Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 31, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 000-22333 | ||
Entity Registrant Name | NANOPHASE TECHNOLOGIES CORPORATION | ||
Entity Central Index Key | 0000883107 | ||
Entity Tax Identification Number | 36-3687863 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 1319 Marquette Drive | ||
Entity Address, City or Town | Romeoville | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60446 | ||
City Area Code | 630 | ||
Local Phone Number | 771-6708 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 27,240,325 | ||
Entity Common Stock, Shares Outstanding | 48,893,573 | ||
Auditor Name | RSM US LLP | ||
Auditor Firm ID | 49 | ||
Auditor Location | Chicago, Illinois |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 657 | $ 957 |
Trade accounts receivable, less allowance for doubtful accounts of $60 for December 31, 2021, and $9 for 2020 | 3,937 | 2,932 |
Inventories, net | 6,095 | 4,340 |
Prepaid expenses and other current assets | 910 | 606 |
Total current assets | 11,599 | 8,835 |
Equipment and leasehold improvements, net | 4,712 | 2,868 |
Operating leases, right of use | 12,075 | 1,827 |
Other assets, net | 8 | 10 |
Total Current Assets | 28,394 | 13,540 |
Current liabilities: | ||
Line of credit, bank | 500 | |
Line of credit, related party | 1,351 | 2,155 |
Current portion of long-term debt, related party | 500 | |
Current portion of finance lease obligations | 105 | 177 |
Current portion of operating lease obligations | 1,983 | 431 |
Accounts payable | 3,566 | 2,126 |
Current portion of deferred revenue | 783 | 411 |
Accrued expenses | 946 | 484 |
Total current liabilities | 8,734 | 6,784 |
Long-term portion of finance lease obligations | 6 | 110 |
Long-term portion of operating lease obligations | 10,306 | 1,651 |
Long-term debt, related party | 1,000 | |
Long-term convertible loan, related party | 1,097 | |
PPP Loan (SBA) | 952 | |
Long-term portion of deferred revenue | 661 | |
Asset retirement obligations | 222 | 214 |
Total long-term liabilities | 12,195 | 4,024 |
Contingent liabilities | ||
Stockholders’ 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; 48,893,573 and 38,221,292 shares issued and outstanding on December 31, 2021 and December 31, 2020, respectively | 489 | 382 |
Additional paid-in capital | 104,423 | 102,117 |
Accumulated deficit | (97,447) | (99,767) |
Total stockholders’ equity | 7,465 | 2,732 |
Total liabilities and shareholder’s equity | $ 28,394 | $ 13,540 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 60 | $ 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 | 48,893,573 | 38,221,292 |
Common stock, outstanding | 48,893,573 | 38,221,292 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue: | ||
Total revenue | $ 29,475 | $ 17,123 |
Operating expense: | ||
Cost of revenue | 20,785 | 11,133 |
Gross profit | 8,690 | 5,990 |
Research and development expense | 2,235 | 1,571 |
Selling, general and administrative expense | 3,896 | 2,934 |
Income from operations | 2,559 | 1,485 |
Interest expense | (1,154) | (496) |
Other income, net | 952 | |
Income before provision for income taxes | 2,357 | 989 |
Provision for income taxes | 37 | |
Net income | $ 2,320 | $ 989 |
Net income per share-basic | $ 0.05 | $ 0.03 |
Weighted average number of basic common shares outstanding | 45,021,173 | 38,158,586 |
Net income per share-diluted | $ 0.05 | $ 0.03 |
Weighted average number of diluted common shares outstanding | 47,039,173 | 38,545,586 |
Product [Member] | ||
Revenue: | ||
Total revenue | $ 29,325 | $ 16,422 |
Product and Service, Other [Member] | ||
Revenue: | ||
Total revenue | $ 150 | $ 701 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at beginning at Dec. 31, 2019 | $ 381 | $ 101,886 | $ (100,756) | $ 1,511 | |
Balance at beginning (in shares) at Dec. 31, 2019 | 38,136,792 | ||||
Stock option exercises | $ 1 | 36 | 37 | ||
Stock option exercises (in shares) | 84,500 | ||||
Stock-based compensation | 195 | 195 | |||
Net income | 989 | 989 | |||
Balance at ending at Dec. 31, 2020 | $ 382 | 102,117 | (99,767) | $ 2,732 | |
Balance at ending (in shares) at Dec. 31, 2020 | 38,221,292 | ||||
Stock option exercises (in shares) | 535,100 | ||||
Stock-based compensation | 160 | $ 160 | |||
Net income | 2,320 | 2,320 | |||
Issuances of shares and stock option exercises | $ 6 | 228 | 234 | ||
Issuances of shares and stock option exercises (in shares) | 576,726 | ||||
Exercise of conversion rights – convertible loan, related party | $ 101 | 1,918 | 2,019 | ||
Exercise of conversion rights convertible loan, related party (in shares) | 10,095,555 | ||||
Balance at ending at Dec. 31, 2021 | $ 489 | $ 104,423 | $ (97,447) | $ 7,465 | |
Balance at ending (in shares) at Dec. 31, 2021 | 48,893,573 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | ||
Net Income | $ 2,320 | $ 989 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 454 | 358 |
Gain on forgiveness of PPP loan | (952) | |
Amortization of debt discount | 903 | 267 |
Share-based compensation | 160 | 195 |
Changes in assets and liabilities related to operations: | ||
Trade accounts receivable | (1,005) | (1,962) |
Inventories | (1,755) | (1,786) |
Prepaid expenses and other assets | (304) | (339) |
Accounts payable | 1,026 | 295 |
Deferred Revenue | 1,033 | (164) |
Accrued expenses | 481 | 113 |
Other long-term assets and liabilities | (40) | (27) |
Net cash used in operating activities | 2,321 | (2,061) |
Investing activities: | ||
Acquisition of equipment and leasehold improvements | (1,874) | (878) |
Net cash used in investing activities | (1,874) | (878) |
Financing activities: | ||
Principal payment on finance leases | (177) | (218) |
Proceeds from line of credit, bank | 500 | 2,000 |
Payments to the line of credit, bank | (1,000) | (2,000) |
Proceeds from PPP / SBA loan | 952 | |
Proceeds from line of credit, Beachcorp LLC | 24,750 | 14,515 |
Payments to line of credit, Beachcorp LLC | (25,554) | (12,584) |
Proceeds from related party term loan | 500 | |
Proceeds from exercise of stock options | 234 | 37 |
Net cash (used in) provided by financing activities | (747) | 2,702 |
Decrease in cash | (300) | (237) |
Cash at beginning of period | 957 | 1,194 |
Cash at end of period | 657 | 957 |
Supplemental cash flow information: | ||
Interest paid | 218 | 178 |
Supplemental non-cash investing and financing activities: | ||
Accounts payable incurred for the purchase of equipment and leasehold improvements | 414 | 83 |
Conversion of $2M convertible loan, related party | 2,000 | |
Interest paid via stock issuance, convertible loan, related party | 19 | |
Right of use asset acquired through operating lease | $ 10,505 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Statement of Cash Flows [Abstract] | |
Conversion of convertible loan, related party | $ 2,000,000 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | (1) Description of Business Nanophase Technologies Corporation (“Nanophase,” “Company,” “we,” “our,” or “us”) is a science-driven company which, along with its wholly owned subsidiary, Solésence, LLC (our “Solésence beauty science subsidiary”), is focused in various beauty- and life-science markets. Using consumer health as our end-goal and science and innovation to guide the path, skin health and medical diagnostics combined currently make up the great majority of our business and drive our forward growth strategy. We offer engineered materials, formulation development and commercial manufacturing through an integrated family of technologies. Our expertise in materials engineering allows us to effectively coat and disperse particles on a nano and “non-nano” scale for use in a variety of skin health markets, including for use in sunscreens as active ingredients and as fully developed prestige skin care and cosmetics products, marketed and sold through our Solésence beauty science subsidiary. In terms of our life sciences focus, we have seen current conditions significantly increase demand for our medical diagnostics ingredients, as testing for various viruses, most notably COVID-19, has become a critical use of our technology. We target markets , , 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. Active Stress Defense™ now refers to a suite of three proprietary technologies — Original Active Stress Defense™, Kleair™, and Bloom™ — all three of which either utilize a unique and proprietary, mineral-based technology or work synergistically with one of our unique and proprietary, mineral-based technologies to improve performance and/or aesthetics. Our ongoing innovation efforts include new IP in areas that advance environmental protection, align with market needs, and complement our existing technologies Through the creation of our Solésence beauty science subsidiary, we utilize our technology suite to manufacture and sell fully developed solutions to targeted customers in the skin care industry, typically in prestige skin care and cosmetics markets, 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 materials 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 Consolidated Statements of Operations, as it does not represent revenue directly from the sale of our products. The Company has recorded positive net income and positive cash flow from operations in 2021. We have also significantly improved our borrowing flexibility and capacity in early 2022, as discussed in Note 3. Based upon our financial performance, as well as our current liquidity and available borrowing capacity, there is not substantial doubt regarding the Company's ability to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Use of Estimates and Risks and Uncertainties The preparation of financial statements requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain assumptions are also necessary to assess the impact of risks and uncertainties on the financial statements, such as cash flow projections, availability of capital if needed to support the ongoing operations of the business, and our expected compliance with contractual commitments. These risks and uncertainties are further discussed in Note 12. Any changes in these assumptions or business plans could have a material impact on the financial statements. Cash The Cash balance on December 31, 2021 consists of funds borrowed from our Revolving Line of Credit, which is facilitated by Beachcorp, LLC. Our ability to access cash from our credit facility solely depends on carrying an Accounts Receivable balance greater than the outstanding loan balance in the Revolving Line of Credit. As part of the agreement, we are required to have a bank account in place to act as a depository account for our customers. This account is referred to as the Control Account. Furthermore, there is an Account Control Agreement in place which provides Beachcorp, LLC the ability to exercise control over the account via approval of requested transfers. According to our agreements with Beachcorp, LLC, Nanophase is to be the party initiating any transfers, whether to Nanophase or to Beachcorp, LLC, and approval to access any monies within this account can only be withheld by Beachcorp, LLC if the borrowing base falls below the Company’s qualified receivables, or if we are in arrears with respect to interest payments due Beachcorp, LLC. The failure of Nanophase to remedy the previously mentioned conditions could lead to Beachcorp, LLC gaining the right, through a “springing” feature administered by Libertyville Bank and Trust, a Wintrust Community Bank (“Libertyville”), to transfer funds to itself without direct approval from Nanophase. Cash is held at a federally insured institution, but our cash balances at times exceed insured limits. The Company has not experienced any losses related to these statutory limits. Trade Accounts Receivable Trade accounts receivable are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. We determine the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Trade accounts receivable are written off when deemed uncollectible. Recoveries of trade accounts receivable previously written off are recorded when received. Our typical credit terms are between thirty and sixty days from shipment and invoicing. Inventories Inventories are stated at the lower of cost, maintained on an average cost basis, or net realizable value. We have recorded allowances to reduce inventory relating to excess quantities of certain materials. Write-downs of inventories establish a new cost basis, which is not increased for future increases in market value of inventories or changes in estimated excess quantities. Equipment and Leasehold Improvements Equipment is stated at cost and is being depreciated over its estimated useful life ( 3 20 3 7 7 10 Long Lived Assets We review long-lived assets for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. We conduct long-lived asset impairment analyses in accordance with ASC 360-10-15, Impairment or Disposal of Long-Lived Assets Deferred Revenue The Company records a contract liability for development projects due to the contractual billing of these projects not always aligning with revenue recognition. In addition, it is now the Company’s policy to frequently require deposits relating to the initial production of our Solésence products. Of the total $ 1,444 70 25 5 Asset Retirement Obligations In connection with our leased facilities, we are required to remove certain leasehold improvements upon termination of our occupancy. We follow the provisions of the FASB issued ASC 410-20, Asset Retirement Obligations Activity in the asset retirement obligation account for the years ended December 31, is as follows: 2021 2020 Balance, beginning $ 214 $ 206 Accretion of liability due to passage of time 8 8 Amortization of asset due to passage of time — — Balance, ending $ 222 $ 214 Financial Instruments We follow ASC Topic 820, Fair Value Measurements and Disclosures Our financial instruments include cash, any cash equivalents, accounts receivable, accounts payable and accrued expenses, along with any short term and long-term borrowings as described in Note 3. There were no financial instruments adjusted to fair value on December 31, 2021 and 2020. Product Revenue Revenues are recognized 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. When our ingredients and finished products are shipped, with control being transferred at the shipping point almost universally, is the point in time at which we recognize the related revenue. 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. Contract balances for the year 2021 and 2020 Contract balances for the year ended December 31, 2021 is as follows: Accounts Contract Contract Balance, beginning $ 2,932 $ — $ 411 Balance, ending 3,937 — 1,444 Contract balances for the year ended December 31, 2020 is as follows: Accounts Contract Contract Balance, beginning $ 970 $ — $ 575 Balance, ending 2,932 — 411 Revenue recognized in the reporting period that was included in the contract liability balance at the beginning of the period was $ 260 468 Other Revenue Other revenue may include revenue from technology license fees and paid development projects. Technology license fees and paid development projects are recognized over time when the obligations under the agreed upon contractual arrangements are performed on our part. Revenue recognized over time was $ 150 701 Research and Development Expenses Research and development expenses are recognized as expense when incurred. Income Taxes We account for income taxes using the liability method. As such, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are calculated using the enacted tax rates and laws that are expected to be in effect when the anticipated reversal of these differences is scheduled to occur. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred tax assets will not be realized. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 We have not recorded a reserve for any tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. We file tax returns in all appropriate jurisdictions, which includes a federal tax return and Illinois state tax return. When and if applicable, potential interest and penalty costs are accrued as incurred, with expenses recognized in selling, general and administrative expenses in the statements of operations. As of December 31, 2021, and 2020, we had no liability for unrecognized tax benefits. Earnings Per Share Options to purchase approximately 2,018,000 387,000 Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: Years Ended December 31, 2021 2020 Numerator: (in Thousands) Net income $ 2,320 $ 989 Denominator: Weighted average number of basic common shares outstanding 45,021,173 38,158,586 Weighted average additional shares assuming conversion of in-the-money stock options to common shares 2,018,000 387,000 Weighted average number of diluted common shares outstanding 47,039,173 38,545,586 Basic earnings per common share: Net income per share – basic $ 0.05 $ 0.03 Diluted earnings per common share: Net income per share – diluted $ 0.05 $ 0.03 New Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost. The effective date for our adoption (as amended) of this updated Standard will be January 1, 2023. The Company is currently evaluating the impact of the adoption of this standard on the consolidated financial statements. |
Notes and Lines of Credit
Notes and Lines of Credit | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Notes and Lines of Credit | (3) Notes and Lines of Credit Notes and lines of credit consist of the following: As of December 31, 2021 2020 Rate Available Outstanding Available Outstanding Libertyville Bank & Trust (1) 4.25 % $ 30 $ — $ 30 $ — Libertyville Bank & Trust (2) 4.25 % n/a n/a 500 500 Libertyville Bank & Trust (2) 4.25 % 500 — n/a n/a Beachcorp, LLC (3) 5.25 % 3,467 1,351 2,776 2,155 Beachcorp (3) 5.25 % $ 1,000 $ 1,000 $ 500 $ 500 Secured convertible promissory note (4) 2.00 % — — 2,000 1,097 PPP Loan / Libertyville promissory note (5) 1.00 % — — 952 952 Beachcorp (6) 4.00 % n/a n/a n/a n/a Beachcorp (7) 4.00 % n/a n/a n/a n/a Strandler (8) 4.00 % n/a n/a n/a n/a 1) Since July 2014, we have maintained a bank-issued letter of credit for up to $ 30 in borrowings, with interest at the prime rate plus 1 %, to support our obligations under our Romeoville, Illinois facility lease agreement. No borrowings have been incurred under this promissory note. It is our intention to renew this note annually. Because there were no amounts outstanding on the note at any time during 2021 or 2020, we have recorded no related liability on our balance sheet. 2) The Company maintains a credit agreement with Libertyville which most recently served the primary purpose of insuring that it met its cash balance requirements at quarter end relating to a contract with the Company’s largest customer. Outstanding borrowings were $ 500 prime rate 1 3) On November 16, 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, and with principal due on December 31, 2020 ; and an asset-based revolving loan facility for the Company of up to $ 2,000 (the “A/R 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 a maturity of March 31, 2020 , as amended. On March 23, 2020, the Company and Beachcorp, LLC executed the First Amendment to our Master Agreement that extended the maturities of both the Term Loan and the A/R Revolver Facility to March 31, 2021 . Effective September 8, 2020, the Company and Beachcorp, LLC executed the Second Amendment to our Master Agreement that expanded the limit on the A/R Revolver Facility from $ 2,000 to $ 2,750 . On December 23, 2020, the Company and Beachcorp, LLC executed the Third Amendment to our Master Agreement that expanded the limit on the A/R Revolver Facility from $ 2,750 to $ 4,000 and extended the maturities of both the Term Loan and the A/R Revolver Facility to March 31, 2022 . Effective April 21, 2021 the Company and Beachcorp, LLC executed the Fourth Amendment to our Master Agreement that expanded the limit on the A/R Revolver Facility from $ 4,000 to $ 6,000 , changed the interest rate to fully floating and reduced the rate to the prime rate plus 2%, also extending the maturity of the A/R Revolver Facility to March 31, 2023 . This amendment also increased the amount of the Term Loan from $ 500 to $ 1,000 , changed the interest rate to fully floating and reduced the rate to the prime rate plus 2 %. The maturity of the Term Loan remained March 31, 2022 . The Term Loan and A/R Revolver Facility are secured by all the unencumbered assets of the Company and subordinated to Libertyville’s secured interest under the New Business Loan 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 A/R Revolver Facility. 4) On November 20, 2019, we entered into a 2 % Secured Convertible Promissory Note with Bradford T. Whitmore in the principal amount of $ 2,000 (the “Convertible Note”). The principal amount was payable in a single payment on May 15, 2024 (the “Maturity Date”). The principal amount of the Convertible Note accrued interest at the rate of 2.0% per year, which interest was 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 was 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 contained 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 was recorded as a discount on the convertible note. The discount was to be accreted to the convertible note over the life of the note using the straight-line method. The offset to these discounts was interest expense. The Company recognized amortized interest expense relating to this discount of $267 in 2020. Upon exercise of the conversion right in 2021, the acceleration of the remaining discount, in addition to the amortization of interest in 2021 prior to the conversion, amounted to $ 903 , all of which was recognized as interest expense. Mr. Whitmore chose to exercise his conversion rights effective May 7, 2021, with any interest to be paid in the form of shares, as allowed in the Convertible Note. In addition to the 10,000,000 shares issued upon conversion, the Company issued 95,555 shares of additional stock to Mr. Whitmore in lieu of cash for the $ 19 in accrued interest owed at May 7, 2021. The note and related interest obligations were paid in full and cancelled in May, 2021 via conversion. 5) On April 17, 2020, we entered into a Promissory Note (the “PPP Note”), dated as of April 16, 2020, in favor of Libertyville in the principal amount of $ 952 for our loan under the Paycheck Protection Program (“PPP”). The Company was allowed to apply for forgiveness of the amount due on the PPP Note in an amount equal to the sum of the following costs incurred during the 24-week period beginning on the date of the first disbursement of the 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. The principal amount of the PPP Note would have accrued interest at the rate of 1.00 % per year. The Company applied for, and received, PPP forgiveness during the first quarter of 2021. Under the terms of the PPP loan, it is subject to audit for six years from the date of forgiveness. If any portion of the PPP loan were to be deemed ineligible, the Company could be required to repay the funds. On December 31, 2021, the balance under the PPP note was $ 0 . 6) On January 28, 2022 the Company entered into an Amended and Restated Business Loan Agreement (the “A&R Loan Agreement”), which amends and restates the Master Agreement between the Company and Beachcorp, LLC, and a new promissory note in order to evidence the A/R Revolver facility, including an amendment to expand the limit on the A/R Revolver Facility from $6,000 to $8,000, reduce the interest rate to the prime rate plus 0.75%, and extend the maturity of the A/R Revolver Facility to March 31, 2024. 7) On January 28, 2022 the Company entered into the A&R Loan Agreement and a new revolving loan agreement (“Inventory Facility”) with Beachcorp, LLC, and a new promissory note in order to evidence the Inventory Facility. The maximum borrowing amount under the Inventory Facility is $4,000, with a borrowing base consisting of up to 50% of the value of qualified inventory of the Company. The interest rate for the Inventory Revolver is at the prime rate plus 0.75%, and it matures on March 31, 2024. 8) On January 28, 2022 the Company entered into an additional Business Loan Agreement (the “New Term Loan Agreement”) with Strandler, LLC, which effectively transferred or assigned the Term Loan to Strandler, LLC from Beachcorp, LLC. Interest on the New Term Loan is at the prime rate plus 0.75%, and it matures on March 31, 2024. Strandler, LLC is also an affiliate of Bradford T. Whitmore. Schedule of Related Parties Related party interest expense consists of the following: Twelve Months Ended December 31, 2021 2020 Interest expense, related parties $ 1,129 $ 452 Accrued interest consists of the following: As of December 31, 2021 2020 Accrued interest expense, related parties $ 13 $ 20 Outstanding balances associated with related parties are as follows: As of December 31, 2021 2020 Beachcorp, LLC $ 2,351 $ 2,655 Secured convertible promissory note — 1,097 Strandler, LLC n/a n/a Beachcorp, LLC and Strandler, LLC are affiliates of Mr. Bradford T. Whitmore, who beneficially owns a majority of the Company’s common stock and is the brother of Ms. R. Janet Whitmore, a director of the Company and the chair of the Company’s board of directors. The A/R Revolver Facility, the Inventory Facility and the New Term Loan are all secured by all the unencumbered assets of the Company and subordinated to the Company’s credit facility with Libertyville Bank & Trust. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | (4) Inventories Inventories consist of the following: As of December 31, 2021 2020 Raw materials $ 4,819 $ 2,825 Finished goods 1,682 1,545 Inventories, gross 6,501 4,370 Allowance for excess quantities (406 ) (30 ) Inventories, net $ 6,095 $ 4,340 |
Equipment and Leasehold Improve
Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Equipment and Leasehold Improvements | (5) Equipment and Leasehold Improvements Equipment and leasehold improvements consist of the following: As of December 31, 2021 2020 Machinery and equipment $ 18,289 $ 16,758 Office equipment 961 870 Office furniture 110 110 Leasehold improvements 4,900 4,850 Construction in progress 1,062 445 25,322 23,033 Less: Accumulated depreciation and amortization (20,610 ) (20,165 ) $ 4,712 $ 2,868 Depreciation expense was $ 444 348 |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease Commitments | (6) Lease Commitments 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. During the first seven months of the term of our newly leased building, we have subleased a portion of the unused floorspace on a temporary basis. This sublease may convert to a month-to-month lease upon expiration. As of December 31, 2021, the ROU asset had a balance of $ 12,075 1,983 10,306 1,827 431 1,651 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. The Company has elected to utilize the available practical expedient to not separate lease and non-lease components. Quantitative information regarding the Company’s leases is as follows: Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020 Components of lease cost Finance lease cost components: Amortization of finance lease assets $ 52 $ 70 Interest on finance lease liabilities 18 36 Total finance lease costs 70 106 Operating lease cost components: Operating lease cost 554 565 Variable lease cost 134 146 Short-term lease cost 49 33 Total operating lease costs 737 744 Total lease cost: $ 807 $ 850 Supplemental cash flow information related to leases is as follows for the years ended December 31, 2021 and 2020: 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 741 $ 690 Lease liabilities arising from obtaining right-of-use assets 10,505 — Weighted-average remaining lease term-finance leases (in years) 0.7 1.4 Weighted-average remaining lease term-operating leases (in years) 9.5 3.2 Weighted-average discount rate-finance leases 9.3 % 9.3 % Weighted-average discount rate-operating leases 7.5 % 14.3 % The future maturities of the Company’s finance and operating leases as of December 31, 2021 are as follows: Finance Operating Total 2022 $ 109 $ 1,456 $ 1,565 2023 6 2,099 2,105 2024 — 2,025 2,025 2025 — 1,470 1,470 2026 — 1,468 1,468 Thereafter — 8,668 8,668 Total payments $ 115 $ 17,186 $ 17,301 Less amounts representing interest (4 ) (4,897 ) (4,901 ) Total minimum payments required $ 111 $ 12,289 $ 12,400 The future maturities of the Company’s finance and operating leases as of December 31, 2020 were as follows: Finance Operating Total 2021 $ 196 $ 701 $ 897 2022 109 720 829 2023 5 705 710 2024 — 595 595 2025 — 1 1 Thereafter — — — Total payments $ 310 $ 2,722 $ 3,032 Less amounts representing interest (23 ) (640 ) (663 ) Total minimum payments required $ 287 $ 2,082 $ 2,369 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | (7) Accrued Expenses Accrued expenses consist of the following: As of December 31, 2021 2020 Accrued payroll and related expenses $ 471 $ 315 Accrued accounts payable 320 122 Tenant Security Deposit / Advance Rent 122 — Other 33 47 Total $ 946 $ 484 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (8) Income Taxes Our net income tax provision, including both current and deferred, related to U.S. federal and state income taxes, is $37. This is due to a change in law for the state of Illinois limiting the use of net loss deductions to $100 each year for tax years ending on or after December 31, 2021, and before December 31, 2024. Our current federal and deferred tax expenses are zero. A reconciliation of income tax expense to the amount computed by applying the Federal income tax rate to loss before provision for income taxes as of December 31, 2021 and 2020 is as follows: 2021 2020 Income tax credit at statutory rates $ 495 $ 208 Nondeductible expenses — 5 Tax Exempt Income - PPP Loan (271 ) — Permanent Tax Deduction Stock Options Exercised (63 ) — State income tax, net of federal benefits 177 74 Expiration of NOL & Credits 899 2,543 Tax basis in excess of book Convertible Debt — — Expiration of Stock Options 92 122 Other 2 (7 ) Change in valuation allowance (1,294 ) (2,945 ) TOTAL $ 37 — Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred income taxes consist of the following: As of December 31, 2021 2020 Deferred tax liabilities: Excess tax basis convertible debt $ — (257 ) Total deferred tax liabilities — (257 ) Deferred tax assets: Net operating loss carryforwards $ 14,566 $ 15,597 Inventory and other allowances 148 23 Charitable contribution & other carryforwards — 9 Excess (tax) book depreciation 31 375 Excess (tax) book amortization 63 61 Share-based compensation 308 624 Other accrued costs 161 138 Total deferred tax assets 15,277 16,827 Less: Valuation allowance (15,277 ) (16,570 ) Deferred income taxes $ — $ — The valuation allowance decreased approximately $ 1.3 6.4 1 6.3 We have federal net operating loss carryforwards for tax purposes of approximately $ 62 57 2022 2037 5 21 2029 2039 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Capital Stock | (9) Capital Stock As of December 31, 2021, and 2020, we had 24,088 10,000,000 |
Stock Options and Stock Grants
Stock Options and Stock Grants | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options and Stock Grants | (10) Stock Options and Stock Grants We have entered into stock option agreements with certain officers, employees and directors. The stock options granted prior to the adoption of the 2019 Equity Compensation Plan (the “2019 Plan”) on November 19, 2019 generally expire ten years from the date of grant. Future options to be granted under the 2019 Plan will expire seven years Employee Stock Options We follow ASC Topic 718, Share-Based Payments, in which compensation expense is recognized only for share-based payments expected to vest. Years ended 2021 2020 Share-based compensation expense $ 160 $ 195 Remaining unrecognized compensation expense $ 1,581 Remaining weighted average-period, expense recognition (years) 2.9 We use the Black-Scholes option pricing model to determine the fair value of stock-based compensation. The Black-Scholes model requires us to make several assumptions, including the estimated length of time employees will retain their vested stock options before exercising them (“expected term”), the estimated volatility of our common stock price over the expected term, and estimated forfeitures. Expected price volatility is based on the daily market rate changes of our stock. The active shares granted prior to fiscal 2020 had a contractual life of 10 years The following table illustrates the various assumptions used to calculate the Black-Scholes option pricing model for options granted for all years presented: Schedule of assumptions used to calculate Black-Scholes option pricing model for options granted Years Ended 2021 2020 Weighted-average risk-free interest rates: 1.4 % 0.5 % Dividend yield: 0 % 0 % Weighted-average expected life (years) of the option: 5 5 Weighted-average expected stock price volatility: 115 % 95 % Weighted-average fair value of the options granted: $ 2.59 $ 0.28 Additional disclosures for options granted for all years presented: Years Ended 2021 2020 Vesting period (years) of shares granted in period 3 3 Contractual life (years) of shares granted in period 7 7 Estimated forfeitures 4 % 4 % The following table summarizes the option activity for our employees and directors during the year ended December 31, 2021: Schedule of option activity Options Shares Weighted Weighted Aggregate Outstanding on January 1, 2021 3,412,686 $ 0.57 — — Granted 567,500 $ 4.14 — — Exercised (535,100 ) $ 0.44 — — Forfeited or expired (251,870 ) $ 1.09 — — Outstanding on December 31, 2021 3,193,216 $ 1.18 5.1 $ 10,267 Exercisable on December 31, 2021 2,189,378 $ 0.56 4.4 $ 8,405 Shares available for grant 1,887,500 The aggregate intrinsic value in the table above is based on our closing stock price of $ 4.40 Years ended 2021 2020 Shares exercised 535,100 84,500 Total intrinsic value $ 1,169 $ 10 Cash received $ 234 $ 37 Based on our election of the “with and without” approach, no realized tax benefits from stock options were recognized for the years ended December 31, 2021 and 2020. |
401(k) Profit-Sharing Plan
401(k) Profit-Sharing Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
401(k) Profit-Sharing Plan | (11) 401(k) Profit-Sharing Plan We have a 401(k) profit-sharing plan covering substantially all employees who meet defined service requirements. During 2020, we maintained a Company contribution program, in which 10 8 0.8 107 21 |
Significant Customers and Conti
Significant Customers and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Significant Customers and Contingencies | (12) Significant Customers and Contingencies We had five significant customers for the year ended December 31, 2021. For the years ended Customer # Product Category 2021 2020 1 Personal Care Ingredients 26 % 30 % 2 Solésence® 19 % 14 % 3 Solésence® 15 % 11 % 4 Solésence® 10 % 5 % 5 Advanced Materials (Medical Diagnostics customer) 8 % 20 % Total 78 % 80 % Accounts receivable balances for these five customers were approximately: For the years ended December 31, Customer # Product Category 2021 2020 1 Personal Care Ingredients $ 641 $ 381 2 Solésence® 534 342 3 Solésence® 1,048 116 4 Solésence® 239 863 5 Advanced Materials (Medical Diagnostics customer) -0- 735 Total $ 2,462 $ 2,437 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. 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 30 115 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. |
Business Segmentation and Geogr
Business Segmentation and Geographical Distribution | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segmentation and Geographical Distribution | (13) Business Segmentation and Geographical Distribution Revenue from international sources approximated $ 3,236 3,714 2,335 3,450 Our Operations comprise a single business segment and all of our long-lived assets are located within the United States. We categorize our revenue stream into three main product categories, Personal Care Ingredients, Advanced Materials and Solésence. The revenues for 2021 and 2020 by category are as follows: For the years ended December 31 Product Category 2021 2020 Solésence $ 18,175 $ 6,737 Personal Care Ingredients 7,739 5,536 Advanced Materials 3,561 4,850 Total Sales $ 29,475 $ 17,123 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | (14) Contingencies In December 2019, a novel strain of coronavirus (SARS-CoV-2) emerged in Wuhan, Hubei Province, China, which was proclaimed by the World Health Organization to have been the cause of a global pandemic (COVID-19). Some of the raw materials that are critical to the production of our products and parts that are critical to the operation of our equipment are sourced from single suppliers, suppliers from China and Korea, and in some cases, a single supplier from China. operations of our third-party suppliers were disrupted to a certain extent in 2020 from the pandemic, particularly related to receiving packaging for our Solésence products on a timely basis, we are currently seeing a more limited impact relating to COVID-19 on our suppliers. The biggest challenge in 2021 and during the beginning of 2022 related to the pandemic is now slowdowns in production and shipping due to capacity limitations which seems to be a function of company’s inability to keep up with renewed market demand. We typically maintain no less than one month’s supply of raw materials and parts that are sourced from sole suppliers and make efforts to identify additional suppliers who may be able to provide such raw materials or parts. During 2021, shortages of labor, which may have been related to COVID-19, created challenges to the Company as we navigated a rapidly growing business under these conditions. The Company is aware that such changes in its business as a result of COVID-19-related changes to our economy could occur, but is uncertain of the impacts of those changes on its consolidated statements of position, operations, or cash flows. The Company’s management believes any resulting cessations, reductions, and disruptions in its customers’ and suppliers’ operations would probably 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, we are unable to estimate the potential impact on our business as of the date of this filing. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates and Risks and Uncertainties | Use of Estimates and Risks and Uncertainties The preparation of financial statements requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain assumptions are also necessary to assess the impact of risks and uncertainties on the financial statements, such as cash flow projections, availability of capital if needed to support the ongoing operations of the business, and our expected compliance with contractual commitments. These risks and uncertainties are further discussed in Note 12. Any changes in these assumptions or business plans could have a material impact on the financial statements. |
Cash | Cash The Cash balance on December 31, 2021 consists of funds borrowed from our Revolving Line of Credit, which is facilitated by Beachcorp, LLC. Our ability to access cash from our credit facility solely depends on carrying an Accounts Receivable balance greater than the outstanding loan balance in the Revolving Line of Credit. As part of the agreement, we are required to have a bank account in place to act as a depository account for our customers. This account is referred to as the Control Account. Furthermore, there is an Account Control Agreement in place which provides Beachcorp, LLC the ability to exercise control over the account via approval of requested transfers. According to our agreements with Beachcorp, LLC, Nanophase is to be the party initiating any transfers, whether to Nanophase or to Beachcorp, LLC, and approval to access any monies within this account can only be withheld by Beachcorp, LLC if the borrowing base falls below the Company’s qualified receivables, or if we are in arrears with respect to interest payments due Beachcorp, LLC. The failure of Nanophase to remedy the previously mentioned conditions could lead to Beachcorp, LLC gaining the right, through a “springing” feature administered by Libertyville Bank and Trust, a Wintrust Community Bank (“Libertyville”), to transfer funds to itself without direct approval from Nanophase. Cash is held at a federally insured institution, but our cash balances at times exceed insured limits. The Company has not experienced any losses related to these statutory limits. |
Trade Accounts Receivable | Trade Accounts Receivable Trade accounts receivable are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. We determine the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Trade accounts receivable are written off when deemed uncollectible. Recoveries of trade accounts receivable previously written off are recorded when received. Our typical credit terms are between thirty and sixty days from shipment and invoicing. |
Inventories | Inventories Inventories are stated at the lower of cost, maintained on an average cost basis, or net realizable value. We have recorded allowances to reduce inventory relating to excess quantities of certain materials. Write-downs of inventories establish a new cost basis, which is not increased for future increases in market value of inventories or changes in estimated excess quantities. |
Equipment and Leasehold Improvements | Equipment and Leasehold Improvements Equipment is stated at cost and is being depreciated over its estimated useful life ( 3 20 3 7 7 10 |
Long Lived Assets | Long Lived Assets We review long-lived assets for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. We conduct long-lived asset impairment analyses in accordance with ASC 360-10-15, Impairment or Disposal of Long-Lived Assets |
Deferred Revenue | Deferred Revenue The Company records a contract liability for development projects due to the contractual billing of these projects not always aligning with revenue recognition. In addition, it is now the Company’s policy to frequently require deposits relating to the initial production of our Solésence products. Of the total $ 1,444 70 25 5 |
Asset Retirement Obligations | Asset Retirement Obligations In connection with our leased facilities, we are required to remove certain leasehold improvements upon termination of our occupancy. We follow the provisions of the FASB issued ASC 410-20, Asset Retirement Obligations Activity in the asset retirement obligation account for the years ended December 31, is as follows: 2021 2020 Balance, beginning $ 214 $ 206 Accretion of liability due to passage of time 8 8 Amortization of asset due to passage of time — — Balance, ending $ 222 $ 214 |
Financial Instruments | Financial Instruments We follow ASC Topic 820, Fair Value Measurements and Disclosures Our financial instruments include cash, any cash equivalents, accounts receivable, accounts payable and accrued expenses, along with any short term and long-term borrowings as described in Note 3. There were no financial instruments adjusted to fair value on December 31, 2021 and 2020. |
Product Revenue | Product Revenue Revenues are recognized 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. When our ingredients and finished products are shipped, with control being transferred at the shipping point almost universally, is the point in time at which we recognize the related revenue. 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. Contract balances for the year 2021 and 2020 Contract balances for the year ended December 31, 2021 is as follows: Accounts Contract Contract Balance, beginning $ 2,932 $ — $ 411 Balance, ending 3,937 — 1,444 Contract balances for the year ended December 31, 2020 is as follows: Accounts Contract Contract Balance, beginning $ 970 $ — $ 575 Balance, ending 2,932 — 411 Revenue recognized in the reporting period that was included in the contract liability balance at the beginning of the period was $ 260 468 |
Other Revenue | Other Revenue Other revenue may include revenue from technology license fees and paid development projects. Technology license fees and paid development projects are recognized over time when the obligations under the agreed upon contractual arrangements are performed on our part. Revenue recognized over time was $ 150 701 |
Research and Development Expenses | Research and Development Expenses Research and development expenses are recognized as expense when incurred. |
Income Taxes | Income Taxes We account for income taxes using the liability method. As such, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are calculated using the enacted tax rates and laws that are expected to be in effect when the anticipated reversal of these differences is scheduled to occur. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred tax assets will not be realized. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 We have not recorded a reserve for any tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. We file tax returns in all appropriate jurisdictions, which includes a federal tax return and Illinois state tax return. When and if applicable, potential interest and penalty costs are accrued as incurred, with expenses recognized in selling, general and administrative expenses in the statements of operations. As of December 31, 2021, and 2020, we had no liability for unrecognized tax benefits. |
Earnings Per Share | Earnings Per Share Options to purchase approximately 2,018,000 387,000 Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: Years Ended December 31, 2021 2020 Numerator: (in Thousands) Net income $ 2,320 $ 989 Denominator: Weighted average number of basic common shares outstanding 45,021,173 38,158,586 Weighted average additional shares assuming conversion of in-the-money stock options to common shares 2,018,000 387,000 Weighted average number of diluted common shares outstanding 47,039,173 38,545,586 Basic earnings per common share: Net income per share – basic $ 0.05 $ 0.03 Diluted earnings per common share: Net income per share – diluted $ 0.05 $ 0.03 |
New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost. The effective date for our adoption (as amended) of this updated Standard will be January 1, 2023. The Company is currently evaluating the impact of the adoption of this standard on the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Activity in the asset retirement obligation account for the years ended December 31, is as follows: | Activity in the asset retirement obligation account for the years ended December 31, is as follows: 2021 2020 Balance, beginning $ 214 $ 206 Accretion of liability due to passage of time 8 8 Amortization of asset due to passage of time — — Balance, ending $ 222 $ 214 |
Contract balances for the year 2021 and 2020 | Contract balances for the year 2021 and 2020 Contract balances for the year ended December 31, 2021 is as follows: Accounts Contract Contract Balance, beginning $ 2,932 $ — $ 411 Balance, ending 3,937 — 1,444 Contract balances for the year ended December 31, 2020 is as follows: Accounts Contract Contract Balance, beginning $ 970 $ — $ 575 Balance, ending 2,932 — 411 |
Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: | Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: Years Ended December 31, 2021 2020 Numerator: (in Thousands) Net income $ 2,320 $ 989 Denominator: Weighted average number of basic common shares outstanding 45,021,173 38,158,586 Weighted average additional shares assuming conversion of in-the-money stock options to common shares 2,018,000 387,000 Weighted average number of diluted common shares outstanding 47,039,173 38,545,586 Basic earnings per common share: Net income per share – basic $ 0.05 $ 0.03 Diluted earnings per common share: Net income per share – diluted $ 0.05 $ 0.03 |
Notes and Lines of Credit (Tabl
Notes and Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Notes and lines of credit consist of the following: | Notes and lines of credit consist of the following: As of December 31, 2021 2020 Rate Available Outstanding Available Outstanding Libertyville Bank & Trust (1) 4.25 % $ 30 $ — $ 30 $ — Libertyville Bank & Trust (2) 4.25 % n/a n/a 500 500 Libertyville Bank & Trust (2) 4.25 % 500 — n/a n/a Beachcorp, LLC (3) 5.25 % 3,467 1,351 2,776 2,155 Beachcorp (3) 5.25 % $ 1,000 $ 1,000 $ 500 $ 500 Secured convertible promissory note (4) 2.00 % — — 2,000 1,097 PPP Loan / Libertyville promissory note (5) 1.00 % — — 952 952 Beachcorp (6) 4.00 % n/a n/a n/a n/a Beachcorp (7) 4.00 % n/a n/a n/a n/a Strandler (8) 4.00 % n/a n/a n/a n/a 1) Since July 2014, we have maintained a bank-issued letter of credit for up to $ 30 in borrowings, with interest at the prime rate plus 1 %, to support our obligations under our Romeoville, Illinois facility lease agreement. No borrowings have been incurred under this promissory note. It is our intention to renew this note annually. Because there were no amounts outstanding on the note at any time during 2021 or 2020, we have recorded no related liability on our balance sheet. 2) The Company maintains a credit agreement with Libertyville which most recently served the primary purpose of insuring that it met its cash balance requirements at quarter end relating to a contract with the Company’s largest customer. Outstanding borrowings were $ 500 prime rate 1 3) On November 16, 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, and with principal due on December 31, 2020 ; and an asset-based revolving loan facility for the Company of up to $ 2,000 (the “A/R 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 a maturity of March 31, 2020 , as amended. On March 23, 2020, the Company and Beachcorp, LLC executed the First Amendment to our Master Agreement that extended the maturities of both the Term Loan and the A/R Revolver Facility to March 31, 2021 . Effective September 8, 2020, the Company and Beachcorp, LLC executed the Second Amendment to our Master Agreement that expanded the limit on the A/R Revolver Facility from $ 2,000 to $ 2,750 . On December 23, 2020, the Company and Beachcorp, LLC executed the Third Amendment to our Master Agreement that expanded the limit on the A/R Revolver Facility from $ 2,750 to $ 4,000 and extended the maturities of both the Term Loan and the A/R Revolver Facility to March 31, 2022 . Effective April 21, 2021 the Company and Beachcorp, LLC executed the Fourth Amendment to our Master Agreement that expanded the limit on the A/R Revolver Facility from $ 4,000 to $ 6,000 , changed the interest rate to fully floating and reduced the rate to the prime rate plus 2%, also extending the maturity of the A/R Revolver Facility to March 31, 2023 . This amendment also increased the amount of the Term Loan from $ 500 to $ 1,000 , changed the interest rate to fully floating and reduced the rate to the prime rate plus 2 %. The maturity of the Term Loan remained March 31, 2022 . The Term Loan and A/R Revolver Facility are secured by all the unencumbered assets of the Company and subordinated to Libertyville’s secured interest under the New Business Loan 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 A/R Revolver Facility. 4) On November 20, 2019, we entered into a 2 % Secured Convertible Promissory Note with Bradford T. Whitmore in the principal amount of $ 2,000 (the “Convertible Note”). The principal amount was payable in a single payment on May 15, 2024 (the “Maturity Date”). The principal amount of the Convertible Note accrued interest at the rate of 2.0% per year, which interest was 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 was 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 contained 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 was recorded as a discount on the convertible note. The discount was to be accreted to the convertible note over the life of the note using the straight-line method. The offset to these discounts was interest expense. The Company recognized amortized interest expense relating to this discount of $267 in 2020. Upon exercise of the conversion right in 2021, the acceleration of the remaining discount, in addition to the amortization of interest in 2021 prior to the conversion, amounted to $ 903 , all of which was recognized as interest expense. Mr. Whitmore chose to exercise his conversion rights effective May 7, 2021, with any interest to be paid in the form of shares, as allowed in the Convertible Note. In addition to the 10,000,000 shares issued upon conversion, the Company issued 95,555 shares of additional stock to Mr. Whitmore in lieu of cash for the $ 19 in accrued interest owed at May 7, 2021. The note and related interest obligations were paid in full and cancelled in May, 2021 via conversion. 5) On April 17, 2020, we entered into a Promissory Note (the “PPP Note”), dated as of April 16, 2020, in favor of Libertyville in the principal amount of $ 952 for our loan under the Paycheck Protection Program (“PPP”). The Company was allowed to apply for forgiveness of the amount due on the PPP Note in an amount equal to the sum of the following costs incurred during the 24-week period beginning on the date of the first disbursement of the 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. The principal amount of the PPP Note would have accrued interest at the rate of 1.00 % per year. The Company applied for, and received, PPP forgiveness during the first quarter of 2021. Under the terms of the PPP loan, it is subject to audit for six years from the date of forgiveness. If any portion of the PPP loan were to be deemed ineligible, the Company could be required to repay the funds. On December 31, 2021, the balance under the PPP note was $ 0 . 6) On January 28, 2022 the Company entered into an Amended and Restated Business Loan Agreement (the “A&R Loan Agreement”), which amends and restates the Master Agreement between the Company and Beachcorp, LLC, and a new promissory note in order to evidence the A/R Revolver facility, including an amendment to expand the limit on the A/R Revolver Facility from $6,000 to $8,000, reduce the interest rate to the prime rate plus 0.75%, and extend the maturity of the A/R Revolver Facility to March 31, 2024. 7) On January 28, 2022 the Company entered into the A&R Loan Agreement and a new revolving loan agreement (“Inventory Facility”) with Beachcorp, LLC, and a new promissory note in order to evidence the Inventory Facility. The maximum borrowing amount under the Inventory Facility is $4,000, with a borrowing base consisting of up to 50% of the value of qualified inventory of the Company. The interest rate for the Inventory Revolver is at the prime rate plus 0.75%, and it matures on March 31, 2024. 8) On January 28, 2022 the Company entered into an additional Business Loan Agreement (the “New Term Loan Agreement”) with Strandler, LLC, which effectively transferred or assigned the Term Loan to Strandler, LLC from Beachcorp, LLC. Interest on the New Term Loan is at the prime rate plus 0.75%, and it matures on March 31, 2024. Strandler, LLC is also an affiliate of Bradford T. Whitmore. |
Schedule of Related Parties | Schedule of Related Parties Related party interest expense consists of the following: Twelve Months Ended December 31, 2021 2020 Interest expense, related parties $ 1,129 $ 452 Accrued interest consists of the following: As of December 31, 2021 2020 Accrued interest expense, related parties $ 13 $ 20 Outstanding balances associated with related parties are as follows: As of December 31, 2021 2020 Beachcorp, LLC $ 2,351 $ 2,655 Secured convertible promissory note — 1,097 Strandler, LLC n/a n/a |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories consist of the following: | Inventories consist of the following: As of December 31, 2021 2020 Raw materials $ 4,819 $ 2,825 Finished goods 1,682 1,545 Inventories, gross 6,501 4,370 Allowance for excess quantities (406 ) (30 ) Inventories, net $ 6,095 $ 4,340 |
Equipment and Leasehold Impro_2
Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Equipment and leasehold improvements consist of the following: | Equipment and leasehold improvements consist of the following: As of December 31, 2021 2020 Machinery and equipment $ 18,289 $ 16,758 Office equipment 961 870 Office furniture 110 110 Leasehold improvements 4,900 4,850 Construction in progress 1,062 445 25,322 23,033 Less: Accumulated depreciation and amortization (20,610 ) (20,165 ) $ 4,712 $ 2,868 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Quantitative information regarding the Company’s leases is as follows: | Quantitative information regarding the Company’s leases is as follows: Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020 Components of lease cost Finance lease cost components: Amortization of finance lease assets $ 52 $ 70 Interest on finance lease liabilities 18 36 Total finance lease costs 70 106 Operating lease cost components: Operating lease cost 554 565 Variable lease cost 134 146 Short-term lease cost 49 33 Total operating lease costs 737 744 Total lease cost: $ 807 $ 850 |
Supplemental cash flow information related to leases is as follows for the years ended December 31, 2021 and 2020: | Supplemental cash flow information related to leases is as follows for the years ended December 31, 2021 and 2020: 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 741 $ 690 Lease liabilities arising from obtaining right-of-use assets 10,505 — Weighted-average remaining lease term-finance leases (in years) 0.7 1.4 Weighted-average remaining lease term-operating leases (in years) 9.5 3.2 Weighted-average discount rate-finance leases 9.3 % 9.3 % Weighted-average discount rate-operating leases 7.5 % 14.3 % |
The future maturities of the Company’s finance and operating leases as of December 31, 2021 are as follows: | The future maturities of the Company’s finance and operating leases as of December 31, 2021 are as follows: Finance Operating Total 2022 $ 109 $ 1,456 $ 1,565 2023 6 2,099 2,105 2024 — 2,025 2,025 2025 — 1,470 1,470 2026 — 1,468 1,468 Thereafter — 8,668 8,668 Total payments $ 115 $ 17,186 $ 17,301 Less amounts representing interest (4 ) (4,897 ) (4,901 ) Total minimum payments required $ 111 $ 12,289 $ 12,400 The future maturities of the Company’s finance and operating leases as of December 31, 2020 were as follows: Finance Operating Total 2021 $ 196 $ 701 $ 897 2022 109 720 829 2023 5 705 710 2024 — 595 595 2025 — 1 1 Thereafter — — — Total payments $ 310 $ 2,722 $ 3,032 Less amounts representing interest (23 ) (640 ) (663 ) Total minimum payments required $ 287 $ 2,082 $ 2,369 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued expenses consist of the following: | Accrued expenses consist of the following: As of December 31, 2021 2020 Accrued payroll and related expenses $ 471 $ 315 Accrued accounts payable 320 122 Tenant Security Deposit / Advance Rent 122 — Other 33 47 Total $ 946 $ 484 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
A reconciliation of income tax expense to the amount computed by applying the Federal income tax rate to loss before provision for income taxes as of December 31, 2021 and 2020 is as follows: | A reconciliation of income tax expense to the amount computed by applying the Federal income tax rate to loss before provision for income taxes as of December 31, 2021 and 2020 is as follows: 2021 2020 Income tax credit at statutory rates $ 495 $ 208 Nondeductible expenses — 5 Tax Exempt Income - PPP Loan (271 ) — Permanent Tax Deduction Stock Options Exercised (63 ) — State income tax, net of federal benefits 177 74 Expiration of NOL & Credits 899 2,543 Tax basis in excess of book Convertible Debt — — Expiration of Stock Options 92 122 Other 2 (7 ) Change in valuation allowance (1,294 ) (2,945 ) TOTAL $ 37 — |
Significant components of our deferred income taxes consist of the following: | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred income taxes consist of the following: As of December 31, 2021 2020 Deferred tax liabilities: Excess tax basis convertible debt $ — (257 ) Total deferred tax liabilities — (257 ) Deferred tax assets: Net operating loss carryforwards $ 14,566 $ 15,597 Inventory and other allowances 148 23 Charitable contribution & other carryforwards — 9 Excess (tax) book depreciation 31 375 Excess (tax) book amortization 63 61 Share-based compensation 308 624 Other accrued costs 161 138 Total deferred tax assets 15,277 16,827 Less: Valuation allowance (15,277 ) (16,570 ) Deferred income taxes $ — $ — |
Stock Options and Stock Grants
Stock Options and Stock Grants (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
We follow ASC Topic 718, Share-Based Payments, in which compensation expense is recognized only for share-based payments expected to vest. | We follow ASC Topic 718, Share-Based Payments, in which compensation expense is recognized only for share-based payments expected to vest. Years ended 2021 2020 Share-based compensation expense $ 160 $ 195 Remaining unrecognized compensation expense $ 1,581 Remaining weighted average-period, expense recognition (years) 2.9 |
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 options granted for all years presented: Schedule of assumptions used to calculate Black-Scholes option pricing model for options granted Years Ended 2021 2020 Weighted-average risk-free interest rates: 1.4 % 0.5 % Dividend yield: 0 % 0 % Weighted-average expected life (years) of the option: 5 5 Weighted-average expected stock price volatility: 115 % 95 % Weighted-average fair value of the options granted: $ 2.59 $ 0.28 |
Additional disclosures for options granted for all years presented: | Additional disclosures for options granted for all years presented: Years Ended 2021 2020 Vesting period (years) of shares granted in period 3 3 Contractual life (years) of shares granted in period 7 7 Estimated forfeitures 4 % 4 % |
Schedule of option activity | The following table summarizes the option activity for our employees and directors during the year ended December 31, 2021: Schedule of option activity Options Shares Weighted Weighted Aggregate Outstanding on January 1, 2021 3,412,686 $ 0.57 — — Granted 567,500 $ 4.14 — — Exercised (535,100 ) $ 0.44 — — Forfeited or expired (251,870 ) $ 1.09 — — Outstanding on December 31, 2021 3,193,216 $ 1.18 5.1 $ 10,267 Exercisable on December 31, 2021 2,189,378 $ 0.56 4.4 $ 8,405 Shares available for grant 1,887,500 |
The aggregate intrinsic value in the table above is based on our closing stock price of $4.40 on the last business day for the year ended December 31, 2021. | The aggregate intrinsic value in the table above is based on our closing stock price of $ 4.40 Years ended 2021 2020 Shares exercised 535,100 84,500 Total intrinsic value $ 1,169 $ 10 Cash received $ 234 $ 37 |
Significant Customers and Con_2
Significant Customers and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
We had five significant customers for the year ended December 31, 2021. | We had five significant customers for the year ended December 31, 2021. For the years ended Customer # Product Category 2021 2020 1 Personal Care Ingredients 26 % 30 % 2 Solésence® 19 % 14 % 3 Solésence® 15 % 11 % 4 Solésence® 10 % 5 % 5 Advanced Materials (Medical Diagnostics customer) 8 % 20 % Total 78 % 80 % |
Accounts receivable balances for these five customers were approximately: | Accounts receivable balances for these five customers were approximately: For the years ended December 31, Customer # Product Category 2021 2020 1 Personal Care Ingredients $ 641 $ 381 2 Solésence® 534 342 3 Solésence® 1,048 116 4 Solésence® 239 863 5 Advanced Materials (Medical Diagnostics customer) -0- 735 Total $ 2,462 $ 2,437 |
Business Segmentation and Geo_2
Business Segmentation and Geographical Distribution (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
The revenues for 2021 and 2020 by category are as follows: | Our Operations comprise a single business segment and all of our long-lived assets are located within the United States. We categorize our revenue stream into three main product categories, Personal Care Ingredients, Advanced Materials and Solésence. The revenues for 2021 and 2020 by category are as follows: For the years ended December 31 Product Category 2021 2020 Solésence $ 18,175 $ 6,737 Personal Care Ingredients 7,739 5,536 Advanced Materials 3,561 4,850 Total Sales $ 29,475 $ 17,123 |
Activity in the asset retiremen
Activity in the asset retirement obligation account for the years ended December 31, is as follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Balance, beginning | $ 214 | $ 206 |
Accretion of liability due to passage of time | 8 | 8 |
Amortization of asset due to passage of time | ||
Balance, ending | $ 222 | $ 214 |
Contract balances for the year
Contract balances for the year 2021 and 2020 (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | |||
Accounts receivable net | $ 3,937 | $ 2,932 | $ 970 |
Contract liability | $ 1,444 | $ 411 | $ 575 |
Earnings applicable to common s
Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: (in Thousands) | ||
Net income | $ 2,320 | $ 989 |
Denominator: | ||
Weighted average number of basic common shares outstanding | 45,021,173 | 38,158,586 |
Weighted average additional shares assuming conversion of in-the-money stock options to common shares | 2,018,000 | 387,000 |
Weighted average number of diluted common shares outstanding | 47,039,173 | 38,545,586 |
Basic earnings per common share: | ||
Net income per share – basic | $ 0.05 | $ 0.03 |
Diluted earnings per common share: | ||
Net income per share – diluted | $ 0.05 | $ 0.03 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Deferred revenue | $ 1,444 | |
Revenue from contract with customer excluding assessed tax | 260 | $ 468 |
Revenue | $ 29,475 | $ 17,123 |
Tax rate reconciliation and settlement | 50.00% | |
Options included in computation of earnings per share | 2,018,000 | 387,000 |
Product and Service, Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Revenue | $ 150 | $ 701 |
Year 2021 [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Percentage of prepayments | 70.00% | |
Year 2022 [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Percentage of prepayments | 25.00% | |
Year 2023 [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Percentage of prepayments | 5.00% | |
Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment leasehold improvements and leased assets useful life | 3 years | |
Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment leasehold improvements and leased assets useful life | 20 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment leasehold improvements and leased assets useful life | 3 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment leasehold improvements and leased assets useful life | 7 years | |
Other Capitalized Property Plant and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment leasehold improvements and leased assets useful life | 7 years | |
Other Capitalized Property Plant and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment leasehold improvements and leased assets useful life | 10 years |
Notes and lines of credit consi
Notes and lines of credit consist of the following: (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jan. 28, 2022 | May 07, 2021 | Apr. 21, 2021 | Dec. 23, 2020 | Mar. 23, 2020 | Nov. 20, 2019 | Nov. 16, 2018 | Jul. 31, 2014 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 08, 2020 | Apr. 17, 2020 |
Debt Instrument [Line Items] | ||||||||||||
Interest Expense | $ 1,154 | $ 496 | ||||||||||
Whitmore [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Conversion of Stock, Shares Issued | 10,000,000 | |||||||||||
Stock Issued During Period, Shares, New Issues | 95,555 | |||||||||||
Cash | $ 19 | |||||||||||
2% Secured Convertible Promissory Note Due on May 15, 2024 [Member] | Bradford T. Whitmore [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | |||||||||||
Debt Instrument, Face Amount | $ 2,000 | |||||||||||
Debt Instrument, Interest Rate Terms | interest was payable semi-annually | |||||||||||
Debt Instrument, Date of First Required Payment | May 15, 2020 | |||||||||||
Debt Instrument, Convertible, Conversion Price | $ 0.20 | |||||||||||
Share Price | $ 0.32 | |||||||||||
Debt Instrument, Unamortized Discount | $ 1,200,000 | |||||||||||
Promissory Note (PPP) [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term Debt | 0 | |||||||||||
Promissory Note (PPP) [Member] | Libertyville [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |||||||||||
Debt Instrument, Face Amount | $ 952 | |||||||||||
Credit Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outsanding balance | $ 500 | |||||||||||
Business Loan Agreement [Member] | Beachcorp, LLC [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Borrowing Capacity, Description | the Company entered into an Amended and Restated Business Loan Agreement (the “A&R Loan Agreement”), which amends and restates the Master Agreement between the Company and Beachcorp, LLC, and a new promissory note in order to evidence the A/R Revolver facility, including an amendment to expand the limit on the A/R Revolver Facility from $6,000 to $8,000, reduce the interest rate to the prime rate plus 0.75%, and extend the maturity of the A/R Revolver Facility to March 31, 2024. | |||||||||||
Letter of Credit [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Short-term Debt | $ 30 | |||||||||||
Debt Instrument, Description of Variable Rate Basis | prime rate | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||
Letter of Credit [Member] | New Business Loan Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Description of Variable Rate Basis | prime rate | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||
Libertyville Bank And Trust [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, description | Libertyville Bank & Trust | |||||||||||
Line of Credit Facility, Commitment Fee Percentage | 4.25% | |||||||||||
Available | $ 30 | 30 | ||||||||||
Outsanding balance | ||||||||||||
Libertyville Bank And Trust One [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, description | Libertyville Bank & Trust | |||||||||||
Line of Credit Facility, Commitment Fee Percentage | 4.25% | |||||||||||
Available | 500 | |||||||||||
Outsanding balance | 500 | |||||||||||
Libertyville Bank And Trust Two [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, description | Libertyville Bank & Trust | |||||||||||
Line of Credit Facility, Commitment Fee Percentage | 4.25% | |||||||||||
Available | $ 500 | |||||||||||
Outsanding balance | ||||||||||||
Beachcorp, LLC [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, description | Beachcorp, LLC | |||||||||||
Line of Credit Facility, Commitment Fee Percentage | 5.25% | |||||||||||
Available | $ 3,467 | 2,776 | ||||||||||
Outsanding balance | $ 1,351 | 2,155 | ||||||||||
Beachcorp LLC One [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, description | Beachcorp | |||||||||||
Line of Credit Facility, Commitment Fee Percentage | 5.25% | |||||||||||
Available | $ 1,000 | 500 | ||||||||||
Outsanding balance | $ 1,000 | 500 | ||||||||||
2% Secured Convertible Promissory Note Due on May 15, 2024 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, description | Secured convertible promissory note | |||||||||||
Line of Credit Facility, Commitment Fee Percentage | 2.00% | |||||||||||
Available | 2,000 | |||||||||||
Outsanding balance | 1,097 | |||||||||||
PPP Loan Libertyville Promissory Note [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, description | PPP Loan / Libertyville promissory note | |||||||||||
Line of Credit Facility, Commitment Fee Percentage | 1.00% | |||||||||||
Available | 952 | |||||||||||
Outsanding balance | $ 952 | |||||||||||
Beachcorp LLC Three [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, description | Beachcorp | |||||||||||
Line of Credit Facility, Commitment Fee Percentage | 4.00% | |||||||||||
Beachcorp LLC Four [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, description | Beachcorp | |||||||||||
Line of Credit Facility, Commitment Fee Percentage | 4.00% | |||||||||||
Strandler LLC [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, description | Strandler | |||||||||||
Line of Credit Facility, Commitment Fee Percentage | 4.00% | |||||||||||
Term Loan [Member] | Business Loan Agreement [Member] | Beachcorp, LLC [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outsanding balance | $ 500 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | |||||||||||
Debt Instrument, Maturity Date | Dec. 31, 2020 | |||||||||||
Term Loan [Member] | Fourth Amendment [Member] | Beachcorp, LLC [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outsanding balance | $ 1,000 | |||||||||||
Debt Instrument, Maturity Date | Mar. 31, 2022 | |||||||||||
Revolving Credit Facility [Member] | Business Loan Agreement [Member] | Beachcorp, LLC [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outsanding balance | $ 2,000 | |||||||||||
Debt Instrument, Description of Variable Rate Basis | prime rate | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||||||||||
Line of Credit Facility, Expiration Date | Mar. 31, 2020 | |||||||||||
Revolving Credit Facility [Member] | Business Loan Agreement [Member] | Beachcorp, LLC [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | |||||||||||
Revolving Credit Facility [Member] | Second Amendment [Member] | Beachcorp, LLC [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outsanding balance | $ 2,750 | |||||||||||
Revolving Credit Facility [Member] | Third Amendment [Member] | Beachcorp, LLC [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outsanding balance | $ 4,000 | |||||||||||
Revolving Credit Facility [Member] | Fourth Amendment [Member] | Beachcorp, LLC [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outsanding balance | $ 6,000 | |||||||||||
Debt Instrument, Description of Variable Rate Basis | prime rate | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||||
Line of Credit Facility, Expiration Date | Mar. 31, 2023 | |||||||||||
Revolving Credit Facility [Member] | A And R Loan Agreement [Member] | Beachcorp, LLC [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Borrowing Capacity, Description | the Company entered into the A&R Loan Agreement and a new revolving loan agreement (“Inventory Facility”) with Beachcorp, LLC, and a new promissory note in order to evidence the Inventory Facility. The maximum borrowing amount under the Inventory Facility is $4,000, with a borrowing base consisting of up to 50% of the value of qualified inventory of the Company. The interest rate for the Inventory Revolver is at the prime rate plus 0.75%, and it matures on March 31, 2024. | |||||||||||
Revolving Credit Facility [Member] | A And R Loan Agreement [Member] | Strandler LLC [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Borrowing Capacity, Description | the Company entered into an additional Business Loan Agreement (the “New Term Loan Agreement”) with Strandler, LLC, which effectively transferred or assigned the Term Loan to Strandler, LLC from Beachcorp, LLC. Interest on the New Term Loan is at the prime rate plus 0.75%, and it matures on March 31, 2024. Strandler, LLC is also an affiliate of Bradford T. Whitmore. | |||||||||||
Term Loan and The Revolver Facility [Member] | First Amendment [Member] | Beachcorp, LLC [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Maturity Date | Mar. 31, 2022 | Mar. 31, 2021 | ||||||||||
Related Party Credit Facilities [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest Expense | $ 903 |
Schedule of Related Parties (De
Schedule of Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||
Interest expense, related parties | $ 1,129 | $ 452 |
Secured Convertible Promissory Note [Member] | ||
Line of Credit Facility [Line Items] | ||
Due to Related Parties | 0 | 1,097 |
Beachcorp, LLC [Member] | ||
Line of Credit Facility [Line Items] | ||
Due to Related Parties | 2,351 | 2,655 |
Related Party Transaction [Member] | ||
Line of Credit Facility [Line Items] | ||
Accrued interest expense, related parties | $ 13 | $ 20 |
Inventories consist of the foll
Inventories consist of the following: (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,819 | $ 2,825 |
Finished goods | 1,682 | 1,545 |
Inventories, gross | 6,501 | 4,370 |
Allowance for excess quantities | (406) | (30) |
Inventories, net | $ 6,095 | $ 4,340 |
Equipment and leasehold impro_3
Equipment and leasehold improvements consist of the following: (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment,gross | $ 25,322 | $ 23,033 |
Less: Accumulated depreciation and amortization | (20,610) | (20,165) |
Property, Plant and Equipment, Net, Total | 4,712 | 2,868 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment,gross | 18,289 | 16,758 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment,gross | 961 | 870 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment,gross | 110 | 110 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment,gross | 4,900 | 4,850 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment,gross | $ 1,062 | $ 445 |
Equipment and Leasehold Impro_4
Equipment and Leasehold Improvements (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 444 | $ 348 |
Quantitative information regard
Quantitative information regarding the Company’s leases is as follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finance lease cost components: | ||
Amortization of finance lease assets | $ 52 | $ 70 |
Interest on finance lease liabilities | 18 | 36 |
Total finance lease costs | 70 | 106 |
Operating lease cost components: | ||
Operating lease cost | 554 | 565 |
Variable lease cost | 134 | 146 |
Short-term lease cost | 49 | 33 |
Total operating lease costs | 737 | 744 |
Total lease cost: | $ 807 | $ 850 |
Supplemental cash flow informat
Supplemental cash flow information related to leases is as follows for the years ended December 31, 2021 and 2020: (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating cash outflow from operating leases | $ 741 | $ 690 |
Lease liabilities arising from obtaining right-of-use assets | $ 10,505 | |
Weighted-average remaining lease term-finance leases (in years) | 8 months 12 days | 1 year 4 months 24 days |
Weighted-average remaining lease term-operating leases (in years) | 9 years 6 months | 3 years 2 months 12 days |
Weighted-average discount rate-finance leases | 9.30% | 9.30% |
Weighted-average discount rate-operating leases | 7.50% | 14.30% |
The future maturities of the Co
The future maturities of the Company’s finance and operating leases as of December 31, 2021 are as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Finance Leases, Year 1 | $ 109 | $ 196 |
Operating Leases, Year 1 | 1,456 | 701 |
Total, Year 1 | 1,565 | 897 |
Finance Leases, Year 2 | 6 | 109 |
Operating Leases, Year 2 | 2,099 | 720 |
Total, Year 2 | 2,105 | 829 |
Finance Leases, Year 3 | 0 | 5 |
Operating Leases, Year 3 | 2,025 | 705 |
Total, Year 3 | 2,025 | 710 |
Operating Leases, Year 4 | 1,470 | 595 |
Total, Year 4 | 1,470 | 595 |
Operating Leases, Year 5 | 1,468 | 1 |
Total, Year 5 | 1,468 | 1 |
Operating Leases, thereafter | 8,668 | |
Total, thereafter | 8,668 | |
Finance Lease, Liability, Payment, Due | 115 | 310 |
Lessee, Operating Lease, Liability, to be Paid | 17,186 | 2,722 |
Total payments | 17,301 | 3,032 |
Finance Lease, Liability, Undiscounted Excess Amount | (4) | (23) |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (4,897) | (640) |
Less amounts representing interest | (4,901) | (663) |
Finance Leases, Total minimum payments required: | 111 | 287 |
Operating Leases, Total minimum payments required: | 12,289 | 2,082 |
Total, Total minimum payments required: | $ 12,400 | $ 2,369 |
Lease Commitments (Details Narr
Lease Commitments (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating leases, right of use | $ 12,075 | $ 1,827 |
Current portion of operating lease obligations | 1,983 | 431 |
Long-term portion of operating lease obligations | $ 10,306 | $ 1,651 |
Accrued expenses consist of the
Accrued expenses consist of the following: (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued payroll and related expenses | $ 471 | $ 315 |
Accrued accounts payable | 320 | 122 |
Tenant Security Deposit / Advance Rent | 122 | |
Other | 33 | 47 |
Total | $ 946 | $ 484 |
A reconciliation of income tax
A reconciliation of income tax expense to the amount computed by applying the Federal income tax rate to loss before provision for income taxes as of December 31, 2021 and 2020 is as follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax credit at statutory rates | $ 495 | $ 208 |
Nondeductible expenses | 5 | |
Tax Exempt Income - PPP Loan | (271) | |
Permanent Tax Deduction Stock Options Exercised | (63) | |
State income tax, net of federal benefits | 177 | 74 |
Expiration of NOL & Credits | 899 | 2,543 |
Tax basis in excess of book Convertible Debt | ||
Expiration of Stock Options | 92 | 122 |
Other | 2 | (7) |
Change in valuation allowance | (1,294) | (2,945) |
TOTAL | $ 37 |
Significant components of our d
Significant components of our deferred income taxes consist of the following: (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax liabilities: | ||
Excess tax basis convertible debt | $ (257) | |
Total deferred tax liabilities | (257) | |
Deferred tax assets: | ||
Net operating loss carryforwards | 14,566 | 15,597 |
Inventory and other allowances | 148 | 23 |
Charitable contribution & other carryforwards | 9 | |
Excess (tax) book depreciation | 31 | 375 |
Excess (tax) book amortization | 63 | 61 |
Share-based compensation | 308 | 624 |
Other accrued costs | 161 | 138 |
Total deferred tax assets | 15,277 | 16,827 |
Less: Valuation allowance | (15,277) | (16,570) |
Deferred income taxes |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Increase (decrease) in valuation allowance | $ 1,300 | $ 6,400 |
Net operating loss carryforwards | 1,000 | $ 6,300 |
Net operating loss carryforwards | 62,000 | |
Deferred Tax Assets, Tax Credit Carryforwards | $ 57,000 | |
Capital loss carryforwards expiration period start | 2029 | |
Capital loss carryforwards expiration period end | 2039 | |
Tax Year 2012 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 21,000 | |
Expiring Operating Loss Carry forwards [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 5,000 | |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Capital loss carryforwards expiration period start | 2022 | |
Capital loss carryforwards expiration period end | 2037 |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Preferred stock, shares authorized | 24,088 | 24,088 |
Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Authorized, unissued shares of common stock | 10,000,000 |
We follow ASC Topic 718, Share-
We follow ASC Topic 718, Share-Based Payments, in which compensation expense is recognized only for share-based payments expected to vest. (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining weighted average-period, expense recognition (years) | 2 years 10 months 25 days | |
Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 160 | $ 195 |
Remaining unrecognized compensation expense | $ 1,581 |
Schedule of assumptions used to
Schedule of assumptions used to calculate Black-Scholes option pricing model for options granted (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Weighted-average risk-free interest rates | 1.40% | 0.50% |
Dividend yield | 0.00% | 0.00% |
Weighted-average expected life (years) of the option | 5 years | 5 years |
Weighted-average expected stock price volatility | 115.00% | 95.00% |
Weighted-average fair value of the options granted | $ 2.59 | $ 0.28 |
Additional disclosures for opti
Additional disclosures for options granted for all years presented: (Details) - Share-based Payment Arrangement, Option [Member] | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (years) of shares granted in period | 3 years | 3 years |
Contractual life (years) of shares granted in period | 7 years | 7 years |
Estimated forfeitures | 4.00% | 4.00% |
Schedule of option activity (De
Schedule of option activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Shares Outstanding, Beginning | 3,412,686 |
Shares Outstanding Beginning, (per share) | $ / shares | $ 0.57 |
Granted | 567,500 |
Granted (per share) | $ / shares | $ 4.14 |
Exercised | (535,100) |
Exercised (per share) | $ / shares | $ 0.44 |
Forfeited or expired | (251,870) |
Forfeited or expired (per share) | $ / shares | $ 1.09 |
Shares Outstanding, Beginning | 3,193,216 |
Shares Outstanding Ending, (per share) | $ / shares | $ 1.18 |
Shares Outstanding (years) | 5 years 1 month 6 days |
Shares Outstanding (Intrinsic value) | $ | $ 10,267 |
Shares Exercisable | 2,189,378 |
Shares Exercisable, (per share) | $ / shares | $ 0.56 |
Shares Exercisable (years) | 4 years 4 months 24 days |
Shares Exercisable (Intrinsic value) | $ | $ 8,405 |
Shares for grants | 1,887,500 |
The aggregate intrinsic value i
The aggregate intrinsic value in the table above is based on our closing stock price of $4.40 on the last business day for the year ended December 31, 2021. (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares exercised | 535,100 | |
Cash received | $ 234 | $ 37 |
Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares exercised | 535,100 | 84,500 |
Total intrinsic value | $ 1,169 | $ 10 |
Cash received | $ 234 | $ 37 |
Stock Options and Stock Grant_2
Stock Options and Stock Grants (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
:Equity Compensation Plan 2019 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares based compensation payment award expiration period | 7 years |
Equity Compensation Plan 2010 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares based compensation payment award expiration period | 10 years |
401(k) Profit-Sharing Plan (Det
401(k) Profit-Sharing Plan (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Employer's matching contribution percentage | 10.00% | |
Percentage of employee's matching contribution | 8.00% | |
Participant salary percentage matched | 80.00% | |
Defined Contribution Plan, Cost | $ 107 | $ 21 |
We had five significant custome
We had five significant customers for the year ended December 31, 2021. (Details) - Customer Concentration Risk [Member] - Revenue Benchmark [Member] | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Customer One - Personal Care Ingredients [Member] | ||
Concentration Risk [Line Items] | ||
Revenue from customers | 26.00% | 30.00% |
Customer Two - Solesence [Member] | ||
Concentration Risk [Line Items] | ||
Revenue from customers | 19.00% | 14.00% |
Customer Three - Solesence [Member] | ||
Concentration Risk [Line Items] | ||
Revenue from customers | 15.00% | 11.00% |
Customer Four - Solesence [Member] | ||
Concentration Risk [Line Items] | ||
Revenue from customers | 10.00% | 5.00% |
Customer Five - Medical Diagnostics [Member] | ||
Concentration Risk [Line Items] | ||
Revenue from customers | 8.00% | 20.00% |
Customers One through Five [Member] | ||
Concentration Risk [Line Items] | ||
Revenue from customers | 78.00% | 80.00% |
Accounts receivable balances fo
Accounts receivable balances for these five customers were approximately: (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Total | $ 2,462 | $ 2,437 |
Customer One - Personal Care Ingredients [Member] | ||
Total | 641 | 381 |
Customer Two - Solesence [Member] | ||
Total | 534 | 342 |
Customer Three - Solesence [Member] | ||
Total | 1,048 | 116 |
Customer Four - Solesence [Member] | ||
Total | $ 239 | 863 |
Customer Five - Medical Diagnostics [Member] | ||
Total | $ 735 |
Significant Customers and Con_3
Significant Customers and Contingencies (Details Narrative) | Dec. 31, 2021 |
Supply Commitment [Line Items] | |
Equipment sale - net book value | 115.00% |
Supply Commitment [Member] | |
Supply Commitment [Line Items] | |
Equipment sale - net book value | 115.00% |
Equipment sale- original book value | 30.00% |
The revenues for 2021 and 2020
The revenues for 2021 and 2020 by category are as follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from External Customer [Line Items] | ||
Total revenue | $ 29,475 | $ 17,123 |
Personal Care Ingredients [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenue | 18,175 | 6,737 |
Advanced Materials [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenue | 7,739 | 5,536 |
Solesence [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenue | $ 3,561 | $ 4,850 |
Business Segmentation and Geo_3
Business Segmentation and Geographical Distribution (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Product [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 2,335 | $ 3,450 |
Non-US [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 3,236 | $ 3,714 |