Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 04, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ENERGY FOCUS, INC/DE | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 10,004,532 | ||
Entity Public Float | $25,100,000 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 924168 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||
Cash and cash equivalents | $7,531,000 | $2,860,000 |
Trade accounts receivable less allowances of $323 and $84, respectively | 3,113,000 | 3,348,000 |
Retainage receivable | 0 | 577,000 |
Inventories, net | 7,283,000 | 2,510,000 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 145,000 | |
Prepaid and other current assets | 1,002,000 | 1,207,000 |
Assets held for sale | 130,000 | |
Total current assets | 18,929,000 | 10,777,000 |
Property and equipment, net | 479,000 | 536,000 |
Intangible assets, net | 55,000 | |
Collateralized assets | 1,000,000 | 1,000,000 |
Other assets | 88,000 | 440,000 |
Total assets | 19,496,000 | 12,808,000 |
Current liabilities: | ||
Accounts payable | 7,601,000 | 3,707,000 |
Accrued liabilities | 1,397,000 | 1,218,000 |
Deferred revenue | 133,000 | 71,000 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 23,000 | 764,000 |
Credit line borrowings | 453,000 | |
Current maturities of long-term debt | 0 | 59,000 |
Total current liabilities | 9,607,000 | 5,819,000 |
Other liabilities | 46,000 | 54,000 |
Long-term debt, net of current maturities | 70,000 | 4,011,000 |
Total liabilities | 9,723,000 | 9,884,000 |
Preferred stock, par value $0.0001 per share: | ||
Authorized: 2,000,000 shares in 2014 and 2013 Issued and outstanding: no shares in 2014 and 2013 | 0 | 0 |
Common stock, par value $0.0001 per share: | ||
Authorized: 15,000,000 shares in 2014 and 2013 Issued and outstanding: 9,423,975 at December 31, 2014 and 5,142,194 at December 31, 2013 (post-reverse split) | 1,000 | 1,000 |
Additional paid-in capital | 98,133,000 | 85,446,000 |
Accumulated other comprehensive income | 469,000 | 462,000 |
Accumulated deficit | -88,830,000 | -82,985,000 |
Total stockholders' equity | 9,773,000 | 2,924,000 |
Total liabilities and stockholders' equity | $19,496,000 | $12,808,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Trade accounts receivable, allowances (in Dollars) | $323 | $84 |
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
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) | $0.00 | $0.00 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 9,423,975 | 5,142,194 |
Common stock, shares outstanding | 9,423,975 | 5,142,194 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales | $28,962 | $21,533 | $23,375 |
Cost of sales | 19,594 | 16,954 | 19,403 |
Gross profit | 9,368 | 4,579 | 3,972 |
Operating expenses: | |||
Research and development | 1,035 | 597 | 368 |
Selling, general, and administrative | 10,910 | 9,714 | 8,944 |
Loss on impairment | 933 | 672 | |
Change in estimate of contingent liabilities | 12 | -102 | |
Restructuring | 80 | ||
Total operating expenses | 11,945 | 11,336 | 9,882 |
Loss from operations | -2,577 | -6,757 | -5,910 |
Other income (expense): | |||
Settlement of acquisition obligations | 892 | ||
Interest income | 2 | ||
Interest expense | -2,689 | -842 | -511 |
Other expenses | -531 | -240 | -157 |
Loss from continuing operations before income taxes | -5,797 | -6,947 | -6,576 |
Benefit from income taxes | 2 | ||
Net loss from continuing operations | -5,795 | -6,947 | -6,576 |
Discontinued operations: | |||
(Loss) income from discontinued operations | -20 | 672 | 867 |
(Loss) gain on sale of discontinued operations | -30 | 3,915 | |
(Loss) income from discontinued operations before income taxes | -50 | 4,587 | 867 |
Provision for income taxes | -1 | ||
Net (loss) income from discontinued operations | -50 | 4,586 | 867 |
Net loss | ($5,845) | ($2,361) | ($5,709) |
Basic and diluted | |||
From continung operations (in Dollars per share) | ($0.74) | ($1.45) | ($1.59) |
From discontinued operations (in Dollars per share) | ($0.01) | $0.96 | $0.21 |
Total (in Dollars per share) | ($0.75) | ($0.49) | ($1.38) |
Weighted average common shares outstanding: | |||
Basic and diluted (in Shares) | 7,816 | 4,779 | 4,132 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net loss | ($5,845) | ($2,361) | ($5,709) |
Foreign currency translation adjustments | 7 | 2 | 40 |
Comprehensive loss | ($5,838) | ($2,359) | ($5,669) |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total |
In Thousands | |||||
Balances at Dec. 31, 2011 | $75,963 | $420 | ($74,915) | $1,468 | |
Balances (in Shares) at Dec. 31, 2011 | 2,491 | ||||
Issuance of common stock | 4,801 | 4,801 | |||
Issuance of common stock (in Shares) | 1,960 | ||||
Issuance of common stock under employee stock option and stock purchase plans | 25 | 25 | |||
Issuance of common stock under employee stock option and stock purchase plans (in Shares) | 19 | ||||
Stock-based compensation | 200 | 200 | |||
Foreign currency translation adjustment | 40 | 40 | |||
Net loss | -5,709 | -5,709 | |||
Balances at Dec. 31, 2012 | 80,989 | 460 | -80,624 | 825 | |
Balances (in Shares) at Dec. 31, 2012 | 4,470 | ||||
Issuance of common stock | 2 | 2 | |||
Issuance of common stock under employee stock option and stock purchase plans | 45 | 45 | |||
Issuance of common stock under employee stock option and stock purchase plans (in Shares) | 20 | ||||
Convertible debt issued for financing | 2,697 | 2,697 | |||
Issuance of common stock for conversion of convertible debt | 1 | 1,500 | 1,501 | ||
Issuance of common stock for conversion of convertible debt (in Shares) | 652 | ||||
Stock-based compensation | 202 | 202 | |||
Warrants issued | 11 | 11 | |||
Foreign currency translation adjustment | 2 | 2 | |||
Net loss | -2,361 | -2,361 | |||
Balances at Dec. 31, 2013 | 1 | 85,446 | 462 | -82,985 | 2,924 |
Balances (in Shares) at Dec. 31, 2013 | 5,142 | ||||
Issuance of common stock | 5,090 | 5,090 | |||
Issuance of common stock (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 | -5,845 | -5,845 | |||
Balances at Dec. 31, 2014 | $1 | $98,133 | $469 | ($88,830) | $9,773 |
Balances (in Shares) at Dec. 31, 2014 | 9,424 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net loss | ($5,845) | ($2,361) | ($5,709) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Loss on impairment | 933 | 672 | |
Depreciation | 226 | 660 | 637 |
Stock-based compensation | 532 | 201 | 200 |
Settlement of acquisition obligations | -892 | ||
Provision for doubtful accounts receivable | 37 | -24 | 147 |
Amortization of intangible assets | 55 | 228 | 419 |
Amortization of discounts on long-term borrowings and acquisition related liabilities | 2,815 | 443 | 236 |
Amortization of loan origination fees | 140 | 159 | 113 |
Change in estimate of contingent liabilities | 12 | -102 | |
Loss (gain) on sale of discontinued operations | 30 | -3,915 | |
Loss (gain) on dispositions of property and equipment | 51 | 6 | -3 |
Change in operating assets and liabilities: | |||
Accounts receivable, inventories, and other assets | -2,630 | -808 | -3,158 |
Accounts payable and accrued liabilities | 3,843 | -1,477 | -107 |
Deferred revenue | -679 | -380 | -311 |
Total adjustments | 4,420 | -4,854 | -1,257 |
Net cash used in operating activities | -1,425 | -7,215 | -6,966 |
Cash flows from investing activities: | |||
Net (payments) proceeds from the sale of discontinued operations | -30 | 4,816 | |
Proceeds from the sale of property and equipment | 130 | 3 | |
Acquisitions of property and equipment | -221 | -213 | -332 |
Net cash (used in) provided by investing activities | -121 | 4,603 | -329 |
Cash flows from financing activities: | |||
Proceeds from issuances of common stock, net | 5,952 | 4,801 | |
Proceeds from exercise of stock options and purchases through employee stock purchase plan | 58 | 48 | 25 |
Proceeds from other borrowings | 6,124 | 1,500 | |
Payments on other borrowings | -223 | -304 | -886 |
Net borrowings (repayments) on credit line borrowings | 453 | -1,590 | 889 |
Net cash provided by financing activities | 6,240 | 4,278 | 6,329 |
Effect of exchange rate on cash and cash equivalents | -23 | 13 | 11 |
Net increase (decrease) in cash and cash equivalents | 4,671 | 1,679 | -955 |
Cash and cash equivalents, beginning of year | 2,860 | 1,181 | 2,136 |
Cash and cash equivalents, end of year | 7,531 | 2,860 | 1,181 |
Classification of cash and cash equivalents: | |||
Cash and cash equivalents | 7,126 | 2,266 | 929 |
Restricted cash held | 105 | 94 | 252 |
Cash held in escrow | 300 | 500 | |
Cash and cash equivalents, end of year | 7,531 | 2,860 | 1,181 |
Supplemental information: | |||
Cash paid in year for interest | 305 | 482 | 186 |
Non-cash investing and financing activities: | |||
Fully depreciated assets disposed of | 1,265 | 2,670 | 2 |
Non-cash charge to write-off of remaining unamortized discount on convertible debt | 2,287 | 204 | |
Conversion of subordinated convertible debt | 6,145 | 1,500 | |
Customer-Related Intangible Assets [Member] | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Amortization of intangible assets | $55 | $228 | $419 |
Note_1_Nature_of_Operations
Note 1 - Nature of Operations | 12 Months Ended | ||
Dec. 31, 2014 | |||
Disclosure Text Block [Abstract] | |||
Nature of Operations [Text Block] | NOTE 1. NATURE OF OPERATIONS | ||
Energy Focus, Inc. and its subsidiaries engage in the design, development, manufacturing, marketing, and installation of energy-efficient lighting systems and solutions where we have historically served two segments: | |||
● | In our products segment, we provide military, general commercial and industrial energy-efficient lighting offerings. In 2013, we sold and discontinued our pool products business, and are focusing our resources solely on our LED lighting retrofit business. | ||
● | In our solutions segment, we provide turnkey, high-quality, energy-efficient lighting application alternatives, primarily to the existing public-sector building market. During the third quarter of 2014, we began shifting our focus away from the turnkey solutions business to align our resources with developing and selling our LED products. | ||
Additionally, research and development remains a key focus for us. Our research and development team is dedicated to developing and designing leading-edge technology LED lighting products, and we have curtailed our efforts on bidding on research contracts and grants. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Significant Accounting Policies [Text Block] | NOTE 2. 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. | |||||||||||||
Reverse stock split | |||||||||||||
At our annual meeting of stockholders held on July 15, 2014, the stockholders approved an amendment to the Certificate of Incorporation, as described in our proxy statement dated June 26, 2014, to effect a reverse stock split of our outstanding common stock at a ratio ranging from 1 -for- 7 to 1 -for- 15, with such ratio determined by our Board of Directors in its discretion without further approval from the stockholders. The Board of Directors subsequently authorized proceeding with the reverse stock split at a ratio of 1 -for- 10. On July 16, 2014, we filed a Certificate of Amendment to our Certificate of Incorporation effecting the reverse stock split effective at 5pm ET on July 16, 2014. Immediately after the July 16, 2014 effective date, we had 8,024,813 shares of common stock issued and outstanding. All share and per share amounts have been retroactively restated to reflect the reverse split. Effective at the same time as the reverse split, the authorized number of shares of our common stock was proportionately decreased from 150,000,000 shares to 15,000,000 shares. The par value remained the same. | |||||||||||||
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; revenues recognized on a percentage-of-completion basis; and stock-based compensation. In addition, estimates and assumptions associated with the determination of the fair value of financial instruments and evaluation of goodwill and 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 financial statements include the accounts of the Company and its subsidiaries, Energy Focus LED Solutions, LLC (“EFLS”) in Solon, Ohio, and Crescent Lighting Limited (“CLL”) located in the United Kingdom. All significant inter-company balances and transactions have been eliminated. | |||||||||||||
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 our products segment business 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 and profits from our solutions segment are generally recognized by applying percentage-of-completion for the period to the estimated profits for the respective contracts. Percentage-of-completion is determined by relating the actual cost of the work performed to date to the current estimated total cost of the respective contracts. When the estimate on a contract indicates a loss, our policy is to record the entire loss during the accounting period in which it is estimable. In the ordinary course of business, at a minimum on a quarterly basis, we prepare updated estimates of the total forecasted revenue, cost and profit or loss for each contract. The cumulative effect of revisions in estimates of the total forecasted revenue and costs during the course of the work is reflected in the accounting period in which the facts that caused the revision become known. The financial impact of these revisions to any one contract is a function of both the amount of the revision and the percentage-of-completion of the contract. Historically, revenues from our solutions segment were generally from larger contracts that ranged from three to eighteen months in duration. | |||||||||||||
In accordance with normal practices in the industry, we include in current assets and current liabilities amounts related to contracts realizable and payable. Billings in excess of costs and estimated earnings on uncompleted contracts represent the excess of contract billings to date over the amount of contract costs and profits (or contract revenue) recognized to date on a percentage-of-completion basis. Costs and estimated earnings in excess of billings on uncompleted contracts represent the excess of contract costs and profits (or contract revenue) recognized to date on the percentage-of-completion basis over the amount of contract billings to date on the remaining contracts. See Note 8, Contracts in progress, for additional information. | |||||||||||||
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 and 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, 2014, we had $7.5 million in cash on deposit with financial institutions located in the United States, of which $105 thousand 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. Additionally, our cash balance at December 31, 2014 included $300 thousand of the purchase price from the sale of our pool products business in escrow to secure our obligations of the sale, subject to the resolution of outstanding buyer claims. | |||||||||||||
At December 31, 2014, we had cash of $4 thousand on deposit with a European bank in the United Kingdom. | |||||||||||||
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. Charges to cost of sales for excess and obsolete inventories from continuing operations amounted to $95 thousand, $109 thousand and $111 thousand in 2014, 2013 and 2012, respectively. | |||||||||||||
Accounts receivable | |||||||||||||
Our customers are concentrated in the United States and Europe. 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. | |||||||||||||
Retainage receivable | |||||||||||||
Our solutions segment sales are normally subject to a holdback of a percentage of the sale as retainage. This holdback is recorded in our Consolidated Balance Sheets as “Retainage receivable.” Retainage is a portion of the total bid price of a project held back by a customer until the project is complete and functioning satisfactorily according to the contract terms. Retainage percentages typically range from 5 percent to 10 percent and are collected anywhere from three to eighteen months from the inception of the project. At December 31, 2014 we had no retainage receivable outstanding from our customers. For the year ended December 31, 2013, we had retainage receivable from our customers totaling $577 thousand. | |||||||||||||
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, 2014 and 2013, 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, 2014, we had net operating loss carry-forwards of approximately $75.4 million for federal, state, and local income tax purposes. However, due to changes in our capital structure, approximately $23.9 million of this amount is available after the application of IRC Section 382 limitations. 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 14, Income Taxes, for additional information. | |||||||||||||
Collateralized assets | |||||||||||||
During the fourth quarter of 2014, $1.0 million of cash collateral related to our surety bonding program associated with EFLS was refunded to us by the surety carrier, as it was determined that the collateral was no longer needed. | |||||||||||||
Fair value measurements | |||||||||||||
The carrying amounts of certain financial instruments including cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to their short maturities. Based on borrowing rates currently available to us for loans with similar terms, the carrying value of long-term debt obligations also approximates fair value. | |||||||||||||
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 their estimated useful lives of the related assets (generally two to fifteen 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 and assets held for sale, included in Item 8 for additional information. | |||||||||||||
We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, our long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized, on a straight-line basis or other method which best approximates cash flows, over their useful lives, ranging from 5 to 10 years. Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business acquisition. We evaluate goodwill for impairment using the projected present value of future cash flows of the reporting unit, taking into account historical performance. A significant amount of judgment is required in estimating fair value of the reporting unit. Based on historical losses incurred, in 2012 it was determined that goodwill was impaired, and we wrote off the remaining balance of $672 thousand as of December 31, 2012, which resulted from our 2009 acquisition of EFLS. Additionally, in conjunction with the settlement agreement between us and the former owners of EFLS, we agreed to discontinue the use of the name “Stones River Companies, LLC” and various derivatives including SRC. Therefore, at June 30, 2013, the remaining unamortized balance of Tradenames of $325 thousand was written off. Refer to Note 6, Intangible assets, and Note 11, Settlement of acquisition obligations, included in Item 8 for additional information. | |||||||||||||
Long-lived assets, other than goodwill, 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. On December 31, 2013, we recorded an impairment charge of $608 thousand for assets that were held for sale at December 31, 2013. These assets were subsequently sold in the first quarter of 2014 for $130 thousand, which was the carrying value after the impairment charge. See Note 5, Property and equipment and assets held for sale, included in Item 8 for additional information. | |||||||||||||
Certain risks and concentrations | |||||||||||||
We sell our products and solutions services 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. | |||||||||||||
At December 31, 2014 and 2013, five customers accounted for 93 percent and 58 percent, respectively, of net trade receivables, including retainage receivable. For 2014, 2013 and 2012, the top four customers accounted for 67.1 percent, 36 percent, and 42 percent of net sales, respectively. | |||||||||||||
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. | |||||||||||||
Research and development | |||||||||||||
Research and 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 per share | |||||||||||||
Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted loss per share is computed giving effect to all dilutive potential common shares that were 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. | |||||||||||||
A reconciliation of basic and diluted loss per share is provided as follows (in thousands, except per share amounts): | |||||||||||||
For the year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic and diluted loss per share: | |||||||||||||
Net loss | $ | (5,845 | ) | $ | (2,361 | ) | $ | (5,709 | ) | ||||
Weighted average shares outstanding | 7,816 | 4,779 | 4,132 | ||||||||||
Basic and diluted loss per share | $ | (0.75 | ) | $ | (0.49 | ) | $ | (1.38 | ) | ||||
Options, warrants and convertible securities representing approximately 818,832, 1,955,809, and 1,138,280 shares of common stock were excluded from the loss per share calculation for years ended December 31, 2014, 2013, and 2012, 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 13, 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 | |||||||||||||
Our international subsidiary uses its local currency as its functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date and income and expense accounts are translated at average exchange rates during the year. Resulting translation adjustments are recorded directly to “Accumulated other comprehensive income” within the Consolidated Statements of Stockholders’ Equity. Foreign currency transaction gains and losses are included as a component of “Other (expense)/income.” Gains and losses from foreign currency translation are included as a separate component of “Other comprehensive loss” within the Consolidated Statements of Comprehensive Loss. | |||||||||||||
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 $292 thousand, $112 thousand, and $164 thousand for the years ended December 31, 2014, 2013 and 2012, 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 five years for products and labor. Settlement costs consist of actual amounts expensed for warranty services which are largely a result of third-party service calls, and the costs 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, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at the beginning of the year | $ | 75 | $ | 159 | |||||||||
Accruals for warranties issued | 183 | 60 | |||||||||||
Settlements made during the year (in cash or in kind) | (70 | ) | (144 | ) | |||||||||
Accrued warranty expense | $ | 188 | $ | 75 | |||||||||
Recent accounting standards and pronouncements | |||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which amends ASC 740, Income Taxes. The amendments provide guidance on the financial statement presentation of an unrecognized tax benefit, as either a reduction of a deferred tax asset or as a liability, when a net operating loss carryforward, similar tax loss, or a tax credit carryforward exists. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and may be applied on either a prospective or retrospective basis. The adoption of this ASU did not materially impact our disclosures. | |||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue Recognition - Revenue from Contracts with Customers, which is a comprehensive revenue recognition standard that will supersede nearly all of the existing revenue recognition guidance under U.S. GAAP. The standard is effective for interim and annual periods beginning after December 15, 2016, and either full retrospective adoption or modified retrospective adoption is permitted. We are in the process of evaluating the impact of the standard. |
Note_3_Discontinued_Operations
Note 3 - Discontinued Operations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 3. DISCONTINUED OPERATIONS | ||||||||
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, 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. For more information on the status of the remaining cash in escrow, please refer to Note 17, Legal matters, included in this Annual Report. | |||||||||
In connection with the sale, we recognized a loss of $30 thousand, and a gain of $3.9 million, net of transition costs, for the years ended December 31, 2014 and 2013, respectively, calculated as follows (in thousands): | |||||||||
For the year ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Proceeds from sale | $ | - | $ | 5,200 | |||||
Less: | |||||||||
Trade accounts receivable, net | - | 554 | |||||||
Inventories, net | - | 721 | |||||||
Prepaid and other current assets | - | 109 | |||||||
Property and equipment, net | - | 73 | |||||||
Transaction costs | 30 | 395 | |||||||
Plus: | |||||||||
Accounts payable | - | 269 | |||||||
Accrued liabilities | - | 298 | |||||||
(Loss) gain on sale of discontinued operations | $ | (30 | ) | $ | 3,915 | ||||
As a result of selling the pool products business, 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” for the years presented in this Annual Report. There were no revenues from discontinued operations for the year ended December 31, 2014, and there were revenues of $4.5 million and $6.5 million for the years ended December 31, 2013 and 2012, respectively. We recognized expenses of $20 thousand, $3.8 million, and $5.6 million for the years ended December 31, 2014, 2013, and 2012, respectively. |
Note_4_Inventories
Note 4 - Inventories | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Inventory Disclosure [Abstract] | |||||||||||
Inventory Disclosure [Text Block] | NOTE 4. 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, net of reserves (in thousands): | |||||||||||
At December 31, | |||||||||||
2014 | 2013 | ||||||||||
Raw materials | $ | 3,183 | $ | 1,611 | |||||||
Finished goods | 4,100 | 899 | |||||||||
Inventories, net | $ | 7,283 | $ | 2,510 | |||||||
Note_5_Property_and_Equipment_
Note 5 - Property and Equipment and Assets Held for Sale | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | NOTE 5. 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): | |||||||||
At December 31, | |||||||||
2014 | 2013 | ||||||||
Equipment (useful life 3 - 15 years) | $ | 1,495 | $ | 2,080 | |||||
Tooling (useful life 2 - 5 years) | 865 | 769 | |||||||
Furniture and fixtures (useful life 5 years) | 92 | 115 | |||||||
Computer software (useful life 3 years) | 452 | 521 | |||||||
Leasehold improvements (the shorter of useful life or lease life) | 572 | 589 | |||||||
Construction in progress | 18 | 9 | |||||||
Property and equipment at cost | 3,494 | 4,083 | |||||||
Less: accumulated depreciation | (3,015 | ) | (3,547 | ) | |||||
Property and equipment, net | $ | 479 | $ | 536 | |||||
Depreciation expense was $226 thousand, $660 thousand and $637 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
Assets held for sale | |||||||||
As a result of selling our pool products business in November 2013, and the closing of our facilities in Pleasanton, California, we performed an evaluation of property and equipment located in California. In performing this evaluation, we sought out a buyer for the assets which we no longer had use, and recorded an impairment charge of $608 thousand in 2013. The impairment charge represented the difference between the fair value and the carrying value of the asset group. These assets were reclassified on the Consolidated Balance Sheets under the caption “Assets held for sale” at December 31, 2013, and were subsequently sold in 2014 for $130 thousand; the carrying value of the assets after the impairment charge. |
Note_6_Intangible_Assets
Note 6 - Intangible Assets | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 6. INTANGIBLE ASSETS | ||||||||||||||
The following table summarizes information related to the net carrying value of intangible assets (in thousands): | |||||||||||||||
Amortization | At December 31, | ||||||||||||||
Life (in years) | 2014 | 2013 | |||||||||||||
Customer relationships | 5 | $ | - | $ | 55 | ||||||||||
Amortization expense for intangible assets subject to amortization was $55 thousand, $228 thousand, and $419 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. Customer relationships are amortized over their expected useful lives on an accelerated method that approximates the cash flows associated with those relationships. At December 31, 2014, the Customer relationships were fully amortized. |
Note_7_Accrued_Liabilities
Note 7 - Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | NOTE 7. ACCRUED LIABILITIES: | ||||||||
Accrued current liabilities consisted of the following (in thousands): | |||||||||
At December 31, | |||||||||
2014 | 2013 | ||||||||
Accrued sales commissions and incentives | $ | 245 | $ | 280 | |||||
Accrued warranty expense | 188 | 75 | |||||||
Accrued legal and professional fees | 132 | 50 | |||||||
Accrued payroll and related benefits | 541 | 299 | |||||||
Separation accrual | 251 | 247 | |||||||
Accrued taxes | 9 | 137 | |||||||
Accrued other expenses | 31 | 130 | |||||||
Total accrued liabilities | $ | 1,397 | $ | 1,218 | |||||
Note_8_Contracts_in_Progress
Note 8 - Contracts in Progress | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Contracts In Progress [Abstract] | |||||||||
Contracts In Progress [Text Block] | NOTE 8. CONTRACTS IN PROGRESS | ||||||||
Billings in excess of costs and estimated earnings on uncompleted contracts as of the years indicated are summarized in the following table (in thousands): | |||||||||
At December 31, | |||||||||
2014 | 2013 | ||||||||
Costs incurred on umcompleted contracts | $ | 6,707 | $ | 7,347 | |||||
Estimated earnings | 1,507 | 1,603 | |||||||
8,214 | 8,950 | ||||||||
Less: billings to date | 8,237 | 9,569 | |||||||
Total | $ | (23 | ) | $ | (619 | ) | |||
Balance sheet classification: | |||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | - | $ | 145 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (23 | ) | (764 | ) | |||||
Total | $ | (23 | ) | $ | (619 | ) | |||
Note_9_Debt
Note 9 - Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt Disclosure [Text Block] | NOTE 9. 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 is 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 is less). The credit facility is secured by a lien on our domestic assets. The interest rate for borrowing on accounts receivable is 8.5 percent, on inventories 10 percent, and on overdrafts 13 percent. Additionally, there is 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 renews from year to year after December 31, 2014, unless we provide the requisite notice to Rosenthal. Additionally, Rosenthal has the right to terminate the agreement by providing the 60 days written notice to us. We have not received such notice from Rosenthal. We are required to comply with certain financial covenants, measured quarterly, including, as defined in the agreement: a tangible net worth amount and a working capital amount. We were in compliance with the financial covenants as of December 31, 2014. Borrowings under the revolving line of credit were $453 thousand at December 31, 2014, and are recorded in the Consolidated Balance Sheets as a current liability under the caption “Credit line borrowings.” At December 31, 2013, there was a debit/negative balance on this line of credit in the amount of $218 thousand, which is included in the Consolidated Balance Sheets under the caption, “Cash and cash equivalents.” At December 31, 2014, there was approximately $2.3 million available for us to borrow under this line of credit. | |||||||||
Additionally, our subsidiary in the United Kingdom has an invoice discounting arrangement whereby the amount available for borrowing is based on 80 percent of their eligible sales ledger. The interest rate for borrowing under this arrangement is 3.02 percent. There were no borrowings under this arrangement at December 31, 2014 and 2013, respectively. | |||||||||
Borrowings | |||||||||
The components of our debt at December 31, 2014 and 2013 are summarized in the table below (in thousands): | |||||||||
At December 31, | |||||||||
2014 | 2013 | ||||||||
Unsecured convertible notes (1) | $ | - | $ | 6,145 | |||||
Cognovit note - Keystone Ruby, LLC (2) | - | 223 | |||||||
Unsecured promissory note - Quercus Trust (3) | 70 | 70 | |||||||
Discounts on long-term debt (4) | - | (2,368 | ) | ||||||
Long-term debt | 70 | 4,070 | |||||||
Less: current maturities of long-term debt | - | (59 | ) | ||||||
Long-term debt, net of current maturities | $ | 70 | $ | 4,011 | |||||
-1 | 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. | ||||||||
-2 | At December 31, 2014, the remaining balance on the cognovit note – Keystone Ruby, LLC, had been repaid in full. The note matured on April 1, 2017 and accrued interest at a rate of 10 percent. | ||||||||
-3 | Note matures on June 1, 2109 and bears interest at 1 percent. | ||||||||
-4 | 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 as described in (1) above, and $293 thousand to write-off the remaining loan origination costs incurred in connection with the convertible notes. | ||||||||
Future maturities of remaining long-term debt are summarized in the table below (in thousands): | |||||||||
For the year ending December 31, | Long-term Debt | ||||||||
2015 | $ | - | |||||||
2016 | - | ||||||||
2017 | - | ||||||||
2018 | - | ||||||||
2019 and thereafter | 70 | ||||||||
Long-term debt | 70 | ||||||||
Less: current maturities of long-term debt | - | ||||||||
Long-term debt, net of current maturities | $ | 70 | |||||||
Note_10_Restructuring
Note 10 - Restructuring | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 10. RESTRUCTURING |
During the third quarter of 2013, we relocated our manufacturing operations from a contract manufacturing facility located in Mexico to our facilities located in Pleasanton, California and Solon, Ohio. The Consolidated Statements of Operations include $80 thousand in “Restructuring” costs incurred for severance paid to Mexican contract employees as required by the production share agreement, as amended, between us and the contract manufacturer. As a result of the sale of our pool products business in November 2013, we relocated our manufacturing operations that were in Pleasanton, California to Solon, Ohio. This activity was completed by March 2014, and the cost was negligible. |
Note_11_Settlement_of_Acquisit
Note 11 - Settlement of Acquisition Obligations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Business Combination Disclosure [Text Block] | NOTE 11. SETTLEMENT OF ACQUISITION OBLIGATIONS | ||||||||
On June 28, 2013, we entered into a Settlement Agreement with EFLS, TLC Investments, LLC, Jamie Hall, and Robert E. Wilson, terminating the Membership Interest Purchase Agreement and related agreements that the parties had entered into at the end of December 2009 in connection with our acquisition of Stones River Companies, LLC, now referred to as “EFLS.” As part of the Settlement Agreement, our obligation to pay a $500 thousand special fee and a $500 thousand convertible promissory note including interest of $92 thousand were cancelled in their entirety in exchange for a $200 thousand payment and the forgiveness of a net receivable due to us of $78 thousand. Additionally, we recognized a $66 thousand favorable adjustment related to the change in the estimate of a performance-related contingent obligation for a 2.5 percent payout based upon the fair value of projected annual billings of EFLS. See Note 12, Commitments and contingencies, for further information. | |||||||||
The classification of these items in our Consolidated Statements of Operations is shown below (in thousands): | |||||||||
For the year ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Change in estimate of contingent liabilities: | |||||||||
Forgiveness of net receivable due to us | $ | 78 | $ | - | |||||
Adjustment to performance-related contingent obligation | (66 | ) | (102 | ) | |||||
Net line item expense | $ | 12 | $ | (102 | ) | ||||
Settlement of acquisition obligations: | |||||||||
Forgiveness of special fee | $ | 500 | $ | - | |||||
Forgiveness of convertible promissory note, including interest | 592 | - | |||||||
Payment by us | (200 | ) | - | ||||||
Net line item income | $ | 892 | $ | - | |||||
As a provision of the Settlement Agreement, we agreed to discontinue using the name Stones River Companies and any variant thereof by July 1, 2014. As a result of this provision, we wrote off the remaining $325 thousand of the intangible asset for the Tradename during the second quarter of 2013. |
Note_12_Commitments_and_Contin
Note 12 - Commitments and Contingencies | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||
Commitments and Contingencies Disclosure [Text Block] | NOTE 12. COMMITMENTS AND CONTINGENCIES | ||||||
We lease certain equipment, manufacturing, warehouse and office space under non-cancelable operating leases expiring through 2019 under which we are responsible for related maintenance, taxes, and insurance. Future minimum non-cancelable lease commitments are as follows (in thousands): | |||||||
For the year ending December 31, | Minimum Lease | ||||||
Commitments | |||||||
2015 | $ | 442 | |||||
2016 | 440 | ||||||
2017 | 276 | ||||||
2018 | 176 | ||||||
2019 and thereafter | 131 | ||||||
Total commitment | $ | 1,465 | |||||
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 $439 thousand, $502 thousand and $476 thousand for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||
In connection with the acquisition of EFLS in December 2009, we recorded a performance-related contingent obligation in related to a 2.5 percent payout payable over 42 months commencing January 1, 2010 and based upon the fair value of projected annual billings of the acquired business, and a $500 thousand fee if the market price of our common stock is not equal to or greater than $2.00 per share for at least twenty trading days between June 30, 2010 and June 30, 2013 (due on June 30, 2013). We accrued for each of these contingent liabilities at their respective fair values at the time of the acquisition. For the years ending December 31, 2013 and 2012, we paid $206 thousand and $186 thousand, respectively, relating to the 2.5 percent payout. | |||||||
In the fourth quarter of 2012, we reassessed the carrying value of the contingent liability related to the 2.5 percent payout and, based upon revised projected future billings, subsequently recorded a reduction to the contingent liability of $102 thousand, which has been recorded in the Consolidated Statements of Operations under the caption “Change in estimate of contingent liabilities.” | |||||||
On June 28, 2013, we entered into a Settlement Agreement with EFLS, TLC Investments, LLC, Jamie Hall, and Robert E. Wilson, terminating the Membership Interest Purchase Agreement related to the acquisition of Stones River Companies, LLC, now known as EFLS. As part of the Settlement Agreement, our obligation to pay a $500 thousand special fee and a $500 thousand convertible promissory note including interest of $92 thousand were cancelled in their entirety. Additionally, we recorded at $66 thousand favorable adjustment related to the 2.5 percent payout discussed above. See Note 11, Settlement of acquisition obligations. At December 31, 2012, we had recorded a current liability related to these contingent obligations of $728 thousand under the caption “Accrued liabilities” in the Consolidated Balance Sheets. |
Note_13_Stockholders_Equity
Note 13 - Stockholders' Equity | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | NOTE 13. STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||
Public offering | ||||||||||||||||||||||||||||
On August 6, 2014, we announced the pricing of a public offering to sell 1.175 million shares of our common stock at a price of $4.50 per share. 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. For a complete description of the details of the registered offering, reference is made to the registration statement on Form S-1 filed with the SEC on May 21, 2014 and amended on July 22, 2014, July 25, 2014 and August 4, 2014 and the final prospectus contained therein filed on August 6, 2014. | ||||||||||||||||||||||||||||
Convertible debt | ||||||||||||||||||||||||||||
Between the fourth quarter of 2012 and October of 2013, we entered into unsecured convertible notes totaling $7.6 million. The notes were convertible into shares of our common stock at $2.30 per share at various dates beginning on April 2013 through February 2014. As of March 31, 2014, all of the convertible debt had been converted into $3.3 million shares of our common stock. | ||||||||||||||||||||||||||||
Private placement | ||||||||||||||||||||||||||||
Between February 29, 2012 and March 2, 2012, we raised $4.9 million by entering into Securities Purchase Agreements with ten investors, under which we sold 1,960,000 units, each of which consists of one share of our common stock, and one-half warrant to purchase one share of common stock. Each warrant was immediately separable from the unit and immediately exercisable, and will expire three years from the date of issuance. We used the proceeds of the offering to retire debt and for working capital purposes. Eight of the ten investors were new investors and the largest investment from any single investor was $1.0 million. | ||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||
A summary of warrant activity was as follows: | ||||||||||||||||||||||||||||
Warrants | Weighted | |||||||||||||||||||||||||||
Outstanding | Average | |||||||||||||||||||||||||||
Exercise Price | ||||||||||||||||||||||||||||
During Period | ||||||||||||||||||||||||||||
Balance, December 31, 2011 | 325,638 | $ | 14.17 | |||||||||||||||||||||||||
Warrants issued | 980,000 | 5.4 | ||||||||||||||||||||||||||
Balance, December 31, 2012 | 1,305,638 | 7.6 | ||||||||||||||||||||||||||
Warrants issued | 2,549 | 3.49 | ||||||||||||||||||||||||||
Warrants expired | (200,638 | ) | 19.7 | |||||||||||||||||||||||||
Balance, December 31, 2013 | 1,107,549 | 4.41 | ||||||||||||||||||||||||||
Warrants issued | 147,000 | 4.65 | ||||||||||||||||||||||||||
Warrants exercised | (285,000 | ) | 3.87 | |||||||||||||||||||||||||
Balance, December 31, 2014 | 969,549 | $ | 4.61 | |||||||||||||||||||||||||
Exercisable, December 31, 2014 | 822,549 | $ | 4.6 | |||||||||||||||||||||||||
The number of warrants and weighted average remaining life (in years) by price for outstanding and exercisable warrants at December 31, 2014 was as follows: | ||||||||||||||||||||||||||||
WARRANTS OUTSTANDING | WARRANTS EXERCISABLE | |||||||||||||||||||||||||||
Exercise | Number of | Weighted | Number of | Weighted | ||||||||||||||||||||||||
Price | Shares | Average | Shares | Average | ||||||||||||||||||||||||
Outstanding | Remaining | Exercisable | Exercise Price | |||||||||||||||||||||||||
Contractual | ||||||||||||||||||||||||||||
Life | ||||||||||||||||||||||||||||
$ | 0.1 | 5,000 | 0.2 | 5,000 | $ | 0.1 | ||||||||||||||||||||||
$ | 3.49 | 2,549 | 1.9 | 2,549 | 3.49 | |||||||||||||||||||||||
$ | 4.3 | 880,000 | 0.5 | 780,000 | 4.3 | |||||||||||||||||||||||
$ | 5.4 | 47,000 | 4.6 | - | - | |||||||||||||||||||||||
$ | 12 | 35,000 | 0.2 | 35,000 | 12 | |||||||||||||||||||||||
969,549 | 0.7 | 822,549 | $ | 4.6 | ||||||||||||||||||||||||
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. 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. | ||||||||||||||||||||||||||||
In February of 2013, executive officers and certain other management level employees were awarded options with vesting criteria based upon our performance relative to our annual operating plan. Due to the financial performance for 2013, these options did not vest and were cancelled effective December 31, 2013. In November 2013, as a result of the sale of the pool products business, our Board of Directors approved the acceleration of the vesting of 7,000 options with a grant price of $2.30 per share for those employees who were being terminated as part of the sale. Additionally, the period in which these grants could be exercised was extended from three months from the date of termination to one year. | ||||||||||||||||||||||||||||
We granted 5,122 restricted stock units during the third quarter of 2013; however, 1,463 were forfeited in 2013 and 2,439 were forfeited in 2014. The remaining 1,220 shares vested in July of 2014. The fair market value on the date of grant was $4.10 per share, and the shares vested one year from the grant date. | ||||||||||||||||||||||||||||
Stock-based compensation expense is attributed to the granting of stock options and restricted stock 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, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Cost of sales | $ | 14 | $ | 5 | $ | - | ||||||||||||||||||||||
Research and development | 8 | 28 | 27 | |||||||||||||||||||||||||
Selling, general, and administrative | 510 | 168 | 173 | |||||||||||||||||||||||||
Total stock-based compensation | $ | 532 | $ | 201 | $ | 200 | ||||||||||||||||||||||
At December 31, 2014 and 2013, we had unamortized stock compensation expense of $387 thousand and $189 thousand, respectively. The remaining weighted average life was 2.6 and 1.3 years as of December 31, 2014 and 2013, 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: | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Fair value of options issued | $ | 3.62 | $ | 2.15 | $ | 4.7 | ||||||||||||||||||||||
Exercise price | $ | 4.69 | $ | 2.99 | $ | 8.6 | ||||||||||||||||||||||
Expected life of option (in years) | 5.7 | 7 | 5.6 | |||||||||||||||||||||||||
Risk-free interest rate | 1.8 | % | 1.4 | % | 0.8 | % | ||||||||||||||||||||||
Expected volatility | 97.9 | % | 92 | % | 59 | % | ||||||||||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||||
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, 2014 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 | Weighted | |||||||||||||||||||||||||||
Options | Average | |||||||||||||||||||||||||||
Exercise Price | ||||||||||||||||||||||||||||
Per Share | ||||||||||||||||||||||||||||
Outstanding at December 31, 2011 | 231,850 | $ | 22.8 | |||||||||||||||||||||||||
Granted | 12,000 | 2.7 | ||||||||||||||||||||||||||
Cancelled | (25,392 | ) | 22.2 | |||||||||||||||||||||||||
Outstanding at December 31, 2012 | 218,458 | 22 | ||||||||||||||||||||||||||
Granted | 207,950 | 3.15 | ||||||||||||||||||||||||||
Cancelled | (138,220 | ) | 7.74 | |||||||||||||||||||||||||
Exercised | (2,000 | ) | 5.15 | |||||||||||||||||||||||||
Outstanding at December 31, 2013 | 286,188 | 15.3 | ||||||||||||||||||||||||||
Granted | 326,250 | 4.76 | ||||||||||||||||||||||||||
Cancelled | (145,873 | ) | 12.38 | |||||||||||||||||||||||||
Exercised | (7,294 | ) | 2.3 | |||||||||||||||||||||||||
Outstanding at December 31, 2014 | 459,271 | $ | 8.95 | |||||||||||||||||||||||||
Vested and expected to vest at December 31, 2014 | 425,890 | $ | 7.99 | |||||||||||||||||||||||||
Exercisable at December 31, 2014 | 269,079 | $ | 11.79 | |||||||||||||||||||||||||
The “Expected to Vest” option 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 2014 was $29 thousand. The total intrinsic value of options outstanding and options exercisable at December 31, 2014 was $332 thousand and $246 thousand, respectively, which was calculated using the closing stock price at the end of the year of $4.93 per share less the option price of the in-the-money grants. | ||||||||||||||||||||||||||||
The options outstanding at December 31, 2014 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 | - | $3.90 | 73,464 | 8.2 | $ | 2.34 | 66,575 | 8.2 | $ | 2.33 | ||||||||||||||||||
$4.10 | - | $4.10 | 166,250 | 9 | 4.1 | 84,722 | 9 | 4.1 | ||||||||||||||||||||
$4.50 | - | $5.90 | 96,156 | 9 | 5.31 | 35,263 | 9.2 | 4.99 | ||||||||||||||||||||
$5.95 | - | $7.60 | 53,250 | 9 | 6.32 | 12,732 | 6.7 | 6.89 | ||||||||||||||||||||
$10.20 | - | $96.00 | 70,151 | 3.9 | 34.35 | 69,787 | 3.9 | 34.47 | ||||||||||||||||||||
459,271 | 8.1 | $ | 8.95 | 269,079 | 7.4 | $ | 11.79 | |||||||||||||||||||||
Restricted stock | ||||||||||||||||||||||||||||
In the past we have issued restricted stock to Executive Officers and Directors in lieu of paying cash compensation or Directors’ fees. | ||||||||||||||||||||||||||||
The following table shows a summary of restricted stock activity: | ||||||||||||||||||||||||||||
Restricted | Weighted | |||||||||||||||||||||||||||
Stock | Average | |||||||||||||||||||||||||||
Outstanding | Grant Date | |||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||
At December 31, 2011 | 41,461 | 7.31 | ||||||||||||||||||||||||||
Granted | - | - | ||||||||||||||||||||||||||
Vested | - | - | ||||||||||||||||||||||||||
At December 31, 2012 | 41,461 | 7.31 | ||||||||||||||||||||||||||
Granted | - | - | ||||||||||||||||||||||||||
Vested | (5,592 | ) | 7.31 | |||||||||||||||||||||||||
At December 31, 2013 | 35,869 | 7.31 | ||||||||||||||||||||||||||
Granted | - | - | ||||||||||||||||||||||||||
Vested | (35,869 | ) | 7.31 | |||||||||||||||||||||||||
At December 31, 2014 | - | - | ||||||||||||||||||||||||||
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 have been reserved 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 2014, 2013 and 2012, employees purchased 9,932, 17,655, and 18,552 shares, respectively. At December 31, 2014, 484 thousand shares remained available for purchase under the 2014 Plan. |
Note_14_Income_Taxes
Note 14 - Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Tax Disclosure [Text Block] | NOTE 14. INCOME TAXES | ||||||||||||
We file income tax returns in the United States federal jurisdiction, as well as in various states and foreign jurisdictions. With few exceptions, we are no longer subject to United States federal, state, and local, or non-United States income tax examinations by tax authorities for years before 2011. 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, 2014 and 2013, respectively, there were no accrued interest and penalties related to uncertain tax positions. | |||||||||||||
The following table shows the components of benefit from income taxes (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
State | $ | 2 | $ | - | $ | - | |||||||
Benefit from income taxes | $ | 2 | $ | - | $ | - | |||||||
The following table shows the geographic components of pretax loss from continuing operations between United States and foreign subsidiaries (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | (4,777 | ) | $ | (6,774 | ) | $ | (6,338 | ) | ||||
Foreign subsidiaries | (1,020 | ) | (173 | ) | (238 | ) | |||||||
Loss from continuing operations before income taxes | $ | (5,797 | ) | $ | (6,947 | ) | $ | (6,576 | ) | ||||
The principal items accounting for the difference between income taxes computed at the United States statutory rate and the benefit from income taxes reflected in our Consolidated Statements of Operations are as follows: | |||||||||||||
For the year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States statutory rate | 34 | % | 34 | % | 34 | % | |||||||
State taxes (net of federal tax benefit) | 0.8 | 1.3 | 1.8 | ||||||||||
Valuation allowance | (18.1 | ) | (19.6 | ) | (27.8 | ) | |||||||
Interest amortization expense | (18.4 | ) | (6.3 | ) | (3.4 | ) | |||||||
Other | 1.7 | (9.4 | ) | (4.6 | ) | ||||||||
0 | % | 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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Allowance for doubtful accounts | $ | 11 | $ | 15 | $ | 53 | |||||||
Accrued expenses and other reserves | 2,144 | 2,048 | 2,197 | ||||||||||
Tax credits, deferred R&D, and other | 647 | 748 | 907 | ||||||||||
Net operating loss | 8,685 | 5,535 | 25,980 | ||||||||||
Valuation allowance | (11,485 | ) | (8,344 | ) | (29,135 | ) | |||||||
Net deferred tax assets | $ | 2 | $ | 2 | $ | 2 | |||||||
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 United States deferred tax assets. Net deferred tax assets at December 31, 2014 and December 31, 2013 amounted to $2 thousand, respectively, and resulted from our United Kingdom subsidiary, which has been profitable in prior years. We had no net deferred tax liabilities at December 31, 2014 or 2013. There were no federal tax expenses for our United States operations in 2014, as any expected benefits were offset by an increase in the valuation allowance. Additionally, there was a $2 thousand state tax benefit charged to the Consolidated Statements of Operations for the year ended December 31, 2014. | |||||||||||||
At December 31, 2014, we had net operating loss carry-forwards of approximately $75.4 million for federal, state, and local income tax purposes. However, due to changes in our capital structure, approximately $23.9 million of this amount is available after the application of IRS Section 382 limitations, as discussed below. If not utilized, these carry-forwards will begin to expire in 2021 for federal purposes and have already started expiring for state and local purposes. | |||||||||||||
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 2013, 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 gross capital loss carry-forwards, 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, then 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 $51.5 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 capital loss carry-forwards and 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. |
Note_15_Segments_and_Geographi
Note 15 - Segments and Geographic Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Reporting Disclosure [Text Block] | NOTE 15. SEGMENTS AND GEOGRAPHIC INFORMATION | ||||||||||||
We have two reportable segments: products and solutions. The products segment includes the marketing and sale of commercial, industrial, government, military and maritime lighting products, and research and development services. Our products are sold primarily in the United States and Europe through a combination of direct sales employees, independent sales representatives and distributors. Our solutions segment provides turnkey, high-quality, energy-efficient lighting application alternatives, which are designed to enhance total value by positively impacting customer profitability, the environment, and the communities served. During 2014, we shifted our focus away from the turnkey solutions business to align our resources with developing and selling our LED products. | |||||||||||||
The following summarizes our reportable segment data from continuing operations for the years ended December 31, (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Solutions: | |||||||||||||
Net sales | $ | 3,689 | $ | 9,847 | $ | 10,569 | |||||||
Cost of sales | 2,969 | 8,361 | 9,150 | ||||||||||
Gross profit | 720 | 1,486 | 1,419 | ||||||||||
Operating expenses: | |||||||||||||
Selling, general, and administrative | 1,199 | 2,036 | 2,081 | ||||||||||
Loss on impairment | - | 325 | 672 | ||||||||||
Total operating expenses | 1,199 | 2,361 | 2,753 | ||||||||||
Segment loss | $ | (479 | ) | $ | (875 | ) | $ | (1,334 | ) | ||||
Products: | |||||||||||||
Net sales | $ | 25,273 | $ | 11,686 | $ | 12,806 | |||||||
Cost of sales | 16,625 | 8,593 | 10,253 | ||||||||||
Gross profit | 8,648 | 3,093 | 2,553 | ||||||||||
Operating expenses (income): | |||||||||||||
Research and development | 326 | 597 | 368 | ||||||||||
Selling, general, and administrative | 4,753 | 2,725 | 2,632 | ||||||||||
Loss on impairment | - | 608 | - | ||||||||||
Restructuring | - | 80 | - | ||||||||||
Total operating expenses | 5,079 | 4,010 | 3,000 | ||||||||||
Segment income (loss) | $ | 3,569 | $ | (917 | ) | $ | (447 | ) | |||||
Reconciliation of segment loss to net loss: | |||||||||||||
Segment (income) loss: | |||||||||||||
Solutions | $ | (479 | ) | $ | (875 | ) | $ | (1,334 | ) | ||||
Products | 3,569 | (917 | ) | (447 | ) | ||||||||
Total segment income (loss) | 3,090 | (1,792 | ) | (1,781 | ) | ||||||||
Operating expenses: | |||||||||||||
Research and development | 709 | - | - | ||||||||||
Selling, general, and administrative | 4,958 | 4,953 | 4,231 | ||||||||||
Change in estimate of contingent liabilities | - | 12 | (102 | ) | |||||||||
Total operating expenses | 5,667 | 4,965 | 4,129 | ||||||||||
Other expenses | (3,220 | ) | (190 | ) | (666 | ) | |||||||
Loss before income taxes from continuing operations | (5,797 | ) | (6,947 | ) | (6,576 | ) | |||||||
Benefit from income taxes | 2 | - | - | ||||||||||
Net loss from continuing operations | $ | (5,795 | ) | $ | (6,947 | ) | $ | (6,576 | ) | ||||
The following table provides a breakdown of net sales from continuing operations for our products segment for the years indicated (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Products segment net sales: | |||||||||||||
Commercial | $ | 5,984 | $ | 5,966 | $ | 8,486 | |||||||
Government | 19,214 | 3,678 | 2,534 | ||||||||||
R&D services | 75 | 2,042 | 1,786 | ||||||||||
Total products segment net sales | $ | 25,273 | $ | 11,686 | $ | 12,806 | |||||||
A geographic summary of net sales from continuing operations is as follows (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States Domestic | $ | 26,356 | $ | 19,136 | $ | 20,363 | |||||||
International | 2,606 | 2,397 | 3,012 | ||||||||||
Total net sales | $ | 28,962 | $ | 21,533 | $ | 23,375 | |||||||
A geographic summary of long-lived assets, which consists of property and equipment, and intangible assets, is as follows (in thousands): | |||||||||||||
At December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
United States | $ | 456 | $ | 582 | |||||||||
International | 23 | 9 | |||||||||||
Long-lived assets, net | $ | 479 | $ | 591 | |||||||||
Note_16_Related_Party_Transact
Note 16 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 16. 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. 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, 2014, 5 Elements Global Advisors holds approximately 3.3 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 and Managing Partner 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 more than 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 current member of our Board of Directors and an employee of the Company, and Jennifer Cheng, a member of our Board of Directors from July 25, 2012 to July 15, 2014. | |
On February 27, 2012, we entered into an Asian Business Development/Collaboration Agreement with Communal. The agreement has a 60 month term, under which we paid $523 thousand to Communal in 2012. We recorded $270 thousand of expense in 2012 under this agreement. Additionally, during the term of the agreement, we will pay Communal a 5 percent commission on the net sales that occur within the territory, as defined by the agreement. We have incurred no commissions due under this agreement through December 31, 2014. | |
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. During the year ended December 31, 2014, nothing was paid under this Agreement and we recorded expense of $226 thousand. At December 31, 2014, we had $226 thousand included in the caption, “Prepaid and other current assets” in the Consolidated Balance Sheets. |
Note_17_Legal_Matters
Note 17 - Legal Matters | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block Supplement [Abstract] | |
Legal Matters and Contingencies [Text Block] | NOTE 17. LEGAL MATTERS |
As to matters in which the loss is not considered both probable and estimable, or is considered probable but not estimable, we do not establish an accrual in accordance with current accounting guidance. We are unable to estimate a range of reasonably possible loss for matter described below, since the proceeding is at a stage where significant uncertainty exists as to legal or factual issues and as to whether such matters will proceed to a final arbitration. Based on currently available information, it is possible that a negative outcome could have a material impact on our results for the period in which it occurs and, if applicable, our financial position, results of operations or cash flow in general. | |
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, 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. We believe the claims are without merit and we intend to defend the arbitration claim and have asserted a counterclaim in the arbitration for the $300 thousand that still remains in escrow. The arbitration is in the very beginning stages and there has been no selection of an arbitrator or date set for a hearing. | |
In addition to the matter described above, in the ordinary course of business, we may become involved in lawsuits and administrative proceedings. Some of these proceedings may result in fines, penalties, or judgments which, from time to time, may have an impact on its business and financial condition. Although the outcome of such lawsuits or other proceedings cannot be predicted with certainty, we do not believe that any uninsured ultimate liabilities, individually or in the aggregate, will have a material adverse effect on its liquidity, financial position, or results of operations. |
Supplementary_Financial_Inform
Supplementary Financial Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Information [Text Block] | 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, 2014 and 2013, 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. | |||||||||||||||||
2014 | Fourth | Third | Second | First | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Net sales from continuing operations | $ | 9,454 | $ | 7,890 | $ | 6,699 | $ | 4,919 | |||||||||
Gross profit from continuing operations | 3,214 | 2,558 | 2,174 | 1,422 | |||||||||||||
Net loss from continuing operations | (720 | ) | (403 | ) | (622 | ) | (4,050 | ) | |||||||||
Net (loss) income from discontinued operations | (30 | ) | 0 | 0 | (20 | ) | |||||||||||
Net loss | (750 | ) | (403 | ) | (622 | ) | (4,070 | ) | |||||||||
Net loss per share: | |||||||||||||||||
Basic | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.08 | ) | $ | (0.79 | ) | |||||
Diluted | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.08 | ) | $ | (0.79 | ) | |||||
2013 | Fourth | Third | Second | First | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Net sales from continuing operations | $ | 6,595 | $ | 4,827 | $ | 5,653 | $ | 4,458 | |||||||||
Gross profit from continuing operations | 1,528 | 930 | 1,238 | 883 | |||||||||||||
Net loss from continuing operations | (2,459 | ) | (1,870 | ) | (1,162 | ) | (1,456 | ) | |||||||||
Net income from discontinued operations | 3,856 | 219 | 483 | 28 | |||||||||||||
Net income (loss) | 1,397 | (1,651 | ) | (679 | ) | (1,428 | ) | ||||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | 0.27 | $ | (0.34 | ) | $ | (0.15 | ) | $ | (0.32 | ) | ||||||
Diluted | $ | 0.17 | $ | (0.34 | ) | $ | (0.15 | ) | $ | (0.32 | ) | ||||||
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II | ||||||||||||||||
ENERGY FOCUS, INC. | |||||||||||||||||
SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Description | Beginning | Charges to | Deductions | Ending | |||||||||||||
Balance | Revenue/ | Balance | |||||||||||||||
Expense | |||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||
Allowance for doubtful accounts and returns | $ | 84 | $ | 617 | $ | 378 | $ | 323 | |||||||||
Valuation allowance for deferred tax assets | 8,344 | 3,141 | 11,485 | ||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Allowance for doubtful accounts and returns | $ | 265 | $ | 2 | $ | 183 | $ | 84 | |||||||||
Valuation allowance for deferred tax assets | 29,135 | (20,791 | ) | 8,344 | |||||||||||||
Year ended December 31, 2012 | |||||||||||||||||
Allowance for doubtful accounts and returns | $ | 447 | $ | 309 | $ | 491 | $ | 265 | |||||||||
Valuation allowance for deferred tax assets | 27,909 | 1,226 | 29,135 | ||||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Stockholders' Equity, Policy [Policy Text Block] | Reverse stock split | ||||||||||||
At our annual meeting of stockholders held on July 15, 2014, the stockholders approved an amendment to the Certificate of Incorporation, as described in our proxy statement dated June 26, 2014, to effect a reverse stock split of our outstanding common stock at a ratio ranging from 1 -for- 7 to 1 -for- 15, with such ratio determined by our Board of Directors in its discretion without further approval from the stockholders. The Board of Directors subsequently authorized proceeding with the reverse stock split at a ratio of 1 -for- 10. On July 16, 2014, we filed a Certificate of Amendment to our Certificate of Incorporation effecting the reverse stock split effective at 5pm ET on July 16, 2014. Immediately after the July 16, 2014 effective date, we had 8,024,813 shares of common stock issued and outstanding. All share and per share amounts have been retroactively restated to reflect the reverse split. Effective at the same time as the reverse split, the authorized number of shares of our common stock was proportionately decreased from 150,000,000 shares to 15,000,000 shares. The par value remained the same. | |||||||||||||
Use of Estimates, Policy [Policy Text Block] | 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; revenues recognized on a percentage-of-completion basis; and stock-based compensation. In addition, estimates and assumptions associated with the determination of the fair value of financial instruments and evaluation of goodwill and long-lived assets for impairment requires considerable judgment. Actual results could differ from those estimates and such differences could be material. | |||||||||||||
Reclassification, Policy [Policy Text Block] | 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 Accounting, Policy [Policy Text Block] | Basis of presentation | ||||||||||||
The financial statements include the accounts of the Company and its subsidiaries, Energy Focus LED Solutions, LLC (“EFLS”) in Solon, Ohio, and Crescent Lighting Limited (“CLL”) located in the United Kingdom. All significant inter-company balances and transactions have been eliminated. | |||||||||||||
Revenue Recognition, Policy [Policy Text Block] | 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 our products segment business 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 and profits from our solutions segment are generally recognized by applying percentage-of-completion for the period to the estimated profits for the respective contracts. Percentage-of-completion is determined by relating the actual cost of the work performed to date to the current estimated total cost of the respective contracts. When the estimate on a contract indicates a loss, our policy is to record the entire loss during the accounting period in which it is estimable. In the ordinary course of business, at a minimum on a quarterly basis, we prepare updated estimates of the total forecasted revenue, cost and profit or loss for each contract. The cumulative effect of revisions in estimates of the total forecasted revenue and costs during the course of the work is reflected in the accounting period in which the facts that caused the revision become known. The financial impact of these revisions to any one contract is a function of both the amount of the revision and the percentage-of-completion of the contract. Historically, revenues from our solutions segment were generally from larger contracts that ranged from three to eighteen months in duration. | |||||||||||||
In accordance with normal practices in the industry, we include in current assets and current liabilities amounts related to contracts realizable and payable. Billings in excess of costs and estimated earnings on uncompleted contracts represent the excess of contract billings to date over the amount of contract costs and profits (or contract revenue) recognized to date on a percentage-of-completion basis. Costs and estimated earnings in excess of billings on uncompleted contracts represent the excess of contract costs and profits (or contract revenue) recognized to date on the percentage-of-completion basis over the amount of contract billings to date on the remaining contracts. See Note 8, Contracts in progress, for additional information. | |||||||||||||
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 and 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, Policy [Policy Text Block] | 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, 2014, we had $7.5 million in cash on deposit with financial institutions located in the United States, of which $105 thousand 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. Additionally, our cash balance at December 31, 2014 included $300 thousand of the purchase price from the sale of our pool products business in escrow to secure our obligations of the sale, subject to the resolution of outstanding buyer claims. | |||||||||||||
At December 31, 2014, we had cash of $4 thousand on deposit with a European bank in the United Kingdom. | |||||||||||||
Inventory, Policy [Policy Text Block] | 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. Charges to cost of sales for excess and obsolete inventories from continuing operations amounted to $95 thousand, $109 thousand and $111 thousand in 2014, 2013 and 2012, respectively. | |||||||||||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts receivable | ||||||||||||
Our customers are concentrated in the United States and Europe. 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. | |||||||||||||
Retainage receivable | |||||||||||||
Our solutions segment sales are normally subject to a holdback of a percentage of the sale as retainage. This holdback is recorded in our Consolidated Balance Sheets as “Retainage receivable.” Retainage is a portion of the total bid price of a project held back by a customer until the project is complete and functioning satisfactorily according to the contract terms. Retainage percentages typically range from 5 percent to 10 percent and are collected anywhere from three to eighteen months from the inception of the project. At December 31, 2014 we had no retainage receivable outstanding from our customers. For the year ended December 31, 2013, we had retainage receivable from our customers totaling $577 thousand. | |||||||||||||
Income Tax, Policy [Policy Text Block] | 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, 2014 and 2013, 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, 2014, we had net operating loss carry-forwards of approximately $75.4 million for federal, state, and local income tax purposes. However, due to changes in our capital structure, approximately $23.9 million of this amount is available after the application of IRC Section 382 limitations. 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 14, Income Taxes, for additional information. | |||||||||||||
Repurchase Agreements, Collateral, Policy [Policy Text Block] | Collateralized assets | ||||||||||||
During the fourth quarter of 2014, $1.0 million of cash collateral related to our surety bonding program associated with EFLS was refunded to us by the surety carrier, as it was determined that the collateral was no longer needed. | |||||||||||||
Fair Value Measurement, Policy [Policy Text Block] | The carrying amounts of certain financial instruments including cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to their short maturities. Based on borrowing rates currently available to us for loans with similar terms, the carrying value of long-term debt obligations also approximates fair value. | ||||||||||||
Long Lived Assets Policy [Policy Text Block] | Long-lived assetsProperty 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 their estimated useful lives of the related assets (generally two to fifteen 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 and assets held for sale, included in Item 8 for additional information.We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, our long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized, on a straight-line basis or other method which best approximates cash flows, over their useful lives, ranging from 5 to 10 years. Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business acquisition. We evaluate goodwill for impairment using the projected present value of future cash flows of the reporting unit, taking into account historical performance. A significant amount of judgment is required in estimating fair value of the reporting unit. Based on historical losses incurred, in 2012 it was determined that goodwill was impaired, and we wrote off the remaining balance of $672 thousand as of December 31, 2012, which resulted from our 2009 acquisition of EFLS. Additionally, in conjunction with the settlement agreement between us and the former owners of EFLS, we agreed to discontinue the use of the name “Stones River Companies, LLC” and various derivatives including SRC. Therefore, at June 30, 2013, the remaining unamortized balance of Tradenames of $325 thousand was written off. Refer to Note 6, Intangible assets, and Note 11, Settlement of acquisition obligations, included in Item 8 for additional information.Long-lived assets, other than goodwill, 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. On December 31, 2013, we recorded an impairment charge of $608 thousand for assets that were held for sale at December 31, 2013. These assets were subsequently sold in the first quarter of 2014 for $130 thousand, which was the carrying value after the impairment charge. See Note 5, Property and equipment and assets held for sale, included in Item 8 for additional information. | ||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Certain risks and concentrations | ||||||||||||
We sell our products and solutions services 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. | |||||||||||||
At December 31, 2014 and 2013, five customers accounted for 93 percent and 58 percent, respectively, of net trade receivables, including retainage receivable. For 2014, 2013 and 2012, the top four customers accounted for 67.1 percent, 36 percent, and 42 percent of net sales, respectively. | |||||||||||||
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. | |||||||||||||
Research and Development Expense, Policy [Policy Text Block] | Research and development | ||||||||||||
Research and 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. | |||||||||||||
Earnings Per Share, Policy [Policy Text Block] | Net loss per share | ||||||||||||
Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted loss per share is computed giving effect to all dilutive potential common shares that were 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. | |||||||||||||
A reconciliation of basic and diluted loss per share is provided as follows (in thousands, except per share amounts): | |||||||||||||
For the year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic and diluted loss per share: | |||||||||||||
Net loss | $ | (5,845 | ) | $ | (2,361 | ) | $ | (5,709 | ) | ||||
Weighted average shares outstanding | 7,816 | 4,779 | 4,132 | ||||||||||
Basic and diluted loss per share | $ | (0.75 | ) | $ | (0.49 | ) | $ | (1.38 | ) | ||||
Options, warrants and convertible securities representing approximately 818,832, 1,955,809, and 1,138,280 shares of common stock were excluded from the loss per share calculation for years ended December 31, 2014, 2013, and 2012, respectively, because their inclusion would have been anti-dilutive. | |||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | 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 13, 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 Transactions and Translations Policy [Policy Text Block] | Foreign currency translation | ||||||||||||
Our international subsidiary uses its local currency as its functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date and income and expense accounts are translated at average exchange rates during the year. Resulting translation adjustments are recorded directly to “Accumulated other comprehensive income” within the Consolidated Statements of Stockholders’ Equity. Foreign currency transaction gains and losses are included as a component of “Other (expense)/income.” Gains and losses from foreign currency translation are included as a separate component of “Other comprehensive loss” within the Consolidated Statements of Comprehensive Loss. | |||||||||||||
Advertising Costs, Policy [Policy Text Block] | 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 $292 thousand, $112 thousand, and $164 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and handling costs | ||||||||||||
We include shipping and handling revenues in net sales, and shipping and handling costs in cost of sales. | |||||||||||||
Standard Product Warranty, Policy [Policy Text Block] | Product warranties | ||||||||||||
We warrant finished goods against defects in material and workmanship under normal use and service for periods generally between one and five years for products and labor. Settlement costs consist of actual amounts expensed for warranty services which are largely a result of third-party service calls, and the costs 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, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at the beginning of the year | $ | 75 | $ | 159 | |||||||||
Accruals for warranties issued | 183 | 60 | |||||||||||
Settlements made during the year (in cash or in kind) | (70 | ) | (144 | ) | |||||||||
Accrued warranty expense | $ | 188 | $ | 75 | |||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting standards and pronouncements | ||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which amends ASC 740, Income Taxes. The amendments provide guidance on the financial statement presentation of an unrecognized tax benefit, as either a reduction of a deferred tax asset or as a liability, when a net operating loss carryforward, similar tax loss, or a tax credit carryforward exists. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and may be applied on either a prospective or retrospective basis. The adoption of this ASU did not materially impact our disclosures. | |||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue Recognition - Revenue from Contracts with Customers, which is a comprehensive revenue recognition standard that will supersede nearly all of the existing revenue recognition guidance under U.S. GAAP. The standard is effective for interim and annual periods beginning after December 15, 2016, and either full retrospective adoption or modified retrospective adoption is permitted. We are in the process of evaluating the impact of the standard. |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic and diluted loss per share: | |||||||||||||
Net loss | $ | (5,845 | ) | $ | (2,361 | ) | $ | (5,709 | ) | ||||
Weighted average shares outstanding | 7,816 | 4,779 | 4,132 | ||||||||||
Basic and diluted loss per share | $ | (0.75 | ) | $ | (0.49 | ) | $ | (1.38 | ) | ||||
Schedule of Product Warranty Liability [Table Text Block] | At December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Balance at the beginning of the year | $ | 75 | $ | 159 | |||||||||
Accruals for warranties issued | 183 | 60 | |||||||||||
Settlements made during the year (in cash or in kind) | (70 | ) | (144 | ) | |||||||||
Accrued warranty expense | $ | 188 | $ | 75 |
Note_3_Discontinued_Operations1
Note 3 - Discontinued Operations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | For the year ended | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Proceeds from sale | $ | - | $ | 5,200 | |||||
Less: | |||||||||
Trade accounts receivable, net | - | 554 | |||||||
Inventories, net | - | 721 | |||||||
Prepaid and other current assets | - | 109 | |||||||
Property and equipment, net | - | 73 | |||||||
Transaction costs | 30 | 395 | |||||||
Plus: | |||||||||
Accounts payable | - | 269 | |||||||
Accrued liabilities | - | 298 | |||||||
(Loss) gain on sale of discontinued operations | $ | (30 | ) | $ | 3,915 |
Note_4_Inventories_Tables
Note 4 - Inventories (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Inventory Disclosure [Abstract] | |||||||||||
Schedule of Inventory, Current [Table Text Block] | At December 31, | ||||||||||
2014 | 2013 | ||||||||||
Raw materials | $ | 3,183 | $ | 1,611 | |||||||
Finished goods | 4,100 | 899 | |||||||||
Inventories, net | $ | 7,283 | $ | 2,510 |
Note_5_Property_and_Equipment_1
Note 5 - Property and Equipment and Assets Held for Sale (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment [Table Text Block] | At December 31, | ||||||||
2014 | 2013 | ||||||||
Equipment (useful life 3 - 15 years) | $ | 1,495 | $ | 2,080 | |||||
Tooling (useful life 2 - 5 years) | 865 | 769 | |||||||
Furniture and fixtures (useful life 5 years) | 92 | 115 | |||||||
Computer software (useful life 3 years) | 452 | 521 | |||||||
Leasehold improvements (the shorter of useful life or lease life) | 572 | 589 | |||||||
Construction in progress | 18 | 9 | |||||||
Property and equipment at cost | 3,494 | 4,083 | |||||||
Less: accumulated depreciation | (3,015 | ) | (3,547 | ) | |||||
Property and equipment, net | $ | 479 | $ | 536 |
Note_6_Intangible_Assets_Table
Note 6 - Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Amortization | At December 31, | |||||||||||||
Life (in years) | 2014 | 2013 | |||||||||||||
Customer relationships | 5 | $ | - | $ | 55 |
Note_7_Accrued_Liabilities_Tab
Note 7 - Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | At December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued sales commissions and incentives | $ | 245 | $ | 280 | |||||
Accrued warranty expense | 188 | 75 | |||||||
Accrued legal and professional fees | 132 | 50 | |||||||
Accrued payroll and related benefits | 541 | 299 | |||||||
Separation accrual | 251 | 247 | |||||||
Accrued taxes | 9 | 137 | |||||||
Accrued other expenses | 31 | 130 | |||||||
Total accrued liabilities | $ | 1,397 | $ | 1,218 |
Note_8_Contracts_in_Progress_T
Note 8 - Contracts in Progress (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Contracts In Progress [Abstract] | |||||||||
Schedule of Contracts in Progress [Table Text Block] | At December 31, | ||||||||
2014 | 2013 | ||||||||
Costs incurred on umcompleted contracts | $ | 6,707 | $ | 7,347 | |||||
Estimated earnings | 1,507 | 1,603 | |||||||
8,214 | 8,950 | ||||||||
Less: billings to date | 8,237 | 9,569 | |||||||
Total | $ | (23 | ) | $ | (619 | ) | |||
Balance sheet classification: | |||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | - | $ | 145 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (23 | ) | (764 | ) | |||||
Total | $ | (23 | ) | $ | (619 | ) |
Note_9_Debt_Tables
Note 9 - Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | At December 31, | ||||||||
2014 | 2013 | ||||||||
Unsecured convertible notes (1) | $ | - | $ | 6,145 | |||||
Cognovit note - Keystone Ruby, LLC (2) | - | 223 | |||||||
Unsecured promissory note - Quercus Trust (3) | 70 | 70 | |||||||
Discounts on long-term debt (4) | - | (2,368 | ) | ||||||
Long-term debt | 70 | 4,070 | |||||||
Less: current maturities of long-term debt | - | (59 | ) | ||||||
Long-term debt, net of current maturities | $ | 70 | $ | 4,011 | |||||
Schedule of Maturities of Long-term Debt [Table Text Block] | For the year ending December 31, | Long-term Debt | |||||||
2015 | $ | - | |||||||
2016 | - | ||||||||
2017 | - | ||||||||
2018 | - | ||||||||
2019 and thereafter | 70 | ||||||||
Long-term debt | 70 | ||||||||
Less: current maturities of long-term debt | - | ||||||||
Long-term debt, net of current maturities | $ | 70 |
Note_11_Settlement_of_Acquisit1
Note 11 - Settlement of Acquisition Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | For the year ended | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Change in estimate of contingent liabilities: | |||||||||
Forgiveness of net receivable due to us | $ | 78 | $ | - | |||||
Adjustment to performance-related contingent obligation | (66 | ) | (102 | ) | |||||
Net line item expense | $ | 12 | $ | (102 | ) | ||||
Settlement of acquisition obligations: | |||||||||
Forgiveness of special fee | $ | 500 | $ | - | |||||
Forgiveness of convertible promissory note, including interest | 592 | - | |||||||
Payment by us | (200 | ) | - | ||||||
Net line item income | $ | 892 | $ | - |
Note_12_Commitments_and_Contin1
Note 12 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | For the year ending December 31, | Minimum Lease | |||||
Commitments | |||||||
2015 | $ | 442 | |||||
2016 | 440 | ||||||
2017 | 276 | ||||||
2018 | 176 | ||||||
2019 and thereafter | 131 | ||||||
Total commitment | $ | 1,465 |
Note_13_Stockholders_Equity_Ta
Note 13 - Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | Warrants | Weighted | ||||||||||||||||||||||||||
Outstanding | Average | |||||||||||||||||||||||||||
Exercise Price | ||||||||||||||||||||||||||||
During Period | ||||||||||||||||||||||||||||
Balance, December 31, 2011 | 325,638 | $ | 14.17 | |||||||||||||||||||||||||
Warrants issued | 980,000 | 5.4 | ||||||||||||||||||||||||||
Balance, December 31, 2012 | 1,305,638 | 7.6 | ||||||||||||||||||||||||||
Warrants issued | 2,549 | 3.49 | ||||||||||||||||||||||||||
Warrants expired | (200,638 | ) | 19.7 | |||||||||||||||||||||||||
Balance, December 31, 2013 | 1,107,549 | 4.41 | ||||||||||||||||||||||||||
Warrants issued | 147,000 | 4.65 | ||||||||||||||||||||||||||
Warrants exercised | (285,000 | ) | 3.87 | |||||||||||||||||||||||||
Balance, December 31, 2014 | 969,549 | $ | 4.61 | |||||||||||||||||||||||||
Exercisable, December 31, 2014 | 822,549 | $ | 4.6 | |||||||||||||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | WARRANTS OUTSTANDING | WARRANTS EXERCISABLE | ||||||||||||||||||||||||||
Exercise | Number of | Weighted | Number of | Weighted | ||||||||||||||||||||||||
Price | Shares | Average | Shares | Average | ||||||||||||||||||||||||
Outstanding | Remaining | Exercisable | Exercise Price | |||||||||||||||||||||||||
Contractual | ||||||||||||||||||||||||||||
Life | ||||||||||||||||||||||||||||
$ | 0.1 | 5,000 | 0.2 | 5,000 | $ | 0.1 | ||||||||||||||||||||||
$ | 3.49 | 2,549 | 1.9 | 2,549 | 3.49 | |||||||||||||||||||||||
$ | 4.3 | 880,000 | 0.5 | 780,000 | 4.3 | |||||||||||||||||||||||
$ | 5.4 | 47,000 | 4.6 | - | - | |||||||||||||||||||||||
$ | 12 | 35,000 | 0.2 | 35,000 | 12 | |||||||||||||||||||||||
969,549 | 0.7 | 822,549 | $ | 4.6 | ||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | For the year ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Cost of sales | $ | 14 | $ | 5 | $ | - | ||||||||||||||||||||||
Research and development | 8 | 28 | 27 | |||||||||||||||||||||||||
Selling, general, and administrative | 510 | 168 | 173 | |||||||||||||||||||||||||
Total stock-based compensation | $ | 532 | $ | 201 | $ | 200 | ||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
Fair value of options issued | $ | 3.62 | $ | 2.15 | $ | 4.7 | ||||||||||||||||||||||
Exercise price | $ | 4.69 | $ | 2.99 | $ | 8.6 | ||||||||||||||||||||||
Expected life of option (in years) | 5.7 | 7 | 5.6 | |||||||||||||||||||||||||
Risk-free interest rate | 1.8 | % | 1.4 | % | 0.8 | % | ||||||||||||||||||||||
Expected volatility | 97.9 | % | 92 | % | 59 | % | ||||||||||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of | Weighted | ||||||||||||||||||||||||||
Options | Average | |||||||||||||||||||||||||||
Exercise Price | ||||||||||||||||||||||||||||
Per Share | ||||||||||||||||||||||||||||
Outstanding at December 31, 2011 | 231,850 | $ | 22.8 | |||||||||||||||||||||||||
Granted | 12,000 | 2.7 | ||||||||||||||||||||||||||
Cancelled | (25,392 | ) | 22.2 | |||||||||||||||||||||||||
Outstanding at December 31, 2012 | 218,458 | 22 | ||||||||||||||||||||||||||
Granted | 207,950 | 3.15 | ||||||||||||||||||||||||||
Cancelled | (138,220 | ) | 7.74 | |||||||||||||||||||||||||
Exercised | (2,000 | ) | 5.15 | |||||||||||||||||||||||||
Outstanding at December 31, 2013 | 286,188 | 15.3 | ||||||||||||||||||||||||||
Granted | 326,250 | 4.76 | ||||||||||||||||||||||||||
Cancelled | (145,873 | ) | 12.38 | |||||||||||||||||||||||||
Exercised | (7,294 | ) | 2.3 | |||||||||||||||||||||||||
Outstanding at December 31, 2014 | 459,271 | $ | 8.95 | |||||||||||||||||||||||||
Vested and expected to vest at December 31, 2014 | 425,890 | $ | 7.99 | |||||||||||||||||||||||||
Exercisable at December 31, 2014 | 269,079 | $ | 11.79 | |||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | 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 | - | $3.90 | 73,464 | 8.2 | $ | 2.34 | 66,575 | 8.2 | $ | 2.33 | ||||||||||||||||||
$4.10 | - | $4.10 | 166,250 | 9 | 4.1 | 84,722 | 9 | 4.1 | ||||||||||||||||||||
$4.50 | - | $5.90 | 96,156 | 9 | 5.31 | 35,263 | 9.2 | 4.99 | ||||||||||||||||||||
$5.95 | - | $7.60 | 53,250 | 9 | 6.32 | 12,732 | 6.7 | 6.89 | ||||||||||||||||||||
$10.20 | - | $96.00 | 70,151 | 3.9 | 34.35 | 69,787 | 3.9 | 34.47 | ||||||||||||||||||||
459,271 | 8.1 | $ | 8.95 | 269,079 | 7.4 | $ | 11.79 | |||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Restricted | Weighted | ||||||||||||||||||||||||||
Stock | Average | |||||||||||||||||||||||||||
Outstanding | Grant Date | |||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||
At December 31, 2011 | 41,461 | 7.31 | ||||||||||||||||||||||||||
Granted | - | - | ||||||||||||||||||||||||||
Vested | - | - | ||||||||||||||||||||||||||
At December 31, 2012 | 41,461 | 7.31 | ||||||||||||||||||||||||||
Granted | - | - | ||||||||||||||||||||||||||
Vested | (5,592 | ) | 7.31 | |||||||||||||||||||||||||
At December 31, 2013 | 35,869 | 7.31 | ||||||||||||||||||||||||||
Granted | - | - | ||||||||||||||||||||||||||
Vested | (35,869 | ) | 7.31 | |||||||||||||||||||||||||
At December 31, 2014 | - | - |
Note_14_Income_Taxes_Tables
Note 14 - Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | For the year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
State | $ | 2 | $ | - | $ | - | |||||||
Benefit from income taxes | $ | 2 | $ | - | $ | - | |||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | For the year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | (4,777 | ) | $ | (6,774 | ) | $ | (6,338 | ) | ||||
Foreign subsidiaries | (1,020 | ) | (173 | ) | (238 | ) | |||||||
Loss from continuing operations before income taxes | $ | (5,797 | ) | $ | (6,947 | ) | $ | (6,576 | ) | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For the year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States statutory rate | 34 | % | 34 | % | 34 | % | |||||||
State taxes (net of federal tax benefit) | 0.8 | 1.3 | 1.8 | ||||||||||
Valuation allowance | (18.1 | ) | (19.6 | ) | (27.8 | ) | |||||||
Interest amortization expense | (18.4 | ) | (6.3 | ) | (3.4 | ) | |||||||
Other | 1.7 | (9.4 | ) | (4.6 | ) | ||||||||
0 | % | 0 | % | 0 | % | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | At December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Allowance for doubtful accounts | $ | 11 | $ | 15 | $ | 53 | |||||||
Accrued expenses and other reserves | 2,144 | 2,048 | 2,197 | ||||||||||
Tax credits, deferred R&D, and other | 647 | 748 | 907 | ||||||||||
Net operating loss | 8,685 | 5,535 | 25,980 | ||||||||||
Valuation allowance | (11,485 | ) | (8,344 | ) | (29,135 | ) | |||||||
Net deferred tax assets | $ | 2 | $ | 2 | $ | 2 |
Note_15_Segments_and_Geographi1
Note 15 - Segments and Geographic Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Solutions: | |||||||||||||
Net sales | $ | 3,689 | $ | 9,847 | $ | 10,569 | |||||||
Cost of sales | 2,969 | 8,361 | 9,150 | ||||||||||
Gross profit | 720 | 1,486 | 1,419 | ||||||||||
Operating expenses: | |||||||||||||
Selling, general, and administrative | 1,199 | 2,036 | 2,081 | ||||||||||
Loss on impairment | - | 325 | 672 | ||||||||||
Total operating expenses | 1,199 | 2,361 | 2,753 | ||||||||||
Segment loss | $ | (479 | ) | $ | (875 | ) | $ | (1,334 | ) | ||||
Products: | |||||||||||||
Net sales | $ | 25,273 | $ | 11,686 | $ | 12,806 | |||||||
Cost of sales | 16,625 | 8,593 | 10,253 | ||||||||||
Gross profit | 8,648 | 3,093 | 2,553 | ||||||||||
Operating expenses (income): | |||||||||||||
Research and development | 326 | 597 | 368 | ||||||||||
Selling, general, and administrative | 4,753 | 2,725 | 2,632 | ||||||||||
Loss on impairment | - | 608 | - | ||||||||||
Restructuring | - | 80 | - | ||||||||||
Total operating expenses | 5,079 | 4,010 | 3,000 | ||||||||||
Segment income (loss) | $ | 3,569 | $ | (917 | ) | $ | (447 | ) | |||||
Reconciliation of segment loss to net loss: | |||||||||||||
Segment (income) loss: | |||||||||||||
Solutions | $ | (479 | ) | $ | (875 | ) | $ | (1,334 | ) | ||||
Products | 3,569 | (917 | ) | (447 | ) | ||||||||
Total segment income (loss) | 3,090 | (1,792 | ) | (1,781 | ) | ||||||||
Operating expenses: | |||||||||||||
Research and development | 709 | - | - | ||||||||||
Selling, general, and administrative | 4,958 | 4,953 | 4,231 | ||||||||||
Change in estimate of contingent liabilities | - | 12 | (102 | ) | |||||||||
Total operating expenses | 5,667 | 4,965 | 4,129 | ||||||||||
Other expenses | (3,220 | ) | (190 | ) | (666 | ) | |||||||
Loss before income taxes from continuing operations | (5,797 | ) | (6,947 | ) | (6,576 | ) | |||||||
Benefit from income taxes | 2 | - | - | ||||||||||
Net loss from continuing operations | $ | (5,795 | ) | $ | (6,947 | ) | $ | (6,576 | ) | ||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Products segment net sales: | |||||||||||||
Commercial | $ | 5,984 | $ | 5,966 | $ | 8,486 | |||||||
Government | 19,214 | 3,678 | 2,534 | ||||||||||
R&D services | 75 | 2,042 | 1,786 | ||||||||||
Total products segment net sales | $ | 25,273 | $ | 11,686 | $ | 12,806 | |||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | For the year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States Domestic | $ | 26,356 | $ | 19,136 | $ | 20,363 | |||||||
International | 2,606 | 2,397 | 3,012 | ||||||||||
Total net sales | $ | 28,962 | $ | 21,533 | $ | 23,375 | |||||||
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | At December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
United States | $ | 456 | $ | 582 | |||||||||
International | 23 | 9 | |||||||||||
Long-lived assets, net | $ | 479 | $ | 591 |
Supplementary_Financial_Inform1
Supplementary Financial Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | 2014 | Fourth | Third | Second | First | ||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Net sales from continuing operations | $ | 9,454 | $ | 7,890 | $ | 6,699 | $ | 4,919 | |||||||||
Gross profit from continuing operations | 3,214 | 2,558 | 2,174 | 1,422 | |||||||||||||
Net loss from continuing operations | (720 | ) | (403 | ) | (622 | ) | (4,050 | ) | |||||||||
Net (loss) income from discontinued operations | (30 | ) | 0 | 0 | (20 | ) | |||||||||||
Net loss | (750 | ) | (403 | ) | (622 | ) | (4,070 | ) | |||||||||
Net loss per share: | |||||||||||||||||
Basic | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.08 | ) | $ | (0.79 | ) | |||||
Diluted | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.08 | ) | $ | (0.79 | ) | |||||
2013 | Fourth | Third | Second | First | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Net sales from continuing operations | $ | 6,595 | $ | 4,827 | $ | 5,653 | $ | 4,458 | |||||||||
Gross profit from continuing operations | 1,528 | 930 | 1,238 | 883 | |||||||||||||
Net loss from continuing operations | (2,459 | ) | (1,870 | ) | (1,162 | ) | (1,456 | ) | |||||||||
Net income from discontinued operations | 3,856 | 219 | 483 | 28 | |||||||||||||
Net income (loss) | 1,397 | (1,651 | ) | (679 | ) | (1,428 | ) | ||||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | 0.27 | $ | (0.34 | ) | $ | (0.15 | ) | $ | (0.32 | ) | ||||||
Diluted | $ | 0.17 | $ | (0.34 | ) | $ | (0.15 | ) | $ | (0.32 | ) |
Note_1_Nature_of_Operations_De
Note 1 - Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block [Abstract] | |
Number of Reportable Segments | 2 |
Note_2_Summary_of_Significant_2
Note 2 - Summary of Significant Accounting Policies (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 26, 2014 | Jul. 16, 2014 | Dec. 31, 2014 | Jul. 17, 2014 | Dec. 31, 2011 | |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Common Stock, Shares, Outstanding (in Shares) | 5,142,194 | 9,423,975 | 5,142,194 | 9,423,975 | 8,024,813 | ||||||
Common Stock, Shares, Issued (in Shares) | 5,142,194 | 9,423,975 | 5,142,194 | 9,423,975 | 8,024,813 | ||||||
Common Stock, Shares Authorized (in Shares) | 15,000,000 | 15,000,000 | 15,000,000 | 150,000,000 | 15,000,000 | 15,000,000 | |||||
Cash and Cash Equivalents, at Carrying Value | $2,860,000 | $7,531,000 | $2,860,000 | $1,181,000 | 7,531,000 | $2,136,000 | |||||
Restricted Cash and Cash Equivalents | 94,000 | 105,000 | 94,000 | 252,000 | 105,000 | ||||||
Escrow Deposit | 500,000 | 300,000 | 500,000 | 300,000 | |||||||
Inventory Adjustments | 109,000 | 95,000 | 109,000 | 111,000 | 95,000 | ||||||
Contract Receivable Retainage | 577,000 | 0 | 577,000 | 0 | |||||||
Operating Loss Carryforwards | 75,400,000 | 75,400,000 | |||||||||
Cash Collateral for Borrowed Securities | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | |||||||
Goodwill, Impairment Loss | 672,000 | ||||||||||
Impairment of Long-Lived Assets to be Disposed of | 608,000 | 608,000 | |||||||||
Proceeds from Sale of Property, Plant, and Equipment | 130,000 | ||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 818,832 | 1,955,809 | 1,138,280 | ||||||||
Advertising Expense | 292,000 | 112,000 | 164,000 | ||||||||
Available After IRC Section 382 Limitations [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Operating Loss Carryforwards | 23,900,000 | 23,900,000 | |||||||||
Trade Names [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Impairment of Intangible Assets, Finite-lived | 325,000 | 325,000 | |||||||||
Deposit with a European Bank [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Cash and Cash Equivalents, at Carrying Value | $4,000 | 4,000 | |||||||||
Reverse Stock Split [Member] | Minimum [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 7 | ||||||||||
Reverse Stock Split [Member] | Maximum [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 15 | ||||||||||
Reverse Stock Split [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 10 | ||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Concentration Risk, Percentage | 93.00% | 58.00% | |||||||||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Concentration Risk, Percentage | 67.10% | 36.00% | 42.00% | ||||||||
Minimum [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Contract Receivable Retainage Percentage | 5.00% | ||||||||||
Property, Plant and Equipment, Useful Life | 2 years | ||||||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||||||||
Maximum [Member] | |||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||||
Contract Receivable Retainage Percentage | 10.00% | ||||||||||
Property, Plant and Equipment, Useful Life | 15 years | ||||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Note_2_Summary_of_Significant_3
Note 2 - Summary of Significant Accounting Policies (Details) - Reconciliation of Basic and Diluted Loss per Share (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic and diluted loss per share: | |||||||||||
Net loss | ($4,070) | ($622) | ($403) | ($750) | ($1,428) | ($679) | ($1,651) | $1,397 | ($5,845) | ($2,361) | ($5,709) |
Weighted average shares outstanding | 7,816 | 4,779 | 4,132 | ||||||||
Basic and diluted loss per share | ($0.75) | ($0.49) | ($1.38) |
Note_2_Summary_of_Significant_4
Note 2 - Summary of Significant Accounting Policies (Details) - Warranty Activity (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Warranty Activity [Abstract] | ||
Balance at the beginning of the year | $75 | $159 |
Accruals for warranties issued | 183 | 60 |
Settlements made during the year (in cash or in kind) | -70 | -144 |
Accrued warranty expense | $188 | $75 |
Note_3_Discontinued_Operations2
Note 3 - Discontinued Operations (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 25, 2014 | Dec. 31, 2012 | Nov. 26, 2013 | |
Note 3 - Discontinued Operations (Details) [Line Items] | |||||
Escrow Deposit | $300,000 | $500,000 | |||
Proceeds from Divestiture of Businesses | -30,000 | 4,816,000 | |||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | -30,000 | 3,915,000 | |||
Released from Escrow [Member] | Pool and Commercial Products [Member] | |||||
Note 3 - Discontinued Operations (Details) [Line Items] | |||||
Proceeds from Divestiture of Businesses | 100,000 | ||||
Uncertainty on the Collection of Escrow [Member] | Pool and Commercial Products [Member] | |||||
Note 3 - Discontinued Operations (Details) [Line Items] | |||||
Escrow Deposit | 300,000 | ||||
Pool and Commercial Products [Member] | |||||
Note 3 - Discontinued Operations (Details) [Line Items] | |||||
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | 5,200,000 | 5,200,000 | |||
Escrow Deposit | 500,000 | ||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | -30,000 | 3,915,000 | |||
Disposal Group, Including Discontinued Operation, Revenue | 0 | 4,500,000 | 6,500,000 | ||
Disposal Group, Including Discontinued Operation, Operating Expense | $20,000 | $3,800,000 | $5,600,000 |
Note_3_Discontinued_Operations3
Note 3 - Discontinued Operations (Details) - Sale of Discontinued Operations (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 26, 2013 |
Plus: | |||
(Loss) gain on sale of discontinued operations | ($30) | $3,915 | |
Pool and Commercial Products [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale | 5,200 | 5,200 | |
Less: | |||
Trade accounts receivable, net | 554 | ||
Inventories, net | 721 | ||
Prepaid and other current assets | 109 | ||
Property and equipment, net | 73 | ||
Transaction costs | 30 | 395 | |
Plus: | |||
Accounts payable | 269 | ||
Accrued liabilities | 298 | ||
(Loss) gain on sale of discontinued operations | ($30) | $3,915 |
Note_4_Inventories_Details_Inv
Note 4 - Inventories (Details) - Inventories (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ||
Raw materials | $3,183 | $1,611 |
Finished goods | 4,100 | 899 |
Inventories, net | $7,283 | $2,510 |
Note_5_Property_and_Equipment_2
Note 5 - Property and Equipment and Assets Held for Sale (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $226 | $660 | $637 | |
Impairment of Long-Lived Assets to be Disposed of | 608 | 608 | ||
Proceeds from Sale of Property, Plant, and Equipment | $130 |
Note_5_Property_and_Equipment_3
Note 5 - Property and Equipment and Assets Held for Sale (Details) - Property and Equipment (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment at cost | $3,494 | $4,083 |
Less: accumulated depreciation | -3,015 | -3,547 |
Property and equipment, net | 479 | 536 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment at cost | 1,495 | 2,080 |
Tooling [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment at cost | 865 | 769 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment at cost | 92 | 115 |
Software and Software Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment at cost | 452 | 521 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment at cost | 572 | 589 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment at cost | $18 | $9 |
Note_5_Property_and_Equipment_4
Note 5 - Property and Equipment and Assets Held for Sale (Details) - Property and Equipment (Parentheticals) | 12 Months Ended | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | |
Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 3 years | 3 years | |
Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 15 years | 15 years | |
Tooling [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 2 years | 2 years | |
Tooling [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | 5 years | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | 5 years | |
Software and Software Development Costs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 3 years | 3 years | |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 2 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 15 years |
Note_6_Intangible_Assets_Detai
Note 6 - Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $55 | $228 | $419 |
Note_6_Intangible_Assets_Detai1
Note 6 - Intangible Assets (Details) - Summary of Net Carrying Value of Intangible Assets (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Customer relationships | $55 | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Customer relationships | 5 years | |
Customer relationships | $55 |
Note_7_Accrued_Liabilities_Det
Note 7 - Accrued Liabilities (Details) - Accrued Liabilities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accrued Liabilities [Abstract] | |||
Accrued sales commissions and incentives | $245 | $280 | |
Accrued warranty expense | 188 | 75 | 159 |
Accrued legal and professional fees | 132 | 50 | |
Accrued payroll and related benefits | 541 | 299 | |
Separation accrual | 251 | 247 | |
Accrued taxes | 9 | 137 | |
Accrued other expenses | 31 | 130 | |
Total accrued liabilities | $1,397 | $1,218 |
Note_8_Contracts_in_Progress_D
Note 8 - Contracts in Progress (Details) - Summary of Costs and Estimated Earnings on Contracts in Progress (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Summary of Costs and Estimated Earnings on Contracts in Progress [Abstract] | ||
Costs incurred on umcompleted contracts | $6,707 | $7,347 |
Estimated earnings | 1,507 | 1,603 |
8,214 | 8,950 | |
Less: billings to date | 8,237 | 9,569 |
Total | -23 | -619 |
Balance sheet classification: | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 145 | |
Billings in excess of costs and estimated earnings on uncompleted contracts | -23 | -764 |
Total | ($23) | ($619) |
Note_9_Debt_Details
Note 9 - Debt (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||
Dec. 22, 2011 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Sep. 30, 2014 | |
Note 9 - Debt (Details) [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $4,500,000 | |||||
Line of Credit Facility Available Percentage of Receivables | 85.00% | |||||
Line of Credit Facility, Commitment Fee Percentage | 1.00% | |||||
Debt Conversion, Converted Instrument, Amount | 6,145,000 | 1,500,000 | ||||
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 3,300,000 | |||||
Induced Conversion of Convertible Debt Expense | 2,700,000 | |||||
Debtor Reorganization Items, Write-off of Deferred Financing Costs and Debt Discounts | 2,287,000 | 204,000 | ||||
Interest Expense, Debt | 154,000 | |||||
Write off of Deferred Debt Issuance Cost | 293,000 | |||||
Unsecured Convertible Notes [Member] | Common Stock [Member] | ||||||
Note 9 - Debt (Details) [Line Items] | ||||||
Debt Conversion, Converted Instrument, Amount | 6,150,000 | |||||
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 2,671,739 | |||||
Convertible Debt [Member] | ||||||
Note 9 - Debt (Details) [Line Items] | ||||||
Debt Conversion, Converted Instrument, Additional Interest Rate | 5.00% | |||||
Cognovit Note - Keystone Ruby, LLC [Member] | ||||||
Note 9 - Debt (Details) [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||
Unsecured Promissory Note - Quercus Trust [Member] | ||||||
Note 9 - Debt (Details) [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |||||
Cash Equivalents [Member] | Revolving Credit Facility [Member] | ||||||
Note 9 - Debt (Details) [Line Items] | ||||||
Long-term Line of Credit | -218,000 | |||||
Percentage of Inventory, Lower of Cost or Market Value [Member] | ||||||
Note 9 - Debt (Details) [Line Items] | ||||||
Line of Credit Facility Available Threshold Percent | 50.00% | |||||
Inventory, Maximum Value [Member] | ||||||
Note 9 - Debt (Details) [Line Items] | ||||||
Line of Credit Facility Available Threshold Value | 250,000 | |||||
Borrowing on Accounts Receivable [Member] | ||||||
Note 9 - Debt (Details) [Line Items] | ||||||
Line of Credit Facility, Interest Rate During Period | 8.50% | |||||
Borrowing on Inventories [Member] | ||||||
Note 9 - Debt (Details) [Line Items] | ||||||
Line of Credit Facility, Interest Rate During Period | 10.00% | |||||
Borrowing on Overdrafts [Member] | ||||||
Note 9 - Debt (Details) [Line Items] | ||||||
Line of Credit Facility, Interest Rate During Period | 13.00% | |||||
Revolving Credit Facility [Member] | ||||||
Note 9 - Debt (Details) [Line Items] | ||||||
Long-term Line of Credit | 453,000 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | 2,300,000 | |||||
Line of Credit [Member] | Credit Line Borrowings [Member] | Subsidiaries [Member] | UNITED KINGDOM | ||||||
Note 9 - Debt (Details) [Line Items] | ||||||
Long-term Line of Credit | $0 | $0 | ||||
Line of Credit [Member] | Subsidiaries [Member] | UNITED KINGDOM | ||||||
Note 9 - Debt (Details) [Line Items] | ||||||
Line of Credit Facility, Available Percent of Eligible Sales | 80.00% | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.02% |
Note_9_Debt_Details_Summary_of
Note 9 - Debt (Details) - Summary of Debt Components (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Discounts on long-term debt (4) | [1] | ($2,368) | [1] | |
Long-term debt | 70 | 4,070 | ||
Less: current maturities of long-term debt | 0 | -59 | ||
Long-term debt, net of current maturities | 70 | 4,011 | ||
Unsecured Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instruments | [2] | 6,145 | [2] | |
Cognovit Note - Keystone Ruby, LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instruments | [3] | 223 | [3] | |
Unsecured Promissory Note - Quercus Trust [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instruments | $70 | [4] | $70 | [4] |
[1] | 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 as described in (1) above, and $293 thousand to write-off the remaining loan origination costs incurred in connection with the convertible notes. | |||
[2] | 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. | |||
[3] | At December 31, 2014, the remaining balance on the cognovit note - Keystone Ruby, LLC, had been repaid in full. The note matured on April 1, 2017 and accrued interest at a rate of 10 percent. | |||
[4] | Note matures on June 1, 2109 and bears interest at 1 percent. |
Note_9_Debt_Details_Future_Mat
Note 9 - Debt (Details) - Future Maturities of Remaining Borrowings (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Future Maturities of Remaining Borrowings [Abstract] | ||
2015 | $0 | |
2016 | 0 | |
2017 | 0 | |
2018 | 0 | |
2019 and thereafter | 70 | |
Long-term debt | 70 | 4,070 |
Less: current maturities of long-term debt | 0 | -59 |
Long-term debt, net of current maturities | $70 | $4,011 |
Note_10_Restructuring_Details
Note 10 - Restructuring (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 |
Restructuring and Related Activities [Abstract] | ||
Restructuring Charges | $80 | $80 |
Note_11_Settlement_of_Acquisit2
Note 11 - Settlement of Acquisition Obligations (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2009 |
Note 11 - Settlement of Acquisition Obligations (Details) [Line Items] | |||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $102 | $12 | ($102) | ||||
Due from Related Parties | 78 | ||||||
Adjustment to Contingent Consideration | 66 | ||||||
Business Combination, Contingent Consideration, Payout Payable | 2.50% | ||||||
Special Fee [Member] | Stone River Companies, LLC [Member] | |||||||
Note 11 - Settlement of Acquisition Obligations (Details) [Line Items] | |||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 500 | ||||||
Trade Names [Member] | |||||||
Note 11 - Settlement of Acquisition Obligations (Details) [Line Items] | |||||||
Impairment of Intangible Assets, Finite-lived | 325 | 325 | |||||
Principal [Member] | Stone River Companies, LLC [Member] | |||||||
Note 11 - Settlement of Acquisition Obligations (Details) [Line Items] | |||||||
Extinguishment of Debt, Amount | 500 | ||||||
Accrued Interest [Member] | Stone River Companies, LLC [Member] | |||||||
Note 11 - Settlement of Acquisition Obligations (Details) [Line Items] | |||||||
Extinguishment of Debt, Amount | 92 | ||||||
Stone River Companies, LLC [Member] | |||||||
Note 11 - Settlement of Acquisition Obligations (Details) [Line Items] | |||||||
Business Combination, Consideration Transferred | $200 | ||||||
Business Combination, Contingent Consideration, Payout Payable | 2.50% |
Note_11_Settlement_of_Acquisit3
Note 11 - Settlement of Acquisition Obligations (Details) - Classification in Consolidated Statement of Operations (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in estimate of contingent liabilities: | |||
Change in estimate of contingent liabilities | $102 | $12 | ($102) |
Settlement of acquisition obligations: | |||
Settlement of acquisition obligations | 892 | ||
Forgiveness of Net Receivable Due the Company [Member] | |||
Change in estimate of contingent liabilities: | |||
Change in estimate of contingent liabilities | 78 | ||
Adjustment to Performance Related Contingent Obligation [Member] | |||
Change in estimate of contingent liabilities: | |||
Change in estimate of contingent liabilities | -66 | -102 | |
Special Fee [Member] | |||
Settlement of acquisition obligations: | |||
Settlement of acquisition obligations | 500 | ||
Convertible Promissory Note TLC Investments LLC [Member] | |||
Settlement of acquisition obligations: | |||
Settlement of acquisition obligations | 592 | ||
Cash Payment by the Company [Member] | |||
Settlement of acquisition obligations: | |||
Settlement of acquisition obligations | ($200) |
Note_12_Commitments_and_Contin2
Note 12 - Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 36 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | Jun. 30, 2013 |
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||||||
Operating Leases, Rent Expense | $439 | $502 | $476 | ||||
Business Combination, Contingent Consideration, Payout Payable | 2.50% | ||||||
Business Combination, Contingent Consideration, Liability | 728 | 728 | |||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 102 | 12 | -102 | ||||
Adjustment to Contingent Consideration | 66 | ||||||
Special Fee [Member] | Stone River Companies, LLC [Member] | |||||||
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 500 | ||||||
Principal [Member] | Stone River Companies, LLC [Member] | |||||||
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||||||
Extinguishment of Debt, Amount | 500 | ||||||
Accrued Interest [Member] | Stone River Companies, LLC [Member] | |||||||
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||||||
Extinguishment of Debt, Amount | 92 | ||||||
Stone River Companies, LLC [Member] | |||||||
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||||||
Business Combination, Contingent Consideration, Payout Payable | 2.50% | ||||||
Business Combination, Contingent Consideration, Liability | 500 | ||||||
Business Combination Contingent Consideration Stock Triger Price (in Dollars per share) | $2 | ||||||
Payments for (Proceeds from) Previous Acquisition | $206 | $186 |
Note_12_Commitments_and_Contin3
Note 12 - Commitments and Contingencies (Details) - Future Minimum Non-cancelable Lease Commitments (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Future Minimum Non-cancelable Lease Commitments [Abstract] | |
2015 | $442 |
2016 | 440 |
2017 | 276 |
2018 | 176 |
2019 and thereafter | 131 |
Total commitment | $1,465 |
Note_13_Stockholders_Equity_De
Note 13 - Stockholders' Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 10 Months Ended | 1 Months Ended | |||||
Aug. 06, 2014 | Mar. 02, 2012 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2014 | Sep. 30, 2013 | Nov. 30, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2011 | 6-May-14 | |
Note 13 - Stockholders' Equity (Details) [Line Items] | |||||||||||||
Stock Issued During Period, Shares, New Issues | 1,175,000 | ||||||||||||
Share Price (in Dollars per share) | $4.50 | $4.93 | |||||||||||
Additional Shares of Common Stock Purchasable | 176,250 | ||||||||||||
Proceeds from Issuance of Common Stock (in Dollars) | $5,150,000 | $5,952,000 | $4,801,000 | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 47,000 | ||||||||||||
Warrant Issuance of Common Stock Sold, Percent | 4.00% | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $5.40 | $4.61 | $4.41 | $7.60 | $14.17 | ||||||||
Warrant Issuance Price of Share Price, Percent | 120.00% | ||||||||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | 2.3 | ||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 3,300,000 | ||||||||||||
Proceeds from Issuance of Private Placement (in Dollars) | 4,900,000 | ||||||||||||
Units Sold in Private Placement | 1,960,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 2,439 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 387,000 | 189,000 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 219 days | 1 year 109 days | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | 29,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars) | 332,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value (in Dollars) | 246,000 | ||||||||||||
Restricted Stock [Member] | |||||||||||||
Note 13 - Stockholders' Equity (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 5,122 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 1,463 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 35,869 | 5,592 | 1,220 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $4.10 | ||||||||||||
Employee Stock Option [Member] | Minimum [Member] | |||||||||||||
Note 13 - Stockholders' Equity (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||||||||||
Employee Stock Option [Member] | Maximum [Member] | |||||||||||||
Note 13 - Stockholders' Equity (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||||||||
Employee Severance [Member] | |||||||||||||
Note 13 - Stockholders' Equity (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 1 year | 3 months | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number | 7,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value (in Dollars per share) | $2.30 | ||||||||||||
Unsecured Convertible Notes [Member] | |||||||||||||
Note 13 - Stockholders' Equity (Details) [Line Items] | |||||||||||||
Debt Instrument, Face Amount (in Dollars) | 7,600,000 | ||||||||||||
Employee Stock Purcahse Plan 2013 [Member] | |||||||||||||
Note 13 - Stockholders' Equity (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 9,932 | 17,655 | 18,552 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 484,000 | ||||||||||||
Minimum [Member] | 2014 Plan [Member] | |||||||||||||
Note 13 - Stockholders' Equity (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||||||||
Maximum [Member] | 2014 Plan [Member] | |||||||||||||
Note 13 - Stockholders' Equity (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||||||||
Non-employee Directors [Member] | 2014 Plan [Member] | |||||||||||||
Note 13 - Stockholders' Equity (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||||||||||
2014 Plan [Member] | |||||||||||||
Note 13 - Stockholders' Equity (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 600,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||||||
Largest Single Investor [Member] | |||||||||||||
Note 13 - Stockholders' Equity (Details) [Line Items] | |||||||||||||
Proceeds from Issuance of Private Placement (in Dollars) | $1,000,000 |
Note_13_Stockholders_Equity_De1
Note 13 - Stockholders' Equity (Details) - Warrants Activity (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 06, 2014 |
Warrants Activity [Abstract] | ||||
Balance, December 31 | 1,107,549 | 1,305,638 | 325,638 | |
Balance, December 31 | $4.41 | $7.60 | $14.17 | $5.40 |
Exercisable, December 31, 2014 | 822,549 | |||
Exercisable, December 31, 2014 | $4.60 | |||
Warrants issued | 147,000 | 2,549 | 980,000 | |
Warrants issued | $4.65 | $3.49 | $5.40 | |
Warrants exercised | -285,000 | |||
Warrants exercised | $3.87 | |||
Warrants expired | -200,638 | |||
Warrants expired | $19.70 | |||
Balance, December 31 | 969,549 | 1,107,549 | 1,305,638 | |
Balance, December 31 | $4.61 | $4.41 | $7.60 | $5.40 |
Note_13_Stockholders_Equity_De2
Note 13 - Stockholders' Equity (Details) - Warrants Outstanding (USD $) | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Aug. 06, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Class of Warrant or Right [Line Items] | |||||
Exercise price (in Dollars per share) | $4.61 | $5.40 | $4.41 | $7.60 | $14.17 |
Warrants outstanding, number of shares outstanding | 969,549 | 1,107,549 | 1,305,638 | 325,638 | |
Warrants outstanding, weighted average remaining contractual life | 255 days | ||||
Warrants exercisable, number of shares exercisable | 822,549 | ||||
Warrants exercisable, weighted average exercise price (in Dollars per share) | $4.60 | ||||
Exercise Price Range One [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price (in Dollars per share) | $0.10 | ||||
Warrants outstanding, number of shares outstanding | 5,000 | ||||
Warrants outstanding, weighted average remaining contractual life | 73 days | ||||
Warrants exercisable, number of shares exercisable | 5,000 | ||||
Warrants exercisable, weighted average exercise price (in Dollars per share) | $0.10 | ||||
Exercise Price Range Two [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price (in Dollars per share) | $3.49 | ||||
Warrants outstanding, number of shares outstanding | 2,549 | ||||
Warrants outstanding, weighted average remaining contractual life | 1 year 328 days | ||||
Warrants exercisable, number of shares exercisable | 2,549 | ||||
Warrants exercisable, weighted average exercise price (in Dollars per share) | $3.49 | ||||
Exercise Price Range Three [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price (in Dollars per share) | $4.30 | ||||
Warrants outstanding, number of shares outstanding | 880,000 | ||||
Warrants outstanding, weighted average remaining contractual life | 6 months | ||||
Warrants exercisable, number of shares exercisable | 780,000 | ||||
Warrants exercisable, weighted average exercise price (in Dollars per share) | $4.30 | ||||
Exercise Price Range Four [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price (in Dollars per share) | $5.40 | ||||
Warrants outstanding, number of shares outstanding | 47,000 | ||||
Warrants outstanding, weighted average remaining contractual life | 4 years 219 days | ||||
Exercise Price Range Five [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price (in Dollars per share) | $12 | ||||
Warrants outstanding, number of shares outstanding | 35,000 | ||||
Warrants outstanding, weighted average remaining contractual life | 73 days | ||||
Warrants exercisable, number of shares exercisable | 35,000 | ||||
Warrants exercisable, weighted average exercise price (in Dollars per share) | $12 |
Note_13_Stockholders_Equity_De3
Note 13 - Stockholders' Equity (Details) - Impact on Results for Stock-based Compensation (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | $532 | $201 | $200 |
Cost of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 14 | 5 | |
Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 8 | 28 | 27 |
Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | $510 | $168 | $173 |
Note_13_Stockholders_Equity_De4
Note 13 - Stockholders' Equity (Details) - Stock Option Fair Value Measurement Assumptions (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Option Fair Value Measurement Assumptions [Abstract] | |||
Fair value of options issued (in Dollars per share) | $3.62 | $2.15 | $4.70 |
Exercise price (in Dollars per share) | $4.69 | $2.99 | $8.60 |
Expected life of option (in years) | 5 years 255 days | 7 years | 5 years 219 days |
Risk-free interest rate | 1.80% | 1.40% | 0.80% |
Expected volatility | 97.90% | 92.00% | 59.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Note_13_Stockholders_Equity_De5
Note 13 - Stockholders' Equity (Details) - Option Activity (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Option Activity [Abstract] | |||
Options outstanding | 286,188 | 218,458 | 231,850 |
Options outstanding, weighted average exercise price per share | $15.30 | $22 | $22.80 |
Vested and expected to vest at December 31, 2014 | 425,890 | ||
Vested and expected to vest at December 31, 2014 | $7.99 | ||
Exercisable at December 31, 2014 | 269,079 | ||
Exercisable at December 31, 2014 | $11.79 | ||
Options granted | 326,250 | 207,950 | 12,000 |
Options granted, weighted average exercise price per share | $4.76 | $3.15 | $2.70 |
Options cancelled | -145,873 | -138,220 | -25,392 |
Options cancelled, weighted average exercise price per share | $12.38 | $7.74 | $22.20 |
Options exercised | -7,294 | -2,000 | |
Options exercised, weighted average exercise price per share | $2.30 | $5.15 | |
Options outstanding | 459,271 | 286,188 | 218,458 |
Options outstanding, weighted average exercise price per share | $8.95 | $15.30 | $22 |
Note_13_Stockholders_Equity_De6
Note 13 - Stockholders' Equity (Details) - Options Outstanding and Exercisable (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Note 13 - Stockholders' Equity (Details) - Options Outstanding and Exercisable [Line Items] | |
Number of options outstanding (in Shares) | 459,271 |
Weighted average remaining contractual life | 8 years 36 days |
Weighted average exercise price | $8.95 |
Number of shares exercisable (in Shares) | 269,079 |
Options exercisable, weighted average remaining contractual life | 7 years 146 days |
Options exercisable, weighted average exercise price | $11.79 |
Exercise Price Range One [Member] | |
Note 13 - Stockholders' Equity (Details) - Options Outstanding and Exercisable [Line Items] | |
Range of exercise prices, lower limit | $2.30 |
Range of exercise prices, upper limit | $3.90 |
Number of options outstanding (in Shares) | 73,464 |
Weighted average remaining contractual life | 8 years 73 days |
Weighted average exercise price | $2.34 |
Number of shares exercisable (in Shares) | 66,575 |
Options exercisable, weighted average remaining contractual life | 8 years 73 days |
Options exercisable, weighted average exercise price | $2.33 |
Exercise Price Range Two [Member] | |
Note 13 - Stockholders' Equity (Details) - Options Outstanding and Exercisable [Line Items] | |
Range of exercise prices, lower limit | $4.10 |
Range of exercise prices, upper limit | $4.10 |
Number of options outstanding (in Shares) | 166,250 |
Weighted average remaining contractual life | 9 years |
Weighted average exercise price | $4.10 |
Number of shares exercisable (in Shares) | 84,722 |
Options exercisable, weighted average remaining contractual life | 9 years |
Options exercisable, weighted average exercise price | $4.10 |
Exercise Price Range Three [Member] | |
Note 13 - Stockholders' Equity (Details) - Options Outstanding and Exercisable [Line Items] | |
Range of exercise prices, lower limit | $4.50 |
Range of exercise prices, upper limit | $5.90 |
Number of options outstanding (in Shares) | 96,156 |
Weighted average remaining contractual life | 9 years |
Weighted average exercise price | $5.31 |
Number of shares exercisable (in Shares) | 35,263 |
Options exercisable, weighted average remaining contractual life | 9 years 73 days |
Options exercisable, weighted average exercise price | $4.99 |
Exercise Price Range Four [Member] | |
Note 13 - Stockholders' Equity (Details) - Options Outstanding and Exercisable [Line Items] | |
Range of exercise prices, lower limit | $5.95 |
Range of exercise prices, upper limit | $7.60 |
Number of options outstanding (in Shares) | 53,250 |
Weighted average remaining contractual life | 9 years |
Weighted average exercise price | $6.32 |
Number of shares exercisable (in Shares) | 12,732 |
Options exercisable, weighted average remaining contractual life | 6 years 255 days |
Options exercisable, weighted average exercise price | $6.89 |
Exercise Price Range Five [Member] | |
Note 13 - Stockholders' Equity (Details) - Options Outstanding and Exercisable [Line Items] | |
Range of exercise prices, lower limit | $10.20 |
Range of exercise prices, upper limit | $96 |
Number of options outstanding (in Shares) | 70,151 |
Weighted average remaining contractual life | 3 years 328 days |
Weighted average exercise price | $34.35 |
Number of shares exercisable (in Shares) | 69,787 |
Options exercisable, weighted average remaining contractual life | 3 years 328 days |
Options exercisable, weighted average exercise price | $34.47 |
Note_13_Stockholders_Equity_De7
Note 13 - Stockholders' Equity (Details) - Restricted Stock Activity (Restricted Stock [Member], USD $) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | |
Restricted Stock [Member] | ||||
Note 13 - Stockholders' Equity (Details) - Restricted Stock Activity [Line Items] | ||||
Restricted stock outstanding | 35,869 | 41,461 | 41,461 | |
Restricted stock outstanding , weighted average grant date fair value | $7.31 | $7.31 | $7.31 | |
Restricted stock, vested | -1,220 | -35,869 | -5,592 | |
Restricted stock, vested, weighted average grant date fair value | $7.31 | $7.31 | ||
Restricted stock outstanding | 35,869 | 41,461 | ||
Restricted stock outstanding , weighted average grant date fair value | $7.31 | $7.31 |
Note_14_Income_Taxes_Details
Note 14 - Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 14 - Income Taxes (Details) [Line Items] | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $0 | $0 | |
Deferred Tax Assets, Net | 2,000 | 2,000 | 2,000 |
Deferred Tax Liabilities, Net | 0 | 0 | |
Current State and Local Tax Expense (Benefit) | -2,000 | ||
Operating Loss Carryforwards | 75,400,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 51,500,000 | ||
Available After IRC Section 382 Limitations [Member] | |||
Note 14 - Income Taxes (Details) [Line Items] | |||
Operating Loss Carryforwards | 23,900,000 | ||
Subject to Expiration [Member] | Research Tax Credit Carryforward [Member] | |||
Note 14 - Income Taxes (Details) [Line Items] | |||
Tax Credit Carryforward, Amount | $299,000 |
Note_14_Income_Taxes_Details_B
Note 14 - Income Taxes (Details) - Benefit from (Provision for) Income Taxes (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Current: | |
State | $2 |
Benefit from income taxes | $2 |
Note_14_Income_Taxes_Details_G
Note 14 - Income Taxes (Details) - Geographic Components of Pretax Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Geographic Components of Pretax Income (Loss) [Abstract] | |||
United States | ($4,777) | ($6,774) | ($6,338) |
Foreign subsidiaries | -1,020 | -173 | -238 |
Loss from continuing operations before income taxes | ($5,797) | ($6,947) | ($6,576) |
Note_14_Income_Taxes_Details_I
Note 14 - Income Taxes (Details) - Income Tax Reconciliation | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Reconciliation [Abstract] | |||
United States statutory rate | 34.00% | 34.00% | 34.00% |
State taxes (net of federal tax benefit) | 0.80% | 1.30% | 1.80% |
Valuation allowance | -18.10% | -19.60% | -27.80% |
Interest amortization expense | -18.40% | -6.30% | -3.40% |
Other | 1.70% | -9.40% | -4.60% |
0.00% | 0.00% | 0.00% |
Note_14_Income_Taxes_Details_D
Note 14 - Income Taxes (Details) - Deferred Tax Assets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Deferred Tax Assets [Abstract] | |||
Allowance for doubtful accounts | $11 | $15 | $53 |
Accrued expenses and other reserves | 2,144 | 2,048 | 2,197 |
Tax credits, deferred R&D, and other | 647 | 748 | 907 |
Net operating loss | 8,685 | 5,535 | 25,980 |
Valuation allowance | -11,485 | -8,344 | -29,135 |
Net deferred tax assets | $2 | $2 | $2 |
Note_15_Segments_and_Geographi2
Note 15 - Segments and Geographic Information (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Note_15_Segments_and_Geographi3
Note 15 - Segments and Geographic Information (Details) - Summary of Reportable Segment Data (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Net sales | $4,919 | $6,699 | $7,890 | $9,454 | $4,458 | $5,653 | $4,827 | $6,595 | $28,962 | $21,533 | $23,375 | |
Cost of sales | 19,594 | 16,954 | 19,403 | |||||||||
Gross profit | 1,422 | 2,174 | 2,558 | 3,214 | 883 | 1,238 | 930 | 1,528 | 9,368 | 4,579 | 3,972 | |
Operating expenses: | ||||||||||||
Research and development | 1,035 | 597 | 368 | |||||||||
Selling, genereal, and administrative | 10,910 | 9,714 | 8,944 | |||||||||
Change in estimate of contingent liabilities | 102 | 12 | -102 | |||||||||
Loss on impairment | 933 | 672 | ||||||||||
Total operating expenses | 11,945 | 11,336 | 9,882 | |||||||||
Restructuring | 80 | 80 | ||||||||||
Income (loss) before income taxes | -5,797 | -6,947 | -6,576 | |||||||||
Benefit from income taxes | 2 | |||||||||||
Net loss from continuing operations | -4,050 | -622 | -403 | -720 | -1,456 | -1,162 | -1,870 | -2,459 | -5,795 | -6,947 | -6,576 | |
Solutions Segment [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Net sales | 3,689 | 9,847 | 10,569 | |||||||||
Cost of sales | 2,969 | 8,361 | 9,150 | |||||||||
Gross profit | 720 | 1,486 | 1,419 | |||||||||
Operating expenses: | ||||||||||||
Selling, genereal, and administrative | 1,199 | 2,036 | 2,081 | |||||||||
Loss on impairment | 325 | 672 | ||||||||||
Total operating expenses | 1,199 | 2,361 | 2,753 | |||||||||
Income (loss) before income taxes | -479 | -875 | -1,334 | |||||||||
Products Segment [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Net sales | 25,273 | 11,686 | 12,806 | |||||||||
Cost of sales | 16,625 | 8,593 | 10,253 | |||||||||
Gross profit | 8,648 | 3,093 | 2,553 | |||||||||
Operating expenses: | ||||||||||||
Research and development | 326 | 597 | 368 | |||||||||
Selling, genereal, and administrative | 4,753 | 2,725 | 2,632 | |||||||||
Loss on impairment | 608 | |||||||||||
Total operating expenses | 5,079 | 4,010 | 3,000 | |||||||||
Restructuring | 80 | |||||||||||
Income (loss) before income taxes | 3,569 | -917 | -447 | |||||||||
Segements Total [Member] | ||||||||||||
Operating expenses: | ||||||||||||
Income (loss) before income taxes | 3,090 | -1,792 | -1,781 | |||||||||
Overhead [Member] | ||||||||||||
Operating expenses: | ||||||||||||
Research and development | 709 | |||||||||||
Selling, genereal, and administrative | 4,958 | 4,953 | 4,231 | |||||||||
Change in estimate of contingent liabilities | 12 | -102 | ||||||||||
Other expenses | -3,220 | -190 | -666 | |||||||||
Total operating expenses | $5,667 | $4,965 | $4,129 |
Note_15_Segments_and_Geographi4
Note 15 - Segments and Geographic Information (Details) - Additional Business Unit Gross Profitability Detail for Products Segment (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Products segment net sales | $4,919 | $6,699 | $7,890 | $9,454 | $4,458 | $5,653 | $4,827 | $6,595 | $28,962 | $21,533 | $23,375 |
Products Segment [Member] | Pool and Commercial Products [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Products segment net sales | 5,984 | 5,966 | 8,486 | ||||||||
Products Segment [Member] | Government Products [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Products segment net sales | 19,214 | 3,678 | 2,534 | ||||||||
Products Segment [Member] | Research and Development Services [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Products segment net sales | 75 | 2,042 | 1,786 | ||||||||
Products Segment [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Products segment net sales | $25,273 | $11,686 | $12,806 |
Note_15_Segments_and_Geographi5
Note 15 - Segments and Geographic Information (Details) - Summary of Geographic Sales (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Note 15 - Segments and Geographic Information (Details) - Summary of Geographic Sales [Line Items] | |||||||||||
Net Sales | $4,919 | $6,699 | $7,890 | $9,454 | $4,458 | $5,653 | $4,827 | $6,595 | $28,962 | $21,533 | $23,375 |
UNITED STATES | |||||||||||
Note 15 - Segments and Geographic Information (Details) - Summary of Geographic Sales [Line Items] | |||||||||||
Net Sales | 26,356 | 19,136 | 20,363 | ||||||||
International [Member] | |||||||||||
Note 15 - Segments and Geographic Information (Details) - Summary of Geographic Sales [Line Items] | |||||||||||
Net Sales | $2,606 | $2,397 | $3,012 |
Note_15_Segments_and_Geographi6
Note 15 - Segments and Geographic Information (Details) - Summary of Geographic Long-Lived Assets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 15 - Segments and Geographic Information (Details) - Summary of Geographic Long-Lived Assets [Line Items] | ||
Long-lived assets, net | $479 | $591 |
UNITED STATES | ||
Note 15 - Segments and Geographic Information (Details) - Summary of Geographic Long-Lived Assets [Line Items] | ||
Long-lived assets, net | 456 | 582 |
International [Member] | ||
Note 15 - Segments and Geographic Information (Details) - Summary of Geographic Long-Lived Assets [Line Items] | ||
Long-lived assets, net | $23 | $9 |
Note_16_Related_Party_Transact1
Note 16 - Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Note 16 - Related Party Transactions (Details) [Line Items] | |||
Prepaid Expense and Other Assets, Current | $1,002 | $1,207 | |
Communal [Member] | Additional Commited Payment [Member] | |||
Note 16 - Related Party Transactions (Details) [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 425 | ||
Communal [Member] | 5 Elements Efficienties (BVI) Ltd [Member] | Yeh-Mei Cheng [Member] | |||
Note 16 - Related Party Transactions (Details) [Line Items] | |||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 50.00% | ||
Communal [Member] | |||
Note 16 - Related Party Transactions (Details) [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 523 | ||
Related Party Transaction, Expenses from Transactions with Related Party | 226 | 226 | 270 |
Commission Fee, Percent | 5.00% | ||
Payments for Commissions | 0 | ||
Prepaid Expense and Other Assets, Current | $226 | ||
5 Elements Efficienties (BVI) Ltd [Member] | |||
Note 16 - Related Party Transactions (Details) [Line Items] | |||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 50.00% |
Note_17_Legal_Matters_Details
Note 17 - Legal Matters (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 18, 2015 | Mar. 25, 2014 | Nov. 26, 2013 |
Note 17 - Legal Matters (Details) [Line Items] | |||||
Escrow Deposit | $300 | $500 | |||
Proceeds from Divestiture of Businesses | -30 | 4,816 | |||
Subsequent Event [Member] | Pending Litigation [Member] | Pool and Commercial Products [Member] | |||||
Note 17 - Legal Matters (Details) [Line Items] | |||||
Loss Contingency, Damages Sought, Value | 780 | ||||
Released from Escrow [Member] | Pool and Commercial Products [Member] | |||||
Note 17 - Legal Matters (Details) [Line Items] | |||||
Proceeds from Divestiture of Businesses | 100 | ||||
Uncertainty on the Collection of Escrow [Member] | Pool and Commercial Products [Member] | |||||
Note 17 - Legal Matters (Details) [Line Items] | |||||
Escrow Deposit | 300 | ||||
Pool and Commercial Products [Member] | |||||
Note 17 - Legal Matters (Details) [Line Items] | |||||
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | 5,200 | 5,200 | |||
Escrow Deposit | $500 |
Supplementary_Financial_Inform2
Supplementary Financial Information (Details) - Quarterly Results (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Results [Abstract] | |||||||||||
Net sales from continuing operations | $4,919 | $6,699 | $7,890 | $9,454 | $4,458 | $5,653 | $4,827 | $6,595 | $28,962 | $21,533 | $23,375 |
Gross profit from continuing operations | 1,422 | 2,174 | 2,558 | 3,214 | 883 | 1,238 | 930 | 1,528 | 9,368 | 4,579 | 3,972 |
Net loss from continuing operations | -4,050 | -622 | -403 | -720 | -1,456 | -1,162 | -1,870 | -2,459 | -5,795 | -6,947 | -6,576 |
Net (loss) income from discontinued operations | -20 | 0 | 0 | -30 | 28 | 483 | 219 | 3,856 | -50 | 4,586 | 867 |
Net loss | ($4,070) | ($622) | ($403) | ($750) | ($1,428) | ($679) | ($1,651) | $1,397 | ($5,845) | ($2,361) | ($5,709) |
Net loss per share: | |||||||||||
Basic (in Dollars per share) | ($0.79) | ($0.08) | ($0.05) | ($0.08) | ($0.32) | ($0.15) | ($0.34) | $0.27 | |||
Diluted (in Dollars per share) | ($0.79) | ($0.08) | ($0.05) | ($0.08) | ($0.32) | ($0.15) | ($0.34) | $0.17 | ($0.75) | ($0.49) | ($1.38) |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) - Valuation and Qualifying Accounts (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts [Member] | |||
Valuation Allowance [Line Items] | |||
Beginning balance | $84 | $265 | $447 |
Charges to revenue/expense | 617 | 2 | 309 |
deductions | 378 | 183 | 491 |
Ending balance | 323 | 84 | 265 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation Allowance [Line Items] | |||
Beginning balance | 8,344 | 29,135 | 27,909 |
Charges to revenue/expense | 3,141 | -20,791 | 1,226 |
Ending balance | $11,485 | $8,344 | $29,135 |