Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 14, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NANX | ||
Entity Registrant Name | NANOPHASE TECHNOLOGIES CORPORATION | ||
Entity Central Index Key | 883,107 | ||
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 | 31,185,496 | ||
Entity Public Float | $ 7,025,000 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 1,275 | $ 1,862 |
Trade accounts receivable, less allowance for doubtful accounts of $6 on December 31, 2015 and 2014 | 507 | 388 |
Inventories, net | 662 | 950 |
Prepaid expenses and other current assets | 247 | 367 |
Total current assets | 2,691 | 3,567 |
Equipment and leasehold improvements, net | 1,861 | 2,138 |
Other assets, net | 22 | 25 |
Total assets | 4,574 | 5,730 |
Current liabilities: | ||
Current portion of capital lease obligations | 94 | 70 |
Accounts payable | 508 | 493 |
Accrued expenses | 276 | 413 |
Total current liabilities | 878 | 976 |
Long-term portion of capital lease obligations | 144 | 121 |
Long-term deferred rent | 519 | 621 |
Asset retirement obligations | 172 | 166 |
Total long-term liabilities | $ 835 | $ 908 |
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; 28,585,496 and 28,516,163 shares issued and outstanding on December 31, 2015 and December 31, 2014, respectively | $ 286 | $ 285 |
Additional paid-in capital | 96,172 | 95,966 |
Accumulated deficit | (93,597) | (92,405) |
Total stockholders' equity | 2,861 | 3,846 |
Total liabilities and stockholders' equity | $ 4,574 | $ 5,730 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
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 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 28,585,496 | 28,516,163 |
Common stock, shares outstanding | 28,585,496 | 28,516,163 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue: | ||
Product revenue | $ 10,272 | $ 9,880 |
Other revenue | 41 | 56 |
Total revenue | 10,313 | 9,936 |
Operating expense: | ||
Cost of revenue | 7,199 | 7,105 |
Gross profit | 3,114 | 2,831 |
Research and development expense | 1,273 | 1,338 |
Selling, general and administrative expense | 3,019 | 3,215 |
Loss from operations | (1,178) | (1,722) |
Interest income | 1 | |
Interest expense | (14) | (6) |
Other, net | 0 | 0 |
Loss before provision for income taxes | (1,192) | (1,727) |
Provision for income taxes | 0 | 0 |
Net loss | $ (1,192) | $ (1,727) |
Net loss per share-basic and diluted | $ (0.04) | $ (0.06) |
Weighted average number of basic and diluted common shares outstanding | 28,574,902 | 28,482,256 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Beginning Balance at Dec. 31, 2013 | $ 5,368 | $ 285 | $ 95,761 | $ (90,678) | |
Beginning Balance, Shares at Dec. 31, 2013 | 0 | 28,481,496 | |||
Stock option exercises | $ 10 | 10 | |||
Stock option exercises, Shares | 35,000 | 34,667 | |||
Stock-based compensation | $ 195 | 195 | |||
Net loss | (1,727) | (1,727) | |||
Ending Balance at Dec. 31, 2014 | 3,846 | $ 285 | 95,966 | (92,405) | |
Ending Balance, Shares at Dec. 31, 2014 | 0 | 28,516,163 | |||
Stock option exercises | $ 26 | $ 1 | 25 | ||
Stock option exercises, Shares | 69,000 | 69,333 | |||
Stock-based compensation | $ 181 | 181 | |||
Net loss | (1,192) | (1,192) | |||
Ending Balance at Dec. 31, 2015 | $ 2,861 | $ 286 | $ 96,172 | $ (93,597) | |
Ending Balance, Shares at Dec. 31, 2015 | 0 | 28,585,496 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | ||
Net loss | $ (1,192) | $ (1,727) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation and amortization | 735 | 742 |
Share-based compensation | 182 | 188 |
Changes in assets and liabilities related to operations: | ||
Trade accounts receivable | (119) | (336) |
Other receivables | 1 | |
Inventories | 288 | 26 |
Prepaid expenses and other assets | 120 | (167) |
Accounts payable | (14) | 5 |
Accrued expenses | (240) | 87 |
Net cash used in operating activities | (240) | (1,181) |
Investing activities: | ||
Acquisition of equipment and leasehold improvements | (280) | (216) |
Payment of accounts payable incurred for the purchase of equipment and leasehold improvements | (8) | (23) |
Net cash used in investing activities | (288) | (239) |
Financing activities: | ||
Principal payment on capital leases | (85) | (34) |
Proceeds from sale of investment | 30 | |
Proceeds from exercise of stock options | 26 | 10 |
Net cash (used in) provided by financing activities | (59) | 6 |
Decrease in cash and cash equivalents | (587) | (1,414) |
Cash and cash equivalents at beginning of period | 1,862 | 3,276 |
Cash and cash equivalents at end of period | 1,275 | 1,862 |
Supplemental cash flow information: | ||
Interest paid | 14 | 6 |
Supplemental non-cash investing and financing activities: | ||
Accounts payable incurred for the purchase of equipment and leasehold improvements | 37 | 8 |
Capital lease obligations incurred in the purchase of equipment | $ 132 | $ 184 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | (1) Description of Business Nanophase Technologies Corporation (“Nanophase”, “Company”, “we”, “our”, or “us”) is an advanced materials and applications developer and commercial manufacturer with an integrated family of nanomaterial and related technologies. We produce engineered nano and larger, sub-micron, materials for use in a variety of diverse markets: personal care including sunscreens, architectural coatings, industrial coating applications, 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 our 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 the surface finishing technologies (polishing) and energy-management areas that have been taken to potential customers, and for which we are experiencing early-stage, accelerating revenue growth. We also developed a new coating which we used to launch new products in personal care, beginning in 2015. 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 Statements of Operations, as it does not represent revenue directly from our nanocrystalline materials. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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 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, Asset Retirement Obligations Activity in the asset retirement obligation account for the years ended December 31, is as follows: 2015 2014 Balance, beginning $ 166 $ 160 Accretion of liability due to passage of time 6 6 Amortization of asset due to passage of time — — Balance, ending $ 172 $ 166 Financial Instruments We follow ASC Topic 820, Fair Value Measurements and Disclosures Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, along with the promissory note with no related borrowings described in Note 3, and any borrowings on the working capital line of credit described in Note 3. 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, 2015 and 2014. 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 may include revenue from technology license fees and paid development projects. Technology license fees and paid development projects 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. 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 2012 to 2014, which statutes expire in 2016 to 2018, 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, 2015 and 2014, 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 2015 and 2014 because the effect of these securities is anti-dilutive, and because the impact on a per share basis would not be meaningful. New Accounting Pronouncements During May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers During February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) During August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern |
Note and Line of Credit
Note and Line of Credit | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Note and Line of Credit | (3) Note and Line of Credit During July 2014 we entered into a new bank-issued letter of credit and related promissory note for up to $30 in borrowings to support our obligations under our facility lease agreement. We then sold our certificates of deposit. No borrowings have been incurred under this promissory note. Should any borrowings occur in the future, the interest rate would be the prime rate plus 1%, with the bank having the right to “set off” or apply unpaid balances against our checking account if we fail to meet our obligations under any borrowings under the note. It is our intention to renew this note annually, for as long as we need to pursuant to the terms of our facility lease agreement. Because there were no amounts outstanding on the note at any time during 2015 or 2014, we have recorded no related liability on our balance sheet. During March 2015, we entered into a Business Loan Agreement (the “Line of Credit Agreement”) with Libertyville Bank and Trust Company, a Wintrust Community Bank (“Libertyville”), our primary bank. This Line of Credit Agreement was subsequently amended on April 13, 2015. Under the Line of Credit Agreement, as amended, Libertyville will provide a maximum of $300, or 75% of our eligible accounts receivable, whichever is less, of revolving credit, collateralized by a senior priority lien on our accounts receivable, inventory, equipment, general intangibles and fixtures. Interest on any borrowings would be the prime rate at the time plus 1%. Availability to draw on the line requires us to have at least $1 million in cash, including any amounts borrowed, at Libertyville on the date of any advance. Advances may only occur at the beginning or end of a fiscal quarter and must be repaid in full within five days of the advance. The Line of Credit Agreement was to expire on March 4, 2016, but during March 2016 was subsequently extended until March 4, 2017. No borrowing on this line was outstanding on December 31, 2015. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | (4) Inventories Inventories consist of the following: As of December 31, 2015 2014 Raw materials $ 184 $ 173 Finished goods 530 829 714 1,002 Allowance for excess quantities (52 ) (52 ) $ 662 $ 950 |
Equipment and Leasehold Improve
Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 Machinery and equipment $ 14,562 $ 14,095 Office equipment 778 766 Office furniture 110 110 Leasehold improvements 4,789 4,760 Construction in progress 11 70 20,250 19,801 Less: Accumulated depreciation and amortization (18,389 ) (17,663 ) $ 1,861 $ 2,138 Depreciation expense was $726 and $734, for the years ended December 31, 2015 and 2014, respectively. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Lease Commitments | (6) Lease Commitments We lease our operating facilities under operating leases. During November 2014 we entered into a Second Lease Amendment related to our primary facility in Romeoville, Illinois, extending the term of the lease through December 31, 2019 (with our option to extend the term for an additional five-year period). The current monthly rent on this lease amounts to $25. We lease our Burr Ridge, Illinois, facility under an agreement most recently extended during September 2010, which extended the term through September 2014 (we have since exercised our final tenant option to extend the term through September 2017). The current monthly rent on this lease amounts to $14. 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, as well as the remaining lease payments under capital leases as referenced below: Year ending December 31: Operating Capital 2016 $ 645 $ 105 2017 556 100 2018 433 27 2019 444 16 2020 413 11 Thereafter 1,752 — Total minimum payments required: $ 4,243 $ 259 The remaining payments under capital leases include principal of $238 and interest of $21. Rent expense, including real estate taxes, under these leases amounted to $588 and $658, for the years ended December 31, 2015 and 2014, respectively. On December 31, 2015 equipment under capital leases had a cost of $316 with accumulated depreciation of $29, compared to $272 and $29, respectively, on December 31, 2014. Principal and interest payments are due monthly under the capital lease obligations through August 2020. We entered into three new capital leases during 2015 for $132 and 3 to 5 year durations (through August 2020). We entered into one new capital lease during November 2014 for $184 and a three year duration. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | (7) Accrued Expenses Accrued expenses consist of the following: As of December 31, 2015 2014 Accrued payroll and related expenses $ 108 $ 259 Other 168 154 $ 276 $ 413 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (8) Income Taxes Our net income tax provision, including both current and deferred, related to U.S. federal and state income taxes, is none. 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, 2015 and 2014 is as follows: 2015 2014 Income tax credit at statutory rates $ (405 ) $ (587 ) Nondeductible expenses 3 3 State income tax, net of federal benefits (61 ) (88 ) Other (3 ) 3 Increase in valuation allowance 466 669 $ — $ — 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, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 31,590 $ 31,252 Inventory and other allowances 28 29 Charitable contribution carryforwards 6 6 Excess (tax) book depreciation 709 601 Excess (tax) book amortization 67 62 Share-based compensation 1,396 1,326 Other accrued costs 225 279 Total deferred tax assets 34,021 33,555 Less: Valuation allowance (34,021 ) (33,555 ) Deferred income taxes $ — $ — The valuation allowance increased approximately $0.5 million and $0.7 million for the years ended December 31, 2015 and 2014, respectively (with no expiring net operating loss carryforwards and credits for either period; a capital loss carryforward of approximately $0.3 million expired during 2014) 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, 2015, the amount subject to limitations has not yet been determined. We have net operating loss carryforwards for tax purposes of approximately $81 million on December 31, 2015, which expire between 2018 and 2035. 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, 2015 | |
Equity [Abstract] | |
Capital Stock | (9) Capital Stock As of December 31, 2015 and 2014, we had 24,088 authorized but unissued shares of preferred stock. In addition, as of December 31, 2015, 445,000 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, 2015 | |
Disclosure of Compensation Related Costs, Share-based 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 As of December 31, 2015, there was approximately $204 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 1.7 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, 2015 2014 Weighted-average risk-free interest rates: 1.7 % 2.0 % Dividend yield: 0.00 % 0.00 % Weighted-average expected life of the option: 7 years 7 years Weighted-average expected stock price volatility: 95 % 95 % Weighted-average fair value of the options granted: $ 0.36 $ 0.42 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 2015 and 2014 grants is based on the daily market rate changes of our stock going back to January 1, 2007. The shares granted in fiscal 2015 and 2014 had a vesting period of three years and a contractual life of 10 years. Forfeitures were estimated at 4% and 4% for the years ended December 31, 2015 and 2014, 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, 2015: (rounded) Weighted Weighted Aggregate Options Shares Outstanding on January 1, 2015 2,440,000 $ 1.15 Granted 461,000 $ 0.44 Exercised (69,000 ) $ 0.37 Forfeited or expired (258,000 ) $ 2.20 Outstanding on December 31, 2015 2,574,000 $ 0.95 5.5 $ 41 Exercisable on December 31, 2015 1,656,000 $ 1.21 5.5 $ 41 Shares available for grant 445,000 The aggregate intrinsic value in the table above is based on our closing stock price of $0.40 on the last business day for the year ended December 31, 2015. During the years ended December 31, 2015 and 2014, the total intrinsic value of our stock options exercised was $10 and $4, respectively. Cash received for option exercises was $26 and $10 during the years ended December 31, 2015 and 2014, respectively. We had approximately 69,000 options exercised during the year ended December 31, 2015, compared to 35,000 in 2014. 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, 2015 and 2014. 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 years ended December 31, 2015 and 2014. 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, 2015 and 2014, and adjusted to fair value each reporting period. The fair value of the liability on December 31, 2015 and 2014 was less than $1. Restricted Stock As of both December 31, 2015 and 2014, we did not have any unvested non-director restricted stock or performance shares outstanding. |
401(k) Profit-Sharing Plan
401(k) Profit-Sharing Plan | 12 Months Ended |
Dec. 31, 2015 | |
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 have made in the past, and may make in the future, maximum contributions of 100% of the first 3% and 50% of the next 2% of the participant’s salary. We made changes to our benefits program and, as part of those changes, discontinued these Company contributions effective January 2014, which resulted in no contributions made during 2015 or 2014. |
Significant Customers and Conti
Significant Customers and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Significant Customers and Contingencies | (12) Significant Customers and Contingencies Revenue from three customers constituted approximately 63%, 7% and 7%, respectively, of our 2015 revenue. Amounts included in accounts receivable on December 31, 2015 relating to these three customers were none and approximately $156 and $240 respectively. Revenue from these three customers constituted approximately 72%, 1% and 6%, respectively, of our 2014 revenue. Amounts included in accounts receivable on December 31, 2014 relating to these three customers were approximately $54, none and none, 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, 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 and credit availability, (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, as well as the descriptions of our Line of Credit Agreement described in Note 3 and the February 2016 sale of shares of our common stock described in Note 14 ) Should events arise that make it appropriate for us to seek additional financing, such additional financing may not be available on acceptable terms or even at all, and any such financing could be dilutive to our stockholders. Such a financing could be necessitated by such things as the loss of one or more significant customers or a significant decline in revenue from those customers, currently unknown capital requirements, new regulatory requirements, the need to meet cash requirements under our BASF agreement to avoid a triggering event, or other circumstances not currently anticipated by us. The failure to obtain sufficient capital may impair or curtail our business plans and under such circumstances may raise doubt regarding our ability to continue as a going concern. |
Business Segmentation and Geogr
Business Segmentation and Geographical Distribution | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Business Segmentation and Geographical Distribution | (13) Business Segmentation and Geographical Distribution Revenue from international sources approximated $1,393 and $906 for the years ended December 31, 2015 and 2014, respectively. As part of our revenue from international sources, we recognized approximately $1,339 in product revenue from a number of German companies, in the aggregate, for the year ended December 31, 2015. Revenue from these same international sources approximated $760 for the year ended December 31, 2014. Our operations comprise a single business segment and all of our long-lived assets are located within the United States. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | (14) Subsequent Events On February 10, 2016, we sold 2.6 million shares of our common stock to our largest investor at $0.38 per share, for proceeds of $988,000. The issuance and sale was exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), under Section 4(a)(2) of the Securities Act and Regulation D thereunder. The investor has the right to demand registration of the shares under the Securities Act after four years, and has certain piggyback registration rights (to include these shares with any other registration) in the interim. No placement agent or related fees were incurred as a result of this transaction. During March 2016, we extended the Line of Credit Agreement as described in Note 3 for one year, to March 4, 2017. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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 |
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, Asset Retirement Obligations Activity in the asset retirement obligation account for the years ended December 31, is as follows: 2015 2014 Balance, beginning $ 166 $ 160 Accretion of liability due to passage of time 6 6 Amortization of asset due to passage of time — — Balance, ending $ 172 $ 166 |
Financial Instruments | Financial Instruments We follow ASC Topic 820, Fair Value Measurements and Disclosures Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, along with the promissory note with no related borrowings described in Note 3, and any borrowings on the working capital line of credit described in Note 3. 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, 2015 and 2014. |
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 may include revenue from technology license fees and paid development projects. Technology license fees and paid development projects 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. 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 2012 to 2014, which statutes expire in 2016 to 2018, 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, 2015 and 2014, 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 2015 and 2014 because the effect of these securities is anti-dilutive, and because the impact on a per share basis would not be meaningful. |
New Accounting Pronouncements | New Accounting Pronouncements During May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers During February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) During August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern |
Share-Based Payments | We follow FASB ASC Topic 718, Share-Based Payments |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Activity in Asset Retirement Obligations | Activity in the asset retirement obligation account for the years ended December 31, is as follows: 2015 2014 Balance, beginning $ 166 $ 160 Accretion of liability due to passage of time 6 6 Amortization of asset due to passage of time — — Balance, ending $ 172 $ 166 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consist of the following: As of December 31, 2015 2014 Raw materials $ 184 $ 173 Finished goods 530 829 714 1,002 Allowance for excess quantities (52 ) (52 ) $ 662 $ 950 |
Equipment and Leasehold Impro24
Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components of Equipment and Leasehold Improvements | Equipment and leasehold improvements consist of the following: As of December 31, 2015 2014 Machinery and equipment $ 14,562 $ 14,095 Office equipment 778 766 Office furniture 110 110 Leasehold improvements 4,789 4,760 Construction in progress 11 70 20,250 19,801 Less: Accumulated depreciation and amortization (18,389 ) (17,663 ) $ 1,861 $ 2,138 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, as well as the remaining lease payments under capital leases as referenced below: Year ending December 31: Operating Capital 2016 $ 645 $ 105 2017 556 100 2018 433 27 2019 444 16 2020 413 11 Thereafter 1,752 — Total minimum payments required: $ 4,243 $ 259 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following: As of December 31, 2015 2014 Accrued payroll and related expenses $ 108 $ 259 Other 168 154 $ 276 $ 413 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 is as follows: 2015 2014 Income tax credit at statutory rates $ (405 ) $ (587 ) Nondeductible expenses 3 3 State income tax, net of federal benefits (61 ) (88 ) Other (3 ) 3 Increase in valuation allowance 466 669 $ — $ — |
Deferred Income Taxes | Significant components of our deferred income taxes consist of the following: As of December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 31,590 $ 31,252 Inventory and other allowances 28 29 Charitable contribution carryforwards 6 6 Excess (tax) book depreciation 709 601 Excess (tax) book amortization 67 62 Share-based compensation 1,396 1,326 Other accrued costs 225 279 Total deferred tax assets 34,021 33,555 Less: Valuation allowance (34,021 ) (33,555 ) Deferred income taxes $ — $ — |
Stock Options and Stock Grants
Stock Options and Stock Grants (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of 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, 2015 2014 Weighted-average risk-free interest rates: 1.7 % 2.0 % Dividend yield: 0.00 % 0.00 % Weighted-average expected life of the option: 7 years 7 years Weighted-average expected stock price volatility: 95 % 95 % Weighted-average fair value of the options granted: $ 0.36 $ 0.42 |
Summary of Option Activity | The following table summarizes the option activity for our employees and directors during the year ended December 31, 2015: (rounded) Weighted Weighted Aggregate Options Shares Outstanding on January 1, 2015 2,440,000 $ 1.15 Granted 461,000 $ 0.44 Exercised (69,000 ) $ 0.37 Forfeited or expired (258,000 ) $ 2.20 Outstanding on December 31, 2015 2,574,000 $ 0.95 5.5 $ 41 Exercisable on December 31, 2015 1,656,000 $ 1.21 5.5 $ 41 Shares available for grant 445,000 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Line Items] | ||
Cash and cash equivalents description | 90 days or less | |
Credit items after shipment and invoicing | 30 days | |
Investment related borrowings | $ 0 | |
Financial assets or liabilities at fair value | $ 0 | $ 0 |
Threshold percentage | 50.00% | |
Liability for unrecognized tax benefits | $ 0 | $ 0 |
Anti-dilutive securities excluded from computation of earnings per share | 0 | 0 |
Minimum [Member] | ||
Accounting Policies [Line Items] | ||
Open tax years for jurisdictions | 2,012 | |
Income tax statutes expiration year | 2,016 | |
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 | 2,014 | |
Income tax statutes expiration year | 2,018 | |
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 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Schedule of Activity in Asset Retirement Obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Balance, beginning | $ 166 | $ 160 |
Accretion of liability due to passage of time | 6 | 6 |
Amortization of asset due to passage of time | 0 | 0 |
Balance, ending | $ 172 | $ 166 |
Note and Line of Credit - Addit
Note and Line of Credit - Additional Information (Detail) - USD ($) | Apr. 13, 2015 | Mar. 28, 2016 | Jul. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | |||||
Investment amount outstanding | $ 0 | $ 0 | |||
Investment related liability | 0 | ||||
Libertyville Bank and Trust Company [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 300,000 | ||||
Line of credit facility maximum borrowing capacity as percentage of accounts receivable | 75.00% | ||||
Minimum amount of cash required on advances | $ 1,000,000 | ||||
Line of credit facility repayment period | 5 days | ||||
Line of credit facility, expiration date | Mar. 4, 2016 | ||||
Line of credit facility, borrowing | $ 0 | ||||
Libertyville Bank and Trust Company [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, extended expiration date | Mar. 4, 2017 | ||||
Libertyville Bank and Trust Company [Member] | Prime Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Variable interest rate | 1.00% | ||||
Letter of Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Letter of credit and related promissory note | $ 30,000 | ||||
Borrowings incurred | $ 0 | ||||
Interest rate | 1.00% |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 184 | $ 173 |
Finished goods | 530 | 829 |
Inventory gross, Total | 714 | 1,002 |
Allowance for excess quantities | (52) | (52) |
Inventories net, Total | $ 662 | $ 950 |
Equipment and Leasehold Impro33
Equipment and Leasehold Improvements - Components of Equipment and Leasehold Improvements (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 20,250 | $ 19,801 |
Less: Accumulated depreciation and amortization | (18,389) | (17,663) |
Property, Plant and Equipment, Net, Total | 1,861 | 2,138 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 14,562 | 14,095 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 778 | 766 |
Office Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 110 | 110 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 4,789 | 4,760 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 11 | $ 70 |
Equipment and Leasehold Impro34
Equipment and Leasehold Improvements - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Equipment And Leasehold Improvements [Abstract] | ||
Depreciation expense | $ 726 | $ 734 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2014USD ($)Lease | Dec. 31, 2015USD ($)LeaseRenewals | Dec. 31, 2014USD ($) | |
Operating Leased Assets [Line Items] | |||
Rent Expense | $ 588,000 | $ 658,000 | |
Cost of equipment under capital lease | 316,000 | 272,000 | |
Accumulated depreciation | $ 29,000 | $ 29,000 | |
Number of capital leases | Lease | 1 | 3 | |
Capital lease term | 3 years | ||
Payments to acquire capital lease | $ 184,000 | $ 132,000 | |
Capital leases, principal amount | 238,000 | ||
Capital leases, interest | $ 21,000 | ||
Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Capital lease term | 3 years | ||
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Capital lease term | 5 years | ||
Romeoville Illinois [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease number of renewals | Renewals | 1 | ||
Operating lease extension period | 5 years | ||
Monthly rent on lease amounts | $ 25,000 | ||
Burr Ridge Facility [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease number of renewals | Renewals | 1 | ||
Monthly rent on lease amounts | $ 14,000 | ||
Offsite Warehouse [Member] | |||
Operating Leased Assets [Line Items] | |||
Monthly rent on lease amounts | $ 5,000 |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
Operating leases, 2016 | $ 645 |
Operating leases, 2017 | 556 |
Operating leases, 2018 | 433 |
Operating leases, 2019 | 444 |
Operating leases, 2020 | 413 |
Operating leases, Thereafter | 1,752 |
Operating leases, Total minimum payments required: | 4,243 |
Capital leases, 2016 | 105 |
Capital leases, 2017 | 100 |
Capital leases, 2018 | 27 |
Capital leases, 2019 | 16 |
Capital leases, 2020 | 11 |
Capital leases, Thereafter | 0 |
Capital leases, Total minimum payments required: | $ 259 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accrued payroll and related expenses | $ 108 | $ 259 |
Other | 168 | 154 |
Total | $ 276 | $ 413 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ 0 | $ 0 | |
Increase in valuation allowance | 500,000 | 700,000 | |
Valuation allowance for operating loss and tax credit carryforwards | 0 | 0 | |
Capital loss carryforwards | $ 300,000 | ||
Capital loss carryforwards expiration period | 2,014 | ||
Net operating loss carryforwards | $ 81,000,000 | ||
Capital loss carryforwards expiration period start | 2,018 | ||
Capital loss carryforwards expiration period end | 2,035 | ||
Period for suspension of net operating loss carryforwards | 4 years | ||
Extension of the term of net loss carryforwards | 4 years |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense By Applying Federal Income Tax Rate to Loss Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Income tax credit at statutory rates | $ (405) | $ (587) |
Nondeductible expenses | 3 | 3 |
State income tax, net of federal benefits | (61) | (88) |
Other | (3) | 3 |
Increase in valuation allowance | 466 | 669 |
Total | $ 0 | $ 0 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 31,590 | $ 31,252 |
Inventory and other allowances | 28 | 29 |
Charitable contribution carryforwards | 6 | 6 |
Excess (tax) book depreciation | 709 | 601 |
Excess (tax) book amortization | 67 | 62 |
Share-based compensation | 1,396 | 1,326 |
Other accrued costs | 225 | 279 |
Total deferred tax assets | 34,021 | 33,555 |
Less: Valuation allowance | (34,021) | (33,555) |
Deferred income taxes | $ 0 | $ 0 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - shares | Dec. 31, 2015 | Dec. 31, 2014 |
Capital Stock [Abstract] | ||
Preferred stock, shares authorized | 24,088 | 24,088 |
Authorized, unissued shares of common stock | 445,000 |
Stock Options and Stock Grant42
Stock Options and Stock Grants - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 181,000 | $ 195,000 |
Total unrecognized compensation cost related to nonvested share-based compensation arrangements granted | $ 204,000 | |
Weighted-average period over which unrecognized compensation is expected to be recognized | 1 year 8 months 12 days | |
Vesting period of shares | 3 years | 3 years |
Contractual life | 10 years | 10 years |
Estimated forfeitures | 4.00% | 4.00% |
Dividend yield | 0.00% | 0.00% |
Closing stock price | $ 0.40 | |
Intrinsic value of stock options exercised, total | $ 10,000 | $ 4,000 |
Proceeds from exercise of stock options | $ 26,000 | $ 10,000 |
Stock option exercises, Shares | 69,000 | 35,000 |
Tax benefits from stock options | $ 0 | $ 0 |
Common stock, shares outstanding | 28,585,496 | 28,516,163 |
Stock Appreciation Rights (SARs) [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of the liability | $ 1,000 | $ 1,000 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, shares outstanding | 0 | 0 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, shares outstanding | 0 | 0 |
Stock Options and Stock Grant43
Stock Options and Stock Grants - Schedule of Assumptions Used to Calculate Black-Scholes Option Pricing Model for Stock Options Granted (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Weighted-average risk-free interest rates | 1.70% | 2.00% |
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% | 95.00% |
Weighted-average fair value of the options granted | $ 0.36 | $ 0.42 |
Stock Options and Stock Grant44
Stock Options and Stock Grants - Summary of Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Outstanding, Number, Beginning Balance | 2,440,000 | |
Shares, Granted | 461,000 | |
Stock option exercises, Shares | (69,000) | (35,000) |
Shares, Forfeited or expired | (258,000) | |
Outstanding, Number, Ending Balance | 2,574,000 | 2,440,000 |
Shares, Exercisable | 1,656,000 | |
Shares available for grant | 445,000 | |
Weighted Average Exercise Price per Share, Beginning Balance | $ 1.15 | |
Weighted Average Exercise Price per Share, Granted | 0.44 | |
Weighted Average Exercise Price per Share, Exercised | 0.37 | |
Weighted Average Exercise Price per Share, Forfeited or expired | 2.20 | |
Weighted Average Exercise Price per Share, Ending Balance | 0.95 | $ 1.15 |
Weighted Average Exercise Price per Share, Exercisable | $ 1.21 | |
Weighted Average Remaining Contractual Term, Outstanding | 5 years 6 months | |
Weighted Average Remaining Contractual Term Years, Exercisable | 5 years 6 months | |
Aggregate Intrinsic Value, Outstanding | $ 41 | |
Aggregate Intrinsic Value, Exercisable | $ 41 |
401(k) Profit-Sharing Plan - Ad
401(k) Profit-Sharing Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
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 | $ 0 | $ 0 |
Significant Customers and Con46
Significant Customers and Contingencies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2015USD ($)Customer | Dec. 31, 2014USD ($) | |
Revenue, Major Customer [Line Items] | ||
Number of major customers | Customer | 3 | |
Accounts receivable | $ 507,000 | $ 388,000 |
Customers One [Member] | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable | $ 0 | $ 54,000 |
Customers One [Member] | Customer Concentration Risk [Member] | Sales [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from top customers | 63.00% | 72.00% |
Customers Two [Member] | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable | $ 156,000 | $ 0 |
Customers Two [Member] | Customer Concentration Risk [Member] | Sales [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from top customers | 7.00% | 1.00% |
Customers Three [Member] | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable | $ 240,000 | $ 0 |
Customers Three [Member] | Customer Concentration Risk [Member] | Sales [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue from top customers | 7.00% | 6.00% |
BASF [Member] | ||
Revenue, Major Customer [Line Items] | ||
Supply agreements with BASF Corporation | 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, or (b) of an acceleration of any debt maturity having a principal amount of more than $10 million. | |
Minimum contractual covenant - net earnings previous twelve months | $ 0 | |
Net book value equipment | 115.00% | |
BASF [Member] | Maximum [Member] | ||
Revenue, Major Customer [Line Items] | ||
Cash, cash equivalents and investments, maximum | $ 1,000,000 | |
BASF [Member] | Minimum [Member] | ||
Revenue, Major Customer [Line Items] | ||
Principal amount of debt on maturity, minimum | $ 10,000,000 | |
Original book value of equipment, Minimum | 30.00% |
Business Segmentation and Geo47
Business Segmentation and Geographical Distribution - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)BusinessSegments | Dec. 31, 2014USD ($) | |
Revenue from External Customer [Line Items] | ||
Number of operating segment | BusinessSegments | 1 | |
Non-Domestic Revenue [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from international sources | $ 1,393 | $ 906 |
Non-Domestic Revenue [Member] | Product Revenue [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from international sources | $ 1,339 | $ 760 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Feb. 10, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | |||
Common stock, shares issued | 28,585,496 | 28,516,163 | |
Common stock price per share | $ 0.01 | $ 0.01 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Common stock, shares issued | 2,600,000 | ||
Common stock price per share | $ 0.38 | ||
Proceed from issuance of common stock | $ 988,000 | ||
Minimum period to register common stock held by investors | 4 years | ||
Placement agent and related fees | $ 0 |