Nanophase Technologies (NANX) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 03, 2017
Document And Entity Information [Abstract]
Entity Central Index Key	883,107
Entity Registrant Name	NANOPHASE TECHNOLOGIES Corp
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Trading Symbol	NANX
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		31,275,330
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 1,070	$ 1,779
Trade accounts receivable, less allowance for doubtful accounts of $5 on September 30, 2017 and December 31, 2016	1,581	434
Inventories, net	876	772
Prepaid expenses and other current assets	389	442
Total current assets	3,916	3,427
Equipment and leasehold improvements, net	1,425	1,395
Other assets, net	18	20
Total assets	5,359	4,842
Current liabilities:
Line of Credit	250
Current portion of capital lease obligations	130	107
Accounts payable	972	669
Accrued expenses	759	521
Total current liabilities	2,111	1,297
Long-term portion of capital lease obligations	271	110
Long-term deferred rent	424	466
Asset retirement obligations	183	178
Total long-term liabilities	878	754
Stockholders' equity:
Preferred stock, $.01 par value, 24,088 shares authorized and no shares issued and outstanding
Common stock, $.01 par value, 42,000,000; 31,275,330 and 31,229,996 shares issued and outstanding on September 30, 2017 and December 31, 2016, respectively	313	312
Additional paid-in capital	97,512	97,359
Accumulated deficit	(95,455)	(94,880)
Total stockholders' equity	2,370	2,791
Total liabilities and stockholders' equity	$ 5,359	$ 4,842

BALANCE SHEETS (Unaudited) (Par

BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Trade accounts receivable, less allowance for doubtful accounts	$ 5	$ 5
Preferred stock, par value	$ 0.01	$ .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	$ .01
Common stock, shares authorized	42,000,000	42,000,000
Common stock, shares issued	31,275,330	31,229,996
Common stock, shares outstanding	31,275,330	31,229,996

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Product revenue	$ 2,524	$ 2,510	$ 9,525	$ 8,377
Other revenue	261	11	327	38
Total revenue	2,785	2,521	9,852	8,415
Operating expense:
Cost of revenue	2,200	1,841	6,862	5,766
Gross profit	585	680	2,990	2,649
Research and development expense	494	386	1,354	1,060
Selling, general and administrative expense	725	716	2,185	2,151
Loss from operations	(634)	(422)	(549)	(562)
Interest expense	(9)	(3)	(25)	(11)
Loss before provision for income taxes	(643)	(425)	(574)	(573)
Net loss	$ (643)	$ (425)	$ (574)	$ (573)
Net loss per share - basic and diluted	$ (0.02)	$ (0.01)	$ (0.02)	$ (0.02)
Weighted average number of basic and diluted common shares outstanding	31,239,678	31,211,132	31,234,735	30,805,053

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities:
Net loss	$ (574)	$ (573)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	267	505
Stock compensation expense	140	129
Changes in assets and liabilities related to operations:
Trade accounts receivable	(1,147)	(798)
Inventories	(104)	3
Prepaid expenses and other assets	53	(101)
Accounts payable	333	167
Accrued expenses	166	314
Net cash used in operating activities	(866)	(354)
Investing activities:
Proceeds from disposal of equipment	136
Acquisition of equipment and leasehold improvements	(121)	(102)
Payment of accounts payable incurred for the purchase of equipment and leasehold improvements		(37)
Net cash provided by/(used in) investing activities	15	(139)
Financing activities:
Principal payments on capital leases	(122)	(70)
Proceeds from line of credit	250
Proceeds from common stock issuance		988
Proceeds from exercise of stock options	14	18
Net cash provided by financing activities	142	936
(Decrease)/increase in cash and cash equivalents	(709)	443
Cash and cash equivalents at beginning of period	1,779	1,275
Cash and cash equivalents at end of period	1,070	1,718
Supplemental cash flow information:
Interest paid	24	11
Supplemental non-cash investing and financing activities:
Accounts payable incurred for the purchase of equipment and leasehold improvements	9	$ 5
Capital lease obligations incurred in the purchase of equipment	$ 307

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	(1) Basis of Presentation The accompanying unaudited interim financial statements of Nanophase Technologies Corporation (“Nanophase” or the “Company”, including “we”, “our” or “us”) reflect all adjustments (consisting of normal recurring adjustments) which, in the opinion of management, are necessary for a fair presentation of our financial position and operating results for the interim periods presented. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. These financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2016, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission.

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2017
Description Of Business
Description of Business	(2) Description of Business Nanophase is an advanced materials and applications developer and commercial manufacturer with an integrated family of materials 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 (including solar control), and a variety of surface finishing technologies (polishing) applications, including optics. We have recently expanded our offerings beyond active ingredients to include targeted full formulations of skin care products, marketed and sold by our wholly-owned subsidiary, Solésence ™ LLC (“Solésence” ™), which was created during the fall of 2016. The core of these solutions is a new surface coating technique for the particles that we believe will provide enhanced value to the marketplace. 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. 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. During June 2017, we entered into a series of agreements with Eminess Technologies, Inc. (“ETI”). ETI is an established entity in the polishing area, and we believed ETI could more effectively bring our products to market while allowing us to focus on the launch of Solésence ™ The Company was incorporated in Illinois on November 25, 1989, and became a Delaware corporation in November 1997. Our common stock trades on the OTCQB marketplace under the symbol NANX. While product sales comprise the overwhelming 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.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	(3) Earnings Per Share Earnings Per Share is computed using the Treasury Stock Method. Options to purchase approximately 750,000 and 796,000 shares of common stock that were outstanding as of September 30, 2017 were not included in the computation of earnings per share for the three and nine months ended September 30, 2017, respectively, as the impact of such shares would be both negligible and anti-dilutive. Options to purchase approximately 803,000 and 493,000 shares of common stock that were outstanding as of September 30, 2016 were not included in the computation of earnings per share for the three and nine months ended September 30, 2016, respectively, as the impact of such shares would be both negligible and anti-dilutive.

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Financial Instruments	(4) Financial Instruments We follow the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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 and any borrowings on the working capital line of credit, each described in Note 5. 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 September 30, 2017 or December 31, 2016.

Notes and Line of Credit

Notes and Line of Credit	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Notes and Line of Credit	(5) Notes and Line of Credit During July 2014, we entered into a bank-issued letter of credit and related promissory note for up to $30 in borrowings to support our obligations under our facility lease agreement. 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 at any time during 2017 or 2016, 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 originally to expire on March 4, 2016, but during March 2016 was extended until March 4, 2017. During February 2017, this agreement was further extended to March 2018. We borrowed $250 on September 28, 2017, and repaid it on October 3, 2017. No amount was borrowed on this line on December 31, 2016.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventories	(6) Inventories Inventories consist of the following: September 30, December 31, 2016 Raw materials $ 281 $ 283 Finished goods 616 510 897 793 Allowance for excess inventory quantities (21 ) (21 ) $ 876 $ 772

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	(7) Share-Based Compensation We follow FASB ASC Topic 718, Compensation – Stock Compensation As of September 30, 2017, there was approximately $305 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 2.0 years. Stock Options and Stock Grants During the nine months ended September 30, 2017, 45,334 shares of common stock were issued pursuant to stock option exercises for proceeds of $14. During the nine months ended September 30, 2016, 44,500 shares of common stock were issued pursuant to stock option exercises for proceeds of $18. During the nine months ended September 30, 2017, 507,600 stock options were granted compared to 419,390 stock options granted during the same period in 2016. During the nine months ended September 30, 2017, 44,568 stock options were forfeited compared to 64,900 stock options forfeited during the same period in 2016. We had 3,351,000 stock options outstanding at a weighted average exercise price of $0.79 on September 30, 2017, compared to 2,933,000 stock options outstanding at a weighted average exercise price of $0.81 on December 31, 2016. The following table illustrates the various assumptions used to calculate the Black-Scholes option pricing model for stock options granted during the periods presented: For the three months ended Sept 30, 2017 Sept 30, 2016 Weighted-average risk-free interest rates: — — Dividend yield: — — Weighted-average expected life of the option: — — Weighted-average expected stock price volatility: — — Weighted-average fair value of the options granted: — — For the nine months ended Sept 30, 2017 Sept 30, 2016 Weighted-average risk-free interest rates: 2.1 % 1.4 % Dividend yield: — — Weighted-average expected life of the option: 7 Years 7 Years Weighted-average expected stock price volatility: 94 % 95 % Weighted-average fair value of the options granted: $ 0.55 $ 0.34 As of September 30, 2017, we did not have any unvested restricted stock or performance shares outstanding.

Significant Customers and Conti

Significant Customers and Contingencies	9 Months Ended
	Sep. 30, 2017
Risks and Uncertainties [Abstract]
Significant Customers and Contingencies	(8) Significant Customers and Contingencies Revenue from three customers constituted approximately 58%, 8% and 4%, respectively, of our total revenue for the three months ended September 30, 2017, and 67%, 7% and 4%, respectively, of our total revenue for the nine months ended September 30, 2017. Amounts included in accounts receivable on September 30, 2017 relating to these three customers were approximately $1,078, $222 and $102, respectively. Revenue from these three customers constituted approximately 65%, 4% and 5%, respectively, of our total revenue for the three months ended September 30, 2016, and 69%, 3% and 6%, respectively, of our total revenue for the nine months ended September 30, 2016. Amounts included in accounts receivable on September 30, 2016 relating to these three customers were approximately $784, $69 and $122, respectively. The loss of one of these significant customers, a significant decrease in revenue from one or more of these 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 I, Item 2 of this Form 10-Q for a further discussion, as well as the description of our Line of Credit Agreement described in Note 5) to operate our business during the remainder of 2017. 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 it 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. 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, the continuing costs associated with launching Solésence ™, 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	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Business Segmentation and Geographical Distribution	(9) Business Segmentation and Geographical Distribution Revenue from international sources approximated $276 and $956 for the three and nine months ended September 30, 2017, respectively, compared to $143 and $618 for the same periods in 2016. All of this revenue was product revenue. Our operations comprise a single business segment and all of our long-lived assets are located within the United States.

Recently Adopted and New Accoun

Recently Adopted and New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recently Adopted and New Accounting Pronouncements	(10) Recently Adopted and 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 March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation - Stock Compensation

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories consist of the following: September 30, December 31, 2016 Raw materials $ 281 $ 283 Finished goods 616 510 897 793 Allowance for excess inventory quantities (21 ) (21 ) $ 876 $ 772

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
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 stock options granted during the periods presented: For the three months ended Sept 30, 2017 Sept 30, 2016 Weighted-average risk-free interest rates: — — Dividend yield: — — Weighted-average expected life of the option: — — Weighted-average expected stock price volatility: — — Weighted-average fair value of the options granted: — — For the nine months ended Sept 30, 2017 Sept 30, 2016 Weighted-average risk-free interest rates: 2.1 % 1.4 % Dividend yield: — — Weighted-average expected life of the option: 7 Years 7 Years Weighted-average expected stock price volatility: 94 % 95 % Weighted-average fair value of the options granted: $ 0.55 $ 0.34

Description of Business (Detail

Description of Business (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Jun. 30, 2017	Sep. 30, 2017
Sale of equipment		$ 136
Eminess Technologies [Member}
Sale of equipment	$ 36
Payment received for development of dispersion capabilities	$ 250

Earnings Per Share (Details Nar

Earnings Per Share (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Stock Options [Member]
Antidilutive securities	750,000	803,000	796,000	493,000

Notes and Line of Credit (Detai

Notes and Line of Credit (Detail Narratives) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Jul. 31, 2014
Proceeds from line of credit	$ 250
Letter of Credit [Member]
Letter of credit and related promissory note		$ 30
Basis spread variable interest rate	1.00%
Variable interest rate basis	Prime rate
Line of Credit [Member]
Basis spread variable interest rate	1.00%
Variable interest rate basis	Prime rate
Line of credit facility, maximum borrowing capacity	$ 300
Borrowing capacity as percentage of accounts receivable	75.00%
Facility, expiration date	Mar. 31, 2018
Line of Credit [Member] | Greater than [Member]
Minimum amount of cash on hand before advance is given	$ 1,000

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 281	$ 283
Finished goods	616	510
Inventory gross, Total	897	793
Allowance for excess inventory quantities	(21)	(21)
Total	$ 876	$ 772

Share-Based Compensation (Detai

Share-Based Compensation (Detail Narratives) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based compensation expense	$ 45	$ 41	$ 140	$ 129
Total unrecognized compensation cost related to nonvested share-based compensation arrangements granted	$ 305		$ 305
Weighted-average period over which unrecognized compensation is expected to be recognized			2 years
Common stock issued pursuant to option exercises (shares)			45,334	44,500
Proceeds from exercise of stock options			$ 14	$ 18
Stock options granted			507,600	419,390
Stock options forfeited			44,568	64,900
Stock options outstanding, end of period	3,351,000		3,351,000		2,933,000
Weighted average exercise price	$ 0.79		$ 0.79		$ 0.81

Share-Based Compensation (Det23

Share-Based Compensation (Details) - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted-average risk-free interest rates	2.10%	1.40%
Dividend yield	0.00%	0.00%
Weighted-average expected life of the option	7 years	7 years
Weighted-average expected stock price volatility	94.00%	95.00%
Weighted-average fair value of the options granted	$ .55	$ .34

Significant Customers and Con24

Significant Customers and Contingencies (Detail Narratives) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)
Number of major customers	3	3	3	3
Accounts receivable	$ 1,581		$ 1,581
Customers One [Member]
Accounts receivable	$ 1,078	$ 784	$ 1,078	$ 784
Customers One [Member] | Customer Concentration Risk [Member] | Sales [Member]
Revenue from top customers	58.00%	65.00%	67.00%	69.00%
Customers Two [Member]
Accounts receivable	$ 222	$ 69	$ 222	$ 69
Customers Two [Member] | Customer Concentration Risk [Member] | Sales [Member]
Revenue from top customers	8.00%	4.00%	7.00%	3.00%
Customers Three [Member]
Accounts receivable	$ 102	$ 122	$ 102	$ 122
Customers Three [Member] | Customer Concentration Risk [Member] | Sales [Member]
Revenue from top customers	4.00%	5.00%	4.00%	6.00%
BASF [Member]
Supply Agreement			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.
Equipment sale - net book value equipment and upgrades	115.00%		115.00%
Equipment sale - original book value of equipment and upgrades	30.00%		30.00%
Equipment sale - net book value equipment	115.00%		115.00%
BASF [Member] | Greater than [Member]
Accelerated debt maturity - principal amount debt	$ 10,000		$ 10,000
BASF [Member] | Less than [Member]
Cash, cash equivalents and investments	$ 1,000		$ 1,000

Business Segmentation and Geo25

Business Segmentation and Geographical Distribution (Detail Narratives) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)
Number of business segments			1
Non-Domestic Revenue [Member]
Revenue from international sources	$ 276	$ 143	$ 956	$ 618