Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'HDSN | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 25,090,386 | ' |
Entity Registrant Name | 'HUDSON TECHNOLOGIES INC /NY | ' | ' |
Entity Central Index Key | '0000925528 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $59,327,565 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $669 | $3,991 |
Trade accounts receivable - net | 3,706 | 1,956 |
Income taxes receivable | 2,709 | 122 |
Inventories | 33,967 | 40,167 |
Deferred tax asset | 207 | 234 |
Prepaid expenses and other current assets | 608 | 554 |
Total current assets | 41,866 | 47,024 |
Property, plant and equipment, less accumulated depreciation | 4,536 | 4,765 |
Other assets | 106 | 341 |
Deferred tax asset | 5,363 | 3,888 |
Investments in affiliates | 440 | 1,138 |
Intangible assets, less accumulated amortization | 57 | 76 |
Total Assets | 52,368 | 57,232 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 3,955 | 6,219 |
Accrued payroll | 289 | 661 |
Short-term debt and current maturities of long-term debt | 15,367 | 12,736 |
Total current liabilities | 19,611 | 19,616 |
Long-term debt, less current maturities | 4,671 | 4,920 |
Total Liabilities | 24,282 | 24,536 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $0.01 par value; shares authorized 50,000,000; issued and outstanding 25,070,386 and 24,124,625 | 251 | 241 |
Additional paid-in capital | 44,944 | 43,722 |
Accumulated deficit | -17,109 | -11,267 |
Total Stockholders' Equity | 28,086 | 32,696 |
Total Liabilities and Stockholders' Equity | 52,368 | 57,232 |
Series A Convertible Preferred Stock | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, shares authorized 5,000,000: Series A Convertible preferred stock, $0.01 par value ($100 liquidation preference value); shares authorized 150,000; none issued or outstanding | $0 | $0 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, issued | 25,070,386 | 24,124,625 |
Common stock, outstanding | 25,070,386 | 24,124,625 |
Preferred Stock | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Series A Convertible Preferred Stock | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, liquidation preference value | $100 | $100 |
Preferred stock, shares authorized | 150,000 | 150,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | $58,634 | $56,447 |
Cost of sales, excluding lower of cost or market adjustment | 44,664 | 33,905 |
Lower of cost or market adjustment | 14,700 | 0 |
Gross profit (loss) | -730 | 22,542 |
Operating expenses: | ' | ' |
Selling and marketing | 3,032 | 2,748 |
General and administrative | 4,723 | 4,914 |
Total operating expenses | 7,755 | 7,662 |
Operating income (loss) | -8,485 | 14,880 |
Other income (expense): | ' | ' |
Interest expense | -933 | -693 |
Interest income | 0 | 9 |
Total other income (expense) | -933 | -684 |
Income (loss) before income taxes | -9,418 | 14,196 |
Income tax (benefit) expense | -3,576 | 1,395 |
Net income (loss) | ($5,842) | $12,801 |
Net income (loss) per common share - Basic | ($0.24) | $0.54 |
Net income (loss) per common share - Diluted | ($0.24) | $0.49 |
Weighted average number of shares outstanding - Basic | 24,826,101 | 23,906,706 |
Weighted average number of shares outstanding - Diluted | 24,826,101 | 26,353,960 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
In Thousands, except Share data | ||||
Beginning balance at Dec. 31, 2011 | $19,039 | $238 | $42,869 | ($24,068) |
Beginning balance (in shares) at Dec. 31, 2011 | ' | 23,783,106 | ' | ' |
Issuance of common stock in connection with asset purchase (in shares) | ' | 160,305 | ' | ' |
Issuance of common stock in connection with asset purchase | 600 | 1 | 599 | 0 |
Issuance of common stock upon exercise of stock options and warrants (in shares) | ' | 161,214 | ' | ' |
Issuance of common stock upon exercise of stock options and warrants | 122 | 2 | 120 | 0 |
Issuance of common stock for services (in shares) | ' | 20,000 | ' | ' |
Issuance of common stock for services | 74 | 0 | 74 | 0 |
Value of share-based arrangements (in shares) | ' | 0 | ' | ' |
Value of share-based arrangements | 60 | 0 | 60 | 0 |
Net Income (Loss) | 12,801 | 0 | 0 | 12,801 |
Ending balance at Dec. 31, 2012 | 32,696 | 241 | 43,722 | -11,267 |
Ending balance (in shares) at Dec. 31, 2012 | ' | 24,124,625 | ' | ' |
Issuance of common stock upon exercise of stock options (in shares) | ' | 945,761 | ' | ' |
Issuance of common stock upon exercise of stock options | 1,110 | 10 | 1,100 | 0 |
Value of share-based arrangements (in shares) | ' | 0 | ' | ' |
Value of share-based arrangements | 122 | 0 | 122 | 0 |
Net Income (Loss) | -5,842 | 0 | 0 | -5,842 |
Ending balance at Dec. 31, 2013 | $28,086 | $251 | $44,944 | ($17,109) |
Ending balance (in shares) at Dec. 31, 2013 | ' | 25,070,386 | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ' | ' |
Net (loss) income | ($5,842) | $12,801 |
Adjustments to reconcile net (loss) income to cash used by operating activities: | ' | ' |
Depreciation and amortization | 808 | 556 |
Allowance for doubtful accounts | 31 | 29 |
Amortization of deferred finance cost | 95 | 41 |
Value of share-based payment arrangements | 122 | 134 |
Deferred tax benefit | -1,448 | -1,036 |
Allowance for lower of cost or market | 5,714 | 0 |
Changes in assets and liabilities: | ' | ' |
Trade accounts receivable | -1,781 | 468 |
Inventories | 486 | -22,433 |
Prepaid and other assets | 86 | -368 |
Income taxes receivable | -2,587 | 0 |
Accounts payable and accrued expenses | -2,101 | 542 |
Cash used by operating activities | -6,417 | -9,266 |
Cash flows from investing activities: | ' | ' |
Additions to patents | -11 | -19 |
Additions to property, plant and equipment | -550 | -1,248 |
Decrease (increase) in investment in affiliates | 164 | -730 |
Cash used by investing activities | -397 | -1,997 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock - net | 1,110 | 122 |
Proceeds of short-term debt - net | 2,629 | 10,527 |
Proceeds from long-term debt | 0 | 4,387 |
Repayment of long-term debt | -247 | -3,740 |
Cash provided by financing activities | 3,492 | 11,296 |
(Decrease) increase in cash and cash equivalents | -3,322 | 33 |
Cash and cash equivalents at beginning of period | 3,991 | 3,958 |
Cash and cash equivalents at end of period | 669 | 3,991 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid during period for interest | 838 | 652 |
Cash paid for income taxes | 1,085 | 2,553 |
Non cash investing activity: | ' | ' |
Divestiture of joint venture | $534 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Summary of Significant Accounting Policies | ' | |||||||
Note 1 - Summary of Significant Accounting Policies | ||||||||
Business | ||||||||
Hudson Technologies, Inc., incorporated under the laws of New York on January 11, 1991, is a refrigerant services company providing innovative solutions to recurring problems within the refrigeration industry. The Company's products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, including (i) refrigerant sales, (ii) refrigerant management services consisting primarily of reclamation of refrigerants and (iii) RefrigerantSide® Services performed at a customer's site, consisting of system decontamination to remove moisture, oils and other contaminants. In addition, RefrigerantSide® Services include predictive and diagnostic services for industrial and commercial refrigeration applications, which are designed to predict potential catastrophic problems and identify inefficiencies in an operating system. The Company’s Chiller Chemistry®, Chill Smart®, Fluid Chemistry®, and Performance Optimization are predictive and diagnostic service offerings. As a component of the Company’s products and services, the Company also participates in the generation of carbon offset projects. The Company operates principally through its wholly-owned subsidiary, Hudson Technologies Company. Unless the context requires otherwise, references to the “Company”, “Hudson”, “we”, “us”, “our”, or similar pronouns refer to Hudson Technologies, Inc. and its subsidiaries. | ||||||||
In preparing the accompanying consolidated financial statements, and in accordance with ASC855-10 “Subsequent Events”, the Company’s management has evaluated subsequent events through the date that the financial statements were filed. | ||||||||
In the opinion of management, all estimates and adjustments considered necessary for a fair presentation have been included and all such adjustments were normal and recurring. | ||||||||
Consolidation | ||||||||
The consolidated financial statements represent all companies of which Hudson directly or indirectly has majority ownership or otherwise controls. Significant intercompany accounts and transactions have been eliminated. The Company's consolidated financial statements include the accounts of wholly-owned subsidiaries Hudson Holdings, Inc. and Hudson Technologies Company. | ||||||||
Fair value of financial instruments | ||||||||
The carrying values of financial instruments including trade accounts receivable and accounts payable approximate fair value at December 31, 2013 and 2012, because of the relatively short maturity of these instruments. The carrying value of short and long-term debt approximates fair value, based upon quoted market rates of similar debt issues, as of December 31, 2013 and 2012. | ||||||||
Credit risk | ||||||||
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of temporary cash investments and trade accounts receivable. The Company maintains its temporary cash investments in highly-rated financial institutions and, at times, the balances exceed FDIC insurance coverage. The Company's trade accounts receivables are primarily due from companies throughout the United States. The Company reviews each customer's credit history before extending credit. | ||||||||
The Company establishes an allowance for doubtful accounts based on factors associated with the credit risk of specific accounts, historical trends, and other information. The carrying value of the Company’s accounts receivable is reduced by the established allowance for doubtful accounts. The allowance for doubtful accounts includes any accounts receivable balances that are determined to be uncollectible, along with a general reserve for the remaining accounts receivable balances. The Company adjusts its reserves based on factors that affect the collectability of the accounts receivable balances. | ||||||||
For the year ended December 31, 2013, two customers each accounted for 10% or more of the Company’s revenues and, in the aggregate these two customers accounted for 23% of the Company’s revenues. At December 31, 2013, there were $344,000 in outstanding receivables from these customers. | ||||||||
For the year ended December 31, 2012, two customers each accounted for 10% or more of the Company’s revenues and, in the aggregate these two customers accounted for 28% of the Company’s revenues. At December 31, 2012, there were no outstanding receivables from these customers. | ||||||||
The loss of a principal customer or a decline in the economic prospects of and/or a reduction in purchases of the Company's products or services by any such customer could have a material adverse effect on the Company's operating results and financial position. | ||||||||
Cash and cash equivalents | ||||||||
Temporary investments with original maturities of ninety days or less are included in cash and cash equivalents. | ||||||||
Inventories | ||||||||
Inventories, consisting primarily of refrigerant products available for sale, are stated at the lower of cost, on a first-in first-out basis, or market. Where the market price of inventory is less than the related cost, the Company may be required to write down its inventory through a lower of cost or market adjustment, the impact of which is reflected in cost of sales on the Consolidated Statements of Operations. Any such adjustment is based on management’s judgment regarding future demand and market conditions and analysis of historical experience. For the year ended December 31, 2013, the Company recognized a lower of cost or market adjustment to inventory in the amount of $14,700,000. The LCM inventory adjustment, which significantly increased our cost of sales, was due to an approximately 50% decline in HCFC-22 refrigerant pricing from April to September 2013 following the issuance of the EPA’s final rule in April 2013. | ||||||||
Property, plant and equipment | ||||||||
Property, plant and equipment are stated at cost, including internally manufactured equipment. The cost to complete equipment that is under construction is not considered to be material to the Company's financial position. Provision for depreciation is recorded (for financial reporting purposes) using the straight-line method over the useful lives of the respective assets. Leasehold improvements are amortized on a straight-line basis over the shorter of economic life or terms of the respective leases. Costs of maintenance and repairs are charged to expense when incurred. | ||||||||
Due to the specialized nature of the Company's business, it is possible that the Company's estimates of equipment useful life periods may change in the future. | ||||||||
Revenues and cost of sales | ||||||||
Revenues are recorded upon completion of service or product shipment and passage of title to customers in accordance with contractual terms. The Company evaluates each sale to ensure collectability. In addition, each sale is based on an arrangement with the customer and the sales price to the buyer is fixed. License fees are recognized over the period of the license based on the respective performance measurements associated with the license. Royalty revenues are recognized when earned. Cost of sales is recorded based on the cost of products shipped or services performed and related direct operating costs of the Company's facilities. To the extent that the Company charges its customers shipping fees, such amounts are included as a component of revenue and the corresponding costs are included as a component of cost of sales. | ||||||||
The Company's revenues are derived from refrigerant and reclamation sales and RefrigerantSide® Services, including license and royalty revenues. The revenues for each of these lines are as follows: | ||||||||
Years Ended December 31, | 2013 | 2012 | ||||||
(in thousands) | ||||||||
Refrigerant and reclamation sales | $ | 54,293 | $ | 52,220 | ||||
RefrigerantSide® Services | 4,341 | 4,227 | ||||||
Total | $ | 58,634 | $ | 56,447 | ||||
Income taxes | ||||||||
The Company utilizes the asset and liability method for recording deferred income taxes, which provides for the establishment of deferred tax asset or liability accounts based on the difference between tax and financial reporting bases of certain assets and liabilities. The tax benefit associated with the Company's net operating loss carry forwards (“NOLs”) is recognized to the extent that the Company is expected to recognize future taxable income. The Company assesses the recoverability of its deferred tax assets based on its expectation that it will recognize future taxable income and adjusts its valuation allowance accordingly. As of December 31, 2013 and 2012, the net deferred tax asset was $6,112,000 and $4,122,000, respectively. | ||||||||
Certain states either do not allow or limit NOLs and as such the Company will be liable for certain state taxes. To the extent that the Company utilizes its NOLs, it will not pay tax on such income but may be subject to the federal alternative minimum tax. In addition, to the extent that the Company’s net income, if any, exceeds the annual NOL limitation it will pay income taxes based on existing statutory rates. Moreover, as a result of a “change in control”, as defined by the Internal Revenue Service, the Company’s ability to utilize its existing NOLs is subject to certain annual limitations. Approximately $10,600,000 of the Company’s $16,000,000 of NOLs are subject to annual limitations of $1,300,000. | ||||||||
The Company has a current income tax receivable of $ 2,709,000 at December 31, 2013. This receivable is primarily related to the pre-tax loss for the year ended December 31, 2013. | ||||||||
As a result of an Internal Revenue Service audit, the 2006 and prior federal tax years have been closed. The Company operates in many states throughout the United States and, as of December 31, 2013, the various states’ statutes of limitations remain open for tax years subsequent to 2008. The Company recognizes interest and penalties, if any, relating to income taxes as a component of the provision for income taxes. | ||||||||
The IRS recently initiated an examination of the Company’s federal income tax return for the fiscal year 2011. The Company does not expect the results of this examination to have a material effect on the Company’s financial statements. | ||||||||
The Company evaluates uncertain tax positions, if any, by determining if it is more likely than not to be sustained upon examination by the taxing authorities. As of December 31, 2013 and 2012, the Company had no uncertain tax positions. | ||||||||
Income per common and equivalent shares | ||||||||
If dilutive, common equivalent shares (common shares assuming exercise of options and warrants) utilizing the treasury stock method are considered in the presentation of diluted earnings per share. The reconciliation of shares used to determine net income per share is as follows (dollars in thousands): | ||||||||
Years Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Net (loss) income | $ | -5,842 | $ | 12,801 | ||||
Weighted average number of shares – basic | 24,826,101 | 23,906,706 | ||||||
Shares underlying warrants | 0 | 315,494 | ||||||
Shares underlying options | 0 | 2,131,760 | ||||||
Weighted average number of shares outstanding – diluted | 24,826,101 | 26,353,960 | ||||||
During the year ended December 31, 2013 and 2012, certain options and warrants aggregating 3,760,161 and no shares, respectively, have been excluded from the calculation of diluted shares, due to the fact that their effect would be anti-dilutive. | ||||||||
Estimates and risks | ||||||||
The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect reported amounts of certain assets and liabilities, the disclosure of contingent assets and liabilities, and the results of operations during the reporting period. Actual results could differ from these estimates. | ||||||||
The Company utilizes both internal and external sources to evaluate potential current and future liabilities for various commitments and contingencies. In the event that the assumptions or conditions change in the future, the estimates could differ from the original estimates. | ||||||||
Several of the Company's accounting policies involve significant judgments, uncertainties and estimations. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. To the extent that actual results differ from management's judgments and estimates, there could be a material adverse effect on the Company. On a continuous basis, the Company evaluates its estimates, including, but not limited to, those estimates related to its allowance for doubtful accounts, inventory reserves, and valuation allowance for the deferred tax assets relating to its NOLs and commitments and contingencies. With respect to accounts receivable, the Company estimates the necessary allowance for doubtful accounts based on both historical and anticipated trends of payment history and the ability of the customer to fulfill its obligations. For inventory, the Company evaluates both current and anticipated sales prices of its products to determine if a write down of inventory to net realizable value is necessary. In determining the Company’s valuation allowance for its deferred tax assets, the Company assesses its ability to generate taxable income in the future. | ||||||||
The Company participates in an industry that is highly regulated, and changes in the regulations affecting our business could affect our operating results. Currently the Company purchases virgin, hydro chlorofluorocarbon (“HCFC”) and hydro fluorocarbon (“HFC”) refrigerants and reclaimable, primarily HCFC and chlorofluorocarbon (“CFC”), refrigerants from suppliers and its customers. Effective January 1, 1996, the Clean Air Act (the “Act”) prohibited the production of virgin CFC refrigerants and limited the production of virgin HCFC refrigerants. Effective January 2004, the Act further limited the production of virgin HCFC refrigerants and federal regulations were enacted which established production and consumption allowances for HCFC refrigerants and which imposed limitations on the importation of certain virgin HCFC refrigerants. Under the Act, production of certain virgin HCFC refrigerants is scheduled to be phased out during the period 2010 through 2020, and production of all virgin HCFC refrigerants is scheduled to be phased out by 2030. Additionally, effective January 1, 2010, the Act further limited the production of virgin HCFC refrigerants, and additional federal regulations have been enacted which imposed further limitation and a phase down on the use, production and importation of virgin HCFC refrigerants for the years 2010 through 2014. As a result of litigation, the federal regulations implementing the January 2010 phase down schedule were vacated, and in April 2013, the Environmental Protection Agency (“EPA”) published a final rule providing for further reduction in the production of HCFC refrigerants when compared to the reductions established in the January 1, 2010 published rule. The final rule allows for the production or importation of 63 million and 51 million pounds of HCFC-22 in 2013 and 2014, respectively. The EPA has not yet issued a proposed or final rule establishing the total pounds of HCFC-22 that can be produced or imported during the years 2015 through 2019. | ||||||||
To the extent that the Company is unable to source sufficient quantities of refrigerants or is unable to obtain refrigerants on commercially reasonable terms or experiences a decline in demand and/or price for refrigerants sold by the Company, the Company could realize reductions in revenue from refrigerant sales, which could have a material adverse effect on its operating results and its financial position. | ||||||||
The Company is subject to various legal proceedings. The Company assesses the merit and potential liability associated with each of these proceedings. In addition, the Company estimates potential liability, if any, related to these matters. To the extent that these estimates are not accurate, or circumstances change in the future, the Company could realize liabilities, which could have a material adverse effect on its operating results and its financial position. | ||||||||
Impairment of long-lived assets | ||||||||
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less the cost to sell. | ||||||||
Recent accounting pronouncements | ||||||||
In March 2013, the FASB issued ASU No. 2013-05, which amends the guidance in ASC 830, “Foreign Currency Matters”. ASU No. 2013-05 addresses the accounting for the cumulative translation adjustment (“CTA”) when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. This amended guidance is to be applied prospectively and is effective for the Company beginning on January 1, 2014. The implementation of the amended accounting guidance is not expected to have a material impact on our consolidated financial position or results of operations. | ||||||||
In July 2013, the FASB issued ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." ASU 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in this Update are effective for fiscal years (and interim periods within those years) beginning after December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on our results of operations or our financial position. | ||||||||
Reclassification | ||||||||
Certain items in the 2012 financial statements have been reclassified for comparative purposes. | ||||||||
Other_income
Other income | 12 Months Ended |
Dec. 31, 2013 | |
Other Income and Expenses [Abstract] | ' |
Other income | ' |
Note 2 - Other income | |
For the year ended December 31, 2013 there was no other income. For the year ended December 31, 2012, other income of $9,000 consisted primarily of miscellaneous income. | |
Income_taxes
Income taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income taxes | ' | ||||||||
Note 3 - Income taxes | |||||||||
Income tax benefit for the year ended December 31, 2013 was $3,576,000 compared to an income tax provision for the year ended December 31, 2012 of $1,395,000. The income tax benefit of $3,576,000 was for federal and state income tax at statutory rates applied to the pre-tax loss for the year ended December 31, 2013 of $9,418,000. | |||||||||
During the year ended December 31, 2012, the Company recognized $5,395,000 in federal and state income tax expense at statutory rates offset by the release during the fourth quarter of 2012 of $4,000,000 of the Company’s deferred tax asset valuation allowance. In future periods, the Company will be subject to federal and state income tax expense at statutory tax rates. | |||||||||
The following summarizes the (benefit) / provision for income taxes: | |||||||||
Years Ended December 31, | 2013 | 2012 | |||||||
(in thousands) | |||||||||
Current: | |||||||||
Federal | $ | -1,904 | $ | 1,846 | |||||
State and local | -224 | 585 | |||||||
-2,128 | 2,431 | ||||||||
Deferred: | |||||||||
Federal | -1,295 | -927 | |||||||
State and local | -153 | -109 | |||||||
-1,448 | -1,036 | ||||||||
(Benefit) / Provision for income taxes | $ | -3,576 | $ | 1,395 | |||||
Reconciliation of the Company's actual tax rate to the U.S. Federal statutory rate is as follows: | |||||||||
Years ended December 31, | 2013 | 2012 | |||||||
Income tax rates | |||||||||
- Statutory U.S. federal rate | 34 | % | 34 | % | |||||
- States, net U.S. benefits | 4 | % | 4 | % | |||||
- Reduction of valuation allowance | 0 | % | -28 | % | |||||
Total | 38 | % | 10 | % | |||||
As of December 31, 2013, the Company had NOL's of approximately $16,000,000 expiring through 2033, of which $10,600,000, are subject to an annual limitation of $1,300,000. | |||||||||
Elements of deferred income tax assets (liabilities) are as follows: | |||||||||
December 31, | 2013 | 2012 | |||||||
(in thousands) | |||||||||
Deferred tax assets (liabilities) | |||||||||
- Depreciation & amortization | $ | -542 | $ | -112 | |||||
- Reserves for doubtful accounts | 86 | 86 | |||||||
- Inventory reserve | 120 | 148 | |||||||
- NOL | 5,906 | 4,000 | |||||||
Total | $ | 5,570 | $ | 4,122 | |||||
The Company considered its projected future taxable income, and associated annual limitations, in determining the amount of deferred tax assets to recognize. The Company believes that given the extended time period that it may recognize its deferred tax assets, it is more likely than not it will realize the benefit of these assets prior to their expiration. | |||||||||
Trade_accounts_receivable_net
Trade accounts receivable - net | 12 Months Ended |
Dec. 31, 2013 | |
Receivables [Abstract] | ' |
Trade accounts receivable - net | ' |
Note 4 - Trade accounts receivable - net | |
At December 31, 2013 and 2012, trade accounts receivable are net of reserves for doubtful accounts of $227,000 and $227,000, respectively. | |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Note 5- Inventories | ||||||||
Inventories consist of the following: | ||||||||
December 31, | 2013 | 2012 | ||||||
(in thousands) | ||||||||
Refrigerant and cylinders | $ | 8,238 | $ | 9,893 | ||||
Packaged refrigerants | 25,729 | 30,274 | ||||||
Total | $ | 33,967 | $ | 40,167 | ||||
Property_plant_and_equipment
Property, plant and equipment | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||
Property, plant, and equipment | ' | ||||||||||
Note 6 - Property, plant and equipment | |||||||||||
Elements of property, plant and equipment are as follows: | |||||||||||
December 31, | 2013 | 2012 | Estimated Lives | ||||||||
(in thousands) | |||||||||||
Property, plant and equipment | |||||||||||
- Land | $ | 535 | $ | 535 | |||||||
- Buildings | 830 | 830 | 39 years | ||||||||
- Building improvements | 776 | 770 | 39 years | ||||||||
- Equipment | 8,560 | 8,253 | 3-7 years | ||||||||
- Equipment under capital lease | 137 | 231 | 5-7 years | ||||||||
- Vehicles | 1,258 | 1,212 | 5 years | ||||||||
- Lab and computer equipment, software | 2,210 | 2,017 | 3-5 years | ||||||||
- Furniture & fixtures | 249 | 246 | 7-8 years | ||||||||
- Leasehold improvements | 70 | 40 | 3 years | ||||||||
- Equipment under construction | 37 | 96 | |||||||||
Subtotal | 14,662 | 14,230 | |||||||||
Accumulated depreciation | 10,126 | 9,465 | |||||||||
Total | $ | 4,536 | $ | 4,765 | |||||||
Depreciation expense for the years ended December 31, 2013 and 2012 was $779,000 and $524,000, respectively. | |||||||||||
Shortterm_and_longterm_debt
Short-term and long-term debt | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Short-term and long-term debt | ' | |||||||
Note 7 - Short-term and long-term debt | ||||||||
Elements of short-term and long-term debt are as follows: | ||||||||
December 31, | 2013 | 2012 | ||||||
(in thousands) | ||||||||
Short-term & long-term debt | ||||||||
Short-term debt: | ||||||||
- Bank credit line | $ | 15,080 | $ | 12,451 | ||||
- Long-term debt: current | 287 | 285 | ||||||
Subtotal | 15,367 | 12,736 | ||||||
Long-term debt: | ||||||||
- Bank credit line | 4,000 | 4,000 | ||||||
- Building and land mortgage | 603 | 764 | ||||||
- Vehicle and equipment loans | 298 | 327 | ||||||
- Capital lease obligations | 57 | 114 | ||||||
- Less: current maturities | -287 | -285 | ||||||
Subtotal | 4,671 | 4,920 | ||||||
Total short-term & long-term debt | $ | 20,038 | $ | 17,656 | ||||
Bank Credit Line | ||||||||
On June 22, 2012, a subsidiary of Hudson entered into a Revolving Credit, Term Loan and Security Agreement (the “PNC Facility”) with PNC Bank, National Association, as agent (“Agent” or “PNC”), and such other lenders as may thereafter become a party to the PNC Facility. Under the terms of the PNC Facility, Hudson could initially borrow up to $27,000,000 consisting of a term loan in the principal amount of $4,000,000 and revolving loans in a maximum amount up to the lesser of $23,000,000 and a borrowing base that is calculated based on the outstanding amount of Hudson’s eligible receivables and eligible inventory, as described in the PNC Facility. On February 15, 2013, the PNC Facility was amended. As a result of this amendment, Hudson may borrow up to a maximum of $40,000,000 consisting of a term loan in the principal amount of $4,000,000 and revolving loans in a maximum amount up to $36,000,000. Amounts borrowed under the PNC Facility may be used by Hudson for working capital needs and to reimburse drawings under letters of credit. Fees and expenses relating to the creation of the PNC Facility of approximately $150,000 are being amortized over the life of the loan. At December 31, 2013, total borrowings under the PNC Facility were $19,080,000, and there was $8,349,000 available to borrow under the revolving line of credit. The effective interest rate under the PNC Facility was 3.0% at December 31, 2013. | ||||||||
Interest on loans under the PNC Facility is payable in arrears on the first day of each month with respect to loans bearing interest at the domestic rate (as set forth in the PNC Facility) and at the end of each interest period with respect to loans bearing interest at the Eurodollar rate (as set forth in the PNC Facility) or, for Eurodollar rate loans with an interest period in excess of three months, at the earlier of (a) each three months from the commencement of such Eurodollar rate loan or (b) the end of the interest period. As of December 31, 2013, interest charges with respect to loans are computed on the actual principal amount of loans outstanding during the month at a rate per annum equal to (A) with respect to domestic rate loans, the sum of (i) a rate per annum equal to the higher of (1) the base commercial lending rate of PNC, (2) the federal funds open rate plus .5% and (3) the daily LIBOR plus 1%, plus (ii) .5% and (B) with respect to Eurodollar rate loans, the sum of the Eurodollar rate plus 2.75%. | ||||||||
Hudson granted to PNC, for itself, and as agent for such other lenders as may thereafter become a lender under the PNC Facility, a security interest in Hudson’s receivables, intellectual property, general intangibles, inventory and certain other assets. | ||||||||
The PNC Facility contains certain financial and non-financial covenants relating to Hudson, including limitations on Hudson’s ability to pay dividends on common stock or preferred stock, and also includes certain events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to other obligations, events of bankruptcy and insolvency, certain ERISA events, judgments in excess of specified amounts, impairments to guarantees and a change of control. | ||||||||
The PNC Facility contains a financial covenant to maintain at all times a Fixed Charge Coverage Ratio of not less than 1.10 to 1.00, tested quarterly on a rolling twelve month basis. Fixed Charge Coverage Ratio is defined in the PNC Facility, with respect to any fiscal period, as the ratio of (a) EBITDA of Hudson for such period, minus unfinanced capital expenditures (as defined in the PNC Facility) made by Hudson during such period, minus the aggregate amount of cash taxes paid by Hudson during such period, minus the aggregate amount of dividends and distribution made by Hudson during such period, minus the aggregate amount of payments made with cash by Hudson to satisfy soil sampling and reclamation related to environmental cleanup at the Company’s former Hillburn, NY facility during such period (to the extent not already included in the calculation of EBITDA as determined by the Agent) to (b) the aggregate amount of all principal payments due and/or made, except principal payments related to outstanding revolving advances with regard to all funded debt (as defined in the PNC Facility) of Hudson during such period, plus the aggregate interest expense of Hudson during such period. EBITDA as defined in the PNC Facility shall mean for any period the sum of (i) earnings before interest and taxes for such period plus (ii) depreciation expenses for such period, plus (iii) amortization expenses for such period, plus (iv) non-cash charges. | ||||||||
On October 25, 2013, we entered into the Second Amendment to the PNC Facility (the “Second PNC Amendment”), which among other things, waived our requirement to comply with the minimum fixed charge coverage ratio covenant of 1.10 to 1.00 for the fiscal quarter ended September 30, 2013, required under the PNC Facility. The covenant waiver was required primarily because of the adverse impact on our results of operations from the significant reduction in the selling price of HCFC-22 following the EPA’s final ruling allowing for the production or importation of 63 million and 51 million pounds of HCFC-22 in 2013 and 2014, respectively. | ||||||||
The amendment suspended the minimum fixed charge ratio covenant until the quarterly period ending March 31, 2015 and set the minimum EBITDA for the quarters ended December 31, 2013 through December 31, 2014, as follows: | ||||||||
Period | Amount | |||||||
3 month period ended December 31, 2013 | $ | -2,154,000 | ||||||
3 month period ending March 31, 2014 | $ | 494,000 | ||||||
6 month period ending June 30, 2014 | $ | 2,035,000 | ||||||
9 month period ending September 30, 2014 | $ | 3,012,000 | ||||||
12 month period ending December 31, 2014 | $ | 1,879,000 | ||||||
After giving effect to the Second PNC Amendment, as of December 31, 2013, the Company was in compliance with the EBITDA covenant. EBITDA for the 3 month period ended December 31, 2013 was ($2,010,000), which was in compliance with the amended EBITDA covenant for the period of ($2,154,000) by $144,000. The EBITDA was calculated as follows: | ||||||||
For the 3 months ending December 31, 2013 | ||||||||
Net loss | $ | -1,530,000 | ||||||
less: income tax benefit | -934,000 | |||||||
Loss before income taxes | -2,464,000 | |||||||
less: interest expense | 246,000 | |||||||
less: depreciation and amortization | 208,000 | |||||||
Earnings before interest, taxes, depreciation, | $ | -2,010,000 | ||||||
and amortization | ||||||||
EBITDA, which represents a non-GAAP measurement of certain financial results, does not represent and should not be considered as an alternative to net income or cash provided by operating activities as determined by GAAP. We make no representation or assertion that EBITDA is indicative of our cash provided by operating activities or results of operations. We have provided a reconciliation of the net loss to EBITDA solely for the purpose of complying with SEC regulations and not as an indication that EBITDA is a substitute measure for income from operations. | ||||||||
After giving effect to the Second PNC Amendment, the Company was in compliance with all covenants, as amended, required under the PNC Facility as of December 31, 2013. The Company’s ability to comply with these covenants in future quarters may be affected by events beyond the Company’s control, including general economic conditions, weather conditions, regulations and refrigerant pricing. Although we expect to remain in compliance with all covenants in the PNC Facility, as amended, depending on our future operating performance and general economic conditions, we cannot make any assurance that we will continue to be in compliance. | ||||||||
The amendment redefines the “Revolving Interest Rate” as well as the “Term Loan Rate” as previously defined in the agreement as follows: | ||||||||
“Revolving Interest Rate” shall mean an interest rate per annum equal to (a) the sum of the Alternate Base Rate plus one percent (1.00%) with respect to Domestic Rate Loans and (b) the sum of the Eurodollar Rate plus two and three quarters of one percent (2.75%) with respect to the Eurodollar Rate. | ||||||||
“Term Loan Rate” shall mean an interest rate per annum equal to (a) the sum of the Alternate Base Rate plus one percent (1.00%) with respect to the Domestic Rate Loans and (b) the sum of the Eurodollar Rate plus two and three quarters of one percent (2.75%) with respect to Eurodollar Rate Loans. | ||||||||
The commitments under the PNC Facility will expire and the full outstanding principal amount of the loans, together with accrued and unpaid interest, are due and payable in full on June 22, 2015, unless the commitments are terminated and the outstanding principal amount of the loans are accelerated sooner following an event of default. | ||||||||
Building and Land Mortgage | ||||||||
On June 1, 2012, the Company entered into a mortgage note with Busey Bank for $855,000. The note bears interest at the fixed rate of 4% per annum, amortizing over 60 months and maturing on June 1, 2017. The mortgage note is secured by the Company’s land and building located in Champaign, Illinois. At December 31, 2013 the principal balance of this mortgage note was $603,000. | ||||||||
Vehicle and Equipment Loans | ||||||||
The Company had entered into various vehicle and equipment loans. These loans are payable in 60 monthly payments through March 2017 and bear interest ranging from 2.9% to 8.9%. | ||||||||
Scheduled maturities of the Company's long-term debt and capital lease obligations are as follows: | ||||||||
Years ended December 31, | Amount | |||||||
(in thousands) | ||||||||
-2014 | $ | 287 | ||||||
-2015 | 4,284 | |||||||
-2016 | 274 | |||||||
-2017 | 113 | |||||||
Total | $ | 4,958 | ||||||
Capital Lease Obligations | ||||||||
The Company rents certain equipment with a net book value of approximately $60,000 at December 31, 2013 under leases which have been classified as capital leases. Scheduled future minimum lease payments under capital leases net of interest are as follows: | ||||||||
Years ended December 31, | Amount | |||||||
(in thousands) | ||||||||
-2014 | $ | 32 | ||||||
-2015 | 22 | |||||||
-2016 | 6 | |||||||
60 | ||||||||
Less interest expense | -3 | |||||||
Total | $ | 57 | ||||||
Stockholders_equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders Equity Note [Abstract] | ' |
Stockholders' equity | ' |
Note 8 - Stockholders' equity | |
On August 5, 2009, the Company sold 1,470,000 shares of its common stock at $1.15 per share and received net proceeds of approximately $1,400,000 in a Registered Direct Offering (the “2009 Offering”). The placement agent for the 2009 Offering, received a warrant to purchase 73,500 shares of common stock at an exercise price of $1.4375 per share. The estimated fair value of the warrant was approximately $48,000 and such warrant was charged to additional paid-in capital as compensation expense. | |
On July 7, 2010, the Company sold 2,737,500 units, with the aggregate units consisting of 2,737,500 shares of the Company’s common stock and warrants to purchase 1,368,750 shares, at a price of $2.00 per unit in a registered direct offering (the “2010 Offering”). The warrants issued as part of the 2010 Offering have an exercise price of $2.60 per share and are exercisable for a five-year period, which commenced on January 7, 2011. The net proceeds pursuant to the 2010 Offering were approximately $4,900,000. The value of the aggregate number of warrants issued pursuant to the 2010 Offering was approximately $1,300,000 and such amount was charged as a component of stockholders’ equity to additional paid-in capital. | |
Effective as of March 4, 2011, the Company re-purchased warrants to purchase 150,000 shares of the Company’s common stock, at a price of $0.60 per share, which warrants were issued in connection with the 2010 Offering. | |
On March 7, 2011, the remaining 1,218,750 warrants issued in connection with the 2010 Offering were amended on consent of the holders of more than two-thirds of the remaining warrants, to among other things, extend the expiration date of the warrants to July 7, 2016. | |
On May 17, 2012, the Company issued 20,000 shares of the Company’s common stock to a certain consultant for services, and the Company recognized $74,000 in general and administrative expenses for this service. | |
On November 9, 2012, the Company issued 133,589 shares of the Company’s common stock, at a price of $3.743 per share, to EffTec, in connection with the Company’s purchase from EffTec’s subsidiary of its proprietary Efftrack™ software. Additionally, the Company also issued 26,716 shares of its common stock, at a price of $3.743 per share in payment for services performed by the Company’s advisors. The fair value of these shares of $100,000 was included as a cost of the software. | |
Commitments_and_contingencies
Commitments and contingencies | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||
Commitments and contingencies | ' | ||||||
Note 9 - Commitments and contingencies | |||||||
Rents and operating leases | |||||||
Hudson utilizes leased facilities and operates equipment under non-cancelable operating leases through August 31, 2018 as follows: | |||||||
Properties | |||||||
Location | Annual Rent | Lease Expiration Date | |||||
Auburn, Washington | $ | 27,000 | Month to Month | ||||
Baton Rouge, Louisiana | $ | 15,000 | Feb-15 | ||||
Champaign, Illinois | $ | 327,000 | Dec-14 | ||||
Charlotte, North Carolina | $ | 62,000 | Mar-16 | ||||
Hampstead, New Hampshire | $ | 28,000 | Aug-17 | ||||
Pearl River, New York | $ | 93,000 | Aug-18 | ||||
Pottsboro, Texas | $ | 18,000 | Aug-14 | ||||
Stony Point, NY | $ | 116,000 | Jun-16 | ||||
Tulsa, Oklahoma | $ | 26,000 | Dec-14 | ||||
The Company rents properties and various equipment under operating leases. Rent expense for the years ended December 31, 2013 and 2012 totaled approximately $650,000 and $650,000, respectively. In addition to the properties above, the Company does at times utilize public warehouse space on a month to month basis. The Company typically enters into short-term leases for the facilities and wherever possible extends the expiration date of such leases. | |||||||
Future commitments under operating leases are summarized as follows: | |||||||
Years ended December 31, | Amount | ||||||
(in thousands) | |||||||
-2014 | $ | 785 | |||||
-2015 | 315 | ||||||
-2016 | 202 | ||||||
-2017 | 124 | ||||||
-2018 | 70 | ||||||
Total | $ | 1,496 | |||||
Legal Proceedings | |||||||
On April 1, 1999, the Company reported a release of approximately 7,800 lbs. of R-11 refrigerant (the “1999 Release”), at its former leased facility in Hillburn, NY (the “Hillburn Facility”), which the Company vacated in June 2006. A failed hose connection to one of the Company's outdoor storage tanks allowed liquid R-11 refrigerant (“R-11”) to discharge from the tank into the concrete secondary containment area in which the subject tank was located. | |||||||
Between April 1999 and May 1999, with the approval of the New York State Department of Environmental Conservation (“DEC”), the Company constructed and put into operation a remediation system to remove R-11 levels in the groundwater under and around the Hillburn Facility. | |||||||
In September 2000, the Company signed an Order on Consent with the DEC, which was amended in May 2001, whereby the Company agreed to operate the remediation system and perform monthly testing at the Hillburn Facility until remaining groundwater contamination has been effectively abated. In July 2005, the DEC approved a modification of the Order on Consent to reduce the frequency of testing from monthly to quarterly. Additionally, in March 2013, the DEC approved a further modification of the Order on Consent to modify the operation of the remediation system and to further reduce the frequency and scope of testing. The Company is continuing to operate the remediation system pursuant to the approved modifications to that Order on Consent. Based upon the most recent modifications to the Order on Consent, as of December 31, 2013, the Company accrued, as an expense in its consolidated financial statements, the costs that the Company believes it will incur in connection with its compliance with the Order of Consent through December 31, 2018. There can be no assurance that additional testing will not be required or that the Company will not incur additional costs and such costs in excess of the Company’s estimate may have a material adverse effect on the Company financial condition or results of operations. | |||||||
In May 2000, the Hillburn Facility, as a result of the 1999 Release, was nominated by the United States Environmental Protection Agency (“EPA”) for listing on the National Priorities List (“NPL”) pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”). The Company submitted opposition to the listing within the sixty-day comment period. In September 2003, the EPA advised the Company that it has no current plans to finalize the process for listing of the Hillburn Facility on the NPL and that the EPA will not withdraw the proposal for listing on the NPL. | |||||||
The Company has exhausted all insurance proceeds available for the 1999 Release under all applicable policies. | |||||||
During the years ended December 31, 2013 and 2012, the Company incurred $100,000 and $102,000, respectively, in additional remediation costs in connection with the matters above. There can be no assurance that the ultimate outcome of the 1999 Release will not have a material adverse effect on the Company's financial condition and results of operations. There can be no assurance that the EPA will not change its current plans and seek to finalize the process of listing the Hillburn Facility on the NPL, or that the ultimate outcome of such a listing will not have a material adverse effect on the Company's financial condition and results of operations. | |||||||
Employment Agreement | |||||||
The Company has entered into a two-year employment agreement with Kevin J. Zugibe, which currently expires in October 2014 and is automatically renewable for successive two-year terms unless either party gives notice of termination at least ninety days prior to the then expiration date of the then current term. Pursuant to the agreement, Mr. Zugibe is receiving an annual base salary of $288,500 with such increases and bonuses as the Company’s Board of Directors may determine. The Company is the beneficiary of a "key-man" insurance policy on the life of Mr. Zugibe in the amount of $1,000,000. | |||||||
ShareBased_compensation
Share-Based compensation | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Share-Based Compensation [Abstract] | ' | ||||||||||
Share-Based compensation | ' | ||||||||||
Note 10 - Share-Based compensation | |||||||||||
Share-based compensation represents the cost related to share-based awards, typically stock options, granted to employees, non-employees, officers and directors. Share-based compensation is measured at grant date, based on the estimated aggregate fair value of the award on the grant date, and such amount is charged to compensation expense on a straight-line basis (net of estimated forfeitures) over the requisite service period. For the years ended December 31, 2013 and 2012, the share-based compensation expense of $122,000 and $134,000, respectively, is reflected in general and administrative expenses in the consolidated income statements. | |||||||||||
Share-based awards have historically been stock options issued pursuant to the terms of the Company’s 1994 and 1997 stock option plans and the Company’s 2004 and 2008 stock incentive plans, (collectively, the “Plans”), described below. The Plans may be administered by the Board of Directors or the Compensation Committee of the Board or by another committee appointed by the Board from among its members as provided in the Plans. Presently, the Plans are administered by the Company’s Compensation Committee of the Board of Directors. The Compensation Committee has delegated authority to the Company’s Chief Executive Officer to grant stock options under the Company’s 2004 and 2008 stock incentive plans to employees who are not executive officers of up to a maximum of 10,000 shares per employee and up to an aggregate of 50,000 shares per year. As of December 31, 2013, the Plans authorized the issuance of stock options to purchase 5,500,000 shares of the Company’s common stock and, as of December 31, 2013 there were 2,636,470 shares of the Company’s common stock available for issuance for future stock option grants or other stock based awards. | |||||||||||
Stock option awards, which allow the recipient to purchase shares of the Company’s common stock at a fixed price, are typically granted at an exercise price equal to the Company’s stock price at the date of grant. Typically, the Company’s stock option awards have generally vested from immediately to two years from the grant date and have had a contractual term ranging from five to ten years | |||||||||||
For the years ended December 31, 2013 and 2012, the Company issued 173,354 and 30,843 options, respectively. As of December 31, 2013, there was $83,000 of unrecognized compensation cost related to non-vested previously granted option awards. | |||||||||||
Effective October 31, 1994, the Company adopted an Employee Stock Option Plan (“1994 Plan”) pursuant to which 725,000 shares of common stock were reserved for issuance upon the exercise of options designated as either (i) options intended to constitute incentive stock options (“ISOs”) under the Internal Revenue Code of 1986, as amended (“Code”), or (ii) nonqualified options. ISOs could be granted under the 1994 Plan to employees and officers of the Company. Non-qualified options could be granted to consultants, directors (whether or not they are employees), employees or officers of the Company. Effective November 1, 2004, the Company’s ability to grant options under the 1994 Plan expired. | |||||||||||
Effective July 25, 1997, the Company adopted its 1997 Employee Stock Option Plan, which was amended on August 19, 1999, (“1997 Plan”) pursuant to which 2,000,000 shares of common stock were reserved for issuance upon the exercise of options designated as either (i) ISOs under the Code, or (ii) nonqualified options. ISOs could be granted under the 1997 Plan to employees and officers of the Company. Non-qualified options could be granted to consultants, directors (whether or not they are employees), employees or officers of the Company. Stock appreciation rights could also be issued in tandem with stock options. Effective June 11, 2007, the Company’s ability to grant options or stock appreciation rights under the 1997 Plan expired. | |||||||||||
Effective September 10, 2004, the Company adopted its 2004 Stock Incentive Plan (“2004 Plan”) pursuant to which 2,500,000 shares of common stock were reserved for issuance upon the exercise of options, designated as either (i) ISOs under the Code, or (ii) nonqualified options, restricted stock, deferred stock or other stock-based awards. ISOs may be granted under the 2004 Plan to employees and officers of the Company. Non qualified options, restricted stock, deferred stock or other stock-based awards may be granted to consultants, directors (whether or not they are employees), employees or officers of the Company. Stock appreciation rights may also be issued in tandem with stock options. Unless the 2004 Plan is sooner terminated, the ability to grant options or other awards under the 2004 Plan will expire on September 10, 2014. | |||||||||||
ISOs granted under the 2004 Plan may not be granted at a price less than the fair market value of the common stock on the date of grant (or 110% of fair market value in the case of persons holding 10% or more of the voting stock of the Company). Nonqualified options granted under the 2004 Plan may not be granted at a price less than the fair market value of the common stock. Options granted under the 2004 Plan expire not more than ten years from the date of grant (five years in the case of ISOs granted to persons holding 10% or more of the voting stock of the Company). | |||||||||||
Effective August 27, 2008, the Company adopted its 2008 Stock Incentive Plan (“2008 Plan”) pursuant to which 3,000,000 shares of common stock were reserved for issuance upon the exercise of options, designated as either (i) ISOs under the Code, or (ii) nonqualified options, restricted stock, deferred stock or other stock-based awards. ISOs may be granted under the 2008 Plan to employees and officers of the Company. Non qualified options, restricted stock, deferred stock or other stock-based awards may be granted to consultants, directors (whether or not they are employees), employees or officers of the Company. Stock appreciation rights may also be issued in tandem with stock options. Unless the 2008 Plan is sooner terminated, the ability to grant options or other awards under the 2008 Plan will expire on August 27, 2018. | |||||||||||
ISOs granted under the 2008 Plan may not be granted at a price less than the fair market value of the common stock on the date of grant (or 110% of fair market value in the case of persons holding 10% or more of the voting stock of the Company). Nonqualified options granted under the 2008 Plan may not be granted at a price less than the fair market value of the common stock. Options granted under the 2008 Plan expire not more than ten years from the date of grant (five years in the case of ISOs granted to persons holding 10% or more of the voting stock of the Company). | |||||||||||
All stock options have been granted to employees and non-employees at exercise prices equal to or in excess of the market value on the date of the grant. | |||||||||||
The Company determines the fair value of share based awards at the grant date by using the Black-Scholes option-pricing model, and is incorporating the simplified method to compute expected lives of share based awards with the following weighted-average assumptions: | |||||||||||
Years Ended December 31, | 2013 | 2012 | |||||||||
Assumptions | |||||||||||
Dividend yield | 0 | % | 0 | % | |||||||
Risk free interest rate | .85% - 1.64 | % | 1 | % | |||||||
Expected volatility | 59% - 76 | % | 73 | % | |||||||
Expected lives | 5 years | 5 years | |||||||||
A summary of the status of the Company's Plans as of December 31, 2013 and 2012 and changes for the periods ending on those dates is presented below: | |||||||||||
Stock Option Plan Totals | Shares | Weighted | |||||||||
Average | |||||||||||
Exercise Price | |||||||||||
Outstanding at December 31, 2011 | 3,435,443 | $ | 1.22 | ||||||||
• Cancelled | -8,313 | $ | 1.1 | ||||||||
• Exercised | -109,038 | $ | 1.42 | ||||||||
• Granted | 30,843 | $ | 3.27 | ||||||||
Outstanding at December 31, 2012 | 3,348,935 | $ | 1.23 | ||||||||
• Cancelled | -58,617 | $ | 1.87 | ||||||||
• Exercised | -945,761 | $ | 1.2 | ||||||||
• Granted | 173,354 | $ | 2.59 | ||||||||
Outstanding at December 31, 2013 | 2,517,911 | $ | 1.33 | ||||||||
The following is the weighted average contractual life in years and the weighted average exercise price at December 31, 2013 of: | |||||||||||
Weighted Average | |||||||||||
Number of | Remaining | Weighted Average | |||||||||
Options | Contractual Life | Exercise Price | |||||||||
Options outstanding | 2,517,911 | 4.7 years | $ | 1.33 | |||||||
Options vested | 2,470,411 | 4.7 years | $ | 1.28 | |||||||
The following is the intrinsic value at December 31, 2013 of: | |||||||||||
Options outstanding | $ | 6,030,482 | |||||||||
Options vested in 2013 | $ | 115,304 | |||||||||
Options exercised in 2013 | $ | 2,816,000 | |||||||||
The intrinsic value of options exercised during the year ended December 31, 2012 was $267,000. | |||||||||||
The following is the weighted average fair value for the twelve month period ended December 31, 2013 of: | |||||||||||
Options granted | $ | 2.59 | |||||||||
Options vested | $ | 2.27 | |||||||||
Investment_In_Affiliates
Investment In Affiliates | 12 Months Ended |
Dec. 31, 2013 | |
Investment In Joint Ventures [Abstract] | ' |
Investment In Affiliates | ' |
Note 11- Investment In Affiliates | |
In July 2011, the Company entered into a joint venture agreement with Safety Hi-Tech S.r.l. (“SHT”) and with the principals of Banini-Binotti Associates (“BB”). The joint venture created a new entity known as Hudson Technologies Europe, S.r.l. (“HTE”). As of December 31, 2013, the Company has divested itself of this joint venture. This divestiture did not have a material impact on the Company’s results of operations. | |
In August 2012, the Company entered into a joint venture agreement with SHT. T | |
he joint venture has created a new entity known as Safety Hi-Tech USA, LLC (“USA”). The Company and SHT each own 50% of USA. USA’s purpose is to develop a business that provides fire suppression and suppressants throughout North America and Mexico. As of December 31, 2013, the Company has made an investment of $440,000. Operations of the joint venture through December 31, 2013, have been immaterial. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Business | ' | |||||||
Business | ||||||||
Hudson Technologies, Inc., incorporated under the laws of New York on January 11, 1991, is a refrigerant services company providing innovative solutions to recurring problems within the refrigeration industry. The Company's products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, including (i) refrigerant sales, (ii) refrigerant management services consisting primarily of reclamation of refrigerants and (iii) RefrigerantSide® Services performed at a customer's site, consisting of system decontamination to remove moisture, oils and other contaminants. In addition, RefrigerantSide® Services include predictive and diagnostic services for industrial and commercial refrigeration applications, which are designed to predict potential catastrophic problems and identify inefficiencies in an operating system. The Company’s Chiller Chemistry®, Chill Smart®, Fluid Chemistry®, and Performance Optimization are predictive and diagnostic service offerings. As a component of the Company’s products and services, the Company also participates in the generation of carbon offset projects. The Company operates principally through its wholly-owned subsidiary, Hudson Technologies Company. Unless the context requires otherwise, references to the “Company”, “Hudson”, “we”, “us”, “our”, or similar pronouns refer to Hudson Technologies, Inc. and its subsidiaries. | ||||||||
In preparing the accompanying consolidated financial statements, and in accordance with ASC855-10 “Subsequent Events”, the Company’s management has evaluated subsequent events through the date that the financial statements were filed. | ||||||||
In the opinion of management, all estimates and adjustments considered necessary for a fair presentation have been included and all such adjustments were normal and recurring. | ||||||||
Consolidation | ' | |||||||
Consolidation | ||||||||
The consolidated financial statements represent all companies of which Hudson directly or indirectly has majority ownership or otherwise controls. Significant intercompany accounts and transactions have been eliminated. The Company's consolidated financial statements include the accounts of wholly-owned subsidiaries Hudson Holdings, Inc. and Hudson Technologies Company. | ||||||||
Fair value of financial instruments | ' | |||||||
Fair value of financial instruments | ||||||||
The carrying values of financial instruments including trade accounts receivable and accounts payable approximate fair value at December 31, 2013 and 2012, because of the relatively short maturity of these instruments. The carrying value of short and long-term debt approximates fair value, based upon quoted market rates of similar debt issues, as of December 31, 2013 and 2012. | ||||||||
Credit risk | ' | |||||||
Credit risk | ||||||||
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of temporary cash investments and trade accounts receivable. The Company maintains its temporary cash investments in highly-rated financial institutions and, at times, the balances exceed FDIC insurance coverage. The Company's trade accounts receivables are primarily due from companies throughout the United States. The Company reviews each customer's credit history before extending credit. | ||||||||
The Company establishes an allowance for doubtful accounts based on factors associated with the credit risk of specific accounts, historical trends, and other information. The carrying value of the Company’s accounts receivable is reduced by the established allowance for doubtful accounts. The allowance for doubtful accounts includes any accounts receivable balances that are determined to be uncollectible, along with a general reserve for the remaining accounts receivable balances. The Company adjusts its reserves based on factors that affect the collectability of the accounts receivable balances. | ||||||||
For the year ended December 31, 2013, two customers each accounted for 10% or more of the Company’s revenues and, in the aggregate these two customers accounted for 23% of the Company’s revenues. At December 31, 2013, there were $344,000 in outstanding receivables from these customers. | ||||||||
For the year ended December 31, 2012, two customers each accounted for 10% or more of the Company’s revenues and, in the aggregate these two customers accounted for 28% of the Company’s revenues. At December 31, 2012, there were no outstanding receivables from these customers. | ||||||||
The loss of a principal customer or a decline in the economic prospects of and/or a reduction in purchases of the Company's products or services by any such customer could have a material adverse effect on the Company's operating results and financial position. | ||||||||
Cash and cash equivalents | ' | |||||||
Cash and cash equivalents | ||||||||
Temporary investments with original maturities of ninety days or less are included in cash and cash equivalents. | ||||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories, consisting primarily of refrigerant products available for sale, are stated at the lower of cost, on a first-in first-out basis, or market. Where the market price of inventory is less than the related cost, the Company may be required to write down its inventory through a lower of cost or market adjustment, the impact of which is reflected in cost of sales on the Consolidated Statements of Operations. Any such adjustment is based on management’s judgment regarding future demand and market conditions and analysis of historical experience. For the year ended December 31, 2013, the Company recognized a lower of cost or market adjustment to inventory in the amount of $14,700,000. The LCM inventory adjustment, which significantly increased our cost of sales, was due to an approximately 50% decline in HCFC-22 refrigerant pricing from April to September 2013 following the issuance of the EPA’s final rule in April 2013. | ||||||||
Property, plant, and equipment | ' | |||||||
Property, plant and equipment | ||||||||
Property, plant and equipment are stated at cost, including internally manufactured equipment. The cost to complete equipment that is under construction is not considered to be material to the Company's financial position. Provision for depreciation is recorded (for financial reporting purposes) using the straight-line method over the useful lives of the respective assets. Leasehold improvements are amortized on a straight-line basis over the shorter of economic life or terms of the respective leases. Costs of maintenance and repairs are charged to expense when incurred. | ||||||||
Due to the specialized nature of the Company's business, it is possible that the Company's estimates of equipment useful life periods may change in the future. | ||||||||
Revenues and cost of sales | ' | |||||||
Revenues and cost of sales | ||||||||
Revenues are recorded upon completion of service or product shipment and passage of title to customers in accordance with contractual terms. The Company evaluates each sale to ensure collectability. In addition, each sale is based on an arrangement with the customer and the sales price to the buyer is fixed. License fees are recognized over the period of the license based on the respective performance measurements associated with the license. Royalty revenues are recognized when earned. Cost of sales is recorded based on the cost of products shipped or services performed and related direct operating costs of the Company's facilities. To the extent that the Company charges its customers shipping fees, such amounts are included as a component of revenue and the corresponding costs are included as a component of cost of sales. | ||||||||
The Company's revenues are derived from refrigerant and reclamation sales and RefrigerantSide® Services, including license and royalty revenues. The revenues for each of these lines are as follows: | ||||||||
Years Ended December 31, | 2013 | 2012 | ||||||
(in thousands) | ||||||||
Refrigerant and reclamation sales | $ | 54,293 | $ | 52,220 | ||||
RefrigerantSide® Services | 4,341 | 4,227 | ||||||
Total | $ | 58,634 | $ | 56,447 | ||||
Income taxes | ' | |||||||
Income taxes | ||||||||
The Company utilizes the asset and liability method for recording deferred income taxes, which provides for the establishment of deferred tax asset or liability accounts based on the difference between tax and financial reporting bases of certain assets and liabilities. The tax benefit associated with the Company's net operating loss carry forwards (“NOLs”) is recognized to the extent that the Company is expected to recognize future taxable income. The Company assesses the recoverability of its deferred tax assets based on its expectation that it will recognize future taxable income and adjusts its valuation allowance accordingly. As of December 31, 2013 and 2012, the net deferred tax asset was $6,112,000 and $4,122,000, respectively. | ||||||||
Certain states either do not allow or limit NOLs and as such the Company will be liable for certain state taxes. To the extent that the Company utilizes its NOLs, it will not pay tax on such income but may be subject to the federal alternative minimum tax. In addition, to the extent that the Company’s net income, if any, exceeds the annual NOL limitation it will pay income taxes based on existing statutory rates. Moreover, as a result of a “change in control”, as defined by the Internal Revenue Service, the Company’s ability to utilize its existing NOLs is subject to certain annual limitations. Approximately $10,600,000 of the Company’s $16,000,000 of NOLs are subject to annual limitations of $1,300,000. | ||||||||
The Company has a current income tax receivable of $ 2,709,000 at December 31, 2013. This receivable is primarily related to the pre-tax loss for the year ended December 31, 2013. | ||||||||
As a result of an Internal Revenue Service audit, the 2006 and prior federal tax years have been closed. The Company operates in many states throughout the United States and, as of December 31, 2013, the various states’ statutes of limitations remain open for tax years subsequent to 2008. The Company recognizes interest and penalties, if any, relating to income taxes as a component of the provision for income taxes. | ||||||||
The IRS recently initiated an examination of the Company’s federal income tax return for the fiscal year 2011. The Company does not expect the results of this examination to have a material effect on the Company’s financial statements. | ||||||||
The Company evaluates uncertain tax positions, if any, by determining if it is more likely than not to be sustained upon examination by the taxing authorities. As of December 31, 2013 and 2012, the Company had no uncertain tax positions. | ||||||||
Income per common and equivalent shares | ' | |||||||
Income per common and equivalent shares | ||||||||
If dilutive, common equivalent shares (common shares assuming exercise of options and warrants) utilizing the treasury stock method are considered in the presentation of diluted earnings per share. The reconciliation of shares used to determine net income per share is as follows (dollars in thousands): | ||||||||
Years Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Net (loss) income | $ | -5,842 | $ | 12,801 | ||||
Weighted average number of shares – basic | 24,826,101 | 23,906,706 | ||||||
Shares underlying warrants | 0 | 315,494 | ||||||
Shares underlying options | 0 | 2,131,760 | ||||||
Weighted average number of shares outstanding – diluted | 24,826,101 | 26,353,960 | ||||||
During the year ended December 31, 2013 and 2012, certain options and warrants aggregating 3,760,161 and no shares, respectively, have been excluded from the calculation of diluted shares, due to the fact that their effect would be anti-dilutive. | ||||||||
Estimates and risks | ' | |||||||
Estimates and risks | ||||||||
The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect reported amounts of certain assets and liabilities, the disclosure of contingent assets and liabilities, and the results of operations during the reporting period. Actual results could differ from these estimates. | ||||||||
The Company utilizes both internal and external sources to evaluate potential current and future liabilities for various commitments and contingencies. In the event that the assumptions or conditions change in the future, the estimates could differ from the original estimates. | ||||||||
Several of the Company's accounting policies involve significant judgments, uncertainties and estimations. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. To the extent that actual results differ from management's judgments and estimates, there could be a material adverse effect on the Company. On a continuous basis, the Company evaluates its estimates, including, but not limited to, those estimates related to its allowance for doubtful accounts, inventory reserves, and valuation allowance for the deferred tax assets relating to its NOLs and commitments and contingencies. With respect to accounts receivable, the Company estimates the necessary allowance for doubtful accounts based on both historical and anticipated trends of payment history and the ability of the customer to fulfill its obligations. For inventory, the Company evaluates both current and anticipated sales prices of its products to determine if a write down of inventory to net realizable value is necessary. In determining the Company’s valuation allowance for its deferred tax assets, the Company assesses its ability to generate taxable income in the future. | ||||||||
The Company participates in an industry that is highly regulated, and changes in the regulations affecting our business could affect our operating results. Currently the Company purchases virgin, hydro chlorofluorocarbon (“HCFC”) and hydro fluorocarbon (“HFC”) refrigerants and reclaimable, primarily HCFC and chlorofluorocarbon (“CFC”), refrigerants from suppliers and its customers. Effective January 1, 1996, the Clean Air Act (the “Act”) prohibited the production of virgin CFC refrigerants and limited the production of virgin HCFC refrigerants. Effective January 2004, the Act further limited the production of virgin HCFC refrigerants and federal regulations were enacted which established production and consumption allowances for HCFC refrigerants and which imposed limitations on the importation of certain virgin HCFC refrigerants. Under the Act, production of certain virgin HCFC refrigerants is scheduled to be phased out during the period 2010 through 2020, and production of all virgin HCFC refrigerants is scheduled to be phased out by 2030. Additionally, effective January 1, 2010, the Act further limited the production of virgin HCFC refrigerants, and additional federal regulations have been enacted which imposed further limitation and a phase down on the use, production and importation of virgin HCFC refrigerants for the years 2010 through 2014. As a result of litigation, the federal regulations implementing the January 2010 phase down schedule were vacated, and in April 2013, the Environmental Protection Agency (“EPA”) published a final rule providing for further reduction in the production of HCFC refrigerants when compared to the reductions established in the January 1, 2010 published rule. The final rule allows for the production or importation of 63 million and 51 million pounds of HCFC-22 in 2013 and 2014, respectively. The EPA has not yet issued a proposed or final rule establishing the total pounds of HCFC-22 that can be produced or imported during the years 2015 through 2019. | ||||||||
To the extent that the Company is unable to source sufficient quantities of refrigerants or is unable to obtain refrigerants on commercially reasonable terms or experiences a decline in demand and/or price for refrigerants sold by the Company, the Company could realize reductions in revenue from refrigerant sales, which could have a material adverse effect on its operating results and its financial position. | ||||||||
The Company is subject to various legal proceedings. The Company assesses the merit and potential liability associated with each of these proceedings. In addition, the Company estimates potential liability, if any, related to these matters. To the extent that these estimates are not accurate, or circumstances change in the future, the Company could realize liabilities, which could have a material adverse effect on its operating results and its financial position. | ||||||||
Impairment of long-lived assets | ' | |||||||
Impairment of long-lived assets | ||||||||
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less the cost to sell. | ||||||||
Recent accounting pronouncements | ' | |||||||
Recent accounting pronouncements | ||||||||
In March 2013, the FASB issued ASU No. 2013-05, which amends the guidance in ASC 830, “Foreign Currency Matters”. ASU No. 2013-05 addresses the accounting for the cumulative translation adjustment (“CTA”) when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. This amended guidance is to be applied prospectively and is effective for the Company beginning on January 1, 2014. The implementation of the amended accounting guidance is not expected to have a material impact on our consolidated financial position or results of operations. | ||||||||
In July 2013, the FASB issued ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." ASU 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in this Update are effective for fiscal years (and interim periods within those years) beginning after December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on our results of operations or our financial position. | ||||||||
Reclassification | ' | |||||||
Reclassification | ||||||||
Certain items in the 2012 financial statements have been reclassified for comparative purposes. | ||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Company's revenues | ' | |||||||
The revenues for each of these lines are as follows: | ||||||||
Years Ended December 31, | 2013 | 2012 | ||||||
(in thousands) | ||||||||
Refrigerant and reclamation sales | $ | 54,293 | $ | 52,220 | ||||
RefrigerantSide® Services | 4,341 | 4,227 | ||||||
Total | $ | 58,634 | $ | 56,447 | ||||
Reconciliation of shares used to determine net income per share | ' | |||||||
The reconciliation of shares used to determine net income per share is as follows (dollars in thousands): | ||||||||
Years Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Net (loss) income | $ | -5,842 | $ | 12,801 | ||||
Weighted average number of shares – basic | 24,826,101 | 23,906,706 | ||||||
Shares underlying warrants | 0 | 315,494 | ||||||
Shares underlying options | 0 | 2,131,760 | ||||||
Weighted average number of shares outstanding – diluted | 24,826,101 | 26,353,960 | ||||||
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||||||||
The following summarizes the (benefit) / provision for income taxes: | |||||||||
Years Ended December 31, | 2013 | 2012 | |||||||
(in thousands) | |||||||||
Current: | |||||||||
Federal | $ | -1,904 | $ | 1,846 | |||||
State and local | -224 | 585 | |||||||
-2,128 | 2,431 | ||||||||
Deferred: | |||||||||
Federal | -1,295 | -927 | |||||||
State and local | -153 | -109 | |||||||
-1,448 | -1,036 | ||||||||
(Benefit) / Provision for income taxes | $ | -3,576 | $ | 1,395 | |||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||
Reconciliation of the Company's actual tax rate to the U.S. Federal statutory rate is as follows: | |||||||||
Years ended December 31, | 2013 | 2012 | |||||||
Income tax rates | |||||||||
- Statutory U.S. federal rate | 34 | % | 34 | % | |||||
- States, net U.S. benefits | 4 | % | 4 | % | |||||
- Reduction of valuation allowance | 0 | % | -28 | % | |||||
Total | 38 | % | 10 | % | |||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||
Elements of deferred income tax assets (liabilities) are as follows: | |||||||||
December 31, | 2013 | 2012 | |||||||
(in thousands) | |||||||||
Deferred tax assets (liabilities) | |||||||||
- Depreciation & amortization | $ | -542 | $ | -112 | |||||
- Reserves for doubtful accounts | 86 | 86 | |||||||
- Inventory reserve | 120 | 148 | |||||||
- NOL | 5,906 | 4,000 | |||||||
Total | $ | 5,570 | $ | 4,122 | |||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories consist of the following: | ||||||||
December 31, | 2013 | 2012 | ||||||
(in thousands) | ||||||||
Refrigerant and cylinders | $ | 8,238 | $ | 9,893 | ||||
Packaged refrigerants | 25,729 | 30,274 | ||||||
Total | $ | 33,967 | $ | 40,167 | ||||
Property_plant_and_equipment_T
Property, plant and equipment (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||
Property, plant, and equipment | ' | ||||||||||
Elements of property, plant and equipment are as follows: | |||||||||||
December 31, | 2013 | 2012 | Estimated Lives | ||||||||
(in thousands) | |||||||||||
Property, plant and equipment | |||||||||||
- Land | $ | 535 | $ | 535 | |||||||
- Buildings | 830 | 830 | 39 years | ||||||||
- Building improvements | 776 | 770 | 39 years | ||||||||
- Equipment | 8,560 | 8,253 | 3-7 years | ||||||||
- Equipment under capital lease | 137 | 231 | 5-7 years | ||||||||
- Vehicles | 1,258 | 1,212 | 5 years | ||||||||
- Lab and computer equipment, software | 2,210 | 2,017 | 3-5 years | ||||||||
- Furniture & fixtures | 249 | 246 | 7-8 years | ||||||||
- Leasehold improvements | 70 | 40 | 3 years | ||||||||
- Equipment under construction | 37 | 96 | |||||||||
Subtotal | 14,662 | 14,230 | |||||||||
Accumulated depreciation | 10,126 | 9,465 | |||||||||
Total | $ | 4,536 | $ | 4,765 | |||||||
Shortterm_and_longterm_debt_Ta
Short-term and long-term debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Short-term and long-term debt | ' | |||||||
Elements of short-term and long-term debt are as follows: | ||||||||
December 31, | 2013 | 2012 | ||||||
(in thousands) | ||||||||
Short-term & long-term debt | ||||||||
Short-term debt: | ||||||||
- Bank credit line | $ | 15,080 | $ | 12,451 | ||||
- Long-term debt: current | 287 | 285 | ||||||
Subtotal | 15,367 | 12,736 | ||||||
Long-term debt: | ||||||||
- Bank credit line | 4,000 | 4,000 | ||||||
- Building and land mortgage | 603 | 764 | ||||||
- Vehicle and equipment loans | 298 | 327 | ||||||
- Capital lease obligations | 57 | 114 | ||||||
- Less: current maturities | -287 | -285 | ||||||
Subtotal | 4,671 | 4,920 | ||||||
Total short-term & long-term debt | $ | 20,038 | $ | 17,656 | ||||
Schedule of Minimum EBIDTA | ' | |||||||
The amendment suspended the minimum fixed charge ratio covenant until the quarterly period ending March 31, 2015 and set the minimum EBITDA for the quarters ended December 31, 2013 through December 31, 2014, as follows: | ||||||||
Period | Amount | |||||||
3 month period ended December 31, 2013 | $ | -2,154,000 | ||||||
3 month period ending March 31, 2014 | $ | 494,000 | ||||||
6 month period ending June 30, 2014 | $ | 2,035,000 | ||||||
9 month period ending September 30, 2014 | $ | 3,012,000 | ||||||
12 month period ending December 31, 2014 | $ | 1,879,000 | ||||||
Schedule Of EBITDA Calculation | ' | |||||||
The EBITDA was calculated as follows: | ||||||||
For the 3 months ending December 31, 2013 | ||||||||
Net loss | $ | -1,530,000 | ||||||
less: income tax benefit | -934,000 | |||||||
Loss before income taxes | -2,464,000 | |||||||
less: interest expense | 246,000 | |||||||
less: depreciation and amortization | 208,000 | |||||||
Earnings before interest, taxes, depreciation, | $ | -2,010,000 | ||||||
and amortization | ||||||||
Maturities of long-term debt and capital lease obligations | ' | |||||||
Scheduled maturities of the Company's long-term debt and capital lease obligations are as follows: | ||||||||
Years ended December 31, | Amount | |||||||
(in thousands) | ||||||||
-2014 | $ | 287 | ||||||
-2015 | 4,284 | |||||||
-2016 | 274 | |||||||
-2017 | 113 | |||||||
Total | $ | 4,958 | ||||||
Future minimum lease payments under capital leases | ' | |||||||
Scheduled future minimum lease payments under capital leases net of interest are as follows: | ||||||||
Years ended December 31, | Amount | |||||||
(in thousands) | ||||||||
-2014 | $ | 32 | ||||||
-2015 | 22 | |||||||
-2016 | 6 | |||||||
60 | ||||||||
Less interest expense | -3 | |||||||
Total | $ | 57 | ||||||
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||
Rent Expense | ' | ||||||
Hudson utilizes leased facilities and operates equipment under non-cancelable operating leases through August 31, 2018 as follows: | |||||||
Properties | |||||||
Location | Annual Rent | Lease Expiration Date | |||||
Auburn, Washington | $ | 27,000 | Month to Month | ||||
Baton Rouge, Louisiana | $ | 15,000 | Feb-15 | ||||
Champaign, Illinois | $ | 327,000 | Dec-14 | ||||
Charlotte, North Carolina | $ | 62,000 | Mar-16 | ||||
Hampstead, New Hampshire | $ | 28,000 | Aug-17 | ||||
Pearl River, New York | $ | 93,000 | Aug-18 | ||||
Pottsboro, Texas | $ | 18,000 | Aug-14 | ||||
Stony Point, NY | $ | 116,000 | Jun-16 | ||||
Tulsa, Oklahoma | $ | 26,000 | Dec-14 | ||||
Summarized table of future commitments under operating leases | ' | ||||||
Future commitments under operating leases are summarized as follows: | |||||||
Years ended December 31, | Amount | ||||||
(in thousands) | |||||||
-2014 | $ | 785 | |||||
-2015 | 315 | ||||||
-2016 | 202 | ||||||
-2017 | 124 | ||||||
-2018 | 70 | ||||||
Total | $ | 1,496 | |||||
ShareBased_compensation_Tables
Share-Based compensation (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Share-Based Compensation [Abstract] | ' | ||||||||||
Weighted-average assumptions used in determining fair value of share based awards | ' | ||||||||||
The Company determines the fair value of share based awards at the grant date by using the Black-Scholes option-pricing model, and is incorporating the simplified method to compute expected lives of share based awards with the following weighted-average assumptions: | |||||||||||
Years Ended December 31, | 2013 | 2012 | |||||||||
Assumptions | |||||||||||
Dividend yield | 0 | % | 0 | % | |||||||
Risk free interest rate | .85% - 1.64 | % | 1 | % | |||||||
Expected volatility | 59% - 76 | % | 73 | % | |||||||
Expected lives | 5 years | 5 years | |||||||||
Summary of status of company's stock option plan | ' | ||||||||||
A summary of the status of the Company's Plans as of December 31, 2013 and 2012 and changes for the periods ending on those dates is presented below: | |||||||||||
Stock Option Plan Totals | Shares | Weighted | |||||||||
Average | |||||||||||
Exercise Price | |||||||||||
Outstanding at December 31, 2011 | 3,435,443 | $ | 1.22 | ||||||||
• Cancelled | -8,313 | $ | 1.1 | ||||||||
• Exercised | -109,038 | $ | 1.42 | ||||||||
• Granted | 30,843 | $ | 3.27 | ||||||||
Outstanding at December 31, 2012 | 3,348,935 | $ | 1.23 | ||||||||
• Cancelled | -58,617 | $ | 1.87 | ||||||||
• Exercised | -945,761 | $ | 1.2 | ||||||||
• Granted | 173,354 | $ | 2.59 | ||||||||
Outstanding at December 31, 2013 | 2,517,911 | $ | 1.33 | ||||||||
Weighted average contractual life and exercise price | ' | ||||||||||
The following is the weighted average contractual life in years and the weighted average exercise price at December 31, 2013 of: | |||||||||||
Weighted Average | |||||||||||
Number of | Remaining | Weighted Average | |||||||||
Options | Contractual Life | Exercise Price | |||||||||
Options outstanding | 2,517,911 | 4.7 years | $ | 1.33 | |||||||
Options vested | 2,470,411 | 4.7 years | $ | 1.28 | |||||||
Intrinsic value | ' | ||||||||||
The following is the intrinsic value at December 31, 2013 of: | |||||||||||
Options outstanding | $ | 6,030,482 | |||||||||
Options vested in 2013 | $ | 115,304 | |||||||||
Options exercised in 2013 | $ | 2,816,000 | |||||||||
Weighted Average Fair Value | ' | ||||||||||
The following is the weighted average fair value for the twelve month period ended December 31, 2013 of: | |||||||||||
Options granted | $ | 2.59 | |||||||||
Options vested | $ | 2.27 | |||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
USD ($) | GBP (£) | USD ($) | Customer | Customer | Subsequent Event | |
USD ($) | USD ($) | GBP (£) | ||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Entity Incorporation Date Of Incorporation | 11-Jan-91 | 11-Jan-91 | ' | ' | ' | ' |
Number of customer accounted for approximately 10% or more of total revenues | 2 | 2 | 2 | ' | ' | ' |
Aggregate percentage of revenue the from customers accounted for more then 10% | 23.00% | 23.00% | 28.00% | ' | ' | ' |
Deferred tax asset | $5,363,000 | ' | $3,888,000 | ' | ' | ' |
Operating loss carryforwards, limitations on use | 'Approximately $10,600,000 of the Company’s $16,000,000 of NOLs are subject to annual limitations of $1,300,000 | 'Approximately $10,600,000 of the Company’s $16,000,000 of NOLs are subject to annual limitations of $1,300,000 | ' | ' | ' | ' |
Options and warrants excluded from the calculation of diluted shares | 3,760,161 | 3,760,161 | 0 | ' | ' | ' |
Production and importation permission from government agency, amount | ' | 63,000,000 | ' | ' | ' | 51,000,000 |
Accounts receivable, net | ' | ' | ' | 344,000 | 0 | ' |
Lower of cost or market adjustment | 14,700,000 | ' | 0 | ' | ' | ' |
Income Taxes Receivable, Current | 2,709,000 | ' | 122,000 | ' | ' | ' |
Unrecognized tax benefits | $0 | ' | $0 | ' | ' | ' |
Companys_Revenues_Detail
Company's Revenues (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Refrigerant and reclamation sales | $54,293 | $52,220 |
RefrigerantSideB. Services | 4,341 | 4,227 |
Total | $58,634 | $56,447 |
Reconciliation_of_Shares_Used_
Reconciliation of Shares Used to Determine Net Income per Share (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share Disclosure [Line Items] | ' | ' |
Net (loss) income | ($5,842) | $12,801 |
Weighted average number of shares - basic | 24,826,101 | 23,906,706 |
Weighted average number of shares outstanding - diluted | 24,826,101 | 26,353,960 |
Warrants | ' | ' |
Earnings Per Share Disclosure [Line Items] | ' | ' |
Shares underlying | 0 | 315,494 |
Options | ' | ' |
Earnings Per Share Disclosure [Line Items] | ' | ' |
Shares underlying | 0 | 2,131,760 |
Other_income_Additional_Inform
Other income - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income And Expenses [Line Items] | ' | ' |
Other income | $0 | $9,000 |
Income_taxes_Additional_Inform
Income taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax [Line Items] | ' | ' |
Income tax expense | ($3,576,000) | $1,395,000 |
Operating loss carryforwards | 16,000,000 | ' |
Operating loss carryforwards, limitations on use | 'Approximately $10,600,000 of the Company’s $16,000,000 of NOLs are subject to annual limitations of $1,300,000 | ' |
State and local income tax expense (benefit), continuing operations | ' | 5,395,000 |
Deferred tax assets | ' | 4,000,000 |
Income (loss) before income taxes | ($9,418,000) | $14,196,000 |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | ' | ' |
Federal | ($1,904) | $1,846 |
State and local | -224 | 585 |
Current income tax expense (benefit) | -2,128 | 2,431 |
Deferred: | ' | ' |
Federal | -1,295 | -927 |
State and local | -153 | -109 |
Deferred income tax expense (benefit) | -1,448 | -1,036 |
(Benefit) / Provision for income taxes | ($3,576) | $1,395 |
Reconciliation_of_Companys_Act
Reconciliation of Company's Actual Tax Rate to U.S. Federal Statutory Rate (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income tax rates | ' | ' |
- Statutory U.S. federal rate | 34.00% | 34.00% |
- States, net U.S. benefits | 4.00% | 4.00% |
- Reduction of valuation allowance | 0.00% | -28.00% |
Total | 38.00% | 10.00% |
Elements_of_Deferred_Income_Ta
Elements of Deferred Income Tax Assets (Liabilities) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets (liabilities) | ' | ' |
- Depreciation & amortization | ($542) | ($112) |
- Reserves for doubtful accounts | 86 | 86 |
- Inventory reserve | 120 | 148 |
- NOL | 5,906 | 4,000 |
Total | $5,570 | $4,122 |
Trade_accounts_receivable_net_
Trade accounts receivable - net - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Line Items] | ' | ' |
Trade accounts receivable are net of reserves for doubtful accounts | $227,000 | $227,000 |
Inventories_Detail
Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Inventories | $33,967 | $40,167 |
Refrigerant and cylinders | ' | ' |
Inventory [Line Items] | ' | ' |
Inventories | 8,238 | 9,893 |
Packaged refrigerants | ' | ' |
Inventory [Line Items] | ' | ' |
Inventories | $25,729 | $30,274 |
Property_plant_and_equipment_D
Property, plant and equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $14,662 | $14,230 |
Accumulated depreciation | 10,126 | 9,465 |
Total | 4,536 | 4,765 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 535 | 535 |
Buildings | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 830 | 830 |
Property, plant and equipment, useful life | '39 years | ' |
Building improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 776 | 770 |
Property, plant and equipment, useful life | '39 years | ' |
Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 8,560 | 8,253 |
Equipment | Maximum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '7 years | ' |
Equipment | Minimum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '3 years | ' |
Equipment under capital lease | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 137 | 231 |
Equipment under capital lease | Maximum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '7 years | ' |
Equipment under capital lease | Minimum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '5 years | ' |
Vehicles | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 1,258 | 1,212 |
Property, plant and equipment, useful life | '5 years | ' |
Lab and computer equipment, software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 2,210 | 2,017 |
Lab and computer equipment, software | Maximum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '5 years | ' |
Lab and computer equipment, software | Minimum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '3 years | ' |
Furniture & fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 249 | 246 |
Furniture & fixtures | Maximum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '8 years | ' |
Furniture & fixtures | Minimum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, useful life | '7 years | ' |
Leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 70 | 40 |
Property, plant and equipment, useful life | '3 years | ' |
Equipment under construction | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $37 | $96 |
Property_plant_and_equipment_A
Property, plant and equipment - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation | $779,000 | $524,000 |
Shortterm_and_longterm_debt_Ad
Short-term and long-term debt - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 15, 2013 | Dec. 31, 2012 | Jun. 22, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 15, 2013 | Jun. 22, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 15, 2013 | Jun. 22, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 01, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | Subsequent Event | Minimum | Maximum | Term Loan | Term Loan | Term Loan | Term Loan | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Mortgage Note | Mortgage Note | Vehicle And Equipment Loans | Vehicle And Equipment Loans | |
GBP (£) | USD ($) | USD ($) | Base Rate | Eurodollar | USD ($) | USD ($) | Base Rate | Eurodollar | USD ($) | Minimum | Maximum | ||||||||||
Debt Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing under PNC facility | ' | ' | ' | $40,000,000 | ' | $27,000,000 | ' | ' | ' | $4,000,000 | $4,000,000 | ' | ' | $36,000,000 | $23,000,000 | ' | ' | ' | $855,000 | ' | ' |
Fees and expenses relating to creation of PNC facility | 150,000 | 150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings outstanding under PNC facility | 19,080,000 | 19,080,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowing under PNC facility | 8,349,000 | 8,349,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PNC Facility effective rate of interest | 3.00% | 3.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 2.90% | 8.90% |
Interest rate description under PNC facility | ' | 'Interest charges with respect to loans are computed on the actual principal amount of loans outstanding during the month at a rate per annum equal to (A) with respect to domestic rate loans, the sum of (i) a rate per annum equal to the higher of (1) the base commercial lending rate of PNC, (2) the federal funds open rate plus .5% and (3) the daily LIBOR plus 1%, plus (ii) .5% and (B) with respect to Eurodollar rate loans, the sum of the Eurodollar rate plus 2.75%. | 'Interest charges with respect to loans are computed on the actual principal amount of loans outstanding during the month at a rate per annum equal to (A) with respect to domestic rate loans, the sum of (i) a rate per annum equal to the higher of (1) the base commercial lending rate of PNC, (2) the federal funds open rate plus .5% and (3) the daily LIBOR plus 1%, plus (ii) .5% and (B) with respect to Eurodollar rate loans, the sum of the Eurodollar rate plus 2.75%. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PNC facility spread rate for calculation of interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 2.75% | ' | ' | 1.00% | 2.75% | ' | ' | ' | ' |
Production and importation permission from government agency, amount | ' | ' | 63,000,000 | ' | ' | ' | 51,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | 1 | 1.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, description of variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Base Rate plus one percent | 'Eurodollar Rate plus two and three quarters of one percent | ' | ' | 'Base Rate plus one percent | 'Eurodollar Rate plus two and three quarters of one percent | ' | ' | ' | ' |
PNC credit Facility expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Jun-17 | ' | ' | ' |
Principal balance of this mortgage note | 603,000 | 603,000 | ' | ' | 764,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital leased assets gross | 60,000 | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Before Interest Taxes Depreciation And Amortization | -2,010,000 | 2,010,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest, Total | ' | 2,154,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Taxes Depreciation And Amortization | ' | $144,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shortterm_and_longterm_debt_De
Short-term and long-term debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Short-term debt: | ' | ' |
- Bank credit line | $15,080 | $12,451 |
- Long-term debt: current | 287 | 285 |
Subtotal | 15,367 | 12,736 |
Long-term debt: | ' | ' |
- Bank credit line | 4,000 | 4,000 |
- Building and land mortgage | 603 | 764 |
- Vehicle and equipment loans | 298 | 327 |
- Capital lease obligations | 57 | 114 |
- Less: current maturities | -287 | -285 |
Subtotal | 4,671 | 4,920 |
Total short-term & long-term debt | $20,038 | $17,656 |
Schedule_of_Minimum_EBIDTA_Det
Schedule of Minimum EBIDTA (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum EBIDTA [Line Items] | ' |
Income (Loss) from continuing operations before income taxes, extraordinary items, noncontrolling interest, total | $2,154,000 |
3 month period ending December 31, 2013 | ' |
Minimum EBIDTA [Line Items] | ' |
Income (Loss) from continuing operations before income taxes, extraordinary items, noncontrolling interest, total | -2,154,000 |
3 month period ending March 31, 2014 | ' |
Minimum EBIDTA [Line Items] | ' |
Income (Loss) from continuing operations before income taxes, extraordinary items, noncontrolling interest, total | 494,000 |
6 month period ending June 30, 2014 | ' |
Minimum EBIDTA [Line Items] | ' |
Income (Loss) from continuing operations before income taxes, extraordinary items, noncontrolling interest, total | 2,035,000 |
9 month period ending September 30, 2014 | ' |
Minimum EBIDTA [Line Items] | ' |
Income (Loss) from continuing operations before income taxes, extraordinary items, noncontrolling interest, total | 3,012,000 |
12 month period ending December 31, 2014 | ' |
Minimum EBIDTA [Line Items] | ' |
Income (Loss) from continuing operations before income taxes, extraordinary items, noncontrolling interest, total | $1,879,000 |
EBITDA_Calculation_Details
EBITDA Calculation (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Dec. 31, 2013 | |
EBITDA Calculation [Line Items] | ' | ' |
Net loss | ($1,530,000) | ' |
less: income tax benefit | -934,000 | ' |
Loss before income taxes | -2,464,000 | ' |
less: interest expense | 246,000 | ' |
less: depreciation and amortization | 208,000 | ' |
Earnings before interest, taxes, depreciation,and amortization | ($2,010,000) | $2,010,000 |
Maturities_of_longterm_debt_an
Maturities of long-term debt and capital lease obligations (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Maturities Of Long Term Debt And Capital Lease Obligations [Line Items] | ' |
-2014 | $287 |
-2015 | 4,284 |
-2016 | 274 |
-2017 | 113 |
Total | $4,958 |
Future_minimum_lease_payments_
Future minimum lease payments under capital leases (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Future Minimum Lease Payments Under Capital Leases [Line Items] | ' |
-2014 | $32 |
-2015 | 22 |
-2016 | 6 |
Capital leases, future minimum payments due | 60 |
Less interest expense | -3 |
Total | $57 |
Stockholders_equity_Additional
Stockholders' equity - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||
Nov. 09, 2012 | 17-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 05, 2009 | Nov. 09, 2012 | Nov. 09, 2012 | Jul. 07, 2010 | Mar. 07, 2011 | Mar. 04, 2011 | Jul. 07, 2010 | Aug. 05, 2009 | 17-May-12 | Dec. 31, 2012 | Jul. 07, 2010 | |
Efftec International Inc | Scott Macon Ltd | Stock Unit | 2010 Offering | 2010 Offering | 2010 Offering | 2009 Offering | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | ||||||
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, issued | ' | ' | 25,070,386 | 24,124,625 | ' | 133,589 | 26,716 | 2,737,500 | ' | ' | 1,368,750 | 1,470,000 | ' | ' | 2,737,500 |
Common stock, par value | ' | ' | $0.01 | $0.01 | $1.44 | $3.74 | $3.74 | ' | ' | ' | $2 | $1.15 | ' | ' | ' |
Net proceeds from issuance of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,900,000 | $1,400,000 | ' | ' | ' |
Stock issued during period, shares, issued for services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,500 | 20,000 | 20,000 | ' |
Stock issued during period, value, issued for services | ' | 74,000 | ' | 74,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Class of warrant or right, exercise price of warrants or rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | 2.6 | ' | ' | ' | ' |
Adjustment of warrants granted for services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' |
Estimated fair value of the warrant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48,000 | ' | ' | ' |
Class of warrant or right repurchase during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' |
Class of warrant or right issued unit during period | ' | ' | ' | ' | ' | ' | ' | ' | 1,218,750 | ' | ' | ' | ' | ' | ' |
Class of warrants expiration date | ' | ' | 7-Jul-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of shares issued for services | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent_Expense_Detail
Rent Expense (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Rent Expense [Line Items] | ' | ' |
Rent expense | $650,000 | $650,000 |
Auburn, Washington | ' | ' |
Rent Expense [Line Items] | ' | ' |
Rent expense | 27,000 | ' |
Lease Expiration Date | 'Month to Month | ' |
Baton Rouge, Louisiana | ' | ' |
Rent Expense [Line Items] | ' | ' |
Rent expense | 15,000 | ' |
Lease Expiration Date | 28-Feb-15 | ' |
Champaign, Illinois | ' | ' |
Rent Expense [Line Items] | ' | ' |
Rent expense | 327,000 | ' |
Lease Expiration Date | 31-Dec-14 | ' |
Charlotte, North Carolina | ' | ' |
Rent Expense [Line Items] | ' | ' |
Rent expense | 62,000 | ' |
Lease Expiration Date | 31-Mar-16 | ' |
Hampstead, New Hampshire | ' | ' |
Rent Expense [Line Items] | ' | ' |
Rent expense | 28,000 | ' |
Lease Expiration Date | 31-Aug-17 | ' |
Pearl River, New York | ' | ' |
Rent Expense [Line Items] | ' | ' |
Rent expense | 93,000 | ' |
Lease Expiration Date | 31-Aug-18 | ' |
Pottsboro, Texas | ' | ' |
Rent Expense [Line Items] | ' | ' |
Rent expense | 18,000 | ' |
Lease Expiration Date | 31-Aug-14 | ' |
Stony Point, NY | ' | ' |
Rent Expense [Line Items] | ' | ' |
Rent expense | 116,000 | ' |
Lease Expiration Date | 30-Jun-16 | ' |
Tulsa, Oklahoma | ' | ' |
Rent Expense [Line Items] | ' | ' |
Rent expense | $26,000 | ' |
Lease Expiration Date | 31-Dec-14 | ' |
Future_Commitments_under_Opera
Future Commitments under Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future Commitments Under Operating Leases [Line Items] | ' |
-2014 | $785 |
-2015 | 315 |
-2016 | 202 |
-2017 | 124 |
-2018 | 70 |
Total | $1,496 |
Commitments_and_contingencies_1
Commitments and contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies [Line Items] | ' | ' |
Rent expense | $650,000 | $650,000 |
Remediation costs | 100,000 | 102,000 |
Officers compensation | 288,500 | ' |
Insurance Policy Amount | $1,000,000 | ' |
Sharebased_compensation_Additi
Share-based compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 10, 2004 | Sep. 10, 2004 | Sep. 10, 2004 | Aug. 27, 2008 | Aug. 27, 2008 | Aug. 27, 2008 | Aug. 19, 1999 | Oct. 31, 1994 | |
Maximum | Minimum | Stock Option Plan | Stock Option Plan | 2004 Stock Incentive Plan | 2008 Stock Incentive Plan | 2004 Stock Incentive Plan | 2004 Stock Incentive Plan | 2004 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 1997 Employee Stock Option Plan | 1994 Employee Stock Option Plan | |||
Maximum | Minimum | Maximum | Minimum | |||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation expense | $122,000 | $134,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of stock option to purchase stock | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock reserved for issuance | 2,636,470 | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | 3,000,000 | ' | ' | 2,000,000 | 725,000 |
Share-based compensation arrangement by share based payment award options granted contractual term | ' | ' | '10 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option awards vesting period | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted | 173,354 | 30,843 | ' | ' | 173,354 | 30,843 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to bon-vested | 83,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Plan expiration date | ' | ' | ' | ' | ' | ' | ' | ' | 10-Sep-14 | ' | ' | 27-Aug-18 | ' | ' | 11-Jun-07 | 1-Nov-04 |
Options grant, expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '5 years | ' | '10 years | '5 years | ' | ' |
Intrinsic value of options exercised | ' | $267,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation arrangement by share based payment award options grants in period gross | ' | ' | ' | ' | ' | ' | 10,000 | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted_Average_Assumptions_U
Weighted Average Assumptions Used in Determining Fair Value of Share Based Awards at Grant Date by Using Black-Scholes Option Pricing Model (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Dividend yield | 0.00% | 0.00% |
Risk free interest rate | ' | 1.00% |
Risk free interest rate, minimum | 0.85% | ' |
Risk free interest rate, maximum | 1.64% | ' |
Expected volatility | ' | 73.00% |
Expected volatility, minimum | 59.00% | ' |
Expected volatility, maximum | 76.00% | ' |
Expected lives | '5 years | '5 years |
Summary_of_Status_of_Companys_
Summary of Status of Company's Stock Option Plan (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Shares | ' | ' |
Granted | 173,354 | 30,843 |
Weighted Average Exercise Price | ' | ' |
Granted | $2.59 | ' |
Stock Option Plan | ' | ' |
Shares | ' | ' |
Outstanding at beginning of period | 3,348,935 | 3,435,443 |
Cancelled | -58,617 | -8,313 |
Exercised | -945,761 | -109,038 |
Granted | 173,354 | 30,843 |
Outstanding at end of period | 2,517,911 | 3,348,935 |
Weighted Average Exercise Price | ' | ' |
Outstanding at beginning of period | $1.23 | 1.22 |
Cancelled | $1.87 | 1.1 |
Exercised | $1.20 | 1.42 |
Granted | $2.59 | 3.27 |
Outstanding at end of period | $1.33 | 1.23 |
Weighted_Average_Contractual_L
Weighted Average Contractual Life and Exercise Price (Detail) (Stock Option Plan, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Stock Option Plan | ' |
Number of Options | ' |
Options outstanding | 2,517,911 |
Options vested | 2,470,411 |
Weighted Average Remaining Contractual Life | ' |
Options outstanding | '4 years 8 months 12 days |
Options vested | '4 years 8 months 12 days |
Weighted Average Exercise Price | ' |
Options outstanding | $1.33 |
Options vested | $1.28 |
Intrinsic_Value_Detail
Intrinsic Value (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Schedule of Share based Compensation Arrangements by Share based Payment Award, Performance Options [Line Items] | ' |
Options outstanding | $6,030,482 |
Options vested in 2013 | 115,304 |
Options exercised in 2013 | $2,816,000 |
Weighted_Average_Fair_Value_De
Weighted Average Fair Value (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Weighted Average Fair Value [Line Items] | ' |
Options granted | $2.59 |
Options vested | $2.27 |
Investment_In_Affiliates_Addit
Investment In Affiliates - Additional Information (Detail) (Safety Hi-Tech USA LLC, USD $) | Dec. 31, 2013 | Aug. 01, 2012 |
Safety Hi-Tech USA LLC | ' | ' |
Investment [Line Items] | ' | ' |
Percentage of ownership in Joint Venture | ' | 50.00% |
Equity method investments | $440,000 | ' |