Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ENERGY FOCUS, INC/DE | ||
Entity Central Index Key | 924,168 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 11,710,549 | ||
Entity Public Float | $ 63.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 16,629 | $ 34,640 |
Trade accounts receivable, less allowances of $236 and $155, respectively | 5,640 | 10,110 |
Inventories, net | 9,469 | 7,732 |
Prepaid and other current assets | 882 | 740 |
Total current assets | 32,620 | 53,222 |
Property and equipment, net | 2,325 | 2,429 |
Other assets | 33 | 51 |
Total assets | 34,978 | 55,702 |
Current liabilities: | ||
Accounts payable | 3,257 | 7,295 |
Accrued liabilities | 1,676 | 2,917 |
Deferred revenue | 0 | 93 |
Total current liabilities | 4,933 | 10,305 |
Other liabilities | 107 | 77 |
Total liabilities | 5,040 | 10,382 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, par value $0.0001 per share: Authorized: 2,000,000 shares in 2016 and 2015 Issued and outstanding: no shares in 2016 and 2015 | 0 | 0 |
Common stock, par value $0.0001 per share: Authorized: 30,000,000 shares in 2016 and 2015 Issued and outstanding: 11,710,549 at December 31, 2016 and 11.648,978 at December 31, 2015 | 1 | 1 |
Additional paid-in capital | 126,875 | 125,369 |
Accumulated other comprehensive loss | (1) | 0 |
Accumulated deficit | (96,937) | (80,050) |
Total stockholders' equity | 29,938 | 45,320 |
Total liabilities and stockholders' equity | $ 34,978 | $ 55,702 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 236 | $ 155 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, number of shares authorized | 30,000,000 | 30,000,000 |
Common stock, number of shares issued | 11,710,549 | 11,648,978 |
Common stock, number of shares outstanding | 11,710,549 | 11,648,978 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Net sales | $ 30,998 | $ 64,403 | $ 22,700 |
Cost of sales | 23,321 | 35,111 | 14,922 |
Gross profit | 7,677 | 29,292 | 7,778 |
Operating expenses: | |||
Product development | 3,537 | 2,810 | 1,030 |
Selling, general, and administrative | 20,113 | 16,830 | 7,839 |
Loss on impairment | 857 | 0 | 0 |
Total operating expenses | 24,507 | 19,640 | 8,869 |
(Loss) income from operations | (16,830) | 9,652 | (1,091) |
Other expense (income): | |||
Interest expense | 0 | 85 | 2,689 |
Other expenses (income) | 18 | (53) | 466 |
(Loss) income from continuing operations before income taxes | (16,848) | 9,620 | (4,246) |
Provision for income taxes | 27 | 149 | 0 |
Net (loss) income from continuing operations | (16,875) | 9,471 | (4,246) |
Discontinued operations: | |||
Loss from discontinued operations | 0 | (167) | (1,571) |
Loss on sale of discontinued operations | (12) | (534) | (30) |
(Loss) income from discontinued operations before income taxes | (12) | (701) | (1,601) |
Provision for (benefit from) income taxes | 0 | (10) | (2) |
(Loss) from discontinued operations | (12) | (691) | (1,599) |
Net (loss) income | $ (16,887) | $ 8,780 | $ (5,845) |
Net (loss) income per share - basic: | |||
Net income (loss) from continuing operations (in dollars per share) | $ (1.45) | $ 0.91 | $ (0.55) |
Net (loss) income from discontinued operations (in dollars per share) | 0 | (0.07) | (0.20) |
Net income (loss) (in dollars per share) | (1.45) | 0.84 | (0.75) |
Net (loss) income per share - diluted: | |||
Net income (loss) from continuing operations (in dollars per share) | (1.45) | 0.88 | (0.55) |
Net (loss) income from discontinued operations (in dollars per share) | 0 | (0.06) | (0.20) |
Net income (loss) (in dollars per share) | $ (1.45) | $ 0.82 | $ (0.75) |
Weighted average common shares outstanding: | |||
Basic (in shares) | 11,673 | 10,413 | 7,816 |
Diluted (in shares) | 11,673 | 10,752 | 7,816 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (16,887) | $ 8,780 | $ (5,845) |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (1) | (469) | 7 |
Reclassification of foreign currency translation adjustments | 0 | 469 | 0 |
Comprehensive (loss) income | $ (16,888) | $ 8,780 | $ (5,838) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Beginning balance at Dec. 31, 2013 | $ 2,924 | $ 1 | $ 0 | $ 85,446 | $ 462 | $ (82,985) |
Beginning balance (in shares) at Dec. 31, 2013 | 5,142 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, including under registered follow-on offering, net | 5,090 | 5,090 | ||||
Issuance of common stock, including under registered follow-on offering, net (in shares) | 1,343 | |||||
Issuance of common stock under employee stock option and stock purchase plans | 58 | 58 | ||||
Issuance of common stock under employee stock option and stock purchase plans (in shares) | 18 | |||||
Issuance of common stock for conversion of convertible debt | 6,145 | 6,145 | ||||
Issuance of common stock for conversion of convertible debt (in shares) | 2,672 | |||||
Stock-based compensation | 532 | 532 | ||||
Warrants exercised | 862 | 862 | ||||
Warrants exercised (in shares) | 249 | |||||
Foreign currency translation adjustment | 7 | 7 | ||||
Net (loss) income | (5,845) | (5,845) | ||||
Ending balance at Dec. 31, 2014 | 9,773 | $ 1 | $ 0 | 98,133 | 469 | (88,830) |
Ending balance (in shares) at Dec. 31, 2014 | 9,424 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, including under registered follow-on offering, net | 23,574 | 23,574 | ||||
Issuance of common stock, including under registered follow-on offering, net (in shares) | 1,500 | |||||
Issuance of common stock under employee stock option and stock purchase plans | 346 | 346 | ||||
Issuance of common stock under employee stock option and stock purchase plans (in shares) | 77 | |||||
Stock-based compensation | 813 | 813 | ||||
Stock-based compensation (shares) | 10 | |||||
Warrants exercised | 2,503 | 2,503 | ||||
Warrants exercised (in shares) | 638 | |||||
Foreign currency translation adjustment | (469) | (469) | ||||
Net (loss) income | 8,780 | 8,780 | ||||
Ending balance at Dec. 31, 2015 | 45,320 | $ 1 | $ 0 | 125,369 | 0 | (80,050) |
Ending balance (in shares) at Dec. 31, 2015 | 11,649 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee stock option and stock purchase plans | 146 | 146 | ||||
Issuance of common stock under employee stock option and stock purchase plans (in shares) | 62 | |||||
Repurchases of common stock | 309 | $ 309 | ||||
Repurchases of common stock (in shares) | 51 | |||||
Retirement of common stock | (309) | $ (309) | ||||
Retirement of common stock (in shares) | (51) | |||||
Stock-based compensation | 1,360 | 1,360 | ||||
Foreign currency translation adjustment | (1) | (1) | ||||
Net (loss) income | (16,887) | (16,887) | ||||
Ending balance at Dec. 31, 2016 | $ 29,938 | $ 1 | $ 0 | $ 126,875 | $ (1) | $ (96,937) |
Ending balance (in shares) at Dec. 31, 2016 | 11,711 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (16,887) | $ 8,780 | $ (5,845) |
Loss from discontinued operations | (12) | (691) | (1,599) |
(Loss) income from continuing operations | (16,875) | 9,471 | (4,246) |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | |||
Loss on impairment | 857 | 0 | 0 |
Depreciation | 805 | 266 | 184 |
Stock-based compensation | 1,360 | 813 | 532 |
Provision for doubtful accounts receivable | 156 | 39 | 2 |
Provision for slow-moving and obsolete inventories | 3,990 | 1,464 | 194 |
Provision for warranties | 170 | 255 | 49 |
Amortization of discounts on long-term borrowings and acquisition related liabilities | 0 | 0 | 2,815 |
Amortization of loan origination fees | 0 | 40 | 140 |
Loss (gain) on dispositions of property and equipment | 38 | 3 | 2 |
Change in operating assets and liabilities: | |||
Accounts receivable | 4,313 | (7,493) | (1,466) |
Inventories | (5,727) | (2,327) | (4,956) |
Prepaid and other assets | (123) | 146 | 1,641 |
Accounts payable | (4,035) | 135 | 5,328 |
Accrued and other liabilities | (1,389) | 1,674 | (444) |
Deferred revenue | (93) | (40) | 62 |
Total adjustments | 322 | (5,025) | 4,083 |
Net cash (used in) provided by operating activities | (16,553) | 4,446 | (163) |
Cash flows from investing activities: | |||
Acquisitions of property and equipment | (1,624) | (2,242) | (194) |
Proceeds from the sale of property and equipment | 27 | 0 | 130 |
Net cash used in investing activities | (1,597) | (2,242) | (64) |
Cash flows from financing activities: | |||
Proceeds from warrants exercised | 0 | 2,503 | 0 |
Proceeds from issuances of common stock, net | 0 | 23,574 | 5,952 |
Proceeds from exercise of stock options and purchases through employee stock purchase plan | 455 | 346 | 58 |
Repurchases of common stock | (309) | 0 | 0 |
Payments on other borrowings | 0 | (13) | (223) |
Net (repayments) proceeds from credit line borrowings | 0 | (453) | 453 |
Net cash provided by financing activities | 146 | 25,957 | 6,240 |
Effect of exchange rate changes on cash and cash equivalents | 5 | 0 | 0 |
Net cash (used in) provided by continuing operations | (17,999) | 28,161 | 6,013 |
Cash flows of discontinued operations: | |||
Operating cash flows, net | (12) | (691) | (604) |
Investing cash flows, net | 0 | 181 | 0 |
Financing cash flows, net | 0 | (446) | 136 |
Net cash used in discontinued operations | (12) | (956) | (468) |
Net (decrease) increase in cash and cash equivalents | (18,011) | 27,205 | 5,545 |
Cash and cash equivalents, beginning of year | 34,640 | 7,435 | 1,890 |
Cash and cash equivalents, end of year | 16,629 | 34,640 | 7,435 |
Classification of cash and cash equivalents: | |||
Cash and cash equivalents, end of year | 34,640 | 7,435 | 1,890 |
Supplemental information: | |||
Cash paid in year for interest | 5 | 84 | 305 |
Cash paid in year for income taxes | 51 | 200 | 0 |
Non-cash investing and financing activities: | |||
Non-cash charge to write-off of remaining unamortized discount on convertible debt | 0 | 0 | 2,287 |
Conversion of subordinated convertible debt | $ 0 | $ 0 | $ 6,145 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | NATURE OF OPERATIONS Energy Focus, Inc. and its subsidiaries engage in the design, development, manufacture, and marketing of energy-efficient lighting. We operate in a single industry segment, developing and selling our energy-efficient light-emitting diode (“LED”) lighting products into the military maritime, and commercial markets. We have aligned our resources and focused our efforts on the sale of LED lighting products, in particular our military and commercial tubular LED (“TLED”) lines of products, into targeted vertical markets. During 2014, we shifted our focus away from the turnkey solutions business, which had historically incurred lower gross margins. We completed all outstanding solutions-based projects in the first quarter of 2015 and fully exited the business as of September 2015. In August 2015, we sold our United Kingdom subsidiary, Crescent Lighting Limited (“CLL”). In 2013, we sold and discontinued our pool products business. As a result of exiting the turnkey solutions, CLL, and the pool products businesses, we have eliminated all net sales and expenses associated with both businesses from the Consolidated Statements of Operations and reported the net losses as discontinued operations. Please refer to Note 3, “Discontinued Operations,” for more information on our disposition of these businesses. Additionally, product development is a key focus for us. Our product development team is dedicated to developing and designing leading-edge technology LED lighting products, and we have recently opened a product development center in Taiwan. During 2013, we curtailed our efforts on bidding on research contracts and grants to focus on product development. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies of our Company, which are summarized below, are consistent with U.S. GAAP and reflect practices appropriate to the business in which we operate. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods presented. Estimates include, but are not limited to, the establishment of reserves for accounts receivable, sales returns, inventory obsolescence and warranty claims; the useful lives for property, equipment, and intangible assets; and stock-based compensation. In addition, estimates and assumptions associated with the determination of the fair value of financial instruments and evaluation of long-lived assets for impairment requires considerable judgment. Actual results could differ from those estimates and such differences could be material. Reclassifications Certain prior year amounts have been reclassified within the Consolidated Financial Statements and related notes thereto, to be consistent with current year presentation. Basis of presentation The Consolidated Financial Statements include the accounts of the Company and, until its disposition, its subsidiary, EFLS in Solon, Ohio, and, until its disposition, its former subsidiary, CLL, and its subsidiary, Energy Focus Europe, Ltd., each located in the United Kingdom. All significant inter-company balances and transactions have been eliminated. On August 4, 2015, we entered into a Share Sale Agreement with John Harris, the managing director of CLL, pursuant to which Mr. Harris acquired CLL from us for nominal consideration. Additionally, during 2014, we shifted our focus away from providing turnkey solutions, we stopped accepting new projects, and during the third quarter of 2015, we completed our exit from this business. In 2013, we sold and discontinued our pool products business. Therefore, the results of operations and financial position of EFLS, CLL, and the pool products business are included in the Consolidated Financial Statements as Discontinued operations and previously reported financial information for the current and prior years have been adjusted. Unless indicated otherwise, the information in the Notes to Consolidated Financial Statements relates to our continuing operations. Revenue recognition Revenue is recognized when it is realized or realizable, has been earned, and when all of the following have occurred: • persuasive evidence or an arrangement exists (e.g., a sales order, a purchase order, or a sales agreement), • shipment has occurred, with the standard shipping term being F.O.B. ship point, or services provided on a proportional performance basis or installation have been completed, • price to the buyer is fixed or determinable, and • collectability is reasonably assured. Revenues from sales of our products are generally recognized upon shipping based upon the following: • all sales made by us to our customer base are non-contingent, meaning that they are not tied to that customer’s resale of products, • standard terms of sale contain shipping terms of F.O.B. ship point, meaning that title and risk of loss is transferred when shipping occurs, and • there are no automatic return provisions that allow the customer to return the product in the event that the product does not sell within a defined timeframe. Revenues from research and development contracts are recognized primarily on the percentage-of-completion method of accounting. Deferred revenue is recorded for the excess of contract billings over the amount of contract costs and profits. Costs in excess of billings, included in prepaid and other assets, are recorded for contract costs in excess of contract billings. We warrant our products against defects or workmanship issues. We set up allowances for estimated returns, discounts and warranties upon recognition of revenue, and these allowances are adjusted periodically to reflect actual and anticipated returns, discounts and warranty expenses. These allowances are based on past history, historical trends, and contractual terms. The distributors’ obligations to us are not contingent upon the resale of our products and as such do not prohibit revenue recognition. Cash and cash equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At December 31, 2016 and 2015 , we had $16.6 million and $34.6 million , respectively, in cash on deposit with financial institutions located in the United States. At December 31, 2016 , $342 thousand of this amount was designated as restricted cash and relates to a standby letter of credit agreement for the lease of our New York, New York office. Please refer to Note 8, “Commitments and Contingencies,” for additional information. At December 31, 2015, $113 thousand of this amount was designated as restricted cash and relates to funds to be used exclusively for a research and development project with the National Shipbuilding Research Program. Our cash balance at December 31, 2015 also included $300 thousand held in escrow related to the sale of our pool products business, but this amount was fully offset by the expected costs to settle an arbitration claim the buyer filed in February 2015, as we had reached an agreement in principle with the buyer. Please refer to Note 3, “Discontinued Operations,” for additional information. Inventories We state inventories at the lower of standard cost (which approximates actual cost determined using the first-in-first-out method) or market value. We establish provisions for excess and obsolete inventories after evaluation of historical sales, current economic trends, forecasted sales, product lifecycles, and current inventory levels. Due to the introduction of new products and technological advancements, charges to cost of sales for excess and obsolete inventories from continuing operations amounted to $4.0 million , $1.5 million , and $194 thousand in 2016 , 2015 , and 2014 , respectively. Please refer to Note 4, “Inventories,” for additional information. Accounts receivable Our customers are concentrated in the United States. In the normal course of business, we extend unsecured credit to our customers related to the sale of our services and products. Typical credit terms require payment within 30 to 60 days from the date of delivery or service. We evaluate and monitor the creditworthiness of each customer on a case-by-case basis. We also provide allowances for sales returns and doubtful accounts based on our continuing evaluation of our customers’ ongoing requirements and credit risk. We write-off accounts receivable when we deem that they have become uncollectible and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. We do not generally require collateral from our customers. Income taxes As part of the process of preparing the Consolidated Financial Statements, we are required to estimate our income tax liability in each of the jurisdictions in which we do business. This process involves estimating our actual current tax expense together with assessing temporary differences resulting from differing treatment of items, such as deferred revenues, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in our Consolidated Balance Sheet. We then assess the likelihood that these deferred tax assets will be recovered from future taxable income and, to the extent that we believe that it is more likely than not that the deferred tax assets will not be recovered, or is unknown, we establish a valuation allowance. Significant management judgment is required in determining our provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against our deferred tax assets. At December 31, 2016 and 2015 , we had a full valuation allowance recorded against our deferred tax assets in the United States due to uncertainties related to our ability to utilize our deferred tax assets, primarily consisting of certain net operating losses carried forward. The valuation allowance is based upon our estimates of taxable income by jurisdiction and the period over which our deferred tax assets will be recoverable. At December 31, 2016 , we had net operating loss carry-forwards of approximately $79.8 million for federal, state, and local income tax purposes. However, due to changes in our capital structure, approximately $25.4 million of this amount is available after the application of IRC Section 382 limitations. As a result of this limitation, in 2017, we only expect to have approximately $18.5 million of the net operating loss carry-forward available for use. If not utilized, these carry-forwards will begin to expire in 2021 for federal purposes, and have begun to expire for state and local purposes. Please refer to Note 10, “Income Taxes,” for additional information. Fair value measurements Fair value is defined as the price that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value of financial assets and liabilities are measured on a recurring or non-recurring basis. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. We utilize valuation techniques that maximize the use of available market information and generally accepted valuation methodologies. We assess the inputs used to measure fair value using a three-tier hierarchy. The hierarchy indicates the extent to which pricing inputs used in measuring fair value are observable in the market. Level 1 inputs include unadjusted quoted prices for identical assets or liabilities and are the most observable. Level 2 inputs include unadjusted quoted prices for similar assets and liabilities that are either directly or indirectly observable, or other observable inputs such as interest rates, foreign currency exchange rates, commodity rates, and yield curves. Level 3 inputs are not observable in the market and include our own judgments about the assumptions market participants would use in pricing the asset or liability. The carrying amounts of certain financial instruments including cash and equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short maturities. Long-lived assets Property and equipment are stated at cost and include expenditures for additions and major improvements. Expenditures for repairs and maintenance are charged to operations as incurred. We use the straight-line method of depreciation over the estimated useful lives of the related assets (generally 2 to 15 years) for financial reporting purposes. Accelerated methods of depreciation are used for federal income tax purposes. When assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the Consolidated Statement of Operations. Refer to Note 5, “Property and Equipment,” for additional information. Long-lived assets are reviewed for impairment whenever events or circumstances indicate the carrying amount may not be recoverable. Events or circumstances that would result in an impairment review primarily include operations reporting losses, a significant change in the use of an asset, or the planned disposal or sale of the asset. The asset would be considered impaired when the future net undiscounted cash flows generated by the asset are less than its carrying value. An impairment loss would be recognized based on the amount by which the carrying value of the asset exceeds its fair value, as determined by quoted market prices (if available) or the present value of expected future cash flows. At December 31, 2016, we recorded an impairment loss of $857 thousand related to our surface mount technology equipment. Refer to Note 5, “Property and Equipment,” for additional information. Certain risks and concentrations We sell our products through a combination of direct sales employees, independent sales representatives, and distributors in different geographic markets throughout the world. We perform ongoing credit evaluations of our customers and generally do not require collateral. Although we maintain allowances for potential credit losses that we believe to be adequate, a payment default on a significant sale could materially and adversely affect our operating results and financial condition. We have certain customers whose net sales individually represented 10 percent or more of our total net sales, or whose net trade accounts receivable balance individually represented 10 percent or more of our total net trade accounts receivable, as follows: For 2016 , Atlantic Diving Supply, Inc. (“ADS”), a distributor for the U.S. Navy, accounted for 36 percent of net sales, and total sales of products for the U.S. Navy were approximately 43 percent of net sales. The remainder of our sales of products for the U.S. Navy in the year ended December 31, 2016 were made pursuant to an indefinite duration, indefinite quantity (“IDIQ”) supply contract we were awarded in 2011. This IDIQ contract expired on August 1, 2016. Our exclusive distributor agreement with ADS continues through March 31, 2017, but the last shipment under this agreement occurred in December 2016. In addition, one of the largest global healthcare systems located in Northeast Ohio accounted for 11 percent of net sales. As previously discussed, due to changes with respect to competition and existing supply, we are not presently expecting sales of any significance of the military Intellitube ® product for the U.S. Navy in 2017 or thereafter. For 2015 , LED Lighting Solutions Global, LLC (an affiliate of Energy Management Products, LLC) (“LLS”) and ADS accounted for approximately 59 percent and 16 percent of net sales, respectively, and together with the Naval Surface Warfare Center and DFAS Columbus comprised sales of products for the U.S. Navy totaling approximately 80 percent of net sales. For 2014 , LLS and DFAS Columbus accounted for approximately 64 percent and 10 percent of net sales, respectively. At December 31, 2016 , ADS and one of the largest global healthcare systems located in Northeast Ohio accounted for 63 percent and 10 percent of net trade accounts receivable, respectively. At December 31, 2015 , ADS accounted for approximately 62 percent of net trade accounts receivable. We require substantial amounts of purchased materials from selected vendors. With specific materials, all of our purchases are from a single vendor. Substantially all of the materials we require are in adequate supply. However, the availability and costs of materials may be subject to change due to, among other things, new laws or regulations, suppliers’ allocation to other purchasers, interruptions in production by suppliers, and changes in exchange rates and worldwide price and demand levels. Our inability to obtain adequate supplies of materials for our products at favorable prices could have a material adverse effect on our business, financial position, or results of operations by decreasing our profit margins and by hindering our ability to deliver products to our customers on a timely basis. Product development Product development expenses include salaries, contractor and consulting fees, supplies and materials, as well as costs related to other overhead items such as depreciation and facilities costs. Research and development costs are expensed as they are incurred. Net (loss) income per share Basic (loss) income per share is computed by dividing the net (loss) income available to common stockholders by the weighted average number of common shares outstanding for the period, excluding the effects of any potentially dilutive securities. Diluted (loss) income per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of incremental shares upon exercise of stock options and warrants, unless the effect would be anti-dilutive. The following table presents a reconciliation of basic and diluted (loss) income per share computations (in thousands, except per share amounts): For the year ended December 31, 2016 2015 2014 Numerator: (Loss) income from continuing operations $ (16,875 ) $ 9,471 $ (4,246 ) Loss from discontinued operations (12 ) (691 ) (1,599 ) Net (loss) income $ (16,887 ) $ 8,780 $ (5,845 ) Denominator: Basic weighted average common shares outstanding 11,673 10,413 7,816 Potential common shares from options and warrants — 339 — Diluted weighted average shares 11,673 10,752 7,816 As a result of the net loss we incurred for the years ended December 31, 2016 and 2014 , options, warrants and convertible securities representing approximately 139,595 and 818,832 shares of common stock were excluded from the loss per share calculation, respectively, because their inclusion would have been anti-dilutive. Stock-based compensation We recognize compensation expense based on the estimated grant date fair value under the authoritative guidance. Management applies the Black-Scholes option pricing model to value stock options issued to employees and directors, and applies judgment in estimating key assumptions that are important elements of the model in expense recognition. These elements include the expected life of the option, the expected stock-price volatility, and expected forfeiture rates. Compensation expense is generally amortized on a straight-line basis over the requisite service period, which is generally the vesting period. See Note 9, “Stockholders’ Equity,” for additional information. Common stock, stock options, and warrants issued to non-employees that are not part of an equity offering are accounted for under the applicable guidance under ASC 505-50, “Equity-Based Payments to Non-Employees,” and are generally re-measured at each reporting date until the awards vest. Foreign currency translation Until its disposition, our international subsidiary used its local currency as its functional currency. Assets and liabilities were translated at exchange rates in effect at the balance sheet date and income and expense accounts were translated at average exchange rates during the year. Resulting translation adjustments were recorded directly to “Accumulated other comprehensive income” within the Consolidated Statements of Stockholders’ Equity. With the sale of CLL in August 2015, the translation adjustments recorded within the Consolidated Statements of Stockholders’ Equity in 2015 were reclassified and are recorded as a component of the “Loss on disposal of discontinued operations” within the Consolidated Statements of Operations. See Note 3, “Discontinued Operations,” for additional information. Advertising expenses Advertising expenses are charged to operations in the period incurred. They consist of costs for the placement of our advertisements in various media and the costs of demos provided to potential distributors of our products. Advertising expenses from continuing operations were $1.4 million , $695 thousand , and $214 thousand for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Shipping and handling costs We include shipping and handling revenues in net sales, and shipping and handling costs in cost of sales. Product warranties We warrant finished goods against defects in material and workmanship under normal use and service for periods generally between one and ten years . Settlement costs consist of actual amounts expensed for warranty coverage, which are largely a result of the cost of replacement products. A liability for the estimated future costs under product warranties is maintained for products outstanding under warranty and is included in “Accrued liabilities” in our Consolidated Balance Sheets. The warranty activity for the respective years is as follows (in thousands): At December 31, 2016 2015 Balance at the beginning of the year $ 314 $ 81 Accruals for warranties issued 170 255 Adjustments to existing warranties (95 ) — Settlements made during the year (in kind) (58 ) (22 ) Accrued warranty expense $ 331 $ 314 Recent accounting standards and pronouncements In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, Restricted Cash , which requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flow. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period, but any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. The new standard must be adopted retrospectively. We are in the process of evaluating the impact of the standard. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments , which is intended to reduce diversity in practice by making eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017, and will require adoption on a retrospective basis. We are in the process of evaluating the impact of the standard. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which significantly changes the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain financial instruments, including trade receivables, and requires an entity to recognize an allowance based on its estimate of expected credit losses rather than incurred losses. This standard will be effective for interim and annual periods beginning after December 15, 2019, and will generally require adoption on a modified retrospective basis. We are in the process of evaluating the impact of the standard. In March 2016, the FASB issued ASU No. 2016-09, Compensation–Stock Compensation: Improvements to Employee Share-Based Payment Accounting , which changes the accounting for employee share-based payments. This standard addresses several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. This standard, which will be required to be adopted on a modified retrospective basis, will be effective for interim and annual periods beginning after December 15, 2016, and early adoption is permitted. We have evaluated the accounting guidance and determined that there is no material impact to our consolidated financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases , which supersedes the current lease accounting requirements. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. In addition, this standard requires lessees to disclose certain key information about lease transactions. Upon implementation, an entity’s lease payment obligations will be recognized at their estimated present value along with a corresponding right-of-use asset. Lease expense recognition will be generally consistent with current practice. This standard will be effective for interim and annual periods beginning after December 15, 2018, and will require adoption on a modified retrospective basis. We are in the process of evaluating the impact of the standard. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which amends certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in the consolidation of the investee). This standard will be effective for interim and annual periods beginning after December 15, 2017, and will require adoption on a prospective basis with a cumulative-effect adjustment to the beginning balance sheet. We are in the process of evaluating the impact of the standard. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes , which requires entities to present deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) as noncurrent in a classified balance sheet. This presentation simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current or noncurrent in a classified balance sheet. The netting of DTAs and DTLs by tax jurisdiction is still required under the new guidance. The standard is effective for interim and annual periods beginning after December 15, 2016, and early adoption is permitted. We have evaluated the accounting guidance and determined that there is no impact to our consolidated financial position or results of operations as a result of the full valuation allowance we have recorded against our DTAs. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) , which requires entities to measure most inventory at the lower of cost and net realizable value. This measure simplifies the current guidance, which requires entities to measure inventory at the lower of cost or market, where market is defined as one of three different measures, including net realizable value. The ASU does not apply to inventories measured by using either the last-in, first-out method or the retail inventory method. The ASU is effective prospectively for interim and annual periods beginning after December 15, 2016, and early adoption is permitted. We have evaluated the accounting guidance and determined that there is no material impact to our consolidated financial position or results of operations. In May 2014, the FASB issued ASU No. 2014-9, Revenue Recognition - Revenue from Contracts with Customers , as amended by ASU 2015-14, 2016-08, 2016-10, 2016-12, and 2016-20, which is a comprehensive revenue recognition standard which supersedes nearly all of the existing revenue recognition guidance under U.S. GAAP. This standard requires an entity to recognize revenue when it transfers promised goods or services to customers in amounts that reflect the consideration the entity expects to receive in exchange for those goods or services. Entities will need to use more judgments and estimates than under the current guidance, including estimating the amount of variable revenue to recognize for each performance obligation. Additional disclosures regarding the nature, amount, and timing of revenues and cash flows from contracts will also be required. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We will adopt the standard effective on January 1, 2018. We are currently evaluating the transition method we will use and the impact the guidance in this ASU will have, if any, on our consolidated financial position and results of operations. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS EFLS As part of the strategy to align our resources with developing and selling our energy-efficient LED products into the commercial and military maritime markets, we completed the exit of our turnkey solutions business, operated by EFLS during the third quarter of 2015. During 2014, we shifted our focus away from the turnkey solutions business. We stopped accepting new projects and completed all outstanding solutions-based projects in the first quarter of 2015. As of September 30, 2015, the exit of our turnkey solutions business was complete. Accordingly, the operating results related to EFLS have been included as discontinued operations in the Consolidated Statements of Operations for all periods presented. There were no assets disposed as a result of the disposition, and we did not recognize a gain or loss on disposal or record an income tax expense or benefit. We do not anticipate any significant continuing involvement related to this discontinued operation. CLL In August 2015, we sold our wholly-owned United Kingdom subsidiary, CLL. The sale was for nominal consideration under the terms of the agreement. As a result of the transaction and the elimination of this foreign subsidiary consolidated under the equity method of accounting, we recorded a one-time loss of $44 thousand , which included a $469 thousand accumulated other comprehensive income reclassification adjustment for foreign currency translation adjustments. The loss was recorded in the Consolidated Statements of Operations under the caption “Loss on disposal of discontinued operations.” We do not anticipate any significant continuing involvement related to this discontinued operation. Pool Products Business On November 26, 2013, we announced the sale of our pool products business for a cash purchase price of $5.2 million . Under the terms of the Purchase Agreement, we sold substantially all of the assets associated with the pool products business and the buyer assumed certain related liabilities. In connection with the sale, we and the buyer entered into a transition services agreement that continued until April 30, 2014, under which we provided services to transition the pool products business to the buyer. In addition, the Purchase Agreement contains representations, warranties and covenants of us and the buyer and prohibits us from competing with the buyer in the pool business for a period of five years following the closing. The Purchase Agreement also provided for an escrow of $500 thousand of the purchase price to secure customary indemnification obligations with respect to our representations, warranties, covenants and other obligations under the Purchase Agreement. Under the terms of the Purchase Agreement, the first of five $100 thousand scheduled escrow releases commenced on March 25, 2014, and was to continue on the 25th day of each of the next four subsequent months. As of December 31, 2015 and 2014, $200 thousand of the cash held in escrow had been released to us and $300 thousand remained in escrow subject to the resolution of outstanding buyer claims that were the subject of an arbitration claim filed by the buyer in February 2015. At December 31, 2015, we offset the full escrow amount by the expected costs to settle this claim, as we had reached an agreement in principle with the buyer. On March 18, 2016, a settlement agreement was executed for this claim and the funds in the escrow account, plus the interest earned on the account, were released to the buyer. The legal fees incurred for the arbitration are included in the loss on disposal of discontinued operations for all periods presented. For additional information on the status of the remaining cash in escrow, please refer to Note 13, “Legal Matters.” As a result of exiting EFLS and selling CLL and the pool products businesses, we have eliminated all net sales and expenses associated with this business from the Consolidated Statements of Operations, and have reported the net (loss) income from those activities as discontinued operations in the Consolidated Statements of Operations for all years presented. The following table summarizes the components included in loss from discontinued operations in our Consolidated Statements of Operations for the periods presented (in thousands): December 31, 2016 2015 2014 Net sales $ — $ 1,078 $ 6,262 Cost of sales — 588 4,690 Gross Profit — 490 1,572 Operating expenses of discontinued operations — 657 3,079 Other expenses — — 64 Loss on disposal of discontinued operations (12 ) (534 ) (30 ) Loss from discontinued operations before income taxes (12 ) (701 ) (1,601 ) Benefit from income taxes — (10 ) (2 ) Loss from discontinued operations $ (12 ) $ (691 ) $ (1,599 ) The following table shows the components of the loss from discontinued operations by business for the periods presented (in thousands): December 31, 2016 2015 2014 CLL — (138 ) (1,020 ) EFLS — (29 ) (531 ) Pool products business — — (20 ) Loss from operations of discontinued operations — (167 ) (1,571 ) CLL — (44 ) — Pool products business (12 ) (490 ) (30 ) Loss on disposal of discontinued operations (12 ) (534 ) (30 ) Loss from discontinued operations before income taxes (12 ) (701 ) (1,601 ) Benefit from income taxes — (10 ) (2 ) Loss from discontinued operations $ (12 ) $ (691 ) $ (1,599 ) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories are stated at the lower of standard cost (which approximates actual cost determined using the first-in, first-out cost method) or market and consists of the following (in thousands): At December 31, 2016 2015 Raw materials $ 5,144 $ 4,577 Finished goods 9,561 4,577 Reserve for excess, obsolete, and slow moving inventories (5,236 ) (1,422 ) Inventories, net $ 9,469 $ 7,732 During the first half of 2016 we initiated an aggressive inventory procurement plan in order to meet the expected demand based on the commercial sales growth experienced during the first six months of the year. While we did not achieve this level of demand, we had already committed to inventory purchases into the third quarter due to manufacturing and shipment lead times. As a result, our gross inventory levels increased $5.6 million as of December 31, 2016 compared to December 31, 2015 . After evaluation of historical sales, current economic trends, forecasted sales, and product lifecycles, we charged $4.0 million to cost of sales from continuing operations for excess, obsolete, and slow moving inventories in 2016 compared to $1.5 million and $194 thousand in 2015 and 2014, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the related assets and consist of the following (in thousands): At December 31, 2016 2015 Equipment (useful life 3 - 15 years) $ 2,231 $ 2,864 Tooling (useful life 2 - 5 years) 863 851 Vehicles (useful life 5 years) 39 39 Furniture and fixtures (useful life 5 years) 170 104 Computer software (useful life 3 years) 977 581 Leasehold improvements (the shorter of useful life or lease life) 256 509 Construction in progress 154 310 Property and equipment at cost 4,690 5,258 Less: accumulated depreciation (2,365 ) (2,829 ) Property and equipment, net $ 2,325 $ 2,429 Depreciation expense was $805 thousand , $266 thousand , and $184 thousand for the years ended December 31, 2016 , 2015 and 2014 , respectively. During 2015, the Company invested in certain equipment to be used to increase our capabilities and reduce the cost of components used in our domestic manufacturing processes, as many of our sales opportunities were with respect to products made in the U.S. or meeting “Buy American” standards. These opportunities included our military maritime product line, as well as products for use in government-funded facilities, such as military bases, which must comply with certain domestic preference standards. As a result of the decline in 2016 sales as well as our expectation of limited sales of our military Intellitube ® product going forward as a result of new competition for retrofit products for the U.S. Navy, coupled with the current cost of procuring components from our suppliers for such products, versus manufacturing them at a low volume, at December 31, 2016, we re-evaluated the economics of manufacturing versus purchasing such components from our suppliers and determined we would no longer use the equipment and software purchased to conduct this manufacturing. We evaluated the carrying value of the equipment and software compared to its fair value and determined that the equipment and software were impaired. Accordingly, we recorded an impairment loss of $857 thousand , to adjust the carrying value of the equipment and software to its net realizable value as of December 31, 2016. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES Accrued current liabilities consisted of the following (in thousands): At December 31, 2016 2015 Accrued payroll and related benefits $ 522 $ 1,243 Accrued sales commissions and incentives 325 1,005 Accrued warranty expense 331 314 Accrued severance 328 96 Accrued legal and professional fees 63 151 Accrued other expenses 107 108 Total accrued liabilities $ 1,676 $ 2,917 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Credit facilities On December 22, 2011, we entered into a $4.5 million revolving line of credit (“credit facility”) with Rosenthal & Rosenthal. The total loan amount available to us under the line of credit was equal to 85 percent of our net, eligible receivables, plus available inventory ( 50 percent of the lower of cost or market value of eligible inventory, or $250 thousand , whichever was less). The credit facility was secured by a lien on our domestic assets. The interest rate for borrowing on accounts receivable was 8.5 percent , on inventories 10 percent , and on overdrafts 13 percent . Additionally, there was an annual 1 percent facility fee on the entire $4.5 million amount of the credit facility payable at the beginning of the year. The agreement automatically renewed from year to year after December 31, 2014, unless we provided the requisite notice to Rosenthal. Additionally, Rosenthal had the right to terminate the agreement by providing 60 days written notice to us. We provided the required advance notice to Rosenthal, and as such, the facility was terminated in December 2015. Borrowings On June 1, 2009, we entered into a $70 thousand unsecured promissory note with Quercus Trust that bore interest in the amount of 1 percent per year. The principal and accrued interest on the note were due on June 1, 2109. In December 2015, we entered into an agreement with Quercus Trust to cancel the note and the accrued interest for a single payment of $13 thousand in cash. At the time of the cancellation, we had recorded $5 thousand in accrued interest on this note. For the year ended December 31, 2015, we recognized a gain of $62 thousand within “Other income” within the Consolidated Statements of Operations as a result of this cancellation. Effective on March 31, 2014, the holders of the unsecured convertible notes converted the outstanding principal amount of $6.15 million into 2,671,739 shares of our common stock. As consideration for entering into agreements to convert their notes, the note holders received additional interest paid at the stated rate of the notes of 5 percent through September 30, 2014. At December 31, 2014, all of the additional interest had been paid to the note holders. In relation to the conversion of the outstanding notes, we incurred a one-time charge of $2.7 million , including a non-cash charge of $2.3 million to write-off the remaining unamortized discount associated with the notes, $154 thousand for the additional six months interest and $293 thousand to write-off the remaining loan origination costs incurred in connection with the convertible notes. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES We lease certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases expiring through 2022 under which we are responsible for related maintenance, taxes, and insurance. Future minimum non-cancellable lease commitments are as follows (in thousands): For the year ending December 31, Minimum Lease Commitments 2017 $ 1,225 2018 1,147 2019 1,079 2020 939 2021 and thereafter 1,088 Total contractual obligations $ 5,478 Certain leases included above contain escalation clauses and, as such, rent expense was recorded on a straight-line basis over the term of the lease. Net rent expense from continuing operations was $1.2 million , $783 thousand , and $341 thousand for the years ended December 31, 2016 , 2015 , and 2014 , respectively. On December 22, 2014 , a former employee filed a lawsuit against us in the Superior Court of the State of California, County of San Diego, known as Merl Toyer v. Energy Focus, Inc., et al., alleging wrongful termination and other claims related to his employment with us. We subsequently removed the case to the United States District Court for the Southern District of California. On May 1, 2015 , we entered into a settlement agreement with the plaintiff, which assigned no culpability to any party and provided for a payment by us in exchange for full settlement and release of his claims. As of June 30, 2015 , the total settlement amount of $330 thousand had been paid to the plaintiff. In September 2015 , we received $174 thousand as reimbursement from our insurance company for the settlement claim. For the year ended December 31, 2015 , we had income of $174 thousand from the insurance reimbursement and expense of $156 thousand , net of the insurance settlement, respectively, included in the Consolidated Statements of Operations under the caption, “Selling, general, and administrative.” |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Common stock follow-on offering On September 11, 2015 , we announced the pricing of a registered underwritten follow-on offering of shares of our common stock by us and certain of our stockholders (the “Selling Stockholders”). We sold 1,500,000 shares of our common stock at a purchase price to the public of $17.00 per share and the Selling Stockholders sold an additional 1,500,000 shares of our common stock on the same terms and conditions. The offering closed on September 16, 2015 and we received $23.6 million in net proceeds from the transaction, after giving effect to underwriting discounts and commissions and estimated expenses. We expect to use the net proceeds from the offering to finance our growth efforts, for working capital, and other general corporate purposes. Public offering On August 6, 2014, we announced the pricing of a public offering to sell 1,175,000 shares of our common stock at a price of $4.50 per share to the public. The underwriters for the offering were given an option to purchase up to an additional 176,250 shares at $4.50 per share to cover over allotments. On August 8, 2014, they exercised their option to purchase the 176,250 additional shares. The offering closed on August 11, 2014. The net proceeds we received from the offering, after deducting the underwriting discount and offering expenses paid by us, were $5.15 million , including the underwriter’s exercise of the overallotment. As part of the underwriting agreement, we issued a warrant for 47,000 shares to the underwriter representing four percent of the number of shares of common stock sold in the offering at an issue price of $5.40 per share representing 120 percent of the public offering price of the shares of common stock. In conjunction with the registered offering, our common stock began trading on The NASDAQ Capital Market (“NASDAQ”) under the symbol EFOI on August 7, 2014. The warrant was exercised on September 10, 2015. Warrants We have issued warrants in conjunction with various equity issuances, debt financing arrangements, and sales incentives. Additionally, there was a warrant issued to a former employee in 2013 as part of the sales of our pool products business, which was exercised in May 2015. A summary of warrant activity was as follows: Warrants Outstanding Weighted Average Exercise Price During Period Balance, December 31, 2013 1,107,549 $ 4.41 Warrants issued 147,000 4.65 Warrants expired (285,000 ) 3.87 Balance, December 31, 2014 969,549 4.61 Warrants exercised (638,189 ) 4.58 Warrants cancelled/forfeited (112,110 ) 5.54 Warrants expired (205,000 ) 4.20 Balance, December 31, 2015 14,250 4.30 Warrants cancelled/forfeited (7,500 ) 4.30 Balance, December 31, 2016 6,750 $ 4.30 Exercisable, December 31, 2016 — $ — The number of warrants and weighted average remaining life (in years) by price for outstanding and exercisable warrants at December 31, 2016 was as follows: WARRANTS OUTSTANDING WARRANTS EXERCISABLE Exercise Price Number of Shares Outstanding Weighted Average Remaining Contractual Life Number of Shares Exercisable Weighted Average Exercise Price $ 4.30 6,750 1.07 years — $ — Stock-based compensation On May 6, 2014, our Board of Directors approved the Energy Focus, Inc. 2014 Stock Incentive Plan (the “2014 Plan”). The 2014 Plan was approved by the stockholders at our annual meeting on July 15, 2014, after which no further awards could be issued under the Energy Focus, Inc. 2008 Incentive Stock Plan (the “2008 Plan”). The 2014 Plan allows for awards up to 600,000 shares of common stock and expires on July 15, 2024. On July 22, 2015, the stockholders approved an amendment to the 2014 Plan to increase the shares available for issuance under the 2014 Plan by an additional 600,000 shares. We have two other equity-based compensation plans under which options are currently outstanding; however, no new awards may be granted under these plans. Generally, stock options are granted at fair market value and expire ten years from the grant date. Employee grants generally vest in three or four years, while grants to non-employee directors generally vest in one year. The specific terms of each grant are determined by our Board of Directors. At December 31, 2016 , 546,638 shares remain available to grant under the 2014 Plan. Stock-based compensation expense is attributed to the granting of stock options, restricted stock, and restricted stock unit awards. For all stock-based awards, we recognize compensation expense using a straight-line amortization method. The impact on our results for stock-based compensation was as follows (in thousands): For the year ended December 31, 2016 2015 2014 Cost of sales $ 56 $ 38 $ 14 Product development 84 37 8 Selling, general, and administrative 1,220 738 510 Total stock-based compensation $ 1,360 $ 813 $ 532 At December 31, 2016 and 2015 , we had unearned stock compensation expense of $1.2 million and $992 thousand , respectively. These costs will be charged to expense and amortized on a straight-line basis in subsequent periods. The remaining weighted average period over which the unearned compensation is expected to be amortized was approximately 1.8 and 1.9 years as of December 31, 2016 and 2015 , respectively. Stock options The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model. Estimates utilized in the calculation include the expected life of the option, risk-free interest rate, and expected volatility, and are further comparatively detailed as follows: 2016 2015 2014 Fair value of options issued $ 5.27 $ 5.33 $ 3.62 Exercise price $ 7.46 $ 7.23 $ 4.69 Expected life of option (in years) 5.8 5.8 5.7 Risk-free interest rate 1.5 % 1.7 % 1.8 % Expected volatility 93.7 % 90.7 % 97.9 % Dividend yield 0.00 % 0.00 % 0.00 % We utilize the simplified method as provided by ASC 718-10 to calculate the expected stock option life. Under ASC 718-10, the expected stock option life is based on the midpoint between the vesting date and the end of the contractual term of the stock option award. The use of this simplified method in place of using the actual historical exercise data is allowed when a stock option award meets all of the following criteria: the exercise price of the stock option equals the stock price on the date of grant; the exercisability of the stock option is only conditional upon completing the service requirement through the vesting date; employees who terminate their service prior to the vesting date forfeit their stock options; employees who terminate their service after vesting are granted a limited time period to exercise their stock options; and the stock options are nontransferable and nonhedgeable. We believe that our stock option awards meet all of these criteria. The estimated expected life of the option is calculated based on contractual life of the option, the vesting life of the option, and historical exercise patterns of vested options. The risk-free interest rate is based on U.S. treasury zero-coupon yield curve on the grant date for a maturity similar to the expected life of the option. The volatility estimates are calculated using historical volatility of our stock price calculated over a period of time representative of the expected life of the option. We have not paid dividends in the past, and do not expect to pay dividends over the corresponding expected term as of the grant date. Options outstanding under all plans at December 31, 2016 have a contractual life of ten years, and vesting periods between one and four years. A summary of option activity under all plans was as follows: Number of Options Weighted Average Exercise Price Per Share Outstanding at December 31, 2013 286,188 $ 15.30 Granted 326,250 4.76 Cancelled (145,873 ) 12.38 Exercised (7,294 ) 2.30 Outstanding at December 31, 2014 459,271 8.95 Granted 340,500 8.65 Cancelled (147,152 ) 10.10 Exercised (50,412 ) 4.69 Outstanding at December 31, 2015 602,207 8.58 Granted 167,819 7.31 Cancelled (160,126 ) 12.94 Exercised (79,166 ) 4.48 Outstanding at December 31, 2016 530,734 $ 7.48 Vested and expected to vest at December 31, 2016 513,052 $ 7.50 Exercisable at December 31, 2016 389,748 $ 7.75 The “Expected to Vest” options are the unvested options that remain after applying the pre-vesting forfeiture rate assumption to total unvested options. The total intrinsic value of options exercised during 2016 was $126 thousand . The total intrinsic value of options outstanding and options exercisable at December 31, 2016 was $106 thousand and $106 thousand , respectively, which was calculated using the closing stock price at the end of the year of $4.25 per share less the option price of the in-the-money grants. The options outstanding at December 31, 2016 have been segregated into ranges for additional disclosure as follows: OPTIONS OUTSTANDING OPTIONS EXERCISABLE Range of Exercise Prices Number of Shares Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number of Shares Exercisable Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price $2.30 — $4.00 46,164 6.3 $ 2.30 46,164 6.3 $ 2.30 $4.01 — $4.45 107,986 7.1 4.10 107,192 7.1 4.10 $4.46 — $5.48 136,450 8.1 5.40 93,741 8.0 5.36 $5.49 — $13.58 168,467 8.2 7.73 73,623 6.9 8.57 $13.59 — $63.60 71,667 7.1 19.28 69,028 7.0 19.44 530,734 7.6 $ 7.48 389,748 7.2 $ 7.75 Restricted stock and Restricted Stock Units Prior to 2011, we issued restricted stock to Executive Officers and Directors in lieu of paying a portion of their cash compensation or Directors’ fees. In July 2013, we granted restricted stock units to certain employees under the 2008 Plan with a vesting period of one year from the grant date. Beginning in 2015, we began issuing restricted stock units to employees and certain non-employee Directors under the 2014 Plan with vesting periods ranging from 1 to 3 years from the grant date. The following table shows a summary of restricted stock and restricted stock unit activity: Restricted Stock Outstanding Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value At December 31, 2013 35,869 3,659 7.31 Granted — — — Vested (35,869 ) (1,220 ) 7.20 Forfeited — (2,439 ) 4.10 At December 31, 2014 — — — Granted — 73,750 6.92 Forfeited — (16,250 ) 5.54 At December 31, 2015 — 57,500 $ 7.31 Granted — 290,966 6.56 Vested — (11,213 ) 14.18 Forfeited — (87,138 ) 6.73 At December 31, 2016 — 250,115 $ 6.34 Employee stock purchase plans In September 2013, our stockholders approved the 2013 Employee Stock Purchase Plan (the “2013 Plan”) to replace the 1994 prior purchase plan. A total of 500,000 shares of common stock were provided for issuance under the 2013 Plan. The 2013 Plan permits eligible employees to purchase common stock through payroll deductions at a price equal to the lower of 85 percent of the fair market value of our common stock at the beginning or end of the offering period. Employees may end their participation at any time during the offering period, and participation ends automatically upon termination of employment with us. During 2016 , 2015 and 2014 , employees purchased 22,094 , 18,119 , and 9,932 shares, respectively. At December 31, 2016 , 443,441 shares remained available for purchase under the 2014 Plan. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES We file income tax returns in the U.S. federal jurisdiction, as well as in various state and local jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state, and local, or non-United States income tax examinations by tax authorities for years before 2013 . Our practice is to recognize interest and penalties related to income tax matters in income tax expense when and if they become applicable. At December 31, 2016 and 2015 , respectively, there were no accrued interest and penalties related to uncertain tax positions. The following table shows the components of (loss) income from continuing operations before income taxes (in thousands): For the year ended December 31, 2016 2015 2014 United States $ (16,848 ) $ 9,620 $ (4,246 ) (Loss) income from continuing operations before income taxes $ (16,848 ) $ 9,620 $ (4,246 ) The following table shows the components of the provision for income taxes from continuing operations (in thousands): For the year ended December 31, 2016 2015 2014 Current: U.S. federal $ 1 $ 123 $ — State 26 26 — Provision for income taxes $ 27 $ 149 $ — The principal items accounting for the difference between income taxes computed at the U.S. statutory rate and the provision for income taxes from continuing operations reflected in our Consolidated Statements of Operations are as follows: For the year ended December 31, 2016 2015 2014 U.S. statutory rate 34.0 % 34.0 % 34.0 % State taxes (net of federal tax benefit) 1.7 0.2 1.0 Valuation allowance (27.5 ) (27.9 ) (19.8 ) Interest amortization expense — — (22.5 ) Other (8.4 ) (4.8 ) 7.3 (0.2 )% 1.5 % 0.0 % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets are as follows (in thousands): At December 31, 2016 2015 2014 Allowance for doubtful accounts $ 18 $ 18 $ 11 Accrued expenses and other reserves 3,138 2,244 2,082 Tax credits, deferred R&D, and other 142 122 44 Net operating loss 9,239 5,384 6,871 Valuation allowance (12,537 ) (7,768 ) (9,008 ) Net deferred tax assets $ — $ — $ — In 2016 , our effective tax rate was lower than the statutory rate due to an increase in the valuation allowance as a result of the $10.6 million additional federal net operating loss we recognized for the year. In 2015 , our effective tax rate was lower than the statutory tax rate primarily due to a decrease in the valuation allowance as a result of the utilization of net operating loss carry-forwards. We utilized $6.2 million of our federal net operating loss carry-forward in 2015 . Since we believe it is more likely than not that the benefit from net operating loss carry-forwards will not be realized, we have provided a full valuation allowance against our deferred tax assets at December 31, 2016 and 2015 , respectively. We had no net deferred tax liabilities at December 31, 2016 or 2015 , respectively. In 2016, we recognized U.S. federal and various states income tax expense as a result of the adjustment from the 2015 provision to the actual tax on the 2015 returns that were filed in 2016. In 2015, we recognized federal tax expense as a result of the alternative minimum tax. There was no federal tax expense for 2014, due to an increase to the valuation allowance. Deferred income tax assets are reduced by a valuation allowance when it is more likely than not that some portion of the deferred income tax assets will not be realized. In considering the need for a valuation allowance, we assess all evidence, both positive and negative, available to determine whether all or some portion of the deferred tax assets will not be realized. Such evidence includes, but is not limited to, recent earnings history, projections of future income or loss, reversal patterns of existing taxable and deductible temporary differences, and tax planning strategies. We will continue to evaluate the need for a valuation allowance on a quarterly basis. At December 31, 2016 , we had net operating loss carry-forwards of approximately $79.8 million for U.S. federal, state, and local income tax purposes. However, due to changes in our capital structure, approximately $25.4 million of this amount is available to offset future taxable income after the application of the limitations found under Section 382 of the IRC. As a result of this limitation, in 2016, we only expect to have approximately $18.5 million of the net operating loss carry-forward available for use. If not utilized, these carry-forwards will begin to expire in 2021 for federal purposes and have begun to expire for state and local purposes. Additionally, the changes to our capital structure have subjected, and will continue to subject our net operating loss carry-forward to an annual limitation as discussed further below. This limitation will significantly restrict our ability to utilize the carry-forward to offset taxable income in future periods. The IRC imposes restrictions on the utilization of various carry-forward tax attributes in the event of a change in ownership, as defined by IRC Section 382. During 2015, we completed an IRC Section 382 review and the results of this review indicate ownership changes have occurred which would cause a limitation on the utilization of carry-forward attributes. Our net operating loss carry-forwards and research and development credits are all subject to limitation. Under these tax provisions, the limitation is applied first to any capital losses, next to any net operating losses, and then to any general business credits. The Section 382 limitation is currently estimated to result in the expiration of $54.4 million of net operating loss carry-forwards and $299 thousand of research and development credits. A valuation allowance has been established to reserve for the potential benefits of the remaining net operating loss carry-forwards in the consolidated financial statements to reflect the uncertainty of future taxable income required to utilize available tax loss carry-forwards. |
Product and Geographic Informat
Product and Geographic Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Product and Geographic Information | PRODUCT AND GEOGRAPHIC INFORMATION During 2013, we sold our pool products business. During 2014, we shifted our focus away from the turnkey solutions business to align our resources with developing and selling our LED products and completed our exit of that business in September 2015. With the exit from EFLS and sale of CLL, we have aligned our resources and focused our efforts on the sale of LED lighting products, in particular our military and commercial tubular LED (“TLED”) lines of products, into targeted vertical markets. Our products are sold primarily in the United States through a combination of direct sales employees, independent sales representatives and distributors. We currently operate in a single industry segment, developing and selling our energy-efficient light-emitting diode (“LED”) lighting products into the military maritime and commercial markets. The following table provides a breakdown of product net sales from continuing operations for the years indicated (in thousands): Year ended December 31, 2016 2015 2014 Commercial $ 14,809 $ 14,156 $ 5,712 Military maritime 16,189 50,128 16,913 R&D services — 119 75 Total net sales $ 30,998 $ 64,403 $ 22,700 A geographic summary of net sales from continuing operations is as follows (in thousands): For the year ended December 31, 2016 2015 2014 United States Domestic $ 29,840 $ 64,251 $ 22,667 International 1,158 152 33 Total net sales $ 30,998 $ 64,403 $ 22,700 At December 31, 2016 and 2015 , approximately 99 percent of our long-lived assets, which consist of property and equipment, were located in the United States. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS On December 12, 2012, our Board of Directors appointed James Tu to serve as our non-executive Chairman. On April 30, 2013, Mr. Tu became the Executive Chairman assuming the duties of the Principal Executive Officer. On October 30, 2013 Mr. Tu was appointed Executive Chairman and Chief Executive Officer by the Board of Directors. On May 9, 2016, Mr. Tu also assumed the role of President. On August 11, 2016, our Board of Directors appointed a separate Executive Chairman of the Board, and Mr. Tu continued to serve in the role of Chief Executive Officer and President, until February 19, 2017. Mr. Tu is also the Founder, Chief Executive Officer and Chief Investment Officer of 5 Elements Global Advisors, an investment advisory and management company managing the holdings of 5 Elements Global Fund LP, which was a beneficial owner of more than 5 percent of our common stock prior to the August 2014 registered offering. As of December 31, 2016 , 5 Elements Global Fund LP holds approximately 2.6 percent of our common stock. 5 Elements Global Advisors focuses on investing in clean energy companies with breakthrough, commercialized technologies, and near-term profitability potential. Mr. Tu is also Co-Founder of Communal International Ltd. (“Communal”), a British Virgin Islands company dedicated to assisting clean energy, solutions-based companies, maximizing technology and product potential and gaining them access to global marketing, distribution licensing, manufacturing and financing resources. Communal has a 50 percent ownership interest in 5 Elements Energy Efficiencies (BVI) Ltd., a beneficial owner of approximately 2.5 percent of our common stock. Yeh-Mei Cheng controls 5 Elements Energy Efficiencies (BVI) Ltd. and owns the other 50 percent . She is Co-Founder of Communal International Ltd. with Mr. Tu and the mother of Simon Cheng, a member of our Board of Directors through February 19, 2017 and an employee of the Company. On February 27, 2012, we entered into an Asian Business Development/Collaboration Agreement with Communal. The agreement had a term of 60 months , under which we paid $523 thousand to Communal in 2012. Effective January 1, 2013, the Asian Business Development/Collaboration Agreement with Communal was amended to reflect the extension of the terms of the Agreement for an additional twelve months, and the addition of certain services and countries in the territory covered by the Agreement. In connection with the amended and restated Agreement, we paid an additional $425 thousand in 2013 and recorded expense of $226 thousand . For the years ended December 31, 2015 and 2014, nothing was paid under this Agreement and we recorded expense of $226 thousand per year. On December 23, 2015, we terminated the Agreement with Communal without penalty. |
Legal Matters
Legal Matters | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | LEGAL MATTERS We may be the subject of threatened or pending legal actions and contingencies in the normal course of conducting our business. We provide for costs related to these matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of these matters on our future results of operations and liquidity cannot be predicted because any such effect depends on future results of operations and the amount or timing of the resolution of such matters. While it is not possible to predict the future outcome of such matters, we believe that the ultimate resolution of such individual or aggregated matters will not have a material adverse effect on our consolidated financial position, results of operations, or cash flows. For certain types of claims, we maintain insurance coverage for personal injury and property damage, product liability and other liability coverages in amounts and with deductibles that we believe are prudent, but there can be no assurance that these coverages will be applicable or adequate to cover adverse outcomes of claims or legal proceedings against us. On November 26, 2013, we announced the sale of our pool products business for a cash purchase price of $5.2 million . Under the terms of the Purchase Agreement, we sold substantially all of the assets associated with the pool products business and the buyer assumed certain related liabilities. The Purchase Agreement provided for an escrow of $500 thousand of the purchase price to secure customary indemnification obligations with respect to our representations, warranties, covenants and other obligations under the Purchase Agreement. Under the terms of the Purchase Agreement, the first of five $100 thousand scheduled escrow releases commenced on March 25, 2014, and was to continue on the 25th day of each of the next four subsequent months. As of December 31, 2015 and 2014, $200 thousand of the cash held in escrow had been released to us and $300 thousand remained in escrow subject to the resolution of outstanding buyer claims. The Purchase Agreement provides that all disputes related to the sale must be resolved through binding arbitration. On February 18, 2015, the buyer filed a claim with the American Arbitration Association (“AAA”) asserting claims for damages of $780 thousand under the Purchase Agreement and relating to product development, which was amended on September 1, 2015 to assert damages of $1.6 million . We believed the claims were without merit and asserted a counterclaim in the arbitration for the $300 thousand that remained in escrow. On March 18, 2016, a settlement agreement was executed for this claim and the funds in the escrow account, plus the interest earned on the account, were released to the buyer. |
Restructuring (Notes)
Restructuring (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restructuring | RESTRUCTURING In 2016, we were not able to sustain the level of sales and profitability recognized in 2015. Due to the financial performance in 2016, including a net loss of $16.9 million and total cash used of $18.0 million , we believe that substantial doubt about our ability to continue as a going concern existed at December 31, 2016 . As a result, we evaluated actions to mitigate the substantial doubt about our ability to continue as a going concern. Our evaluation considered both quantitative and qualitative information, including our current financial position and liquid resources, and obligations due or anticipated within the next year. With $16.6 million in cash and no debt obligations as of December 31, 2016, we focused our efforts on reducing our overall operating expenses in an effort to return to profitability. Consequently, in February 2017, we announced a corporate restructuring initiative designed to streamline operating costs and heighten organizational focus on our healthcare markets. The initiative includes an organizational consolidation of management and oversight functions in order to streamline and better align the organization into more focused, efficient and cost effective reporting relationships. The restructuring plan includes headcount reductions and office closures and consolidation. We are in the process of evaluating the impact of these expected actions and estimate that approximately $1.1 million in restructuring charges will be recorded during the first quarter of 2017. Leading this effort is our new CEO, Dr. Ted Tewksbury. On February 19, 2017, the Board appointed Dr. Tewksbury to serve as the Company’s Chairman of the Board, Chief Executive Officer and President. We believe that the combination of our current financial position, liquid resources, executive reorganization, and restructuring actions will return us to profitability by the end of 2017 and effectively mitigate the substantial doubt about our ability to continue as a going concern. |
Supplementary Financial Informa
Supplementary Financial Information to Item 8. | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Financial Information to Item 8. | SUPPLEMENTARY FINANCIAL INFORMATION TO ITEM 8. The following table sets forth our selected unaudited financial information for the four quarters in the periods ended December 31, 2016 and 2015 , respectively. This information has been prepared on the same basis as the audited financial statements and, in the opinion of management, contains all adjustments necessary for a fair presentation thereof. QUARTERLY FINANCIAL DATA (UNAUDITED) ( amounts in thousands, except per share amounts ) 2016 Fourth Third Second First Net sales from continuing operations $ 7,186 $ 8,261 $ 7,126 $ 8,425 Gross profit from continuing operations (1,072 ) 3,082 2,522 3,145 Net loss from continuing operations (7,805 ) (3,177 ) (3,916 ) (1,977 ) Net loss from discontinued operations — — — (12 ) Net loss $ (7,805 ) $ (3,177 ) $ (3,916 ) $ (1,989 ) Net loss per share (basic and diluted): Net loss from continuing operations $ (0.67 ) $ (0.27 ) $ (0.34 ) $ (0.17 ) Net loss from discontinued operations — — — — Net loss $ (0.67 ) $ (0.27 ) $ (0.34 ) $ (0.17 ) 2015 Fourth Third Second First Net sales from continuing operations $ 17,249 $ 18,335 $ 16,232 $ 12,587 Gross profit from continuing operations 7,571 9,130 7,440 5,151 Net income from continuing operations 1,657 4,398 2,192 1,224 Net loss from discontinued operations (373 ) (142 ) (81 ) (95 ) Net income $ 1,284 $ 4,256 $ 2,111 $ 1,129 Net income per share (basic): Net income from continuing operations $ 0.14 $ 0.42 $ 0.22 $ 0.13 Net loss from discontinued operations (0.03 ) (0.01 ) (0.01 ) (0.01 ) Net income $ 0.11 $ 0.41 $ 0.21 $ 0.12 Net income per share (diluted): Net income from continuing operations $ 0.14 $ 0.41 $ 0.22 $ 0.12 Net loss from discontinued operations $ (0.03 ) $ (0.01 ) $ (0.01 ) $ (0.01 ) Net income $ 0.11 $ 0.40 $ 0.21 $ 0.11 |
Schedule II - Schedule of Valua
Schedule II - Schedule of Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Schedule of Valuation and Qualifying Accounts | SCHEDULE II ENERGY FOCUS, INC. SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS (amounts in thousands) Description Beginning Balance Charges to Revenue/ Expense Deductions Ending Balance Year ended December 31, 2016 Allowance for doubtful accounts and returns $ 155 $ 156 $ 75 $ 236 Reserve for excess, obsolete, and slow moving inventories 1,422 3,990 176 5,236 Valuation allowance for deferred tax assets 7,768 4,769 — 12,537 Year ended December 31, 2015 Allowance for doubtful accounts and returns $ 307 $ 39 $ 191 $ 155 Reserve for excess, obsolete, and slow moving inventories 305 1,464 347 1,422 Valuation allowance for deferred tax assets 9,008 (1,240 ) — 7,768 Year ended December 31, 2014 Allowance for doubtful accounts and returns $ 52 $ 582 $ 327 $ 307 Reserve for excess, obsolete, and slow moving inventories 158 194 47 305 Valuation allowance for deferred tax assets 6,051 2,957 — 9,008 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods presented. Estimates include, but are not limited to, the establishment of reserves for accounts receivable, sales returns, inventory obsolescence and warranty claims; the useful lives for property, equipment, and intangible assets; and stock-based compensation. In addition, estimates and assumptions associated with the determination of the fair value of financial instruments and evaluation of long-lived assets for impairment requires considerable judgment. Actual results could differ from those estimates and such differences could be material. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified within the Consolidated Financial Statements and related notes thereto, to be consistent with current year presentation. |
Basis of presentation | Basis of presentation The Consolidated Financial Statements include the accounts of the Company and, until its disposition, its subsidiary, EFLS in Solon, Ohio, and, until its disposition, its former subsidiary, CLL, and its subsidiary, Energy Focus Europe, Ltd., each located in the United Kingdom. All significant inter-company balances and transactions have been eliminated. On August 4, 2015, we entered into a Share Sale Agreement with John Harris, the managing director of CLL, pursuant to which Mr. Harris acquired CLL from us for nominal consideration. Additionally, during 2014, we shifted our focus away from providing turnkey solutions, we stopped accepting new projects, and during the third quarter of 2015, we completed our exit from this business. In 2013, we sold and discontinued our pool products business. Therefore, the results of operations and financial position of EFLS, CLL, and the pool products business are included in the Consolidated Financial Statements as Discontinued operations and previously reported financial information for the current and prior years have been adjusted. Unless indicated otherwise, the information in the Notes to Consolidated Financial Statements relates to our continuing operations. |
Revenue recognition | Revenue recognition Revenue is recognized when it is realized or realizable, has been earned, and when all of the following have occurred: • persuasive evidence or an arrangement exists (e.g., a sales order, a purchase order, or a sales agreement), • shipment has occurred, with the standard shipping term being F.O.B. ship point, or services provided on a proportional performance basis or installation have been completed, • price to the buyer is fixed or determinable, and • collectability is reasonably assured. Revenues from sales of our products are generally recognized upon shipping based upon the following: • all sales made by us to our customer base are non-contingent, meaning that they are not tied to that customer’s resale of products, • standard terms of sale contain shipping terms of F.O.B. ship point, meaning that title and risk of loss is transferred when shipping occurs, and • there are no automatic return provisions that allow the customer to return the product in the event that the product does not sell within a defined timeframe. Revenues from research and development contracts are recognized primarily on the percentage-of-completion method of accounting. Deferred revenue is recorded for the excess of contract billings over the amount of contract costs and profits. Costs in excess of billings, included in prepaid and other assets, are recorded for contract costs in excess of contract billings. We warrant our products against defects or workmanship issues. We set up allowances for estimated returns, discounts and warranties upon recognition of revenue, and these allowances are adjusted periodically to reflect actual and anticipated returns, discounts and warranty expenses. These allowances are based on past history, historical trends, and contractual terms. The distributors’ obligations to us are not contingent upon the resale of our products and as such do not prohibit revenue recognition. |
Cash and cash equivalents | Cash and cash equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At December 31, 2016 and 2015 , we had $16.6 million and $34.6 million , respectively, in cash on deposit with financial institutions located in the United States. At December 31, 2016 , $342 thousand of this amount was designated as restricted cash and relates to a standby letter of credit agreement for the lease of our New York, New York office. Please refer to Note 8, “Commitments and Contingencies,” for additional information. At December 31, 2015, $113 thousand of this amount was designated as restricted cash and relates to funds to be used exclusively for a research and development project with the National Shipbuilding Research Program. Our cash balance at December 31, 2015 also included $300 thousand held in escrow related to the sale of our pool products business, but this amount was fully offset by the expected costs to settle an arbitration claim the buyer filed in February 2015, as we had reached an agreement in principle with the buyer. |
Inventories | Inventories We state inventories at the lower of standard cost (which approximates actual cost determined using the first-in-first-out method) or market value. We establish provisions for excess and obsolete inventories after evaluation of historical sales, current economic trends, forecasted sales, product lifecycles, and current inventory levels. Due to the introduction of new products and technological advancements, charges to cost of sales for excess and obsolete inventories from continuing operations amounted to $4.0 million , $1.5 million , and $194 thousand in 2016 , 2015 , and 2014 , respectively. |
Accounts receivables | Accounts receivable Our customers are concentrated in the United States. In the normal course of business, we extend unsecured credit to our customers related to the sale of our services and products. Typical credit terms require payment within 30 to 60 days from the date of delivery or service. We evaluate and monitor the creditworthiness of each customer on a case-by-case basis. We also provide allowances for sales returns and doubtful accounts based on our continuing evaluation of our customers’ ongoing requirements and credit risk. We write-off accounts receivable when we deem that they have become uncollectible and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. We do not generally require collateral from our customers. |
Income taxes | Income taxes As part of the process of preparing the Consolidated Financial Statements, we are required to estimate our income tax liability in each of the jurisdictions in which we do business. This process involves estimating our actual current tax expense together with assessing temporary differences resulting from differing treatment of items, such as deferred revenues, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in our Consolidated Balance Sheet. We then assess the likelihood that these deferred tax assets will be recovered from future taxable income and, to the extent that we believe that it is more likely than not that the deferred tax assets will not be recovered, or is unknown, we establish a valuation allowance. Significant management judgment is required in determining our provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against our deferred tax assets. At December 31, 2016 and 2015 , we had a full valuation allowance recorded against our deferred tax assets in the United States due to uncertainties related to our ability to utilize our deferred tax assets, primarily consisting of certain net operating losses carried forward. The valuation allowance is based upon our estimates of taxable income by jurisdiction and the period over which our deferred tax assets will be recoverable. At December 31, 2016 , we had net operating loss carry-forwards of approximately $79.8 million for federal, state, and local income tax purposes. However, due to changes in our capital structure, approximately $25.4 million of this amount is available after the application of IRC Section 382 limitations. As a result of this limitation, in 2017, we only expect to have approximately $18.5 million of the net operating loss carry-forward available for use. If not utilized, these carry-forwards will begin to expire in 2021 for federal purposes, and have begun to expire for state and local purposes. |
Fair value measurements | Fair value measurements Fair value is defined as the price that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value of financial assets and liabilities are measured on a recurring or non-recurring basis. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. We utilize valuation techniques that maximize the use of available market information and generally accepted valuation methodologies. We assess the inputs used to measure fair value using a three-tier hierarchy. The hierarchy indicates the extent to which pricing inputs used in measuring fair value are observable in the market. Level 1 inputs include unadjusted quoted prices for identical assets or liabilities and are the most observable. Level 2 inputs include unadjusted quoted prices for similar assets and liabilities that are either directly or indirectly observable, or other observable inputs such as interest rates, foreign currency exchange rates, commodity rates, and yield curves. Level 3 inputs are not observable in the market and include our own judgments about the assumptions market participants would use in pricing the asset or liability. The carrying amounts of certain financial instruments including cash and equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short maturities. |
Long-lived assets | Long-lived assets Property and equipment are stated at cost and include expenditures for additions and major improvements. Expenditures for repairs and maintenance are charged to operations as incurred. We use the straight-line method of depreciation over the estimated useful lives of the related assets (generally 2 to 15 years) for financial reporting purposes. Accelerated methods of depreciation are used for federal income tax purposes. When assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the Consolidated Statement of Operations. Refer to Note 5, “Property and Equipment,” for additional information. Long-lived assets are reviewed for impairment whenever events or circumstances indicate the carrying amount may not be recoverable. Events or circumstances that would result in an impairment review primarily include operations reporting losses, a significant change in the use of an asset, or the planned disposal or sale of the asset. The asset would be considered impaired when the future net undiscounted cash flows generated by the asset are less than its carrying value. An impairment loss would be recognized based on the amount by which the carrying value of the asset exceeds its fair value, as determined by quoted market prices (if available) or the present value of expected future cash flows. At December 31, 2016, we recorded an impairment loss of $857 thousand related to our surface mount technology equipment. |
Certain risks and concentrations | Certain risks and concentrations We sell our products through a combination of direct sales employees, independent sales representatives, and distributors in different geographic markets throughout the world. We perform ongoing credit evaluations of our customers and generally do not require collateral. Although we maintain allowances for potential credit losses that we believe to be adequate, a payment default on a significant sale could materially and adversely affect our operating results and financial condition. We have certain customers whose net sales individually represented 10 percent or more of our total net sales, or whose net trade accounts receivable balance individually represented 10 percent or more of our total net trade accounts receivable, as follows: For 2016 , Atlantic Diving Supply, Inc. (“ADS”), a distributor for the U.S. Navy, accounted for 36 percent of net sales, and total sales of products for the U.S. Navy were approximately 43 percent of net sales. The remainder of our sales of products for the U.S. Navy in the year ended December 31, 2016 were made pursuant to an indefinite duration, indefinite quantity (“IDIQ”) supply contract we were awarded in 2011. This IDIQ contract expired on August 1, 2016. Our exclusive distributor agreement with ADS continues through March 31, 2017, but the last shipment under this agreement occurred in December 2016. In addition, one of the largest global healthcare systems located in Northeast Ohio accounted for 11 percent of net sales. As previously discussed, due to changes with respect to competition and existing supply, we are not presently expecting sales of any significance of the military Intellitube ® product for the U.S. Navy in 2017 or thereafter. For 2015 , LED Lighting Solutions Global, LLC (an affiliate of Energy Management Products, LLC) (“LLS”) and ADS accounted for approximately 59 percent and 16 percent of net sales, respectively, and together with the Naval Surface Warfare Center and DFAS Columbus comprised sales of products for the U.S. Navy totaling approximately 80 percent of net sales. For 2014 , LLS and DFAS Columbus accounted for approximately 64 percent and 10 percent of net sales, respectively. At December 31, 2016 , ADS and one of the largest global healthcare systems located in Northeast Ohio accounted for 63 percent and 10 percent of net trade accounts receivable, respectively. At December 31, 2015 , ADS accounted for approximately 62 percent of net trade accounts receivable. We require substantial amounts of purchased materials from selected vendors. With specific materials, all of our purchases are from a single vendor. Substantially all of the materials we require are in adequate supply. However, the availability and costs of materials may be subject to change due to, among other things, new laws or regulations, suppliers’ allocation to other purchasers, interruptions in production by suppliers, and changes in exchange rates and worldwide price and demand levels. Our inability to obtain adequate supplies of materials for our products at favorable prices could have a material adverse effect on our business, financial position, or results of operations by decreasing our profit margins and by hindering our ability to deliver products to our customers on a timely basis. |
Product development | Product development Product development expenses include salaries, contractor and consulting fees, supplies and materials, as well as costs related to other overhead items such as depreciation and facilities costs. Research and development costs are expensed as they are incurred. |
Net income (loss) per share | Net (loss) income per share Basic (loss) income per share is computed by dividing the net (loss) income available to common stockholders by the weighted average number of common shares outstanding for the period, excluding the effects of any potentially dilutive securities. Diluted (loss) income per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of incremental shares upon exercise of stock options and warrants, unless the effect would be anti-dilutive. |
Stock-based compensation | Stock-based compensation We recognize compensation expense based on the estimated grant date fair value under the authoritative guidance. Management applies the Black-Scholes option pricing model to value stock options issued to employees and directors, and applies judgment in estimating key assumptions that are important elements of the model in expense recognition. These elements include the expected life of the option, the expected stock-price volatility, and expected forfeiture rates. Compensation expense is generally amortized on a straight-line basis over the requisite service period, which is generally the vesting period. See Note 9, “Stockholders’ Equity,” for additional information. Common stock, stock options, and warrants issued to non-employees that are not part of an equity offering are accounted for under the applicable guidance under ASC 505-50, “Equity-Based Payments to Non-Employees,” and are generally re-measured at each reporting date until the awards vest. |
Foreign currency translation | Foreign currency translation Until its disposition, our international subsidiary used its local currency as its functional currency. Assets and liabilities were translated at exchange rates in effect at the balance sheet date and income and expense accounts were translated at average exchange rates during the year. Resulting translation adjustments were recorded directly to “Accumulated other comprehensive income” within the Consolidated Statements of Stockholders’ Equity. With the sale of CLL in August 2015, the translation adjustments recorded within the Consolidated Statements of Stockholders’ Equity in 2015 were reclassified and are recorded as a component of the “Loss on disposal of discontinued operations” within the Consolidated Statements of Operations. |
Advertising expenses | Advertising expenses Advertising expenses are charged to operations in the period incurred. They consist of costs for the placement of our advertisements in various media and the costs of demos provided to potential distributors of our products. |
Shipping and handling costs | Shipping and handling costs We include shipping and handling revenues in net sales, and shipping and handling costs in cost of sales. |
Product warranties | Product warranties We warrant finished goods against defects in material and workmanship under normal use and service for periods generally between one and ten years . Settlement costs consist of actual amounts expensed for warranty coverage, which are largely a result of the cost of replacement products. A liability for the estimated future costs under product warranties is maintained for products outstanding under warranty and is included in “Accrued liabilities” in our Consolidated Balance Sheets. |
Recent accounting standards and pronouncements | Recent accounting standards and pronouncements In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, Restricted Cash , which requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flow. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period, but any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. The new standard must be adopted retrospectively. We are in the process of evaluating the impact of the standard. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments , which is intended to reduce diversity in practice by making eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017, and will require adoption on a retrospective basis. We are in the process of evaluating the impact of the standard. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which significantly changes the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain financial instruments, including trade receivables, and requires an entity to recognize an allowance based on its estimate of expected credit losses rather than incurred losses. This standard will be effective for interim and annual periods beginning after December 15, 2019, and will generally require adoption on a modified retrospective basis. We are in the process of evaluating the impact of the standard. In March 2016, the FASB issued ASU No. 2016-09, Compensation–Stock Compensation: Improvements to Employee Share-Based Payment Accounting , which changes the accounting for employee share-based payments. This standard addresses several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. This standard, which will be required to be adopted on a modified retrospective basis, will be effective for interim and annual periods beginning after December 15, 2016, and early adoption is permitted. We have evaluated the accounting guidance and determined that there is no material impact to our consolidated financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases , which supersedes the current lease accounting requirements. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. In addition, this standard requires lessees to disclose certain key information about lease transactions. Upon implementation, an entity’s lease payment obligations will be recognized at their estimated present value along with a corresponding right-of-use asset. Lease expense recognition will be generally consistent with current practice. This standard will be effective for interim and annual periods beginning after December 15, 2018, and will require adoption on a modified retrospective basis. We are in the process of evaluating the impact of the standard. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which amends certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in the consolidation of the investee). This standard will be effective for interim and annual periods beginning after December 15, 2017, and will require adoption on a prospective basis with a cumulative-effect adjustment to the beginning balance sheet. We are in the process of evaluating the impact of the standard. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes , which requires entities to present deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) as noncurrent in a classified balance sheet. This presentation simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current or noncurrent in a classified balance sheet. The netting of DTAs and DTLs by tax jurisdiction is still required under the new guidance. The standard is effective for interim and annual periods beginning after December 15, 2016, and early adoption is permitted. We have evaluated the accounting guidance and determined that there is no impact to our consolidated financial position or results of operations as a result of the full valuation allowance we have recorded against our DTAs. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) , which requires entities to measure most inventory at the lower of cost and net realizable value. This measure simplifies the current guidance, which requires entities to measure inventory at the lower of cost or market, where market is defined as one of three different measures, including net realizable value. The ASU does not apply to inventories measured by using either the last-in, first-out method or the retail inventory method. The ASU is effective prospectively for interim and annual periods beginning after December 15, 2016, and early adoption is permitted. We have evaluated the accounting guidance and determined that there is no material impact to our consolidated financial position or results of operations. In May 2014, the FASB issued ASU No. 2014-9, Revenue Recognition - Revenue from Contracts with Customers , as amended by ASU 2015-14, 2016-08, 2016-10, 2016-12, and 2016-20, which is a comprehensive revenue recognition standard which supersedes nearly all of the existing revenue recognition guidance under U.S. GAAP. This standard requires an entity to recognize revenue when it transfers promised goods or services to customers in amounts that reflect the consideration the entity expects to receive in exchange for those goods or services. Entities will need to use more judgments and estimates than under the current guidance, including estimating the amount of variable revenue to recognize for each performance obligation. Additional disclosures regarding the nature, amount, and timing of revenues and cash flows from contracts will also be required. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We will adopt the standard effective on January 1, 2018. We are currently evaluating the transition method we will use and the impact the guidance in this ASU will have, if any, on our consolidated financial position and results of operations. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Reconciliation of Basic and Diluted Income (Loss) per Share | The following table presents a reconciliation of basic and diluted (loss) income per share computations (in thousands, except per share amounts): For the year ended December 31, 2016 2015 2014 Numerator: (Loss) income from continuing operations $ (16,875 ) $ 9,471 $ (4,246 ) Loss from discontinued operations (12 ) (691 ) (1,599 ) Net (loss) income $ (16,887 ) $ 8,780 $ (5,845 ) Denominator: Basic weighted average common shares outstanding 11,673 10,413 7,816 Potential common shares from options and warrants — 339 — Diluted weighted average shares 11,673 10,752 7,816 |
Schedule of Warranty Activity | The warranty activity for the respective years is as follows (in thousands): At December 31, 2016 2015 Balance at the beginning of the year $ 314 $ 81 Accruals for warranties issued 170 255 Adjustments to existing warranties (95 ) — Settlements made during the year (in kind) (58 ) (22 ) Accrued warranty expense $ 331 $ 314 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Components of Discontinued Operations | The following table summarizes the components included in loss from discontinued operations in our Consolidated Statements of Operations for the periods presented (in thousands): December 31, 2016 2015 2014 Net sales $ — $ 1,078 $ 6,262 Cost of sales — 588 4,690 Gross Profit — 490 1,572 Operating expenses of discontinued operations — 657 3,079 Other expenses — — 64 Loss on disposal of discontinued operations (12 ) (534 ) (30 ) Loss from discontinued operations before income taxes (12 ) (701 ) (1,601 ) Benefit from income taxes — (10 ) (2 ) Loss from discontinued operations $ (12 ) $ (691 ) $ (1,599 ) The following table shows the components of the loss from discontinued operations by business for the periods presented (in thousands): December 31, 2016 2015 2014 CLL — (138 ) (1,020 ) EFLS — (29 ) (531 ) Pool products business — — (20 ) Loss from operations of discontinued operations — (167 ) (1,571 ) CLL — (44 ) — Pool products business (12 ) (490 ) (30 ) Loss on disposal of discontinued operations (12 ) (534 ) (30 ) Loss from discontinued operations before income taxes (12 ) (701 ) (1,601 ) Benefit from income taxes — (10 ) (2 ) Loss from discontinued operations $ (12 ) $ (691 ) $ (1,599 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories are stated at the lower of standard cost (which approximates actual cost determined using the first-in, first-out cost method) or market and consists of the following (in thousands): At December 31, 2016 2015 Raw materials $ 5,144 $ 4,577 Finished goods 9,561 4,577 Reserve for excess, obsolete, and slow moving inventories (5,236 ) (1,422 ) Inventories, net $ 9,469 $ 7,732 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the related assets and consist of the following (in thousands): At December 31, 2016 2015 Equipment (useful life 3 - 15 years) $ 2,231 $ 2,864 Tooling (useful life 2 - 5 years) 863 851 Vehicles (useful life 5 years) 39 39 Furniture and fixtures (useful life 5 years) 170 104 Computer software (useful life 3 years) 977 581 Leasehold improvements (the shorter of useful life or lease life) 256 509 Construction in progress 154 310 Property and equipment at cost 4,690 5,258 Less: accumulated depreciation (2,365 ) (2,829 ) Property and equipment, net $ 2,325 $ 2,429 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Current Liabilities | Accrued current liabilities consisted of the following (in thousands): At December 31, 2016 2015 Accrued payroll and related benefits $ 522 $ 1,243 Accrued sales commissions and incentives 325 1,005 Accrued warranty expense 331 314 Accrued severance 328 96 Accrued legal and professional fees 63 151 Accrued other expenses 107 108 Total accrued liabilities $ 1,676 $ 2,917 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Commitments | Future minimum non-cancellable lease commitments are as follows (in thousands): For the year ending December 31, Minimum Lease Commitments 2017 $ 1,225 2018 1,147 2019 1,079 2020 939 2021 and thereafter 1,088 Total contractual obligations $ 5,478 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Summary of Warrant Activity | A summary of warrant activity was as follows: Warrants Outstanding Weighted Average Exercise Price During Period Balance, December 31, 2013 1,107,549 $ 4.41 Warrants issued 147,000 4.65 Warrants expired (285,000 ) 3.87 Balance, December 31, 2014 969,549 4.61 Warrants exercised (638,189 ) 4.58 Warrants cancelled/forfeited (112,110 ) 5.54 Warrants expired (205,000 ) 4.20 Balance, December 31, 2015 14,250 4.30 Warrants cancelled/forfeited (7,500 ) 4.30 Balance, December 31, 2016 6,750 $ 4.30 Exercisable, December 31, 2016 — $ — |
Schedule of Warrants | The number of warrants and weighted average remaining life (in years) by price for outstanding and exercisable warrants at December 31, 2016 was as follows: WARRANTS OUTSTANDING WARRANTS EXERCISABLE Exercise Price Number of Shares Outstanding Weighted Average Remaining Contractual Life Number of Shares Exercisable Weighted Average Exercise Price $ 4.30 6,750 1.07 years — $ — |
Summary of Impact of Results of Stock-Based Compensation | The impact on our results for stock-based compensation was as follows (in thousands): For the year ended December 31, 2016 2015 2014 Cost of sales $ 56 $ 38 $ 14 Product development 84 37 8 Selling, general, and administrative 1,220 738 510 Total stock-based compensation $ 1,360 $ 813 $ 532 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | Estimates utilized in the calculation include the expected life of the option, risk-free interest rate, and expected volatility, and are further comparatively detailed as follows: 2016 2015 2014 Fair value of options issued $ 5.27 $ 5.33 $ 3.62 Exercise price $ 7.46 $ 7.23 $ 4.69 Expected life of option (in years) 5.8 5.8 5.7 Risk-free interest rate 1.5 % 1.7 % 1.8 % Expected volatility 93.7 % 90.7 % 97.9 % Dividend yield 0.00 % 0.00 % 0.00 % |
Summary of Option Activity | A summary of option activity under all plans was as follows: Number of Options Weighted Average Exercise Price Per Share Outstanding at December 31, 2013 286,188 $ 15.30 Granted 326,250 4.76 Cancelled (145,873 ) 12.38 Exercised (7,294 ) 2.30 Outstanding at December 31, 2014 459,271 8.95 Granted 340,500 8.65 Cancelled (147,152 ) 10.10 Exercised (50,412 ) 4.69 Outstanding at December 31, 2015 602,207 8.58 Granted 167,819 7.31 Cancelled (160,126 ) 12.94 Exercised (79,166 ) 4.48 Outstanding at December 31, 2016 530,734 $ 7.48 Vested and expected to vest at December 31, 2016 513,052 $ 7.50 Exercisable at December 31, 2016 389,748 $ 7.75 |
Schedule of Options Outstanding | The options outstanding at December 31, 2016 have been segregated into ranges for additional disclosure as follows: OPTIONS OUTSTANDING OPTIONS EXERCISABLE Range of Exercise Prices Number of Shares Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number of Shares Exercisable Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price $2.30 — $4.00 46,164 6.3 $ 2.30 46,164 6.3 $ 2.30 $4.01 — $4.45 107,986 7.1 4.10 107,192 7.1 4.10 $4.46 — $5.48 136,450 8.1 5.40 93,741 8.0 5.36 $5.49 — $13.58 168,467 8.2 7.73 73,623 6.9 8.57 $13.59 — $63.60 71,667 7.1 19.28 69,028 7.0 19.44 530,734 7.6 $ 7.48 389,748 7.2 $ 7.75 |
Summary of Restricted Stock Activity | The following table shows a summary of restricted stock and restricted stock unit activity: Restricted Stock Outstanding Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value At December 31, 2013 35,869 3,659 7.31 Granted — — — Vested (35,869 ) (1,220 ) 7.20 Forfeited — (2,439 ) 4.10 At December 31, 2014 — — — Granted — 73,750 6.92 Forfeited — (16,250 ) 5.54 At December 31, 2015 — 57,500 $ 7.31 Granted — 290,966 6.56 Vested — (11,213 ) 14.18 Forfeited — (87,138 ) 6.73 At December 31, 2016 — 250,115 $ 6.34 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) from Continuing Operations Before Income Taxes | The following table shows the components of (loss) income from continuing operations before income taxes (in thousands): For the year ended December 31, 2016 2015 2014 United States $ (16,848 ) $ 9,620 $ (4,246 ) (Loss) income from continuing operations before income taxes $ (16,848 ) $ 9,620 $ (4,246 ) |
Schedule of Components of Benefits from Income Taxes | The following table shows the components of the provision for income taxes from continuing operations (in thousands): For the year ended December 31, 2016 2015 2014 Current: U.S. federal $ 1 $ 123 $ — State 26 26 — Provision for income taxes $ 27 $ 149 $ — |
Schedule of Effective Income Tax Rate Reconciliation | The principal items accounting for the difference between income taxes computed at the U.S. statutory rate and the provision for income taxes from continuing operations reflected in our Consolidated Statements of Operations are as follows: For the year ended December 31, 2016 2015 2014 U.S. statutory rate 34.0 % 34.0 % 34.0 % State taxes (net of federal tax benefit) 1.7 0.2 1.0 Valuation allowance (27.5 ) (27.9 ) (19.8 ) Interest amortization expense — — (22.5 ) Other (8.4 ) (4.8 ) 7.3 (0.2 )% 1.5 % 0.0 % |
Schedule of Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets are as follows (in thousands): At December 31, 2016 2015 2014 Allowance for doubtful accounts $ 18 $ 18 $ 11 Accrued expenses and other reserves 3,138 2,244 2,082 Tax credits, deferred R&D, and other 142 122 44 Net operating loss 9,239 5,384 6,871 Valuation allowance (12,537 ) (7,768 ) (9,008 ) Net deferred tax assets $ — $ — $ — |
Product and Geographic Inform33
Product and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Breakdown of Product Net Sales | The following table provides a breakdown of product net sales from continuing operations for the years indicated (in thousands): Year ended December 31, 2016 2015 2014 Commercial $ 14,809 $ 14,156 $ 5,712 Military maritime 16,189 50,128 16,913 R&D services — 119 75 Total net sales $ 30,998 $ 64,403 $ 22,700 |
Geographic Summary of Net Sales | A geographic summary of net sales from continuing operations is as follows (in thousands): For the year ended December 31, 2016 2015 2014 United States Domestic $ 29,840 $ 64,251 $ 22,667 International 1,158 152 33 Total net sales $ 30,998 $ 64,403 $ 22,700 |
Supplementary Financial Infor34
Supplementary Financial Information to Item 8. (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | 2016 Fourth Third Second First Net sales from continuing operations $ 7,186 $ 8,261 $ 7,126 $ 8,425 Gross profit from continuing operations (1,072 ) 3,082 2,522 3,145 Net loss from continuing operations (7,805 ) (3,177 ) (3,916 ) (1,977 ) Net loss from discontinued operations — — — (12 ) Net loss $ (7,805 ) $ (3,177 ) $ (3,916 ) $ (1,989 ) Net loss per share (basic and diluted): Net loss from continuing operations $ (0.67 ) $ (0.27 ) $ (0.34 ) $ (0.17 ) Net loss from discontinued operations — — — — Net loss $ (0.67 ) $ (0.27 ) $ (0.34 ) $ (0.17 ) 2015 Fourth Third Second First Net sales from continuing operations $ 17,249 $ 18,335 $ 16,232 $ 12,587 Gross profit from continuing operations 7,571 9,130 7,440 5,151 Net income from continuing operations 1,657 4,398 2,192 1,224 Net loss from discontinued operations (373 ) (142 ) (81 ) (95 ) Net income $ 1,284 $ 4,256 $ 2,111 $ 1,129 Net income per share (basic): Net income from continuing operations $ 0.14 $ 0.42 $ 0.22 $ 0.13 Net loss from discontinued operations (0.03 ) (0.01 ) (0.01 ) (0.01 ) Net income $ 0.11 $ 0.41 $ 0.21 $ 0.12 Net income per share (diluted): Net income from continuing operations $ 0.14 $ 0.41 $ 0.22 $ 0.12 Net loss from discontinued operations $ (0.03 ) $ (0.01 ) $ (0.01 ) $ (0.01 ) Net income $ 0.11 $ 0.40 $ 0.21 $ 0.11 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2013 | Nov. 26, 2013 | |
Concentration Risk [Line Items] | ||||||
Cash and cash equivalents | $ 16,629 | $ 34,640 | $ 7,435 | $ 1,890 | ||
Restricted cash held | 342 | 113 | 105 | |||
Cash held in escrow | 0 | 0 | 300 | |||
Inventory adjustments | 4,000 | 1,500 | 194 | |||
Operating loss carry-forwards | 10,600 | |||||
Deferred tax assets, operating loss carry-forwards | 9,239 | 5,384 | $ 6,871 | |||
Impairment loss on equipment and software | $ 857 | |||||
Antidilutive securities excluded from computation of earnings per share (number of shares) | 139,595 | 818,832 | ||||
Advertising expense | $ 1,400 | $ 695 | $ 214 | |||
Customer concentration risk | Net sales | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk | 11.00% | |||||
Customer concentration risk | Net sales | LED Lighting Solutions Global, LLC | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk | 59.00% | 64.00% | ||||
Customer concentration risk | Net sales | Atlantic Diving Supply, Inc. | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk | 36.00% | 16.00% | ||||
Customer concentration risk | Net sales | U.S. Navy | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk | 43.00% | 80.00% | ||||
Customer concentration risk | Net sales | DFAS Columbus | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk | 10.00% | |||||
Customer concentration risk | Accounts receivable | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk | 10.00% | |||||
Customer concentration risk | Accounts receivable | Atlantic Diving Supply, Inc. | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk | 63.00% | 62.00% | ||||
Minimum | ||||||
Concentration Risk [Line Items] | ||||||
Property and equipment, useful life | 2 years | |||||
Warranty for finished goods, number of years | 1 year | |||||
Maximum | ||||||
Concentration Risk [Line Items] | ||||||
Property and equipment, useful life | 15 years | |||||
Warranty for finished goods, number of years | 10 years | |||||
Scenario, forecast | ||||||
Concentration Risk [Line Items] | ||||||
Operating loss carry-forwards | $ 18,500 | |||||
Domestic tax authority | ||||||
Concentration Risk [Line Items] | ||||||
Operating loss carry-forwards | $ 79,800 | |||||
Deferred tax assets, operating loss carry-forwards | 25,400 | |||||
Pool products | ||||||
Concentration Risk [Line Items] | ||||||
Cash held in escrow | $ 300 | $ 300 | $ 300 | $ 500 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Reconciliation of Basic and Diluted Income (Loss) per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||||||||||
(Loss) income from continuing operations | $ (7,805) | $ (3,177) | $ (3,916) | $ (1,977) | $ 1,657 | $ 4,398 | $ 2,192 | $ 1,224 | $ (16,875) | $ 9,471 | $ (4,246) |
Loss from discontinued operations | 0 | 0 | 0 | (12) | (373) | (142) | (81) | (95) | (12) | (691) | (1,599) |
Net (loss) income | $ (7,805) | $ (3,177) | $ (3,916) | $ (1,989) | $ 1,284 | $ 4,256 | $ 2,111 | $ 1,129 | $ (16,887) | $ 8,780 | $ (5,845) |
Denominator: | |||||||||||
Basic weighted average common shares outstanding (in shares) | 11,673 | 10,413 | 7,816 | ||||||||
Potential common shares from options and warrants (in shares) | 0 | 339 | 0 | ||||||||
Diluted weighted average shares (in shares) | 11,673 | 10,752 | 7,816 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Schedule of Warranty Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at the beginning of the year | $ 314 | $ 81 |
Accruals for warranties issued | 170 | 255 |
Adjustments to existing warranties | (95) | 0 |
Settlements made during the year (in kind) | (58) | (22) |
Accrued warranty expense | $ 331 | $ 314 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands | Mar. 25, 2014 | Aug. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Nov. 26, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Loss on sale of discontinued operations | $ (12) | $ (534) | $ (30) | ||||
Cash held in escrow | 0 | 0 | 300 | $ 0 | |||
Crescent Lighting Limited (CLL) | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Loss on sale of discontinued operations | $ (44) | 0 | (44) | 0 | |||
Accumulated other comprehensive income reclassification adjustment for foreign currency translation adjustment | $ (469) | ||||||
Pool products | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from sale | $ 5,200 | ||||||
Non-compete period | 5 years | ||||||
Cash held in escrow | $ 300 | $ 300 | $ 300 | 300 | $ 500 | ||
Escrow releases | $ 100 | $ 200 | |||||
Number of additional months to receive payments | 4 months |
Discontinued Operations - Compo
Discontinued Operations - Components Included in Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||
Net sales | $ 0 | $ 1,078 | $ 6,262 | ||||||||
Cost of sales | 0 | 588 | 4,690 | ||||||||
Gross Profit | 0 | 490 | 1,572 | ||||||||
Operating expenses of discontinued operations | 0 | 657 | 3,079 | ||||||||
Other expenses | 0 | 0 | 64 | ||||||||
Loss on disposal of discontinued operations | (12) | (534) | (30) | ||||||||
(Loss) income from discontinued operations before income taxes | (12) | (701) | (1,601) | ||||||||
Provision for (benefit from) income taxes | 0 | (10) | (2) | ||||||||
(Loss) from discontinued operations | $ 0 | $ 0 | $ 0 | $ (12) | $ (373) | $ (142) | $ (81) | $ (95) | $ (12) | $ (691) | $ (1,599) |
Discontinued Operations - Com40
Discontinued Operations - Components of Loss by Business (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
(Loss) gain from operations of discontinued operations | $ 0 | $ (167) | $ (1,571) | |||||||||
Loss on disposal of discontinued operations | (12) | (534) | (30) | |||||||||
(Loss) income from discontinued operations before income taxes | (12) | (701) | (1,601) | |||||||||
Provision for (benefit from) income taxes | 0 | (10) | (2) | |||||||||
(Loss) from discontinued operations | $ 0 | $ 0 | $ 0 | $ (12) | $ (373) | $ (142) | $ (81) | $ (95) | (12) | (691) | (1,599) | |
CLL | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
(Loss) gain from operations of discontinued operations | 0 | (138) | (1,020) | |||||||||
Loss on disposal of discontinued operations | $ (44) | 0 | (44) | 0 | ||||||||
EFLS | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
(Loss) gain from operations of discontinued operations | 0 | (29) | (531) | |||||||||
Pool products business | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
(Loss) gain from operations of discontinued operations | 0 | 0 | (20) | |||||||||
Loss on disposal of discontinued operations | $ (12) | $ (490) | $ (30) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 5,144 | $ 4,577 | |
Finished goods | 9,561 | 4,577 | |
Reserve for excess, obsolete, and slow moving inventories | (5,236) | (1,422) | |
Inventories, net | 9,469 | 7,732 | |
Increase in gross inventory levels | 5,600 | ||
Provision for slow-moving and obsolete inventories | $ 3,990 | $ 1,464 | $ 194 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment at cost | $ 4,690 | $ 5,258 | |
Less: accumulated depreciation | (2,365) | (2,829) | |
Property and equipment, net | 2,325 | 2,429 | |
Depreciation | 805 | 266 | $ 184 |
Impairment loss on equipment and software | $ 857 | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 2 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 15 years | ||
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment at cost | $ 2,231 | $ 2,864 | |
Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 3 years | 3 years | |
Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 15 years | 15 years | |
Tooling | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment at cost | $ 863 | $ 851 | |
Tooling | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 2 years | 2 years | |
Tooling | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | 5 years | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment at cost | $ 39 | $ 39 | |
Property and equipment, useful life | 5 years | 5 years | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment at cost | $ 170 | $ 104 | |
Property and equipment, useful life | 5 years | 5 years | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment at cost | $ 977 | $ 581 | |
Property and equipment, useful life | 3 years | 3 years | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment at cost | $ 256 | $ 509 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment at cost | $ 154 | $ 310 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | |||
Accrued payroll and related benefits | $ 522 | $ 1,243 | |
Accrued sales commissions and incentives | 325 | 1,005 | |
Accrued warranty expense | 331 | 314 | $ 81 |
Accrued severance | 328 | 96 | |
Accrued legal and professional fees | 63 | 151 | |
Accrued other expenses | 107 | 108 | |
Total accrued liabilities | $ 1,676 | $ 2,917 |
Debt - Credit Facilities (Detai
Debt - Credit Facilities (Details) | Dec. 22, 2011USD ($) |
Debt Instrument [Line Items] | |
Credit facility, maximum borrowing capacity | $ 4,500,000 |
Credit facility, available percentage of receivables | 85.00% |
Stated interest rate | 1.00% |
Percentage of inventory, lower of cost or market value | |
Debt Instrument [Line Items] | |
Credit facility, available threshold, percent | 50.00% |
Inventory, maximum value | |
Debt Instrument [Line Items] | |
Credit facility, available threshold | $ 250,000 |
Borrowing on accounts receivable | |
Debt Instrument [Line Items] | |
Credit facility, interest rate | 8.50% |
Borrowing on inventories | |
Debt Instrument [Line Items] | |
Credit facility, interest rate | 10.00% |
Borrowing on overdrafts | |
Debt Instrument [Line Items] | |
Credit facility, interest rate | 13.00% |
Right to terminate, notice required, period of time | 60 days |
Debt - Borrowings (Details)
Debt - Borrowings (Details) - USD ($) | Mar. 31, 2014 | Jun. 01, 2009 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Debt Instrument [Line Items] | ||||||
Conversion of subordinated convertible debt | $ 0 | $ 0 | $ 6,145,000 | |||
One-time charge in relation to the conversion of the notes | 2,700,000 | |||||
Interest expense | 154,000 | |||||
Write off of deferred debt issuance cost | 293,000 | |||||
Revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, remaining borrowing capacity | 2,300,000 | |||||
Unsecured convertible notes | Common stock | ||||||
Debt Instrument [Line Items] | ||||||
Conversion of subordinated convertible debt | $ 6,150,000 | |||||
Debt conversion, converted instrument, number of shares issued | 2,671,739 | |||||
Unsecured promissory note - Quercus Trust | ||||||
Debt Instrument [Line Items] | ||||||
Unsecured promissory note - Quercus Trust | $ 70,000 | |||||
Credit facility, commitment fee percentage | 1.00% | |||||
Single payment to cancel note and accrued interest | 13,000 | |||||
Accrued interest | 5,000 | |||||
Unsecured promissory note - Quercus Trust | Other income | ||||||
Debt Instrument [Line Items] | ||||||
Gains on cancellation of debt | $ 62,000 | |||||
Convertible debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt conversion, converted instrument, additional interest rate | 5.00% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Contingent Consideration [Line Items] | |||||
Net rent expense | $ 1,200 | $ 783 | $ 341 | ||
Total settlement amount | $ 330 | ||||
Insurance reimbursement | $ 174 | ||||
Selling, general, and administrative | Settled litigation | |||||
Business Acquisition, Contingent Consideration [Line Items] | |||||
Insurance reimbursement | 174 | ||||
Litigation expense | $ 156 |
Commitments and Contingencies47
Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 1,225 |
2,018 | 1,147 |
2,019 | 1,079 |
2,020 | 939 |
2021 and thereafter | 1,088 |
Total contractual obligations | $ 5,478 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands | Sep. 16, 2015USD ($) | Sep. 11, 2015$ / sharesshares | Aug. 11, 2014USD ($) | Aug. 08, 2014shares | Aug. 06, 2014$ / sharesshares | Aug. 06, 2014$ / sharesshares | Sep. 30, 2013shares | Jul. 31, 2013 | Dec. 31, 2016USD ($)plan$ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Jul. 22, 2015shares | May 06, 2014shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Issuance of common stock (in shares) | 1,500,000 | 1,175,000 | |||||||||||
Share price (in dollars per share) | $ / shares | $ 17 | $ 4.50 | $ 4.50 | $ 4.25 | |||||||||
Proceeds from issuances of common stock, net | $ | $ 23,600 | $ 5,150 | $ 0 | $ 23,574 | $ 5,952 | ||||||||
Additional shares purchased (in shares) | 176,250 | 176,250 | |||||||||||
Number of shares | 47,000 | 47,000 | |||||||||||
Warrant issuance of common stock sold | 4.00% | ||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 5.40 | $ 5.40 | |||||||||||
Percentage of public offering price | 120.00% | ||||||||||||
Number of additional other equity-based plans | plan | 2 | ||||||||||||
Vesting period | 10 years | ||||||||||||
Unamortized stock compensation expense | $ | $ 1,200 | $ 992 | |||||||||||
Remaining weighted average life | 1 year 9 months 15 days | 1 year 10 months 21 days | |||||||||||
Intrinsic value of options exercised | $ | $ 126 | ||||||||||||
Intrinsic value of options outstanding | $ | 106 | ||||||||||||
Intrinsic value of options exercisable | $ | $ 106 | ||||||||||||
2013 Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares authorized | 500,000 | ||||||||||||
Number of shares available for grant (in shares) | 443,441 | ||||||||||||
Purchase price of common stock, percent | 85.00% | ||||||||||||
Shares issued in the period (in shares) | 22,094 | 18,119 | 9,932 | ||||||||||
Restricted stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 1 year | ||||||||||||
Minimum | Restricted Stock Units (RSUs) | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting periods | 1 year | ||||||||||||
Minimum | Restricted stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting periods | 1 year | ||||||||||||
Minimum | Employee stock option | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 1 year | ||||||||||||
Maximum | Restricted Stock Units (RSUs) | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting periods | 3 years | ||||||||||||
Maximum | Employee stock option | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 4 years | ||||||||||||
2014 Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares authorized | 600,000 | 600,000 | |||||||||||
Vesting periods | 10 years | ||||||||||||
Number of shares available for grant (in shares) | 546,638 | ||||||||||||
2014 Plan | Minimum | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 3 years | ||||||||||||
2014 Plan | Maximum | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 4 years | ||||||||||||
Shares sold by selling stockholders | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Issuance of common stock (in shares) | 1,500,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Warrant Activity (Details) | 12 Months Ended | ||
Dec. 31, 2016$ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares | |
Warrants Outstanding | |||
Beginning balance (in shares) | shares | 14,250 | 969,549 | 1,107,549 |
Warrants issued (in shares) | shares | 147,000 | ||
Warrants exercised (in shares) | shares | (638,189) | ||
Warrants expired (in shares) | shares | (205,000) | (285,000) | |
Warrants canceled/forfeited (in shares) | shares | (7,500) | (112,110) | |
Ending balance (in shares) | shares | 6,750 | 14,250 | 969,549 |
Weighted Average Exercise Price During Period | |||
Beginning balance (in dollars per share) | $ / shares | 4.30 | 4.61 | 4.41 |
Warrants issued (in dollars per share) | $ / shares | 4.65 | ||
Warrants exercised (in dollars per share) | $ / shares | 4.58 | ||
Warrants expired (in dollars per share) | $ / shares | 4.20 | 3.87 | |
Warrants canceled/forfeited (in dollars per share) | $ / shares | 4.30 | 5.54 | |
Ending balance (in dollars per share) | $ / shares | 4.30 | 4.30 | 4.61 |
Warrants exercisable (in shares) | shares | 0 | ||
Warrants exercisable (in dollars per share) | $ / shares | $ 0 |
Stockholders' Equity - Warrants
Stockholders' Equity - Warrants Outstanding and Exercisable (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Aug. 06, 2014 | |
Class of Warrant or Right [Line Items] | ||
Exercise Price (in dollars per share) | $ 5.40 | |
Exercise price, range one | ||
Class of Warrant or Right [Line Items] | ||
Exercise Price (in dollars per share) | $ 4.30 | |
Number of Shares Outstanding (in shares) | 6,750 | |
Weighted Average Remaining Contractual Life | 1 year 26 days | |
Number of Shares Exercisable (in shares) | 0 | |
Weighted Average Exercise Price (in dollars per share) | $ 0 |
Stockholders' Equity - Impact o
Stockholders' Equity - Impact of Results for Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 1,360 | $ 813 | $ 532 |
Cost of sales | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 56 | 38 | 14 |
Product development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 84 | 37 | 8 |
Selling, general, and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 1,220 | $ 738 | $ 510 |
Stockholders' Equity - Estimate
Stockholders' Equity - Estimates Utilized (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |||
Fair value of options issued (in dollars per share) | $ 5.27 | $ 5.33 | $ 3.62 |
Exercise price (in dollars per share) | $ 7.46 | $ 7.23 | $ 4.69 |
Expected life of option (in years) | 5 years 9 months 18 days | 5 years 9 months 24 days | 5 years 255 days |
Risk-free interest rate | 1.50% | 1.70% | 1.80% |
Expected volatility | 93.70% | 90.70% | 97.90% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stockholders' Equity - Summar53
Stockholders' Equity - Summary of Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Options | |||
Outstanding at beginning of period (in shares) | 602,207 | 459,271 | 286,188 |
Granted (in shares) | 167,819 | 340,500 | 326,250 |
Canceled (in shares) | (160,126) | (147,152) | (145,873) |
Exercised (in shares) | (79,166) | (50,412) | (7,294) |
Outstanding at end of period (in shares) | 530,734 | 602,207 | 459,271 |
Vested and expected to vest (in shares) | 513,052 | ||
Exercisable (in shares) | 389,748 | ||
Weighted Average Exercise Price Per Share | |||
Outstanding at beginning of period (in dollars per share) | $ 8.58 | $ 8.95 | $ 15.30 |
Granted (in dollars per share) | 7.31 | 8.65 | 4.76 |
Canceled (in dollars per share) | 12.94 | 10.10 | 12.38 |
Exercised (in dollars per share) | 4.48 | 4.69 | 2.30 |
Outstanding at end of period (in dollars per share) | 7.48 | $ 8.58 | $ 8.95 |
Vested and expected to vest (in dollars per share) | 7.50 | ||
Exercisable (in dollars per share) | $ 7.75 |
Stockholders' Equity - Options
Stockholders' Equity - Options Outstanding and Exercisable (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
OPTIONS OUTSTANDING | |
Number of Shares Outstanding (in shares) | shares | 530,734 |
Weighted Average Remaining Contractual Life (in years) | 7 years 7 months 6 days |
Weighted Average Exercise Price (in dollars per share) | $ 7.48 |
OPTIONS EXERCISABLE | |
Number of Shares Exercisable (in shares) | shares | 389,748 |
Weighted Average Remaining Contractual Life (in years) | 7 years 2 months 12 days |
Weighted Average Exercise Price (in dollars per share) | $ 7.75 |
Exercise price, range one | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit (in dollars per share) | 2.30 |
Range of Exercise Prices, upper limit (in dollars per share) | $ 4 |
OPTIONS OUTSTANDING | |
Number of Shares Outstanding (in shares) | shares | 46,164 |
Weighted Average Remaining Contractual Life (in years) | 6 years 3 months 18 days |
Weighted Average Exercise Price (in dollars per share) | $ 2.30 |
OPTIONS EXERCISABLE | |
Number of Shares Exercisable (in shares) | shares | 46,164 |
Weighted Average Remaining Contractual Life (in years) | 6 years 3 months 18 days |
Weighted Average Exercise Price (in dollars per share) | $ 2.30 |
Exercise price, range two | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit (in dollars per share) | 4.01 |
Range of Exercise Prices, upper limit (in dollars per share) | $ 4.45 |
OPTIONS OUTSTANDING | |
Number of Shares Outstanding (in shares) | shares | 107,986 |
Weighted Average Remaining Contractual Life (in years) | 7 years 1 month 6 days |
Weighted Average Exercise Price (in dollars per share) | $ 4.10 |
OPTIONS EXERCISABLE | |
Number of Shares Exercisable (in shares) | shares | 107,192 |
Weighted Average Remaining Contractual Life (in years) | 7 years 1 month 6 days |
Weighted Average Exercise Price (in dollars per share) | $ 4.10 |
Exercise price, range three | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit (in dollars per share) | 4.46 |
Range of Exercise Prices, upper limit (in dollars per share) | $ 5.48 |
OPTIONS OUTSTANDING | |
Number of Shares Outstanding (in shares) | shares | 136,450 |
Weighted Average Remaining Contractual Life (in years) | 8 years 1 month 6 days |
Weighted Average Exercise Price (in dollars per share) | $ 5.40 |
OPTIONS EXERCISABLE | |
Number of Shares Exercisable (in shares) | shares | 93,741 |
Weighted Average Remaining Contractual Life (in years) | 8 years |
Weighted Average Exercise Price (in dollars per share) | $ 5.36 |
Exercise price, range four | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit (in dollars per share) | 5.49 |
Range of Exercise Prices, upper limit (in dollars per share) | $ 13.58 |
OPTIONS OUTSTANDING | |
Number of Shares Outstanding (in shares) | shares | 168,467 |
Weighted Average Remaining Contractual Life (in years) | 8 years 2 months 12 days |
Weighted Average Exercise Price (in dollars per share) | $ 7.73 |
OPTIONS EXERCISABLE | |
Number of Shares Exercisable (in shares) | shares | 73,623 |
Weighted Average Remaining Contractual Life (in years) | 6 years 10 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ 8.57 |
Exercise price, range five | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit (in dollars per share) | 13.59 |
Range of Exercise Prices, upper limit (in dollars per share) | $ 63.60 |
OPTIONS OUTSTANDING | |
Number of Shares Outstanding (in shares) | shares | 71,667 |
Weighted Average Remaining Contractual Life (in years) | 7 years 1 month 6 days |
Weighted Average Exercise Price (in dollars per share) | $ 19.28 |
OPTIONS EXERCISABLE | |
Number of Shares Exercisable (in shares) | shares | 69,028 |
Weighted Average Remaining Contractual Life (in years) | 7 years |
Weighted Average Exercise Price (in dollars per share) | $ 19.44 |
Stockholders' Equity - Summar55
Stockholders' Equity - Summary of Restricted Stock Activity (Details) - $ / shares | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Outstanding | ||||
Beginning balance (in shares) | 14,250 | 969,549 | 1,107,549 | |
Ending balance (in shares) | 6,750 | 14,250 | 969,549 | |
Weighted Average Grant Date Fair Value | ||||
Outstanding at beginning of period (in dollars per share) | $ 7.31 | $ 0 | $ 7.31 | |
Granted (in dollars per share) | 6.56 | 6.92 | 0 | |
Vested (in dollars per share) | 14.18 | 7.20 | ||
Canceled (in dollars per share) | 6.73 | 5.54 | 4.10 | |
Outstanding at end of period (in dollars per share) | $ 6.34 | $ 7.31 | $ 0 | |
Restricted Stock [Member] | ||||
Restricted Stock Outstanding | ||||
Beginning balance (in shares) | 0 | 0 | 35,869 | |
Granted (in shares) | 0 | 0 | 0 | |
Vested (in shares) | 0 | (35,869) | ||
Canceled (in shares) | 0 | 0 | 0 | |
Ending balance (in shares) | 0 | 0 | 0 | |
Restricted Stock Units (RSUs) | ||||
Restricted Stock Outstanding | ||||
Beginning balance (in shares) | 57,500 | 0 | 3,659 | |
Granted (in shares) | 290,966 | 73,750 | 0 | |
Vested (in shares) | (11,213) | (1,220) | ||
Canceled (in shares) | (87,138) | (16,250) | (2,439) | |
Ending balance (in shares) | 250,115 | 57,500 | 0 | |
Restricted Stock [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 1 year |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) from Continuing Operations Before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (16,848) | $ 9,620 | $ (4,246) |
(Loss) income from continuing operations before income taxes | $ (16,848) | $ 9,620 | $ (4,246) |
Income Taxes - Components (Deta
Income Taxes - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
U.S. federal | $ 1 | $ 123 | $ 0 |
State | 26 | 26 | 0 |
Provision for income taxes | $ 27 | $ 149 | $ 0 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory rate | 34.00% | 34.00% | 34.00% |
State taxes (net of federal tax benefit) | 1.70% | 0.20% | 1.00% |
Valuation allowance | (27.50%) | (27.90%) | (19.80%) |
Interest amortization expense | 0.00% | 0.00% | (22.50%) |
Other | (8.40%) | (4.80%) | 7.30% |
Effective income tax rate reconciliation | (0.20%) | 1.50% | 0.00% |
Income Taxes - Temporary Differ
Income Taxes - Temporary Differences (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | |||
Allowance for doubtful accounts | $ 18 | $ 18 | $ 11 |
Accrued expenses and other reserves | 3,138 | 2,244 | 2,082 |
Tax credits, deferred R&D, and other | 142 | 122 | 44 |
Net operating loss | 9,239 | 5,384 | 6,871 |
Valuation allowance | (12,537) | (7,768) | (9,008) |
Net deferred tax assets | $ 0 | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
Accrued interest and penalties related to uncertain tax positions | $ 0 | $ 0 | ||
Operating loss carry-forwards | 10,600,000 | |||
Deferred tax assets, operating loss carry-forwards | 5,384,000 | $ 6,871,000 | 9,239,000 | |
Operating loss carry-forwards, subject to expiration | 54,400,000 | |||
Net deferred tax liabilities | 0 | 0 | ||
Federal tax expense | $ 0 | |||
Scenario, forecast | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carry-forwards | $ 18,500,000 | |||
Research tax credit carry-forward | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carry-forwards | 299,000 | |||
Domestic tax authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforward utilized | $ 6,200,000 | |||
Operating loss carry-forwards | 79,800,000 | |||
Deferred tax assets, operating loss carry-forwards | $ 25,400,000 |
Product and Geographic Inform61
Product and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | $ 7,186 | $ 8,261 | $ 7,126 | $ 8,425 | $ 17,249 | $ 18,335 | $ 16,232 | $ 12,587 | $ 30,998 | $ 64,403 | $ 22,700 |
Long-lived assets located in US, percent | 99.00% | 99.00% | 99.00% | 99.00% | |||||||
United States Domestic | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | $ 29,840 | $ 64,251 | 22,667 | ||||||||
International | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | 1,158 | 152 | 33 | ||||||||
Commercial | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | 14,809 | 14,156 | 5,712 | ||||||||
Military maritime | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | 16,189 | 50,128 | 16,913 | ||||||||
R&D services | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | $ 0 | $ 119 | $ 75 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | Jul. 31, 2014 | Feb. 27, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2016 |
5 Elements Global Advisors | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership in reporting entity by related party | 2.60% | ||||||
5 Elements Efficiencies (BVI) Ltd. | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership in reporting entity by related party | 2.50% | ||||||
5 Elements Efficiencies (BVI) Ltd. | Yeh-Mei Cheng | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership interest | 50.00% | ||||||
Communal | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership in reporting entity by related party | 5.00% | ||||||
Related party transaction, term of agreement | 60 months | ||||||
Amount paid | $ 425 | $ 523 | |||||
Recorded expense | $ 226 | $ 226 | $ 226 | ||||
Communal | 5 Elements Efficiencies (BVI) Ltd. | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership interest | 50.00% |
Legal Matters (Details)
Legal Matters (Details) - USD ($) $ in Thousands | Sep. 01, 2015 | Feb. 18, 2015 | Mar. 25, 2014 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | Nov. 26, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash held in escrow | $ 0 | $ 0 | $ 300 | ||||
Pool products | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from sale | $ 5,200 | ||||||
Cash held in escrow | 300 | $ 300 | $ 300 | $ 500 | |||
Escrow releases | $ 100 | $ 200 | |||||
Number of additional months to receive payments | 4 months | ||||||
Pool products | Pending litigation | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Damages sought | $ 1,600 | $ 780 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Net (loss) income | $ (7,805) | $ (3,177) | $ (3,916) | $ (1,989) | $ 1,284 | $ 4,256 | $ 2,111 | $ 1,129 | $ (16,887) | $ 8,780 | $ (5,845) | ||
Net (decrease) increase in cash and cash equivalents | (18,011) | 27,205 | 5,545 | ||||||||||
Cash and cash equivalents | $ 16,629 | $ 34,640 | $ 16,629 | $ 34,640 | $ 7,435 | $ 1,890 | |||||||
Scenario, forecast | Subsequent event | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Restructuring charges | $ 1,100 |
Supplementary Financial Infor65
Supplementary Financial Information to Item 8. (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales from continuing operations | $ 7,186 | $ 8,261 | $ 7,126 | $ 8,425 | $ 17,249 | $ 18,335 | $ 16,232 | $ 12,587 | $ 30,998 | $ 64,403 | $ 22,700 |
Gross profit from continuing operations | (1,072) | 3,082 | 2,522 | 3,145 | 7,571 | 9,130 | 7,440 | 5,151 | 7,677 | 29,292 | 7,778 |
Net loss from continuing operations | (7,805) | (3,177) | (3,916) | (1,977) | 1,657 | 4,398 | 2,192 | 1,224 | (16,875) | 9,471 | (4,246) |
Loss from discontinued operations | 0 | 0 | 0 | (12) | (373) | (142) | (81) | (95) | (12) | (691) | (1,599) |
Net (loss) income | $ (7,805) | $ (3,177) | $ (3,916) | $ (1,989) | $ 1,284 | $ 4,256 | $ 2,111 | $ 1,129 | $ (16,887) | $ 8,780 | $ (5,845) |
Denominator: | |||||||||||
Net (loss) income from continuing operations (in dollars per share) | $ (0.67) | $ (0.27) | $ (0.34) | $ (0.17) | |||||||
Net loss from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | |||||||
Net loss (in dollars per share) | $ (0.67) | $ (0.27) | $ (0.34) | $ (0.17) | |||||||
Net (loss) income per share - basic: | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | $ 0.14 | $ 0.42 | $ 0.22 | $ 0.13 | $ (1.45) | $ 0.91 | $ (0.55) | ||||
Net (loss) income from discontinued operations (in dollars per share) | (0.03) | (0.01) | (0.01) | (0.01) | 0 | (0.07) | (0.20) | ||||
Net income (loss) (in dollars per share) | 0.11 | 0.41 | 0.21 | 0.12 | (1.45) | 0.84 | (0.75) | ||||
Income (loss) from continuing operations | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | 0.14 | 0.41 | 0.22 | 0.12 | (1.45) | 0.88 | (0.55) | ||||
Net (loss) income from discontinued operations (in dollars per share) | (0.03) | (0.01) | (0.01) | (0.01) | 0 | (0.06) | (0.20) | ||||
Net income (loss) (in dollars per share) | $ 0.11 | $ 0.40 | $ 0.21 | $ 0.11 | $ (1.45) | $ 0.82 | $ (0.75) |
Schedule II - Schedule of Val66
Schedule II - Schedule of Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for doubtful accounts and returns | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | $ 155 | $ 307 | $ 52 |
Charges to Revenue/ Expense | 156 | 39 | 582 |
Deductions | 75 | 191 | 327 |
Ending Balance | 236 | 155 | 307 |
Reserve for excess, obsolete, and slow moving inventories | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 1,422 | 305 | 158 |
Charges to Revenue/ Expense | 3,990 | 1,464 | 194 |
Deductions | 176 | 347 | 47 |
Ending Balance | 5,236 | 1,422 | 305 |
Valuation allowance for deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 7,768 | 9,008 | 6,051 |
Charges to Revenue/ Expense | 4,769 | (1,240) | 2,957 |
Deductions | 0 | 0 | 0 |
Ending Balance | $ 12,537 | $ 7,768 | $ 9,008 |
Uncategorized Items - efoi-2016
Label | Element | Value |
Cash | us-gaap_Cash | $ 7,030,000 |
Cash | us-gaap_Cash | 34,527,000 |
Cash | us-gaap_Cash | $ 16,287,000 |