Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jan. 31, 2014 | Mar. 06, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'FUELCELL ENERGY INC | ' |
Entity Central Index Key | '0000886128 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Jan-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Current Fiscal Year End Date | '--10-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 253,924,151 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $78,468 | $67,696 |
Restricted cash and cash equivalents - short term | 6,194 | 5,053 |
Accounts receivable, net | 33,831 | 49,116 |
Inventories | 51,852 | 56,185 |
Other current assets | 6,871 | 11,279 |
Total current assets | 177,216 | 189,329 |
Restricted cash and cash equivalents - long-term | 19,950 | 4,950 |
Property, plant and equipment, net | 23,947 | 24,225 |
Goodwill | 4,075 | 4,075 |
Intangible Assets | 9,592 | 9,592 |
Other assets, net | 5,944 | 5,465 |
Total assets | 240,724 | 237,636 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 6,914 | 6,931 |
Accounts payable | 18,397 | 24,535 |
Accrued liabilities | 10,599 | 21,912 |
Deferred revenue | 47,630 | 51,857 |
Preferred stock obligation of subsidiary | 962 | 1,028 |
Total current liabilities | 84,502 | 106,263 |
Long-term deferred revenue | 20,248 | 18,763 |
Long-term preferred stock obligation of subsidiary | 12,610 | 13,270 |
Long-term debt and other liabilities | 37,173 | 52,675 |
Total liabilities | 154,533 | 190,971 |
Redeemable preferred stock (liquidation preference of $64,020 at January 31, 2014 and October 31, 2013) | 59,857 | 59,857 |
Shareholders' equity (deficit) | ' | ' |
Common stock ($.0001 par value); 275,000,000 shares authorized; 236,457,199 and 196,310,402 shares issued and outstanding at January 31, 2014 and October 31, 2013, respectively. | 24 | 20 |
Additional paid-in capital | 809,013 | 758,656 |
Accumulated deficit | -781,793 | -771,189 |
Accumulated other comprehensive income | 81 | 101 |
Treasury stock, Common, at cost (5,679 shares at January 31, 2014 and October 31, 2013) | -53 | -53 |
Deferred Compensation Equity | 53 | 53 |
Total shareholders' equity (deficit) | 27,325 | -12,412 |
Noncontrolling interest in subsidiaries | -991 | -780 |
Total equity (deficit) | 26,334 | -13,192 |
Total liabilities and equity (deficit) | $240,724 | $237,636 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Preferred Stock, Liquidation Preference, Value | $64,020 | $64,020 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 275,000,000 | 275,000,000 |
Common stock, shares issued | 236,457,199 | 196,310,402 |
Common stock, shares outstanding | 236,457,199 | 196,310,402 |
Treasury stock, shares | 5,679 | 5,679 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | ||
Revenues (1): | ' | ' | ||
Product sales | $34,460 | $29,065 | ||
Service agreements and license revenues | 4,960 | 4,969 | ||
Advanced technologies contract revenues | 5,014 | 2,324 | ||
Total revenues | 44,434 | [1] | 36,358 | [1] |
Costs of revenues: | ' | ' | ||
Cost of product sales | 33,028 | 29,944 | ||
Cost of service agreements and license revenues | 4,157 | 6,485 | ||
Cost of advanced technologies contract revenues | 5,050 | 2,240 | ||
Total costs of revenues | 42,235 | 38,669 | ||
Gross profit (loss) | 2,199 | -2,311 | ||
Operating expenses: | ' | ' | ||
Administrative and selling expenses | 4,854 | 5,432 | ||
Research and development expenses | 4,915 | 3,327 | ||
Total costs and expenses | 9,769 | 8,759 | ||
Loss from operations | -7,570 | -11,070 | ||
Interest expense | -1,361 | -566 | ||
Income from equity investment | 0 | 46 | ||
Other income (expense), net | -1,774 | -282 | ||
Loss before provision for income taxes | -10,705 | -11,872 | ||
Provision for income taxes | -110 | -7 | ||
Net Loss | -10,815 | -11,879 | ||
Net loss attributable to noncontrolling interest | 211 | 198 | ||
Net loss attributable to FuelCell Energy, Inc. | -10,604 | -11,681 | ||
Preferred stock dividends | -800 | -800 | ||
Net loss attributable to common shareholders | ($11,404) | ($12,481) | ||
Loss per share basic and diluted | ' | ' | ||
Net loss per share attributable to common shareholders | ($0.06) | ($0.07) | ||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 200,637,819 | 187,553,306 | ||
[1] | Includes revenue from a related party. Refer to Related Parties in Note 1 to the financial statements. |
Statement_of_Comprehensive_Los
Statement of Comprehensive Loss Statement (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net Loss | ($10,815) | ($11,879) |
Foreign currency translation adjustments | -20 | 76 |
Comprehensive loss | ($10,835) | ($11,803) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($10,815) | ($11,879) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Share-based compensation | 621 | 509 |
Income from equity investment | 0 | -46 |
Gain (loss) from change in fair value of embedded derivatives | 225 | -3 |
Make whole derivative expense | 2,422 | 0 |
Depreciation | 1,068 | 1,012 |
Interest expense on preferred stock obligation | 492 | 511 |
Other non-cash transactions, net | -696 | 207 |
Decrease (increase) in operating assets: | ' | ' |
Accounts receivable | 15,227 | 17,020 |
Inventories | 4,333 | 3,236 |
Other assets | 2,530 | -739 |
Increase (decrease) in operating liabilities: | ' | ' |
Accounts payable | -6,138 | -5,345 |
Accrued liabilities | -11,151 | -1,026 |
Deferred revenue | -2,742 | 27,434 |
Net cash (used in) provided by operating activities | -5,074 | 30,897 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -790 | -1,397 |
Cash acquired from acquisition | 0 | 357 |
Net cash used in investing activities | -790 | -1,040 |
Cash flows from financing activities: | ' | ' |
Repayment of debt | -95 | -63 |
Proceeds from debt | 250 | 0 |
Increase in restricted cash and cash equivalents | -16,141 | -5,000 |
Payment of preferred dividends and return of capital | -1,113 | -1,113 |
Proceeds from sale of common stock, net of registration fees | 33,755 | 0 |
Net cash provided by (used in) financing activities | 16,656 | -6,176 |
Effects on cash from changes in foreign currency rates | -20 | 76 |
Net increase in cash and cash equivalents | 10,772 | 23,757 |
Cash and cash equivalents-beginning of period | 67,696 | 46,879 |
Cash and cash equivalents-end of period | 78,468 | 70,636 |
Supplemental cash flow disclosures: | ' | ' |
Cash interest paid | 1,535 | 55 |
Noncash financing and investing activity: | ' | ' |
Common stock issued for Employee Stock Purchase Plan in settlement of prior year accrued employee contributions | 106 | 85 |
Stock Issued During Period, Value, Conversion of Convertible Securities | 12,960 | 0 |
Common stock issued for acquisition | 0 | 3,562 |
Debt Conversion and Make Whole Obligation [Member] | ' | ' |
Noncash financing and investing activity: | ' | ' |
Stock Issued During Period, Value, Conversion of Convertible Securities | $17,200 | ' |
Nature_of_Business_and_Basis_o
Nature of Business and Basis of Presentation | 3 Months Ended |
Jan. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Nature of Business and Basis of Presentation | ' |
Nature of Business and Basis of Presentation | |
FuelCell Energy, Inc. and subsidiaries (the “Company”, “FuelCell Energy”, “we”, “us”, or “our”) is a leading integrated fuel cell company with a growing global presence. We design, manufacture, install, operate and service ultra-clean, efficient and reliable stationary fuel cell power plants. Our Direct FuelCell power plants produce reliable 24/7 base load electricity and usable high quality heat for commercial, industrial, government and utility customers. We have commercialized our stationary carbonate fuel cells and are also pursuing the complementary development of planar solid oxide fuel cell and other fuel cell technologies. We continue to invest in new product and market development and we are not currently generating net income from our operations. Our operations are funded primarily through cash generated from product sales, service and advanced technologies contracts, license fee income and sales of equity and debt securities. In order to continually produce positive cash flow from operations, we need to be successful at increasing annual order volume, production and cost reduction efforts. | |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information. Accordingly, they do not contain all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all normal and recurring adjustments necessary to fairly present our financial position as of January 31, 2014 have been included. All intercompany accounts and transactions have been eliminated. | |
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The balance sheet as of October 31, 2013 has been derived from the audited financial statements at that date, but it does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. These financial statements should be read in conjunction with our financial statements and notes thereto for the year ended October 31, 2013, which are contained in our Annual Report on Form 10-K previously filed with the Securities and Exchange Commission. The results of operations for the interim periods presented are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year. | |
Certain reclassifications have been made to the prior year amounts to conform to the current year presentation. | |
Use of Estimates | |
The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Estimates are used in accounting for, among other things, revenue recognition, excess, slow-moving and obsolete inventories, product warranty costs, reserves on service agreements ("SA"), allowance for uncollectible receivables, depreciation and amortization, impairment of intangible and long-lived assets, income taxes, purchase accounting, and contingencies. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Due to the inherent uncertainty involved in making estimates, actual results in future periods may differ from those estimates. | |
Related Parties | |
POSCO Energy (“POSCO”), which is a related party, owns approximately 13 percent of the outstanding common shares of the Company as of January 31, 2014. Revenues from POSCO Energy for the three months ended January 31, 2014 and 2013 represent 73% and 69%, respectively, of consolidated revenues. |
Inventories
Inventories | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
The components of inventory at January 31, 2014 and October 31, 2013 consisted of the following: | ||||||||
January 31, | October 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 19,563 | $ | 20,599 | ||||
Work-in-process (1) | 32,289 | 35,586 | ||||||
Inventories | $ | 51,852 | $ | 56,185 | ||||
-1 | Work-in-process includes the standard components of inventory used to build the typical modules or stack components that are intended to be used in future power plant orders or to service SA's. Included in work-in-process as of January 31, 2014 and October 31, 2013 is $6.5 million and $5.8 million, respectively, of completed standard components. | |||||||
Raw materials consist mainly of various nickel powders and steels, various other components used in producing cell stacks and purchased components for balance of plant. Work-in-process inventory is comprised of material, labor, and overhead costs incurred to build fuel cell stacks, which are subcomponents of a power plant. Work in process also includes costs related to modules which have not yet been dedicated to a particular commercial customer contract. | ||||||||
Raw materials and work-in-process are net of valuation reserves of approximately $1.2 million and $1.4 million at January 31, 2014 and October 31, 2013, respectively. |
Accounts_Receivable
Accounts Receivable | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Accounts Receivable | ' | |||||||
Accounts Receivable | ||||||||
Accounts receivable at January 31, 2014 and October 31, 2013 consisted of the following: | ||||||||
January 31, 2014 | October 31, 2013 | |||||||
Advanced Technology (including U.S. Government(1)): | ||||||||
Amount billed | $ | 1,962 | $ | 786 | ||||
Unbilled recoverable costs | 1,355 | 639 | ||||||
3,317 | 1,425 | |||||||
Commercial Customers: | ||||||||
Amount billed | 15,286 | 17,344 | ||||||
Unbilled recoverable costs | 15,228 | 30,347 | ||||||
30,514 | 47,691 | |||||||
Accounts receivable, net | $ | 33,831 | $ | 49,116 | ||||
-1 | Total U.S. Government accounts receivable outstanding at January 31, 2014 is $1.4 million . | |||||||
We bill customers for power plant and module kit sales based on certain milestones being reached. We bill SA's based on the contract price and billing terms of the contracts. The majority of advanced technology contracts are with the U.S. Government. We bill the U.S. Government based on actual recoverable costs incurred, typically in the month subsequent to incurring costs. The remainder of advanced technology contracts are billed based on milestones or costs incurred. Unbilled recoverable costs relate to revenue recognized on customer contracts that have not been billed. Unbilled amounts at January 31, 2014 and October 31, 2013 included $0.3 million and $17.8 million due from Dominion under the Bridgeport fuel cell park project and $8.6 million and $6.7 million due from POSCO Energy. Accounts receivable are presented net of an allowance for doubtful accounts of $0.07 million and $0.01 million at January 31, 2014 and October 31, 2013, respectively. | ||||||||
Commercial Customers accounts receivable (including Unbilled recoverable costs) include amounts due from POSCO Energy of $20.3 million and $17.4 million at January 31, 2014 and October 31, 2013, respectively. |
Other_Current_Assets_Notes
Other Current Assets (Notes) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ||||||||
Other Current Assets [Text Block] | ' | ||||||||
Other Current Assets | |||||||||
Other current assets at January 31, 2014 and October 31, 2013 consisted of the following: | |||||||||
31-Jan-14 | 31-Oct-13 | ||||||||
Advance payments to vendors (1) | $ | 1,808 | $ | 4,235 | |||||
Debt issuance costs (2) | 299 | 494 | |||||||
Notes receivable (3) | 575 | 478 | |||||||
Prepaid expenses and other (4) | 4,189 | 6,072 | |||||||
Other current assets | $ | 6,871 | $ | 11,279 | |||||
-1 | Advance payments to vendors relate to inventory purchases. | ||||||||
-2 | Represents the current portion of capitalized debt issuance costs relating to the convertible debt issuance which will be amortized over the five year term of the convertible notes. | ||||||||
-3 | Current portion of long-term notes receivable. | ||||||||
-4 | Primarily relates to other prepaid vendor expenses including insurance, rent and lease payments. |
Other_Assets_net
Other Assets, net | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Other Assets, Noncurrent [Abstract] | ' | |||||||
Other Assets, net | ' | |||||||
Other Assets, net | ||||||||
Other assets, net at January 31, 2014 and October 31, 2013 consisted of the following: | ||||||||
January 31, 2014 | October 31, 2013 | |||||||
Long-term stack residual value (1) | $ | 4,136 | $ | 2,898 | ||||
Debt issuance costs (2) | 1,024 | 1,721 | ||||||
Other (3) | 784 | 846 | ||||||
Other assets, net | $ | 5,944 | $ | 5,465 | ||||
-1 | In circumstances where the useful life of the module extends beyond the contractual term of the SA and the Company retains title for the module from the customer upon expiration or non-renewal of the SA, the cost of the module exchanges is recorded as a long term asset and is depreciated over its expected life. If the Company does not obtain rights to title from the customer, the cost of the module is expensed at the time of the module exchange. Accumulated depreciation was $2.4 million and $2.1 million for the periods ended January 31, 2014 and October 31, 2013, respectively. | |||||||
(2) Represents the long-term portion of capitalized debt issuance costs relating to the convertible debt issuance which will be amortized over the five year term of the convertible notes. | ||||||||
(3) Includes security deposits and notes receivable. |
Accrued_Liabilities
Accrued Liabilities | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Liabilities | ' | |||||||
Accrued Liabilities | ||||||||
Accrued liabilities at January 31, 2014 and October 31, 2013 consisted of the following: | ||||||||
January 31, 2014 | October 31, 2013 | |||||||
Accrued payroll and employee benefits (1) | $ | 3,266 | $ | 4,647 | ||||
Accrued contract and operating costs (2) | 34 | 87 | ||||||
Reserve for product warranty cost (3) | 1,043 | 860 | ||||||
Reserve for service agreement costs (4) | 3,048 | 4,186 | ||||||
Reserve for repair and upgrade program and modules due POSCO Energy (5) | 389 | 7,267 | ||||||
Accrued taxes, legal, professional and other (6) | 2,819 | 4,865 | ||||||
Accrued Liabilities | $ | 10,599 | $ | 21,912 | ||||
-1 | Balance relates to amounts owed to employees for compensation and benefits as of the end of the period. The decrease in the period reflects payments of employee bonuses offset by other activity, net. | |||||||
-2 | Balance includes estimated losses accrued on product sales contracts. | |||||||
-3 | Activity in the reserve for product warranty costs for the three months ended January 31, 2014 included additions for estimates of potential future warranty obligations of $1.2 million on contracts in the warranty period and reserve reductions related to actual warranty spend of $1.0 million as contracts progress through the warranty period or are beyond the warranty period. | |||||||
-4 | As of January 31, 2014 and October 31, 2013, the loss reserve on SA's totaled $2.2 million and $3.7 million, respectively. Also included in this line item is a reserve for performance guarantees penalties under the terms of our customer contracts, which based on our ongoing analysis of historical fleet performance, totaled $0.9 million and $0.5 million as of January 31, 2014 and October 31, 2013, respectively. | |||||||
-5 | The decrease in the reserve as of January 31, 2014 compared to October 31, 2013 is a result of three replacement modules having been provided to POSCO Energy under the terms of the Master Service Agreement with POSCO Energy. | |||||||
-6 | Balance includes accrued sales, use and payroll taxes as well as estimated legal, professional and other expense estimates as of the end of the period. |
Debt_and_Leases
Debt and Leases | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Debt and Capital Lease Obligations [Abstract] | ' | ||||||||
Debt and Capital Leases Disclosures [Text Block] | ' | ||||||||
Debt and Leases | |||||||||
At January 31, 2014 and October 31, 2013, debt consisted of the following: | |||||||||
31-Jan-14 | 31-Oct-13 | ||||||||
Revolving credit facility | $ | 6,500 | $ | 6,500 | |||||
Senior Unsecured Convertible Notes | 23,000 | 38,000 | |||||||
Connecticut Development Authority Note | 3,190 | 3,246 | |||||||
Connecticut Clean Energy and Finance Investment Authority Note | 6,061 | 5,744 | |||||||
Capitalized lease obligations | 451 | 497 | |||||||
Total debt | $ | 39,202 | $ | 53,987 | |||||
Less: Unamortized debt discount (1) | (1,767 | ) | (3,106 | ) | |||||
37,435 | 50,881 | ||||||||
Less: Current portion of long-term debt | (6,914 | ) | (6,931 | ) | |||||
Long-term debt | $ | 30,521 | $ | 43,950 | |||||
(1) The debt discount recorded in connection with the issuance of the Company’s unsecured convertible notes is recorded on the consolidated balance sheets as a reduction to associated debt balance. The Company amortizes the debt discount to interest expense over the term of the debt. | |||||||||
Aggregate annual principal payments under our loan agreements and capital lease obligations, excluding payments relating to the revolving credit facility, for the years subsequent to January 31, 2014 are as follows: | |||||||||
Year 1 | $ | 414 | |||||||
Year 2 | 386 | ||||||||
Year 3 | 282 | ||||||||
Year 4 | 260 | ||||||||
Year 5 | 25,299 | ||||||||
Thereafter | 6,061 | ||||||||
$ | 32,702 | ||||||||
On June 25, 2013, the Company sold $38.0 million in aggregate principal amount of 8.0% Senior Unsecured Convertible Notes ("Notes"). Under the terms of the Notes, interest is payable semi-annually in arrears on December 15 and June 15 of each year. The Company made its first interest payment on December 15, 2013. The Notes will mature on June 15, 2018, unless earlier redeemed, repurchased or converted. The Notes are convertible into shares of the Company's common stock at a conversion rate of 645.1613 shares of common stock per $1,000 principal amount of convertible notes, equivalent to a conversion price of approximately $1.55 per share of common stock plus a "make-whole" payment in regard to interest. During the first quarter of 2014, $15.0 million of outstanding principal was converted by Note holders and the Company issued 9,677,425 shares of common stock. In connection with the conversion of the Notes, the Company recorded an increase in common stock and additional paid in capital based on the carrying value of the converted Notes which included the converted Notes principal, a proportional amount of unamortized debt discount, and a proportional amount of unamortized debt issuance costs. | |||||||||
The change of control put redemption and interest make-whole payment upon conversion features embedded in the Notes require bifurcation from the host debt contract. The aggregate fair value of these derivatives at January 31, 2014 and October 31, 2013 is $2.7 million and $4.7 million, respectively. As a result of the Note conversions, 2,344,080 shares were issued and a payment of $0.3 million was made to settle the make-whole payment. The total fair value of the shares issued for the make-whole payment was $4.2 million which resulted in a charge of $2.4 million and a reduction to the embedded derivative of $1.8 million. The derivatives are included in Long term debt and other liabilities on the consolidated balance sheets and the make-whole charge is included in Other income (expense), net on the consolidated statements of operations. | |||||||||
As of January 31, 2014, the Company has an $8.0 million revolving credit facility with JPMorgan Chase Bank, N.A. and the Export-Import Bank of the United States. The credit facility is used for working capital to finance the manufacture and production and subsequent export sale of the Company’s products or services. The agreement has a one year term with renewal provisions and the current expiration date is April 2, 2014. The outstanding principal balance of the facility will bear interest, at the option of the Company of either the one-month LIBOR plus 1.5 percent or the prime rate of JP Morgan Chase. The facility is secured by certain working capital assets and general intangibles, up to the amount of the outstanding facility balance. At January 31, 2014, and October 31, 2013 the outstanding amount owed under this facility was $6.5 million and is classified as current portion of long-term debt and other liabilities on the consolidated balance sheets. | |||||||||
The outstanding balance on the Connecticut Development Authority loan was $3.2 million as of January 31, 2014 and October 31, 2013. | |||||||||
On March 5, 2013 the Company closed on a new long-term loan agreement with the Connecticut Clean Energy and Finance Investment Authority (CEFIA) totaling $5.9 million in support of the Bridgeport fuel cell park project. The loan agreement carries an interest rate of 5.0%. Interest only payments commenced in January 2014 and principal payments will commence on the eighth anniversary of the project's provisional acceptance date, which is December 20, 2021, payable in forty eight equal monthly installments. Outstanding amounts are secured by future cash flows from the Bridgeport service agreement. The outstanding balance on the CEFIA Note as of January 31, 2014 and October 31, 2013 was $6.1 million and $5.7 million, respectively. |
Shareholders_Equity_Deficit
Shareholders' Equity (Deficit) | 3 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Shareholders' Equity (Deficit) | ' | |||||||||||
Shareholders’ Equity (Deficit) | ||||||||||||
Changes in shareholders’ equity (deficit) | ||||||||||||
Changes in shareholders’ equity (deficit) were as follows for the three months ended January 31, 2014: | ||||||||||||
Total | Noncontrolling | Total | ||||||||||
Shareholders’ | interest | Equity (Deficit) | ||||||||||
Equity (Deficit) | ||||||||||||
Balance at October 31, 2013 | $ | (12,412 | ) | $ | (780 | ) | $ | (13,192 | ) | |||
Common stock issued for convertible note conversions | 12,960 | — | 12,960 | |||||||||
Common stock issued to settle make-whole obligation | 4,240 | — | 4,240 | |||||||||
Share-based compensation | 621 | — | 621 | |||||||||
Sale of common stock, net of registration fees | 33,246 | — | 33,246 | |||||||||
Taxes paid upon vesting of restricted stock awards, net of stock issued under benefit plans | 94 | — | 94 | |||||||||
Preferred dividends – Series B | (800 | ) | — | (800 | ) | |||||||
Other comprehensive loss - foreign currency translation adjustments | (20 | ) | — | (20 | ) | |||||||
Net loss | (10,604 | ) | (211 | ) | (10,815 | ) | ||||||
Balance at January 31, 2014 | $ | 27,325 | $ | (991 | ) | $ | 26,334 | |||||
Common Stock Issuances | ||||||||||||
During the first quarter of 2014, certain investors elected to convert a total of $15.0 million principal of $38.0 million in aggregate principal of the 8.0% Senior Unsecured Convertible Notes. Under the terms of the Notes, they are convertible into shares of the Company's common stock at a conversion rate of 645.1613 shares of common stock per $1,000 principal amount of convertible notes, equivalent to a conversion price of approximately $1.55 per share of common stock plus a "make-whole" payment in regard to interest. As a result of these conversions, the Company issued 9,677,425 shares of common stock related to the conversions, 2,344,080 shares to settle the make-whole obligation and 26,674 shares for accrued interest | ||||||||||||
On January 23, 2014, the Company completed a public offering of 25.3 million shares of common stock, including 3.3 million shares sold pursuant to the full exercise of an over-allotment option granted to the underwriters. All shares were offered by the Company at a price of $1.25 per share. Total net proceeds to the Company were approximately $29.5 million. | ||||||||||||
The Company may sell common stock on the open market from time to time. The proceeds of these sales may be used to pay obligations related to the Company's outstanding Series I and Series B preferred shares and the 8.0% Senior Unsecured Convertible Notes or for general corporate purposes. During the first quarter of 2014, the Company sold 2,704,200 shares, respectively of the Company's common stock at prevailing market prices through periodic trades on the open market and raised approximately $3.7 million, net of fees. | ||||||||||||
Warrant Issuance | ||||||||||||
On September 4, 2013, the Company entered into a co-marketing agreement with NRG Energy ("NRG") for the marketing and sales of the Company's power plants. The terms of the agreement included the issuance of warrants to NRG that permit NRG to purchase up to 5.0 million shares of the Company's common stock at predetermined prices based on attaining minimum sales goals. There are three tranches of warrants with varying strike prices, varying minimum levels of qualifying orders, and different vesting and expiration dates. The weighted average strike price for all 5.0 million warrants is $2.18. The qualifying order vesting dates range from March 2014 through September 2015 and the expiration dates range from February 2017 through August 2018. Any costs associated with the warrants will be recorded as a reduction of potential future revenue recorded under the arrangement. No warrants were vested and no expense was recorded as of January 31, 2014. |
Loss_Per_Share
Loss Per Share | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Loss Per Share | ' | ||||||||
Loss Per Share | |||||||||
The calculation of basic and diluted loss per share was as follows: | |||||||||
Three Months Ended January 31, | |||||||||
2014 | 2013 | ||||||||
Numerator | |||||||||
Net loss | $ | (10,815 | ) | $ | (11,879 | ) | |||
Net loss attributable to noncontrolling interest | 211 | 198 | |||||||
Preferred stock dividend | (800 | ) | (800 | ) | |||||
Net loss attributable to common shareholders | $ | (11,404 | ) | $ | (12,481 | ) | |||
Denominator | |||||||||
Weighted average basic common shares | 200,637,819 | 187,553,306 | |||||||
Effect of dilutive securities (1) | — | — | |||||||
Weighted average diluted common shares | 200,637,819 | 187,553,306 | |||||||
Basic loss per share | $ | (0.06 | ) | $ | (0.07 | ) | |||
Diluted loss per share (1) | $ | (0.06 | ) | $ | (0.07 | ) | |||
-1 | Diluted loss per share was computed without consideration to potentially dilutive instruments as their inclusion would have been antidilutive. Potentially dilutive instruments include stock options, convertible preferred stock, senior unsecured convertible notes and warrants. At January 31, 2014 and 2013, there were options to purchase 3.1 million shares of common stock. On September 4, 2013, the Company entered into a co-marketing agreement with NRG for the marketing and sales of the Company's power plants which include the issuance of warrants to purchase up to 5.0 million shares of the Company's common stock. |
Restricted_Cash
Restricted Cash | 3 Months Ended |
Jan. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Restricted cash | ' |
Restricted Cash | |
As of January 31, 2014 $26.1 million of cash and cash equivalents was pledged as collateral for letters of credit for certain banking requirements and contractual commitments, compared to $10.0 million of cash and cash equivalents pledged as of October 31, 2013. The increase in the restricted cash balance is related to the terms of the Bridgeport Equipment and Installation contract with Dominion for the provisional acceptance payment which was made to the Company during the first quarter of fiscal 2014 totaling $15.0 million which has been placed in a Grantor's Trust account to secure certain FCE obligations under the 15-year SA and has been classified as Restricted cash and cash equivalents - long-term. As of January 31, 2014, outstanding letters of credit totaled $8.5 million compared to $7.7 million at October 31, 2013. These expire on various dates through April 2019. |
Subsequent_Events_Notes
Subsequent Events (Notes) | 3 Months Ended |
Jan. 31, 2014 | |
Subsequent Event [Line Items] | ' |
Subsequent Events [Text Block] | ' |
Subsequent Events | |
During the second quarter of 2014, certain investors elected to convert a total of $22.0 million principal of the $38.0 million in aggregate principal of the 8.0% Senior Unsecured Convertible Notes. Under the terms of the Notes they are convertible into shares of the Company's common stock at a conversion rate of 645.1613 shares of common stock per $1,000 principal amount of convertible notes, equivalent to a conversion price of approximately $1.55 per share of common stock plus a "make-whole" payment equal to the lesser of three years of interest payments or interest payments from the date of conversion through maturity of the convertible notes. As a result of these conversions, the Company retired $22.0 million of outstanding principal and issued 17.5 million shares of common stock. The remaining principal balance of the 8.0% Senior Unsecured Convertible Notes is $1.0 million. |
Accounts_Receivable_Level_2_Po
Accounts Receivable Level 2 (Policies) | 3 Months Ended |
Jan. 31, 2014 | |
Receivables [Abstract] | ' |
Revenue Recognition, Policy [Policy Text Block] | ' |
We bill customers for power plant and module kit sales based on certain milestones being reached. We bill SA's based on the contract price and billing terms of the contracts. The majority of advanced technology contracts are with the U.S. Government. We bill the U.S. Government based on actual recoverable costs incurred, typically in the month subsequent to incurring costs. The remainder of advanced technology contracts are billed based on milestones or costs incurred. Unbilled recoverable costs relate to revenue recognized on customer contracts that have not been billed. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Inventories [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
The components of inventory at January 31, 2014 and October 31, 2013 consisted of the following: | ||||||||
January 31, | October 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 19,563 | $ | 20,599 | ||||
Work-in-process (1) | 32,289 | 35,586 | ||||||
Inventories | $ | 51,852 | $ | 56,185 | ||||
-1 | Work-in-process includes the standard components of inventory used to build the typical modules or stack components that are intended to be used in future power plant orders or to service SA's. Included in work-in-process as of January 31, 2014 and October 31, 2013 is $6.5 million and $5.8 million, respectively, of completed standard components. |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||
Accounts receivable at January 31, 2014 and October 31, 2013 consisted of the following: | ||||||||
January 31, 2014 | October 31, 2013 | |||||||
Advanced Technology (including U.S. Government(1)): | ||||||||
Amount billed | $ | 1,962 | $ | 786 | ||||
Unbilled recoverable costs | 1,355 | 639 | ||||||
3,317 | 1,425 | |||||||
Commercial Customers: | ||||||||
Amount billed | 15,286 | 17,344 | ||||||
Unbilled recoverable costs | 15,228 | 30,347 | ||||||
30,514 | 47,691 | |||||||
Accounts receivable, net | $ | 33,831 | $ | 49,116 | ||||
-1 | Total U.S. Government accounts receivable outstanding at January 31, 2014 is $1.4 million . |
Other_Current_Assets_Tables
Other Current Assets (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ||||||||
Schedule of Other Current Assets [Table Text Block] | ' | ||||||||
Other current assets at January 31, 2014 and October 31, 2013 consisted of the following: | |||||||||
31-Jan-14 | 31-Oct-13 | ||||||||
Advance payments to vendors (1) | $ | 1,808 | $ | 4,235 | |||||
Debt issuance costs (2) | 299 | 494 | |||||||
Notes receivable (3) | 575 | 478 | |||||||
Prepaid expenses and other (4) | 4,189 | 6,072 | |||||||
Other current assets | $ | 6,871 | $ | 11,279 | |||||
-1 | Advance payments to vendors relate to inventory purchases. | ||||||||
-2 | Represents the current portion of capitalized debt issuance costs relating to the convertible debt issuance which will be amortized over the five year term of the convertible notes. | ||||||||
-3 | Current portion of long-term notes receivable. | ||||||||
-4 | Primarily relates to other prepaid vendor expenses including insurance, rent and lease payments. |
Other_Assets_net_Tables
Other Assets, net (Tables) | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Other Assets, Noncurrent [Abstract] | ' | |||||||
Schedule of Other Current Assets [Table Text Block] | ' | |||||||
Other assets, net at January 31, 2014 and October 31, 2013 consisted of the following: | ||||||||
January 31, 2014 | October 31, 2013 | |||||||
Long-term stack residual value (1) | $ | 4,136 | $ | 2,898 | ||||
Debt issuance costs (2) | 1,024 | 1,721 | ||||||
Other (3) | 784 | 846 | ||||||
Other assets, net | $ | 5,944 | $ | 5,465 | ||||
-1 | In circumstances where the useful life of the module extends beyond the contractual term of the SA and the Company retains title for the module from the customer upon expiration or non-renewal of the SA, the cost of the module exchanges is recorded as a long term asset and is depreciated over its expected life. If the Company does not obtain rights to title from the customer, the cost of the module is expensed at the time of the module exchange. Accumulated depreciation was $2.4 million and $2.1 million for the periods ended January 31, 2014 and October 31, 2013, respectively. | |||||||
(2) Represents the long-term portion of capitalized debt issuance costs relating to the convertible debt issuance which will be amortized over the five year term of the convertible notes. | ||||||||
(3) Includes security deposits and notes receivable. |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Accrued Liabilities, Current [Abstract] | ' | |||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | |||||||
Accrued liabilities at January 31, 2014 and October 31, 2013 consisted of the following: | ||||||||
January 31, 2014 | October 31, 2013 | |||||||
Accrued payroll and employee benefits (1) | $ | 3,266 | $ | 4,647 | ||||
Accrued contract and operating costs (2) | 34 | 87 | ||||||
Reserve for product warranty cost (3) | 1,043 | 860 | ||||||
Reserve for service agreement costs (4) | 3,048 | 4,186 | ||||||
Reserve for repair and upgrade program and modules due POSCO Energy (5) | 389 | 7,267 | ||||||
Accrued taxes, legal, professional and other (6) | 2,819 | 4,865 | ||||||
Accrued Liabilities | $ | 10,599 | $ | 21,912 | ||||
-1 | Balance relates to amounts owed to employees for compensation and benefits as of the end of the period. The decrease in the period reflects payments of employee bonuses offset by other activity, net. | |||||||
-2 | Balance includes estimated losses accrued on product sales contracts. | |||||||
-3 | Activity in the reserve for product warranty costs for the three months ended January 31, 2014 included additions for estimates of potential future warranty obligations of $1.2 million on contracts in the warranty period and reserve reductions related to actual warranty spend of $1.0 million as contracts progress through the warranty period or are beyond the warranty period. | |||||||
-4 | As of January 31, 2014 and October 31, 2013, the loss reserve on SA's totaled $2.2 million and $3.7 million, respectively. Also included in this line item is a reserve for performance guarantees penalties under the terms of our customer contracts, which based on our ongoing analysis of historical fleet performance, totaled $0.9 million and $0.5 million as of January 31, 2014 and October 31, 2013, respectively. | |||||||
-5 | The decrease in the reserve as of January 31, 2014 compared to October 31, 2013 is a result of three replacement modules having been provided to POSCO Energy under the terms of the Master Service Agreement with POSCO Energy. | |||||||
-6 | Balance includes accrued sales, use and payroll taxes as well as estimated legal, professional and other expense estimates as of the end of the period. |
Debt_and_Leases_Tables
Debt and Leases (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Debt Instrument [Line Items] | ' | ||||||||
Schedule of Debt [Table Text Block] | ' | ||||||||
At January 31, 2014 and October 31, 2013, debt consisted of the following: | |||||||||
31-Jan-14 | 31-Oct-13 | ||||||||
Revolving credit facility | $ | 6,500 | $ | 6,500 | |||||
Senior Unsecured Convertible Notes | 23,000 | 38,000 | |||||||
Connecticut Development Authority Note | 3,190 | 3,246 | |||||||
Connecticut Clean Energy and Finance Investment Authority Note | 6,061 | 5,744 | |||||||
Capitalized lease obligations | 451 | 497 | |||||||
Total debt | $ | 39,202 | $ | 53,987 | |||||
Less: Unamortized debt discount (1) | (1,767 | ) | (3,106 | ) | |||||
37,435 | 50,881 | ||||||||
Less: Current portion of long-term debt | (6,914 | ) | (6,931 | ) | |||||
Long-term debt | $ | 30,521 | $ | 43,950 | |||||
(1) The debt discount recorded in connection with the issuance of the Company’s unsecured convertible notes is recorded on the consolidated balance sheets as a reduction to associated debt balance. The Company amortizes the debt discount to interest expense over the term of the debt. | |||||||||
schedule of future minimum debt and lease payments [Text Block] | ' | ||||||||
Aggregate annual principal payments under our loan agreements and capital lease obligations, excluding payments relating to the revolving credit facility, for the years subsequent to January 31, 2014 are as follows: | |||||||||
Year 1 | $ | 414 | |||||||
Year 2 | 386 | ||||||||
Year 3 | 282 | ||||||||
Year 4 | 260 | ||||||||
Year 5 | 25,299 | ||||||||
Thereafter | 6,061 | ||||||||
$ | 32,702 | ||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Schedule of Stockholders Equity [Table Text Block] | ' | |||||||||||
Changes in shareholders’ equity (deficit) were as follows for the three months ended January 31, 2014: | ||||||||||||
Total | Noncontrolling | Total | ||||||||||
Shareholders’ | interest | Equity (Deficit) | ||||||||||
Equity (Deficit) | ||||||||||||
Balance at October 31, 2013 | $ | (12,412 | ) | $ | (780 | ) | $ | (13,192 | ) | |||
Common stock issued for convertible note conversions | 12,960 | — | 12,960 | |||||||||
Common stock issued to settle make-whole obligation | 4,240 | — | 4,240 | |||||||||
Share-based compensation | 621 | — | 621 | |||||||||
Sale of common stock, net of registration fees | 33,246 | — | 33,246 | |||||||||
Taxes paid upon vesting of restricted stock awards, net of stock issued under benefit plans | 94 | — | 94 | |||||||||
Preferred dividends – Series B | (800 | ) | — | (800 | ) | |||||||
Other comprehensive loss - foreign currency translation adjustments | (20 | ) | — | (20 | ) | |||||||
Net loss | (10,604 | ) | (211 | ) | (10,815 | ) | ||||||
Balance at January 31, 2014 | $ | 27,325 | $ | (991 | ) | $ | 26,334 | |||||
Loss_Per_Share_Tables
Loss Per Share (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Loss Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
The calculation of basic and diluted loss per share was as follows: | |||||||||
Three Months Ended January 31, | |||||||||
2014 | 2013 | ||||||||
Numerator | |||||||||
Net loss | $ | (10,815 | ) | $ | (11,879 | ) | |||
Net loss attributable to noncontrolling interest | 211 | 198 | |||||||
Preferred stock dividend | (800 | ) | (800 | ) | |||||
Net loss attributable to common shareholders | $ | (11,404 | ) | $ | (12,481 | ) | |||
Denominator | |||||||||
Weighted average basic common shares | 200,637,819 | 187,553,306 | |||||||
Effect of dilutive securities (1) | — | — | |||||||
Weighted average diluted common shares | 200,637,819 | 187,553,306 | |||||||
Basic loss per share | $ | (0.06 | ) | $ | (0.07 | ) | |||
Diluted loss per share (1) | $ | (0.06 | ) | $ | (0.07 | ) | |||
-1 | Diluted loss per share was computed without consideration to potentially dilutive instruments as their inclusion would have been antidilutive. Potentially dilutive instruments include stock options, convertible preferred stock, senior unsecured convertible notes and warrants. At January 31, 2014 and 2013, there were options to purchase 3.1 million shares of common stock. On September 4, 2013, the Company entered into a co-marketing agreement with NRG for the marketing and sales of the Company's power plants which include the issuance of warrants to purchase up to 5.0 million shares of the Company's common stock. |
Nature_of_Business_and_Basis_o1
Nature of Business and Basis of Presentation (Details) (POSCO Energy [Member]) | 3 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
POSCO Energy [Member] | ' | ' |
Common stock ownership percentage | 13.00% | ' |
significant customer revenue percentage | 73.00% | 69.00% |
Inventories_Details
Inventories (Details) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | ||
Inventory, Net [Abstract] | ' | ' | ||
Raw materials | $19,563,000 | $20,599,000 | ||
Work in process | 32,289,000 | [1] | 35,586,000 | [1] |
Inventory, Net | 51,852,000 | 56,185,000 | ||
Completed Standard Component | 6,500,000 | 5,800,000 | ||
Inventory Valuation Reserves | $1,200,000 | $1,400,000 | ||
[1] | Work-in-process includes the standard components of inventory used to build the typical modules or stack components that are intended to be used in future power plant orders or to service SA's. Included in work-in-process as of JanuaryB 31, 2014 and OctoberB 31, 2013 is $6.5 million and $5.8 million, respectively, of completed standard components. |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | |
Government Contract Receivable | $1,962,000 | $786,000 | |
Government Contract Receivable, Unbilled Amounts | 1,355,000 | 639,000 | |
U.S. Government accounts receivable total | 3,317,000 | [1] | 1,425,000 |
Contract Receivable | 15,286,000 | 17,344,000 | |
Unbilled Contracts Receivable | 15,228,000 | 30,347,000 | |
Commercial Customers accounts receivable | 30,514,000 | 47,691,000 | |
Accounts Receivable, Net, Current | 33,831,000 | 49,116,000 | |
Allowance for Doubtful Accounts Receivable, Current | 70,000 | 10,000 | |
POSCO Energy [Member] | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | |
Accounts Receivable, Related Parties, Current | 20,300,000 | 17,400,000 | |
Government [Member] | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | |
Government Contract Receivable | 1,400,000 | ' | |
POSCO Energy [Member] | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | |
Unbilled Contracts Receivable | 8,600,000 | 6,700,000 | |
Dominion Bridgeport FuelCell Park [Member] | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | |
Unbilled Contracts Receivable | $300,000 | $17,800,000 | |
[1] | Total U.S. Government accounts receivable outstanding at January 31, 2014 is $1.4 million . |
Other_Current_Assets_Details
Other Current Assets (Details) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ' | ||
Advance payments to vendors | $1,808 | [1] | $4,235 | [1] |
Debt issuance costs | 299 | [2] | 494 | [2] |
Notes receivable | 575 | [3] | 478 | [3] |
Prepaid expenses and other | 4,189 | [4] | 6,072 | [4] |
Total | $6,871 | $11,279 | ||
[1] | Advance payments to vendors relate to inventory purchases. | |||
[2] | Represents the current portion of capitalized debt issuance costs relating to the convertible debt issuance which will be amortized over the five year term of the convertible notes. | |||
[3] | Current portion of long-term notes receivable. | |||
[4] | Primarily relates to other prepaid vendor expenses including insurance, rent and lease payments. |
Other_Assets_net_Details
Other Assets, net (Details) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | ||
Other Assets, Noncurrent [Abstract] | ' | ' | ||
Long-term stack residual value | $4,136,000 | [1] | $2,898,000 | [1] |
Debt issuance costs | 1,024,000 | [2] | 1,721,000 | [2] |
Other | 784,000 | [3] | 846,000 | [3] |
Other assets, net | 5,944,000 | 5,465,000 | ||
Accumulated depreciation on long-term stacks | $2,400,000 | $2,100,000 | ||
[1] | In circumstances where the useful life of the module extends beyond the contractual term of the SA and the Company retains title for the module from the customer upon expiration or non-renewal of the SA, the cost of the module exchanges is recorded as a long term asset and is depreciated over its expected life. If the Company does not obtain rights to title from the customer, the cost of the module is expensed at the time of the module exchange. Accumulated depreciation was $2.4 million and $2.1 million for the periods ended JanuaryB 31, 2014 and OctoberB 31, 2013, respectively. | |||
[2] | Represents the long-term portion of capitalized debt issuance costs relating to the convertible debt issuance which will be amortized over the five year term of the convertible notes. | |||
[3] | Includes security deposits and notes receivable. |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | 3 Months Ended | |||
Jan. 31, 2014 | Oct. 31, 2013 | |||
Accrued Liabilities, Current [Abstract] | ' | ' | ||
Accrued payroll and employee benefits | $3,266,000 | [1] | $4,647,000 | [1] |
Accrued contract and operating costs | 34,000 | [2] | 87,000 | [2] |
Reserve for product warranty costs | 1,043,000 | [3] | 860,000 | [3] |
Reserve for service agreement costs | 3,048,000 | [4] | 4,186,000 | [4] |
Reserve for repair and upgrade program and modules due POSCO Energy | 389,000 | [5] | 7,267,000 | [5] |
Accrued taxes, legal, professional and other | 2,819,000 | [6] | 4,865,000 | [6] |
Accrued Liabilities, Current | 10,599,000 | 21,912,000 | ||
Product Warranty Accrual, Warranties Issued | 1,200,000 | ' | ||
Product Warranty Accrual, Payment and Adjustments | 1,000,000 | ' | ||
Loss Reserve on Service Agreements | 2,200,000 | 3,700,000 | ||
Reserve for Performance Guarantees | $900,000 | $500,000 | ||
[1] | Balance relates to amounts owed to employees for compensation and benefits as of the end of the period. | |||
[2] | Balance includes estimated losses accrued on product sales contracts. | |||
[3] | Activity in the reserve for product warranty costs for the three months ended January 31, 2014 included additions for estimates of potential future warranty obligations of $1.2 million on contracts in the warranty period and reserve reductions related to actual warranty spend of $1.0 million as contracts progress through the warranty period or are beyond the warranty period. | |||
[4] | As of JanuaryB 31, 2014 and October 31, 2013, the loss reserve on SA's totaled $2.2 million and $3.7 million, respectively. Also included in this line item is a reserve for performance guarantees penalties under the terms of our customer contracts, which based on our ongoing analysis of historical fleet performance, totaled $0.9 million and $0.5 million as of JanuaryB 31, 2014 and OctoberB 31, 2013, respectively. | |||
[5] | The decrease in the reserve as of January 31, 2014 compared to October 31, 2013 is a result of three replacement modules having been provided to POSCO Energy under the terms of the Master Service Agreement with POSCO Energy. | |||
[6] | Balance includes accrued sales, use and payroll taxes as well as estimated legal, professional and other expense estimates as of the end of the period. |
Debt_and_Leases_Details
Debt and Leases (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||||||||||||
Apr. 30, 2014 | Jan. 31, 2014 | Mar. 07, 2014 | Oct. 31, 2013 | Jun. 25, 2013 | Jun. 25, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Mar. 05, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Mar. 05, 2013 | Jan. 31, 2014 | |||
Convertible Debt [Member] | Connecticut Development Authority Note [Member] | Connecticut Development Authority Note [Member] | Connecticut Clean Energy Fund [Member] | Connecticut Clean Energy and Finance Investment Authority [Member] | Connecticut Clean Energy and Finance Investment Authority [Member] | Connecticut Clean Energy and Finance Investment Authority [Member] | Convertible debt make-whole obligation [Member] | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Line of Credit Facility, Amount Outstanding | ' | $6,500,000 | ' | $6,500,000 | ' | ' | $3,190,000 | $3,246,000 | ' | $6,061,000 | $5,744,000 | ' | ' | ||
Senior Unsecured Convertible Notes | ' | 23,000,000 | 1,000,000 | 38,000,000 | 38,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Capital Lease Obligations | ' | 451,000 | ' | 497,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term Debt, Gross | ' | 39,202,000 | ' | 53,987,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Unamortized Discount | ' | -1,767,000 | [1] | ' | -3,106,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt | ' | 37,435,000 | ' | 50,881,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term Debt, Current Maturities | ' | -6,914,000 | ' | -6,931,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term Debt, Excluding Current Maturities | ' | 30,521,000 | ' | 43,950,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Line of Credit Facility, Maximum Borrowing Capacity | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | 5,900,000 | ' | ' | ' | ' | ||
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | 5.00% | ' | ||
Debt Instrument, Convertible, Conversion Ratio | ' | 645.1613 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Conversion, Converted Instrument, Amount | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Convertible, Conversion Price | ' | $1.55 | ' | ' | $1.55 | ' | ' | ' | ' | ' | ' | ' | ' | ||
embedded derivative cash payment | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | ' | 2,700,000 | ' | 4,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 17,500,000 | 9,677,425 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Stock Issued During Period, Shares, Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,344,080 | ||
Stock Issued During Period, Value, Other | ' | 4,240,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Embedded Derivative, Loss on Embedded Derivative | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Conversion, Original Debt, Amount | $22,000,000 | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | The debt discount recorded in connection with the issuance of the Companybs unsecured convertible notes is recorded on the consolidated balance sheets as a reduction to associated debt balance. The Company amortizes the debt discount to interest expense over the term of the debt. |
Debt_and_Leases_Debt_Details
Debt and Leases Debt (Details) (USD $) | Jan. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | ' |
Debt and Capital Leases, minimum payment due in less than 12 months | $414 |
Debt and Capital Leases, Future Minimum Payments, Due in Two Years | 386 |
Debt and Capital Leases, Future Minimum Payments, Due in Three Years | 282 |
Debt and Capital Leases, Future Minimum Payments, Due in Four Years | 260 |
Debt and Capital Leases, Future Minimum Payments, Due in Five Years | 25,299 |
Debt and Capital Leases, Future Minimum Payments, Due Thereafter | 6,061 |
Debt and Capital Leases, Future Minimum Payments Due | $32,702 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | ||||||
Apr. 30, 2014 | Jan. 31, 2014 | Jan. 31, 2013 | Mar. 07, 2014 | Jan. 23, 2014 | Oct. 31, 2013 | Jun. 25, 2013 | |
Debt Conversion, Original Debt, Amount | $22,000,000 | $15,000,000 | ' | ' | ' | ' | ' |
Senior Unsecured Convertible Notes | ' | 23,000,000 | ' | 1,000,000 | ' | 38,000,000 | 38,000,000 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 17,500,000 | 9,677,425 | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Ratio | ' | 645.1613 | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price | ' | $1.55 | ' | ' | ' | ' | $1.55 |
Common stock issued relating to full exercise of an over allottment option | ' | ' | ' | ' | 3,300,000 | ' | ' |
Price Per Share for New Common Stock Issuance | ' | ' | ' | ' | $1.25 | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | 25,300,000 | ' | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | ' | 5,000,000 | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | 2.18 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stockholders' equity (decifit), Including Portion Attributable to Noncontrolling Interest | 26,334,000 | -13,192,000 | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Conversion of Convertible Securities | ' | 12,960,000 | 0 | ' | ' | ' | ' |
Stock Issued During Period, Value, Other | ' | 4,240,000 | ' | ' | ' | ' | ' |
Stock Granted During Period, Value, Share-based Compensation, Net of Forfeitures | ' | 621,000 | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, New Issues | ' | 33,246,000 | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Employee Benefit Plan | ' | 94,000 | ' | ' | ' | ' | ' |
Dividends, Preferred Stock | ' | -800,000 | -800,000 | ' | ' | ' | ' |
Foreign currency translation adjustments | ' | -20,000 | 76,000 | ' | ' | ' | ' |
Net Loss | ' | -10,815,000 | -11,879,000 | ' | ' | ' | ' |
Stockholders' equity (deficit), Including Portion Attributable to Noncontrolling Interest | ' | 26,334,000 | ' | ' | ' | ' | ' |
Proceeds from Issuance of Common Stock | ' | 33,755,000 | 0 | ' | ' | ' | ' |
Common Stock, Capital Shares Reserved for Future Issuance | ' | 5,000,000 | ' | ' | ' | ' | ' |
Public stock offering [Member] | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Common Stock | ' | 29,500,000 | ' | ' | ' | ' | ' |
Parent [Member] | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stockholders' equity (decifit), Including Portion Attributable to Noncontrolling Interest | ' | -12,412,000 | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Conversion of Convertible Securities | ' | 12,960,000 | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Other | ' | 4,240,000 | ' | ' | ' | ' | ' |
Stock Granted During Period, Value, Share-based Compensation, Net of Forfeitures | ' | 621,000 | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, New Issues | ' | 33,246,000 | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Employee Benefit Plan | ' | 94,000 | ' | ' | ' | ' | ' |
Dividends, Preferred Stock | ' | -800,000 | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | ' | -20,000 | ' | ' | ' | ' | ' |
Net Loss | ' | -10,604,000 | ' | ' | ' | ' | ' |
Stockholders' equity (deficit), Including Portion Attributable to Noncontrolling Interest | ' | 27,325,000 | ' | ' | ' | ' | ' |
Noncontrolling Interest [Member] | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stockholders' equity (decifit), Including Portion Attributable to Noncontrolling Interest | ' | -780,000 | ' | ' | ' | ' | ' |
Net Loss | ' | -211,000 | ' | ' | ' | ' | ' |
Stockholders' equity (deficit), Including Portion Attributable to Noncontrolling Interest | ' | -991,000 | ' | ' | ' | ' | ' |
Common Stock [Member] | Common Stock [Member] | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | 2,704,200 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Common Stock | ' | $3,700,000 | ' | ' | ' | ' | ' |
Convertible debt make-whole obligation [Member] | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Other | ' | 2,344,080 | ' | ' | ' | ' | ' |
Interest Expense [Member] | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Other | ' | 26,674 | ' | ' | ' | ' | ' |
Loss_Per_Share_Details
Loss Per Share (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | ||
Earnings Per Share [Abstract] | ' | ' | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 5,000,000 | ' | ||
Numerator [Abstract] | ' | ' | ||
Net Loss | ($10,815) | ($11,879) | ||
Net Income (Loss) Attributable to Noncontrolling Interest | 211 | 198 | ||
Dividends, Preferred Stock | -800 | -800 | ||
Net loss attributable to common shareholders | ($11,404) | ($12,481) | ||
Demoninator [Abstract] | ' | ' | ||
Weighted Average Number of Shares Outstanding, Diluted | 200,637,819 | 187,553,306 | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | [1] | 0 | [1] |
Weighted Average Number of Shares Outstanding, Basic | 200,637,819 | 187,553,306 | ||
Earnings Per Share, Basic | ($0.06) | ($0.07) | ||
Earnings Per Share, Diluted | ($0.06) | [1] | ($0.07) | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,097,364 | 3,181,464 | ||
[1] | Diluted loss per share was computed without consideration to potentially dilutive instruments as their inclusion would have been antidilutive. Potentially dilutive instruments include stock options, convertible preferred stock, senior unsecured convertible notes and warrants. At January 31, 2014 and 2013, there were options to purchase 3.1 million shares of common stock. On September 4, 2013, the Company entered into a co-marketing agreement with NRG for the marketing and sales of the Company's power plants which include the issuance of warrants to purchase up to 5.0 million shares of the Company's common stock. |
Restricted_Cash_Details
Restricted Cash (Details) (USD $) | 3 Months Ended | |
Jan. 31, 2014 | Oct. 31, 2013 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted Cash and Cash Equivalents | $26,100,000 | $10,000,000 |
Restricted cash and cash equivalents - long-term | 19,950,000 | 4,950,000 |
Letter of Credit Date of Expiration | 1-Apr-19 | ' |
Letters of Credit Outstanding, Amount | 8,500,000 | 7,700,000 |
Dominion Bridgeport FuelCell Park [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash and cash equivalents - long-term | $15,000,000 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | ||||
Apr. 30, 2014 | Jan. 31, 2014 | Mar. 07, 2014 | Oct. 31, 2013 | Jun. 25, 2013 | |
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Debt Conversion, Original Debt, Amount | $22,000,000 | $15,000,000 | ' | ' | ' |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 17,500,000 | 9,677,425 | ' | ' | ' |
Senior Unsecured Convertible Notes | ' | 23,000,000 | 1,000,000 | 38,000,000 | 38,000,000 |
Debt Instrument, Convertible, Conversion Ratio | ' | 645.1613 | ' | ' | ' |
Debt Conversion, Converted Instrument, Amount | ' | $1,000 | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price | ' | $1.55 | ' | ' | $1.55 |