ATRM (ATRM) 10-Q 15 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 15, 2016
Document And Entity Information
Entity Registrant Name	ATRM Holdings, Inc.
Entity Central Index Key	908,598
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,266,219
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 315	$ 624
Accounts receivable, net	2,319	2,563
Costs and estimated profit in excess of billings	1,173	472
Inventories	1,163	1,241
Fair value of contingent earn-out, current	363	329
Other current assets	163	173
Total current assets	5,496	5,402
Property, plant and equipment, net	4,210	4,452
Fair value of contingent earn-out, noncurrent	380	548
Goodwill	1,733	1,733
Intangible assets, net	1,254	1,355
Total assets	13,073	13,490
Current liabilities:
Note payable – revolving line of credit	3,337
Current portion of long-term debt	1,145	1,105
Trade accounts payable	4,185	3,491
Billings in excess of costs and estimated profit	696	765
Accrued compensation	285	104
Other accrued liabilities	1,679	1,984
Total current liabilities	11,327	7,449
Long-term debt, less current portion	8,640	10,252
Deferred income taxes	17	13
Commitments and contingencies
Shareholders' deficit:
Common stock, $.001 par value; 3,000,000 shares authorized; 2,266,219 and 2,206,219 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	2	2
Additional paid-in capital	69,540	69,425
Accumulated deficit	(76,453)	(73,651)
Total shareholders' deficit	(6,911)	(4,224)
Total liabilities and shareholders' deficit	$ 13,073	$ 13,490

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value	$ .001	$ .001
Common stock, shares authorized	3,000,000	3,000,000
Common stock, shares issued	2,266,219	2,206,219
Common stock, shares outstanding	2,266,219	2,206,219

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Net sales	$ 5,901	$ 6,800	$ 10,952	$ 13,601
Costs and expenses:
Cost of sales	5,406	6,620	10,840	13,502
Selling, general and administrative expenses	1,160	1,113	2,187	2,130
Total costs and expenses	6,566	7,733	13,027	15,632
Operating loss	(665)	(933)	(2,075)	(2,031)
Other income (expense):
Interest expense	(423)	(402)	(724)	(789)
Change in fair value of contingent earn-out	1		2
Settlement gain		3,687		3,687
Income (loss) from operations before income taxes	(1,087)	2,352	(2,797)	867
Income tax (expense)	(1)	(2)	(5)	(2)
Net income (loss)	$ (1,088)	$ 2,350	$ (2,802)	$ 865
Income (loss) per share:
Basic	$ (0.49)	$ 1.98	$ (1.27)	$ 0.73
Diluted	$ (0.49)	$ 1.95	$ (1.27)	$ 0.72
Weighted average common shares outstanding:
Basic	2,223,000	1,186,000	2,214,000	1,186,000
Diluted	2,223,000	1,205,000	2,214,000	1,196,000

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ (2,802)	$ 865
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation expense	156	159
Amortization expense, intangible assets	101	221
Amortization expense, deferred financing costs	36
Share-based compensation expense	115	20
Provision for bad debts		13
Settlement gain		(3,687)
Facility expense accrual credit		(54)
Loss on sale of equipment	25
Deferred income taxes	4	9
Change in fair value of contingent earn-out	(2)
Changes in operating assets and liabilities:
Accounts receivable	244	(1,203)
Costs and estimated profit in excess of billings	(701)	693
Inventories	78	212
Other current assets	10	43
Trade accounts payable	639	(497)
Billings in excess of costs and estimated profit	(69)	386
Accrued compensation	181	222
Other accrued liabilities	(305)	(131)
Net cash used in operating activities	(2,290)	(2,729)
Cash flows from investing activities:
Purchase of property and equipment	(48)	(19)
Proceeds from earn-out consideration	136	912
Sale of equipment	109
Net cash generated by investing activities	197	893
Cash flows from financing activities:
Proceeds from revolving line of credit	9,675
Principal payments on revolving line of credit	(6,144)
Payment of deferred financing costs	(175)
Principal payments on long-term debt	(1,572)	(26)
Proceeds from issuance of long-term debt		1,000
Net cash generated by financing activities	1,784	974
Net decrease in cash and cash equivalents	(309)	(862)
Cash and cash equivalents at beginning of period	624	1,996
Cash and cash equivalents at end of period	315	1,134
Supplemental cash flow information:
Cash paid for interest expense	692	483
Settlement Agreement: - reduction of note payable to seller		3,226
Settlement Agreement: - forgiveness of accrued interest		461
Deferred financing costs recorded in accounts payable	$ 55

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements include the accounts of ATRM Holdings, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. References in the notes to the condensed consolidated financial statements to “ATRM,” “the Company,” “we,” “us” or “our,” unless the context otherwise requires, refer to ATRM Holdings, Inc. and its subsidiaries and their respective predecessors. Our modular housing business, which we acquired in 2014, is operated by our wholly-owned subsidiaries KBS Builders, Inc. and Maine Modular Haulers, Inc. (collectively referred to as “KBS”). The condensed consolidated balance sheet at December 31, 2015 has been derived from our audited financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements include all adjustments (consisting only of normal, recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the operating results to be expected for the full year or any future period. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures, normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted, pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2015.

Financial Position, Liquidity a

Financial Position, Liquidity and Capital Resources	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Financial Position, Liquidity and Capital Resources	2. FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES We have incurred significant operating losses in recent years and, as of June 30, 2016, we had an accumulated deficit of approximately $76 million. There can be no assurance that we will generate sufficient revenue in the future to cover our expenses and achieve profitability on a consistent basis or at all. We issued various unsecured promissory notes to finance our acquisition of KBS in 2014 and to provide for our general working capital needs since the acquisition (see Notes 11 and 12). On February 23, 2016, as described in Note 11, we entered into a loan and security agreement with Gerber Finance Inc. (“Gerber Finance”) that provides KBS with a revolving line of credit with borrowing availability of up to $4.0 million (the “Loan Agreement”). As of June 30, 2016, we had outstanding debt totaling approximately $13.0 million. This debt included $3.3 million (net of deferred financing costs) owed under a line of credit with Gerber Finance under the Loan Agreement and $1.2 million principal amount outstanding under an unsecured promissory note issued to the primary seller of KBS. Our debt also included $4.0 million principal amount of a promissory note issued to Lone Star Value Investors, LP (“LSVI”) and $4.5 million principal amount of promissory notes issued to Lone Star Value Co-Invest I, LP (“LSV Co-Invest I”). Interest on these notes is payable semiannually and any unpaid principal and interest is due on April 1, 2019. The Company received a waiver from LSVI and LSV Co-Invest I with respect to the Company’s interest payments under the LSVI and the LSV Co-Invest I promissory notes due on July 5, 2016, totaling approximately $445,000, permitting the Company to make these payments at any time on or before August 31, 2016. On August 12, 2016, the Company and LSVI and LSV Co-Invest I amended the LSVI and LSV Co-Invest I promissory notes allowing the Company, at its sole option, to elect to make any interest payment in-kind (“PIK Interest”) at an annual rate of 12% (versus the 10% interest rate applied to cash payments) for that period. As of August 12, 2016, the Company has elected the PIK Interest option for the six-month period ended June 30, 2016 now due on August 31, 2016. As a result, interest expense for the six months ended June 30, 2016, totaling $534,000 (calculated at the PIK Interest rate of 12%), includes the incremental interest expense of approximately $89,000. Jeffrey E. Eberwein, our Chairman of our Board of Directors, is the manager of Lone Star Value Investors GP, LLC (“LSVGP”), the general partner of LSVI and LSV Co-Invest I, and sole member of Lone Star Value Management, LLC (“LSVM”), the investment manager of LSVI. We intend to pursue new financing at the parent company level to replace all or a portion of the debt owing to LSVI and LSV Co-Invest I and to provide for our general working capital needs. There can be no assurance we will be successful in obtaining such financing on terms favorable to us or at all. Until such time as we obtain additional financing, ATRM may be dependent on LSVI and LSV Co-Invest I, or other third parties, to provide for our general working capital needs. Although not a binding commitment, LSVM has advised us of its present intention to continue to financially support the Company as we pursue new financing. There can be no assurance that our existing cash reserves, together with funds generated by our operations, borrowings available under the Loan Agreement and any future financings, will be sufficient to satisfy our debt payment obligations. Our inability to generate funds or obtain financing sufficient to satisfy our debt payment obligations may result in such obligations being accelerated by our lenders, which would likely have a material adverse effect on our business, financial condition and results of operations. Given these uncertainties, there can be no assurance that our existing cash reserves will be sufficient to avoid liquidity issues and/or fund operations beyond this fiscal year.

Recently Adopted Accounting Pro

Recently Adopted Accounting Pronouncements	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Recently Adopted Accounting Pronouncements	3. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. FAIR VALUE MEASUREMENTS Financial assets reported at fair value on a recurring basis included the following at June 30, 2016 (in thousands): Level 1 Level 2 Level 3 Contingent earn-out receivable related to transfer of former product line: Current portion $ — $ — $ 363 Noncurrent portion — — 380 Total $ — $ — $ 743 The following table summarizes the Level 3 activity for our contingent earn-out receivable (in thousands): Level 3 Balance at December 31, 2015 $ 877 Add - adjustments based on fair value assessments at March 31, 2016 and June 30, 2016 2 Subtract - settlements (136 ) Balance at June 30, 2016 $ 743 Quantitative information about Level 3 fair value measurements on a recurring basis at June 30, 2016 is summarized in the table below: Fair Value Asset Valuation Technique Unobservable Input Amount Contingent earn-out receivable related to transfer of former product line Discounted cash flow Total projected revenue $ 12 million Revenue growth rate 0 % Performance weighted average 60% to 125% Discount rate 10 %

Accounts Receivable, Net

Accounts Receivable, Net	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
Accounts Receivable, Net	5. ACCOUNTS RECEIVABLE, NET Accounts receivable consists of the following (in thousands): June 30, 2016 December 31, 2015 (Unaudited) Contract billings $ 2,272 $ 2,586 Retainage 347 347 Subtotal 2,619 2,933 Less - allowance for doubtful accounts (300 ) (370 ) Accounts receivable, net $ 2,319 $ 2,563 Retainage balances at June 30, 2016 are expected to be collected within the next twelve months.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Inventories	6. INVENTORIES Inventories are comprised of the following (in thousands): June 30, 2016 December 31, 2015 (Unaudited) Raw materials $ 1,088 $ 1,120 Finished goods 75 121 Total inventories $ 1,163 $ 1,241

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	7. GOODWILL AND INTANGIBLE ASSETS, NET Intangible assets are comprised of the following (in thousands): June 30, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value (unaudited) Indefinite-lived intangible assets: Goodwill $ 1,733 $ — $ 1,733 $ 1,733 $ — $ 1,733 Trademarks 290 — 290 290 — 290 Total 2,023 — 2,023 2,023 — 2,023 Finite-lived intangible assets: Customer relationships 1,420 (456 ) 964 1,420 (355 ) 1,065 Purchased backlog 990 (990 ) — 990 (990 ) — Total 2,410 (1,446 ) 964 2,410 (1,345 ) 1,065 Total intangible assets $ 4,433 $ (1,446 ) $ 2,987 $ 4,433 $ (1,345 ) $ 3,088 Amortization expense amounted to approximately $51,000 and $101,000 for the three and six months ended June 30, 2016, respectively, and approximately $61,000 and $221,000 for the three and six months ended June 30, 2015, respectively. Estimated amortization of purchased intangible assets over the next five years is as follows (in thousands): 2016 (six months) $ 102 2017 203 2018 203 2019 203 2020 203 Thereafter 50 Total $ 964

Uncompleted Construction Contra

Uncompleted Construction Contracts	6 Months Ended
	Jun. 30, 2016
Contractors [Abstract]
Uncompleted Construction Contracts	8. UNCOMPLETED CONSTRUCTION CONTRACTS The status of uncompleted construction contracts is as follows (in thousands): June 30, 2016 December 31, 2015 (Unaudited) Costs incurred on uncompleted contracts $ 1,964 $ 1,155 Inventory purchased for specific contracts 1,076 1,819 Estimated profit 364 142 Subtotal 3,404 3,116 Less billings to date (2,927 ) (3,409 ) Total $ 477 $ (293 ) Included in the following balance sheet captions: Costs and estimated profit in excess of billings $ 1,173 $ 472 Billings in excess of costs and estimated profit (696 ) (765 ) Total $ 477 $ (293 ) The Company had approximately $8.1 million of work under contract remaining to be recognized at June 30, 2016.

Accounts Payable Retainage

Accounts Payable Retainage	6 Months Ended
	Jun. 30, 2016
Accounts Payable Retainage
Accounts Payable Retainage	9. ACCOUNTS PAYABLE RETAINAGE Accounts payable of approximately $4.2 million at June 30, 2016 included retainage amounts due to subcontractors totaling approximately $0.5 million. Accounts payable of approximately $3.5 million at December 31, 2015 included retainage amounts due to subcontractors totaling approximately $0.5 million. Retainage balances at June 30, 2016 are expected to be settled within the next twelve months.

Other Accrued Liabilities

Other Accrued Liabilities	6 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
Other Accrued Liabilities	10. OTHER ACCRUED LIABILITIES Other accrued liabilities are comprised of the following (in thousands): June 30, 2016 December 31, 2015 (Unaudited) Accrued interest expense $ 544 $ 502 Accrued severance and related costs 120 331 Accrued sales taxes 549 562 Accrued health insurance costs 208 133 Accrued sales rebates 205 402 Accrued warranty 47 39 Other 6 15 Total other current accrued liabilities $ 1,679 $ 1,984 In connection with a restructuring of our KBS operations during the third quarter of 2015, we terminated a total of six employees. Accrued severance costs of $120,000 as of June 30, 2016 are payable in equal weekly amounts through October 2016. Changes in accrued warranty are summarized below (in thousands): Six months ended June 30, 2016 2015 Accrual balance, beginning of period $ 39 $ 78 Accruals for warranties 37 13 Settlements made (29 ) (33 ) Accrual balance, end of period $ 47 $ 58

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Notes Payable	11. NOTES PAYABLE On February 23, 2016, ATRM and KBS entered into the Loan Agreement with Gerber Finance, providing KBS with a revolving line of credit with borrowing availability of up to $4.0 million. The initial term of the Loan Agreement expires on February 22, 2018, but extends automatically for additional one-year periods unless a party provides prior written notice of termination. Availability under the line of credit is based on a formula tied to KBS’s eligible accounts receivable, inventory, equipment and real estate. Borrowings bear interest at the prime rate plus 2.75%, with interest payable monthly. The outstanding principal balance is payable upon expiration of the term of the Loan Agreement. The Loan Agreement also provides for certain fees payable to the Lender during its term. KBS’s obligations under the Loan Agreement are secured by all of its property and assets and are guaranteed by ATRM. Unsecured promissory notes issued by KBS and ATRM are subordinate to KBS’s obligations under the Loan Agreement. The Loan Agreement contains representations, warranties, affirmative and negative covenants, events of default and other provisions customary for financings of this type. Financial covenants require that KBS maintains a maximum leverage ratio (as defined in the Loan Agreement) of 7:1 at December 31, 2016 and that KBS not incur a net annual post-tax loss in any fiscal year during the term of the Loan Agreement. The occurrence of any event of default under the Loan Agreement may result in KBS’s obligations becoming immediately due and payable. KBS made an initial draw of approximately $2.6 million against the line of credit on February 23, 2016 and the balance owing under the Loan Agreement was approximately $3.3 million at June 30, 2016. We incurred approximately $230,000 of debt issuance costs in connection with the Loan Agreement. As discussed in Note 2, we present unamortized debt issuance costs as a deduction from the carrying amount of the line of credit balance. As of June 30, 2016, the net carrying value of the line of credit was as follows: Line of credit balance $ 3,531 Unamortized debt issuance costs (194 ) Line of credit balance, net $ 3,337 In April 2014, as partial consideration for the purchase of KBS, we issued a $5.5 million promissory note to the primary seller of KBS. We were unable to repay the note on its maturity date, December 1, 2014. In April 2015, we asserted certain indemnification and other claims against the sellers of KBS and on June 26, 2015 we entered into a settlement agreement with the sellers related to such claims. The settlement agreement provided for, among other things, the amendment of the note to reduce its principal amount from $5.5 million to $2.5 million and the forgiveness of all then-accrued interest related to the note. The Company recorded a gain of $3.7 million in the three- and six-month periods ended June 30, 2015 related to the settlement. The amended principal amount is payable in monthly installments of $100,000 on the first business day of each month, which began on July 1, 2015. See Note 12.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Long-Term Debt	12. LONG-TERM DEBT Long-term debt consists of the following (in thousands): June 30, 2016 December 31, 2015 (Unaudited) Promissory note payable to LSVI, issued on April 1, 2014, unsecured, 10% per annum interest payable semi-annually in July and January, with any unpaid principal and interest due on April 1, 2019 (1) $ 4,000 $ 5,000 Promissory notes payable to LSV Co-Invest I, unsecured, 10% per annum interest payable semi-annually in July and January, with any unpaid principal and interest due on April 1, 2019 (2) 4,500 4,500 Promissory note payable, unsecured, payable in monthly installments of $100,000 through July 2017, interest imputed at 9.5% (3) 1,231 1,757 Installment payment agreement, 8.0% per annum interest, payable in monthly installments of $1,199 through September 2020 (4) 51 56 Notes payable, secured by equipment, 6.6% per annum interest, with varying maturity dates through September 2018 3 44 Total long-term debt 9,785 11,357 Current portion (1,145 ) (1,105 ) Noncurrent portion $ 8,640 $ 10,252 (1) In April 2014, we issued the promissory note to LSVI in the original principal amount of $6.0 million. The proceeds from the note were used to finance a portion of the purchase price for the acquisition of KBS. ATRM made principal payments on the note of $1.0 million on each of December 30, 2014 and February 25, 2016. The note is subordinate to obligations under the Loan Agreement. (2) In 2014, in order to provide additional working capital to ATRM, we issued two promissory notes to LSV Co-Invest I in the amounts of $2.5 million and $2.0 million, respectively. The notes are subordinate to obligations under the Loan Agreement. (3) Promissory note payable to the principal seller of KBS. The note does not accrue interest unless it is in default, in which case the annual interest rate would be 10%. The Company has imputed interest at an annual rate of 9.5%. (4) Agreement to finance the purchase of software license rights and consulting services related to the implementation of enterprise management information system. As of June 30, 2016, LSVI owned 1,067,885 shares of our common stock, or approximately 47.1% of our outstanding shares. Jeffrey E. Eberwein, ATRM’s Chairman of the Board of Directors, is the manager of LSVGP, the general partner of LSVI and LSV Co-Invest I, and sole member of LSVM, the investment manager of LSVI. ATRM’s sale of promissory notes to LSVI and LSV Co-Invest I were approved by a Special Committee of our Board of Directors consisting solely of independent directors.

Stock Incentive Plan and Share-

Stock Incentive Plan and Share-Based Compensation	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Incentive Plan and Share-Based Compensation	13. STOCK INCENTIVE PLAN AND SHARE-BASED COMPENSATION ATRM uses the fair value method to measure and recognize share-based compensation. We determine the fair value of stock options on the grant date using the Black-Scholes option valuation model. We determine the fair value of restricted stock awards based on the quoted market price of our common stock on the grant date. We recognize the compensation expense for stock options and restricted stock awards on a straight-line basis over the vesting period of the applicable awards. 2014 Incentive Plan Our 2014 Incentive Plan (the “2014 Plan”) was approved by our Board of Directors on October 9, 2014 and became effective on December 4, 2014 upon approval by shareholders. The 2014 Plan is administered by the Compensation Committee of our Board of Directors. The purpose of the 2014 Plan is to provide employees, consultants and members of our Board of Directors the opportunity to acquire an equity interest in the Company through the issuance of various stock-based awards such as stock options and restricted stock. 100,000 shares of the Company’s common stock are authorized to be issued pursuant to the 2014 Plan. On June 5, 2015, ATRM granted restricted stock awards for a total of 60,000 shares of the Company’s common stock to its directors and chief financial officer. The shares vested one year after the grant date. The fair value of the awards was determined to be $4.48 per share, the closing price of our common stock on the grant date. Compensation expense related to these grants amounted to approximately $48,000 and $115,000 for the three and six months ended June 30, 2016, respectively, and is included in the caption “Selling, general and administrative expenses” in our condensed consolidated statement of operations. Compensation expense related to these grants amounted to approximately $20,000 for the three and six months ended June 30, 2015 and is included in the caption “Selling, general and administrative expenses” in our condensed consolidated statement of operations. As of June 30, 2016, these shares are fully vested and all compensation expense related to these grants has been fully recognized. 2003 Stock Incentive Plan A stock incentive plan approved by our shareholders and adopted in May 2003 (the “2003 Plan”) terminated in February 2013. Stock options granted under the 2003 Plan continue to be exercisable according to their individual terms. The following table summarizes stock option activity under the 2003 Plan for the six months ended June 30, 2016: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Term Aggregate Intrinsic Value (in thousands) Outstanding, January 1, 2016 27,500 $ 6.88 No activity during the six months ended June 30, 2016 — — Outstanding, June 30, 2016 27,500 $ 6.88 1.0 year $ 0 Exercisable, June 30, 2016 27,500 $ 6.88 1.0 year $ 0 All stock options outstanding at June 30, 2016 are nonqualified options which expire at varying dates through November 2017. The aggregate intrinsic values in the table above are zero because the option exercise prices for all outstanding options exceeded ATRM’s closing stock price on June 30, 2016.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	14. INCOME TAXES We record the benefit we will derive in future accounting periods from tax losses and credits and deductible temporary differences as “deferred tax assets”. We record a valuation allowance to reduce the carrying value of our net deferred tax assets if, based on all available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Since 2009, we have maintained a valuation allowance to fully reserve our deferred tax assets. We recorded a full valuation allowance in 2009 because we determined there was not sufficient positive evidence regarding our potential for future profits to outweigh the negative evidence of our three-year cumulative loss position at that time. We expect to continue to maintain a full valuation allowance until we determine that we can sustain a level of profitability that demonstrates our ability to realize these assets. To the extent we determine that the realization of some or all of these benefits is more likely than not based upon expected future taxable income, a portion or all of the valuation allowance will be reversed. Such a reversal would be recorded as an income tax benefit and, for some portion related to deductions for stock option exercises, an increase in shareholders’ equity. At June 30, 2016, we have recorded a deferred tax liability of $16,500 for the taxable differences related to our indefinite lived intangible assets when calculating our valuation allowance due to the unpredictability of the reversal of these differences.

Legal Proceedings

Legal Proceedings	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	15. LEGAL PROCEEDINGS UTHE Technology Corporation v. Aetrium Incorporated Since December 1993, an action brought by UTHE Technology Corporation (“UTHE”) against ATRM and its then sales manager for Southeast Asia (“Sales Manager”), asserting federal securities claims, a RICO claim, and certain state law claims, had been stayed in the United States District Court for the Northern District of California. UTHE’s claims were based on its allegations that four former employees of a Singapore company, which UTHE formerly owned, conspired to and did divert business from the subsidiary, and in turn UTHE, and directed that business to themselves and a secret company they had formed, which forced UTHE to sell its subsidiary shares to the former employee defendants at a distressed price. The complaint alleged that ATRM and the Sales Manager participated in the conspiracy carried out by the former employee defendants. In December 1993, the case was dismissed as to the former employee defendants because of a contract requiring UTHE and them to arbitrate their claims in Singapore. The District Court stayed the case against ATRM and the Sales Manager pending the resolution of arbitration in Singapore involving UTHE and three of the former employee defendants, but not involving ATRM or the Sales Manager. ATRM received notice in March 2012 that awards were made in the Singapore arbitration against one or more of the former employee defendants who were parties to the arbitration. In June 2012, UTHE filed a motion to reopen the case against ATRM and the Sales Manager and to lift the stay, which the court granted. On September 13, 2013, the court entered final judgment dismissing all remaining claims UTHE asserted against ATRM in the litigation. On September 23, 2013, UTHE appealed the district court judgment to the United States Court of Appeal for the Ninth Circuit only as to the dismissal of UTHE’s RICO claim. The appeal was argued in a court hearing on November 19, 2015. On December 11, 2015, the Court of Appeal issued an order reversing the district court’s grant of summary judgment of UTHE’s RICO claim and remanded the case back to the district court for further proceedings. On April 20, 2016, the district court stayed the case pending a decision in the Supreme Court case RJR Nabisco, Inc. v. The European Community RJR Nabisco RJR Nabisco Avila Plumbing & Heating Contractor, Inc. v. Modular Fun I, Inc. f/k/a KBS Building Systems, Inc. & KBS Builders, Inc. (Maine Superior Court, Oxford County, CV-15-39) Avila Plumbing and Heating Contractor, Inc. (“Contractor”) had alleged that Modular Fun I, Inc., f/k/a KBS Building Systems Inc. & KBS Builders, Inc. (the “KBS Parties”) had failed to pay Contractor $476,477.46 that Contractor had claimed it was entitled to pursuant to contracts between it and the KBS Parties. Contractor had claimed it entered into agreements with the KBS Parties in relation to two separate projects to supply materials and furnish services relating to the design and installation of plumbing and HVAC systems. Contractor had claimed it did the work and furnished the materials contracted for and that the KBS Parties had not paid it pursuant to the contract. KBS had countersued for breach of contract and negligence, claiming that Contractor had failed to properly complete the plumbing and HVAC services it was retained to perform on one of the projects. The general contractor on that project had refused to pay KBS $518,842 that KBS was owed citing significant deficiencies in work performed and materials installed by Contractor as its reason for withholding payment from KBS. KBS had filed a lien in the amount of $518,842 on the property where such project is located and had brought a separate suit against the general contractor and others in Middlesex Superior Court in Massachusetts to enforce its lien and collect the amount owed to KBS on the project. The case was dismissed on April 12, 2016. KBE Building Corporation v. KBS Builders, Inc., and ATRM Holdings, Inc., et. al. At the time of the KBS acquisition in April 2014, KBS purchased receivables for a construction project known as the Nelton Court Housing Project (“Nelton Court”) in Hartford, CT, and also performed certain “punch-list” and warranty work. Modular units for the Nelton Court project were supplied by KBS Building Systems, Inc. (“KBS-BSI”) pursuant to a contract with KBE Building Corporation (“KBE”). KBE has asserted claims against KBS-BSI, KBS and ATRM arising out of alleged delays, and for the repair of certain alleged defects in the modular units supplied to the project. KBE’s claim seeks an un-specified amount of damages. The action is still in the pleadings stage. The action has been transferred to the complex litigation docket of the Hartford Superior Court and remains in the pleadings stage with discovery stayed by the Court until the time of an August 15, 2016 status conference.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Event	16. SUBSEQUENT EVENT On August 12, 2016, the Company, along with LSVI and LSV Co-Invest I, amended the LSVI and LSV Co-Invest I promissory notes allowing the Company, at its sole option, to elect to make any interest payment in-kind at an annual rate of 12% (versus the 10% interest rate applied to cash payments) for that period. The Company has elected the PIK Interest option for the six-month period ended June 30, 2016 now due on August 31, 2016.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Financial Assets Measured on Recurring Basis	Financial assets reported at fair value on a recurring basis included the following at June 30, 2016 (in thousands): Level 1 Level 2 Level 3 Contingent earn-out receivable related to transfer of former product line: Current portion $ — $ — $ 363 Noncurrent portion — — 380 Total $ — $ — $ 743
Schedule of Fair Value of Assets Activity	The following table summarizes the Level 3 activity for our contingent earn-out receivable (in thousands): Level 3 Balance at December 31, 2015 $ 877 Add - adjustments based on fair value assessments at March 31, 2016 and June 30, 2016 2 Subtract - settlements (136 ) Balance at June 30, 2016 $ 743
Schedule of Quantitative Information Level 3 Fair Value Measurements	Quantitative information about Level 3 fair value measurements on a recurring basis at June 30, 2016 is summarized in the table below: Fair Value Asset Valuation Technique Unobservable Input Amount Contingent earn-out receivable related to transfer of former product line Discounted cash flow Total projected revenue $ 12 million Revenue growth rate 0 % Performance weighted average 60% to 125% Discount rate 10 %

Accounts Receivable, Net (Table

Accounts Receivable, Net (Tables)	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
Schedule of Accounts Receivable	Accounts receivable consists of the following (in thousands): June 30, 2016 December 31, 2015 (Unaudited) Contract billings $ 2,272 $ 2,586 Retainage 347 347 Subtotal 2,619 2,933 Less - allowance for doubtful accounts (300 ) (370 ) Accounts receivable, net $ 2,319 $ 2,563

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories are comprised of the following (in thousands): June 30, 2016 December 31, 2015 (Unaudited) Raw materials $ 1,088 $ 1,120 Finished goods 75 121 Total inventories $ 1,163 $ 1,241

Goodwill and Intangible Asset25

Goodwill and Intangible Assets, Net (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets are comprised of the following (in thousands): June 30, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value (unaudited) Indefinite-lived intangible assets: Goodwill $ 1,733 $ — $ 1,733 $ 1,733 $ — $ 1,733 Trademarks 290 — 290 290 — 290 Total 2,023 — 2,023 2,023 — 2,023 Finite-lived intangible assets: Customer relationships 1,420 (456 ) 964 1,420 (355 ) 1,065 Purchased backlog 990 (990 ) — 990 (990 ) — Total 2,410 (1,446 ) 964 2,410 (1,345 ) 1,065 Total intangible assets $ 4,433 $ (1,446 ) $ 2,987 $ 4,433 $ (1,345 ) $ 3,088
Schedule of Estimated Amortization of Intangible Assets	Estimated amortization of purchased intangible assets over the next five years is as follows (in thousands): 2016 (six months) $ 102 2017 203 2018 203 2019 203 2020 203 Thereafter 50 Total $ 964

Uncompleted Construction Cont26

Uncompleted Construction Contracts (Tables)	6 Months Ended
	Jun. 30, 2016
Contractors [Abstract]
Schedule of Uncompleted Contracts	The status of uncompleted construction contracts is as follows (in thousands): June 30, 2016 December 31, 2015 (Unaudited) Costs incurred on uncompleted contracts $ 1,964 $ 1,155 Inventory purchased for specific contracts 1,076 1,819 Estimated profit 364 142 Subtotal 3,404 3,116 Less billings to date (2,927 ) (3,409 ) Total $ 477 $ (293 ) Included in the following balance sheet captions: Costs and estimated profit in excess of billings $ 1,173 $ 472 Billings in excess of costs and estimated profit (696 ) (765 ) Total $ 477 $ (293 )

Other Accrued Liabilities (Tabl

Other Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
Schedule of Other Accrued Liabilities	Other accrued liabilities are comprised of the following (in thousands): June 30, 2016 December 31, 2015 (Unaudited) Accrued interest expense $ 544 $ 502 Accrued severance and related costs 120 331 Accrued sales taxes 549 562 Accrued health insurance costs 208 133 Accrued sales rebates 205 402 Accrued warranty 47 39 Other 6 15 Total other current accrued liabilities $ 1,679 $ 1,984
Schedule of Changes in Accrued Warranty	Changes in accrued warranty are summarized below (in thousands): Six months ended June 30, 2016 2015 Accrual balance, beginning of period $ 39 $ 78 Accruals for warranties 37 13 Settlements made (29 ) (33 ) Accrual balance, end of period $ 47 $ 58

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of Net Carrying Value of Line of Credit	. As of June 30, 2016, the net carrying value of the line of credit was as follows: Line of credit balance $ 3,531 Unamortized debt issuance costs (194 ) Line of credit balance, net $ 3,337

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of Long-Term Debt	Long-term debt consists of the following (in thousands): June 30, 2016 December 31, 2015 (Unaudited) Promissory note payable to LSVI, issued on April 1, 2014, unsecured, 10% per annum interest payable semi-annually in July and January, with any unpaid principal and interest due on April 1, 2019 (1) $ 4,000 $ 5,000 Promissory notes payable to LSV Co-Invest I, unsecured, 10% per annum interest payable semi-annually in July and January, with any unpaid principal and interest due on April 1, 2019 (2) 4,500 4,500 Promissory note payable, unsecured, payable in monthly installments of $100,000 through July 2017, interest imputed at 9.5% (3) 1,231 1,757 Installment payment agreement, 8.0% per annum interest, payable in monthly installments of $1,199 through September 2020 (4) 51 56 Notes payable, secured by equipment, 6.6% per annum interest, with varying maturity dates through September 2018 3 44 Total long-term debt 9,785 11,357 Current portion (1,145 ) (1,105 ) Noncurrent portion $ 8,640 $ 10,252 (1) In April 2014, we issued the promissory note to LSVI in the original principal amount of $6.0 million. The proceeds from the note were used to finance a portion of the purchase price for the acquisition of KBS. ATRM made principal payments on the note of $1.0 million on each of December 30, 2014 and February 25, 2016. The note is subordinate to obligations under the Loan Agreement. (2) In 2014, in order to provide additional working capital to ATRM, we issued two promissory notes to LSV Co-Invest I in the amounts of $2.5 million and $2.0 million, respectively. The notes are subordinate to obligations under the Loan Agreement. (3) Promissory note payable to the principal seller of KBS. The note does not accrue interest unless it is in default, in which case the annual interest rate would be 10%. The Company has imputed interest at an annual rate of 9.5%. (4) Agreement to finance the purchase of software license rights and consulting services related to the implementation of enterprise management information system.

Stock Incentive Plan and Shar30

Stock Incentive Plan and Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity	The following table summarizes stock option activity under the 2003 Plan for the six months ended June 30, 2016: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Term Aggregate Intrinsic Value (in thousands) Outstanding, January 1, 2016 27,500 $ 6.88 No activity during the six months ended June 30, 2016 — — Outstanding, June 30, 2016 27,500 $ 6.88 1.0 year $ 0 Exercisable, June 30, 2016 27,500 $ 6.88 1.0 year $ 0

Financial Position, Liquidity31

Financial Position, Liquidity and Capital Resources (Details Narrative) - USD ($) $ in Thousands	Aug. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Feb. 23, 2016	Dec. 31, 2015	Dec. 31, 2014	Apr. 30, 2014
Accumulated deficit		$ 76,453		$ 76,453			$ 73,651
Line of credit, current, net of deferred financing costs		3,337		3,337
Interest Expense		423	$ 402	724	$ 789
Gerber Finance Inc [Member] | Loan And Security Agreement [Member]
Line of credit with maximum borrowing availability						$ 4,000
Line of credit, current, net of deferred financing costs						$ 3,300
KBS Builders [Member]
Outstanding debt		13,000		13,000
Line of credit, current, net of deferred financing costs		$ 3,300		$ 3,300
Debt instrument annual interest rate		10.00%		10.00%
KBS Builders [Member] | Unsecured Promissory Note [Member]
Debt principal amount		$ 1,200		$ 1,200
Lone Star Value Investors, LP [Member]
Debt principal amount									$ 6,000
Lone Star Value Investors, LP [Member] | Promissory Notes [Member]
Debt principal amount		4,000		$ 4,000
Lone Star Value Co-Invest I, LP [Member]
Interest Expense	$ 445
Debt instrument annual interest rate	10.00%
Debt due date	Jul. 5, 2016			Apr. 1, 2019
Lone Star Value Co-Invest I, LP [Member] | Promissory Notes [Member]
Debt principal amount		$ 4,500		$ 4,500				$ 2,500
Lone Star Value Co-Invest I, LP [Member] | Payment In-Kind [Member]
Interest Expense				$ 534
Debt instrument annual interest rate	12.00%	12.00%		12.00%
Debt due date				Aug. 31, 2016
Incremental interest expense				$ 89

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value of Financial Assets Measured on Recurring Basis (Details) $ in Thousands	Jun. 30, 2016USD ($)
Level 1 [Member]
Contingent earn-out receivable, Current portion
Contingent earn-out receivable, Noncurrent portion
Contingent earn out receivable, Total
Level 2 [Member]
Contingent earn-out receivable, Current portion
Contingent earn-out receivable, Noncurrent portion
Contingent earn out receivable, Total
Level 3 [Member]
Contingent earn-out receivable, Current portion	363
Contingent earn-out receivable, Noncurrent portion	380
Contingent earn out receivable, Total	$ 743

Fair Value Measurements - Sch33

Fair Value Measurements - Schedule of Fair Value of Assets Activity (Details) - Earn-Out Receivable [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Balance, beginning	$ 877
Add - adjustments based on fair value assessments at March 31, 2016 and June 30, 2016	2
Subtract - settlements	(136)
Balance, ending	$ 743

Fair Value Measurements - Sch34

Fair Value Measurements - Schedule of Quantitative Information Level 3 Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Fair Value Asset	Contingent earn-out receivable related to transfer of former product line
Fair value of assets, valuation technique	Discounted cash flow
Unobservable input projected revenue	$ 12,000
Unobservable input Revenue growth rate	0.00%
Unobservable input performance weighted average, Minimum	60.00%
Unobservable input performance weighted average, Maximum	125.00%
Unobservable input discount rate	10.00%

Accounts Receivable, Net - Sche

Accounts Receivable, Net - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Receivables [Abstract]
Contract billings	$ 2,272	$ 2,586
Retainage	347	347
Subtotal	2,619	2,933
Less - allowance for doubtful accounts	(300)	(370)
Accounts receivable, net	$ 2,319	$ 2,563

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 1,088	$ 1,120
Finished goods	75	121
Total inventories	$ 1,163	$ 1,241

Goodwill and Intangible Asset37

Goodwill and Intangible Assets, Net (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 51	$ 61	$ 101	$ 221

Goodwill and Intangible Asset38

Goodwill and Intangible Assets, Net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Total finite-lived intangible assets Net Carrying Value	$ 964
Gross Carrying Amount	4,433	$ 4,433
Accumulated Amortization	(1,446)	(1,345)
Net Carrying Value	2,987	3,088
Indefinite Lived Intangible Assets [Member]
Indefinite-lived intangible assets Gross Carrying Amount	2,023	2,023
Indefinite-lived intangible assets Gross Accumulated Amortization
Indefinite-lived intangible assets Gross Net Carrying Value	2,023	2,023
Indefinite Lived Intangible Assets [Member] | Trademarks [Member]
Indefinite-lived intangible assets Gross Carrying Amount	290	290
Indefinite-lived intangible assets Gross Accumulated Amortization
Indefinite-lived intangible assets Gross Net Carrying Value	290	290
Finite Lived Intangible Assets [Member]
Finite lived intangible assets Gross Carrying Amount	2,410	2,410
Finite lived intangible assets Accumulated Amortization	(1,446)	(1,345)
Total finite-lived intangible assets Net Carrying Value	964	1,065
Finite Lived Intangible Assets [Member] | Customer Relationships [Member]
Finite lived intangible assets Gross Carrying Amount	1,420	1,420
Finite lived intangible assets Accumulated Amortization	(456)	(355)
Total finite-lived intangible assets Net Carrying Value	964	1,065
Finite Lived Intangible Assets [Member] | Purchased Backlog [Member]
Finite lived intangible assets Gross Carrying Amount	990	990
Finite lived intangible assets Accumulated Amortization	(990)	(990)
Total finite-lived intangible assets Net Carrying Value
Goodwill [Member] | Indefinite Lived Intangible Assets [Member]
Indefinite-lived intangible assets Gross Carrying Amount	1,733	1,733
Indefinite-lived intangible assets Gross Accumulated Amortization
Indefinite-lived intangible assets Gross Net Carrying Value	$ 1,733	$ 1,733

Goodwill and Intangible Asset39

Goodwill and Intangible Assets, Net - Summary of Estimated Amortization of Intangible Assets (Details) $ in Thousands	Jun. 30, 2016USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2016 (six months)	$ 102
2,017	203
2,018	203
2,019	203
2,020	203
Thereafter	50
Total finite-lived intangible assets	$ 964

Uncompleted Construction Cont40

Uncompleted Construction Contracts (Details Narrative) $ in Thousands	Jun. 30, 2016USD ($)
Contractors [Abstract]
Amount of remaining contract	$ 8,100

Uncompleted Construction Cont41

Uncompleted Construction Contracts - Schedule of Uncompleted Contracts (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Contractors [Abstract]
Costs incurred on uncompleted contracts	$ 1,964	$ 1,155
Inventory purchased for specific contracts	1,076	1,819
Estimated profit	364	142
Subtotal	3,404	3,116
Less billings to date	(2,927)	(3,409)
Total	477	(293)
Costs and estimated profit in excess of billings	1,173	472
Billings in excess of costs and estimated profit	(696)	(765)
Total	$ 477	$ (293)

Accounts Payable Retainage (Det

Accounts Payable Retainage (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounts payable	$ 4,185	$ 3,491
Subcontractors [Member]
Accounts payable retainage	$ 500	$ 500

Other Accrued Liabilities (Deta

Other Accrued Liabilities (Details Narrative) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2015Employees	Jun. 30, 2016USD ($)
Severance charge | $		$ 120
KBS Operations [Member]
Number of employees terminated during the period | Employees	6

Other Accrued Liabilities - Sch

Other Accrued Liabilities - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued interest expense	$ 544	$ 502
Accrued severance and related costs	120	331
Accrued sales taxes	549	562
Accrued health insurance costs	208	133
Accrued sales rebates	205	402
Accrued warranty	47	39
Other	6	15
Total other current accrued liabilities	$ 1,679	$ 1,984

Other Accrued Liabilities - S45

Other Accrued Liabilities - Schedule of Changes in Accrued Warranty (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Payables and Accruals [Abstract]
Accrual balance, beginning of period	$ 39	$ 78
Accruals for warranties	37	13
Settlements made	(29)	(33)
Accrual balance, end of period	$ 47	$ 58

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($) $ in Thousands	Feb. 23, 2016	Apr. 30, 2014	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Line of credit, current, net deferred financing costs				$ 3,337
KBS Builders [Member]
Notes payable maturity date		Dec. 1, 2014
Line of credit	$ 2,600
Unsecured promissory note, principal amount		$ 5,500
Debt forgiveness amount		2,500
Gain on settlement			$ 3,700		$ 3,700
Notes payable monthly installment		$ 100
KBS Builders [Member]
Line of credit, current, net deferred financing costs				3,300
Debt issuance costs				$ 230
Loan Agreement [Member] | Gerber Finance Inc [Member]
Line of credit with maximum borrowing availability	$ 4,000
Notes payable maturity date	Feb. 22, 2018
Loan Agreement [Member] | Gerber Finance Inc [Member] | December 31, 2016 [Member]
Note payable maximum leverage ratio				7:1
Loan Agreement [Member] | Gerber Finance Inc [Member] | Prime Rate [Member]
Borrowing bearing variable interest rate	2.75%

Notes Payable - Schedule of Net

Notes Payable - Schedule of Net Carrying Value of Line of Credit (Details) $ in Thousands	Jun. 30, 2016USD ($)
Debt Disclosure [Abstract]
Line of credit balance	$ 3,531
Unamortized debt issuance costs	(194)
Line of credit balance, net	$ 3,337

Long-Term Debt (Details Narrati

Long-Term Debt (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Aug. 31, 2016	Feb. 25, 2016	Dec. 31, 2014	Dec. 30, 2014	Apr. 30, 2014
LSVI [Member]
Number of shares owned	1,067,885
Percentage of outstanding shares	47.10%
Loan Agreement [Member]
Debt principal payments			$ 1,000		$ 1,000
Lone Star Value Investors, LP [Member]
Debt principal amount						$ 6,000
Lone Star Value Investors, LP [Member] | Promissory Notes [Member]
Debt principal amount	$ 4,000
Lone Star Value Co-Invest I, LP [Member]
Note payable, bears interest percentage		10.00%
Lone Star Value Co-Invest I, LP [Member] | Promissory Notes [Member]
Debt principal amount	$ 4,500			$ 2,500
Lone Star Value Co-Invest I, LP [Member] | Promissory Notes Two [Member]
Debt principal amount				$ 2,000
KBS Builders [Member]
Note payable, bears interest percentage	10.00%
Promissory note imputed interest rate	9.50%

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
Total long-term debt		$ 9,785	$ 11,357
Current portion		(1,145)	(1,105)
Noncurrent portion		8,640	10,252
Promissory note payable to LSVI, issued on April 1, 2014, unsecured, 10% per annum interest payable semi-annually in July and January, with any unpaid principal and interest due on April 1, 2019 [Member]
Total long-term debt	[1]	4,000	5,000
Promissory notes payable to LSV Co-Invest I, unsecured, 10% per annum interest payable semi-annually in July and January, with any unpaid principal and interest due on April 1, 2019 [Member]
Total long-term debt	[2]	4,500	4,500
Promissory note payable, unsecured, payable in monthly installments of $100,000 through July 2017, interest imputed at 9.5% [Member]
Total long-term debt	[3]	1,231	1,757
Installment payment agreement, 8.0% per annum interest, payable in monthly installments of $1,199 through September 2020 [Member]
Total long-term debt	[4]	51	56
Notes payable, secured by equipment, 6.6% per annum interest, with varying maturity dates through September 2018 [Member]
Total long-term debt		$ 3	$ 44
[1]	In April 2014, we issued the promissory note to LSVI in the original principal amount of $6.0 million. The proceeds from the note were used to finance a portion of the purchase price for the acquisition of KBS. ATRM made principal payments on the note of $1.0 million on each of December 30, 2014 and February 25, 2016. The note is subordinate to obligations under the Loan Agreement.
[2]	In 2014, in order to provide additional working capital to ATRM, we issued two promissory notes to LSV Co-Invest I in the amounts of $2.5 million and $2.0 million, respectively. The notes are subordinate to obligations under the Loan Agreement.
[3]	Promissory note payable to the principal seller of KBS. The note does not accrue interest unless it is in default, in which case the annual interest rate would be 10%. The Company has imputed interest at an annual rate of 9.5%.
[4]	Agreement to finance the purchase of software license rights and consulting services related to the implementation of enterprise management information system.

Long-Term Debt - Schedule of 50

Long-Term Debt - Schedule of Long-Term Debt (Details) (Parenthetical) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Promissory note payable to LSVI, issued on April 1, 2014, unsecured, 10% per annum interest payable semi-annually in July and January, with any unpaid principal and interest due on April 1, 2019 [Member]
Long-term debt, interest percentage, per annum	10.00%	10.00%
Notes payable maturity date	Apr. 1, 2019	Apr. 1, 2019
Promissory notes payable to LSV Co-Invest I, unsecured, 10% per annum interest payable semi-annually in July and January, with any unpaid principal and interest due on April 1, 2019 [Member]
Long-term debt, interest percentage, per annum	10.00%	10.00%
Notes payable maturity date	Apr. 1, 2019	Apr. 1, 2019
Promissory note payable, unsecured, payable in monthly installments of $100,000 through July 2017, interest imputed at 9.5% [Member]
Long-term debt, interest percentage, per annum	9.50%	9.50%
Notes payable maturity date	Jul. 31, 2017	Jul. 31, 2017
Promissory note, payable in monthly installments	$ 100	$ 100
Installment payment agreement, 8.0% per annum interest, payable in monthly installments of $1,199 through September 2020 [Member]
Long-term debt, interest percentage, per annum	8.00%	8.00%
Notes payable maturity date	Sep. 30, 2020	Sep. 30, 2020
Promissory note, payable in monthly installments	$ 1,199	$ 1,199
Notes payable, secured by equipment, 6.6% per annum interest, with varying maturity dates through September 2018 [Member]
Long-term debt, interest percentage, per annum	6.60%	6.60%
Notes payable maturity date	Sep. 30, 2018	Sep. 30, 2018

Stock Incentive Plan and Shar51

Stock Incentive Plan and Share-Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jun. 05, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 04, 2014
Share-based compensation expense		$ 48	$ 20	$ 115	$ 20
Directors And Chief Financial Officer [Member]
Restricted stock awards	60,000
Fair value of stock awards	$ 4.48
2014 Incentive Plan [Member]
Shares authorized for incentive plan						100,000

Stock Incentive Plan and Shar52

Stock Incentive Plan and Share-Based Compensation - Schedule of Share-based Compensation, Stock Options, Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Shares, Outstanding, Beginning balance | shares	27,500
Number of Shares, No activity during the six months ended June 30, 2016 | shares
Number of Shares, Outstanding, Ending balance | shares	27,500
Number of Shares, Exercisable, Balance | shares	27,500
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares	$ 6.88
Weighted Average Exercise Price, No activity during the six months ended June 30, 2016 | $ / shares
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares	6.88
Weighted Average Exercise Price, Exercisable, Balance | $ / shares	$ 6.88
Weighted Average Remaining Contract Term, Outstanding, Ending balance	1 year
Weighted Average Remaining Contract Term, Exercisable, Balance	1 year
Aggregate Intrinsic Value, Outstanding, Balance | $	$ 0
Aggregate Intrinsic Value, Exercisable, Balance | $	$ 0

Income Taxes (Details Narrative

Income Taxes (Details Narrative) $ in Thousands	Jun. 30, 2016USD ($)
Income Tax Disclosure [Abstract]
Deferred tax liability	$ 16,500

Legal Proceedings (Details Narr

Legal Proceedings (Details Narrative) - Avila Plumbing and Heating Contractor, Inc [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Fail to pay to the contractors	$ 476,477
Refusing to pay the withholding payment	518,842
Lien amount on property	$ 518,842

Subsequent Event (Details Narra

Subsequent Event (Details Narrative) - LSVI And LSV Co Invest I [Member]	Aug. 12, 2016
Promissory notes, annual interest rate	12.00%
Promissory notes, interest rate applied to cash payments	10.00%
Promissory notes, maturity date	Aug. 31, 2016