Energy Focus (EFOI) 10-Q 2 May 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 27, 2018
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-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		11,936,096

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 10,172	$ 10,761
Trade accounts receivable, less allowances of $20 and $42, respectively	3,551	3,595
Inventories, net	5,608	5,718
Prepaid and other current assets	886	596
Assets held for sale	0	225
Total current assets	20,217	20,895
Property and equipment, net	1,004	1,097
Other assets	144	159
Total assets	21,365	22,151
Current liabilities:
Accounts payable	3,076	1,630
Accrued liabilities	145	130
Accrued payroll and related benefits	440	394
Accrued sales commissions	178	124
Accrued restructuring	91	170
Accrued warranty reserve	141	174
Deferred revenue	27	5
Total current liabilities	4,098	2,627
Other liabilities	201	232
Total liabilities	4,299	2,859
STOCKHOLDERS' EQUITY
Preferred stock, par value $0.0001 per share: Authorized: 2,000,000 shares in 2017 and 2016, 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 2017 and 2016, Issued and outstanding: 11,690,030 at September 30, 2016 and 11,648,978 at December 31, 2015	1	1
Additional paid-in capital	127,656	127,493
Accumulated other comprehensive income	3	2
Accumulated deficit	(110,594)	(108,204)
Total stockholders' equity	17,066	19,292
Total liabilities and stockholders' equity	$ 21,365	$ 22,151

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Trade accounts receivable, allowances	$ 20	$ 42
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, shares authorized	30,000,000	30,000,000
Common stock, shares issued	11,931,237	11,868,896
Common stock, shares outstanding	11,931,237	11,868,896

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net sales	$ 4,659	$ 4,106
Cost of sales	3,843	3,545
Gross profit	816	561
Operating expenses:
Product development	629	771
Selling, general, and administrative	2,647	3,631
Restructuring	(50)	674
Total operating expenses	3,226	5,076
Loss from operations	(2,410)	(4,515)
Other expenses (income):
Interest expense	1	0
Other (income) expense	(21)	7
Loss from operations before income taxes	(2,390)	(4,522)
Provision for income taxes	0	0
Net loss	$ (2,390)	$ (4,522)
Net loss per share - basic and diluted (in dollars per share)	$ (0.20)	$ (0.39)
Weighted average shares used in computing net loss per share:
Basic and diluted (in shares)	11,900	11,718

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (2,390)	$ (4,522)
Other comprehensive income:
Foreign currency translation adjustments	1	5
Comprehensive loss	$ (2,389)	$ (4,517)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit
Balance at the beginning of the period (in shares) at Dec. 31, 2017		11,869
Balance at the beginning of the period at Dec. 31, 2017	$ 19,292	$ 1	$ 127,493	$ 2	$ (108,204)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock option and stock purchase plans (in shares)		74
Issuance of common stock under employee stock option and stock purchase plans	0
Common stock withheld in lieu of income tax withholding on vesting of restricted stock units (in shares)		(12)
Common stock withheld in lieu of income tax withholding on vesting of restricted stock units	(32)		(32)
Stock-based compensation	195		195
Stock-based compensation reversal	(270)
Foreign currency translation adjustments	1			1
Net loss from continuing operations	(2,390)				(2,390)
Balance at the end of the period (in shares) at Mar. 31, 2018		11,931
Balance at the end of the period at Mar. 31, 2018	$ 17,066	$ 1	$ 127,656	$ 3	$ (110,594)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net loss	$ (2,390)	$ (4,522)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	151	177
Stock-based compensation	195	207
Stock-based compensation reversal	0	(269)
Provision for doubtful accounts receivable	(22)	0
Provision for slow-moving and obsolete inventories and valuation reserves	(487)	162
Provision for warranties	(33)	13
(Gain) loss on dispositions of property and equipment	(19)	8
Changes in operating assets and liabilities:
Accounts Receivable	66	3,054
Inventories	597	866
Prepaid and other assets	(274)	(114)
Accounts payable	1,398	(1,649)
Accrued and other liabilities	53	248
Deferred revenue	22	174
Total adjustments	1,647	2,877
Net cash used in operating activities	(743)	(1,645)
Cash flows from investing activities:
Acquisitions of property and equipment	(57)	(29)
Proceeds from the sale of property and equipment	244	0
Net cash provided by (used in) investing activities	187	(29)
Cash flows from financing activities:
Proceeds from exercises of stock options and employee stock purchase plan purchases	0	77
Common stock withheld to satisfy income tax withholding on vesting of restricted stock units	32	47
Net cash (used in) provided by financing activities	(32)	30
Effect of exchange rate changes on cash	(1)	(15)
Net decrease in cash and cash equivalents	(589)	(1,659)
Cash and cash equivalents, beginning of period	10,761	16,629
Cash and cash equivalents, end of period	10,172	14,970
Classification of cash and cash equivalents:
Cash and cash equivalents, end of period	$ 10,761	$ 16,629

Nature of Operations

Nature of Operations	3 Months Ended
	Mar. 31, 2018
Disclosure Text Block [Abstract]
Nature of Operations	NATURE OF OPERATIONS Energy Focus, Inc. and its subsidiary engage in the design, development, manufacturing, marketing, and sale of energy-efficient lighting systems. We operate in a single industry segment, developing and selling our energy-efficient light-emitting diode (“LED”) lighting products into the general commercial, industrial and military maritime markets. Our goal is to become a trusted leader in the LED lighting retrofit market by replacing fluorescent lamps in institutional buildings and high-intensity discharge (“HID”) lighting in low-bay and high-bay applications with our innovative, high-quality commercial and military tubular LED (“TLED”) and other LED products. Product development is a key focus for us. Our product development teams, including our teams located in our Solon, Ohio headquarters and at our product development center in Taipei, Taiwan, are dedicated to developing and designing leading-edge technology LED lighting products.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The condensed consolidated financial statements (“financial statements”) include the accounts of the Company and its subsidiary Energy Focus Europe, Ltd. located in the United Kingdom, which is not active. Unless indicated otherwise, the information in the accompanying financial statements and Notes to the condensed consolidated financial statements relates to our continuing operations. We have prepared the accompanying financial data for the three months ended March 31, 2018 and 2017 pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The accompanying financial data and information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017 (“ 2017 Annual Report”). The Condensed Consolidated Balance Sheet as of December 31, 2017 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying financial statements contain all normal and recurring adjustments necessary to present fairly our Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017 , Condensed Consolidated Statements of Operations for the three months ended March 31, 2018 and 2017 , Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2018 and 2017 , Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2018 , and Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017 . Use of estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management’s best knowledge of current events and actions that may impact us in the future, actual results may vary from the estimates. Estimates include, but are not limited to, the establishment of reserves for accounts receivable, sales returns, inventory obsolescence and warranty claims; the useful lives of property and equipment; valuation allowance for net deferred taxes; the cost and offsetting income related to subleased property; 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. Certain risks and concentrations 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 the three months ended March 31, 2018 , a regional commercial lighting retrofit company located in California accounted for approximately 10 percent of net sales. In addition, our primary distributor for the U.S. Navy, accounted for approximately 46 percent of net sales for the three months ended March 31, 2018 . When combined with sales to a shipbuilder for the U.S. Navy, sales of products for the U.S. Navy comprised approximately 50 percent of net sales for the same period. For the three months ended March 31, 2017 , our primary distributor for the U.S. Navy accounted for approximately 14 percent of net sales and a shipbuilder for the U.S. Navy accounted for approximately 10 percent of net sales, and together sales of products for the U.S. Navy comprised approximately 24 percent of net sales. In addition, sales to a global healthcare system located in Northeast Ohio accounted for approximately 22 percent of net sales for the three months ended March 31, 2017 . Our primary distributor for the U.S. Navy, the regional commercial lighting retrofit company located in California, and the global healthcare system located in Northeast Ohio accounted for approximately 47 percent , 13 percent , and 10 percent of net trade accounts receivable, respectively, at March 31, 2018 . At December 31, 2017 , our primary distributor for the U.S. Navy, the global healthcare system located in Northeast Ohio, and a regional commercial lighting retrofit company located in Texas accounted for approximately 39 percent , 21 percent , and 17 percent of net trade accounts receivable, respectively. Recent accounting pronouncements 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 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. Update to significant accounting policies Revenue On January 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , as amended by subsequently issued additional guidance (together, “ASC 606”) using the modified retrospective method. The adoption of ASC 606 did not have a material impact on our consolidated financial position or results of operations, as our revenue arrangements generally consist of a single performance obligation to transfer promised goods at a fixed price. Net sales include revenues from sales of products and shipping and handling charges, net of estimates for product returns. Revenue is measured at the amount of consideration we expect to received in exchange for the transferred products. We recognize revenue at the point in time when we transfer the promised products to the customer and the customer obtains control over the products. We recognize revenue for shipping and handling charges at the time the goods are shipped to the customer, and the costs of outbound freight are included in cost of sales, as we have elected the practical expedient included in ASC 606. We provide for product returns based on historical return rates. While we incur costs for sales commissions to our sales employees and outside agents, we recognize commission costs concurrent with the related revenue, as the amortization period is less than one year and we have elected the practical expedient included in ASC 606. We do not incur incremental costs to obtain contracts with our customers. Our product warranties are assurance-type warranties, which promise the customer that the products are as specified in the contract. Therefore, the product warranties are not a separate performance obligation and are accounted for as described below. Sales taxes assessed by governmental authorities are accounted for on a net basis and are excluded from net sales. The following table provides a disaggregation of product net sales for the periods presented: Three months ended 2018 2017 Net sales: Commercial $ 2,205 $ 3,079 Military maritime 2,454 1,027 Total net sales $ 4,659 $ 4,106 Accounts Receivable Our trade accounts receivable consists of amounts billed to and currently due from customers. Credit is extended to customers based upon an evaluation of the customer’s financial condition and the amounts due are stated at their estimated net realizable value. We maintain an allowance for doubtful accounts receivable to provide for the estimated amount of receivables that will not be collected. The allowance is based on an assessment of customer creditworthiness and historical payment experience, the age of outstanding receivables, and performance guarantees to the extent applicable. Past due amounts are written off when our internal collection efforts have been unsuccessful. Our standard payment terms with customers are net 30 days, and we do not generally offer extended payment terms to our customers. Accordingly, we do not adjust trade accounts receivable for the effects of financing, as we expect the period between the transfer of product to the customer and the receipt of payment from the customer to be in line with our standard payment terms. There have been no other material changes to our significant accounting policies, as compared to those described in our 2017 Annual Report. Geographic information Approximately 98 percent of our long-lived fixed assets are located in the United States, with the remainder located in our product development center in Taiwan. Net sales attributable to customers outside the United States accounted for approximately one percent and two percent of our total net sales for the three months ended March 31, 2018 and 2017 , respectively. The geographic location of our net sales is derived from the destination to which we ship the product. Net loss per share Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of incremental shares upon the exercise of stock options or release of restricted stock units unless the effect would be anti-dilutive. As a result of the net loss we incurred for the three months ended March 31, 2018 and 2017, approximately 90 thousand and 137 thousand potentially dilutive equity awards respectively, were excluded from the net loss per share calculation, as their inclusion would have been anti-dilutive. Therefore, for the three months ended March 31, 2018 and 2017 , the basic weighted average shares outstanding were used in calculating diluted loss per share. The following is a reconciliation of the numerator and denominator of the basic and diluted net loss per share computations for the periods presented below (in thousands): Three months ended 2018 2017 Numerator: Net loss $ (2,390 ) $ (4,522 ) Denominator: Basic weighted average common shares outstanding 11,900 11,718 Potential common shares from equity awards and warrants — — Diluted weighted average shares 11,900 11,718 Product warranties Through March 31, 2016 , we warranted finished goods against defects in material and workmanship under normal use and service for periods generally between one and five years . Beginning April 1, 2016 , we warrant our commercial LED tubes, globes, and troffer luminaires for a period of ten years . Warranty settlement costs consist of actual amounts expensed for warranty, which are largely a result of the cost of replacement products provided to our customers. A liability for the estimated future costs under product warranties is maintained for products outstanding under warranty based on the actual claims incurred to date and the estimated nature, frequency, and costs of future claims. These estimates are inherently uncertain and changes to our historical or projected experience may cause material changes to our warranty reserves in the future. We continuously review the assumptions related to the adequacy of our warranty reserve, including product failure rates, and make adjustments to the existing warranty liability when there are changes to these estimates or the underlying replacement product costs, or the warranty period expires. Extending the warranty did not have a material impact on our condensed consolidated financial statements in 2017 or for the three months ended March 31, 2018 . The following table summarizes warranty activity for the periods presented (in thousands): Three months ended 2018 2017 Balance at beginning of period $ 174 $ 331 Warranty accruals for current period sales 8 13 Adjustments to existing warranties (1 ) (50 ) In kind settlements made during the period (40 ) (36 ) Accrued warranty reserve $ 141 $ 258

Restructuring

Restructuring	3 Months Ended
	Mar. 31, 2018
Restructuring and Related Activities [Abstract]
Restructuring	RESTRUCTURING During the first quarter of 2017, we announced a restructuring initiative with a goal of significantly reducing annual operating costs from 2016 levels. The initiative included 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, and involved headcount reductions and office closures. This initiative was designed to return the Company to profitability and mitigate the substantial doubt that existed at December 31, 2016 about our ability to continue as a going concern. For additional information regarding the restructuring actions taken in the 2017, please refer to Note 3., “Restructuring,” included under Item 8 of our 2017 Annual Report. During the three months ended March 31, 2018 we recorded net restructuring credits totaling approximately $50 thousand , primarily related to the revision of our initial estimates of the cost for the remaining lease obligation for our former Arlington, Virginia office. For the three months ended March 31, 2017 , we recorded restructuring charges totaling approximately $0.7 million , consisting of approximately $0.6 million in severance and related benefits, $19 thousand in facilities costs related to the termination of the Rochester, Minnesota lease obligation, and $11 thousand in other restructuring costs. Our restructuring liabilities consist of one-time termination costs for severance and benefits to former employees and estimated ongoing costs related to long-term operating lease obligations. The recorded value of the termination severance and benefits to employees approximates fair value, as the remaining obligation is based on the arrangements made with the former employees, and these obligations will be completely satisfied in less than 12 months. The recorded value of the ongoing lease obligations is based on the remaining lease term and payment amount, net of estimated sublease income, discounted to present value. Changes in subsequent periods resulting from a revision to either the timing or the amount of estimated cash flows over the future period are measured using the credit adjusted, risk-free rate that was used to measure the restructuring liabilities initially. We expect to incur insignificant additional costs over the remaining life of our lease obligations, but we do not anticipate further major restructuring activities in the near future. The following is a reconciliation of the beginning and ending balances of our restructuring liability: Severance and Related Benefits Facilities Total Balance at January 1, 2018 $ 62 $ 340 $ 402 Additions — — — Accretion of lease obligations — 6 6 Adjustment of lease obligations — (56 ) (56 ) Payments (62 ) (6 ) (68 ) Balance at March 31, 2018 $ — $ 284 $ 284 While the substantial doubt about our ability to continue as a going concern continued to exist at March 31, 2018 , we had $10.2 million in cash and no debt obligations at the end of the quarter. In addition, the restructuring actions taken in 2017 resulted in a decrease in total operating expenses, including restructuring charges, of approximately $1.9 million in the first quarter of 2018 compared to the first quarter of 2017 , and the lowest consumption of cash since the second quarter of 2015. Since the inception of our restructuring actions, we have achieved total operating cost reductions, including restructuring and asset impairment charges, of approximately $10.7 million compared to the same prior year period. Consequently, considering both quantitative and qualitative information, we continue to believe that the combination of our restructuring actions, current financial position, liquid resources, obligations due or anticipated within the next year, executive reorganization, and implementation of our sales channel strategy will return us to profitability in 2019 and effectively mitigates the substantial doubt about our ability to continue as a going concern.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2018
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 net realizable value, and consist of the following (in thousands): March 31, December 31, Raw materials $ 2,672 $ 3,316 Finished goods 6,645 6,598 Reserves for excess, obsolete, and slow moving inventories and valuation reserves $ (3,709 ) $ (4,196 ) Inventories, net $ 5,608 $ 5,718

Property and Equipment and Asse

Property and Equipment and Assets Held For Sale	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment and Assets Held For Sale	PROPERTY AND EQUIPMENT AND ASSETS HELD FOR SALE 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): March 31, December 31, Equipment (useful life 3 to 15 years) $ 1,577 $ 1,557 Tooling (useful life 2 to 5 years) 371 371 Vehicles (useful life 5 years) 47 47 Furniture and fixtures (useful life 5 years) 137 137 Computer software (useful life 3 years) 1,043 1,043 Leasehold improvements (the shorter of useful life or lease life) 210 201 Projects in progress 84 55 Property and equipment at cost 3,469 3,411 Less: accumulated depreciation (2,465 ) (2,314 ) Property and equipment, net $ 1,004 $ 1,097 Depreciation expense was $0.2 million for each of the three months ended March 31, 2018 and 2017 . As of March 31, 2018, we completed the sale of the equipment that we previously classified as held for sale. We received net proceeds from the sale of $0.2 million and recognized a gain on the sale of approximately $18 thousand . The gain on the sale is classified on our Condensed Consolidated Statements of Operations under the caption, “Other (income) expense.”

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES As a result of the operating loss incurred during each of the three months ended March 31, 2018 and 2017 , and after the application of the annual limitation set forth under Section 382 of the Internal Revenue Code (“IRC”), it was not necessary to record a provision for U.S. federal income tax or various states income taxes. The expense recorded for the three months ended March 31, 2017 represents the adjustment of the 2016 provision to the actual tax on the 2016 returns. At March 31, 2018 and December 31, 2017 , we had a full valuation allowance recorded against our deferred tax assets. The valuation allowance was recorded due to uncertainties related to our ability to realize the deferred tax assets, primarily consisting of certain net operating loss carry-forwards. The valuation allowance is based on management’s estimates of taxable income by jurisdiction and the periods over which the deferred tax assets will be recoverable. At December 31, 2017 , we had a net operating loss carry-forward of approximately $91.8 million for U.S. federal, state, and local income tax purposes. However, due to changes in our capital structure, approximately $37.3 million of the net operating loss carry-forward is available to offset future taxable income, and after the application of the limitations found under Section 382 of the IRC, we expect to have approximately $37.3 million of this amount available for use in 2018 . If not used, these carry-forwards will begin to expire in 2021 for federal and have begun to expire for state and local purposes. For a full discussion of the estimated restrictions on our utilization of net operating loss carry-forwards, please refer to Note 11, “Income Taxes,” included under Item 8 of our 2017 Annual Report.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
Stockholders' Equity	STOCKHOLDERS’ EQUITY Stock-based compensation Stock-based compensation expense is attributable to stock options and restricted stock unit awards. For all stock-based awards, we recognize expense using a straight-line amortization method. The following table summarizes stock-based compensation expense and the impact it had on operations for the periods presented (in thousands): Three months ended 2018 2017 Cost of sales $ 9 $ 18 Product development 25 13 Selling, general, and administrative 161 176 Total stock-based compensation $ 195 $ 207 The table above excludes approximately $0.3 million in stock-based compensation expense from prior periods that was reversed and included as a reduction to restructuring expenses due to the workforce reduction associated with our restructuring actions in the first quarter of 2017 . Total unearned stock-based compensation was $1.3 million at March 31, 2018 , compared to $1.1 million at March 31, 2017 . These costs will be charged to expense and amortized on a straight-line basis in future periods. The weighted average period over which the unearned compensation at March 31, 2018 is expected to be recognized is approximately 2.3 years. 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: Three months ended 2018 2017 Fair value of options issued $ 1.74 $ 2.79 Exercise price $ 2.46 $ 3.71 Expected life of options (in years) 5.8 5.8 Risk-free interest rate 2.3 % 2.1 % Expected volatility 84.3 % 92.2 % Dividend yield 0.0 % 0.0 % A summary of option activity under all plans for the three months ended March 31, 2018 is presented as follows: Number of Weighted Weighted Balance at December 31, 2017 248,512 $ 5.76 Granted 25,035 2.46 Exercised — — Canceled/forfeited (20,523 ) 10.09 Expired — — Balance at March 31, 2018 253,024 $ 5.08 7.8 Vested and expected to vest at March 31, 2018 232,906 $ 5.26 7.6 Exercisable at March 31, 2018 126,505 $ 6.95 6.5 Restricted stock units A summary of restricted stock unit activity under all plans for the three months ended March 31, 2018 is presented as follows: Restricted Weighted Weighted Balance at December 31, 2017 306,142 $ 3.37 Granted 421,514 2.48 Released (74,655 ) 4.10 Canceled/forfeited (11,571 ) 3.80 Balance at March 31, 2018 641,430 $ 2.69 2.7

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES 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. 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.

Basis of Presentation and Sum16

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The condensed consolidated financial statements (“financial statements”) include the accounts of the Company and its subsidiary Energy Focus Europe, Ltd. located in the United Kingdom, which is not active. Unless indicated otherwise, the information in the accompanying financial statements and Notes to the condensed consolidated financial statements relates to our continuing operations. We have prepared the accompanying financial data for the three months ended March 31, 2018 and 2017 pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The accompanying financial data and information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017 (“ 2017 Annual Report”). The Condensed Consolidated Balance Sheet as of December 31, 2017 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying financial statements contain all normal and recurring adjustments necessary to present fairly our Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017 , Condensed Consolidated Statements of Operations for the three months ended March 31, 2018 and 2017 , Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2018 and 2017 , Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2018 , and Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017 .
Use of estimates	Use of estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management’s best knowledge of current events and actions that may impact us in the future, actual results may vary from the estimates. Estimates include, but are not limited to, the establishment of reserves for accounts receivable, sales returns, inventory obsolescence and warranty claims; the useful lives of property and equipment; valuation allowance for net deferred taxes; the cost and offsetting income related to subleased property; 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.
Certain risks and concentrations	Certain risks and concentrations 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
Recent accounting pronouncements	Recent accounting pronouncements 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 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.
Revenue	Revenue On January 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , as amended by subsequently issued additional guidance (together, “ASC 606”) using the modified retrospective method. The adoption of ASC 606 did not have a material impact on our consolidated financial position or results of operations, as our revenue arrangements generally consist of a single performance obligation to transfer promised goods at a fixed price. Net sales include revenues from sales of products and shipping and handling charges, net of estimates for product returns. Revenue is measured at the amount of consideration we expect to received in exchange for the transferred products. We recognize revenue at the point in time when we transfer the promised products to the customer and the customer obtains control over the products. We recognize revenue for shipping and handling charges at the time the goods are shipped to the customer, and the costs of outbound freight are included in cost of sales, as we have elected the practical expedient included in ASC 606. We provide for product returns based on historical return rates. While we incur costs for sales commissions to our sales employees and outside agents, we recognize commission costs concurrent with the related revenue, as the amortization period is less than one year and we have elected the practical expedient included in ASC 606. We do not incur incremental costs to obtain contracts with our customers. Our product warranties are assurance-type warranties, which promise the customer that the products are as specified in the contract. Therefore, the product warranties are not a separate performance obligation and are accounted for as described below. Sales taxes assessed by governmental authorities are accounted for on a net basis and are excluded from net sales.
Accounts Receivable	Accounts Receivable Our trade accounts receivable consists of amounts billed to and currently due from customers. Credit is extended to customers based upon an evaluation of the customer’s financial condition and the amounts due are stated at their estimated net realizable value. We maintain an allowance for doubtful accounts receivable to provide for the estimated amount of receivables that will not be collected. The allowance is based on an assessment of customer creditworthiness and historical payment experience, the age of outstanding receivables, and performance guarantees to the extent applicable. Past due amounts are written off when our internal collection efforts have been unsuccessful. Our standard payment terms with customers are net 30 days, and we do not generally offer extended payment terms to our customers. Accordingly, we do not adjust trade accounts receivable for the effects of financing, as we expect the period between the transfer of product to the customer and the receipt of payment from the customer to be in line with our standard payment terms.
Net loss per share	Net loss per share Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of incremental shares upon the exercise of stock options or release of restricted stock units unless the effect would be anti-dilutive.
Product warranties	Product warranties Through March 31, 2016 , we warranted finished goods against defects in material and workmanship under normal use and service for periods generally between one and five years . Beginning April 1, 2016 , we warrant our commercial LED tubes, globes, and troffer luminaires for a period of ten years . Warranty settlement costs consist of actual amounts expensed for warranty, which are largely a result of the cost of replacement products provided to our customers. A liability for the estimated future costs under product warranties is maintained for products outstanding under warranty based on the actual claims incurred to date and the estimated nature, frequency, and costs of future claims. These estimates are inherently uncertain and changes to our historical or projected experience may cause material changes to our warranty reserves in the future. We continuously review the assumptions related to the adequacy of our warranty reserve, including product failure rates, and make adjustments to the existing warranty liability when there are changes to these estimates or the underlying replacement product costs, or the warranty period expires.

Basis of Presentation and Sum17

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Disaggregation of revenue	The following table provides a disaggregation of product net sales for the periods presented: Three months ended 2018 2017 Net sales: Commercial $ 2,205 $ 3,079 Military maritime 2,454 1,027 Total net sales $ 4,659 $ 4,106
Reconciliation of basic and diluted income (loss) per share	The following is a reconciliation of the numerator and denominator of the basic and diluted net loss per share computations for the periods presented below (in thousands): Three months ended 2018 2017 Numerator: Net loss $ (2,390 ) $ (4,522 ) Denominator: Basic weighted average common shares outstanding 11,900 11,718 Potential common shares from equity awards and warrants — — Diluted weighted average shares 11,900 11,718
Schedule of warranty activity	The following table summarizes warranty activity for the periods presented (in thousands): Three months ended 2018 2017 Balance at beginning of period $ 174 $ 331 Warranty accruals for current period sales 8 13 Adjustments to existing warranties (1 ) (50 ) In kind settlements made during the period (40 ) (36 ) Accrued warranty reserve $ 141 $ 258

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Mar. 31, 2018
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Reserve by Type of Cost	The following is a reconciliation of the beginning and ending balances of our restructuring liability: Severance and Related Benefits Facilities Total Balance at January 1, 2018 $ 62 $ 340 $ 402 Additions — — — Accretion of lease obligations — 6 6 Adjustment of lease obligations — (56 ) (56 ) Payments (62 ) (6 ) (68 ) Balance at March 31, 2018 $ — $ 284 $ 284

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2018
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 net realizable value, and consist of the following (in thousands): March 31, December 31, Raw materials $ 2,672 $ 3,316 Finished goods 6,645 6,598 Reserves for excess, obsolete, and slow moving inventories and valuation reserves $ (3,709 ) $ (4,196 ) Inventories, net $ 5,608 $ 5,718

Property and Equipment and As20

Property and Equipment and Assets Held For Sale (Tables)	3 Months Ended
	Mar. 31, 2018
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): March 31, December 31, Equipment (useful life 3 to 15 years) $ 1,577 $ 1,557 Tooling (useful life 2 to 5 years) 371 371 Vehicles (useful life 5 years) 47 47 Furniture and fixtures (useful life 5 years) 137 137 Computer software (useful life 3 years) 1,043 1,043 Leasehold improvements (the shorter of useful life or lease life) 210 201 Projects in progress 84 55 Property and equipment at cost 3,469 3,411 Less: accumulated depreciation (2,465 ) (2,314 ) Property and equipment, net $ 1,004 $ 1,097

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
Summary of stock-based compensation expense	The following table summarizes stock-based compensation expense and the impact it had on operations for the periods presented (in thousands): Three months ended 2018 2017 Cost of sales $ 9 $ 18 Product development 25 13 Selling, general, and administrative 161 176 Total stock-based compensation $ 195 $ 207
Schedule of 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: Three months ended 2018 2017 Fair value of options issued $ 1.74 $ 2.79 Exercise price $ 2.46 $ 3.71 Expected life of options (in years) 5.8 5.8 Risk-free interest rate 2.3 % 2.1 % Expected volatility 84.3 % 92.2 % Dividend yield 0.0 % 0.0 %
Summary of option activity	A summary of option activity under all plans for the three months ended March 31, 2018 is presented as follows: Number of Weighted Weighted Balance at December 31, 2017 248,512 $ 5.76 Granted 25,035 2.46 Exercised — — Canceled/forfeited (20,523 ) 10.09 Expired — — Balance at March 31, 2018 253,024 $ 5.08 7.8 Vested and expected to vest at March 31, 2018 232,906 $ 5.26 7.6 Exercisable at March 31, 2018 126,505 $ 6.95 6.5 Restricted stock units A summary of restricted stock unit activity under all plans for the three months ended March 31, 2018 is presented as follows: Restricted Weighted Weighted Balance at December 31, 2017 306,142 $ 3.37 Granted 421,514 2.48 Released (74,655 ) 4.10 Canceled/forfeited (11,571 ) 3.80 Balance at March 31, 2018 641,430 $ 2.69 2.7

Basis of Presentation and Sum22

Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - shares shares in Thousands	Apr. 01, 2016	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Concentration Risk [Line Items]
Securities excluded from net loss per share calculation (in shares)		90	137
Warranty service periods	10 years
Minimum
Concentration Risk [Line Items]
Warranty service periods		1 year
Maximum
Concentration Risk [Line Items]
Warranty service periods		5 years
Geographic concentration risk | United States
Concentration Risk [Line Items]
Concentration risk (less than for one percent)		98.00%		98.00%
Revenue | Geographic concentration risk | Countries outside of the United States
Concentration Risk [Line Items]
Concentration risk (less than for one percent)		1.00%	2.00%
Commercial Lighting Retrofit Company | Revenue | Customer concentration risk
Concentration Risk [Line Items]
Concentration risk (less than for one percent)		10.00%
Commercial Lighting Retrofit Company | Accounts receivable | Customer concentration risk
Concentration Risk [Line Items]
Concentration risk (less than for one percent)		13.00%		17.00%
Distributor To The U.S. Navy | Revenue | Customer concentration risk
Concentration Risk [Line Items]
Concentration risk (less than for one percent)		46.00%	14.00%
Distributor To The U.S. Navy | Accounts receivable | Customer concentration risk
Concentration Risk [Line Items]
Concentration risk (less than for one percent)		47.00%		39.00%
Global Healthcare Systems, Northeast Ohio | Revenue | Customer concentration risk
Concentration Risk [Line Items]
Concentration risk (less than for one percent)			22.00%
Global Healthcare Systems, Northeast Ohio | Accounts receivable | Customer concentration risk
Concentration Risk [Line Items]
Concentration risk (less than for one percent)		10.00%		21.00%
Huntington Ingalls, Incorporated | Revenue | Customer concentration risk
Concentration Risk [Line Items]
Concentration risk (less than for one percent)			10.00%
U.S. Navy | Revenue | Customer concentration risk
Concentration Risk [Line Items]
Concentration risk (less than for one percent)		50.00%	24.00%

Basis of Presentation and Sum23

Basis of Presentation and Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue from External Customer [Line Items]
Net sales	$ 4,659	$ 4,106
Commercial
Revenue from External Customer [Line Items]
Net sales	2,205	3,079
Military maritime
Revenue from External Customer [Line Items]
Net sales	$ 2,454	$ 1,027

Basis of Presentation and Sum24

Basis of Presentation and Summary of Significant Accounting Policies - Reconciliation of Basic and Diluted Loss per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Numerator:
Net loss	$ (2,390)	$ (4,522)
Denominator:
Basic weighted average common shares outstanding (in shares)	11,900	11,718
Potential common shares from equity awards and warrants (in shares)	0	0
Diluted weighted average shares (in shares)	11,900	11,718

Basis of Presentation and Sum25

Basis of Presentation and Summary of Significant Accounting Policies - Warranty Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at beginning of period	$ 174	$ 331
Accruals for warranties issued	8	13
Adjustments to existing warranties	(1)	(50)
In kind settlements made during the period	(40)	(36)
Accrued warranty reserve	$ 141	$ 258

Restructuring - Narrative (Deta

Restructuring - Narrative (Details) - USD ($)	3 Months Ended		15 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring	$ (50,000)	$ 674,000
Restructuring and related cost, obligations to be satisfied, term	12 months
Cash and cash equivalents	$ 10,172,000	14,970,000	$ 10,172,000	$ 10,761,000	$ 16,629,000
Debt obligations	0		0
Impact of restructuring activities on operating expenses, excluding restructuring and asset impairment charges	$ (1,900,000)
Severance and Related Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring		643,000
Facilities
Restructuring Cost and Reserve [Line Items]
Restructuring		19,000
Other
Restructuring Cost and Reserve [Line Items]
Restructuring		$ 11,000
Maximum
Restructuring Cost and Reserve [Line Items]
Impact of restructuring activities on operating expenses, excluding restructuring and asset impairment charges			$ (10,700,000)

Restructuring - Reconciliation

Restructuring - Reconciliation of Restructuring Liability (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Restructuring Reserve [Roll Forward]
Beginning balance	$ 402
Additions	0
Accretion of lease obligations	6
Adjustment of lease obligations	(56)
Payments	(68)
Ending balance	284
Severance and Related Benefits
Restructuring Reserve [Roll Forward]
Beginning balance	62
Additions	0
Accretion of lease obligations	0
Adjustment of lease obligations	0
Payments	(62)
Ending balance	0
Facilities
Restructuring Reserve [Roll Forward]
Beginning balance	340
Additions	0
Accretion of lease obligations	6
Adjustment of lease obligations	(56)
Payments	(6)
Ending balance	$ 284

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 2,672	$ 3,316
Finished goods	6,645	6,598
Reserves for excess, obsolete, and slow moving inventories and valuation reserves	(3,709)	(4,196)
Inventories, net	$ 5,608	$ 5,718

Property and Equipment and As29

Property and Equipment and Assets Held For Sale (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment at cost	$ 3,469		$ 3,411
Less: accumulated depreciation	(2,465)		(2,314)
Property and equipment, net	1,004		1,097
Depreciation	151	$ 177
Equipment
Property, Plant and Equipment [Line Items]
Property and equipment at cost	$ 1,577		1,557
Equipment | Minimum
Property, Plant and Equipment [Line Items]
Useful life	3 years
Equipment | Maximum
Property, Plant and Equipment [Line Items]
Useful life	15 years
Tooling
Property, Plant and Equipment [Line Items]
Property and equipment at cost	$ 371		371
Tooling | Minimum
Property, Plant and Equipment [Line Items]
Useful life	2 years
Tooling | Maximum
Property, Plant and Equipment [Line Items]
Useful life	5 years
Vehicles
Property, Plant and Equipment [Line Items]
Useful life	5 years
Property and equipment at cost	$ 47		47
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Useful life	5 years
Property and equipment at cost	$ 137		137
Computer software
Property, Plant and Equipment [Line Items]
Useful life	3 years
Property and equipment at cost	$ 1,043		1,043
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment at cost	210		201
Projects in progress
Property, Plant and Equipment [Line Items]
Property and equipment at cost	$ 84		$ 55

Property and Equipment and As30

Property and Equipment and Assets Held For Sale Proceeds From Sale (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Property, Plant and Equipment [Line Items]
(Gain) loss on dispositions of property and equipment	$ 19	$ (8)
Equipment
Property, Plant and Equipment [Line Items]
Proceeds from sale of equipment	200
(Gain) loss on dispositions of property and equipment	$ 18

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - U.S. Federal, State and Local tax authorities - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Operating Loss Carryforwards [Line Items]
Operating loss carry-forward		$ 91.8
Operating loss carry-forward available	$ 37.3	$ 37.3

Stockholders' Equity - Stock-Ba

Stockholders' Equity - Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 195	$ 207
Stock-based compensation reversal	(270)
Unearned stock-based compensation	$ 1,300	1,100
Unearned compensation expected to be recognized, period	2 years 3 months 18 days
Cost of sales
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 9	18
Product development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	25	13
Selling, general, and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 161	$ 176

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Options and a Summary of Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
Fair value of options issued (in dollars per share)	$ 1.74	$ 2.79
Exercise price (in dollars per share)	$ 2.46	$ 3.71
Expected life of options (in years)	5 years 9 months 18 days	5 years 9 months 18 days
Risk-free interest rate	2.30%	2.10%
Expected volatility	84.30%	92.20%
Dividend yield	0.00%	0.00%
Number of Options
Outstanding at beginning of period (in shares)	248,512
Granted (in shares)	25,035
Exercised (in shares)	0
Canceled/forfeited (in shares)	(20,523)
Expired (in shares)	0
Outstanding at end of period (in shares)	253,024
Vested and expected to vest at period end (in shares)	232,906
Exercisable at period end (in shares)	126,505
Weighted Average Exercise Price Per Share
Outstanding at beginning of period (in dollars per share)	$ 5.76
Granted (in dollars per share)	2.46
Exercised (in dollars per share)	0
Canceled/forfeited (in dollars per share)	10.09
Expired (in dollars per share)	0
Outstanding at end of period (in dollars per share)	5.08
Vested and expected to vest at period end (in dollars per share)	5.26
Exercisable at period end (in dollars per share)	$ 6.95
Weighted Average Remaining Contractual Life (in years)
Outstanding at end of period	7 years 9 months 18 days
Vested and expected to vest at period end	7 years 7 months 6 days
Exercisable at period end	6 years 6 months

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock Units (Details)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Restricted Stock Units
Outstanding at beginning of period (in shares) | shares	248,512
Granted (in shares) | shares	25,035
Canceled/forfeited (in shares) | shares	(20,523)
Outstanding at end of period (in shares) | shares	253,024
Weighted Average Grant Date Fair Value
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 5.76
Granted (in dollars per share) | $ / shares	2.46
Canceled/forfeited (in dollars per share) | $ / shares	10.09
Outstanding at end of period (in dollars per share) | $ / shares	$ 5.08
Weighted Average Remaining Contractual Life (in years)
Outstanding at end of period	7 years 9 months 18 days
Restricted Stock Units
Restricted Stock Units
Outstanding at beginning of period (in shares) | shares	306,142
Granted (in shares) | shares	421,514
Released (in shares) | shares	(74,655)
Canceled/forfeited (in shares) | shares	(11,571)
Outstanding at end of period (in shares) | shares	641,430
Weighted Average Grant Date Fair Value
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 3.37
Granted (in dollars per share) | $ / shares	2.48
Released (in dollars per share) | $ / shares	4.10
Canceled/forfeited (in dollars per share) | $ / shares	3.80
Outstanding at end of period (in dollars per share) | $ / shares	$ 2.69
Weighted Average Remaining Contractual Life (in years)
Outstanding at end of period	2 years 8 months 12 days

Uncategorized Items - efoi-2018

Label	Element	Value
Cash and Cash Equivalents, at Carrying Value	us-gaap_CashAndCashEquivalentsAtCarryingValue	$ 14,628,000
Cash and Cash Equivalents, at Carrying Value	us-gaap_CashAndCashEquivalentsAtCarryingValue	9,830,000
Restricted Cash	us-gaap_RestrictedCash	342,000
Restricted Cash	us-gaap_RestrictedCash	$ 342,000