net of costs | ' | 2,220 |
Proceeds from exercise of stock options | 7 | 0 |
Net cash (used in) provided by financing activities | -50 | 2,197 |
(Decrease) increase in cash and cash equivalents | -848 | 1,430 |
Cash and cash equivalents at beginning of period | 4,124 | 2,694 |
Cash and cash equivalents at end of period | 3,276 | 4,124 |
Supplemental cash flow information: | ' | ' |
Interest paid | 12 | 7 |
Supplemental non-cash investing and financing activities: | ' | ' |
Accounts payable incurred for the purchase of equipment and leasehold improvements | 23 | 20 |
Capital lease obligations incurred in the purchase of equipment | ' | $120 |
Description_of_Business
Description of Business | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Description of Business | ' | |
-1 | Description of Business | |
Nanophase is an advanced materials and applications developer and commercial manufacturer with an integrated family of nanomaterial technologies. We produce engineered materials for use in a variety of diverse markets: personal care including sunscreens, architectural coatings, industrial coating ingredients, abrasion-resistant additives, plastics additives, medical diagnostics, energy, and a variety of surface finishing technologies (polishing) applications. We target markets in which we believe practical solutions may be found using nanoengineered products. We work closely with current and potential customers in these target markets to identify their material and performance requirements and market our materials to various end-use applications manufacturers. Recently developed technologies have made certain new products possible and opened potential new markets. We recently developed new material solutions in surface finishing technologies (polishing) and energy-management areas that have been taken to potential customers and are in the process of qualification. Although our primary strategic focus has been the North American market, we currently sell material to customers overseas and have been working to expand our reach within foreign markets. The Company was incorporated in Illinois on November 25, 1989, and became a Delaware corporation during November 1997. Our common stock trades on the OTCQB marketplace under the symbol NANX. | ||
While product sales comprise the majority of our revenue, we also recognize revenue from other sources from time to time. These activities are not expected to drive the long-term growth of the business. For this reason, we classify such revenue as “other revenue” in our Statement of Operations, as it does not represent revenue directly from our nanocrystalline materials. | ||
The presentation of certain prior year disclosures has been modified to conform to current year presentation, as financial data is now presented in thousands of dollars rather than in dollars. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
-2 | Summary of Significant Accounting Policies | ||||||||
Use of Estimates and Risks and Uncertainties | |||||||||
The preparation of financial statements requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain assumptions are also necessary to assess the impact of risks and uncertainties on the financial statements, such as cash flow projections, availability of capital if needed to support the ongoing operations of the business, and our expected compliance with contractual commitments. These risks and uncertainties are further discussed in Note 12. Any changes in these assumptions or business plans could have a material impact on the financial statements. | |||||||||
Cash and Cash Equivalents | |||||||||
Cash and cash equivalents primarily consist of demand deposits, but also include certain lower risk investments with a stated maturity upon acquisition of 90 days or less (e.g., money market funds or a certificate of deposit with a maturity of 90 days or less at the time of purchase). | |||||||||
Trade Accounts Receivable | |||||||||
Trade accounts receivable are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. We determine the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Trade accounts receivable are written off when deemed uncollectible. Recoveries of trade accounts receivable previously written off are recorded when received. Our typical credit terms are thirty days from shipment and invoicing. | |||||||||
Inventories | |||||||||
Inventories are stated at the lower of cost, maintained on a first in, first out basis, or market. We have recorded allowances to reduce inventory relating to excess quantities of certain materials. Write-downs of inventories establish a new cost basis, which is not increased for future increases in market value of inventories or changes in estimated excess quantities. | |||||||||
Equipment and Leasehold Improvements | |||||||||
Equipment is stated at cost and is being depreciated over its estimated useful life (3-20 years) using the straight-line method. Leasehold improvements are stated at cost and are being amortized using the straight-line method over the shorter of the useful life of the asset or the term of the lease (3-13 years). Depreciation expense for leased assets is included with depreciation expense for owned assets. From time to time we have self-constructed assets. These assets are stated at cost plus the capitalization of labor and are depreciated over an estimated useful life (7-10 years) using the straight-line method. | |||||||||
Long Lived Assets | |||||||||
We review long-lived assets for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. We conduct long-lived asset impairment analyses in accordance with ASC 360-10-15, Impairment or Disposal of Long-Lived Assets. ASC 360-10-15 requires us to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on discounted cash flow analysis or appraisals. | |||||||||
Asset Retirement Obligations | |||||||||
In connection with our leased facilities, we are required to remove certain leasehold improvements upon termination of our occupancy. We follow the provisions of the FASB issued ASC 410-20, under which we recognize a liability for the fair value of these asset retirement obligations. The fair value of that liability is measured based on an expected cash flow approach and accretion expense is recognized each period to recognize increases to the fair value of the liability due to the passage of time. Increases to the fair value of the liability, except for accretion, are added to the carrying value of the long-lived asset. Those increases are then reported in amortization expense over the estimated useful life of the long-lived asset. | |||||||||
Activity in the asset retirement obligation account for the years ended December 31, is as follows: | |||||||||
2013 | 2012 | ||||||||
Balance, beginning | $ | 154 | $ | 149 | |||||
Accretion of liability due to passage of time | 6 | 5 | |||||||
Amortization of asset due to passage of time | — | — | |||||||
Balance, ending | $ | 160 | $ | 154 | |||||
Financial Instruments | |||||||||
We follow ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. | |||||||||
Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. The fair values of all financial instruments were not materially different from their carrying values. | |||||||||
There were no financial assets or liabilities adjusted to fair value on December 31, 2013 and 2012. | |||||||||
Product Revenue | |||||||||
Product revenue consists of sales of product that are recognized when realized and earned. This occurs when persuasive evidence of an arrangement exists, title transfers via shipment of products or when delivery has occurred, the price is fixed or determinable and collectability is reasonably assured. | |||||||||
Other Revenue | |||||||||
Other revenue included revenue from a technology license through 2012. Technology license fees are recognized when earned pursuant to the agreed upon contractual arrangement, when performance obligations are satisfied, the amount is fixed or determinable, and collectability is reasonably assured. | |||||||||
During December 1997, we entered into a license agreement whereby we granted a royalty-bearing exclusive right and license, as defined, to purchase, make, use and sell nanocrystalline materials in designated parts of Asia to CIK Nanotek (formerly C. I. Kasei), a subsidiary of Itochu Corporation (“CIK”). Under this agreement, we also earned royalties on net sales of manufactured products containing nanocrystalline materials. The agreement also provided for minimum sales targets and minimum royalty payments to maintain exclusivity. The agreement expired on March 31, 2013, and in conjunction with a subsequent agreement between the parties effective April 1, 2013, the relationship between the entities became non-exclusive and royalty-free upon such termination. We recorded royalty revenues, classified as “Other Revenue” on the Statements of Operations, under this agreement of none and $279 for the years ended December 31, 2013 and 2012, respectively. | |||||||||
Shipping and handling costs are included in other revenue when products are shipped and invoiced to the customer. We include the related cost of shipping and handling in cost of goods sold. | |||||||||
Research and Development Expenses | |||||||||
Research and development expenses are recognized as expense when incurred. | |||||||||
Income Taxes | |||||||||
We account for income taxes using the liability method. As such, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are calculated using the enacted tax rates and laws that are expected to be in effect when the anticipated reversal of these differences is scheduled to occur. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||||||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured, as described above, is reflected as a liability for uncertain tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. | |||||||||
We have not recorded a reserve for any tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. We file tax returns in all appropriate jurisdictions, which includes a federal tax return and Illinois state tax return. Open tax years for both jurisdictions are 2010 to 2012, which statutes expire in 2014 to 2016, respectively, under most cases and subject to appropriate laws and regulations. When and if applicable, potential interest and penalty costs are accrued as incurred, with expenses recognized in selling, general and administrative expenses in the statements of operations. As of December 31, 2013 and 2012, we had no liability for unrecognized tax benefits. | |||||||||
Earnings Per Share | |||||||||
Net loss per common share is computed based upon the weighted average number of common shares outstanding. No equivalent shares are included in 2013 and 2012 because the effect of these securities is anti-dilutive, and because the impact on a per share basis would not be meaningful. |
Investments
Investments | 12 Months Ended | |
Dec. 31, 2013 | ||
Investments Debt And Equity Securities [Abstract] | ' | |
Investments | ' | |
-3 | Investments | |
Investments on December 31, 2013 and 2012, were comprised of certificates of deposit in the amount of $30, which are pledged as collateral, primarily for our rent in 2013 and 2012, and are restricted as to withdrawal or usage. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
-4 | Inventories | ||||||||
Inventories consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 132 | $ | 200 | |||||
Finished goods | 896 | 999 | |||||||
1,028 | 1,199 | ||||||||
Allowance for excess quantities | (52 | ) | (60 | ) | |||||
$ | 976 | $ | 1,139 | ||||||
Equipment_and_Leasehold_Improv
Equipment and Leasehold Improvements | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Equipment and Leasehold Improvements | ' | ||||||||
-5 | Equipment and Leasehold Improvements | ||||||||
Equipment and leasehold improvements consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Machinery and equipment | $ | 13,737 | $ | 13,559 | |||||
Office equipment | 752 | 731 | |||||||
Office furniture | 110 | 108 | |||||||
Leasehold improvements | 4,749 | 4,749 | |||||||
Construction in progress | 45 | 25 | |||||||
19,393 | 19,172 | ||||||||
Less: Accumulated depreciation and amortization | (16,929 | ) | (16,144 | ) | |||||
$ | 2,464 | $ | 3,028 | ||||||
Depreciation expense was $866 and $974, for the years ended December 31, 2013 and 2012, respectively. |
Lease_Commitments
Lease Commitments | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Lease Commitments | ' | ||||
-6 | Lease Commitments | ||||
We lease our operating facilities under operating leases. On October 18, 2005 we entered into a Lease Amendment amending our then-current lease for our facility in Romeoville, Illinois, which, among other things, extended the term of such lease through December 31, 2015 (with our option to extend the term for up to two additional five year periods). The current monthly rent on this lease amounts to $29. We lease our Burr Ridge, Illinois, facility under an agreement most recently extended during September 2010, extending its term through September 2014 (we have since exercised an option to extend through September 2015 and have the option to extend the term for up to two additional one-year periods). The current monthly rent on this lease amounts to $13. During August of 2013 we also renewed our lease for our offsite warehouse in Romeoville, Illinois, through August 2016. The current monthly rent on this lease amounts to $5. | |||||
The following is a schedule of future minimum lease payments including real estate taxes as required under the above operating leases: | |||||
Year ending December 31: | |||||
2014 | $ | 684 | |||
2015 | 659 | ||||
2016 | 524 | ||||
2017 | 484 | ||||
2018 | 493 | ||||
Thereafter | 3,741 | ||||
Total minimum payments required: | $ | 6,585 | |||
Rent expense, including real estate taxes, under these leases amounted to $653 and $647, for the years ended December 31, 2013 and 2012, respectively. | |||||
On December 31, 2013 equipment under capital leases had a cost of $96 with accumulated depreciation of $55. We entered into no new capital leases during 2013 compared to four with a cost of $120 in 2012. Principal and interest payments are due monthly under the capital lease obligations through April 2015. |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Expenses | ' | ||||||||
-7 | Accrued Expenses | ||||||||
Accrued expenses consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued payroll and related expenses | $ | 240 | $ | 377 | |||||
Other | 83 | 108 | |||||||
$ | 323 | $ | 485 | ||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
-8 | Income Taxes | ||||||||
We have no income tax provision, current or deferred, relating to U.S. federal, state or local income taxes. | |||||||||
A reconciliation of income tax expense to the amount computed by applying the Federal income tax rate to loss before provision for income taxes as of December 31, 2013 and 2012 is as follows: | |||||||||
2013 | 2012 | ||||||||
Income tax credit at statutory rates | $ | (842 | ) | $ | (813 | ) | |||
Nondeductible expenses | 2 | 2 | |||||||
State income tax, net of federal benefits | (127 | ) | (122 | ) | |||||
Other | 4 | 1 | |||||||
Increase in valuation allowance | 963 | 932 | |||||||
$ | — | $ | — | ||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred income taxes consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforwards | $ | 30,765 | $ | 30,028 | |||||
Capital loss carryforwards | 109 | 109 | |||||||
Inventory and other allowances | 31 | 34 | |||||||
Charitable contribution carryforwards | 5 | 3 | |||||||
Excess (tax) book depreciation | 492 | 361 | |||||||
Excess (tax) book amortization | 62 | 60 | |||||||
Share-based compensation | 1,253 | 1,159 | |||||||
Other accrued costs | 279 | 279 | |||||||
Total deferred tax assets | 32,996 | 32,033 | |||||||
Less: Valuation allowance | (32,996 | ) | (32,033 | ) | |||||
Deferred income taxes | $ | — | $ | — | |||||
The valuation allowance increased approximately $1.0 million and decreased $0.3 million for the years ended December 31, 2013 and 2012, respectively (net of approximately none and $1.2 million for 2013 and 2012, respectively, for expiring net operating loss carryforwards and credits) due principally to the change in the net operating loss carryforward and uncertainty as to whether future taxable income will be generated prior to the expiration of the carryforward period. Under the Internal Revenue Code, certain ownership changes, including the prior issuance of preferred stock and our public offering of common stock, may subject us to annual limitations on the utilization of our net operating loss carryforward. As of December 31, 2013, the amounts subject to limitations has not yet been determined. | |||||||||
We have net operating loss carryforwards for tax purposes of approximately $79 million on December 31, 2013, which expire between 2018 and 2033. We have capital loss carryforwards for tax purposes of approximately $0.3 million on December 31, 2013 which expire in 2014. | |||||||||
During 2011, the state of Illinois suspended the use of net operating loss carryforwards for a four year period beginning 2011, extending the term of all net loss carryforwards by a corresponding four years. |
Capital_Stock
Capital Stock | 12 Months Ended | |
Dec. 31, 2013 | ||
Equity [Abstract] | ' | |
Capital Stock | ' | |
-9 | Capital Stock | |
On July 20, 2012, we completed a fully subscribed stockholder rights offering, pursuant to which our existing stockholders exercising their basic and oversubscription rights purchased a total of 7,250,000 shares of our common stock, which was the maximum number of shares offered in the rights offering, at a price of $0.33 per share. We received approximately $2.2 million in proceeds from the rights offering, net of costs. As of December 31, 2013 and 2012, we had 24,088 authorized but unissued shares of preferred stock. In addition, as of December 31, 2013, 980,000 authorized but unissued shares of common stock have been reserved for future issuance upon exercise of stock options. |
Stock_Options_and_Stock_Grants
Stock Options and Stock Grants | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock Options and Stock Grants | ' | ||||||||||||||||
-10 | Stock Options and Stock Grants | ||||||||||||||||
We have entered into stock option agreements with certain officers, employees and directors. The stock options generally expire ten years from the date of grant. | |||||||||||||||||
Employee Stock Options | |||||||||||||||||
We follow FASB ASC Topic 718, Share-Based Payments, in which compensation expense is recognized only for share-based payments expected to vest. We recognized compensation expense related to stock options of $242 and $293 for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||
As of December 31, 2013, there was approximately $230 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under our stock option plans. That cost is expected to be recognized over a remaining weighted-average period of 1.8 years. | |||||||||||||||||
The following table illustrates the various assumptions used to calculate the Black-Scholes option pricing model for options granted for all years presented: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Weighted-average risk-free interest rates: | 1.9 | % | 1.1 | % | |||||||||||||
Dividend yield: | 0 | % | 0 | % | |||||||||||||
Weighted-average expected life of the option: | 7 years | 7 years | |||||||||||||||
Weighted-average expected stock price volatility: | 95 | % | 86 | % | |||||||||||||
Weighted-average fair value of the options granted: | $ | 0.34 | $ | 0.23 | |||||||||||||
We use the Black–Scholes option pricing model to determine the fair value of stock based compensation. The Black–Scholes model requires us to make several assumptions, including the estimated length of time employees will retain their vested stock options before exercising them (“expected term”), the estimated volatility of our common stock price over the expected term and estimated forfeitures. Expected price volatility of the fiscal 2013 and 2012 grants is based on the daily market rate changes of our stock going back to January 1, 2004. The shares granted in fiscal 2013 and 2012 had a vesting period of three years and a contractual life of 10 years. Forfeitures were estimated at 4.4% and 4.5% for the years ended December 31, 2013 and 2012, respectively, based on our historical experience. The Black-Scholes model also requires a risk free interest rate, which is based on the U.S. Treasury yield curve in effect at the time of the grant, and the dividend yield on our common stock, which is assumed to be zero since we do not pay dividends and have no current plans to do so in the future. Changes in these assumptions can materially affect the estimate of fair value of stock based compensation and consequently, the related expense recognized on the statement of operations. We recognize stock based compensation expense on a straight-line basis. | |||||||||||||||||
The following table summarizes the option activity for our employees and directors during the year ended December 31, 2013: | |||||||||||||||||
Options | (rounded) | Weighted | Weighted | Aggregate | |||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Shares | Price per | Contractual | |||||||||||||||
Share | Term | ||||||||||||||||
(years) | |||||||||||||||||
Outstanding on January 1, 2013 | 1,857,000 | $ | 1.69 | ||||||||||||||
Granted | 600,000 | $ | 0.42 | ||||||||||||||
Exercised | (23,000 | ) | $ | 0.3 | |||||||||||||
Forfeited or expired | (340,000 | ) | $ | 1.8 | |||||||||||||
Outstanding on December 31, 2013 | 2,094,000 | $ | 1.3 | 7.3 | $ | 188 | |||||||||||
Exercisable on December 31, 2013 | 1,096,000 | $ | 2.06 | 5.9 | $ | 40 | |||||||||||
Shares available for grant | 980,000 | ||||||||||||||||
The aggregate intrinsic value in the table above is based on our closing stock price of $0.54 on the last business day for the period ended December 31, 2013. | |||||||||||||||||
During the years ended December 31, 2013 and 2012 the total intrinsic value of our stock options exercised was $3 and $0, respectively. Cash received for option exercises was $7 and $0 during the years ended December 31, 2013 and 2012, respectively. We had approximately 23,000 options exercised during the year ended December 31, 2013, compared to none in 2012. Based on our election of the “with and without” approach, no realized tax benefits from stock options were recognized for the years ended December 31, 2013 and 2012. | |||||||||||||||||
Stock Appreciation Rights | |||||||||||||||||
Prior to 2011, we granted our outside directors stock appreciation rights (SARs) under our Amended and Restated 2006 Stock Appreciation Rights Plan and subsequently under our 2010 Equity Plan. The change in fair value of the awards granted during prior years is included in non-cash compensation expense for the year ended December 31, 2013. The SARs granted vested immediately and are payable upon the directors’ removal or resignation from the position of director. These awards are accounted for as liability awards, included in accrued expenses as of December 31, 2013 and 2012, and adjusted to fair value each reporting period. The fair value of the liability on December 31, 2013 and 2012 was $8 and $9, respectively. | |||||||||||||||||
Restricted Stock | |||||||||||||||||
As of December 31, 2013 and 2012, respectively, we did not have any unvested non-director restricted stock or performance shares outstanding. |
401k_ProfitSharing_Plan
401(k) Profit-Sharing Plan | 12 Months Ended | |
Dec. 31, 2013 | ||
Compensation And Retirement Disclosure [Abstract] | ' | |
401(k) Profit-Sharing Plan | ' | |
-11 | 401(k) Profit-Sharing Plan | |
We have a 401(k) profit-sharing plan covering substantially all employees who meet defined service requirements. We may make maximum contributions of 100% of the first 3% and 50% of the next 2% of the participant’s salary. Our contributions under this plan were $109 and $107 for the years ended December 31, 2013 and 2012, respectively. We made changes to our benefits program and, as part of those changes, have discontinued these Company contributions effective January 2014. |
Significant_Customers_and_Cont
Significant Customers and Contingencies | 12 Months Ended | |
Dec. 31, 2013 | ||
Text Block [Abstract] | ' | |
Significant Customers and Contingencies | ' | |
-12 | Significant Customers and Contingencies | |
Revenue from three customers constituted approximately 72%, 6% and 5%, respectively, of our 2013 revenue. Amounts included in accounts receivable on December 31, 2013 relating to these three customers were approximately ($308) – customer payments in excess of outstanding volume purchase rebate, $46 and $111, respectively. Revenue from these three customers constituted approximately 67%, 4% and 5%, respectively, of our 2012 revenue. Amounts included in accounts receivable on December 31, 2012 relating to these three customers were approximately $420, $46 and $173, respectively. The loss of one of these significant customers or the failure to attract new customers could have a material adverse effect on our business, results of operations and financial condition. | ||
We currently have exclusive supply agreements with BASF Corporation (“BASF”), our largest customer, that have contingencies outlined which could potentially result in the license of technology and/or the sale of production equipment from the Company to the customer intended to provide capacity sufficient to meet the customer’s production needs. This outcome may occur if we fail to meet certain performance requirements, certain other obligations and/or certain financial condition covenants. The financial condition covenants in one of our supply agreements with BASF “trigger” a technology transfer right (license and equipment sale at BASF’s option) in the event (a) that earnings for the twelve month period ending with our most recently published quarterly financial statements are less than zero and our cash, cash equivalents and certain investments are less than $1 million (reduced from $2 million during 2012 by mutual agreement), or (b) of an acceleration of any debt maturity having a principal amount of more than $10 million. Our supply agreements with BASF also “trigger” a technology transfer right in the event of our insolvency, as further defined within the agreements. In the event of an equipment sale, upon incurring a triggering event, the equipment would be sold to the customer at either 115% of the equipment’s net book value or the greater of 30% of the original book value of such equipment, and any associated upgrades to it, or 115% of the equipment’s net book value, depending on the equipment and related products. | ||
We believe that we have sufficient cash, (See Liquidity and Capital Resources in Management’s Discussion and Analysis in Part II, Item 7 of this Form 10-K for a further discussion) to operate our business during 2014. If a triggering event were to occur and BASF elected to proceed with the license and related equipment sale mentioned above, we would receive royalty payments from this customer for products sold using our technology; however, we would lose both significant revenue and the ability to generate significant revenue to replace that which was lost in the near term. Replacement of necessary equipment that could be purchased and removed by the customer pursuant to this triggering event could take in excess of twelve months. Any additional capital outlays required to rebuild capacity would probably be greater than the proceeds from the purchase of the assets as dictated by our agreement with the customer. Similar consequences would occur if we were determined to have materially breached certain other provisions of the supply agreement with BASF. Any such event would also likely result in the loss of many of our key staff and line employees due to economic realities. We believe that our employees are a critical component of our success and could be difficult to replace them quickly. Given the occurrence of any such event, we might not be able to hire and retain skilled employees given the stigma relating to such an event and its impact on us. Finally, any shortfall in capital needed to operate the business as management intends, including with respect to avoiding this triggering event as described above, may result in a curtailment of certain activities or anticipated investments. |
Business_Segmentation_and_Geog
Business Segmentation and Geographical Distribution | 12 Months Ended | |
Dec. 31, 2013 | ||
Segment Reporting [Abstract] | ' | |
Business Segmentation and Geographical Distribution | ' | |
-13 | Business Segmentation and Geographical Distribution | |
Revenue from international sources approximated $915 and $858 for the years ended December 31, 2013 and 2012, respectively. As part of our revenue from international sources, we recognized approximately $894 in product revenue from a number of German companies, in the aggregate, for the year ended December 31, 2013. Revenue from these same international sources approximated $548 for the year ended December 31, 2012. 2012 also included revenue from the previously described Japanese licensee of $279. That license expired with no related revenue recognized during 2013. | ||
Our operations comprise a single business segment and all of our long-lived assets are located within the United States. | ||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Use of Estimates and Risks and Uncertainties | ' | ||||||||
Use of Estimates and Risks and Uncertainties | |||||||||
The preparation of financial statements requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain assumptions are also necessary to assess the impact of risks and uncertainties on the financial statements, such as cash flow projections, availability of capital if needed to support the ongoing operations of the business, and our expected compliance with contractual commitments. These risks and uncertainties are further discussed in Note 12. Any changes in these assumptions or business plans could have a material impact on the financial statements. | |||||||||
Cash and Cash Equivalents | ' | ||||||||
Cash and Cash Equivalents | |||||||||
Cash and cash equivalents primarily consist of demand deposits, but also include certain lower risk investments with a stated maturity upon acquisition of 90 days or less (e.g., money market funds or a certificate of deposit with a maturity of 90 days or less at the time of purchase). | |||||||||
Trade Accounts Receivable | ' | ||||||||
Trade Accounts Receivable | |||||||||
Trade accounts receivable are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. We determine the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Trade accounts receivable are written off when deemed uncollectible. Recoveries of trade accounts receivable previously written off are recorded when received. Our typical credit terms are thirty days from shipment and invoicing. | |||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories are stated at the lower of cost, maintained on a first in, first out basis, or market. We have recorded allowances to reduce inventory relating to excess quantities of certain materials. Write-downs of inventories establish a new cost basis, which is not increased for future increases in market value of inventories or changes in estimated excess quantities. | |||||||||
Equipment and Leasehold Improvements | ' | ||||||||
Equipment and Leasehold Improvements | |||||||||
Equipment is stated at cost and is being depreciated over its estimated useful life (3-20 years) using the straight-line method. Leasehold improvements are stated at cost and are being amortized using the straight-line method over the shorter of the useful life of the asset or the term of the lease (3-13 years). Depreciation expense for leased assets is included with depreciation expense for owned assets. From time to time we have self-constructed assets. These assets are stated at cost plus the capitalization of labor and are depreciated over an estimated useful life (7-10 years) using the straight-line method. | |||||||||
Long Lived Assets | ' | ||||||||
Long Lived Assets | |||||||||
We review long-lived assets for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. We conduct long-lived asset impairment analyses in accordance with ASC 360-10-15, Impairment or Disposal of Long-Lived Assets. ASC 360-10-15 requires us to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on discounted cash flow analysis or appraisals. | |||||||||
Asset Retirement Obligations | ' | ||||||||
Asset Retirement Obligations | |||||||||
In connection with our leased facilities, we are required to remove certain leasehold improvements upon termination of our occupancy. We follow the provisions of the FASB issued ASC 410-20, under which we recognize a liability for the fair value of these asset retirement obligations. The fair value of that liability is measured based on an expected cash flow approach and accretion expense is recognized each period to recognize increases to the fair value of the liability due to the passage of time. Increases to the fair value of the liability, except for accretion, are added to the carrying value of the long-lived asset. Those increases are then reported in amortization expense over the estimated useful life of the long-lived asset. | |||||||||
Activity in the asset retirement obligation account for the years ended December 31, is as follows: | |||||||||
2013 | 2012 | ||||||||
Balance, beginning | $ | 154 | $ | 149 | |||||
Accretion of liability due to passage of time | 6 | 5 | |||||||
Amortization of asset due to passage of time | — | — | |||||||
Balance, ending | $ | 160 | $ | 154 | |||||
Financial Instruments | ' | ||||||||
Financial Instruments | |||||||||
We follow ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. | |||||||||
Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. The fair values of all financial instruments were not materially different from their carrying values. | |||||||||
There were no financial assets or liabilities adjusted to fair value on December 31, 2013 and 2012. | |||||||||
Product Revenue | ' | ||||||||
Product Revenue | |||||||||
Product revenue consists of sales of product that are recognized when realized and earned. This occurs when persuasive evidence of an arrangement exists, title transfers via shipment of products or when delivery has occurred, the price is fixed or determinable and collectability is reasonably assured. | |||||||||
Other Revenue | ' | ||||||||
Other Revenue | |||||||||
Other revenue included revenue from a technology license through 2012. Technology license fees are recognized when earned pursuant to the agreed upon contractual arrangement, when performance obligations are satisfied, the amount is fixed or determinable, and collectability is reasonably assured. | |||||||||
During December 1997, we entered into a license agreement whereby we granted a royalty-bearing exclusive right and license, as defined, to purchase, make, use and sell nanocrystalline materials in designated parts of Asia to CIK Nanotek (formerly C. I. Kasei), a subsidiary of Itochu Corporation (“CIK”). Under this agreement, we also earned royalties on net sales of manufactured products containing nanocrystalline materials. The agreement also provided for minimum sales targets and minimum royalty payments to maintain exclusivity. The agreement expired on March 31, 2013, and in conjunction with a subsequent agreement between the parties effective April 1, 2013, the relationship between the entities became non-exclusive and royalty-free upon such termination. We recorded royalty revenues, classified as “Other Revenue” on the Statements of Operations, under this agreement of none and $279 for the years ended December 31, 2013 and 2012, respectively. | |||||||||
Shipping and handling costs are included in other revenue when products are shipped and invoiced to the customer. We include the related cost of shipping and handling in cost of goods sold. | |||||||||
Research and Development Expenses | ' | ||||||||
Research and Development Expenses | |||||||||
Research and development expenses are recognized as expense when incurred. | |||||||||
Income Taxes | ' | ||||||||
Income Taxes | |||||||||
We account for income taxes using the liability method. As such, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are calculated using the enacted tax rates and laws that are expected to be in effect when the anticipated reversal of these differences is scheduled to occur. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||||||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured, as described above, is reflected as a liability for uncertain tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. | |||||||||
We have not recorded a reserve for any tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. We file tax returns in all appropriate jurisdictions, which includes a federal tax return and Illinois state tax return. Open tax years for both jurisdictions are 2010 to 2012, which statutes expire in 2014 to 2016, respectively, under most cases and subject to appropriate laws and regulations. When and if applicable, potential interest and penalty costs are accrued as incurred, with expenses recognized in selling, general and administrative expenses in the statements of operations. As of December 31, 2013 and 2012, we had no liability for unrecognized tax benefits. | |||||||||
Earnings Per Share | ' | ||||||||
Earnings Per Share | |||||||||
Net loss per common share is computed based upon the weighted average number of common shares outstanding. No equivalent shares are included in 2013 and 2012 because the effect of these securities is anti-dilutive, and because the impact on a per share basis would not be meaningful. | |||||||||
Share-Based Payments | ' | ||||||||
We follow FASB ASC Topic 718, Share-Based Payments, in which compensation expense is recognized only for share-based payments expected to vest. We recognized compensation expense related to stock options of $242 and $293 for the years ended December 31, 2013 and 2012, respectively. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Change in Asset Retirement Obligation Account Activity | ' | ||||||||
Activity in the asset retirement obligation account for the years ended December 31, is as follows: | |||||||||
2013 | 2012 | ||||||||
Balance, beginning | $ | 154 | $ | 149 | |||||
Accretion of liability due to passage of time | 6 | 5 | |||||||
Amortization of asset due to passage of time | — | — | |||||||
Balance, ending | $ | 160 | $ | 154 | |||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Summary of Inventories | ' | ||||||||
Inventories consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 132 | $ | 200 | |||||
Finished goods | 896 | 999 | |||||||
1,028 | 1,199 | ||||||||
Allowance for excess quantities | (52 | ) | (60 | ) | |||||
$ | 976 | $ | 1,139 | ||||||
Equipment_and_Leasehold_Improv1
Equipment and Leasehold Improvements (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Components of Equipment and Leasehold Improvements | ' | ||||||||
Equipment and leasehold improvements consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Machinery and equipment | $ | 13,737 | $ | 13,559 | |||||
Office equipment | 752 | 731 | |||||||
Office furniture | 110 | 108 | |||||||
Leasehold improvements | 4,749 | 4,749 | |||||||
Construction in progress | 45 | 25 | |||||||
19,393 | 19,172 | ||||||||
Less: Accumulated depreciation and amortization | (16,929 | ) | (16,144 | ) | |||||
$ | 2,464 | $ | 3,028 | ||||||
Lease_Commitments_Tables
Lease Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Schedule of Future Minimum Lease Payments | ' | ||||
The following is a schedule of future minimum lease payments including real estate taxes as required under the above operating leases: | |||||
Year ending December 31: | |||||
2014 | $ | 684 | |||
2015 | 659 | ||||
2016 | 524 | ||||
2017 | 484 | ||||
2018 | 493 | ||||
Thereafter | 3,741 | ||||
Total minimum payments required: | $ | 6,585 | |||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Expenses | ' | ||||||||
Accrued expenses consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued payroll and related expenses | $ | 240 | $ | 377 | |||||
Other | 83 | 108 | |||||||
$ | 323 | $ | 485 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Reconciliation of Income Tax Expense By Applying Federal Income Tax Rate to Loss Before Provision for Income Taxes | ' | ||||||||
A reconciliation of income tax expense to the amount computed by applying the Federal income tax rate to loss before provision for income taxes as of December 31, 2013 and 2012 is as follows: | |||||||||
2013 | 2012 | ||||||||
Income tax credit at statutory rates | $ | (842 | ) | $ | (813 | ) | |||
Nondeductible expenses | 2 | 2 | |||||||
State income tax, net of federal benefits | (127 | ) | (122 | ) | |||||
Other | 4 | 1 | |||||||
Increase in valuation allowance | 963 | 932 | |||||||
$ | — | $ | — | ||||||
Deferred Income Taxes | ' | ||||||||
Significant components of our deferred income taxes consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforwards | $ | 30,765 | $ | 30,028 | |||||
Capital loss carryforwards | 109 | 109 | |||||||
Inventory and other allowances | 31 | 34 | |||||||
Charitable contribution carryforwards | 5 | 3 | |||||||
Excess (tax) book depreciation | 492 | 361 | |||||||
Excess (tax) book amortization | 62 | 60 | |||||||
Share-based compensation | 1,253 | 1,159 | |||||||
Other accrued costs | 279 | 279 | |||||||
Total deferred tax assets | 32,996 | 32,033 | |||||||
Less: Valuation allowance | (32,996 | ) | (32,033 | ) | |||||
Deferred income taxes | $ | — | $ | — | |||||
Stock_Options_and_Stock_Grants1
Stock Options and Stock Grants (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Assumptions Used to Calculate Black-Scholes Option Pricing Model for Stock Options Granted | ' | ||||||||||||||||
The following table illustrates the various assumptions used to calculate the Black-Scholes option pricing model for options granted for all years presented: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Weighted-average risk-free interest rates: | 1.9 | % | 1.1 | % | |||||||||||||
Dividend yield: | 0 | % | 0 | % | |||||||||||||
Weighted-average expected life of the option: | 7 years | 7 years | |||||||||||||||
Weighted-average expected stock price volatility: | 95 | % | 86 | % | |||||||||||||
Weighted-average fair value of the options granted: | $ | 0.34 | $ | 0.23 | |||||||||||||
Summary of Option Activity | ' | ||||||||||||||||
The following table summarizes the option activity for our employees and directors during the year ended December 31, 2013: | |||||||||||||||||
Options | (rounded) | Weighted | Weighted | Aggregate | |||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Shares | Price per | Contractual | |||||||||||||||
Share | Term | ||||||||||||||||
(years) | |||||||||||||||||
Outstanding on January 1, 2013 | 1,857,000 | $ | 1.69 | ||||||||||||||
Granted | 600,000 | $ | 0.42 | ||||||||||||||
Exercised | (23,000 | ) | $ | 0.3 | |||||||||||||
Forfeited or expired | (340,000 | ) | $ | 1.8 | |||||||||||||
Outstanding on December 31, 2013 | 2,094,000 | $ | 1.3 | 7.3 | $ | 188 | |||||||||||
Exercisable on December 31, 2013 | 1,096,000 | $ | 2.06 | 5.9 | $ | 40 | |||||||||||
Shares available for grant | 980,000 | ||||||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Line Items] | ' | ' |
Cash and cash equivalents description | '90 days or less | ' |
Credit items after shipment and invoicing | '30 days | ' |
Financial assets or liabilities at fair value | $0 | $0 |
Other Revenue | 0 | 279,000 |
Threshold percentage | 50.00% | ' |
Liability for unrecognized tax benefits | $0 | $0 |
Antidilutive securities excluded from computation of earnings per share | 0 | 0 |
Minimum [Member] | ' | ' |
Accounting Policies [Line Items] | ' | ' |
Open tax years for jurisdictions | '2010 | ' |
Income tax statutes expiration year | '2014 | ' |
Minimum [Member] | Leased assets [Member] | ' | ' |
Accounting Policies [Line Items] | ' | ' |
Equipment leasehold improvements, and leased assets useful life | '7 years | ' |
Minimum [Member] | Equipment [Member] | ' | ' |
Accounting Policies [Line Items] | ' | ' |
Equipment leasehold improvements, and leased assets useful life | '3 years | ' |
Minimum [Member] | Leasehold improvements [Member] | ' | ' |
Accounting Policies [Line Items] | ' | ' |
Equipment leasehold improvements, and leased assets useful life | '3 years | ' |
Maximum [Member] | ' | ' |
Accounting Policies [Line Items] | ' | ' |
Open tax years for jurisdictions | '2012 | ' |
Income tax statutes expiration year | '2016 | ' |
Maximum [Member] | Leased assets [Member] | ' | ' |
Accounting Policies [Line Items] | ' | ' |
Equipment leasehold improvements, and leased assets useful life | '10 years | ' |
Maximum [Member] | Equipment [Member] | ' | ' |
Accounting Policies [Line Items] | ' | ' |
Equipment leasehold improvements, and leased assets useful life | '20 years | ' |
Maximum [Member] | Leasehold improvements [Member] | ' | ' |
Accounting Policies [Line Items] | ' | ' |
Equipment leasehold improvements, and leased assets useful life | '13 years | ' |
Asset_Retirement_Obligations_S
Asset Retirement Obligations - Schedule of Activity in Asset Retirement Obligations (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Asset Retirement Obligation Disclosure [Abstract] | ' | ' |
Balance, beginning | $154 | $149 |
Accretion of liability due to passage of time | 6 | 5 |
Amortization of asset due to passage of time | ' | ' |
Balance, ending | $160 | $154 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments All Other Investments [Abstract] | ' | ' |
Certificates of deposit | $30 | $30 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $132 | $200 |
Finished goods | 896 | 999 |
Inventory gross, Total | 1,028 | 1,199 |
Allowance for excess quantities | -52 | -60 |
Inventories net, Total | $976 | $1,139 |
Equipment_and_Leasehold_Improv2
Equipment and Leasehold Improvements - Components of Equipment and Leasehold Improvements (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant, and Equipment, Gross | $19,393 | $19,172 |
Less: Accumulated depreciation and amortization | -16,929 | -16,144 |
Property, Plant, and Equipment, Net, Total | 2,464 | 3,028 |
Machinery and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant, and Equipment, Gross | 13,737 | 13,559 |
Office equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant, and Equipment, Gross | 752 | 731 |
Office furniture [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant, and Equipment, Gross | 110 | 108 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant, and Equipment, Gross | 4,749 | 4,749 |
Construction in progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant, and Equipment, Gross | $45 | $25 |
Equipment_and_Leasehold_Improv3
Equipment and Leasehold Improvements - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Equipment And Leasehold Improvements [Abstract] | ' | ' |
Depreciation expense | $866 | $974 |
Lease_Commitments_Additional_I
Lease Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Lease | Lease | |
Operating Leased Assets [Line Items] | ' | ' |
Rent Expense | $653,000 | $647,000 |
cost of equipment under capital lease | 96,000 | 120,000 |
Accumulated depreciation | 55,000 | ' |
Number of capital leases | 0 | 4 |
Romeoville Illinois [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Operating lease number of renewals | 2 | ' |
Operating lease extension period | '5 years | ' |
Monthly rent on lease amounts | 29 | ' |
Burr Ridge Facility [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Operating lease number of renewals | 2 | ' |
Operating lease extension period | '1 year | ' |
Monthly rent on lease amounts | 13 | ' |
Offsite Warehouse [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Monthly rent on lease amounts | $5 | ' |
Lease_Commitments_Schedule_of_
Lease Commitments - Schedule of Future Minimum Lease Payments (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
2014 | $684 |
2015 | 659 |
2016 | 524 |
2017 | 484 |
2018 | 493 |
Thereafter | 3,741 |
Total minimum payments required: | $6,585 |
Accrued_Expenses_Schedule_of_A
Accrued Expenses - Schedule of Accrued Expenses (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Accrued payroll and related expenses | $240 | $377 |
Other | 83 | 108 |
Total | $323 | $485 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Provision for income taxes | ' | ' | ' |
Increase (decrease) in valuation allowance | 1 | -0.3 | ' |
Valuation allowance for operating loss and tax credit carryforwards | 0 | 1.2 | ' |
Net operating loss carryforwards | 79 | ' | ' |
Capital loss carryforwards | $0.30 | ' | ' |
Capital loss carryforwards expiration period | '2014 | ' | ' |
Capital loss carryforwards expiration period start | '2018 | ' | ' |
Capital loss carryforwards expiration period end | '2033 | ' | ' |
Period for suspension of net operating loss carryforwards | ' | ' | '4 years |
Extension of the term of net loss carryforwards | ' | ' | '4 years |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Income Tax Expenses By Applying Federal Income Tax Rate to Loss Before Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | ' | ' |
Income tax credit at statutory rates | ($842) | ($813) |
Nondeductible expenses | 2 | 2 |
State income tax, net of federal benefits | -127 | -122 |
Other | 4 | 1 |
Increase in valuation allowance | 963 | 932 |
Total | ' | ' |
Income_Taxes_Deferred_Income_T
Income Taxes - Deferred Income Taxes (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Net operating loss carryforwards | $30,765 | $30,028 |
Capital loss carryforwards | 109 | 109 |
Inventory and other allowances | 31 | 34 |
Charitable contribution carryforwards | 5 | 3 |
Excess (tax) book depreciation | 492 | 361 |
Excess (tax) book amortization | 62 | 60 |
Share-based compensation | 1,253 | 1,159 |
Other accrued costs | 279 | 279 |
Total deferred tax assets | 32,996 | 32,033 |
Less: Valuation allowance | -32,996 | -32,033 |
Deferred income taxes | ' | ' |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jul. 20, 2012 | Dec. 31, 2012 | Dec. 31, 2013 |
Capital Stock [Abstract] | ' | ' | ' |
Preferred stock, shares authorized | ' | 24,088 | 24,088 |
Shares offered in rights offering | 7,250,000 | ' | ' |
Price per share | $0.33 | ' | ' |
Proceeds from shareholder rights offering, net of costs | $2,200 | $2,220 | ' |
Authorized, unissued shares of common stock | ' | ' | 980,000 |
Stock_Options_and_Stock_Grants2
Stock Options and Stock Grants - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | $242 | $293 |
Total unrecognized compensation cost related to nonvested share-based compensation arrangements granted | 230 | ' |
Weighted-average period over which unrecognized compensation is expected to be recognized | '1 year 9 months 18 days | ' |
Vesting period of shares | '3 years | '3 years |
Contractual life | '10 years | '10 years |
Estimated forfeitures | 4.40% | 4.50% |
Dividend yield | 0.00% | 0.00% |
Closing stock price | $0.54 | ' |
Intrinsic value of stock options exercised, total | 3 | 0 |
Proceeds from exercise of stock options | 7 | 0 |
Stock option exercises , Shares | 23,000 | 0 |
Tax benefits from stock options | 0 | 0 |
Common stock, shares outstanding | 28,481,496 | 28,458,162 |
Restricted Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Common stock, shares outstanding | 0 | ' |
Performance Shares [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Common stock, shares outstanding | 0 | ' |
Stock Appreciation Rights (SARs) [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Fair value of the liability | $8 | $9 |
Stock_Options_and_Stock_Grants3
Stock Options and Stock Grants - Schedule of Assumptions Used to Calculate Black-Scholes Option Pricing Model for Stock Options Granted (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | ' | ' |
Weighted-average risk-free interest rates: | 1.90% | 1.10% |
Dividend yield | 0.00% | 0.00% |
Weighted-average expected life of the option: | '7 years | '7 years |
Weighted-average expected stock price volatility: | 95.00% | 86.00% |
Weighted-average fair value of the options granted: | $0.34 | $0.23 |
Stock_Options_and_Stock_Grants4
Stock Options and Stock Grants - Summary of Option Activity (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Outstanding, Number, Beginning Balance | 1,857,000 | ' |
Shares, Granted | 600,000 | ' |
Stock option exercises , Shares | -23,000 | 0 |
Shares, Forfeited or expired | -340,000 | ' |
Outstanding, Number, Ending Balance | 2,094,000 | 1,857,000 |
Shares, Exercisable | 1,096,000 | ' |
Shares available for grant | 980,000 | ' |
Weighted Average Exercise Price per Share, Beginning Balance | $1.69 | ' |
Weighted Average Exercise Price per Share, Granted | $0.42 | ' |
Weighted Average Exercise Price per Share, Exercised | $0.30 | ' |
Weighted Average Exercise Price per Share, Forfeited or expired | $1.80 | ' |
Weighted Average Exercise Price per Share, Ending Balance | $1.30 | $1.69 |
Weighted Average Exercise Price per Share, Exercisable | $2.06 | ' |
Weighted Average Remaining Contractual Term, Outstanding | '7 years 3 months 18 days | ' |
Weighted Average Remaining Contractual Term Years, Exercisable | '5 years 10 months 24 days | ' |
Aggregate Intrinsic Value, Outstanding | $188 | ' |
Aggregate Intrinsic Value, Exercisable | $40 | ' |
401k_ProfitSharing_Plan_Additi
401(k) Profit-Sharing Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Profit Sharing Plan [Abstract] | ' | ' |
Defined contribution plan employer matching contribution percent for three percent of employee contribution | 100.00% | ' |
Defined contribution plan employer matching contribution percent for first compensation | 3.00% | ' |
Defined contribution plan employer matching contribution percent for two percent of employee contribution | 50.00% | ' |
Defined contribution plan employer matching contribution percent for next compensation | 2.00% | ' |
Contributions under profit sharing plan | $109 | $107 |
Significant_Customers_and_Cont1
Significant Customers and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue, Major Customer [Line Items] | ' | ' |
Number of major customers | 3 | ' |
Accounts receivable | 52 | 1,031 |
Customers One [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Accounts receivable | -308 | 420 |
Customers One [Member] | Sales [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Revenue from top customers | 72.00% | 67.00% |
Customers Two [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Accounts receivable | 46 | 46 |
Customers Two [Member] | Sales [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Revenue from top customers | 6.00% | 4.00% |
Customers Three [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Accounts receivable | 111 | 173 |
Customers Three [Member] | Sales [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Revenue from top customers | 5.00% | 5.00% |
Significant_Customers_and_Cont2
Significant Customers and Contingencies - Additional Information - BASF Supply Agreement (Detail) (USD $) | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Maximum [Member] | BASF [Member] | BASF [Member] | BASF [Member] | |
Maximum [Member] | Minimum [Member] | |||
Unusual Risk or Uncertainty [Line Items] | ' | ' | ' | ' |
Supply agreements with BASF Corporation | ' | 'The financial condition covenants in one of our supply agreements with BASF btriggerb a technology transfer right (license and equipment sale at BASFbs option) in the event (a) that earnings for the twelve month period ending with our most recently published quarterly financial statements are less than zero and our cash, cash equivalents and certain investments are less than $1 million (reduced from $2 million during 2012 by mutual agreement), or (b) of an acceleration of any debt maturity having a principal amount of more than $10 million | ' | ' |
Cash, cash equivalents and investments, maximum | ' | ' | $1,000,000 | ' |
Minimum contractual covenant - net earnings previous twelve months | ' | 0 | ' | ' |
Principal amount of debt on maturity, minimum | ' | ' | ' | 10,000,000 |
Net book value equipment | ' | 115.00% | ' | ' |
Original book value of equipment, Minimum | ' | ' | ' | 30.00% |
Cash cash equivalents and short term investments as per previous agreement | $2,000,000 | ' | ' | ' |
Replacement of equipment period, minimum | ' | ' | ' | '12 months |
Business_Segmentation_and_Geog1
Business Segmentation and Geographical Distribution - Additional Information (Detail) (Non-Domestic Revenue [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue from External Customer [Line Items] | ' | ' |
Revenue from international sources | $915 | $858 |
License expiration year | '2013 | ' |
Product Revenue [Member] | ' | ' |
Revenue from External Customer [Line Items] | ' | ' |
Revenue from international sources | 894 | 548 |
Japanese License [Member] | ' | ' |
Revenue from External Customer [Line Items] | ' | ' |
Revenue from international sources | ' | $279 |