Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 09, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | HUDSON TECHNOLOGIES INC /NY | ||
Entity Central Index Key | 925528 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $73,995,626 | ||
Trading Symbol | HDSN | ||
Entity Common Stock, Shares Outstanding | 32,325,276 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $935 | $669 |
Trade accounts receivable - net | 3,968 | 3,706 |
Income taxes receivable | 0 | 2,709 |
Inventories | 37,017 | 33,967 |
Deferred tax asset | 397 | 207 |
Prepaid expenses and other current assets | 1,011 | 608 |
Total current assets | 43,328 | 41,866 |
Property, plant and equipment, less accumulated depreciation | 7,887 | 4,536 |
Other assets | 102 | 546 |
Deferred tax asset | 6,031 | 5,363 |
Goodwill | 265 | 0 |
Intangible assets, less accumulated amortization | 2,322 | 57 |
Total Assets | 59,935 | 52,368 |
Current liabilities: | ||
Accounts payable and accrued expenses | 4,510 | 3,955 |
Accrued payroll | 384 | 289 |
Short-term debt and current maturities of long-term debt | 6,320 | 15,367 |
Total current liabilities | 11,214 | 19,611 |
Other liabilities | 333 | 0 |
Long-term debt, less current maturities | 4,389 | 4,671 |
Total Liabilities | 15,936 | 24,282 |
Commitments and contingencies | ||
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 |
Common stock, $0.01 par value; shares authorized 50,000,000; issued and outstanding 32,312,276 and 25,070,386 | 323 | 251 |
Additional paid-in capital | 61,505 | 44,944 |
Accumulated deficit | -17,829 | -17,109 |
Total Stockholders' Equity | 43,999 | 28,086 |
Total Liabilities and Stockholders' Equity | $59,935 | $52,368 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, issued | 32,312,276 | 25,070,386 |
Common stock, outstanding | 32,312,276 | 25,070,386 |
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, 2014 | Dec. 31, 2013 |
Revenues | $55,810 | $58,634 |
Cost of sales, excluding lower of cost or market adjustment | 49,364 | 44,664 |
Lower of cost or market adjustment | 0 | 14,700 |
Gross profit (loss) | 6,446 | -730 |
Operating expenses: | ||
Selling and marketing | 2,723 | 3,032 |
General and administrative | 4,708 | 4,723 |
Total operating expenses | 7,431 | 7,755 |
Operating loss | -985 | -8,485 |
Other income (expense): | ||
Interest expense | -641 | -933 |
Total other income (expense) | -641 | -933 |
Loss before income taxes | -1,626 | -9,418 |
Income tax benefit | -906 | -3,576 |
Net loss | ($720) | ($5,842) |
Net loss per common share - Basic | ($0.02) | ($0.24) |
Net loss per common share - Diluted | ($0.02) | ($0.24) |
Weighted average number of shares outstanding - Basic | 29,122,746 | 24,826,101 |
Weighted average number of shares outstanding - Diluted | 29,122,746 | 24,826,101 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
In Thousands, except Share data | ||||
Balance at Dec. 31, 2012 | $32,696 | $241 | $43,722 | ($11,267) |
Beginning balance (in shares) at Dec. 31, 2012 | 24,124,625 | |||
Issuance of common stock upon exercise of stock options | 1,110 | 10 | 1,100 | 0 |
Issuance of common stock upon exercise of stock options (in shares) | 945,761 | |||
Value of share-based arrangements | 122 | 0 | 122 | 0 |
Value of share-based arrangements (in shares) | 0 | |||
Net 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 | |||
Sale of common stock | 15,616 | 69 | 15,547 | 0 |
Sale of common stock (in shares) | 6,900,000 | |||
Issuance of common stock upon exercise of stock options and warrants | 309 | 3 | 306 | 0 |
Issuance of common stock upon exercise of stock options and warrants (in shares) | 341,890 | |||
Value of share-based arrangements | 708 | 0 | 708 | 0 |
Value of share-based arrangements (in shares) | 0 | |||
Net loss | -720 | 0 | 0 | -720 |
Ending balance at Dec. 31, 2014 | $43,999 | $323 | $61,505 | ($17,829) |
Ending balance (in shares) at Dec. 31, 2014 | 32,312,276 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows from operating activities: | ||
Net loss | ($720) | ($5,842) |
Adjustments to reconcile net loss to cash used by operating activities: | ||
Depreciation and amortization | 979 | 808 |
Allowance for doubtful accounts | 31 | 31 |
Amortization of deferred finance cost | 112 | 95 |
Value of share-based payment arrangements | 708 | 122 |
Deferred tax benefit | -857 | -1,448 |
Other non cash expenses | 414 | 5,714 |
Changes in assets and liabilities: | ||
Trade accounts receivable | -293 | -1,781 |
Inventories | -1,150 | 486 |
Prepaid and other assets | -548 | 86 |
Income taxes receivable | 2,709 | -2,587 |
Accounts payable and accrued expenses | 316 | -2,101 |
Cash provided (used) by operating activities | 1,701 | -6,417 |
Cash flows from investing activities: | ||
Acquisition of Polar Technologies | -7,368 | 0 |
Additions to intangible assets | -10 | -11 |
Additions to property, plant, and equipment | -716 | -550 |
Decrease in investment in affiliates | 63 | 164 |
Cash used by investing activities | -8,031 | -397 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock - net | 15,925 | 1,110 |
Borrowing (repayment) of short-term debt - net | -9,024 | 2,629 |
Repayment of long-term debt | -305 | -247 |
Cash provided by financing activities | 6,596 | 3,492 |
(Decrease) increase in cash and cash equivalents | 266 | -3,322 |
Cash and cash equivalents at beginning of period | 669 | 3,991 |
Cash and cash equivalents at end of period | 935 | 669 |
Supplemental disclosure of cash flow information: | ||
Cash paid during period for interest | 529 | 838 |
Cash paid for income taxes | 0 | 1,085 |
Non cash investing activity: | ||
Deferred acquisition consideration | $667 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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 SmartEnergy OPS™ service is a web-based real time continuous monitoring service applicable to a facility’s refrigeration systems and other energy systems. 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. The Company does not present a statement of comprehensive income as its comprehensive income is not materially different than its net income. | ||||||||
Fair Value of Financial Instruments | ||||||||
The carrying values of financial instruments including trade accounts receivable and accounts payable approximate fair value at December 31, 2014 and December 31, 2013, 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, 2014 and December 31, 2013. | ||||||||
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 receivable 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, 2014, two customers each accounted for 10% or more of the Company’s revenues and, in the aggregate these two customers accounted for 25% of the Company’s revenues. At December 31, 2014, there were $688,000 in outstanding receivables from these customers. | ||||||||
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. | ||||||||
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. | ||||||||
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 customer 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, | 2014 | 2013 | ||||||
(in thousands) | ||||||||
Refrigerant and reclamation sales | $ | 50,460 | $ | 54,293 | ||||
RefrigerantSide® Services | 5,350 | 4,341 | ||||||
Total | $ | 55,810 | $ | 58,634 | ||||
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, 2014 and 2013, the net deferred tax asset was $6,428,000 and $5,570,000, 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 $8,000,000 of the Company’s $16,000,000 of NOLs are subject to annual limitations of $1,300,000. | ||||||||
As a result of an Internal Revenue Service audit, the 2011 and prior federal tax years have been closed. The Company operates in many states throughout the United States and, as of December 31, 2014, 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 returns for the fiscal years 2012 and 2013. 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, 2014 and 2013, 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, unaudited): | ||||||||
Years ended December 31, | ||||||||
2014 | 2013 | |||||||
Net loss | $ | -720 | $ | -5,842 | ||||
Weighted average number of shares - basic | 29,122,746 | 24,826,101 | ||||||
Shares underlying warrants | 0 | 0 | ||||||
Shares underlying options | 0 | 0 | ||||||
Weighted average number of shares outstanding - diluted | 29,122,746 | 24,826,101 | ||||||
During the year ended December 31, 2014 and 2013, certain options and warrants aggregating 4,449,624 and 3,760,161 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 hydrochlorofluorocarbon (“HCFC”) and hydrofluorocarbon (“HFC”) refrigerants and reclaimable, primarily HCFC, HFC 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 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. 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 the production or importation of 63 million and 51 million pounds of HCFC-22 in 2013 and 2014, respectively. The Company believes that the production permitted by the final rule created an oversupply of HCFC-22 during the 2013 cooling season. The Company believes that this oversupply resulted in a reduction in the market price of HCFC-22 during 2013, which resulted in the Company having to record a lower of cost or market adjustment in the amount of $14,700,000 for the year ended December 31, 2013 (the “LCM”). On October 16, 2014, the Administrator of the EPA signed a final rule providing further reductions in the production and consumption allowances for virgin HCFC refrigerants for the years 2015 through 2019 (the “Final Rule”). In the Final Rule, the EPA has established a linear draw down for the production or importation of virgin HCFC-22 that will start at approximately 22 million pounds in 2015 and reduce by approximately 4.5 million pounds each year and end at zero in 2020. | ||||||||
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 April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 changes the requirements for reporting discontinued operations so that only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results will be reported as discontinued operations in the financial statements when the component of an entity or group of components of an entity meets the criteria to be classified as held for sale, is disposed of by sale, or is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). Examples of a strategic shift that has (or will have) a major effect on an entity’s operations and financial results could include a disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity. A business or nonprofit activity that, on acquisition, meets the criteria to be classified as held for sale also is a discontinued operation. The amendments in ASU 2014-08 require an entity to present, for each comparative period, the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections, respectively, of the statement of financial position and also require additional disclosures about discontinued operations. Public business entities should apply the amendments in ASU 2014-08 prospectively to both disposals (or classifications as held for sale) of components of an entity and businesses that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The adoption of ASU 2014-08 will not have a material impact on our results of operations or our financial position. | ||||||||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. For a public entity, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. An entity should apply the amendments in ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. We are currently evaluating the effects of ASU 2014-09 and therefore cannot estimate the effects, if any, on historical or future revenue recognition at this time. | ||||||||
Income_taxes
Income taxes | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income taxes | Note 2 - Income taxes | |||||||
Income tax benefit for the years ended December 31, 2014 and 2013 were $906,000 and $3,576,000, respectively. The income tax benefits for each of the years ended December 31, 2014 and 2013 were for federal and state income tax at statutory rates applied to the pre-tax loss for each of the periods. Additionally, in 2014, the Company recognized a tax benefit from a prior year true up that will result in a current year tax deduction. | ||||||||
The following summarizes the (benefit) / provision for income taxes: | ||||||||
Years Ended December 31, | 2014 | 2013 | ||||||
(in thousands) | ||||||||
Current: | ||||||||
Federal | $ | 0 | $ | -1,904 | ||||
State and local | -49 | -224 | ||||||
-49 | -2,128 | |||||||
Deferred: | ||||||||
Federal | -767 | -1,295 | ||||||
State and local | -90 | -153 | ||||||
-857 | -1,448 | |||||||
Benefit for income taxes | $ | -906 | $ | -3,576 | ||||
Reconciliation of the Company's actual tax rate to the U.S. Federal statutory rate is as follows: | ||||||||
Years ended December 31, | 2014 | 2013 | ||||||
Income tax rates | ||||||||
- Statutory U.S. federal rate | 34 | % | 34 | % | ||||
- States, net U.S. benefits | 4 | % | 4 | % | ||||
- Tax benefit from prior year | 18 | % | 0 | |||||
Total | 56 | % | 38 | % | ||||
As of December 31, 2014, the Company had NOL's of approximately $16,000,000 expiring through 2033. Approximately $8,000,000 of the Company’s $16,000,000 of NOL’s are subject to annual limitations of $1,300,000. | ||||||||
Elements of deferred income tax assets (liabilities) are as follows: | ||||||||
December 31, | 2014 | 2013 | ||||||
(in thousands) | ||||||||
Deferred tax assets (liabilities) | ||||||||
- Depreciation & amortization | $ | -428 | $ | -542 | ||||
- Reserves for doubtful accounts | 92 | 86 | ||||||
- Inventory reserve | 305 | 120 | ||||||
- Non qualified stock options | 215 | 0 | ||||||
- NOL | 6,244 | 5,906 | ||||||
Total | $ | 6,428 | $ | 5,570 | ||||
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, 2014 | |
Receivables [Abstract] | |
Trade accounts receivable - net | Note 3 - Trade accounts receivable - net |
At December 31, 2014 and 2013, trade accounts receivable are net of reserves for doubtful accounts of $244,000 and $227,000, respectively. | |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory | Note 4- Inventories | |||||||
Inventories consist of the following: | ||||||||
December 31, | 2014 | 2013 | ||||||
(in thousands) | ||||||||
Refrigerant and cylinders | $ | 8,152 | $ | 8,238 | ||||
Packaged refrigerants | 28,865 | 25,729 | ||||||
Total | $ | 37,017 | $ | 33,967 | ||||
Property_plant_and_equipment
Property, plant and equipment | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Property, plant, and equipment | Note 5 - Property, plant and equipment | |||||||||
Elements of property, plant and equipment are as follows: | ||||||||||
December 31, | 2014 | 2013 | Estimated Lives | |||||||
(in thousands) | ||||||||||
Property, plant and equipment | ||||||||||
- Land | $ | 535 | $ | 535 | ||||||
- Buildings | 830 | 830 | 39 years | |||||||
- Building improvements | 776 | 776 | 39 years | |||||||
- Equipment | 12,429 | 8,560 | 3-7 years | |||||||
- Equipment under capital lease | 100 | 137 | 5-7 years | |||||||
- Vehicles | 1,281 | 1,258 | 5 years | |||||||
- Lab and computer equipment, software | 2,377 | 2,210 | 3-5 years | |||||||
- Furniture & fixtures | 265 | 249 | 7-8 years | |||||||
- Leasehold improvements | 90 | 70 | 3 years | |||||||
- Equipment under construction | 225 | 37 | ||||||||
Subtotal | 18,908 | 14,662 | ||||||||
Accumulated depreciation | 11,021 | 10,126 | ||||||||
Total | $ | 7,887 | $ | 4,536 | ||||||
Depreciation expense for the years ended December 31, 2014 and 2013 was $900,000 and $779,000, respectively. | ||||||||||
Shortterm_and_longterm_debt
Short-term and long-term debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Short-term and long-term debt | Note 6 - Short-term and long-term debt | |||||||
Elements of short-term and long-term debt are as follows: | ||||||||
December 31, | 2014 | 2013 | ||||||
(in thousands) | ||||||||
Short-term & long-term debt | ||||||||
Short-term debt: | ||||||||
- Bank credit line | $ | 6,056 | $ | 15,080 | ||||
- Long-term debt: current | 264 | 287 | ||||||
Subtotal | 6,320 | 15,367 | ||||||
Long-term debt: | ||||||||
- Bank credit line | 4,000 | 4,000 | ||||||
- Building and land mortgage | 437 | 603 | ||||||
- Vehicle and equipment loans | 172 | 298 | ||||||
- Capital lease obligations | 44 | 57 | ||||||
- Less: current maturities | -264 | -287 | ||||||
Subtotal | 4,389 | 4,671 | ||||||
Total short-term & long-term debt | $ | 10,709 | $ | 20,038 | ||||
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, as amended by the First Amendment to the PNC Facility, dated February 15, 2013, 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 $112,000 are being amortized over the life of the loan. At December 31, 2014, total borrowings under the PNC Facility were $10,056,000, and there was $15,000,000 available to borrow under the revolving line of credit. The effective interest rate under the PNC Facility was 4.25% at December 31, 2014. | ||||||||
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 defined in the PNC Facility) or, for Eurodollar Rate Loans (as defined in the PNC Facility) 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. 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 (as defined in the PNC Facility), 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 distributions 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 under the PNC Facility and suspended the minimum fixed charge ratio covenant until the quarterly period ending March 31, 2015. | ||||||||
The Second PNC Amendment also redefined the “Revolving Interest Rate” as well as the “Term Loan Rate” (as defined in the PNC Facility) as follows: | ||||||||
“Revolving Interest Rate” shall mean an interest rate per annum equal to (a) the sum of the Alternate Base Rate (as defined in the PNC Facility) 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 Loans. | ||||||||
“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. | ||||||||
On July 2, 2014, we entered into the Third Amendment to the PNC Facility (the “Third PNC Amendment”) which, among other things, extended the term of PNC Facility. Pursuant to the Third PNC Amendment, which was effective June 30, 2014, the Termination Date of the PNC Facility (as defined in the PNC Facility) has been extended to June 30, 2018. The Third PNC Amendment also amended the Minimum EBITDA covenant in the PNC Facility to require that the Company maintain, on a trailing 12 month basis, tested quarterly, minimum EBITDA for the quarters ending June 30, 2014 through December 31, 2014, as follows: | ||||||||
Period | Amount | |||||||
Six month period ending June 30, 2014 | $ | 1,123,000 | ||||||
Nine month period ending September 30, 2014 | $ | 1,330,000 | ||||||
Twelve month period ending December 31, 2014 | $ | 802,000 | ||||||
EBITDA, as defined by the PNC agreement, for the year ended December 31, 2014 was $1,116,000, which was in compliance with the EBITDA covenant, as amended by the Third PNC Amendment, for the period. The EBITDA was calculated as follows: | ||||||||
For the year ended | ||||||||
December 31, 2014 | ||||||||
Net (loss) | $ | -720,000 | ||||||
less: income tax benefit | -906,000 | |||||||
Loss before income taxes | -1,626,000 | |||||||
add: interest expense | 641,000 | |||||||
add: depreciation and amortization | 979,000 | |||||||
add: value of share-based payment arrangements | 708,000 | |||||||
Add: other non-cash expense | 414,000 | |||||||
Earnings before interest, taxes, depreciation, and amortization | $ | 1,116,000 | ||||||
EBITDA, as defined by the PNC agreement, 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 disclosure requirements and not as an indication that EBITDA is a substitute measure for income from operations. | ||||||||
The Company was in compliance with all covenants, as amended, under the PNC Facility as of December 31, 2014. 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 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 30, 2018, unless the commitments are terminated for any reason or 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, 2014 the principal balance of this mortgage note was $437,000. | ||||||||
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) | ||||||||
-2016 | 277 | |||||||
-2017 | 112 | |||||||
-2018 | 4,000 | |||||||
Total | $ | 4,389 | ||||||
Capital Lease Obligations | ||||||||
The Company rents certain equipment with a net book value of approximately $57,000 at December 31, 2014 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) | ||||||||
-2015 | $ | 31 | ||||||
-2016 | 15 | |||||||
-2017 | 2 | |||||||
Subtotal | 48 | |||||||
Less interest expense | -4 | |||||||
Total | $ | 44 | ||||||
Stockholders_equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' equity | Note 7 - Stockholders' equity |
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 upon 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 June 6, 2014 the Company entered into an Underwriting Agreement with an investment banking firm for itself and as representative for two other investment banking firms (collectively, the “Underwriters”), in connection with an underwritten offering (the “Offering”) of 6,000,000 shares of the Company’s common stock, par value $0.01 per share (the “Firm Shares”). Pursuant to the Underwriting Agreement, the Company agreed to sell to the Underwriters, and the Underwriters agreed to purchase from the Company, an aggregate of 6,000,000 shares of common stock at a price of $2.3375 per share, and the price to the public was $2.50 per share. Pursuant to the Underwriting Agreement, the Company also granted the Underwriters a 30 day option to purchase up to 900,000 additional shares of its common stock to cover over-allotments, if any. The Company also agreed to reimburse certain expenses incurred by the Underwriters in the Offering. | |
The closing of the Offering was held on June 11, 2014, at which time, the Company sold 6,900,000 shares of its common stock to the Underwriters (including 900,000 shares to cover over-allotments) at a price of $2.3375 per share, and received gross proceeds of $16,128,750. The Underwriters received reimbursement of expenses of $150,000, and the Company also incurred approximately $400,000 of additional expenses in connection with the Offering. | |
Commitments_and_contingencies
Commitments and contingencies | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||
Commitments and contingencies | Note 8 - 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 | Mar-15 | ||||
Brentwood, Tennessee | $ | 70,000 | Month to Month | ||||
Champaign, Illinois | $ | 340,000 | Dec-17 | ||||
Charlotte, North Carolina | $ | 63,000 | Mar-16 | ||||
Escondido, California | $ | 42,000 | Month to Month | ||||
Hampstead, New Hampshire | $ | 28,000 | Aug-17 | ||||
Nashville, Tennessee | $ | 143,000 | Feb-16 | ||||
Ontario, California | $ | 85,000 | Dec-18 | ||||
Pearl River, New York | $ | 93,000 | Aug-18 | ||||
Pottsboro, Texas | $ | 10,000 | Aug-17 | ||||
San Juan, Puerto Rico | $ | 53,000 | Month to Month | ||||
Stony Point, New York | $ | 116,000 | Jun-16 | ||||
Tulsa, Oklahoma | $ | 26,000 | Dec-17 | ||||
The Company rents properties and various equipment under operating leases. Rent expense for the years ended December 31, 2014 and 2013 totaled approximately $830,000 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) | |||||||
-2015 | $ | 1,120 | |||||
-2016 | 690 | ||||||
-2017 | 587 | ||||||
-2018 | 163 | ||||||
Total | $ | 2,560 | |||||
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. | |||||||
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 refrigerant 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 had 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, 2014 and 2013, the Company incurred $53,000 and $100,000, 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 2016 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, 2014 | ||||||||||
Share-Based Compensation [Abstract] | ||||||||||
Share-based Compensation | Note 9 - 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 year ended December 31, 2014 and 2013, the share-based compensation expense of $708,000 and $122,000, respectively, is reflected in general and administrative expenses in the consolidated Statements of Operations. | ||||||||||
Share-based awards have historically been stock options issued pursuant to the terms of the Company’s stock option and 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. As of December 31, 2014, the Plans authorized the issuance of stock options to purchase 6,000,000 shares of the Company’s common stock and, as of December 31, 2014 there were 4,466,233 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 vested from immediately to two years from the grant date and have had a contractual term ranging from three to ten years. | ||||||||||
During the years December 31, 2014 and 2013, the Company issued options to purchase 1,055,500 shares and 173,354 shares, respectively. As of December 31, 2014, there was $107,000 of unrecognized compensation cost related to non-vested previously granted option awards. | ||||||||||
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) incentive stock options (“ISOs”) under the Internal Revenue Code of 1986, as amended (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 could 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 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 September 10, 2014, the Company’s ability to grant options or other awards under the 2004 Plan expired. | ||||||||||
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). | ||||||||||
Effective September 17, 2014, the Company adopted its 2014 Stock Incentive Plan (“2014 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 2014 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 2014 Plan is sooner terminated, the ability to grant options or other awards under the 2014 Plan will expire on September 17, 2024. | ||||||||||
ISOs granted under the 2014 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 2014 Plan may not be granted at a price less than the fair market value of the common stock. Options granted under the 2014 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 | 2014 | 2013 | ||||||||
December 31, | ||||||||||
Assumptions | ||||||||||
Dividend yield | 0 | % | 0 | % | ||||||
Risk free interest rate | 1.00%-1.69% | .85%-1.64% | ||||||||
Expected volatility | 59%-66% | 59%-76% | ||||||||
Expected lives | 3-5 years | 5 years | ||||||||
A summary of the activity for the Company's Plans for the indicated periods is presented below: | ||||||||||
Stock Option Plan Totals | Shares | Weighted | ||||||||
Average | ||||||||||
Exercise Price | ||||||||||
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 | |||||||
-Exercised | -292,537 | $ | 1.03 | |||||||
-Granted | 1,055,500 | $ | 3.28 | |||||||
Outstanding at December 31, 2014 | 3,280,874 | $ | 1.98 | |||||||
The following is the weighted average contractual life in years and the weighted average exercise price at December 31, 2014 of: | ||||||||||
Weighted Average | ||||||||||
Number of | Remaining | Weighted Average | ||||||||
Options | Contractual Life | Exercise Price | ||||||||
Options outstanding | 3,280,874 | 3.3 years | $ | 1.98 | ||||||
Options vested | 3,212,263 | 3.3 years | $ | 1.94 | ||||||
The following is the intrinsic value at December 31, 2014 of: | ||||||||||
Options outstanding | $ | 5,907,000 | ||||||||
Options vested in 2014 | $ | 535,000 | ||||||||
Options exercised in 2014 | $ | 793,000 | ||||||||
The intrinsic value of options exercised during the year ended December 31, 2013 was $2,816,000. | ||||||||||
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Acquisitions | Note 10 - Acquisitions |
On November 5, 2014 the Company purchased certain assets from Polar Technologies, LLC related to its refrigerant reclamation business and facilities in Nashville, Tennessee; Ontario, California, and San Juan, Puerto Rico; hiring approximately 32 Polar employees associated with the business. The purchase price for this acquisition was $8,035,000. A portion of the purchase price is to be paid in the future pursuant to the agreement. The valuation of the assets acquired is preliminary and subject to change as the purchase price allocation is finalized. The preliminary asset allocation reflected in these financial statements is approximately $5,435,000 of tangible assets, approximately $2,335,000 of intangible assets, and approximately $265,000 of goodwill. The intangible assets will be amortized over a period of 2 to 10 years. The goodwill recognized as part of the acquisition, will be deductible for tax purposes. | |
The Company expensed approximately $163,000 of professional fees associated with the acquisition for the year ended December 31, 2014, which is classified in selling, general and administrative expenses. | |
The results of the “Polar” operations are included in the Company’s consolidated statement of operations from the date of acquisition, and are not material to the Company’s financial position or results of operations. | |
Pro Forma Information | |
Pro forma revenues and results of operations as if Polar Technologies had been acquired on January 1, 2013 are not presented, as the acquisition is not material to our financial position or our results of operations. | |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 11 – Subsequent Event |
On January 16, 2015, Hudson Technologies, Inc. acquired the business and assets of a west coast based supplier of refrigerants and compressed gases. The cash consideration paid for this acquisition is not material to the Company’s financial position. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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 SmartEnergy OPS™ service is a web-based real time continuous monitoring service applicable to a facility’s refrigeration systems and other energy systems. 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. The Company does not present a statement of comprehensive income as its comprehensive income is not materially different than its net income. | ||||||||
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, 2014 and December 31, 2013, 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, 2014 and December 31, 2013. | ||||||||
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 receivable 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, 2014, two customers each accounted for 10% or more of the Company’s revenues and, in the aggregate these two customers accounted for 25% of the Company’s revenues. At December 31, 2014, there were $688,000 in outstanding receivables from these customers. | ||||||||
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. | ||||||||
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. | ||||||||
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 customer 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, | 2014 | 2013 | ||||||
(in thousands) | ||||||||
Refrigerant and reclamation sales | $ | 50,460 | $ | 54,293 | ||||
RefrigerantSide® Services | 5,350 | 4,341 | ||||||
Total | $ | 55,810 | $ | 58,634 | ||||
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, 2014 and 2013, the net deferred tax asset was $6,428,000 and $5,570,000, 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 $8,000,000 of the Company’s $16,000,000 of NOLs are subject to annual limitations of $1,300,000. | ||||||||
As a result of an Internal Revenue Service audit, the 2011 and prior federal tax years have been closed. The Company operates in many states throughout the United States and, as of December 31, 2014, 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 returns for the fiscal years 2012 and 2013. 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, 2014 and 2013, 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, unaudited): | ||||||||
Years ended December 31, | ||||||||
2014 | 2013 | |||||||
Net loss | $ | -720 | $ | -5,842 | ||||
Weighted average number of shares - basic | 29,122,746 | 24,826,101 | ||||||
Shares underlying warrants | 0 | 0 | ||||||
Shares underlying options | 0 | 0 | ||||||
Weighted average number of shares outstanding - diluted | 29,122,746 | 24,826,101 | ||||||
During the year ended December 31, 2014 and 2013, certain options and warrants aggregating 4,449,624 and 3,760,161 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 hydrochlorofluorocarbon (“HCFC”) and hydrofluorocarbon (“HFC”) refrigerants and reclaimable, primarily HCFC, HFC 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 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. 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 the production or importation of 63 million and 51 million pounds of HCFC-22 in 2013 and 2014, respectively. The Company believes that the production permitted by the final rule created an oversupply of HCFC-22 during the 2013 cooling season. The Company believes that this oversupply resulted in a reduction in the market price of HCFC-22 during 2013, which resulted in the Company having to record a lower of cost or market adjustment in the amount of $14,700,000 for the year ended December 31, 2013 (the “LCM”). On October 16, 2014, the Administrator of the EPA signed a final rule providing further reductions in the production and consumption allowances for virgin HCFC refrigerants for the years 2015 through 2019 (the “Final Rule”). In the Final Rule, the EPA has established a linear draw down for the production or importation of virgin HCFC-22 that will start at approximately 22 million pounds in 2015 and reduce by approximately 4.5 million pounds each year and end at zero in 2020. | ||||||||
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 April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 changes the requirements for reporting discontinued operations so that only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results will be reported as discontinued operations in the financial statements when the component of an entity or group of components of an entity meets the criteria to be classified as held for sale, is disposed of by sale, or is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). Examples of a strategic shift that has (or will have) a major effect on an entity’s operations and financial results could include a disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity. A business or nonprofit activity that, on acquisition, meets the criteria to be classified as held for sale also is a discontinued operation. The amendments in ASU 2014-08 require an entity to present, for each comparative period, the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections, respectively, of the statement of financial position and also require additional disclosures about discontinued operations. Public business entities should apply the amendments in ASU 2014-08 prospectively to both disposals (or classifications as held for sale) of components of an entity and businesses that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The adoption of ASU 2014-08 will not have a material impact on our results of operations or our financial position. | ||||||||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. For a public entity, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. An entity should apply the amendments in ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. We are currently evaluating the effects of ASU 2014-09 and therefore cannot estimate the effects, if any, on historical or future revenue recognition at this time. | ||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Company's revenues | The revenues for each of these lines are as follows: | |||||||
Years Ended December 31, | 2014 | 2013 | ||||||
(in thousands) | ||||||||
Refrigerant and reclamation sales | $ | 50,460 | $ | 54,293 | ||||
RefrigerantSide® Services | 5,350 | 4,341 | ||||||
Total | $ | 55,810 | $ | 58,634 | ||||
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, unaudited): | |||||||
Years ended December 31, | ||||||||
2014 | 2013 | |||||||
Net loss | $ | -720 | $ | -5,842 | ||||
Weighted average number of shares - basic | 29,122,746 | 24,826,101 | ||||||
Shares underlying warrants | 0 | 0 | ||||||
Shares underlying options | 0 | 0 | ||||||
Weighted average number of shares outstanding - diluted | 29,122,746 | 24,826,101 | ||||||
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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, | 2014 | 2013 | ||||||
(in thousands) | ||||||||
Current: | ||||||||
Federal | $ | 0 | $ | -1,904 | ||||
State and local | -49 | -224 | ||||||
-49 | -2,128 | |||||||
Deferred: | ||||||||
Federal | -767 | -1,295 | ||||||
State and local | -90 | -153 | ||||||
-857 | -1,448 | |||||||
Benefit for income taxes | $ | -906 | $ | -3,576 | ||||
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, | 2014 | 2013 | ||||||
Income tax rates | ||||||||
- Statutory U.S. federal rate | 34 | % | 34 | % | ||||
- States, net U.S. benefits | 4 | % | 4 | % | ||||
- Tax benefit from prior year | 18 | % | 0 | |||||
Total | 56 | % | 38 | % | ||||
Schedule of Deferred Tax Assets and Liabilities | Elements of deferred income tax assets (liabilities) are as follows: | |||||||
December 31, | 2014 | 2013 | ||||||
(in thousands) | ||||||||
Deferred tax assets (liabilities) | ||||||||
- Depreciation & amortization | $ | -428 | $ | -542 | ||||
- Reserves for doubtful accounts | 92 | 86 | ||||||
- Inventory reserve | 305 | 120 | ||||||
- Non qualified stock options | 215 | 0 | ||||||
- NOL | 6,244 | 5,906 | ||||||
Total | $ | 6,428 | $ | 5,570 | ||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories consist of the following: | |||||||
December 31, | 2014 | 2013 | ||||||
(in thousands) | ||||||||
Refrigerant and cylinders | $ | 8,152 | $ | 8,238 | ||||
Packaged refrigerants | 28,865 | 25,729 | ||||||
Total | $ | 37,017 | $ | 33,967 | ||||
Property_plant_and_equipment_T
Property, plant and equipment (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Property, plant, and equipment | Elements of property, plant and equipment are as follows: | |||||||||
December 31, | 2014 | 2013 | Estimated Lives | |||||||
(in thousands) | ||||||||||
Property, plant and equipment | ||||||||||
- Land | $ | 535 | $ | 535 | ||||||
- Buildings | 830 | 830 | 39 years | |||||||
- Building improvements | 776 | 776 | 39 years | |||||||
- Equipment | 12,429 | 8,560 | 3-7 years | |||||||
- Equipment under capital lease | 100 | 137 | 5-7 years | |||||||
- Vehicles | 1,281 | 1,258 | 5 years | |||||||
- Lab and computer equipment, software | 2,377 | 2,210 | 3-5 years | |||||||
- Furniture & fixtures | 265 | 249 | 7-8 years | |||||||
- Leasehold improvements | 90 | 70 | 3 years | |||||||
- Equipment under construction | 225 | 37 | ||||||||
Subtotal | 18,908 | 14,662 | ||||||||
Accumulated depreciation | 11,021 | 10,126 | ||||||||
Total | $ | 7,887 | $ | 4,536 | ||||||
Shortterm_and_longterm_debt_Ta
Short-term and long-term debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Short-term and long-term debt | Elements of short-term and long-term debt are as follows: | |||||||
December 31, | 2014 | 2013 | ||||||
(in thousands) | ||||||||
Short-term & long-term debt | ||||||||
Short-term debt: | ||||||||
- Bank credit line | $ | 6,056 | $ | 15,080 | ||||
- Long-term debt: current | 264 | 287 | ||||||
Subtotal | 6,320 | 15,367 | ||||||
Long-term debt: | ||||||||
- Bank credit line | 4,000 | 4,000 | ||||||
- Building and land mortgage | 437 | 603 | ||||||
- Vehicle and equipment loans | 172 | 298 | ||||||
- Capital lease obligations | 44 | 57 | ||||||
- Less: current maturities | -264 | -287 | ||||||
Subtotal | 4,389 | 4,671 | ||||||
Total short-term & long-term debt | $ | 10,709 | $ | 20,038 | ||||
Schedule of Minimum EBIDTA | The Third PNC Amendment also amended the Minimum EBITDA covenant in the PNC Facility to require that the Company maintain, on a trailing 12 month basis, tested quarterly, minimum EBITDA for the quarters ending June 30, 2014 through December 31, 2014, as follows: | |||||||
Period | Amount | |||||||
Six month period ending June 30, 2014 | $ | 1,123,000 | ||||||
Nine month period ending September 30, 2014 | $ | 1,330,000 | ||||||
Twelve month period ending December 31, 2014 | $ | 802,000 | ||||||
Schedule Of EBITDA Calculation | The EBITDA was calculated as follows: | |||||||
For the year ended | ||||||||
December 31, 2014 | ||||||||
Net (loss) | $ | -720,000 | ||||||
less: income tax benefit | -906,000 | |||||||
Loss before income taxes | -1,626,000 | |||||||
add: interest expense | 641,000 | |||||||
add: depreciation and amortization | 979,000 | |||||||
add: value of share-based payment arrangements | 708,000 | |||||||
Add: other non-cash expense | 414,000 | |||||||
Earnings before interest, taxes, depreciation, and amortization | $ | 1,116,000 | ||||||
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) | ||||||||
-2016 | 277 | |||||||
-2017 | 112 | |||||||
-2018 | 4,000 | |||||||
Total | $ | 4,389 | ||||||
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) | ||||||||
-2015 | $ | 31 | ||||||
-2016 | 15 | |||||||
-2017 | 2 | |||||||
Subtotal | 48 | |||||||
Less interest expense | -4 | |||||||
Total | $ | 44 | ||||||
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
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 | Mar-15 | ||||
Brentwood, Tennessee | $ | 70,000 | Month to Month | ||||
Champaign, Illinois | $ | 340,000 | Dec-17 | ||||
Charlotte, North Carolina | $ | 63,000 | Mar-16 | ||||
Escondido, California | $ | 42,000 | Month to Month | ||||
Hampstead, New Hampshire | $ | 28,000 | Aug-17 | ||||
Nashville, Tennessee | $ | 143,000 | Feb-16 | ||||
Ontario, California | $ | 85,000 | Dec-18 | ||||
Pearl River, New York | $ | 93,000 | Aug-18 | ||||
Pottsboro, Texas | $ | 10,000 | Aug-17 | ||||
San Juan, Puerto Rico | $ | 53,000 | Month to Month | ||||
Stony Point, New York | $ | 116,000 | Jun-16 | ||||
Tulsa, Oklahoma | $ | 26,000 | Dec-17 | ||||
Summarized table of future commitments under operating leases | Future commitments under operating leases are summarized as follows: | ||||||
Years ended December 31, | Amount | ||||||
(in thousands) | |||||||
-2015 | $ | 1,120 | |||||
-2016 | 690 | ||||||
-2017 | 587 | ||||||
-2018 | 163 | ||||||
Total | $ | 2,560 | |||||
Sharebased_Compensation_Tables
Share-based Compensation (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
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 | 2014 | 2013 | ||||||||
December 31, | ||||||||||
Assumptions | ||||||||||
Dividend yield | 0 | % | 0 | % | ||||||
Risk free interest rate | 1.00%-1.69% | .85%-1.64% | ||||||||
Expected volatility | 59%-66% | 59%-76% | ||||||||
Expected lives | 3-5 years | 5 years | ||||||||
Summary of status of company's stock option plan | A summary of the activity for the Company's Plans for the indicated periods is presented below: | |||||||||
Stock Option Plan Totals | Shares | Weighted | ||||||||
Average | ||||||||||
Exercise Price | ||||||||||
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 | |||||||
-Exercised | -292,537 | $ | 1.03 | |||||||
-Granted | 1,055,500 | $ | 3.28 | |||||||
Outstanding at December 31, 2014 | 3,280,874 | $ | 1.98 | |||||||
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, 2014 of: | |||||||||
Weighted Average | ||||||||||
Number of | Remaining | Weighted Average | ||||||||
Options | Contractual Life | Exercise Price | ||||||||
Options outstanding | 3,280,874 | 3.3 years | $ | 1.98 | ||||||
Options vested | 3,212,263 | 3.3 years | $ | 1.94 | ||||||
Intrinsic value | The following is the intrinsic value at December 31, 2014 of: | |||||||||
Options outstanding | $ | 5,907,000 | ||||||||
Options vested in 2014 | $ | 535,000 | ||||||||
Options exercised in 2014 | $ | 793,000 | ||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Line Items] | ||
Entity Incorporation Date Of Incorporation | 11-Jan-91 | |
Concentration risk, customer | two customers each accounted for 10% or more of the Companys revenues | two customers each accounted for 10% or more of the Companys revenues |
Aggregate percentage of revenue the from customers accounted for more than 10% | 25.00% | 23.00% |
Deferred tax asset | $6,428,000 | $5,570,000 |
Operating loss carryforwards, limitations on use | Approximately $8,000,000 of the Companys $16,000,000 of NOLs are subject to annual limitations of $1,300,000 | |
Options and warrants excluded from the calculation of diluted shares | 4,449,624 | 3,760,161 |
Production and importation permission description | 22 million pounds in 2015 and reduce by approximately 4.5 million pounds each year and end at zero in 2020 | |
Lower Of Cost Or Market Adjustment Amount | 14,700,000 | |
Customer | ||
Significant Accounting Policies [Line Items] | ||
Accounts receivable, net | $688,000 | $344,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information (Details 1) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
lb | lb | |
Significant Accounting Policies [Line Items] | ||
Production Or Importation Of Hcfc | 51,000,000 | 63,000,000 |
Companys_Revenues_Detail
Company's Revenues (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Refrigerant and reclamation sales | $50,460 | $54,293 |
RefrigerantSideB. Services | 5,350 | 4,341 |
Total | $55,810 | $58,634 |
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, 2014 | Dec. 31, 2013 |
Earnings Per Share Disclosure [Line Items] | ||
Net loss | ($720) | ($5,842) |
Weighted average number of shares - basic | 29,122,746 | 24,826,101 |
Weighted average number of shares outstanding - diluted | 29,122,746 | 24,826,101 |
Warrants | ||
Earnings Per Share Disclosure [Line Items] | ||
Shares underlying | 0 | 0 |
Options | ||
Earnings Per Share Disclosure [Line Items] | ||
Shares underlying | 0 | 0 |
Income_taxes_Additional_Inform
Income taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax [Line Items] | ||
Income Tax Expense (Benefit) | ($906,000) | ($3,576,000) |
Operating Loss Carryforwards | $16,000,000 | |
Operating Loss Carryforwards, Limitations On Use | Approximately $8,000,000 of the Companys $16,000,000 of NOLs are subject to annual limitations of $1,300,000 | |
Operating Loss Carryforwards Expiration Period | 2033 |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Current: | ||
Federal | $0 | ($1,904) |
State and local | -49 | -224 |
Current Income Tax Expense (Benefit) | -49 | -2,128 |
Deferred: | ||
Federal | -767 | -1,295 |
State and local | -90 | -153 |
Deferred Income Tax Expense (Benefit) | -857 | -1,448 |
Benefit for income taxes | ($906) | ($3,576) |
Reconciliation_of_Companys_Act
Reconciliation of Company's Actual Tax Rate to U.S. Federal Statutory Rate (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income tax rates | ||
- Statutory U.S. federal rate | 34.00% | 34.00% |
- States, net U.S. benefits | 4.00% | 4.00% |
- Tax benefit from prior year | 18.00% | 0.00% |
Total | 56.00% | 38.00% |
Elements_of_Deferred_Income_Ta
Elements of Deferred Income Tax Assets (Liabilities) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets And Liabilities [Line Items] | ||
- Depreciation & amortization | ($428) | ($542) |
- Reserves for doubtful accounts | 92 | 86 |
- Inventory reserve | 305 | 120 |
- Non qualified stock options | 215 | 0 |
- NOL | 6,244 | 5,906 |
Total | $6,428 | $5,570 |
Trade_accounts_receivable_net_
Trade accounts receivable - net - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Receivables [Line Items] | ||
Trade accounts receivable are net of reserves for doubtful accounts | $244,000 | $227,000 |
Inventories_Detail
Inventories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Inventories | $37,017 | $33,967 |
Refrigerant and cylinders [Member] | ||
Inventory [Line Items] | ||
Inventories | 8,152 | 8,238 |
Packaged refrigerants [Member] | ||
Inventory [Line Items] | ||
Inventories | $28,865 | $25,729 |
Property_plant_and_equipment_A
Property, plant and equipment - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $900,000 | $779,000 |
Property_plant_and_equipment_D
Property, plant and equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $18,908 | $14,662 |
Accumulated depreciation | 11,021 | 10,126 |
Total | 7,887 | 4,536 |
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 | 776 |
Property, Plant and Equipment, Useful Life | 39 years | |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 12,429 | 8,560 |
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 | 100 | 137 |
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 | 1,281 | 1,258 |
Property, Plant and Equipment, Useful Life | 5 years | |
Lab and computer equipment, software | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,377 | 2,210 |
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 | 265 | 249 |
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 | 90 | 70 |
Property, Plant and Equipment, Useful Life | 3 years | |
Equipment under construction | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $225 | $37 |
Shortterm_and_longterm_debt_Ad
Short-term and long-term debt - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Oct. 25, 2013 | Dec. 31, 2013 | Feb. 15, 2013 | Jun. 01, 2012 | |
Debt Disclosure [Line Items] | |||||
Maximum borrowing under PNC facility | $40,000,000 | ||||
Fees and expenses relating to creation of PNC facility | 112,000 | ||||
Available borrowing under PNC facility | 15,000,000 | ||||
PNC Facility effective rate of interest | 4.25% | ||||
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 (as defined in the PNC Facility), 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%. | ||||
Earnings Before Interest Taxes Depreciation And Amortization | 1,116,000 | ||||
Borrowings outstanding under PNC facility | 10,056,000 | ||||
Principal balance of this mortgage note | 437,000 | 603,000 | |||
Capital leased assets gross | 57,000 | ||||
Minimum | |||||
Debt Disclosure [Line Items] | |||||
Fixed charge coverage ratio | 1 | 1 | |||
Maximum | |||||
Debt Disclosure [Line Items] | |||||
Fixed charge coverage ratio | 1.1 | 1.1 | |||
Term Loan | |||||
Debt Disclosure [Line Items] | |||||
Maximum borrowing under PNC facility | 4,000,000 | ||||
Term Loan | Base Rate | |||||
Debt Disclosure [Line Items] | |||||
Debt instrument, description of variable rate basis | Base Rate plus one percent | ||||
Term Loan | Eurodollar | |||||
Debt Disclosure [Line Items] | |||||
Debt instrument, description of variable rate basis | Eurodollar Rate plus two and three quarters of one percent | ||||
Revolving Credit Facility | |||||
Debt Disclosure [Line Items] | |||||
Maximum borrowing under PNC facility | 36,000,000 | ||||
Revolving Credit Facility | Base Rate | |||||
Debt Disclosure [Line Items] | |||||
Debt instrument, description of variable rate basis | Base Rate (as defined in the PNC Facility) plus one percent | ||||
Revolving Credit Facility | Eurodollar | |||||
Debt Disclosure [Line Items] | |||||
Debt instrument, description of variable rate basis | Eurodollar Rate plus two and three quarters of one percent | ||||
Mortgage Note | |||||
Debt Disclosure [Line Items] | |||||
Maximum borrowing under PNC facility | $855,000 | ||||
PNC Facility effective rate of interest | 4.00% | ||||
PNC credit Facility expiration date | 1-Jun-17 | ||||
Vehicle And Equipment Loans | Minimum | |||||
Debt Disclosure [Line Items] | |||||
PNC Facility effective rate of interest | 2.90% | ||||
Vehicle And Equipment Loans | Maximum | |||||
Debt Disclosure [Line Items] | |||||
PNC Facility effective rate of interest | 8.90% |
Shortterm_and_longterm_debt_De
Short-term and long-term debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Short-term debt: | ||
- Bank credit line | $6,056 | $15,080 |
- Long-term debt: current | 264 | 287 |
Subtotal | 6,320 | 15,367 |
Long-term debt: | ||
- Bank credit line | 4,000 | 4,000 |
- Building and land mortgage | 437 | 603 |
- Vehicle and equipment loans | 172 | 298 |
- Capital lease obligations | 44 | 57 |
- Less: current maturities | -264 | -287 |
Subtotal | 4,389 | 4,671 |
Total short-term & long-term debt | $10,709 | $20,038 |
Schedule_of_Minimum_EBITDA_Det
Schedule of Minimum EBITDA (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Six month period ending June 30, 2014 | |
Schedule of Minimum EBITDA [Line Items] | |
Income (Loss) from continuing operations before income taxes, extraordinary items, noncontrolling interest, total | $1,123,000 |
Nine month period ending September 30, 2014 | |
Schedule of Minimum EBITDA [Line Items] | |
Income (Loss) from continuing operations before income taxes, extraordinary items, noncontrolling interest, total | 1,330,000 |
Twelve month period ending December 31, 2014 | |
Schedule of Minimum EBITDA [Line Items] | |
Income (Loss) from continuing operations before income taxes, extraordinary items, noncontrolling interest, total | $802,000 |
EBITDA_Calculation_Detail
EBITDA Calculation (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
EBITDA Calculation [Line Items] | |
Net (loss) | ($720,000) |
less: income tax benefit | -906,000 |
Loss before income taxes | -1,626,000 |
add: interest expense | 641,000 |
add: depreciation and amortization | 979,000 |
add: value of share-based payment arrangements | 708,000 |
Add: other non-cash expense | 414,000 |
Earnings before interest, taxes, depreciation, and amortization | $1,116,000 |
Maturities_of_longterm_debt_an
Maturities of long-term debt and capital lease obligations (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Maturities Of Long Term Debt And Capital Lease Obligations [Line Items] | |
-2016 | $277 |
-2017 | 112 |
-2018 | 4,000 |
Total | $4,389 |
Future_minimum_lease_payments_
Future minimum lease payments under capital leases (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Future Minimum Lease Payments Under Capital Leases [Line Items] | |
-2015 | $31 |
-2016 | 15 |
-2017 | 2 |
Subtotal | 48 |
Less interest expense | -4 |
Total | $44 |
Stockholders_equity_Additional
Stockholders' equity - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 11, 2014 | Jun. 06, 2014 | Mar. 07, 2011 | Mar. 04, 2011 | Jul. 07, 2010 | |
Stockholders Equity [Line Items] | |||||||
Common Stock, Shares, Issued | 32,312,276 | 25,070,386 | |||||
Common Stock, Par Or Stated Value Per Share | $0.01 | $0.01 | |||||
Investment Warrants Expiration Date | 7-Jul-16 | ||||||
Proceeds From Issuance Of Common Stock | $15,925,000 | $1,110,000 | |||||
Underwritten Offering [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Common Stock, Shares, Issued | 6,000,000 | ||||||
Common Stock, Par Or Stated Value Per Share | $0.01 | ||||||
Additional Offering Expenses | 400,000 | ||||||
Underwriters [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 6,900,000 | 6,000,000 | |||||
Share Price | $2.34 | $2.34 | |||||
Purchase Of Additional Common Stock | 900,000 | 900,000 | |||||
Proceeds From Issuance Of Common Stock | 16,128,750 | ||||||
Reimbursement Expense | 150,000 | ||||||
Public [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Share Price | $2.50 | ||||||
Stock Unit | |||||||
Stockholders Equity [Line Items] | |||||||
Common Stock, Shares, Issued | 2,737,500 | ||||||
2010 Offering | |||||||
Stockholders Equity [Line Items] | |||||||
Common Stock, Shares, Issued | 1,368,750 | ||||||
Common Stock, Par Or Stated Value Per Share | $2 | ||||||
Proceeds from Issuance or Sale of Equity | 4,900,000 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.60 | $2.60 | |||||
Adjustment of Warrants Granted for Services | $1,300,000 | ||||||
Class Of Warrant Or Right Repurchase During Period | 150,000 | ||||||
Class Of Warrant Or Right Issued Unit During Period | 1,218,750 | ||||||
Common Stock | |||||||
Stockholders Equity [Line Items] | |||||||
Common Stock, Shares, Issued | 2,737,500 | ||||||
Stock Issued During Period, Shares, New Issues | 6,900,000 |
Rent_Expense_Detail
Rent Expense (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Auburn, Washington | |
Rent Expense [Line Items] | |
Rent expense | $27,000 |
Lease Expiration Period Description | Month to Month |
Baton Rouge, Louisiana | |
Rent Expense [Line Items] | |
Rent expense | 15,000 |
Lease Expiration Date | 31-Mar-15 |
Brentwood, Tennessee | |
Rent Expense [Line Items] | |
Rent expense | 70,000 |
Lease Expiration Period Description | Month to Month |
Champaign, Illinois | |
Rent Expense [Line Items] | |
Rent expense | 340,000 |
Lease Expiration Date | 31-Dec-17 |
Charlotte, North Carolina | |
Rent Expense [Line Items] | |
Rent expense | 63,000 |
Lease Expiration Date | 31-Mar-16 |
Escondido, California | |
Rent Expense [Line Items] | |
Rent expense | 42,000 |
Lease Expiration Period Description | Month to Month |
Hampstead, New Hampshire | |
Rent Expense [Line Items] | |
Rent expense | 28,000 |
Lease Expiration Date | 31-Aug-17 |
Nashville, Tennessee | |
Rent Expense [Line Items] | |
Rent expense | 143,000 |
Lease Expiration Date | 29-Feb-16 |
Ontario, California | |
Rent Expense [Line Items] | |
Rent expense | 85,000 |
Lease Expiration Date | 31-Dec-18 |
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 | 10,000 |
Lease Expiration Date | 31-Aug-17 |
San Juan, Puerto Rico | |
Rent Expense [Line Items] | |
Rent expense | 53,000 |
Lease Expiration Period Description | Month to Month |
Stony Point, New York | |
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-17 |
Future_Commitments_under_Opera
Future Commitments under Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Future Commitments Under Operating Leases [Line Items] | |
-2015 | $1,120 |
-2016 | 690 |
-2017 | 587 |
-2018 | 163 |
Total | $2,560 |
Commitments_and_contingencies_1
Commitments and contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies [Line Items] | ||
Operating Leases, Rent Expense | $830,000 | $650,000 |
Remediation Costs Incurred | 53,000 | 100,000 |
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, 2014 | Dec. 31, 2013 | Sep. 10, 2004 | Aug. 27, 2008 | Sep. 17, 2014 | Aug. 19, 1999 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share based compensation expense | $708,000 | $122,000 | ||||
Issuance of stock option to purchase stock | 6,000,000 | |||||
Common stock reserved for issuance | 4,466,233 | |||||
Stock option awards vesting period | 2 years | |||||
Options granted | 1,055,500 | 173,354 | ||||
Unrecognized compensation cost related to bon-vested | 107,000 | |||||
Intrinsic value of options exercised | $2,816,000 | |||||
Maximum | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based compensation arrangement by share based payment award options granted contractual term | 10 years | |||||
Minimum | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based compensation arrangement by share based payment award options granted contractual term | 3 years | |||||
2004 Stock Incentive Plan | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Common stock reserved for issuance | 2,500,000 | |||||
Plan expiration date | 10-Sep-14 | |||||
2008 Stock Incentive Plan | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Common stock reserved for issuance | 3,000,000 | |||||
Plan expiration date | 27-Aug-18 | |||||
Share based compensation arrangement by share based payment award percentage of fair market Person holding more then 10% voting stock | 110.00% | |||||
2014 Stock Incentive Plan | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Common stock reserved for issuance | 3,000,000 | |||||
Plan expiration date | 17-Sep-24 | |||||
Share based compensation arrangement by share based payment award percentage of fair market Person holding more then 10% voting stock | 110.00% | |||||
2014 Stock Incentive Plan | Maximum | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Expiration period of option awards | 10 years | |||||
2014 Stock Incentive Plan | Minimum | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Expiration period of option awards | 5 years | |||||
2008 Stock Incentive Plan | Maximum | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Expiration period of option awards | 10 years | |||||
2008 Stock Incentive Plan | Minimum | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Expiration period of option awards | 5 years | |||||
1997 Employee Stock Option Plan | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Common stock reserved for issuance | 2,000,000 | |||||
Plan expiration date | 11-Jun-07 |
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, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected lives | 5 years | |
Minimum | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Risk free interest rate | 1.00% | 0.85% |
Expected volatility | 59.00% | 59.00% |
Expected lives | 3 years | |
Maximum | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Risk free interest rate | 1.69% | 1.64% |
Expected volatility | 66.00% | 76.00% |
Expected lives | 5 years |
Summary_of_Status_of_Companys_
Summary of Status of Company's Stock Option Plan (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Shares | ||
Granted | 1,055,500 | 173,354 |
Stock Option Plan | ||
Shares | ||
Outstanding at beginning of period | 2,517,911 | 3,348,935 |
Cancelled | -58,617 | |
Exercised | -292,537 | -945,761 |
Granted | 1,055,500 | 173,354 |
Outstanding at end of period | 3,280,874 | 2,517,911 |
Weighted Average Exercise Price | ||
Outstanding at beginning of period | 1.33 | 1.23 |
Cancelled | 1.87 | |
Exercised | 1.03 | 1.2 |
Granted | 3.28 | 2.59 |
Outstanding at end of period | 1.98 | 1.33 |
Weighted_Average_Contractual_L
Weighted Average Contractual Life and Exercise Price (Detail) (Stock Option Plan, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Stock Option Plan | |
Number of Options | |
Options outstanding | 3,280,874 |
Options vested | 3,212,263 |
Weighted Average Remaining Contractual Life | |
Options outstanding | 3 years 3 months 18 days |
Options vested | 3 years 3 months 18 days |
Weighted Average Exercise Price | |
Options outstanding | $1.98 |
Options vested | $1.94 |
Intrinsic_Value_Detail
Intrinsic Value (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Schedule of Share based Compensation Arrangements by Share based Payment Award, Performance Options [Line Items] | |
Options outstanding | $5,907,000 |
Options vested in 2014 | 535,000 |
Options exercised in 2014 | $793,000 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended |
Nov. 05, 2014 | Dec. 31, 2014 | |
Number Of Employees | 32 | |
Purchase price for aquisition | $8,035,000 | |
Tangible assets | 5,435,000 | |
Intangible assets | 2,335,000 | |
Goodwill | 265,000 | |
Professional Fees | $163,000 | |
Minimum [Member] | ||
Intangible assets amotized period | 2 years | |
Maximum [Member] | ||
Intangible assets amotized period | 10 years |