Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 19, 2018 | |
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, 2018 | |
Trading Symbol | NANX | |
Current Fiscal Year End Date | --12-31 | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 33,911,792 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,034 | $ 1,955 |
Trade accounts receivable, less allowance for doubtful accounts of $5 on September 30, 2018 and December 31, 2017 | 1,917 | 1,115 |
Inventories, net | 2,091 | 1,385 |
Prepaid expenses and other current assets | 255 | 169 |
Total current assets | 5,297 | 4,624 |
Equipment and leasehold improvements, net | 1,761 | 1,624 |
Other assets, net | 16 | 18 |
Total assets | 7,074 | 6,266 |
Current liabilities: | ||
Line of credit | 500 | 300 |
Current portion of capital lease obligations | 197 | 143 |
Accounts payable | 1,916 | 1,038 |
Accrued expenses | 980 | 543 |
Total current liabilities | 3,593 | 2,024 |
Long-term portion of capital lease obligations | 496 | 416 |
Long-term deferred rent | 361 | 410 |
Asset retirement obligations | 189 | 184 |
Total long-term liabilities | 1,046 | 1,010 |
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 shares authorized;33,911,792 shares issued and outstanding on September 30, 2018 and 33,847,793 on December 31, 2017 | 339 | 338 |
Additional paid-in capital | 98,737 | 98,563 |
Accumulated deficit | (96,641) | (95,669) |
Total stockholders' equity | 2,435 | 3,232 |
Total liabilities and stockholders' equity | $ 7,074 | $ 6,266 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5 | $ 5 |
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 | 42,000,000 | 42,000,000 |
Common stock, shares issued | 33,911,792 | 33,847,793 |
Common stock, shares outstanding | 33,911,792 | 33,847,793 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue: | ||||
Total revenue | $ 4,022 | $ 2,785 | $ 11,036 | $ 9,852 |
Operating expense: | ||||
Cost of revenue | 2,965 | 2,200 | 8,164 | 6,862 |
Gross profit | 1,057 | 585 | 2,872 | 2,990 |
Research and development expense | 416 | 494 | 1,513 | 1,354 |
Selling, general and administrative expense | 765 | 725 | 2,299 | 2,185 |
Loss from operations | (124) | (634) | (940) | (549) |
Interest expense | 12 | 9 | 32 | 25 |
Other, net | ||||
Loss before provision for income taxes | (136) | (643) | (972) | (574) |
Provision for income taxes | ||||
Net Loss | $ (136) | $ (643) | $ (972) | $ (574) |
Net income/(loss) per basic shares | $ 0 | $ (0.02) | $ (0.03) | $ (0.02) |
Weighted average number of basic common shares outstanding | 33,879,097 | 31,239,678 | 33,858,184 | 31,234,735 |
Net income/(loss) per diluted share | $ 0 | $ (0.02) | $ (0.03) | $ (0.02) |
Weighted average number of diluted common shares outstanding | 33,879,097 | 31,239,678 | 33,858,184 | 31,234,735 |
Product Revenue [Member] | ||||
Revenue: | ||||
Total revenue | $ 3,998 | $ 2,524 | $ 10,908 | $ 9,525 |
Other Revenue [Member] | ||||
Revenue: | ||||
Total revenue | $ 24 | $ 261 | $ 128 | $ 327 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating activities: | ||
Net loss | $ (972) | $ (574) |
Adjustment to reconcile net income loss to net cash used in operating activities: | ||
Depreciation and amortization | 239 | 267 |
Stock compensation expense | 146 | 140 |
Changes in assets and liabilities related to operations: | ||
Trade accounts receivable | (802) | (1,147) |
Inventories | (706) | (104) |
Prepaid expenses and other assets | (84) | 53 |
Accounts payable | 872 | 333 |
Accrued expenses | 386 | 166 |
Net cash used in operating activities | (921) | (866) |
Investing activities: | ||
Proceeds from disposal of equipment | 136 | |
Acquisition of equipment and leasehold improvements | (115) | (121) |
Net cash (used in) provided by investing activities | (115) | 15 |
Financing activities: | ||
Principal payments on capital leases | (114) | (122) |
Proceeds from line of credit | 1,200 | 250 |
Payments on line of credit | (1,000) | |
Proceeds from exercise of stock options and sale of common stock | 29 | 14 |
Net cash provided by financing activities | 115 | 142 |
Decrease in cash and cash equivalents | (921) | (709) |
Cash and cash equivalents at beginning of period | 1,955 | 1,779 |
Cash and cash equivalents at end of period | 1,034 | 1,070 |
Supplemental cash flow information: | ||
Interest paid | 32 | 24 |
Supplemental non-cash investing activities: | ||
Accounts payable incurred for the purchase of equipment and leasehold improvements | 6 | 9 |
Proceeds from capital leases | $ 248 | $ 307 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The accompanying unaudited consolidated condensed interim financial statements of Nanophase Technologies Corporation (“Nanophase” or the “Company”, including “we”, “our” or “us”) along with its wholly-owned subsidiary, Solésence®, 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, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 or any interim period. These financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2017, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission. |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2018 | |
Description Of Business | |
Description of Business | (2) Description of Business Nanophase is a leader in advanced materials technologies, with its primary strategic focus being in developing and providing engineered solutions for various applications of micromaterials (“nano” and “non-nano” in scale) for use in protecting human skin from the harmful and damaging effects of the sun. We also produce a variety of materials for use in diverse markets other than those using our materials as active ingredients for sun protection. These other markets include: industrial coatings applications, abrasion-resistant additives, medical diagnostics, and a variety of surface finishing (polishing) applications, including optics. We have 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. 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 advanced materials to various end-use applications manufacturers, and our Solésence® solutions to cosmetics and skin care brands. Recently developed technologies have made certain new products possible and opened potential new markets. During 2015 we were granted a patent on a new type of particle surface treatment (coating), which became the cornerstone of our new product development in personal care, with first revenue recognized during 2016. In addition, through the creation of our Solésence®, LLC subsidiary, we utilize this particle surface treatment to manufacture and sell fully developed solutions to targeted customers in the cosmetics and skin care industry, in addition to the additives we have traditionally sold in the personal care area. 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 materials or fully formulated products. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | (3) Revenues On January 1, 2018, we adopted Accounting Standards Updates (“ASU”) 2014-09 and 2015-14, Revenue from Contract with Customers (Topic 606) completed Revenues are recognized at a point in time, typically when control of the promised goods is transferred to customers, in an amount that reflects the consideration we expect to receive in exchange for those goods. We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses. Customers’ deposits, deferred revenue and other receipts are deferred and recognized when the revenue is realized and earned. Cash payments to customers are classified as reductions of revenue in our statements of operations. We do not disclose the value of the unsatisfied performance obligations for contracts with an original expected length of one year or less or contracts for which we recognize revenue that we have the right to invoice for goods completed. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | (4) Earnings (Loss) Per Share Earnings (Loss) Per Share is computed using the Treasury Stock Method. Options to purchase approximately 1,119,000 and 820,000 shares of common stock that were outstanding as of September 30, 2018 for the three and nine months ended September 30, 2018, respectively, were not included in the computation of diluted earnings (loss) per share, as the impact of such shares would be anti-dilutive. 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 loss per share for the three and nine months ended September 30, 2017, respectively, as the impact of such shares would be anti-dilutive. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | (5) Financial Instruments We follow FASB ASC 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 a promissory note with no related borrowings, any borrowings on the LB&T working capital line of credit, each described in Note 6. Subsequent to September 30, 2018, the Company has secured a term loan and a revolving loan, each described in Note 6. 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, 2018 or December 31, 2017. |
Notes and Lines of Credit
Notes and Lines of Credit | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Notes and Lines of Credit | (6) Notes and Lines 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 2018 or 2017, 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 (“LB&T”), our primary bank. This Line of Credit Agreement was subsequently amended on April 13, 2015 and was extended on each of March 4, 2016 and February 14, 2017. Under the Line of Credit Agreement, as amended, LB&T provided a maximum of $300 or 75% of our eligible accounts receivable, whichever was less, of revolving credit, collateralized by a senior priority lien on our accounts receivable, inventory, equipment, general intangibles and fixtures. Interest on any borrowings was the prime rate at the time plus 1%. Availability to draw on the line required us to have at least $1 million in cash, including any amounts borrowed, at LB&T on the date of any advance. Advances could only occur at the beginning or end of a fiscal quarter and had to be repaid in full within five days of the advance. Borrowings on this line were $300 on December 31, 2017. These borrowings were repaid in January 2018. The Line of Credit Agreement expired on March 4, 2018. On March 26, 2018, we executed a new Business Loan Agreement (the “New Line of Credit Agreement”), dated as of March 4, 2018, with LB&T, which replaces the Line of Credit Agreement with LB&T that expired on March 4, 2018. Under the New Line of Credit Agreement, LB&T will provide a maximum of (i) $500 or (ii) two times the sum of (a) 75% our eligible accounts receivables and (b) our cash deposited with LB&T, whichever is less, of revolving credit to us, collateralized by a senior priority lien on our accounts receivables, inventory, equipment, general intangibles and fixtures. Interest is payable monthly on any advances at a floating interest rate of the prime rate at the time plus 1%. We must have $1 million in cash, inclusive of the borrowed amount, at LB&T 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 business days of the advance. The New Line of Credit Agreement expires in March 2019. While the New Line of Credit Agreement is in effect, we cannot, among other things, engage in any business activities substantially different than those in which we are presently engaged, and there are limitations imposed on our ability to, among other things, incur additional indebtedness for borrowed money, including capital leases, sell, transfer, mortgage, assign, pledge, lease or grant a security interest in or encumber any of our assets, sell with recourse any of our accounts other than to LB&T, cease operations, merge, transfer, acquire or consolidate with any other entity, change our name, dissolve or transfer or sell collateral outside the ordinary course of business, pay any cash dividends, loan, invest in or advance money or assets to any other person or entity, purchase, create or acquire any interest in any other entity, or incur any obligation as a surety or guarantor other than in the ordinary course of business, in each case without LB&T’s prior written consent. We borrowed $500 on this line on September 28, 2018 and repaid it on October 1st, 2018. The amount outstanding on the loan was $300 on December 31, 2017 which was paid in full on January 9, 2018. On November 19, 2018, we entered into a Business Loan Agreement (the “Master Agreement”) with Beachcorp, LLC. The Master Agreement relates to two loan facilities, each evidenced by a separate promissory note dated as of November 16, 2018: a term loan to the Company of up to $500 to be disbursed in a single advance (the “Term Loan”) with a fixed annual interest rate of 8.25%, payable quarterly, accruing from the date of such advance and with principal due on December 31, 2020; and an asset-based revolving loan facility for the Company of up to $2,000 (the “Revolver Facility”), with floating interest accruing at the prime rate plus 3% (8.25% minimum) per year, with a borrowing base consisting of qualified accounts receivable of the Company, and with all principal and accrued interest due March 31, 2020. The Term Loan and Revolver Facility are secured by all the unencumbered assets of the Company and subordinated to LB&T’s secured interest under the New Line of Credit Agreement. The Master Agreement substantially restricts the Company’s ability to incur additional indebtedness during the terms of both the Term Loan and the Revolver Facility. As of the date of this filing, there were no amounts borrowed on either of the loans. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | (7) Inventories Inventories consist of the following: September 30, 2018 December 31, 2017 Raw materials $ 1,086 $ 543 Finished goods 1,026 863 2,112 1,406 Allowance for excess inventory quantities (21 ) (21 ) $ 2,091 $ 1,385 During the three months ended March 31, 2018, $246 was reclassified from Prepaid Expenses to Raw Materials. For comparison purposes, $246 has been reclassified from Prepaid Expenses to Raw Materials as of December 31, 2017 in the table above. Our balance sheet as of December 31, 2017 has also been updated to reflect this reclassification. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | (8) Share-Based Compensation We follow , Compensation – Stock Compensation , in which compensation expense is recognized only for share-based payments expected to vest. We recognized compensation expense related to stock options of $58 and $146 for the three and nine months ended September 30, 2018, respectively, compared to $45 and $140 for the three and nine months ended September 30, 2017, respectively. As of September 30, 2018, there was approximately $449 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under our stock option plans. That cost is expected to be recognized over a remaining weighted-average period of 2.2 years. Stock Options and Stock Grants During the nine months ended September 30, 2018, 63,999 shares of common stock were issued pursuant to stock option exercises for proceeds of $29,000. During the nine months ended September 30, 2017, 45,334 shares of common stock were issued pursuant to stock option exercises for proceeds of $14,000. During the nine months ended September 30, 2018, 570,500 options were granted compared to the 507,600 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 nine months ended September 30, 2018 September 30, 2017 Weighted-average risk-free interest rates: 2.9% 2.1% Dividend yield: - - Weighted-average expected life of the option: 7 years 7 years Weighted-average expected stock price volatility: 94% 94% Weighted-average fair value of the options granted: $0.64 $0.55 As of September 30, 2018, we did not have any unvested restricted stock or performance shares outstanding. No stock options were granted in the three-month periods end September 30, 2018 and 2017. |
Significant Customers and Conti
Significant Customers and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Significant Customers and Contingencies | (9) Significant Customers and Contingencies Revenue from our three largest customers constituted approximately 74%, 12% and 4%, respectively, of our total revenue for the three months ended September 30, 2018, and approximately 74%, 8% and 4%, respectively, of our total revenue for the nine months ended September 30, 2018. Amounts included in accounts receivable on September 30, 2018 relating to these three customers were approximately $1,170, $388 and $149, respectively. Revenue from these three customers constituted approximately 58%, 0% and 8%, respectively, of our total revenue for the three months ended September 30, 2017, and approximately 67%, 0%, and 7% 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 $1,196, $0 and $174 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 loan and credit agreements described in Note 6) to operate our business during the remainder of 2018. 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 agreements 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. Upon 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. We expect to expend resources on research, development and product testing, and in expanding current capacity or capability for new business. In addition, we may incur significant costs in preparing, filing, prosecuting, maintaining and enforcing our patents and other proprietary rights. We may need additional financing if we were to lose an existing customer or suffer a significant decrease in revenue from one or more of our customers or because of currently unknown capital requirements, new regulatory requirements or the need to meet the cash requirements discussed above to avoid a triggering event under our BASF agreement. Given our expected growth in our Solésence ® |
Business Segmentation and Geogr
Business Segmentation and Geographical Distribution | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segmentation and Geographical Distribution | (10) Business Segmentation and Geographical Distribution Revenue from international sources approximated $152 and $335 for the three and nine months ended September 30, 2018, respectively, compared to $276 and $956 for the three and nine months ended September 30, 2017, respectively. All this revenue was product revenue. Our operations comprise a single business segment and all our long-lived assets are located within the United States. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | (11) New Accounting Pronouncements During February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following: September 30, 2018 December 31, 2017 Raw materials $ 1,086 $ 543 Finished goods 1,026 863 2,112 1,406 Allowance for excess inventory quantities (21 ) (21 ) $ 2,091 $ 1,385 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of assumptions used to calculate Black-Scholes option Pricing Model for 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 nine months ended September 30, 2018 September 30, 2017 Weighted-average risk-free interest rates: 2.9% 2.1% Dividend yield: - - Weighted-average expected life of the option: 7 years 7 years Weighted-average expected stock price volatility: 94% 94% Weighted-average fair value of the options granted: $0.64 $0.55 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock Options [Member] | ||||
Antidilutive securities | 1,119,000 | 750,000 | 820,000 | 796,000 |
Notes and Lines of Credit (Deta
Notes and Lines of Credit (Detail Narratives) - USD ($) $ in Thousands | Nov. 19, 2018 | Mar. 31, 2015 | Sep. 30, 2018 | Dec. 31, 2017 | Jul. 31, 2014 |
Line of Credit | $ 500 | $ 300 | |||
Subsequent Event [Member] | Business Loan Agreement [Member] | |||||
Term loan | $ 500 | ||||
Fixed annual interest rate | 8.25% | ||||
Maturity date | Dec. 31, 2020 | ||||
Subsequent Event [Member] | Business Loan Agreement [Member] | Asset-Based Revolving Loan Facility [Member] | |||||
Basis spread variable interest rate | 3.00% | ||||
Line of credit facility, maximum borrowing capacity | $ 2,000 | ||||
Facility, expiration date | Mar. 31, 2020 | ||||
New Line of Credit [Member] | |||||
Basis spread variable interest rate | 1.00% | ||||
Variable interest rate basis | Prime rate | ||||
Line of credit facility, maximum borrowing capacity | $ 500 | ||||
Borrowing capacity as percentage of accounts receivable | 75.00% | ||||
Borrowing capacity as multiple of accounts receivable | 2 | ||||
Facility, expiration date | Mar. 4, 2019 | ||||
Line of Credit | $ 500 | 300 | |||
Repayment Terms | 5 days | ||||
New Line of Credit [Member] | Greater than [Member] | |||||
Minimum amount of cash on hand before advance is given | $ 1,000 | ||||
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. 4, 2018 | ||||
Line of Credit | $ 300 | ||||
Repayment Terms | 5 days | ||||
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 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,086 | $ 543 |
Finished goods | 1,026 | 863 |
Inventory gross, Total | 2,112 | 1,406 |
Allowance for excess inventory quantities | (21) | (21) |
Total | $ 2,091 | $ 1,385 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | ||
Relassification from prepaid expenses to raw materials | $ 246 | $ 246 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - Stock Options [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Weighted-average risk-free interest rates | 2.90% | 2.10% |
Weighted-average expected life of the option | 7 years | 7 years |
Weighted-average expected stock price volatility | 94.00% | 94.00% |
Weighted-average fair value of the options granted | $ 0.64 | $ 0.55 |
Share-Based Compensation (Det_2
Share-Based Compensation (Detail Narratives) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 58 | $ 45 | $ 146 | $ 140 | |
Total unrecognized compensation cost related to nonvested share-based compensation arrangements granted | $ 449 | $ 449 | |||
Weighted-average period over which unrecognized compensation is expected to be recognized | 2 years 2 months 12 days | ||||
Proceeds from exercise of stock options | $ 29,000 | $ 14,000 | |||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock issued pursuant to option exercises (shares) | 63,999 | 45,334 | |||
Stock options granted | 0 | 0 | 570,500 | 507,600 | |
Stock options expired | 188,504 | 7,000 | |||
Stock options forfeited | 31,601 | 37,568 | |||
Stock options outstanding, end of period | 3,428,000 | 3,428,000 | 3,141,000 | ||
Weighted average exercise price | $ 0.67 | $ 0.67 | $ 0.79 |
Significant Customers and Con_2
Significant Customers and Contingencies (Detail Narratives) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Number of major customers | 3 | 3 | ||
Accounts receivable | $ 1,917 | $ 1,917 | ||
Customers One [Member] | ||||
Accounts receivable | $ 1,170 | $ 1,196 | $ 1,170 | $ 1,196 |
Customers One [Member] | Customer Concentration Risk [Member] | Sales [Member] | ||||
Revenue from customers | 74.00% | 58.00% | 74.00% | 67.00% |
Customers Two [Member] | ||||
Accounts receivable | $ 388 | $ 0 | $ 388 | $ 0 |
Customers Two [Member] | Customer Concentration Risk [Member] | Sales [Member] | ||||
Revenue from customers | 12.00% | 0.00% | 8.00% | 0.00% |
Customers Three [Member] | ||||
Accounts receivable | $ 149 | $ 174 | $ 149 | $ 174 |
Customers Three [Member] | Customer Concentration Risk [Member] | Sales [Member] | ||||
Revenue from customers | 4.00% | 8.00% | 4.00% | 7.00% |
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 - 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] | ||||
Earnings trigger under supply agreeement | 0 | |||
Cash, cash equivalents and investments trigger under supply agreeement | $ 1,000 | $ 1,000 |
Business Segmentation and Geo_2
Business Segmentation and Geographical Distribution (Detail Narratives) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Number of business segments | 1 | |||
International Sources [Member] | ||||
Revenue from international sources | $ 152 | $ 276 | $ 335 | $ 956 |