Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 13, 2020 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NANOPHASE TECHNOLOGIES Corp | |
Entity Central Index Key | 0000883107 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Entity File Number | 000-22333 | |
Entity Incorporation, State Code | DE | |
Current Fiscal Year End Date | --12-31 | |
Entity Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | true | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 38,136,792 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited Consolidated Condensed) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash | $ 951 | $ 1,194 |
Trade accounts receivable, less allowance for doubtful accounts of $9 on March 31, 2020 and December 31, 2019, respectively | 2,254 | 970 |
Inventories, net | 2,384 | 2,554 |
Prepaid expenses and other current assets | 259 | 267 |
Total current assets | 5,848 | 4,985 |
Equipment and leasehold improvements, net | 2,351 | 2,255 |
Operating leases, right of use | 2,037 | 2,119 |
Other assets, net | 12 | 13 |
Total assets | 10,248 | 9,372 |
Current liabilities: | ||
Line of credit, bank | 500 | 500 |
Line of credit, related party | 1,400 | 224 |
Current portion of long-term debt, related party | 500 | 500 |
Current portion of finance lease obligations | 207 | 218 |
Current portion of operating lease obligations | 369 | 357 |
Accounts payable | 1,713 | 1,748 |
Current portion of deferred revenue | 321 | 482 |
Accrued expenses | 512 | 380 |
Total current liabilities | 5,522 | 4,409 |
Long-term portion of finance lease obligations | 241 | 288 |
Long-term portion of operating lease obligations | 1,937 | 2,035 |
Long-term convertible loan, related party | 897 | 830 |
Long-term portion of deferred revenue | 47 | 93 |
Asset retirement obligations | 208 | 206 |
Total long-term liabilities | 3,330 | 3,452 |
Contingent liabilities | ||
Shareholders' equity: | ||
Preferred stock, $.01 par value, 24,088 shares authorized, and no shares issued and outstanding | ||
Common stock, $.01 par value, 55,000,000 shares authorized; 38,136,792 and 33,911,792 shares issued and outstanding on March 31, 2020 and December 31, 2019, respectively | 381 | 381 |
Additional paid-in capital | 101,938 | 101,886 |
Accumulated deficit | (100,923) | (100,756) |
Total Shareholders' equity | 1,396 | 1,511 |
Total liabilities and stockholders' equity | $ 10,248 | $ 9,372 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited Consolidated Condensed) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 9 | $ 9 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 24,088 | 24,088 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 55,000,000 | 55,000,000 |
Common stock, issued | 38,136,792 | 33,911,792 |
Common stock, outstanding | 38,136,792 | 33,911,792 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited Consolidated Condensed) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Total revenue | $ 4,039 | $ 3,755 |
Cost of revenue | 3,005 | 2,871 |
Gross profit | 1,034 | 884 |
Operating expense: | ||
Research and development expense | 372 | 477 |
Selling, general and administrative expense | 705 | 877 |
Loss from operations | (43) | (470) |
Interest expense | 124 | 43 |
Loss before provision for income taxes | (167) | (513) |
Provisions for income taxes | ||
Net loss | $ (167) | $ (513) |
Net loss per share - basic and diluted (in dollars per share) | $ 0 | $ (0.02) |
Weighted average number of basic and diluted common shares outstanding (in shares) | 38,136,792 | 33,911,792 |
Product Revenue [Member] | ||
Revenue: | ||
Total revenue | $ 3,961 | $ 3,497 |
Other Revenue [Member] | ||
Revenue: | ||
Total revenue | $ 78 | $ 258 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (Unaudited Consolidated Condensed) - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at beginning at Dec. 31, 2018 | $ 339 | $ 98,795 | $ (97,750) | $ 1,384 | |
Balance at beginning (in shares) at Dec. 31, 2018 | 33,911,792 | ||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Stock-based compensation | 57 | 57 | |||
Net loss | (513) | (513) | |||
Balance at ending at Mar. 31, 2019 | $ 339 | 98,852 | (98,263) | 928 | |
Balance at ending (in shares) at Mar. 31, 2019 | 33,911,792 | ||||
Balance at beginning at Dec. 31, 2019 | $ 381 | 101,886 | (101,756) | 1,511 | |
Balance at beginning (in shares) at Dec. 31, 2019 | 38,136,792 | ||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Stock-based compensation | 52 | 52 | |||
Net loss | (167) | (167) | |||
Balance at ending at Mar. 31, 2020 | $ 381 | $ 101,938 | $ (100,923) | $ 1,396 | |
Balance at ending (in shares) at Mar. 31, 2020 | 38,136,792 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited Consolidated Condensed) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net loss | $ (167) | $ (513) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation and amortization | 86 | 77 |
Loss on disposal of equipment and leasehold improvements | 16 | |
Share-based compensation | 52 | 57 |
Amortization of debt discount | 67 | |
Changes in assets and liabilities related to operations: | ||
Trade accounts receivable | (1,284) | (1,276) |
Inventories | 170 | 14 |
Prepaid expenses and other assets | 8 | (136) |
Accounts payable | (35) | 133 |
Accrued expenses | 133 | 109 |
Deferred revenue | (207) | |
Other long-term assets and liabilities | (3) | (18) |
Net cash used in operating activities | (1,180) | (1,537) |
Investing activities: | ||
Acquisition of equipment and leasehold improvements | (181) | (240) |
Net cash used in investing activities | (181) | (240) |
Financing activities: | ||
Principal payments on finance leases | (58) | (52) |
Proceeds from line of credit, bank | 500 | 500 |
Payments to the line of credit, bank | (500) | |
Proceeds from line of credit, related party | 3,260 | 2,936 |
Payments to line of credit, related party | (2,084) | (2,320) |
Net cash provided by financing activities | 1,118 | 1,064 |
Decrease in cash and cash equivalents | (243) | (713) |
Cash and cash equivalents at beginning of period | 1,194 | 1,345 |
Cash and cash equivalents at end of period | 951 | 632 |
Supplemental cash flow information: | ||
Interest paid | 57 | 30 |
Supplemental non-cash investing and financing activities: | ||
Accounts payable incurred for the purchase of equipment and leasehold improvements | $ 77 | $ 40 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
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”, “Company”, “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. All statements include the results from both Nanophase and our wholly-owned subsidiary, Solesence, LLC (“Solésence,” or our “Solésence® subsidiary”). Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. These financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities and Exchange Commission. |
Going Concern _ Liquidity
Going Concern / Liquidity | 3 Months Ended |
Mar. 31, 2020 | |
Customers Two [Member] | |
Going Concern / Liquidity | (2) Going Concern / Liquidity We believe that cash from operations and cash on hand, in addition to unused borrowing capacity, may not be adequate to fund our operating plans through 2020. We are working to reduce these risks, but some of this is dependent on several things over which we have limited control. Our largest customer made up 63% of our 2019 revenue, and expects a reduction in orders from us in 2020, which has limited our flexibility and required us to make cash management a top priority. We have seen an increase in sales of our Solésence® products in the first quarter, which we expect to continue during the balance of 2020. With the current circumstances of, and the impact of the various reactions and policies relating to, the Covid-19 pandemic, it is currently management’s belief that we will achieve growth in Solésence sales in 2020, but not to the extent for which we planned; however, that belief is based on the assumption that negative impacts related to the Covid-19 pandemic and related reactions and policies will substantially improve commencing in the second quarter and continuing thereafter, and such assumption may not prove accurate. This may require additional investment in working capital. Given these issues, and other commercial realities, we are monitoring the additional working capital demands that this could create as we continue to execute on our Solésence® growth strategy. It is also management’s belief that the Covid-19 pandemic, related governmental reaction, and resulting economic slow-down has, and is expected to continue, to affect certain consumer behaviors and markets could have a negative impact on its Personal Care Ingredients customers during the second quarter of 2020. Management believes the outlook after the second quarter is uncertain, but a continuation of the Covid-19 pandemic and related reactions and policies after the second quarter of 2020 would be expected to increase the negative impact on the Company and its businesses. Management believes the negative impacts in the second quarter and, if applicable, thereafter, are not currently quantifiable. The timing of cash flows is critical. If cash generated from operations is not materially consistent with our plans, we believe that we may need to seek additional funding to address working capital demands. The trading volume of our stock has been low enough that we expect it would be difficult to sell enough shares, assuming our shareholders would approve the authorization of additional shares, to generate additional capital via the OTC market. These uncertainties have caused us to be unable to assert that, for the next twelve months, we have enough current cash, guaranteed access to financing to fund operations, or access to cash in the equity markets to continue with our current growth strategy in terms of investment in capital equipment and in operating expenses related to Solesence®. On March 11, 2020, the World Health Organization declared the outbreak of a novel coronavirus (SARS-CoV-2) to be a global pandemic (COVID-19), which continues to spread throughout the United States and around the world. On April 23, 2020, the Governor of the State of Illinois extended his order that all non-essential businesses cease all activities within the State of Illinois except for certain minimum basic operations through May 30, 2020, and such executive order may be extended. During this disruption, we are doing everything we can to allow as many of our employees as possible to shelter-in-place. Relative to the executive order in Illinois, management believes that Nanophase Technologies and its Solésence® subsidiary qualify as essential businesses as defined, due to our product offerings supporting healthcare, and critical manufacturing and chemical products within sectors that have been designated as critical infrastructure, the continued operation of which is vital for national public health, economic security, and safety. The Company believes that its customers and suppliers may have similar disruptions, which may lead to greater reductions in their normal operations as a result of responses to the coronavirus pandemic in Illinois and in other jurisdictions in the United States and worldwide. Currently, the Company is consequently aware of changes in its business as a result of the coronavirus pandemic, but uncertain of the impacts of those changes on its consolidated statements of position, operations or cash flows. As of the date of this filing, customer demand for the third and fourth quarters is not yet clear to management. We believe the resulting cessations, reductions, and disruptions in its customers’ and suppliers’ operations could be temporary; however, the Company’s management also believes the duration and, hence, the potential impact of such cessations, reductions, and disruptions is currently unknowable. As a result, although we believe we have acceptable visibility through the second quarter of 2020, conditions are fluid and our estimates regarding the second quarter could prove inaccurate. Moreover, we are unable to estimate the potential impact on our business for the balance of the year as of the date of this filing. These circumstances raise significant doubt as to the Company’s ability to operate as a going concern under U.S. GAAP. The accompanying financial statements have been prepared on a going concern basis in accordance with U.S. GAAP. As such, no adjustments have been made to the consolidated condensed financial statements for the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue operating as a going concern. On April 17, 2020, the Company received funding in the form of a loan under the Paycheck Protection Program (the “PPP”), under Division A, Title I of Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), in the amount of $952 which will help us to continue to pay our people, rent and utilities. Should it become necessary, we believe that we may be able to secure additional financing, but we do not have any additional financing commitments in place as of today. However, we may not be able to secure additional financing in a timely manner under commercially reasonable terms, or at all. If we are unable to secure additional financing, the operations of the Company might need to be curtailed to a certain degree, and we would need to delay capital expenditures related to our Solésence® growth strategy, which could impede growth in 2020 and 2021. |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2020 | |
Description Of Business | |
Description of Business | (3) Description of Business Nanophase Technologies Corporation (“Nanophase,” “Company,” “we,” “our,” or “us”) is a skin and sun care focused company that offers engineered materials, formulation development and commercial manufacturing with an integrated family of technologies. Our expertise in nanoscale engineering allows us to effectively coat and disperse particles on a nano and “non-nano” scale for use in a variety of diverse markets: personal care ingredients, including sunscreens as active ingredients; full formulations of skin care products, marketed and sold by our wholly-owned subsidiary, Solesence, LLC (our “Solésence® subsidiary”), which comprise two of our three major product categories; and in architectural coatings, industrial coating applications, abrasion-resistant additives, plastics additives, medical diagnostics, and a variety of surface finishing technologies (polishing) applications, including optics — all of which fall in to the advanced materials product category. 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, and our Solésence® products 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) — now called Active Stress Defense ™ Technology — 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® subsidiary, we utilize this particle surface treatment to manufacture and sell fully developed solutions to targeted customers in the skin care industry, in addition to the ingredients 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. 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 the sale of our products. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | (4) Revenues Revenues are generally recognized at a point in time, typically when control of the promised goods is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. Deferred Revenue includes customer deposits and other receipts that are recognized when the revenue is realized and earned. Cash payments to customers are classified as reductions of revenue in the Company’s Consolidated Condensed Statement of Operations. Customer deposits, $368, as of March 31, 2020, have been classified as deferred revenue. At December 31, 2019, customer deposits amounted to $575. On July 31, 2019, we entered into a Joint Development Agreement (“JDA”), with an initial term of ten years, with Sumitomo Corporation of Americas (“SCOA”) to jointly develop certain coated materials for the use in the personal care market. In return for the Company’s exclusive efforts on SCOA’s behalf, SCOA has paid a commitment fee of $250 and will pay two subsequent payments, of $125 each, for the development of products. The two subsequent payments are contingent upon the achievement of certain performance obligations as defined in the agreement. We began recognizing revenue recognizing revenue from the commitment fee in November 2019 and will continue to do so as we fulfill our contractual performance obligations. In the case of the SCOA JDA, the Company is recognizing revenue over time using an input method. If the Company elects to terminate the agreement within the terms allowed and prior to achieving the initial performance obligations, the original $250 must be refunded. As of March 31, 2020, the Company has recognized $86 in cumulate revenue from the SCOA JDA, of which $65 was recognized in the first quarter of 2020. The Company has recognized this revenue proportionally, based upon its estimate of the period over which the performance obligation is expected to be completed. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (5) Earnings Per Share Earnings (loss) per share is computed using the Treasury Stock Method. Options to purchase approximately 1,000 and 766,000 shares of common stock that were outstanding as of March 31, 2020 and 2019, respectively, were not included in the computation of earnings (loss) per share for the three-month period ended March 31, 2020 and 2019, respectively, as the impact of such shares would be anti-dilutive. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | (6) 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, accounts receivable, accounts payable and accrued expenses, along with any borrowings on the working capital line of credit from Libertyville Bank and Trust and any borrowings under the Master Agreement from Beachcorp, LLC described below in Note 7. 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 March 31, 2020 or December 31, 2019. |
Notes and Line of Credit
Notes and Line of Credit | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Notes and Lines of Credit | (7) 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 do so pursuant to the terms of our facility lease agreement. This note currently expires on July 1, 2020 and management expects it to be renewed. Because there were no amounts outstanding on the note at any time during 2020 or 2019, we have recorded no related liability on our consolidated balance sheet. On March 22, 2019, we executed a New Business Loan Agreement, dated as of March 4, 2019 (the “Loan Agreement”), with Libertyville Bank and Trust Company, a Wintrust Community Bank (“Libertyville”), our primary bank, which replaced the Line of Credit Agreement with Libertyville having a maturity date of March 4, 2019. Under the Loan Agreement, Libertyville will provided a maximum of (i) $500 or (ii) two times the sum of (a) 75% our eligible accounts receivables and (b) our cash deposited with Libertyville, whichever is less, of revolving credit to us, collateralized by a senior priority lien on our accounts receivable, inventory, equipment, general intangibles and fixtures. Interest was payable monthly on any advances at a floating interest rate of the prime rate at the time plus 1%. We were required to have $500 in cash, inclusive of the borrowed amount, at Libertyville on the date of any advance. Advances could only occur at the beginning or end of a fiscal quarter and were required to be repaid in full within five business days of the advance. Amounts due under the Loan Agreement were required to be paid in full at its maturity on April 4, 2020. Libertyville is seeing very high levels of underwriting activity relating to the PPP (see Note 2), and has yet to renew this facility. Based upon conversations with Libertyville, it is management’s expectation that this facility will be renewed during the second quarter of 2020. We borrowed $500 on March 30, 2020, and repaid it on April 2, 2020. We borrowed $500 on December 31, 2019 and repaid it on January 2, 2020. On November 16, 2018, we entered into a Business Loan Agreement (the “Master Agreement”) with Beachcorp, LLC. Beachcorp, LLC is managed by Bradford T. Whitmore, who, together with his affiliates Grace Brothers, Ltd. and Grace Investments, Ltd., beneficially owned approximately 63% of the outstanding shares of our common stock as of March 31, 2020. The Master Agreement relates to two loan facilities, each evidenced by separate promissory notes, each dated 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. On March 23, 2020, the Company and Beachcorp, LLC executed the First Amendment to our Master Agreement that extends the maturities of both the Term Loan and the Revolver Facility to March 31, 2021. The Term Loan and Revolver Facility are secured by all the unencumbered assets of the Company and subordinated to Libertyville’s secured interest under the New Business Loan 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. On March 31, 2020, the balance on the term loan was $500 and the balance on the Revolver Facility was $1,400. There was $25 in related interest expense during the quarter ended March 31, 2020, of which $9 was accrued and $16 paid by the end of the quarter. There was $26 in related interest expense during the quarter ended March 31, 2019, of which $13 was accrued and $13 paid by the end of the quarter. As Beachcorp, LLC is an affiliate of one of Mr. Whitmore, this amounts to interest to be paid to a related party. On March 31, 2020 borrowings were within the credit agreement limit with an additional $599 available. The balance of borrowing base, loan amount, and any excess payments required over the available borrowing base will change as frequently as daily, given the operational nature of the elements of the Revolver Facility. On November 20, 2019, we entered into a 2% Secured Convertible Promissory Note with Bradford T. Whitmore in the principal amount of $2,000,000 (the “Convertible Note”). The principal amount is payable in a single payment on May 15, 2024 (the “Maturity Date”). The principal amount of the Convertible Note accrues interest at the rate of 2.0% per year, which interest is payable semi-annually on the 15th day of May and November, commencing on May 15, 2020. The principal amount and, at the holder’s option, accrued interest under the Convertible Note is convertible at the holder’s option into additional shares of the Company’s common stock in whole or in part and from time to time up to the Maturity Date at a conversion price of $0.20 per share. The convertible note contains a beneficial conversion feature since the Company’s stock was trading at $0.32 per share on the date the Company entered into the agreement. The intrinsic value of the beneficial conversion feature was $1.2 million on November 20, 2019 and is recorded as a discount on the convertible note. The discount will be accreted to the convertible note over the life of the note using the straight-line method. The offset to these discounts will be interest expense. For the three months ended March 31, 2020, the Company accreted $67. The balance on the convertible note was $897 and $830, net of discounts of $1,103 and $1,170 at March 31, 2020 and December 31, 2019, respectively. On March 31, 2020, the balance on the term loan was $500, the balance on the Revolver Facility was $1,400, and the balance on the Convertible Note was $2,000. In the first quarter of 2020, there was $35 in interest expense relating to these credit facilities held by Beachcorp, LLC. The accrued interest expense balance on these related party credit facilities amounted to $13, and $6, at March 31, 2020 and December 31, 2019, respectively. The obligations under the Convertible Note are secured by a security interest in all of the Company’s personal property pursuant to a Commercial Security Agreement among Mr. Whitmore, the Company and Solésence, LLC, the Company’s sole subsidiary. Given that Beachcorp, LLC is an affiliate of Mr. Whitmore, this amounts to all of this interest being owed to a related party. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | (8) Inventories Inventories consist of the following: March 31, 2020 December 31, 2019 Raw materials $ 1,423 $ 1,425 Finished goods 991 1,170 2,414 2,595 Allowance for excess inventory quantities (30 ) (41 ) $ 2,384 $ 2,554 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | (9) Leases The Company’s operating lease portfolio is comprised of operating leases for office, warehouse space and equipment. Certain of the Company’s leases include one or more options to renew or terminate the lease at the Company’s discretion. The Company regularly evaluates the renewal and termination options and when they are reasonably certain of exercise, includes the renewal or termination option in our lease term. As of March 31, 2020, the operating lease right-of-use ROU asset had a balance of $2,037 which is included in the Operating lease right-of-use assets line item of these condensed consolidated financial statements and current and non-current lease liabilities related to the ROU asset of $369 and $1,937 respectively. As of December 31, 2019, the ROU asset had a balance of $2,119 which is included in the Operating lease right-of-use assets line item of these condensed consolidated financial statements and current and non-current lease liabilities related to the ROU asset of $357 and $2,035 respectively. These are included in the Current portion of operating lease obligations and Long-term operating lease obligations, net of current portion line items of these condensed consolidated financial statements. The discount rates used for leases accounted for under ASC 842 are based on an interest rate yield curve developed for the leases in the Company’s portfolio. The office leases contain variable lease payments which consist primarily of rent escalations based on an established index or rate and taxes, insurance, and common area or other maintenance costs, which are paid based on actual costs incurred by the lessor. Quantitative information regarding the Company’s leases is as follows: Three Months Ended Three Months Ended Components of lease cost Finance lease cost components: Amortization of finance lease assets $ 17 $ 17 Interest on finance lease liabilities 11 16 Total finance lease costs 28 33 Operating lease cost components: Operating lease cost 140 123 Variable lease cost 27 27 Short-term lease cost 2 22 Total operating lease costs 169 172 Total lease cost $ 197 $ 205 Supplemental cash flow information related to leases is as follows for the period ended March 31: 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 171 $ 168 Weighted-average remaining lease term-finance leases (in years) 1.7 2.7 Weighted-average remaining lease term-operating leases (in years) 2.7 3.7 Weighted-average discount rate-finance leases 9.3 % 9.1 % Weighted-average discount rate-operating leases 14.6 % 14.4 % The future maturities of the Company’s finance and operating leases as of March 31, 2020 is as follows: Finance Operating Total 2020 $ 189 $ 506 $ 695 2021 196 687 883 2022 109 705 814 2023 5 690 695 2024 — 580 580 2025 and thereafter — — — Total payments $ 499 $ 3,168 $ 3,667 Less amounts representing interest (51 ) (862 ) (913 ) Total minimum payments required: $ 448 $ 2,306 $ 2,754 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | (10) Share-Based Compensation We follow FASB ASC Topic 718, Compensation – Stock Compensation As of March 31, 2020, there was approximately $256 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 1.7 years. Stock Options and Stock Grants No stock options were exercised during the three months ended March 31, 2020, or March 31, 2019. During the three months ended March 31, 2020, there were no stock options granted, compared to 8,000 stock options granted during the same period in 2019. During the three months ended March 31, 2020, 241,000 stock options expired, and 140,000 stock options were forfeited compared to 4,000 stock options expired, and 11,000 stock options were forfeited during the same period in 2019. We had 3,332,000 stock options outstanding at a weighted average exercise price of $0.63 on March 31, 2020, compared to 3,408,000 stock options outstanding at a weighted average exercise price of $0.67 on March 31, 2019. No stock options were granted during the three-month period ended March 31, 2020. The following table illustrates the various assumptions used to calculate the Black-Scholes option pricing model for stock options granted during the three-months ended March 31, 2019: Weighted-average risk-free interest rates: 2.5% Dividend yield: — Weighted-average expected life of the option: 7 years Weighted-average expected stock price volatility: 94% Weighted-average fair value of the options granted: $0.75 |
Significant Customers and Conti
Significant Customers and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Significant Customers and Contingencies | (11) Significant Customers and Contingencies Revenue from three customers constituted approximately 46%, 15% and 15%, respectively, of our total revenue for the three months ended March 31, 2020. Amounts included in accounts receivable on March 31, 2020 relating to these three customers were approximately $896, $31 and $593, respectively. Revenue from these three customers constituted approximately 54%, 0% and 18%, respectively, of our total revenue for the three months ended March 31, 2019. Amounts included in accounts receivable on March 31, 2019 relating to these three customers were approximately $631, $0 and $673, 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. Further, as mentioned earlier (see Note 2), if the Covid-19 Pandemic and related reactions and policies were to negatively affect certain behaviors and markets it could create significant reductions in customer purchases during and after the second quarter of 2020. Our outlook in this regard is currently unclear. Although we believe we have acceptable visibility through the second quarter of 2020, conditions are fluid and our estimates regarding the second quarter could prove inaccurate. Moreover, we are unable to estimate the potential impact on our business for the balance of the year as of the date of this filing. 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 $500,000, or (b) of an acceleration of any debt maturity having a principal amount of more than $10 million. There are certain minimum finished goods inventory requirements with the 2019 amendment to the supply agreement. This agreement also requires Nanophase to maintain certain finished goods inventory levels as “safety stock,” beginning in the first quarter of 2019, and increasing through the third quarter of 2019 to a negotiated level based on agreed demand metrics, in order to maintain the $500,000 non-cash component discussed above. After September 30, 2019, should our safety stock fall below the prescribed amount of material, the quarter-end cash requirement would revert to $1,000,000 in cash, cash equivalents, and certain investments. The safety stock requirement may be adjusted upon mutual agreement. Historically, we have relied on our Loan Agreement with Libertyville and predecessor facilities in order to satisfy the quarterly financial testing under the BASF supply agreement. As of the date of this filing, the Loan Agreement has not been renewed, but management expects the facility will be renewed in the second quarter of 2020 (see note 7). 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 should have sufficient cash and credit availability (See the description of our Loan Agreement with Libertyville and the Master Agreement with Beachcorp, LLC (described in Note 7) and our PPP Loan (described in Note 13) to operate our business during 2020, but this is dependent on several things over which we have limited control, including the renewal of the Loan Agreement during the second quarter of 2020. 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. 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 | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segmentation and Geographical Distribution | (12) Business Segmentation and Geographical Distribution Revenue from international sources approximated $304 and $457 for the three months ended March 31, 2020 and 2019, respectively. All 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. We categorize our revenue streams into three main product categories, Personal Care Ingredients, Advanced Materials and Solésence ® Product Category 2020 2019 Personal Care Ingredients $ 1,932 $ 2,009 Advanced Materials 584 850 Solésence ® 1,523 896 Total Revenue $ 4,039 $ 3,755 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | (13) Subsequent Events On April 17, 2020, we received funding from Libertyville in the amount of $962 at a fixed annual interest rate of 1% per year (the “PPP Loan”) under the Paycheck Protection Program (“PPP”) under Division A, Title I of Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Under the PPP, the Company may apply for forgiveness of the PPP Loan in an amount equal to the sum of the following costs incurred during the 8-week period beginning on the date of the first disbursement of the PPP Loan: (a) payroll costs, (b) any payment of interest on a covered obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation), (c) any payment on a covered rent obligation, and (d) any covered utility payment, calculated in accordance with the terms of the CARES Act. If the Company meets certain criteria, it may be eligible for forgiveness under the stated terms of the PPP Loan as described in the CARES Act. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following: March 31, 2020 December 31, 2019 Raw materials $ 1,423 $ 1,425 Finished goods 991 1,170 2,414 2,595 Allowance for excess inventory quantities (30 ) (41 ) $ 2,384 $ 2,554 |
Lease (Tables)
Lease (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Summary of quantitative information about leases | Quantitative information regarding the Company’s leases is as follows: Three Months Ended Three Months Ended Components of lease cost Finance lease cost components: Amortization of finance lease assets $ 17 $ 17 Interest on finance lease liabilities 11 16 Total finance lease costs 28 33 Operating lease cost components: Operating lease cost 140 123 Variable lease cost 27 27 Short-term lease cost 2 22 Total operating lease costs 169 172 Total lease cost $ 197 $ 205 |
Summary of supplemental cash flow information related to leases | Supplemental cash flow information related to leases is as follows for the period ended March 31: 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 171 $ 168 Weighted-average remaining lease term-finance leases (in years) 1.7 2.7 Weighted-average remaining lease term-operating leases (in years) 2.7 3.7 Weighted-average discount rate-finance leases 9.3 % 9.1 % Weighted-average discount rate-operating leases 14.6 % 14.4 % |
Schedule of future maturities of finance and operating leases | The future maturities of the Company’s finance and operating leases as of March 31, 2020 is as follows: Finance Operating Total 2020 $ 189 $ 506 $ 695 2021 196 687 883 2022 109 705 814 2023 5 690 695 2024 — 580 580 2025 and thereafter — — — Total payments $ 499 $ 3,168 $ 3,667 Less amounts representing interest (51 ) (862 ) (913 ) Total minimum payments required: $ 448 $ 2,306 $ 2,754 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [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 three-months ended March 31, 2019: Weighted-average risk-free interest rates: 2.5% Dividend yield: — Weighted-average expected life of the option: 7 years Weighted-average expected stock price volatility: 94% Weighted-average fair value of the options granted: $0.75 |
Business Segmentation and Geo_2
Business Segmentation and Geographical Distribution (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segments, Geographical Areas [Abstract] | |
Schedule of revenue by category | The revenues for the three months ended March 31, 2020 and 2019, respectively, by category, are as follows: Product Category 2020 2019 Personal Care Ingredients $ 1,932 $ 2,009 Advanced Materials 584 850 Solésence ® 1,523 896 Total Revenue $ 4,039 $ 3,755 |
Going Concern _ Liquidity (Deta
Going Concern / Liquidity (Details Narrative) | 3 Months Ended |
Mar. 31, 2020 | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | |
Concentration risk (percent) | 63.00% |
Revenues (Detail Narratives)
Revenues (Detail Narratives) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019USD ($)Number | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Customer deposits | $ 368 | $ 368 | $ 575 | ||
Revenue | 4,039 | $ 3,755 | |||
Joint Development Agreement [Member] | |||||
Initial term agreement | 10 years | ||||
Commitment fee per agreement | $ 250 | ||||
Contingent fees per agreement | $ 125 | ||||
Number of contingent fee payments | Number | 2 | ||||
Refundable commitment fee per agreement | $ 250 | ||||
Revenue | $ 65 | $ 85 |
Earnings Per Share (Details Nar
Earnings Per Share (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities excluded from computation of earnings per share | 1,000 | 766,000 |
Note and Lines of Credit (Detai
Note and Lines of Credit (Detail Narratives) $ / shares in Units, $ in Thousands | Mar. 23, 2020 | Nov. 20, 2019USD ($)$ / shares | Mar. 22, 2019USD ($)Number | Nov. 16, 2018USD ($) | Jul. 31, 2014USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) |
Interest expense paid | $ 124 | $ 43 | ||||||
2% Secured Convertible Promissory Note Due on May 15, 2024 [Member] | Bradford T. Whitmore [Member] | ||||||||
Fixed annual interest rate | 2.00% | |||||||
Maturity date | May 15, 2024 | |||||||
Principal amount | $ 2,000 | |||||||
Debt conversion price (in dollars per share) | $ / shares | $ 0.20 | |||||||
Share price (in dollars per share) | $ / shares | $ 0.32 | |||||||
Discount on the convertible note | $ 1,200 | 1,103 | $ 1,170 | |||||
Balance as of convertible note | 897 | 830 | ||||||
Asset-Based Revolving Loan Facility [Member] | ||||||||
Letter of credit and related promissory note | 1,400 | |||||||
First Amendment Too Our Master Agreement [Member] | Term Loan and The Revolver Facility [Member] | Beachcorp, LLC [Member] | Extended Maturity [Member] | ||||||||
Maturity date | Mar. 31, 2021 | |||||||
Term loan collateral | Secured by all the unencumbered assets of the Company | |||||||
Business Loan Agreement [Member] | Beachcorp, LLC [Member] | ||||||||
Maximum borrowing capacity | $ 500 | |||||||
Term loan | $ 2,000 | 500 | ||||||
Fixed annual interest rate | 8.25% | |||||||
Maturity date | Dec. 31, 2020 | |||||||
Ownership percentage | 63.00% | |||||||
Total interest expense | 25 | 26 | ||||||
Interest expense paid | 16 | 13 | ||||||
Accrued interest expense on related party | 9 | $ 13 | ||||||
Business Loan Agreement [Member] | Beachcorp, LLC [Member] | Bradford T. Whitmore [Member] | ||||||||
Maximum borrowing capacity | 599 | |||||||
Business Loan Agreement [Member] | Asset-Based Revolving Loan Facility [Member] | Beachcorp, LLC [Member] | ||||||||
Basis spread variable interest rate | 3.00% | |||||||
Variable interest rate basis | Prime rate | |||||||
Maximum borrowing capacity | $ 2 | |||||||
Facility, expiration date | Mar. 31, 2020 | |||||||
Term loan | 1,400 | |||||||
Business Loan Agreement [Member] | Asset-Based Revolving Loan Facility [Member] | Beachcorp, LLC [Member] | Greater than [Member] | ||||||||
Basis spread variable interest rate | 8.25% | |||||||
Letter of Credit [Member] | ||||||||
Letter of credit and related promissory note | $ 30 | 500 | ||||||
Basis spread variable interest rate | 1.00% | |||||||
Variable interest rate basis | Prime rate | |||||||
Facility, expiration date | Jul. 1, 2020 | |||||||
Credit Facility [Member] | ||||||||
Interest expense paid | 35 | |||||||
Accrued interest expense on related party | 13 | 6 | ||||||
Line of Credit [Member] | New Business Loan Agreement [Member] | Libertyville [Member] | ||||||||
Basis spread variable interest rate | 1.00% | |||||||
Variable interest rate basis | Prime rate | |||||||
Maximum borrowing capacity | $ 500 | $ 500 | $ 500 | |||||
Repayments of lines of credit date | Apr. 2, 2020 | Jan. 2, 2020 | ||||||
Borrowing capacity as percentage of accounts receivable | 75.00% | |||||||
Borrowing capacity as multiple of accounts receivable | Number | 2 | |||||||
Minimum amount of cash on hand before advance is given | $ 500 | |||||||
Facility, expiration date | Apr. 4, 2020 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,423 | $ 1,425 |
Finished goods | 991 | 1,170 |
Total inventory, gross | 2,414 | 2,595 |
Allowance for excess quantities | (30) | (41) |
Total inventory | $ 2,384 | $ 2,554 |
Lease (Details)
Lease (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Finance lease cost components: | ||
Amortization of finance lease assets | $ 17 | $ 17 |
Interest on finance lease liabilities | 11 | 16 |
Total finance lease costs | 28 | 33 |
Operating lease cost components: | ||
Operating lease cost | 140 | 123 |
Variable lease cost | 27 | 27 |
Short-term lease cost | 2 | 22 |
Total operating lease costs | 169 | 172 |
Total lease cost | $ 197 | $ 205 |
Lease (Details 1)
Lease (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabiltiies: | ||
Operating cash outflow from operating leases | $ 171 | $ 168 |
Weighted-average remaining lease term-finance leases (in years) | 1 year 8 months 12 days | 2 years 8 months 12 days |
Weighted-average remaining lease term-operating leases (in years) | 2 years 8 months 12 days | 3 years 8 months 12 days |
Weighted-average discount rate-finance leases | 9.30% | 9.10% |
Weighted-average discount rate-operating leases | 14.60% | 14.40% |
Lease (Details 2)
Lease (Details 2) $ in Thousands | Mar. 31, 2020USD ($) |
Operating Leases: | |
2020 | $ 506 |
2021 | 687 |
2022 | 705 |
2023 | 690 |
2024 | 580 |
Total payments | 3,168 |
Less amounts representing interest | (862) |
Total minimum payments required: | 2,306 |
Finance Leases: | |
2020 | 189 |
2021 | 196 |
2022 | 109 |
2023 | 5 |
Total payments | 499 |
Less amounts representing interest | (51) |
Total minimum payments required: | 448 |
Total: | |
2020 | 695 |
2021 | 883 |
2022 | 814 |
2023 | 695 |
2024 | 580 |
Total payments | 3,667 |
Less amounts representing interest | (913) |
Total minimum payments required: | $ 2,754 |
Lease (Details Narrative)
Lease (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Operating Leased Assets [Line Items] | |||
Operating lease right-of-use assets | $ 2,037 | $ 2,119 | $ 2,119 |
Current portion of operating lease obligations | 369 | 357 | 357 |
Long-term portion of operating lease obligations | 1,937 | $ 2,035 | $ 2,035 |
Operating lease liability | $ 2,306 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - Stock Options [Member] | 3 Months Ended |
Mar. 31, 2019$ / shares | |
Weighted-average risk-free interest rates | 2.50% |
Weighted-average expected life of the option | 7 years |
Weighted-average expected stock price volatility | 94.00% |
Weighted-average fair value of the options granted | $ 0.75 |
Share-Based Compensation (Det_2
Share-Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost related to nonvested share-based compensation arrangements granted | $ 256 | ||
Weighted-average period over which unrecognized compensation is expected to be recognized | 1 year 8 months 12 days | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 52 | $ 57 | |
Stock options granted | 0 | 8,000 | |
Stock options excercise | 0 | 0 | |
Stock options expired | 241,000 | 4,000 | |
Stock options forfeited | 140,000 | 11,000 | |
Stock options outstanding, end of period | 3,332,000 | 3,408,000 | |
Weighted average exercise price | $ 0.63 | $ 0.67 |
Significant Customers and Con_2
Significant Customers and Contingencies (Details Narrative) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)Number | Mar. 31, 2019USD ($)Number | Dec. 31, 2019USD ($) | |
Number of major customers | Number | 3 | 3 | |
Accounts receivable | $ 2,254 | ||
Deferred revenue | 321 | $ 482 | |
Customer One [Member] | |||
Accounts receivable | 896 | $ 631 | |
Customer Two [Member] | |||
Accounts receivable | 31 | 0 | |
Customer Three [Member] | |||
Accounts receivable | $ 593 | $ 673 | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | |||
Revenue from customers | 63.00% | ||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer One [Member] | |||
Revenue from customers | 46.00% | 54.00% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer Two [Member] | |||
Revenue from customers | 15.00% | 0.00% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer Three [Member] | |||
Revenue from customers | 15.00% | 18.00% | |
BASF [Member] | |||
Cash requirements levels for safety stock | $ 1,000 | ||
Equipment sale - original book value of equipment and upgrades | 115.00% | ||
Equipment sale - net book value equipment | 115.00% | ||
BASF [Member] | Greater than [Member] | |||
Cash, cash equivalents and certain investments required under supply agreeement | $ 500 | ||
Finished goods inventory levels as safety stock | $ 500 | ||
Equipment sale - original book value of equipment and upgrades | 30.00% | ||
BASF [Member] | Less than [Member] | |||
Earnings trigger under supply agreeement | $ 0 |
Business Segmentation and Geo_3
Business Segmentation and Geographical Distribution (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Sales | $ 4,039 | $ 3,755 |
Personal Care Ingredients [Member] | ||
Sales | 1,932 | 2,009 |
Advanced Materials [Member] | ||
Sales | 584 | 850 |
Solesence [Member] | ||
Sales | $ 1,523 | $ 896 |
Business Segmentation and Geo_4
Business Segmentation and Geographical Distribution (Details Narrative) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)Number | Mar. 31, 2019USD ($) | |
Number of business segments | Number | 1 | |
International Sources [Member] | ||
Revenue from international sources | $ | $ 304 | $ 457 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Libertyville Bank and Trust Company [Member] - Subsequent Event [Member] - PPP Loan [Member] $ in Thousands | Apr. 17, 2020USD ($) |
Debt face amount | $ 962 |
Interest rate | 1.00% |
Description of debt forgiveness | The PPP Loan in an amount equal to the sum of the following costs incurred during the 8-week period beginning on the date of the first disbursement of the PPP Loan: (a) payroll costs, (b) any payment of interest on a covered obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation), (c) any payment on a covered rent obligation, and (d) any covered utility payment, calculated in accordance with the terms of the CARES Act. |