Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | CAPSTONE TURBINE Corp | |
Entity Central Index Key | 1,009,759 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 68,415,345 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 12,303 | $ 14,408 |
Restricted cash | 6,000 | 5,000 |
Accounts receivable, net of allowances of $5,828 at September 30, 2018 and $5,744 at March 31, 2018 | 16,531 | 15,968 |
Inventories, net | 15,477 | 15,633 |
Prepaid expenses and other current assets | 4,967 | 2,803 |
Total current assets | 55,278 | 53,812 |
Property, plant and equipment, net | 2,831 | 2,859 |
Non-current portion of inventories | 1,109 | 1,041 |
Intangible assets, net | 299 | 411 |
Other assets | 3,125 | 250 |
Total assets | 62,642 | 58,373 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 14,055 | 13,503 |
Accrued salaries and wages | 1,562 | 1,588 |
Accrued warranty reserve | 2,242 | 1,682 |
Deferred revenue | 5,497 | 6,596 |
Revolving credit facility | 12,496 | 8,527 |
Current portion of notes payable and capital lease obligations | 39 | 192 |
Total current liabilities | 35,891 | 32,088 |
Deferred revenue - non-current | 1,284 | |
Long-term portion of notes payable and capital lease obligations | 111 | 130 |
Other long-term liabilities | 390 | 396 |
Total liabilities | 37,676 | 32,614 |
Commitments and contingencies (Note 15) | ||
Stockholders' Equity: | ||
Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued | ||
Common stock, $.001 par value; 515,000,000 shares authorized, 67,817,994 shares issued and 67,607,817 shares outstanding at September 30, 2018; 57,062,598 shares issued and 56,916,646 shares outstanding at March 31, 2018 | 68 | 57 |
Additional paid-in capital | 898,108 | 889,585 |
Accumulated deficit | (871,479) | (862,225) |
Treasury stock, at cost; 210,177 shares at September 30, 2018 and 145,952 shares at March 31, 2018 | (1,731) | (1,658) |
Total stockholders' equity | 24,966 | 25,759 |
Total liabilities and stockholders' equity | $ 62,642 | $ 58,373 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowances (in dollars) | $ 5,828 | $ 5,744 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 515,000,000 | 515,000,000 |
Common stock, shares issued | 67,817,994 | 57,062,598 |
Common stock, shares outstanding | 67,607,817 | 56,916,646 |
Treasury stock, shares | 210,177 | 145,952 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue: | ||||
Total revenue | $ 22,174 | $ 19,774 | $ 43,363 | $ 39,014 |
Cost of goods sold: | ||||
Total cost of goods sold | 20,137 | 16,758 | 39,504 | 33,759 |
Gross margin | 2,037 | 3,016 | 3,859 | 5,255 |
Operating expenses: | ||||
Research and development | 891 | 1,139 | 1,822 | 2,288 |
Selling, general and administrative | 5,308 | 4,796 | 10,962 | 9,757 |
Total operating expenses | 6,199 | 5,935 | 12,784 | 12,045 |
Loss from operations | (4,162) | (2,919) | (8,925) | (6,790) |
Other income (expense) | (7) | 14 | (21) | 4 |
Interest income | 9 | |||
Interest expense | (186) | (98) | (304) | (319) |
Change in warrant valuation | (657) | (657) | ||
Loss before provision for income taxes | (4,355) | (3,660) | (9,250) | (7,753) |
Provision for income taxes | 2 | 7 | 5 | 7 |
Net loss | $ (4,357) | $ (3,667) | $ (9,255) | $ (7,760) |
Net loss per common share-basic and diluted (in dollars per share) | $ (0.07) | $ (0.09) | $ (0.15) | $ (0.18) |
Weighted average shares used to calculate basic and diluted net loss per common share (in shares) | 65,065 | 42,941 | 63,422 | 42,606 |
Product, accessories and parts | ||||
Revenue: | ||||
Total revenue | $ 18,627 | $ 16,005 | $ 35,712 | $ 31,496 |
Cost of goods sold: | ||||
Total cost of goods sold | 16,945 | 13,549 | 32,575 | 27,586 |
Service | ||||
Revenue: | ||||
Total revenue | 3,547 | 3,769 | 7,651 | 7,518 |
Cost of goods sold: | ||||
Total cost of goods sold | $ 3,192 | $ 3,209 | $ 6,929 | $ 6,173 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (9,255) | $ (7,760) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 568 | 583 |
Amortization of deferred financing costs | 85 | 133 |
Accounts receivable allowances | 55 | (22) |
Inventory provision | 408 | 590 |
Provision for warranty expenses | 1,251 | 995 |
Loss on disposal of equipment | 7 | 26 |
Stock-based compensation | 451 | 307 |
Change in warrant valuation | 657 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (619) | 3,778 |
Inventories | (320) | (2,360) |
Prepaid expenses, other current assets and other assets | (5,135) | 266 |
Accounts payable and accrued expenses | 448 | (790) |
Accrued salaries and wages and long term liabilities | (32) | (7) |
Accrued warranty reserve | (691) | (2,199) |
Deferred revenue | 184 | (49) |
Net cash used in operating activities | (12,595) | (5,852) |
Cash Flows from Investing Activities: | ||
Expenditures for property and equipment | (316) | (521) |
Net cash used in investing activities | (316) | (521) |
Cash Flows from Financing Activities: | ||
Net proceeds from (repayments of) revolving credit facility | 3,969 | (1,958) |
Repayment of notes payable and capital lease obligations | (173) | (183) |
Cash used in employee stock-based transactions | (73) | (22) |
Net proceeds from issuance of common stock and warrants | 8,083 | 3,987 |
Net cash provided by financing activities | 11,806 | 1,824 |
Net decrease in Cash, Cash Equivalents and Restricted Cash | (1,105) | (4,549) |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 19,408 | 19,705 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 18,303 | 15,156 |
Cash paid during the period for: | ||
Interest | 186 | 205 |
Income taxes | 5 | 7 |
Supplemental Disclosures of Non-Cash Information: | ||
Acquisition of property and equipment through accounts payable | $ 110 | $ 99 |
Business and Organization
Business and Organization | 6 Months Ended |
Sep. 30, 2017 | |
Business and Organization | |
Business and Organization | 1. Business and Organization Capstone Turbine Corporation (the “Company”) develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications and distribution networks, including cogeneration (combined heat and power (“CHP”), integrated combined heat and power (“ICHP”), and combined cooling, heat and power (“CCHP”)), renewable energy, natural resources and critical power supply. In addition, the Company’s microturbines can be used as battery charging generators for hybrid electric vehicles and to provide power to a vessel’s electrical loads in marine applications. The Company’s microturbines can be interconnected to other distributed energy resources to form “microgrids” (also called “distribution networks”) located within a specific geographic area and provide power to a group of buildings. The Company also remanufactures microturbine engines and provides aftermarket parts and services. The Company was organized in 1988 and has been commercially producing its microturbine generators since 1998. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Sep. 30, 2018 | |
Basis of Presentation | |
Basis of Presentation | 2. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) for interim financial information and the instructions to Form 10-Q and Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The condensed consolidated balance sheet at March 31, 2018 was derived from audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2018. In the opinion of management, the interim condensed consolidated financial statements include all adjustments (including normal recurring adjustments) necessary for a fair presentation of the financial condition, results of operations and cash flows for such periods. Results of operations for any interim period are not necessarily indicative of results for any other interim period or for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the Fiscal Year 2018. This Quarterly Report on Form 10-Q (this “Form 10-Q”) refers to the Company’s fiscal years ending March 31 as its “Fiscal” years. Significant Accounting Policies Except for the accounting policy for revenue recognition that was updated, as set forth below, as a result of adopting Accounting Standards Update (“ASU”) No. 2014-09 (defined below), there have been no changes to the Company’s significant accounting policies described in the Annual Report on Form 10-K for the Fiscal Year 2018 filed with the SEC on June 7, 2018, that have had a material impact on the Company's condensed consolidated financial statements and related notes. Cash, Cash Equivalents and Restricted Cash The Company considers only those investments that are highly liquid and readily convertible to cash with original maturities of three months or less at date of purchase as cash equivalents. The Company maintains its cash and cash equivalents in highly rated financial institutions, and at times these balances exceed insurable amounts. Restricted cash represents the Company’s cash held by Western Alliance Bank through its Bridge Bank division (“Bridge Bank”) and as a condition of the two secured credit facilities (the “Bridge Bank Credit Agreements”) with Bridge Bank, the Company has restricted $6.0 million of cash equivalents as additional security for the credit facility. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same amounts shown in the statements of cash flows. September 30, March 31, 2018 2018 Cash and cash equivalents $ 12,303 $ 14,408 Restricted cash 6,000 5,000 Total cash, cash equivalents and restricted cash $ 18,303 $ 19,408 Evaluation of Ability to Maintain Current Level of Operations In connection with preparing the consolidated financial statements for the second quarter of Fiscal 2019, management evaluated whether there were conditions and events, considered in the aggregate, that raised substantial doubt about the Company’s ability to meet its obligations as they became due for the next twelve months from the date of issuance of its second quarter of Fiscal 2019 interim condensed consolidated financial statements. Management assessed that there were such conditions and events, including a history of recurring operating losses, negative cash flows from operating activities, the continued impact of the volatility of the global oil and gas markets, a strong U.S. dollar in certain markets making its products more expensive in such markets and ongoing global geopolitical tensions. The Company incurred a net loss of $4.4 million and used cash in operating activities of $6.6 million for the second quarter of Fiscal 2019. Cash used in operating activities includes payment of approximately $3.0 million to Carrier Corporation (“Carrier”) for a negotiated royalty settlement agreement. See Note 14—Other Current Liabilities for additional discussion on the negotiated royalty settlement agreement. The Company’s working capital requirements during the second quarter of Fiscal 2019 were higher than management’s expectations primarily the result of not recognizing revenue on certain service contracts because of the reassignment of those service contracts from Capstone’s legacy California distributor to Cal Microturbine, which resulted in a higher than expected net loss. In addition, the Company’s net loss was negatively impacted during the second quarter of Fiscal 2019 because of an increase in the Company’s warranty provision as a result of a supplier defect identified during the first quarter of Fiscal 2019. As of September 30, 2018, the Company had cash, cash equivalents and restricted cash of $18.3 million, and outstanding borrowings under its credit facility of $12.5 million. Management evaluated these conditions in relation to the Company’s ability to meet its obligations as they become due. The Company’s ability to continue current operations and to execute on management’s plans is dependent on its ability to generate cash flows from operations. Management believes that the Company will continue to make progress on its path to profitability by continuing to maintain low operating expenses and develop its geographical and vertical markets. The Company may seek to raise funds by selling additional securities (through at-the-market offerings or otherwise) or by obtaining additional debt financing. There is no assurance that the Company will be able to obtain additional funds on commercially favorable terms or at all. If the Company raises additional funds by issuing additional equity or convertible debt securities, the fully diluted ownership percentages of existing stockholders will be reduced. In addition, any equity or debt securities that the Company would issue may have rights, preferences or privileges senior to those of the holders of its common stock. Based on the Company’s current operating plan, management anticipates that, given current working capital levels, current financial projections and the ability to borrow under its credit facility with Bridge Bank, the Company will be able to meet its financial obligations as they become due over the next twelve months from the date of issuance of its second quarter of Fiscal 2019 financial statements. Basis for Consolidation The consolidated financial statements include the accounts of the Company, Capstone Turbine International, Inc., its wholly owned subsidiary that was formed in June 2004 and Capstone Turbine Financial Services, LLC, its wholly owned subsidiary that was formed in October 2015, after elimination of inter-company transactions. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Sep. 30, 2018 | |
Recently Issued Accounting Standards | |
Recently Issued Accounting Standards | 3. Recently Issued Accounting Standards Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU, 2014-09, Revenue from Contracts with Customers (Topic 606), (“ASU 2014-09”). ASU 2014-09 outlines a single, comprehensive model for accounting for revenue from contracts with customers and requires more detailed disclosure to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from such contracts. ASU 2014-09 provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company 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 and services. On April 1, 2018, the Company adopted ASU 2014-09 under the modified retrospective transition method. This method was applied to contracts that were not complete as of the date of initial application of ASU 2014-09. During the three and six months ended September 30, 2018, the Company recognized revenue based on ASU 2014-09, however revenue for the three and six months ended September 30, 2017 was recognized based on Accounting Standards Codification, Topic 605, Revenue Recognition. See Note 13—Revenue Recognition for additional discussion of the impact of the adoption of ASU 2014-09. Not yet adopted On August 17, 2018, the SEC issued Release No. 33-10532, “Disclosure Update and Simplification”, (“Release No. 33-10532”) which amends certain redundant, duplicative, outdated, superseded or overlapping disclosure requirements. The amendments in this rule are intended to facilitate the disclosure of information to investors and to simplify compliance without significantly impacting the mix of information provided to investors. The amendments also expand the disclosure requirements regarding the analysis of stockholders’ equity for interim financial statements, in which entities will be required to present a reconciliation for each period for which a statement of comprehensive income is required to be filed. The final rule became effective on November 5, 2018, however the SEC announced that it would not object if a filer’s first presentation of the changes in stockholders’ equity were included in its Form 10-Q for the quarter that begins after the effective date of the amendments. The Company is currently evaluating the impact of Release No. 33-10532 on its consolidated financial position and results of operations. On June 2018, the FASB issued ASU 2018-07, “Shared-Based Payment Arrangements with Nonemployees” (Topic 505), (“ASU 2018-07”). ASU 2018-07 simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under ASU 2018-07, most of the guidance on such payments to nonemployees will be aligned with the requirements for share-based payments granted to employees. Under the ASU 2018-07, the measurement of equity-classified nonemployee share-based payments will be fixed on the grant date, as defined in ASC 718, and will use the term nonemployee vesting period, rather than requisite service period. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted if financial statements have not yet been issued. The Company is currently evaluating the impact of ASU 2018-07 on its consolidated financial position and results of operations. On December 22, 2017, the SEC issued guidance under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) directing taxpayers to consider the impact of the U.S. legislation as “provisional” when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law. In accordance with SAB 118, our estimated income tax is considered provisional and the Company’s analysis is expected to be finalized by the end of the 2018 calendar year. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), (“ASU 2016-02”). The purpose of ASU 2016-02 is to provide financial statement users a better understanding of the amount, timing, and uncertainty of cash flows arising from leases. The adoption of ASU 2016-02 will result in the recognition of a right-of-use asset and a lease liability for most operating leases. New disclosure requirements include qualitative and quantitative information about the amounts recorded in the financial statements. In September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842), which provides additional implementation guidance on the previously issued ASU 2016-02 Leases (Topic 842). ASU 2016-02 requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 requires a modified retrospective transition by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year in which the guidance is effective with the option to elect certain practical expedients. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-02 on its consolidated financial position and results of operations. |
Customer Concentrations and Acc
Customer Concentrations and Accounts Receivable | 6 Months Ended |
Sep. 30, 2018 | |
Customer Concentrations and Accounts Receivable | |
Customer Concentrations and Accounts Receivable | 4. Customer Concentrations and Accounts Receivable Sales to Horizon Power Systems (“Horizon”) and E-Finity Distributed Generation, LLC (“E-Finity), two of the Company’s domestic distributors and Safwan Petroleum Technologies Company (“SPETCO International”), one of the Company’s Middle East and African distributors, accounted for 15%, 12% and 10%, respectively, of revenue for the three months ended September 30, 2018. Sales to Reliable Secure Power Systems, (“RSP”), Regatta Solutions, Inc. (“Regatta”) and E-Finity Distributed Generation, LLC (“E-Finity”), three of the Company’s domestic distributors, and Optimal Group Australia Pty Ltd, one of the Company’s Australian distributors and IBT Europe GmbH (“IBT”), one of the Company’s European distributors, accounted for 12%, 11%, 11%, 11% and 10%, respectively, of revenue for the three months ended September 30, 2017. For the six months ended September 30, 2018, E-Finity and Horizon, accounted for 11% and 10% of revenue, respectively. For the six months ended September 30, 2017, E-Finity, Horizon and Optimal accounted for 13%, 12% and 10% of revenue, respectively. Additionally, E-Finity, Woojin Mechanical and Electrical Co., Ltd (“Woojin”), one of the Company’s Asian distributors, Cal Microturbine (“Cal”), one of the Company’s domestic distributors, Serba Dinamik Sdn Bhd (“Serba”), one of the Company’s Malaysian distributors and Supernova Energy Services SAS, one of the Company’s Columbian distributors (“Supernova”) accounted for 12%, 12%, 11% and 10%, respectively, of net accounts receivable as of September 30, 2018. Serba, E-Finity, and Supernova accounted for 20%, 18% and 10%, respectively, of net accounts receivable as of March 31, 2018. On October 13, 2017, the Company entered into an Accounts Receivable Assignment Agreement (the “Assignment Agreement”) and Promissory Note (the “Note”) with Turbine International, LLC (“TI”). Pursuant to the terms of the Assignment Agreement, the Company agreed to assign to TI the right, title and interest to receivables owed to the Company from BPC Engineering, its former Russian distributor (“BPC”), upon TI’s payment to the Company of $2.5 million in three payments by February 1, 2018. The Company received payments from TI of approximately $1.0 million under the Assignment Agreement during Fiscal 2018, which was recorded as bad debt recovery. The receivables owed to the Company from BPC had a balance of $5.2 million as of September 30, 2018, and this balance was fully reserved. As of September 30, 2018, the right, title and interest to the receivables owed to the Company from BPC had not been assigned to TI, as TI had not yet made all payments as required under the Assignment Agreement by February 1, 2018. On October 13, 2017, the Company and Hispania Petroleum, S.A. (the “Guarantor”) entered into a Guaranty Agreement (the “Guaranty Agreement”) whereby the Guarantor guarantees TI’s obligations under the Agreement and Note. However, due to the Company’s limited business relationship with TI and the missed payments on the Assignment Agreement, the Company deferred recognition of the Assignment Agreement and Note until collectability is reasonably assured. In connection with the terms of the Note, the Company granted TI the sole distribution rights for its products and services in the Russian oil and gas sector. As a result of this appointment, TI agreed to pay the Company $3.8 million over a three-year period in 35 equal monthly installments starting in August 2018. On June 5, 2018, the Company entered into an amendment to the Assignment Agreement (the “Amended Assignment Agreement”) and the Note (the “Amended Note”) with TI. Pursuant to the terms of the Amended Assignment Agreement, the right, title and interest to receivables owed to the Company from BPC will be contingent upon TI’s payment to the Company of the remaining approximately $1.5 million in five payments by September 20, 2019. During the first quarter of Fiscal 2019 no payment was due under these agreements. Under the terms of the Amended Note, TI agreed to pay the Company $3.8 million over a three-year period in 13 equal quarterly installments starting in December 20, 2019. The Company recorded a net bad debt expense of approximately $0.1 million during each of the three and six months ended September 30, 2018, respectively. The Company recorded a net bad debt recovery of approximately $9,000 and $22,000 during the three and six months ended September 30, 2017, respectively. As of March 31, 2015, the Company had an amount owed of approximately $8.1 million by BPC. As of September 30, 2018, the Company collected cumulatively approximately $1.8 million from BPC on their accounts receivable which has been previously reserved. The Company collected approximately $0.1 million from TI during the three months ended September 30, 2018, under the terms of the Amended Assignment Agreement. The Company cumulatively collected approximately $1.1 million from TI, under the terms of the Assignment Agreement and the Amended Assignment Agreement. The remaining balance of the fully reserved accounts receivable was $5.2 million as of September 30, 2018. |
Inventories
Inventories | 6 Months Ended |
Sep. 30, 2018 | |
Inventories | |
Inventories | 5. Inventories Inventories are valued at the lower of cost (determined on a first in first out (“FIFO”) basis) or net realizable value and consisted of the following as of September 30, 2018 and March 31, 2018 (in thousands): September 30, March 31, 2018 2018 Raw materials $ 19,716 $ 17,981 Work in process 30 111 Finished goods 1,449 4,076 Total 21,195 22,168 Less inventory reserve (4,609) (5,494) Less non-current portion (1,109) (1,041) Current portion $ 15,477 $ 15,633 The non-current portion of inventories represents the portion of the inventories in excess of amounts expected to be sold or used in the next twelve months. The non-current inventories are primarily comprised of repair parts for older generation products that are still in operation but are not technologically compatible with current configurations. The weighted average age of the non-current portion of inventories on hand as of September 30, 2018 is 1.3 years. The Company expects to use the non-current portion of the inventories on hand as of September 30, 2018 over the periods presented in the following table (in thousands): Non-current Inventory Balance Expected Expected Period of Use to be Used 13 to 24 months $ 405 25 to 36 months 704 Total $ 1,109 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | 6. Property, Plant and Equipment Property, plant and equipment consisted of the following as of September 30, 2018 and March 31, 2018 (in thousands): September 30, March 31, 2018 2018 Machinery, rental equipment, equipment, automobiles and furniture $ 15,295 $ 15,481 Leasehold improvements 11,053 10,949 Molds and tooling 2,834 2,904 29,182 29,334 Less, accumulated depreciation (26,351) (26,475) Total property, plant and equipment, net $ 2,831 $ 2,859 The Company regularly reassesses the useful lives of property and equipment and retires assets no longer in service. Depreciation expense for property and equipment was $0.2 million and $0.4 million for each of the three and six months ended September 30, 2018 and 2017, respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Sep. 30, 2018 | |
Intangible Assets | |
Intangible Assets | 7. Intangible Assets Intangible assets consisted of the following as of September 30, 2018 and March 31, 2018 (in thousands): September 30, 2018 Weighted Average Intangible Amortization Assets, Accumulated Intangible Period Gross Amortization Assets, Net Manufacturing license 17 years $ 3,700 $ 3,700 $ — Technology 10 years 2,240 1,941 299 Trade name & parts, service and TA100 customer relationships 1.2 to 5 years 1,766 1,766 — Total $ 7,706 $ 7,407 $ 299 March 31, 2018 Weighted Average Intangible Amortization Assets, Accumulated Intangible Period Gross Amortization Assets, Net Manufacturing license 17 years $ 3,700 $ 3,700 $ — Technology 10 years 2,240 1,829 411 Trade name & parts, service and TA100 customer relationships 1.2 to 5 years 1,766 1,766 — Total $ 7,706 $ 7,295 $ 411 Amortization expense for the intangible assets was $0.1 million for each of the three and six months ended September 30, 2018 and 2017, respectively. Expected future amortization expense of intangible assets as of September 30, 2018 is as follows (in thousands): Amortization Year Ending March 31, Expense 2019 (remainder of fiscal year) 112 2020 187 Total expected future amortization $ 299 The manufacturing license provides the Company with the ability to manufacture recuperator cores previously purchased from Solar Turbines Incorporated (“Solar”). The Company is required to pay a per-unit royalty fee over a seventeen-year period for cores manufactured and sold by the Company using the technology. Royalties of approximately $10,000 and $7,200 were earned by Solar for the three months ended September 30, 2018 and 2017, respectively. Royalties of approximately $17,100 and $13,700 were earned by Solar for the six months ended September 30, 2018 and 2017, respectively. Earned royalties of approximately $10,000 and $8,000 were unpaid as of September 30, 2018 and March 31, 2018, respectively, and are included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Sep. 30, 2018 | |
Stock-Based Compensation | |
Stock-Based Compensation | 8. Stock-Based Compensation The following table summarizes, by condensed consolidated statement of operations line item, stock-based compensation expense for the Company’s three and six months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 Cost of goods sold $ 13 $ 18 $ 25 $ 38 Research and development 6 5 13 12 Selling, general and administrative 205 130 413 257 Stock-based compensation expense $ 224 $ 153 $ 451 $ 307 Stock Plans 2000 Equity Incentive Plan and 2017 Equity Incentive Plan In June 2000, the Company adopted the 2000 Equity Incentive Plan (“2000 Plan”). The 2000 Plan provides for a total maximum aggregate number of shares which may be issued of 1,849,000 shares. In June 2017, the Company’s Board of Directors (the “Board”) adopted the Capstone Turbine Corporation 2017 Equity Incentive Plan (the “2017 Plan”) which was approved by the stockholders at the Company’s 2017 annual meeting of stockholders on August 31, 2017 (the “2017 Annual Meeting”). The 2017 Plan provides for awards of up to 3,000,000 shares of common stock. The 2017 Plan is administered by the Compensation Committee designated by the Board (the “Compensation Committee”). The Compensation Committee’s authority includes determining the number of incentive awards and vesting provisions. On June 5, 2018, the Company’s Board of Directors adopted an amendment of the 2017 Plan to increase the aggregate number of shares of common stock authorized for issuance under the 2017 Plan by 3,000,000 shares of common stock. The amendment of the 2017 Plan was approved by the Company’s stockholders at the 2018 annual meeting of stockholders on August 30, 2018. Stock Options The Company issued stock options under the 2000 Plan and issues stock options under the 2017 Plan to employees, non-employee directors and consultants that vest and become exercisable over a four-year period and expire 10 years after the grant date. The Company uses a Black-Scholes valuation model to estimate the fair value of the options at the grant date, and compensation cost is recorded on a straight-line basis over the vesting period. All options are subject to the following vesting provisions: one-fourth vest one year after the issuance date and 1/48th vest on the first day of each full month thereafter, so that all options will be vested on the first day of the 48th month after the grant date. Information relating to stock options for the Company’s six months ended September 30, 2018 is as follows: Weighted- Average Weighted- Remaining Aggregate Average Contractual Intrinsic Shares Exercise Price Term Value (in years) Options outstanding at March 31, 2018 212,392 $ 20.71 Granted — $ — Exercised — $ — Forfeited, cancelled or expired (2,500) $ 55.20 Options outstanding at September 30, 2018 209,892 $ 20.30 — Options fully vested at September 30, 2018 and those expected to vest beyond September 30, 2018 209,892 $ 20.30 — Options exercisable at September 30, 2018 209,892 $ 20.30 — Black-Scholes Model Valuation Assumptions There were no stock options granted during either of the three or six months ended September 30, 2018 or 2017. There was no expense associated with stock options during the three or six months ended September 30, 2018. The Company recorded expense of approximately $8,000 and $17,000 associated with its stock options during the three and six months ended September 30, 2017, respectively. There were no unvested stock option awards as of September 30, 2018. Restricted Stock Units and Performance Restricted Stock Units The Company issued restricted stock units under the 2000 Plan and issues restricted stock units under the 2017 Plan to employees, non-employee directors and consultants. The restricted stock units are valued based on the closing price of the Company’s common stock on the date of issuance, and compensation cost is recorded on a straight-line basis over the vesting period. The restricted stock units vest over a period of two, three or four years. For restricted stock units with two year vesting, 100% vests on the second year anniversary. For restricted stock units with three year vesting, one-third vest annually beginning one year after the issuance date. For restricted stock units with four year vesting, one-fourth vest annually beginning one year after the issuance date. The restricted stock units issued to non-employee directors vest one year after the issuance date. The following table outlines the restricted stock unit and performance restricted stock unit (“PRSU”) activity: Weighted Average Grant Date Fair Restricted Stock Units and Performance Restricted Stock Units Shares Value Nonvested restricted stock units outstanding at March 31, 2018 2,011,611 $ 0.90 Granted 634,856 1.36 Vested and issued (465,165) 0.88 Forfeited (32,945) 0.86 Nonvested restricted stock units outstanding at September 30, 2018 2,148,357 1.04 Restricted stock units expected to vest beyond September 30, 2018 2,148,334 $ 1.04 The following table provides additional information on restricted stock units for the Company’s three and six months ended September 30, 2018 and 2017: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 Restricted stock compensation expense (in thousands) $ 224 $ 144 $ 451 $ 287 Aggregate fair value of restricted stock units vested and issued (in thousands) $ 516 $ 130 $ 523 $ 137 Weighted average grant date fair value of restricted stock units granted during the period $ 1.14 $ 0.62 $ 1.36 $ 0.67 As of September 30, 2018, there was approximately $1.8 million of total compensation cost related to unvested restricted stock units that is expected to be recognized as expense over a weighted average period of 2.1 years. The Company adopted PRSU activity is included in the above restricted stock units tables. The PRSU Program has a two-year or three-year performance measurement period. The performance measurement period will begin on April 1 of the first fiscal year and end on March 31 of the second fiscal year or the third fiscal year. The program is intended to have overlapping performance measurement periods (e.g., a new three-year cycle begins each year on April 1), subject to Compensation Committee approval. At the end of each performance measurement period, the Compensation Committee will determine the achievement against the performance objectives. During the six months ended September 30, 2018, the Company granted 147,327 PRSUs with three-year performance measurement period and the criteria measured by the Company’s free cash flow and aftermarket sales absorption. The target PRSU awards for each participant, will be paid upon achievement of the target level of performance for free cash flow and aftermarket sale absorption, taking into account the applicable weighting for the individual metric. Achievement of a performance goal at the threshold level will result in a payment that is 50% of the target PRSU award. Achievement of a performance goal at the maximum level will result in a payment that is 150% of the target PRSU award. The Compensation Committee will use an interpolation table that weights performance between levels for determining the portion of the Target PRSU that is earned. In addition, during the six months ended September 30, 2018, the Company granted 150,000 PRSUs to its President and Chief Executive officer with two-year performance measurement period and the criteria measured by the Company’s institutional ownership levels, Distributor Support System (“DSS program”) cash collections and Factory Protection Plan (“FPP”) gross margins. This equity award is 100% vesting in two years and based on predetermined equally weighted criteria. See Note 13—Revenue Recognition for additional discussion on DSS program. The weighted average per share grant date fair value of PRSUs granted during the six months ended September 30, 2018 was $1.59. However, based on the Company’s assessment as of September 30, 2018 that the PRSU threshold for the first performance measurement likely would not be met, the fair value of the PRSU awards were adjusted to zero and no compensation expense was recorded or recognized during the six months ended September 30, 2018. Any compensation expense will be recognized over the corresponding requisite service period and will be adjusted in subsequent reporting periods if the Company’s assessment of the probable level of achievement of the performance goals change. The Company will continue to periodically assess the likelihood of the PRSU threshold being met until the end of the applicable performance period. Restricted Stock Awards The Company issued restricted stock awards under the 2000 Plan and issues restricted stock awards under the 2017 Plan to employees and non-employee directors. There were no restricted stock awards granted during the three and six months ended September 30, 2018. During the three and six months ended September 30, 2017 the Company granted stock awards to non-employee directors who elected to take payment of all or any part of the directors’ fees in stock in lieu of cash. The following table outlines the restricted stock award activity for the three and six months ended September 30, 2018 and 2017: Three Months Ended Six Months Ended September 30, September 30, 2017 2017 Restricted stock awards compensation expense (in thousands) $ 1 $ 3 Restricted stock awards granted 1,953 3,969 Weighted average grant date fair value of restricted stock awards granted during the period $ 0.64 $ 0.63 For each term of the Board (beginning on the date of an annual meeting of stockholders and ending on the date immediately preceding the next annual meeting of stockholders), a non-employee director may elect to receive a stock award in lieu of all or any portion of their annual retainer or committee fee cash payment. The shares of stock were valued based on the closing price of the Company’s common stock on the date of grant. Employee Stock Purchase Plan In June 2000, the Company adopted the Employee Stock Purchase Plan (the “ESPP”). The ESPP provides for the granting of rights to purchase common stock to regular full and part-time employees or officers of the Company and its subsidiaries. In June 2017, the Board unanimously approved an amendment and restatement to the ESPP which was approved by the stockholders at the Company’s annual meeting of stockholders on August 31, 2017. Prior to the current amendment, 70,000 shares of the Company’s common stock had been reserved for issuance. As amended, the ESPP continued by its terms and the number of shares of the Company’s common stock available increased by 500,000 shares which reserved for issuance a total of 570,000 shares of common stock. Under the ESPP, shares of the Company’s common stock are issued upon exercise of the purchase rights. The ESPP will continue by its terms through June 30, 2020, unless terminated sooner. Stockholder Rights Plan On May 6, 2016, the Company entered into a rights agreement (the “NOL Rights Agreement”) with Broadridge Financial Solutions, Inc. successor-in-interest to Computershare Inc., as rights agent. In connection with the NOL Rights Agreement, the Company’s Board authorized and declared a dividend distribution of one preferred stock purchase right (a “Right”) for each share of the Company’s common stock authorized and outstanding. Each Right entitles the registered holder to purchase from the Company a unit consisting of one one-thousandth of a share of Series B Junior Participating Preferred Stock, par value $0.001 per share, at a purchase price of $8.76 per unit, subject to adjustment. The description and terms of the Rights are set forth in the NOL Rights Agreement. The purpose of the NOL Rights Agreement is to diminish the risk that the Company’s ability to use its net operating losses and certain other tax assets (collectively, “Tax Benefits”) to reduce potential future federal income tax obligations would become subject to limitations by reason of the Company’s experiencing an “ownership change,” as defined in Section 382 of the Internal Revenue Code of 1986. A company generally experiences such an ownership change if the percentage of its stock owned by its “5-percent shareholders,” as defined in Section 382 of the Internal Revenue Code of 1986, increases by more than 50 percentage points over a rolling three-year period. The NOL Rights Agreement is designed to reduce the likelihood that the Company will experience an ownership change under Section 382 of the Internal Revenue Code of 1986 by (i) discouraging any person or group from becoming a 4.99% shareholder and (ii) discouraging any existing 4.99% shareholder from acquiring additional shares of the Company’s stock. The Rights will not be exercisable until the earlier to occur of (i) the close of business on the tenth business day after a public announcement or filing that a person has, or group of affiliated or associated persons or persons acting in concert have, become an “Acquiring Person,” which is defined as a person or group of affiliated or associated persons or persons acting in concert who, at any time after the date of the NOL Rights Agreement, have acquired, or obtained the right to acquire, beneficial ownership of 4.99% or more of the Company’s outstanding shares of common stock, subject to certain exceptions or (ii) the close of business on the tenth business day after the commencement of, or announcement of an intention to commence, a tender offer or exchange offer the consummation of which would result in any person becoming an Acquiring Person (the earlier of such dates being called the “Distribution Date”). Certain synthetic interests in securities created by derivative positions, whether or not such interests are considered to be ownership of the underlying common stock or are reportable for purposes of Regulation 13D of the Exchange Act, are treated as beneficial ownership of the number of shares of common stock equivalent to the economic exposure created by the derivative position, to the extent actual shares of the common stock are directly or indirectly held by counterparties to the derivatives contracts. The Rights, which are not exercisable until the Distribution Date, will expire prior to the earliest of (i) May 6, 2019 or such later day as may be established by the Board prior to the expiration of the Rights, provided that the extension is submitted to the Company’s stockholders for ratification at the next annual meeting of stockholders of the Company succeeding such extension; (ii) the time at which the Rights are redeemed pursuant to the NOL Rights Agreement; (iii) the time at which the Rights are exchanged pursuant to the NOL Rights Agreement; (iv) the time at which the Rights are terminated upon the occurrence of certain transactions; (v) the close of business on the first day after the 2017 Annual Meeting of stockholders, if approval by the stockholders of the Company of the NOL Rights Agreement has not been obtained on or prior to the close of business on the first day after the 2017 Annual Meeting of stockholders; (vi) the close of business on the effective date of the repeal of Section 382 of the Internal Revenue Code of 1986, if the Board of Directors determines that the NOL Rights Agreement is no longer necessary or desirable for the preservation of Tax Benefits; and (vii) the close of business on the first day of a taxable year of the Company to which the Board determines that no Tax Benefits are available to be carried forward. Each share of Series B Junior Participating Preferred Stock will be entitled, when, as and if declared, to a preferential per share quarterly dividend payment equal to the greater of (i) $1.00 per share or (ii) an amount equal to 1,000 times the dividend declared per share of common stock. Each share of Series B Junior Participating Preferred Stock will entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the stockholders of the Company. In the event of any merger, consolidation or other transaction in which shares of common stock are converted or exchanged, each share of Series B Junior Participating Preferred Stock will be entitled to receive 1,000 times the amount received per one share of common stock. At the 2017 Annual Meeting, the stockholders approved the NOL Rights Agreement. |
Offerings of Common Stock and W
Offerings of Common Stock and Warrants and At-the-Market Offering Program | 6 Months Ended |
Sep. 30, 2018 | |
Offerings of Common Stock and Warrants and At-the-Market Offering Program | |
Offerings of Common Stock and Warrants and At-the-Market Offering Program | 9. Offerings of Common Stock and Warrants and At-the-Market Offering Program On June 7, 2018, the Company entered into a sales agreement with H.C. Wainwright & Co., LLC with respect to an at-the-market offering program pursuant to which the Company may offer and sell, from time to time at its sole discretion, shares of its common stock, having an aggregate offering price of up to $25.0 million. The Company will set the parameters for sales of the shares, including the number to be sold, the time period during which sales are requested to be made, any limitation on the number that may be sold in one trading day and any minimum price below which sales may not be made. During the three months ended September 30, 2018, the Company issued 3.0 million shares of the Company’s common stock under this at-the-market offering program and the net proceeds to the Company from the sale of the Company’s common stock were approximately $3.1 million after deducting commissions paid of approximately $0.1 million. During the six months ended September 30, 2018, the Company issued 3.7 million shares of the Company’s common stock under the at-the-market offering program and the net proceeds to the Company from the sale of the Company’s common stock were approximately $4.1 million after deducting commissions paid of approximately $0.1 million. As of September 30, 2018, approximately $20.7 million remained available for issuance with respect to this at-the-market offering program. On April 13, 2018, a warrant holder exercised its rights to the warrant agreement to exercise on a cashless basis 5,760,000 Series A warrants at an exercise price of $0.60 per share under the warrant agreement. In accordance with terms of the warrant agreement, after taking into account the shares withheld to satisfy the cashless exercise option, the Company issued 3,806,243 shares of common stock. As of September 30, 2018, there were 2,718,750 Series A warrants outstanding and there are no Series B warrants outstanding. Of the total Series A warrants outstanding, 2,178,750 Series A warrants were issued with an exercise price of $2.55 per share, and have an expiration date of October 25, 2021, and 540,000 Series A warrants were issued with an exercise price of $0.60 per share, and have an expiration date of April 22, 2021. Effective August 28, 2015, the Company entered into a sales agreement with Cowen and Company, LLC with respect to an at-the-market offering program pursuant to which the Company offered and sold, from time to time at its sole discretion, shares of its common stock, having an aggregate offering price of up to $30.0 million. During the six months ended September 30, 2018, the Company issued 2.8 million shares of the Company’s common stock under this at-the-market offering program and the net proceeds to the Company from the sale of the Company’s common stock were approximately $4.0 million after deducting commissions paid of approximately $0.1 million. As of September 30, 2018, 26.0 million shares of the Company’s common stock were cumulatively sold pursuant to the at-the-market offering program and the net proceeds to the Company from the sale of the common stock were approximately $28.6 million after deducting commissions paid of approximately $0.8 million. This at-the-market offering program expired on May 29, 2018. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | 10. Fair Value Measurements The FASB has established a framework for measuring fair value using generally accepted accounting principles. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described as follows: Level 1. Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2. Inputs to the valuation methodology include: · Quoted prices for similar assets or liabilities in active markets · Quoted prices for identical or similar assets or liabilities in inactive markets · Inputs other than quoted prices that are observable for the asset or liability · Inputs that are derived principally from or corroborated by observable market data by correlation or other means If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3. Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used must maximize the use of observable inputs and minimize the use of unobservable inputs. The table below presents our assets and liabilities that are measured at fair value on a recurring basis at September 30, 2018 and are categorized using the fair value hierarchy (in thousands): Fair Value Measurements at September 30, 2018 Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Restricted cash $ 6,000 $ 6,000 $ — $ — The table below presents our assets and liabilities that are measured at fair value on a recurring basis at March 31, 2018 and are categorized using the fair value hierarchy (in thousands): Fair Value Measurements at March 31, 2018 Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Restricted cash $ 5,000 $ 5,000 $ — $ — Basis for Valuation The carrying values reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate fair values because of the immediate or short-term maturities of these financial instruments. As the Company's obligations under the Credit Facility are based on adjustable market rates reflective of what would currently be available to the Company, the Company has determined that the carrying value approximates the fair value. The carrying values and estimated fair values of these obligations are as follows (in thousands): As of As of September 30, 2018 March 31, 2018 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Obligations under the credit facility $ $ 12,496 $ 8,527 $ 8,527 |
Revolving Credit Facility
Revolving Credit Facility | 6 Months Ended |
Sep. 30, 2018 | |
Revolving Credit Facility | |
Revolving Credit Facility | 11. Revolving Credit Facility Former Credit Facility The Company maintained two Credit and Security Agreements, as amended, with Wells Fargo, which provided the Company with a line of credit of up to $20.0 million in the aggregate. Interest expense related the former credit facility with Wells Fargo during the six months ended September 30, 2017 was $0.2 million, which includes $0.1 million in amortization of deferred financing costs. New Credit Facility The Company maintains Bridge Bank Credit Agreements with Western Alliance Bank through Bridge Bank, with credit support provided by the Export-Import Bank of the United States through its working capital guarantee program. Under the terms of the Bridge Bank Credit Agreements, the Company may borrow up to $15.0 million on a revolving basis depending on, among other factors, the amount of its eligible inventory and accounts receivable. The Bridge Bank Credit Agreements will terminate in accordance with their terms on June 2, 2021. On June 1, 2018, the Company entered into a letter agreement (the “Letter Agreement”) with Bridge Bank. The Letter Agreement extended the maturity date under the Company’s Bridge Bank Credit Agreements from June 2, 2019 to June 2, 2021. The Letter Agreement increased the line of credit to an amount up to $15.0 million from $12.0 million. Additionally, the Letter Agreement reduced the per annum interest rate from prime rate plus 1.50 percent to prime rate plus 1.00 percent; the facility fee from 0.625% to 0.5%, and the cash collateral held at Bridge Bank from 42% to 40%, which is $6.0 million of the $15.0 million facility, as well as no fee for early termination. Total borrowings, letter of credit obligations and the then aggregate committed amount of cash management services under the Bridge Bank Credit Agreements may not exceed 85% of the sum of unrestricted cash and the amount of cash collateral held at Bridge Bank. As a condition of the Bridge Bank Credit Agreements, the Company has restricted $6.0 million of cash equivalents as additional security for the credit facility. Borrowings under the Bridge Bank Credit Agreements will bear per annum interest at the prime rate plus 1.0 percent, subject to increase during the occurrence of an event of default. Obligations under the Bridge Bank Credit Agreements are secured by all of the Company’s assets, including intellectual property and general intangibles. The Company has incurred $0.4 million in origination fees. These fees have been recorded under the caption “Prepaid expenses and other current assets” in the accompanying condensed consolidated balance sheets and will be amortized to interest expense through June 2021. As of September 30, 2018, $12.5 million in borrowings were outstanding and approximately $2.5 million borrowings were available under the credit facility. Interest expense related to the new credit facility during the three months ended September 30, 2018 was $0.2 million, which includes $46,900 in amortization of deferred financing costs. Interest expense related to the new credit facility during the three months ended September 30, 2017 was $0.1 million, which includes $28,000 in amortization of deferred financing costs. Interest expense related to the new credit facility during the six months ended September 30, 2018 was $0.3 million, which includes $0.1 million in amortization of deferred financing costs. Interest expense related to the new credit facility during the six months ended September 30, 2017 was $0.2 million, which includes $46,000 in amortization of deferred financing costs. The Company’s borrowing rate was 6.3% at September 30, 2018. The Bridge Bank Credit Agreements include affirmative covenants as well as negative covenants that prohibit a variety of actions without Bridge Bank’s consent, including covenants that limit the Company’s ability to (a) incur or guarantee debt, (b) create liens, (c) enter into any merger, recapitalization or similar transaction or purchase all or substantially all of the assets or stock of another entity or (d) sell, assign, transfer or otherwise dispose of the Company’s assets. The financial covenants of the domestic credit agreement with Bridge Bank (the “Domestic Facility”), which is included in the Bridge Bank Credit Agreements, requires the Company not to exceed specified levels of losses relative to its financial model and the outstanding line of credit advances may not exceed 85% of the sum of unrestricted cash and the amount of cash collateral held at Bridge Bank. The Domestic Facility also defines an event of default to include a material adverse effect on the Company’s business. An event of default for this or any other reason, if not waived, could have a material adverse effect on the Company. As of September 30, 2018 we were in compliance with the covenants contained in the Bridge Bank Credit Agreements for Fiscal 2019. |
Accrued Warranty Reserve
Accrued Warranty Reserve | 6 Months Ended |
Sep. 30, 2018 | |
Accrued Warranty Reserve | |
Accrued Warranty Reserve | 12. Accrued Warranty Reserve The Company provides for the estimated costs of warranties at the time revenue is recognized. The specific terms and conditions of those warranties vary depending upon the microturbine product sold and the geography of sale. The Company’s product warranties generally start from the delivery date and continue for up to twenty-four months. Factors that affect the Company’s warranty obligation include product failure rates, anticipated hours of product operations and costs of repair or replacement in correcting product failures. These factors are estimates that may change based on new information that becomes available each period. Similarly, the Company also accrues the estimated costs to address reliability repairs on products no longer in warranty when, in the Company’s judgment, and in accordance with a specific plan developed by the Company, it is prudent to provide such repairs. The Company assesses the adequacy of recorded warranty liabilities quarterly and makes adjustments to the liability as necessary. When the Company has sufficient evidence that product changes are altering the historical failure occurrence rates, the impact of such changes is then taken into account in estimating future warranty liabilities. Changes in accrued warranty reserve during the six months ended September 30, 2018 are as follows (in thousands): Balance, beginning of the period $ 1,682 Standard warranty provision 1,251 Accrual related to reliability repair programs — Deductions for warranty claims (691) Balance, end of the period $ 2,242 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition | |
Revenue Recognition | 13. Revenue Recognition On April 1, 2018, the Company adopted the new revenue standard ASU 2014-09 and applied it to all contracts using the modified retrospective method. The Company determined there was no change in applying the new revenue standard, therefore no adjustment to the opening balance of accumulated deficit was needed. The Company derives its revenues primarily from system sales, service contracts and professional services. Revenues are recognized when control of the systems and services is transferred to the Company’s customers in an amount that reflects the consideration it expects to be entitled to in exchange for those services. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which generally occurs, for systems, upon the transfer of control in accordance with the contractual terms and conditions of the sale. The majority of the Company’s revenue associated with systems is recognized at a point in time when the system is shipped to the customer. Revenue from service contracts and post-shipment performance obligations is recognized when or as those obligations are satisfied. The Company primarily offers assurance-type standard warranties that do not represent separate performance obligations and will separately offer and price extended warranties that are separate performance obligations for which the associated revenue is recognized over-time based on the extended warranty period. The Company records amounts billed to customers for reimbursement of shipping and handling costs within revenue. Shipping and handling costs associated with outbound freight after control over a system has transferred to a customer are accounted for as fulfillment costs and are included in cost of goods sold. Sales taxes and other usage-based taxes are excluded from revenue. Comprehensive Factory Protection Plan (“FPP”) service contracts require payment at the beginning of the contract period. Advance payments are not considered a significant financing component as they are typically received less than one year before the related performance obligations are satisfied. These payments are treated as a contract liability and are classified in deferred revenue in the Condensed Consolidated Balance Sheet. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Condensed Consolidated Statement of Income. The deferred revenue relating to the annual maintenance service contracts is recognized in the Condensed Consolidated Statement of Income on a straight line basis over the expected term of the contract. Significant Judgments - Contracts with Multiple Performance Obligations The Company enters into contracts with its customers that often include promises to transfer multiple products, parts, accessories, FPP and services. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment. Products, parts and accessories are distinct as such services are often sold separately. In determining whether FPP and service contracts are distinct, the Company considers the following factors for each FPP and services agreement: availability of the services from other vendors, the nature of the services, the timing of when the services contract was signed in comparison to the product delivery date and the contractual dependence of the product on the customer’s satisfaction with the professional services work. To date, the Company has concluded that all of the FPP and services contracts included in contracts with multiple performance obligations are distinct. The Company allocates the transaction price to each performance obligation on a relative standalone selling price (“SSP”) basis. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where systems and services are sold, price lists, its go-to-market strategy, historical sales and contract prices. The determination of SSP is made through consultation with and approval by the Company’s management, taking into consideration the go-to-market strategy. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to SSP. In certain cases, the Company is able to establish SSP based on observable prices of products or services sold separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when it has observable prices. If SSP is not directly observable, for example when pricing is highly variable, the Company uses a range of SSP. The Company determines the SSP range using information that may include market conditions or other observable inputs. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size and geography. The following table presents disaggregated revenue by business group for the three and six months ended September 30, 2018 (in thousands): Three Months Ended Six Months Ended September 30, 2018 September 30, 2018 Microturbine Products $ 14,876 $ 28,509 Accessories and Parts 3,751 7,203 Total Product, Accessories and Parts 18,627 35,712 Service 3,547 7,651 Total Revenue $ 22,174 $ 43,363 Following is the geographic revenue information based on the primary operating location of the Company’s customers for the three and six months ended September 30, 2018 (in thousands): Three Months Ended Six Months Ended September 30, 2018 September 30, 2018 United States $ 10,938 $ 21,812 Mexico 1,186 1,795 All other North America 151 267 Total North America 12,275 23,874 Europe 3,689 6,651 United Kingdom 648 2,559 Columbia 43 2,659 Asia 2,212 3,066 Australia 512 1,365 Kuwait 2,161 2,161 All other 634 1,028 Total Revenue $ 22,174 $ 43,363 Contract Balances Our contract liabilities consist of advance payments for systems as well as deferred revenue on service obligations and extended warranties. The current portion of deferred revenue is included in current liabilities under deferred revenue and the non-current portion of deferred revenue is included in other non-current liabilities in the Condensed Consolidated Balance Sheet. As of September 30, 2018 the balance of deferred revenue was approximately $6.8 million compared to $6.6 million as of March 31, 2018. This overall increase in the balance of deferred revenue of $0.2 million during the six months ended September 30, 2018 was comprised of an increase in deferred revenue attributable to FPP contracts of $1.1 million, offset by decreases in deferred revenue attributable to the Distributor Support System (“DSS program”) of $0.5 million and deferred revenue attributable to deposits of $0.4 million. Changes in deferred revenue during the six months ended September 30, 2018 are as follows (in thousands): FPP Balance, beginning of the period $ 3,549 FPP Billings 8,087 FPP Revenue recognized (7,078) Balance attributed to FPP contracts 4,558 DSS program 626 Deposits 1,597 Deferred revenue balance, end of the period $ 6,781 Deferred revenue attributed to FPP contracts represents the unearned portion of the billed agreements. FPP agreements are generally paid quarterly in advance with revenue recognized on a straight line basis over the contract period. The DSS program began January 1, 2018 and service revenue derived from the DSS program began in March 2018 and is recognized on a pro rata basis as the distributors purchase our products. Deferred revenue attributed to deposits are primarily non-refundable cash payments from distributors for future orders. As of September 30, 2018, approximately $4.6 million of revenue is expected to be recognized from remaining performance obligations for FPP service contracts. The Company expects to recognize revenue on approximately $3.3 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter. Revenue from remaining performance obligations for professional services contracts as of September 30, 2018 was not material. Unsatisfied Performance Obligations The Company has elected the practical expedient to disclose only the value of unsatisfied performance obligations for contracts with an original expected length greater than one year. The majority of the Company’s revenues resulted from sales of inventoried systems with short periods of manufacture and delivery and thus are excluded from this disclosure. Practical Expedients We apply a practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Sep. 30, 2018 | |
Other Current Liabilities | |
Other Current Liabilities | 14. Other Current Liabilities The Company is a party to a Development and License Agreement with Carrier Corporation (“Carrier”) regarding the payment of royalties on the sale of each of the Company’s 200 kilowatt (“C200”) microturbines. On July 25, 2018, the Company and Carrier entered into a Second Amendment to the Development and License Agreement (“Second Amendment”) whereby the Company agreed to pay Carrier approximately $3.0 million to conclude the Company’s current royalty obligation under the Development and License Agreement, dated as of September 4, 2007, as amended (“Development Agreement”) and release the Company from any future royalty payment obligations. The Second Amendment also removed non-compete provisions from the Development Agreement, allowing the Company to design market or sell its C200 System in conjunction with any energy system and compete with Carrier products in the CCHP market. Carrier earned zero and $0.2 million in royalties for C200 and C1000 Series system sales during the three and six months ended September 30, 2018, respectively. Carrier earned $0.2 million and $0.5 million in royalties for C200 and C1000 Series system sales during the three and six months ended September 30, 2017, respectively. Earned royalties of approximately $0.2 million were unpaid as of March 31, 2018, and are included in accrued expenses in the accompanying condensed consolidated balance sheets. On September 19, 2018, the Company paid in full the negotiated royalty settlement of $3.0 million to Carrier, and as such, there is no further royalty obligation to Carrier. The prepaid royalty of $3.0 million has been recorded under the captions “Prepaid expenses and other current assets” and “Other assets” in the accompanying condensed consolidated balance sheets and will be amortized in the accompanying condensed consolidated statement of operations over a 15-year amortization period through September 2033 using an effective royalty rate. The effective royalty rate is calculated as the prepaid royalty settlement divided by total projected C200 System units over the 15-year amortization period. On a quarterly basis, the Company will perform a re-forecast of C200 System unit shipments, to see if a change needs to be made to the effective royalty rate. Accordingly, if the Company’s future projections change, its effective royalty rates would change, which could affect the amount and timing of royalty expense the Company recognizes. If impairment exists, then the prepaid royalty asset could be written down to fair value. Prepaid royalties are classified as current assets to the extent that such amounts will be recognized in the Company’s condensed consolidated statements of operations within the next 12 months. The current and long-term portions of prepaid royalties, included in other current assets and other assets, respectively, consisted of (in thousands): On September 19, 2018, the Company paid in full the negotiated royalty settlement of $3.0 million to Carrier, and as such, there is no further royalty obligation to Carrier. The prepaid royalty of $3.0 million has been recorded under the captions “Prepaid expenses and other current assets” and “Other assets” in the accompanying condensed consolidated balance sheets and will be amortized in the accompanying condensed consolidated statement of operations over a 15-year amortization period through September 2033 using an effective royalty rate. The effective royalty rate is calculated as the prepaid royalty settlement divided by total projected C200 System units over the 15-year amortization period. On a quarterly basis, the Company will perform a re-forecast of C200 System unit shipments, to see if a change needs to be made to the effective royalty rate. Accordingly, if the Company’s future projections change, its effective royalty rates would change, which could affect the amount and timing of royalty expense the Company recognizes. If impairment exists, then the prepaid royalty asset could be written down to fair value. Prepaid royalties are classified as current assets to the extent that such amounts will be recognized in the Company’s condensed consolidated statements of operations within the next 12 months. The current and long-term portions of prepaid royalties, included in other current assets and other assets, respectively, consisted of (in thousands): September 30, 2018 Other current assets $ 124 Other assets 2,828 Royalty-related assets $ 2,952 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies | |
Commitments and Contingencies | 15. Commitments and Contingencies Purchase Commitments As of September 30, 2018, the Company had firm commitments to purchase inventories of approximately $37.1 million through Fiscal 2020. Certain inventory delivery dates and related payments are not firmly scheduled; therefore, amounts under these firm purchase commitments will be payable upon the receipt of the related inventories. Lease Commitments The Company leases offices and manufacturing facilities under various non-cancelable operating leases expiring at various times through Fiscal 2025. All of the leases require the Company to pay maintenance, insurance and property taxes. The lease agreements for primary office and manufacturing facilities provide for rent escalation over the lease term and renewal options for five-year periods. Rent expense is recognized on a straight-line basis over the term of the lease. The difference between rent expense recorded and the amount paid is credited or charged to deferred rent, which is included in other long-term liabilities in the accompanying balance sheets. The balance of deferred rent was approximately $0.4 million as of September 30, 2018 and March 31, 2018, respectively. Rent expense was approximately $0.6 million during each of the three months ended September 30, 2018 and 2017. Rent expense was approximately $1.2 million and $1.1 million during the six months ended September 30, 2018 and 2017, respectively. Other Commitments The Company has agreements with certain of its distributors requiring that if the Company renders parts obsolete in inventories the distributors own and hold in support of their obligations to serve fielded microturbines, then the Company is required to replace the affected stock at no cost to the distributors. While the Company has never incurred costs or obligations for these types of replacements, it is possible that future changes in the Company’s product technology could result and yield costs to the Company if significant amounts of inventory are held at distributors. As of September 30, 2018, no significant inventories were held at distributors. Legal Matters Federal Securities Class Action Two putative securities class action complaints were filed against the Company and certain of its current and former officers in the United States District Court for the Central District of California under the following captions: David Kinney, etc. v. Capstone Turbine, et al., No. 2:15-CV-08914 on November 16, 2015 (the “Kinney Complaint”) and Kevin M. Grooms, etc. v. Capstone Turbine, et al., No. 2:15-CV-09155 on November 25, 2015 (the “Grooms Complaint”). The putative class in the Kinney Complaint was comprised of all purchasers of the Company’s securities between November 7, 2013 and November 5, 2015. The Kinney Complaint alleges material misrepresentations and omissions in public statements regarding BPC and the likelihood that BPC would not be able to fulfill many legal and financial obligations to the Company. The Kinney Complaint also alleges that the Company’s financial statements were not appropriately adjusted in light of this situation and were not maintained in accordance with GAAP, and that the Company lacked adequate internal controls over accounting. The Kinney Complaint alleges that these public statements and accounting irregularities constituted violations by all named defendants of Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder, as well as violations of Section 20(a) of the Exchange Act by the individual defendants. The Grooms Complaint makes allegations and claims that are substantially identical to those in the Kinney Complaint, and both complaints seek compensatory damages of an undisclosed amount. On January 16, 2016, several shareholders filed motions to consolidate the Kinney and Grooms actions and for appointment as lead plaintiff. On February 29, 2016, the Court granted the motions to consolidate, and appointed a lead plaintiff. On May 6, 2016, a Consolidated Amended Complaint with allegations and claims substantially identical to those of the Kinney Complaint was filed in the consolidated action. The putative class period in the Consolidated Amended Complaint is June 12, 2014 to November 5, 2015. Defendants filed a motion to dismiss the Consolidated Amended Complaint on June 17, 2016. On March 10, 2017, the Court issued an order granting Defendants’ motion to dismiss in its entirety with leave to amend. Plaintiffs filed an amended complaint on April 28, 2017. On February 9, 2018, the Court issued an Order denying Defendants’ motion to dismiss. On March 30, 2018, Defendants filed an answer to the Consolidated Amended Complaint. On May 17, 2018, the Court issued a scheduling order setting a trial date of March 17, 2020. On June 26, 2018, the Court entered an order vacating all deadlines through the end of October 2018 and temporarily staying formal discovery and other proceedings to allow the parties time to conduct a mediation. The parties participated in mediation on September 24, 2018. The mediation did not result in a settlement. The Company has not recorded any liability as of September 30, 2018 since any potential loss is not probable or reasonably estimable given the current status of the proceedings. Federal Individual Securities Action An individual securities complaint was filed against us, our Chief Executive Officer, and additional unidentified defendants in the United States District Court for the Central District of California under the following caption: FiveT Investment Management LTD, et al., v. Capstone Turbine, et al., No. 2:18-CV-03512 on April 25, 2018. The lawsuit alleges material misrepresentations and omissions regarding our revenue, sales, and operations because of alleged improper revenue recognition and backlog calculations related to BPC. The lawsuit alleged that these statements constituted violations by all named defendants of Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder, as well as violations of Section 20(a) of the Exchange Act by the individual defendants. The complaint also asserted claims against all named defendants for fraud, negligent misrepresentation, violations of California Civil Code sections 1709 and 1710, and California Corporations Code sections 25400 and 25401. Additionally, the complaint asserted a cause of action against the individual defendants for breach of fiduciary duty. It demanded compensatory damages for the amount of damages allegedly suffered, pre-judgment and post-judgment interest, and fees. On June 29, 2018, the plaintiffs filed an Amended Complaint for Common Law Fraud and Negligent Misrepresentation. The Amended Complaint asserts claims for common law fraud and negligent misrepresentation, against the Company, Mr. Jamison, and unidentified individual defendants. The Amended Complaint demands damages in an unspecified amount, plus pre-judgment and post-judgment interest and fees. Defendants filed their answer to the Amended Complaint on August 17, 2018. The parties participated in a mediation on September 24, 2018. The mediation did not result in a settlement. On October 12, 2018, the plaintiffs filed a motion for leave to amend their complaint, seeking to reinstate the cause of action for violation of California Civil Code section 25401. The motion is scheduled for hearing on November 30, 2018. The Company has not recorded any liability as of September 30, 2018 since any potential loss is not probable or reasonably estimable given the current status of the proceedings. State Derivative Lawsuits — California On February 18, 2016, a purported shareholder derivative action was filed in Los Angeles Superior Court in the State of California against the Company and certain of its current and former officers and directors under the following caption: Stesiak v. Jamison, et al., No. BC610782. The lawsuit alleges that certain of the Company’s current and former officers and directors knew or should have known that BPC would be unable to fulfill its obligations to the Company, but allowed the Company to make false and misleading statements regarding BPC and the Company’s financial condition. The complaint also alleges that the defendants failed to timely adjust the Company’s account receivables and backlog to reflect BPC’s inability to pay the Company. The complaint asserts causes of action for breach of fiduciary duty and unjust enrichment. It demands damages for the amount of damage sustained by the Company as a result of the individual defendants’ alleged breach of fiduciary duties and unjust enrichment, that the Company institute corporate governance reforms, and disgorgement from the individual defendants. On May 5, 2016, the parties filed a stipulation and proposed order seeking to stay this action until such time as the defendants’ motion(s) to dismiss the federal securities class action are either granted with prejudice or denied in whole or in part. On May 10, 2016, the Court entered that proposed order. On March 9, 2018, following the Court’s order denying Defendants’ motion to dismiss in the federal securities class action, the parties filed a stipulation and proposed order seeking to stay this action until the close of fact discovery in the federal securities class action. On March 20, 2018, the Court entered that proposed order. A status conference is scheduled for January 22, 2019. On June 8, 2016, a purported shareholder derivative action entitled Velma Kilpatrick v. Simon, et al., No. BC623167, was filed in Los Angeles Superior Court in the State of California against the Company and certain of its current and former officers and directors. The complaint alleges that certain of the Company’s current and former officers and directors knew or should have known that BPC would be unable to fulfill its obligations to the Company, but allowed the Company to make false and misleading statements regarding BPC and the Company’s financial condition. The complaint also alleges that the defendants failed to timely adjust the Company’s account receivables and backlog to reflect BPC’s inability to pay the Company. The complaint asserts causes of action for breach of fiduciary duty. It demands damages for the amount of damage sustained by the Company as a result of the individual defendants’ alleged breach of fiduciary duties, and that the Company institute corporate governance reforms. On August 23, 2016, the parties filed a stipulation and proposed order seeking to stay this action until such time as the defendants’ motion(s) to dismiss the federal securities class action are either granted with prejudice or denied in whole or in part. On March 9, 2018, following the Court’s order denying Defendants’ motion to dismiss in the federal securities class action, the parties filed a stipulation and proposed order seeking to stay this action until the close of fact discovery in the federal securities class action. On March 20, 2018, the Court entered that proposed order. A status conference is scheduled for January 2, 2019. The parties in both of the above state derivative lawsuits participated in a mediation held on September 24, 2018. Settlement negotiations are ongoing. Federal Derivative Lawsuits On March 7, 2016, a purported shareholder derivative action was filed in the United States District Court for the Central District of California against the Company and certain of its current and former officers and directors under the following caption: Haber v. Jamison, et al., No. CV16-01569-DMG (RAOx). The lawsuit alleges that certain of the Company’s current and former officers and directors knew or should have known that BPC would be unable to fulfill its obligations to the Company, but allowed the Company to make false and misleading statements regarding BPC and the Company’s financial condition. The complaint asserts a cause of action for breach of fiduciary duty. It demands damages for the amount of damage sustained by the Company as a result of the individual defendants’ alleged breach of fiduciary duties, and equitable relief, including that the Company institute appropriate corporate governance reforms. On May 11, 2016, the parties filed a stipulation and proposed order seeking to stay this action until such time as the defendants’ motion(s) to dismiss the federal securities class action are either granted with prejudice or denied in whole or in part. On May 13, 2016, the Court entered that proposed order. On July 12, 2016 and July 18, 2016, respectively, two additional purported shareholder derivative actions were filed in the United States District Court for the Central District of California against the Company and certain of its current and former officers and directors, under the caption Tuttle v. Atkinson, et al., No. CV16-05127, and Boll v. Jamison, et al., No. CV16-5282, respectively. The lawsuits allege that certain of the Company’s current and former officers and directors knew or should have known that BPC would be unable to fulfill its obligations to the Company, but allowed the Company to make false and misleading statements regarding BPC and the Company’s financial condition. The Tuttle complaint asserts causes of action for breach of fiduciary duty, gross mismanagement, and unjust enrichment, and the Boll complaint asserts causes of action for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets. Both complaints demand damages sustained by the Company as a result of the individual defendants’ alleged breaches of fiduciary duties, and equitable relief, including that the Company institute appropriate corporate governance reforms. The federal derivative actions were stayed until such time as the defendants’ motion(s) to dismiss the federal securities class action are either granted with prejudice or denied in whole or in part. On March 9, 2018, following the Court’s order denying Defendants’ motion to dismiss in the federal securities class action, the parties filed a stipulation and proposed order seeking to stay this action until the close of fact discovery in the federal securities class action. On March 13, 2018, the Court granted the parties’ stipulation. The parties in the above federal derivative lawsuits participated in a mediation held on September 24, 2018. Settlement negotiations are ongoing. Capstone Turbine Corporation v. Regatta Solutions, Inc. On August 14, 2018, the Company initiated arbitration proceedings against its former distributor, Regatta Solutions, Inc. (“Regatta”), and additional unidentified defendants with the American Arbitration Association under the following caption: Capstone Turbine Corp. v. Regatta Solutions, Inc., Case No. 01-18-0003-0860 (“Capstone-Regatta Arbitration”). The Company has alleged claims against Regatta for breach of contract and unjust enrichment relating to an agreement to wind down relations following the mutual non-renewal of the distributor agreement between the parties. As remedies for these claims, the Company is seeking compensatory, consequential, and punitive damages, along with declaratory relief and attorney’s fees, interest and costs. On October 18, 2018, Regatta filed its answer and cross-claims in the Capstone-Regatta Arbitration. In its cross-claims, Regatta has asserted claims for breach of contract, intentional interference with prospective economic advantage, fraud, and intentional interference with contractual relation relating to the agreement to wind down relations and purported sales efforts by the Company’s distributor in California. As remedies for these alleged claims, Regatta is seeking no less than $1.5 million in general and compensatory damages, along with punitive and exemplary damages, as well as attorney’s fees and costs. The Company’s answer to the cross-claims is due to be filed on November 7, 2018. On October 18, 2018, Regatta also filed claims in the Superior Court of the State of California, County of Orange, alleging two counts of fraud, and one count of interference with contractual obligations individually against Mr. James Crouse, Executive Vice President of Sales for the Company arising out of the same allegations relating to the agreement to wind down relations and purported sales efforts by the Company’s distributor in California. As remedies for these alleged claims, Regatta is seeking no less than $1.5 million in general and compensatory damages, along with punitive and exemplary damages, as well as attorney’s fees and costs. The case was filed under the caption Regatta Solutions, Inc., v. Jim Crouse, et. al., Case No. 30-2018-01026571-CU-FR-CJC. The Company has not recorded any liability as of September 30, 2018 since any potential loss is not probable or reasonably estimable given the current status of the proceedings. Capstone Turbine Corporation v. Energy Systems, Inc. On August 17, 2018 the Company initiated arbitration proceedings against its former distributor, Energy Systems of Caribbean, Inc. (“Energy Systems”) by seeking declaratory relief that its action in terminating the distributorship was justified under the law. The claim was filed with the American Arbitration Association under the following caption: Capstone Turbine Corp. v. Energy Systems of Caribbean, Inc., Case No. 01-18-0003-1307. As remedies for these claims, the Company is seeking declaratory relief and attorney’s fees, interest and costs. On August 22, 2018, Energy Systems filed a claim against the Company in Puerto Rico alleging Breach of Distribution Contract under Law No. 75 of June 24, 1964, as amended, 10 l.p.r.a. §§ 278-278. The case was filed under the caption Energy Systems of Caribbean, Inc., v. Capstone Turbine Corporation, CIVIL NO. SJ2018cv06543 (904). As remedies for these alleged claims, Energy Systems seeks actual damages, injunctive relief, attorney’s fees and costs. This matter was subsequently removed to the United States District Court for the District of Puerto Rico based on diversity jurisdiction (Case No. 3:18-cv-01611). The parties have since stipulated to a stay of both the federal litigation and arbitration so that the parties may pursue settlement. The Company has not recorded any liability as of September 30, 2018 since any potential loss is not probable or reasonably estimable given the current status of the proceedings. |
Net Loss Per Common Share
Net Loss Per Common Share | 6 Months Ended |
Sep. 30, 2018 | |
Net Loss Per Common Share | |
Net Loss Per Common Share | 16. Net Loss Per Common Share Basic loss per share of common stock is computed using the weighted average number of common shares outstanding for the period. Diluted loss per share is computed without consideration to potentially dilutive instruments because the Company incurred losses in the three months ended September 30, 2018 which would make these instruments anti-dilutive. As of September 30, 2018 and 2017, the number of anti-dilutive stock options and restricted stock units excluded from diluted net loss per common share computations was approximately 2.4 million and 0.9 million, respectively. As of September 30, 2018, the number of PRSUs subject to performance conditions which have not been satisfied have been excluded from diluted net loss per common share computations was approximately 0.3 million. There were no PRSUs outstanding as of September 30, 2017. As of September 30, 2018 and 2017, the number of warrants excluded from diluted net loss per common share computations was approximately 2.7 million and 10.4 million, respectively. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Basis of Presentation | |
Reconciliation of cash, cash equivalents and restricted cash | September 30, March 31, 2018 2018 Cash and cash equivalents $ 12,303 $ 14,408 Restricted cash 6,000 5,000 Total cash, cash equivalents and restricted cash $ 18,303 $ 19,408 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Inventories | |
Summary of inventory | Inventories are valued at the lower of cost (determined on a first in first out (“FIFO”) basis) or net realizable value and consisted of the following as of September 30, 2018 and March 31, 2018 (in thousands): September 30, March 31, 2018 2018 Raw materials $ 19,716 $ 17,981 Work in process 30 111 Finished goods 1,449 4,076 Total 21,195 22,168 Less inventory reserve (4,609) (5,494) Less non-current portion (1,109) (1,041) Current portion $ 15,477 $ 15,633 |
Schedule of expected usage for non-current inventory | The Company expects to use the non-current portion of the inventories on hand as of September 30, 2018 over the periods presented in the following table (in thousands): Non-current Inventory Balance Expected Expected Period of Use to be Used 13 to 24 months $ 405 25 to 36 months 704 Total $ 1,109 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment | |
Schedule of property, plant and equipment | Property, plant and equipment consisted of the following as of September 30, 2018 and March 31, 2018 (in thousands): September 30, March 31, 2018 2018 Machinery, rental equipment, equipment, automobiles and furniture $ 15,295 $ 15,481 Leasehold improvements 11,053 10,949 Molds and tooling 2,834 2,904 29,182 29,334 Less, accumulated depreciation (26,351) (26,475) Total property, plant and equipment, net $ 2,831 $ 2,859 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Intangible Assets | |
Schedule of intangible assets | Intangible assets consisted of the following as of September 30, 2018 and March 31, 2018 (in thousands): September 30, 2018 Weighted Average Intangible Amortization Assets, Accumulated Intangible Period Gross Amortization Assets, Net Manufacturing license 17 years $ 3,700 $ 3,700 $ — Technology 10 years 2,240 1,941 299 Trade name & parts, service and TA100 customer relationships 1.2 to 5 years 1,766 1,766 — Total $ 7,706 $ 7,407 $ 299 March 31, 2018 Weighted Average Intangible Amortization Assets, Accumulated Intangible Period Gross Amortization Assets, Net Manufacturing license 17 years $ 3,700 $ 3,700 $ — Technology 10 years 2,240 1,829 411 Trade name & parts, service and TA100 customer relationships 1.2 to 5 years 1,766 1,766 — Total $ 7,706 $ 7,295 $ 411 |
Schedule of expected future amortization expense of intangible assets | Expected future amortization expense of intangible assets as of September 30, 2018 is as follows (in thousands): Amortization Year Ending March 31, Expense 2019 (remainder of fiscal year) 112 2020 187 Total expected future amortization $ 299 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity. | |
Summary of stock-based compensation expense by statement of operations line item | The following table summarizes, by condensed consolidated statement of operations line item, stock-based compensation expense for the Company’s three and six months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 Cost of goods sold $ 13 $ 18 $ 25 $ 38 Research and development 6 5 13 12 Selling, general and administrative 205 130 413 257 Stock-based compensation expense $ 224 $ 153 $ 451 $ 307 |
Summary of stock option activity | Weighted- Average Weighted- Remaining Aggregate Average Contractual Intrinsic Shares Exercise Price Term Value (in years) Options outstanding at March 31, 2018 212,392 $ 20.71 Granted — $ — Exercised — $ — Forfeited, cancelled or expired (2,500) $ 55.20 Options outstanding at September 30, 2018 209,892 $ 20.30 — Options fully vested at September 30, 2018 and those expected to vest beyond September 30, 2018 209,892 $ 20.30 — Options exercisable at September 30, 2018 209,892 $ 20.30 — |
Summary of restricted stock activity | Weighted Average Grant Date Fair Restricted Stock Units and Performance Restricted Stock Units Shares Value Nonvested restricted stock units outstanding at March 31, 2018 2,011,611 $ 0.90 Granted 634,856 1.36 Vested and issued (465,165) 0.88 Forfeited (32,945) 0.86 Nonvested restricted stock units outstanding at September 30, 2018 2,148,357 1.04 Restricted stock units expected to vest beyond September 30, 2018 2,148,334 $ 1.04 |
Schedule of additional information on restricted stock units | Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 Restricted stock compensation expense (in thousands) $ 224 $ 144 $ 451 $ 287 Aggregate fair value of restricted stock units vested and issued (in thousands) $ 516 $ 130 $ 523 $ 137 Weighted average grant date fair value of restricted stock units granted during the period $ 1.14 $ 0.62 $ 1.36 $ 0.67 |
Schedule of restricted stock award activity | Three Months Ended Six Months Ended September 30, September 30, 2017 2017 Restricted stock awards compensation expense (in thousands) $ 1 $ 3 Restricted stock awards granted 1,953 3,969 Weighted average grant date fair value of restricted stock awards granted during the period $ 0.64 $ 0.63 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements | |
Schedule of assets and liabilities measured at fair value on a recurring basis | The table below presents our assets and liabilities that are measured at fair value on a recurring basis at September 30, 2018 and are categorized using the fair value hierarchy (in thousands): Fair Value Measurements at September 30, 2018 Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Restricted cash $ 6,000 $ 6,000 $ — $ — The table below presents our assets and liabilities that are measured at fair value on a recurring basis during the fiscal year ended March 31, 2018 and are categorized using the fair value hierarchy (in thousands): Fair Value Measurements at March 31, 2018 Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Restricted cash $ 5,000 $ 5,000 $ — $ — |
Schedule of carrying values and estimated fair values of obligations under the revolving credit facility | The carrying values and estimated fair values of these obligations are as follows (in thousands): As of As of September 30, 2018 March 31, 2018 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Obligations under the credit facility $ $ 12,496 $ 8,527 $ 8,527 |
Accrued Warranty Reserve (Table
Accrued Warranty Reserve (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Accrued Warranty Reserve | |
Schedule of changes in accrued warranty reserve | Changes in accrued warranty reserve during the six months ended September 30, 2018 are as follows (in thousands): Balance, beginning of the period $ 1,682 Standard warranty provision 1,251 Accrual related to reliability repair programs — Deductions for warranty claims (691) Balance, end of the period $ 2,242 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition | |
Schedule of disaggregated revenue by business group | The following table presents disaggregated revenue by business group for the three and six months ended September 30, 2018 (in thousands): Three Months Ended Six Months Ended September 30, 2018 September 30, 2018 Microturbine Products $ 14,876 $ 28,509 Accessories and Parts 3,751 7,203 Total Product, Accessories and Parts 18,627 35,712 Service 3,547 7,651 Total Revenue $ 22,174 $ 43,363 |
Summary of geographic revenue information based on primary operation location of customer | Following is the geographic revenue information based on the primary operating location of the Company’s customers for the three and six months ended September 30, 2018 (in thousands): Three Months Ended Six Months Ended September 30, 2018 September 30, 2018 United States $ 10,938 $ 21,812 Mexico 1,186 1,795 All other North America 151 267 Total North America 12,275 23,874 Europe 3,689 6,651 United Kingdom 648 2,559 Columbia 43 2,659 Asia 2,212 3,066 Australia 512 1,365 Kuwait 2,161 2,161 All other 634 1,028 Total Revenue $ 22,174 $ 43,363 |
Schedule of changes in deferred revenue | FPP Balance, beginning of the period $ 3,549 FPP Billings 8,087 FPP Revenue recognized (7,078) Balance attributed to FPP contracts 4,558 DSS program 626 Deposits 1,597 Deferred revenue balance, end of the period $ 6,781 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Other Current Liabilities | |
Schedule of current and long-term portions of prepaid royalties | On September 19, 2018, the Company paid in full the negotiated royalty settlement of $3.0 million to Carrier, and as such, there is no further royalty obligation to Carrier. The prepaid royalty of $3.0 million has been recorded under the captions “Prepaid expenses and other current assets” and “Other assets” in the accompanying condensed consolidated balance sheets and will be amortized in the accompanying condensed consolidated statement of operations over a 15-year amortization period through September 2033 using an effective royalty rate. The effective royalty rate is calculated as the prepaid royalty settlement divided by total projected C200 System units over the 15-year amortization period. On a quarterly basis, the Company will perform a re-forecast of C200 System unit shipments, to see if a change needs to be made to the effective royalty rate. Accordingly, if the Company’s future projections change, its effective royalty rates would change, which could affect the amount and timing of royalty expense the Company recognizes. If impairment exists, then the prepaid royalty asset could be written down to fair value. Prepaid royalties are classified as current assets to the extent that such amounts will be recognized in the Company’s condensed consolidated statements of operations within the next 12 months. The current and long-term portions of prepaid royalties, included in other current assets and other assets, respectively, consisted of (in thousands): September 30, 2018 Other current assets $ 124 Other assets 2,828 Royalty-related assets $ 2,952 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | Sep. 19, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Reconciliation of total cash, cash equivalents and restricted cash | |||||||
Cash and cash equivalents | $ 12,303 | $ 12,303 | $ 14,408 | ||||
Restricted cash | 6,000 | 6,000 | 5,000 | ||||
Total cash, cash equivalents and restricted cash | 18,303 | $ 15,156 | 18,303 | $ 15,156 | 19,408 | $ 19,705 | |
Net loss | 4,357 | 3,667 | 9,255 | 7,760 | |||
Cash used in operating activities | 12,595 | 5,852 | |||||
Cash, cash equivalents and restricted cash | 18,303 | $ 15,156 | 18,303 | $ 15,156 | 19,408 | $ 19,705 | |
Outstanding borrowings | 12,496 | 12,496 | $ 8,527 | ||||
Carrier | |||||||
Reconciliation of total cash, cash equivalents and restricted cash | |||||||
Payment of royalty settlement | $ 3,000 | ||||||
Credit Facility | |||||||
Reconciliation of total cash, cash equivalents and restricted cash | |||||||
Restricted cash | 6,000 | 6,000 | |||||
Doubt about Company’s ability to meet obligations for next 12 months | |||||||
Reconciliation of total cash, cash equivalents and restricted cash | |||||||
Total cash, cash equivalents and restricted cash | 18,300 | 18,300 | |||||
Net loss | 4,400 | ||||||
Cash used in operating activities | 6,600 | ||||||
Cash, cash equivalents and restricted cash | 18,300 | 18,300 | |||||
Doubt about Company’s ability to meet obligations for next 12 months | Carrier | |||||||
Reconciliation of total cash, cash equivalents and restricted cash | |||||||
Payment of royalty settlement | 3,000 | ||||||
Doubt about Company’s ability to meet obligations for next 12 months | Credit Facility | |||||||
Reconciliation of total cash, cash equivalents and restricted cash | |||||||
Outstanding borrowings | $ 12,500 | $ 12,500 |
Customer Concentrations and A_2
Customer Concentrations and Accounts Receivable (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Revenue | Customer concentrations | Horizon | |||||
Customer Concentrations and Accounts Receivable | |||||
Concentration percentage | 15.00% | 10.00% | 12.00% | ||
Revenue | Customer concentrations | E-Finity | |||||
Customer Concentrations and Accounts Receivable | |||||
Concentration percentage | 12.00% | 11.00% | 11.00% | 13.00% | |
Revenue | Customer concentrations | SPETCO International | |||||
Customer Concentrations and Accounts Receivable | |||||
Concentration percentage | 10.00% | ||||
Revenue | Customer concentrations | Reliable Secure Power Systems | |||||
Customer Concentrations and Accounts Receivable | |||||
Concentration percentage | 12.00% | ||||
Revenue | Customer concentrations | Regatta | |||||
Customer Concentrations and Accounts Receivable | |||||
Concentration percentage | 11.00% | ||||
Revenue | Customer concentrations | Optimal Group Australia | |||||
Customer Concentrations and Accounts Receivable | |||||
Concentration percentage | 11.00% | 10.00% | |||
Revenue | Customer concentrations | IBT Europe GmbH | |||||
Customer Concentrations and Accounts Receivable | |||||
Concentration percentage | 10.00% | ||||
Net accounts receivable | Credit concentration | E-Finity | |||||
Customer Concentrations and Accounts Receivable | |||||
Concentration percentage | 12.00% | 18.00% | |||
Net accounts receivable | Credit concentration | Woojin | |||||
Customer Concentrations and Accounts Receivable | |||||
Concentration percentage | 12.00% | ||||
Net accounts receivable | Credit concentration | Cal | |||||
Customer Concentrations and Accounts Receivable | |||||
Concentration percentage | 11.00% | ||||
Net accounts receivable | Credit concentration | Serba | |||||
Customer Concentrations and Accounts Receivable | |||||
Concentration percentage | 10.00% | 20.00% | |||
Net accounts receivable | Credit concentration | Supernova | |||||
Customer Concentrations and Accounts Receivable | |||||
Concentration percentage | 10.00% |
Customer Concentrations and A_3
Customer Concentrations and Accounts Receivable – Accounts Receivable (Details) $ in Thousands | Jun. 05, 2018USD ($)payment | Oct. 13, 2017USD ($)payment | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2015USD ($) |
Distribution and Accounts Receivable Assignment Agreements | |||||||||
Net bad debt expense (recovery) | $ 100 | $ (9,000) | $ 55 | $ (22) | |||||
BPC | |||||||||
Distribution and Accounts Receivable Assignment Agreements | |||||||||
Accounts receivable | 5,200 | $ 5,200 | 5,200 | $ 8,100 | |||||
Total collections on accounts receivable allowance | 1,800 | 1,800 | |||||||
Accounts Receivable Assignment Agreement | Turbine International, LLC | |||||||||
Distribution and Accounts Receivable Assignment Agreements | |||||||||
Total consideration receivable | $ 2,500 | ||||||||
Number of payments to be received | payment | 3 | ||||||||
Bad debt recovery | 100 | $ 1,000 | |||||||
Total collections on accounts receivable allowance | $ 1,100 | $ 1,100 | |||||||
Promissory Note Agreement | Turbine International, LLC | |||||||||
Distribution and Accounts Receivable Assignment Agreements | |||||||||
Total consideration receivable | $ 3,800 | ||||||||
Number of payments to be received | payment | 35 | ||||||||
Term of payments | 3 years | ||||||||
Amended Assignment Agreement | Turbine International, LLC | |||||||||
Distribution and Accounts Receivable Assignment Agreements | |||||||||
Total consideration receivable | $ 1,500 | ||||||||
Number of payments to be received | payment | 5 | ||||||||
Amended Note Agreement | |||||||||
Distribution and Accounts Receivable Assignment Agreements | |||||||||
Payments due | $ 0 | ||||||||
Amended Note Agreement | Turbine International, LLC | |||||||||
Distribution and Accounts Receivable Assignment Agreements | |||||||||
Total consideration receivable | $ 3,800 | ||||||||
Number of payments to be received | payment | 13 | ||||||||
Term of payments | 3 years |
Inventories - Current (Details)
Inventories - Current (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2018 | Mar. 31, 2018 | |
Inventories | ||
Raw materials | $ 19,716 | $ 17,981 |
Work in process | 30 | 111 |
Finished goods | 1,449 | 4,076 |
Total | 21,195 | 22,168 |
Less inventory reserve | (4,609) | (5,494) |
Less non-current portion | (1,109) | (1,041) |
Current portion | $ 15,477 | $ 15,633 |
Weighted average age of noncurrent inventories | 1 year 3 months 18 days |
Inventories - Non-Current (Deta
Inventories - Non-Current (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Inventories | ||
Non-current inventory, 13 to 24 Months | $ 405 | |
Non-current inventory, 25 to 36 Months | 704 | |
Total | $ 1,109 | $ 1,041 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Property, Plant and Equipment | |||||
Total property, plant and equipment, gross | $ 29,182 | $ 29,182 | $ 29,334 | ||
Less, accumulated depreciation | (26,351) | (26,351) | (26,475) | ||
Total property, plant and equipment, net | 2,831 | 2,831 | 2,859 | ||
Depreciation expense | 200 | $ 200 | 400 | $ 400 | |
Machinery, rental equipment, equipment, automobiles and furniture | |||||
Property, Plant and Equipment | |||||
Total property, plant and equipment, gross | 15,295 | 15,295 | 15,481 | ||
Leasehold improvements | |||||
Property, Plant and Equipment | |||||
Total property, plant and equipment, gross | 11,053 | 11,053 | 10,949 | ||
Molds and tooling | |||||
Property, Plant and Equipment | |||||
Total property, plant and equipment, gross | $ 2,834 | $ 2,834 | $ 2,904 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Intangible Assets | |||||
Intangible Assets, Gross | $ 7,706 | $ 7,706 | $ 7,706 | ||
Accumulated Amortization | 7,407 | 7,407 | 7,295 | ||
Intangible Assets, Net | 299 | 299 | 411 | ||
Amortization expense | 100 | $ 100 | 100 | $ 100 | |
Expected future amortization expense of intangible assets | |||||
2019 (remainder of fiscal year) | 112 | 112 | |||
2,020 | 187 | 187 | |||
Intangible Assets, Net | 299 | $ 299 | $ 411 | ||
Manufacturing license | |||||
Intangible Assets | |||||
Weighted Average Amortization Period | 17 years | 17 years | |||
Intangible Assets, Gross | 3,700 | $ 3,700 | $ 3,700 | ||
Accumulated Amortization | 3,700 | $ 3,700 | $ 3,700 | ||
Technology | |||||
Intangible Assets | |||||
Weighted Average Amortization Period | 10 years | 10 years | |||
Intangible Assets, Gross | 2,240 | $ 2,240 | $ 2,240 | ||
Accumulated Amortization | 1,941 | 1,941 | 1,829 | ||
Intangible Assets, Net | 299 | 299 | 411 | ||
Expected future amortization expense of intangible assets | |||||
Intangible Assets, Net | 299 | 299 | 411 | ||
Trade Name and Parts, Service and TA100 Customer Relationships | |||||
Intangible Assets | |||||
Intangible Assets, Gross | 1,766 | 1,766 | 1,766 | ||
Accumulated Amortization | $ 1,766 | $ 1,766 | $ 1,766 | ||
Minimum | Trade Name and Parts, Service and TA100 Customer Relationships | |||||
Intangible Assets | |||||
Weighted Average Amortization Period | 1 year 2 months 12 days | 1 year 2 months 12 days | |||
Maximum | Trade Name and Parts, Service and TA100 Customer Relationships | |||||
Intangible Assets | |||||
Weighted Average Amortization Period | 5 years | 5 years |
Intangible Assets - Solar Turbi
Intangible Assets - Solar Turbines (Details) - Solar - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Intangible Assets | |||||
Years subject to payment of per-unit royalty fees | 17 years | ||||
Royalties earned | $ 10,000 | $ 7,200 | $ 17,100 | $ 13,700 | |
Unpaid earned royalties | $ 10,000 | $ 10,000 | $ 8,000 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock-Based Compensation | ||||
Stock-based compensation expense | $ 224 | $ 153 | $ 451 | $ 307 |
Cost of goods sold | ||||
Stock-Based Compensation | ||||
Stock-based compensation expense | 13 | 18 | 25 | 38 |
Research and development | ||||
Stock-Based Compensation | ||||
Stock-based compensation expense | 6 | 5 | 13 | 12 |
Selling, general and administrative | ||||
Stock-Based Compensation | ||||
Stock-based compensation expense | $ 205 | $ 130 | $ 413 | $ 257 |
Stock-Based Compensation - 2000
Stock-Based Compensation - 2000 Equity Incentive Plan and 2017 Equity Incentive Plan (Details) - shares | Jun. 05, 2018 | Sep. 30, 2018 |
2000 Equity Incentive Plan and 2017 Equity Incentive Plan | Stock options | ||
Stockholders' equity | ||
Vesting period | 4 years | |
Expiration Term | 10 years | |
Portion vesting one year after the issuance date (as a percent) | 25.00% | |
Vesting period after one year of grant | 1 year | |
Portion vesting on first day of each month after one year from the issuance date (as a percent) | 2.083% | |
Vesting period of awards after issuance date | 48 months | |
2000 Plan | ||
Stockholders' equity | ||
Number of shares of common stock reserved for issuance | 1,849,000 | |
2017 Plan | ||
Stockholders' equity | ||
Number of shares of common stock reserved for issuance | 3,000,000 | |
Number of shares of common stock increased under amended and restated plan | 3,000,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Additional disclosure | ||||
Stock-based compensation expense | $ 224,000 | $ 153,000 | $ 451,000 | $ 307,000 |
Stock options | ||||
Shares | ||||
Outstanding at the beginning of the period (in shares) | 212,392 | |||
Granted (in shares) | 0 | 0 | 0 | 0 |
Forfeited, cancelled or expired (in shares) | (2,500) | |||
Outstanding at the end of the period (in shares) | 209,892 | 209,892 | ||
Options fully vested and those expected to vest (in shares) | 209,892 | 209,892 | ||
Options exercisable | 209,892 | 209,892 | ||
Weighted Average Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 20.71 | |||
Forfeited, cancelled or expired (in dollars per share) | 55.20 | |||
Outstanding at the end of the period (in dollars per share) | $ 20.30 | 20.30 | ||
Options fully vested and those expected to vest (in dollars per share) | 20.30 | 20.30 | ||
Exercisable (in dollars per share) | $ 20.30 | $ 20.30 | ||
Weighted Average Remaining Contractual Term (in years) | ||||
Outstanding at the end of the period | 2 years 4 months 24 days | |||
Options fully vested and those expected to vest | 2 years 4 months 24 days | |||
Exercisable | 2 years 4 months 24 days | |||
Additional disclosure | ||||
Stock-based compensation expense | $ 0 | $ 8,000 | $ 0 | $ 17,000 |
Unvested stock option awards (in shares) | 0 | 0 |
Stock-Based Compensation - RSU'
Stock-Based Compensation - RSU's and PRSU's (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jul. 31, 2017 | |
Additional disclosure | ||||||
Stock-based compensation expense | $ 224 | $ 153 | $ 451 | $ 307 | ||
Employee Stock Purchase Plan | ||||||
Weighted Average Grant-Date Fair Value | ||||||
Number of shares available for future grant | 570,000 | 570,000 | 70,000 | |||
Increase in common stock available under the plan | 500,000 | |||||
Restricted stock units and performance restricted stock units | ||||||
Shares | ||||||
Nonvested, balance at the beginning of the period (in shares) | 2,011,611 | |||||
Granted (in shares) | 634,856 | |||||
Vested and issued (in shares) | (465,165) | |||||
Forfeited (in shares) | (32,945) | |||||
Nonvested, balance at the end of the period (in shares) | 2,148,357 | 2,148,357 | ||||
Awards expected to vest (in shares) | 2,148,334 | 2,148,334 | ||||
Weighted Average Grant-Date Fair Value | ||||||
Nonvested restricted stock units outstanding at the beginning of the period (in dollars per share) | $ 0.90 | |||||
Granted (in dollars per share) | 1.36 | |||||
Vested and issued (in dollars per share) | 0.88 | |||||
Forfeited (in dollars per share) | 0.86 | |||||
Nonvested restricted stock units outstanding at the end of the period (in dollars per share) | $ 1.04 | 1.04 | ||||
Awards expected to vest (in dollars per share) | $ 1.04 | $ 1.04 | ||||
Restricted stock units | ||||||
Additional disclosure | ||||||
Stock-based compensation expense | $ 224 | 144 | $ 451 | 287 | ||
Aggregate fair value of restricted stock units vested and issued | 516 | $ 130 | 523 | $ 137 | ||
Unrecognized compensation cost | $ 1,800 | $ 1,800 | ||||
Weighted average period for recognizing compensation cost | 2 years 1 month 6 days | |||||
Weighted Average Grant-Date Fair Value | ||||||
Granted (in dollars per share) | $ 1.14 | $ 0.62 | $ 1.36 | $ 0.67 | ||
Restricted stock units | Awards vesting on the second year anniversary | ||||||
Additional disclosure | ||||||
Vesting period | 2 years | |||||
Awards vesting percentage | 100.00% | |||||
Vesting period of awards after issuance date | 2 years | |||||
Restricted stock units | Awards vesting one-third annually | ||||||
Additional disclosure | ||||||
Vesting period | 3 years | |||||
Awards vesting percentage | 33.33% | |||||
Vesting period of awards after issuance date | 1 year | |||||
Restricted stock units | Awards vesting over four years with one-fourth units vesting one year after the issuance date | ||||||
Additional disclosure | ||||||
Vesting period | 4 years | |||||
Awards vesting percentage | 25.00% | |||||
Vesting period of awards after issuance date | 1 year | |||||
Performance Restricted Stock Units | ||||||
Additional disclosure | ||||||
Stock-based compensation expense | $ 0 | |||||
Aggregate fair value of restricted stock units vested and issued | $ 0 | |||||
Performance goal payment as a percentage of target | 50.00% | 50.00% | ||||
Weighted Average Grant-Date Fair Value | ||||||
Granted (in dollars per share) | $ 1.59 | |||||
Performance Restricted Stock Units | Maximum | ||||||
Additional disclosure | ||||||
Performance goal payment as a percentage of target | 150.00% | 150.00% | ||||
Performance Restricted Stock Units | Three-year performance measurement period | ||||||
Additional disclosure | ||||||
Performance measurement period | 3 years | |||||
Shares | ||||||
Granted (in shares) | 147,327 | |||||
PRSU Program | Two-year performance measurement period | ||||||
Additional disclosure | ||||||
Performance measurement period | 2 years | |||||
PRSU Program | Three-year performance measurement period | ||||||
Additional disclosure | ||||||
Performance measurement period | 3 years | |||||
Restricted Stock Awards | ||||||
Additional disclosure | ||||||
Stock-based compensation expense | $ 1 | $ 3 | ||||
Shares | ||||||
Granted (in shares) | 0 | 1,953 | 0 | 3,969 | ||
Weighted Average Grant-Date Fair Value | ||||||
Granted (in dollars per share) | $ 0.64 | $ 0.63 | ||||
Non-employee director | Restricted stock units | ||||||
Additional disclosure | ||||||
Vesting period | 1 year | |||||
Chief Executive Officer | Restricted stock units | Two-year performance measurement period | ||||||
Additional disclosure | ||||||
Awards vesting percentage | 100.00% | |||||
Vesting period of awards after issuance date | 2 years | |||||
Chief Executive Officer | Performance Restricted Stock Units | Two-year performance measurement period | ||||||
Additional disclosure | ||||||
Performance measurement period | 2 years | |||||
Shares | ||||||
Granted (in shares) | 150,000 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stockholder Rights Plan (Details) | May 06, 2016Vote$ / shares | Sep. 30, 2018$ / shares | Mar. 31, 2018$ / shares |
Stockholder Rights Plan | |||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Series B Junior Participating Preferred Stock | |||
Stockholder Rights Plan | |||
Preferred share purchase right ratio | 1 | ||
Preferred stock conversion basis | 0.001 | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | ||
Purchase price (in dollars per share) | $ 8.76 | ||
Period following public announcement of beneficial ownership acquired by various persons resulting in rights becoming exercisable | 10 days | ||
Period following commencement of tender offer or exchange offer that would result in acquisition of beneficial ownership various persons resulting in rights becoming exercisable | 10 days | ||
Preferred stock dividend minimum if declared | $ 1 | ||
Preferred stock rights ratio over common stock | 1,000 | ||
Number of votes per share | Vote | 1,000 | ||
Ratio of consideration received in event of conversion or exchange transaction | 1,000 | ||
Series B Junior Participating Preferred Stock | Minimum | |||
Stockholder Rights Plan | |||
Beneficial ownership of common stock (as a percent) | 4.99% |
Offerings of Common Stock and_2
Offerings of Common Stock and Warrants and At-the-Market Offering Program (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 13, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Jun. 07, 2018 | Aug. 28, 2015 |
Common stock sold (in shares) | 3,806,243 | |||||
June 2018 Sales Agreement | ||||||
Aggregate offering price for at-the-market offering program | $ 20.7 | $ 20.7 | $ 20.7 | |||
Common stock sold (in shares) | 3,000,000 | 3,700,000 | ||||
Net proceeds from sale of the common stock, after deducting fees and other offering expenses (in dollars) | $ 3.1 | $ 4.1 | ||||
Common stock commissions paid | $ 0.1 | $ 0.1 | ||||
August 2015 Sales Agreement | ||||||
Common stock sold (in shares) | 2,800,000 | 26,000,000 | ||||
Net proceeds from sale of the common stock, after deducting fees and other offering expenses (in dollars) | $ 4 | $ 28.6 | ||||
Common stock commissions paid | $ 0.1 | $ 0.8 | ||||
Maximum | June 2018 Sales Agreement | ||||||
Aggregate offering price for at-the-market offering program | $ 25 | |||||
Maximum | August 2015 Sales Agreement | ||||||
Aggregate offering price for at-the-market offering program | $ 30 | |||||
Series A Warrants | ||||||
Warrants exercised (in shares) | 5,760,000 | |||||
Exercise price (in dollars per share) | $ 0.60 | |||||
Outstanding warrants (in shares) | 2,718,750 | 2,718,750 | 2,718,750 | |||
Series A Warrants, Exercise Price 2.55 | ||||||
Exercise price (in dollars per share) | $ 2.55 | $ 2.55 | $ 2.55 | |||
Issued warrants (in shares) | 2,178,750 | |||||
Series A Warrants, Exercise Price 0.60 | ||||||
Exercise price (in dollars per share) | $ 0.60 | $ 0.60 | $ 0.60 | |||
Issued warrants (in shares) | 540,000 | |||||
Series B Warrants | ||||||
Outstanding warrants (in shares) | 0 | 0 | 0 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Fair Value Measurements | ||
Restricted cash | $ 6,000 | $ 5,000 |
Recurring | Total | ||
Fair Value Measurements | ||
Restricted cash | 6,000 | 5,000 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Measurements | ||
Restricted cash | $ 6,000 | $ 5,000 |
Fair Value Measurements - Oblig
Fair Value Measurements - Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Carrying Value | ||
Fair Value Measurements | ||
Obligations under the Credit Facility | $ 12,496 | $ 8,527 |
Total | ||
Fair Value Measurements | ||
Obligations under the Credit Facility | $ 12,496 | $ 8,527 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) | May 31, 2018USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)agreement | Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) |
Revolving Credit Facility | |||||||
Interest expense | $ 186,000 | $ 98,000 | $ 304,000 | $ 319,000 | |||
Amortization of deferred financing costs | $ 85,000 | 133,000 | |||||
Borrowing rate (as a percent) | 6.30% | 6.30% | |||||
Outstanding borrowings | $ 12,496,000 | $ 12,496,000 | $ 8,527,000 | ||||
Wells Fargo | |||||||
Revolving Credit Facility | |||||||
Number of credit and security agreements | agreement | 2 | ||||||
Bridge Bank | |||||||
Revolving Credit Facility | |||||||
Maximum borrowings as a percent of cash held | 85.00% | 85.00% | |||||
Credit Facility | Wells Fargo | |||||||
Revolving Credit Facility | |||||||
Maximum borrowing capacity under facility | $ 20,000,000 | $ 20,000,000 | |||||
Interest expense | 200,000 | ||||||
Amortization of deferred financing costs | 100,000 | ||||||
Credit Facility | Bridge Bank | |||||||
Revolving Credit Facility | |||||||
Maximum borrowing capacity under facility | $ 12,000,000 | 15,000,000 | 15,000,000 | ||||
Interest expense | 200,000 | 100,000 | 300,000 | 200,000 | |||
Amortization of deferred financing costs | 46,900 | $ 28,000 | 100,000 | $ 46,000 | |||
Variable base rate | prime rate | ||||||
Outstanding borrowings | 12,500,000 | 12,500,000 | |||||
Restricted cash equivalents for credit facility | 6,000,000 | 6,000,000 | |||||
Origination fees | 400,000 | 400,000 | |||||
Amount available for additional borrowing | $ 2,500,000 | $ 2,500,000 | |||||
Facility fee percentage | 0.625% | ||||||
Cash collateral percentage | 42.00% | ||||||
Credit Facility | Bridge Bank | Prime Rate | |||||||
Revolving Credit Facility | |||||||
Variable base rate | prime rate | ||||||
Interest margin on variable rate | 1.50% | 1.00% | |||||
Letter Agreement | Bridge Bank | |||||||
Revolving Credit Facility | |||||||
Maximum borrowing capacity under facility | $ 15,000,000 | ||||||
Restricted cash | $ 6,000,000 | ||||||
Facility fee percentage | 0.50% | ||||||
Cash collateral percentage | 40.00% | ||||||
Fee for early termination | $ 0 | ||||||
Letter Agreement | Bridge Bank | Prime Rate | |||||||
Revolving Credit Facility | |||||||
Interest margin on variable rate | 1.00% | ||||||
Domestic Facility | Bridge Bank | |||||||
Revolving Credit Facility | |||||||
Maximum line of credit advances as a percentage of unrestricted cash and cash collateral | 85.00% | 85.00% |
Accrued Warranty Reserve (Detai
Accrued Warranty Reserve (Details) $ in Thousands | 6 Months Ended |
Sep. 30, 2018USD ($) | |
Accrued Warranty Reserve | |
Maximum period of product warranties | 24 months |
Accrued Warranty Reserve | |
Balance, beginning of the period | $ 1,682 |
Standard warranty provision | 1,251 |
Deductions for warranty claims | (691) |
Balance, end of the period | $ 2,242 |
Revenue Recognition - Revenues
Revenue Recognition - Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 22,174 | $ 19,774 | $ 43,363 | $ 39,014 |
Product, accessories and parts | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 18,627 | 16,005 | 35,712 | 31,496 |
Total from Micro turbine Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 14,876 | 28,509 | ||
Accessories and parts | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,751 | 7,203 | ||
Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,547 | $ 3,769 | 7,651 | $ 7,518 |
Total North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,275 | 23,874 | ||
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 10,938 | 21,812 | ||
Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,186 | 1,795 | ||
All other North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 151 | 267 | ||
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,689 | 6,651 | ||
United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 648 | 2,559 | ||
Columbia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 43 | 2,659 | ||
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,212 | 3,066 | ||
Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 512 | 1,365 | ||
Kuwait | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,161 | 2,161 | ||
All other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 634 | $ 1,028 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances and Practical Expedients (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2018 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Increase (decrease) in balance of deferred revenue | $ 200 | |
Increase in deposits | 400 | |
Changes in deferred revenue | ||
DSS program | 626 | |
Deposits | 1,597 | |
Deferred revenue balance, end of the period | $ 6,781 | $ 6,600 |
Practical expedient to disclose only the value of unsatisfied performance obligations for contracts with an original expected length greater than one year | true | |
Practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period would have been one year or less | true | |
FPP agreements | ||
Disaggregation of Revenue [Line Items] | ||
Increase (decrease) in balance of deferred revenue | $ 1,100 | |
Changes in deferred revenue | ||
FPP Balance, beginning of the period | 3,549 | |
FPP Billings | 8,087 | |
FPP Revenue recognized | (7,078) | |
Balance attributed to FPP contracts | 4,558 | |
Estimated revenue to be recognized in the next 12 months | 3,300 | |
Distributor Support System | ||
Disaggregation of Revenue [Line Items] | ||
Increase (decrease) in balance of deferred revenue | $ (500) |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - Carrier - USD ($) $ in Thousands | Sep. 19, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jul. 25, 2018 | Mar. 31, 2018 |
Other Current Liabilities | |||||||
Payment of royalty settlement | $ 3,000 | ||||||
C200 and C1000 | |||||||
Other Current Liabilities | |||||||
Royalties earned | $ 0 | $ 200 | $ 200 | $ 500 | |||
C200 and C1000 | Accrued expenses | |||||||
Other Current Liabilities | |||||||
Current royalty obligation | $ 200 | ||||||
Second Amendment of Development and License Agreement | |||||||
Other Current Liabilities | |||||||
Royalty-related assets | 2,952 | $ 2,952 | |||||
Amortization period of prepaid royalty | 15 years | ||||||
Second Amendment of Development and License Agreement | Other current assets | |||||||
Other Current Liabilities | |||||||
Royalty-related assets | 124 | $ 124 | |||||
Second Amendment of Development and License Agreement | Other assets | |||||||
Other Current Liabilities | |||||||
Royalty-related assets | $ 2,828 | $ 2,828 | |||||
Second Amendment of Development and License Agreement | C200 | |||||||
Other Current Liabilities | |||||||
Current royalty obligation | $ 3,000 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase and Lease Commitments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Lease Commitments | |||||
Renewal option period | 5 years | ||||
Deferred rent | $ 0.4 | $ 0.4 | $ 0.4 | ||
Rent expense | 0.6 | $ 0.6 | 1.2 | $ 1.1 | |
Inventory | |||||
Commitments and Contingencies | |||||
Commitment to purchase inventories | $ 37.1 | $ 37.1 |
Commitments and Contingencies_2
Commitments and Contingencies - Other Commitments and Legal Matters (Details) $ in Millions | Oct. 18, 2018USD ($) | Jul. 18, 2016action | Dec. 31, 2015complaint |
Legal matters | |||
Number of putative securities class action complaints filed against the Company | complaint | 2 | ||
Number of additional purported shareholder derivative actions filed | action | 2 | ||
Litigation With Regatta Solutions Inc | Minimum | |||
Legal matters | |||
Claim for general and compensatory damages | $ | $ 1.5 |
Net Loss Per Common Share (Deta
Net Loss Per Common Share (Details) - shares shares in Millions | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive stock options and restricted stock units | ||
Net Loss Per Common Share | ||
Antidilutive securities excluded from diluted net loss per common share computations | 2.4 | 0.9 |
Performance Restricted Stock Units | ||
Net Loss Per Common Share | ||
Antidilutive securities excluded from diluted net loss per common share computations | 0.3 | 0 |
Warrants | ||
Net Loss Per Common Share | ||
Antidilutive securities excluded from diluted net loss per common share computations | 2.7 | 10.4 |