Document and Entity Information
Document and Entity Information - $ / shares | 3 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001009759 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-15957 | |
Entity Registrant Name | Capstone Turbine Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4180883 | |
Entity Address, Address Line One | 16640 Stagg Street | |
Entity Address, City or Town | Van Nuys | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91406 | |
City Area Code | 818 | |
Local Phone Number | 734-5300 | |
Entity Listing, Par Value Per Share | $ 0.001 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 73,442,825 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $.001 per share | |
Trading Symbol | CPST | |
Security Exchange Name | NASDAQ | |
Series B Junior Participating Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Series B Junior Participating Preferred Stock Purchase Rights | |
No Trading Symbol Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 24,612 | $ 29,727 |
Accounts receivable, net of allowances of $5,468 at June 30, 2019 and $5,298 at March 31, 2019 | 14,820 | 16,222 |
Inventories, net | 20,481 | 20,343 |
Prepaid expenses and other current assets | 4,407 | 3,818 |
Total current assets | 64,320 | 70,110 |
Property, plant, equipment and rental assets, net | 6,048 | 5,291 |
Non-current portion of inventories | 1,407 | 1,403 |
Intangible assets, net | 131 | 187 |
Other assets | 8,492 | 2,972 |
Total assets | 80,398 | 79,963 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 15,252 | 16,638 |
Accrued salaries and wages | 1,360 | 1,637 |
Accrued warranty reserve | 2,448 | 2,614 |
Deferred revenue | 7,766 | 7,167 |
Current portion of notes payable and lease obligations | 1,181 | 31 |
Total current liabilities | 28,007 | 28,087 |
Deferred revenue - non-current | 1,121 | 1,069 |
Term note payable, net | 27,389 | 27,099 |
Long-term portion of notes payable and lease obligations | 4,836 | 212 |
Other long-term liabilities | 342 | |
Total liabilities | 61,353 | 56,809 |
Commitments and contingencies (Note 13) | ||
Stockholders' Equity: | ||
Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued | ||
Common stock, $.001 par value; 515,000,000 shares authorized, 73,407,734 shares issued and 73,144,573 shares outstanding at June 30, 2019; 71,971,586 shares issued and 71,709,203 shares outstanding at March 31, 2019 | 73 | 72 |
Additional paid-in capital | 905,221 | 903,738 |
Accumulated deficit | (884,477) | (878,884) |
Treasury stock, at cost; 263,162 shares at June 30, 2019 and 262,383 shares at March 31, 2019 | (1,772) | (1,772) |
Total stockholders' equity | 19,045 | 23,154 |
Total liabilities and stockholders' equity | $ 80,398 | $ 79,963 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowances | $ 5,468 | $ 5,298 |
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 | 73,407,734 | 71,971,586 |
Common stock, shares outstanding | 73,144,573 | 71,709,203 |
Treasury stock, shares | 263,162 | 262,383 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue: | ||
Total revenue | $ 19,244 | $ 21,189 |
Cost of goods sold: | ||
Total cost of goods sold | 16,379 | 19,367 |
Gross margin | 2,865 | 1,822 |
Operating expenses: | ||
Research and development | 938 | 932 |
Selling, general and administrative | 6,237 | 5,651 |
Total operating expenses | 7,175 | 6,583 |
Loss from operations | (4,310) | (4,761) |
Other income (expense) | 1 | (14) |
Interest expense | (1,276) | (118) |
Loss before provision for income taxes | (5,585) | (4,893) |
Provision for income taxes | 8 | 4 |
Net loss | $ (5,593) | $ (4,897) |
Net loss per common share-basic and diluted (in dollars per share) | $ (0.08) | $ (0.08) |
Weighted average shares used to calculate basic and diluted net loss per common share (in shares) | 72,578 | 61,762 |
Product, accessories and parts | ||
Revenue: | ||
Total revenue | $ 14,073 | $ 17,085 |
Cost of goods sold: | ||
Total cost of goods sold | 12,232 | 15,630 |
Service | ||
Revenue: | ||
Total revenue | 5,171 | 4,104 |
Cost of goods sold: | ||
Total cost of goods sold | $ 4,147 | $ 3,737 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock | Total |
Balance at Mar. 31, 2018 | $ 57 | $ 889,585 | $ (862,225) | $ (1,658) | $ 25,759 |
Balance (in shares) at Mar. 31, 2018 | 57,062,598 | 145,952 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Purchase of treasury stock | $ (3) | (3) | |||
Purchase of treasury stock (in shares) | 1,682 | ||||
Vested restricted stock awards | 3 | 3 | |||
Vested restricted stock awards (in shares) | 4,688 | ||||
Stock-based compensation | 227 | 227 | |||
Issuance of common stock, net of issuance costs | $ 3 | 4,967 | 4,970 | ||
Issuance of common stock, net of issuance costs (in shares) | 3,466,901 | ||||
Warrants exercised | $ 4 | (4) | |||
Warrants exercised (in shares) | 3,806,243 | ||||
Net loss | (4,897) | (4,897) | |||
Balance at Jun. 30, 2018 | $ 64 | 894,778 | (867,122) | $ (1,661) | 26,059 |
Balance (in shares) at Jun. 30, 2018 | 64,340,430 | 147,634 | |||
Balance at Mar. 31, 2019 | $ 72 | 903,738 | (878,884) | $ (1,772) | 23,154 |
Balance (in shares) at Mar. 31, 2019 | 71,971,586 | 262,383 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Purchase of treasury stock (in shares) | 779 | ||||
Vested restricted stock awards (in shares) | 2,278 | ||||
Stock-based compensation | 262 | 262 | |||
Issuance of common stock, net of issuance costs | $ 1 | 1,221 | 1,222 | ||
Issuance of common stock, net of issuance costs (in shares) | 1,433,870 | ||||
Net loss | (5,593) | (5,593) | |||
Balance at Jun. 30, 2019 | $ 73 | $ 905,221 | $ (884,477) | $ (1,772) | $ 19,045 |
Balance (in shares) at Jun. 30, 2019 | 73,407,734 | 263,162 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (5,593) | $ (4,897) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 373 | 287 |
Amortization of financing costs and discounts | 290 | 38 |
Amortization Of Right Of Use Assets | 359 | |
Reduction in accounts receivable allowances | (3) | |
Inventory provision | 220 | 137 |
Provision for warranty expenses | 205 | 397 |
Loss on disposal of equipment | 7 | |
Stock-based compensation | 262 | 227 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,402 | 84 |
Inventories | (363) | (621) |
Prepaid expenses, other current assets and other assets | (459) | (2,324) |
Accounts payable and accrued expenses | (1,864) | 61 |
Accrued salaries and wages and long term liabilities | (276) | (247) |
Accrued warranty reserve | (372) | (218) |
Deferred revenue | 651 | 1,054 |
Net cash used in operating activities | (5,165) | (6,018) |
Cash Flows from Investing Activities: | ||
Expenditures for property, equipment and rental assets | (977) | (163) |
Net cash used in investing activities | (977) | (163) |
Cash Flows from Financing Activities: | ||
Net proceeds from revolving credit facility | 1,497 | |
Repayment of notes payable and lease obligations | (195) | (125) |
Cash used in employee stock-based transactions | (1) | (3) |
Net proceeds from issuance of common stock and warrants | 1,223 | 4,973 |
Net cash provided by financing activities | 1,027 | 6,342 |
Net increase (decrease) in Cash, Cash Equivalents and Restricted Cash | (5,115) | 161 |
Cash, Cash Equivalents and Restricted Cash, Beginning of Year | 29,727 | 19,408 |
Cash, Cash Equivalents and Restricted Cash, End of Year | 24,612 | 19,569 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid during the period for: Interest | 607 | 82 |
Cash paid during the period for: Income taxes | 15 | $ 4 |
Supplemental Disclosures of Non-Cash Information: | ||
Acquisition of property and equipment through accounts payable | 93 | |
Renewal of insurance contracts which was financed by notes payable | $ 536 |
Business and Organization
Business and Organization | 3 Months Ended |
Jun. 30, 2019 | |
Business and Organization | |
Business and Organization | CAPSTONE TURBINE CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENT (Unaudited) 1. Business and Organization Capstone Turbine Corporation (the “Company”) develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation and distribution networks applications, including energy efficient cogeneration combined heat and power (“CHP”), integrated combined heat and power (“ICHP”), and combined cooling, heat and power (“CCHP”), as well as renewable energy, natural resources and critical power supply applications. Microturbines allow customers to produce power on-site in parallel with the electric grid or stand-alone when no utility grid is available. Several technologies are used to provide “on-site power generation” (also called “distributed generation”) such as reciprocating engines, solar photovoltaic power (“PV”), wind turbines and fuel cells. Our 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. In addition, the Company’s microturbines have been used as battery charging generators for hybrid electric vehicles and to provide power to a vessel’s electrical loads in marine applications. We sell microturbine units, components and accessories, as well as offer long-term microturbine rentals. We also remanufacture microturbine engines and provide new and remanufactured aftermarket spare parts, accessories, services, and comprehensive long-term service contracts for up to 20 years. The Company was organized in 1988 and has been commercially producing its microturbine generators since 1998. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2019 | |
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, 2019 was derived from audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2019. 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 2019. 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 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 2019 filed with the SEC on June 11, 2019, that have had a material impact on the Company's condensed consolidated financial statements and related notes, except for the accounting policy for lease recognition as a result of the adoption of Accounting Standards Update (“ASU”) No. 2016-02, as discussed in Note 3—Recently Issued Accounting Standards. Evaluation of Ability to Maintain Current Level of Operations In connection with preparing the condensed consolidated financial statements for the first quarter of Fiscal 2020, 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 first quarter of Fiscal 2020 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 $5.6 million and used cash in operating activities of $5.2 million for the first quarter of Fiscal 2020. The Company’s working capital requirements during the first quarter of Fiscal 2020 were in line with management’s expectations, which included higher inventory and accounts payable payments, offset by lower accounts receivable due to lower revenue in the three months ended June 30, 2019. The Company’s net loss expanded during the first quarter of Fiscal 2020 primarily because of lower revenue from microturbine products and higher interest expense. As of June 30, 2019, the Company had cash and cash equivalents of $24.6 million, and outstanding debt of $30.0 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). 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, the fully diluted ownership percentages of existing stockholders will be reduced. In addition, any equity 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 funds received under the note purchase agreement, 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 our first quarter of Fiscal 2020 financial statements. Basis for Consolidation The condensed 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 | 3 Months Ended |
Jun. 30, 2019 | |
Recently Issued Accounting Standards | |
Recently Issued Accounting Standards | 3. Recently Issued Accounting Standards Adopted 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. On April 1, 2019, the Company adopted this standard. See Note 16—Leases for additional discussion of the impact of the adoption of ASU 2016-02. In 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 adopted ASU 2018-07 on April 1, 2019 and it did not have a material impact on the Company’s condensed consolidated financial statements. 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 adopted Release No. 33-10532 on April 1, 2019 and it did not have a material impact on the Company’s financial disclosures. |
Customer Concentrations and Acc
Customer Concentrations and Accounts Receivable | 3 Months Ended |
Jun. 30, 2019 | |
Customer Concentrations and Accounts Receivable | |
Customer Concentrations and Accounts Receivable | 4. Customer Concentrations and Accounts Receivable Sales to E-Finity Distributed Generation, LLC (“E-Finity”) and Cal Microturbine (“CAL”), two of the Company’s domestic distributors, accounted for 12% and 10%, respectively, of revenue for the first quarter of Fiscal 2020. Sales to Warren CAT, a direct sale to a domestic end-use customer, Supernova Energy Services SAS (“Supernova”), one of the Company’s Latin American distributors, and E-Finity, accounted for 18%, 12% and 10%, respectively, of revenue for the first quarter of Fiscal 2019. Additionally, Innovative Energy Company Limited, one of Company’s Jamaican distributors, and DTC Soluciones S.A. de C.V. (“DTC”), one of the Company’s Mexican distributors, accounted for 12% and 11%, respectively, of net accounts receivable as of June 30, 2019. Reliable Secure Power Systems, (“RSP”), one of the Company’s domestic distributors and E-Finity, accounted for 14% and 10%, r espectively, of net accounts receivable as of March 31, 2019. 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 $4.8 million as of June 30, 2019, and this balance was fully reserved. 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. 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. As of June 30, 2019, 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 Amended Assignment Agreement. The payments of $0.4 million and $0.3 million, due March 20, 2019 and June 20, 2019, respectively, under the Amended Assignment Agreement, have not been received at the time of this filing. The Company recorded a net bad debt recovery of approximately $2,800 during the first quarter of Fiscal 2019. As of March 31, 2015, the Company had an amount owed of approximately $8.1 million by BPC. As of June 30, 2019, the Company cumulatively collected approximately $1.8 million from BPC on their accounts receivable, which has been previously reserved. The Company cumulatively collected approximately $1.5 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 $4.8 million as of June 30, 2019. |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and March 31, 2019 (in thousands): June 30, March 31, 2019 2019 Raw materials $ 23,877 $ 24,426 Work in process 93 — Finished goods 1,870 1,207 Total 25,840 25,633 Less inventory reserve (3,952) (3,887) Less non-current portion (1,407) (1,403) Current portion $ 20,481 $ 20,343 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 June 30, 2019 is 1.2 years. The Company expects to use the non-current portion of the inventories on hand as of June 30, 2019 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 $ 635 25 to 36 months 772 Total $ 1,407 |
Property, Plant and Equipment a
Property, Plant and Equipment and Rental Assets | 3 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment and Rental Assets | |
Property, Plant, Equipment and Rental Assets | 6. Property, Plant, Equipment and Rental Assets Property, plant, equipment and rental assets consisted of the following as of June 30, 2019 and March 31, 2019 (in thousands): June 30, March 31, 2019 2019 Machinery, equipment, automobiles and furniture $ 15,577 $ 15,344 Leasehold improvements 11,079 11,074 Molds and tooling 3,003 2,893 Rental assets 3,539 2,818 33,198 32,129 Less, accumulated depreciation (27,150) (26,838) Total property, plant, equipment and rental assets, net $ 6,048 $ 5,291 During the first quarter of Fiscal 2020, the Company deployed approximately $0.7 million of its C1000 Signature Series systems under its factory rental program. The Company regularly reassesses the useful lives of property and equipment and retires assets no longer in service. Depreciation expense for property, equipment and rental assets was $0.3 million and $0.2 million for the first quarter of Fiscal 2020 and 2019, respectively. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Jun. 30, 2019 | |
Intangible Assets | |
Intangible Assets | 7. Intangible Assets Intangible assets consisted of the following as of June 30, 2019 and March 31, 2019 (in thousands): June 30, 2019 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 2,109 131 Trade name & parts, service and TA100 customer relationships 1.2 to 5 years 1,766 1,766 — Total $ 7,706 $ 7,575 $ 131 March 31, 2019 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 2,053 187 Trade name & parts, service and TA100 customer relationships 1.2 to 5 years 1,766 1,766 — Total $ 7,706 $ 7,519 $ 187 Amortization expense for the intangible assets was $0.1 million during the first quarter of each of Fiscal 2020 and 2019, respectively. Expected future amortization expense of intangible assets as of June 30, 2019 is as follows (in thousands): Amortization Year Ending March 31, Expense 2020 (remainder of fiscal year) $ 131 Total expected future amortization $ 131 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 $7,200 and $7,100 were earned by Solar for the first quarter of Fiscal 2020 and 2019, respectively. Earned royalties of approximately $33,300 and $26,100 were unpaid as of June 30, 2019 and March 31, 2019, respectively, and are included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 2019 | |
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 first quarter of Fiscal 2020 and 2019 (in thousands): Three Months Ended June 30, 2019 2018 Cost of goods sold $ 18 $ 12 Research and development 10 7 Selling, general and administrative 234 208 Stock-based compensation expense $ 262 $ 227 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. As of June 30, 2019, there were 2,215,374 shares available for future grants under the 2017 Plan. Stock Options The Company issued stock options under the 2000 Plan and can issue 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 first quarter of Fiscal 2020 is as follows: Weighted- Average Weighted- Remaining Aggregate Average Contractual Intrinsic Shares Exercise Price Term Value (in years) Options outstanding at March 31, 2019 174,944 $ 20.94 Granted — $ — Exercised — $ — Forfeited, cancelled or expired (33,500) $ 16.21 Options outstanding at June 30, 2019 141,444 $ 22.05 — Options fully vested at June 30, 2019 and those expected to vest beyond June 30, 2019 141,444 $ 22.05 — Options exercisable at June 30, 2019 141,444 $ 22.05 — Black-Scholes Model Valuation Assumptions There were no stock options granted during either of the first quarters of Fiscal 2020 or 2019. There was no expense associated with stock options during the first quarters of Fiscal 2020 or 2019. There were no unvested stock option awards as of June 30, 2019. Restricted Stock Units and Performance Restricted Stock Units The Company issued restricted stock units under the 2000 Plan and issued 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, 2019 2,217,433 $ 1.02 Granted 905,848 0.59 Vested and issued (2,278) 12.80 Forfeited (36,329) 0.85 Nonvested restricted stock units outstanding at June 30, 2019 3,084,674 0.89 Restricted stock units expected to vest beyond June 30, 2019 3,084,651 $ 0.89 The following table provides additional information on restricted stock units and performance restricted stock units for the Company’s first quarter of Fiscal 2020 and 2019: Three Months Ended June 30, 2019 2018 Restricted stock compensation expense (in thousands) $ 262 $ 227 Aggregate fair value of restricted stock units vested and issued (in thousands) $ 2 $ 7 Weighted average grant date fair value of restricted stock units granted during the period $ 0.59 $ 1.59 As of June 30, 2019, there was approximately $1.5 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 1.8 years. The Company’s 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 first quarter of Fiscal 2020, the Company granted 301,356 PRSUs with a three-year performance measurement period and the criteria measured by the Company’s cash flow from operations and aftermarket sales absorption. The target PRSU awards for each participant, will be paid upon achievement of the target level of performance for cash flow from operations 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. The weighted average per share grant date fair value of PRSUs granted during the first quarter of Fiscal 2020 was $0.89. However, based on the Company’s assessment as of June 30, 2019 that the PRSU threshold for the first performance measurement likely would not be met, the fair value of the PRSU awards were determined to be zero and no compensation expense was recorded or recognized during the first quarter of Fiscal 2020. 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 to employees and non-employee directors. There were no restricted stock awards granted during the first quarter of Fiscal 2020 or 2019. No expense was recorded associated with its restricted stock awards during the first quarter of Fiscal 2020 or 2019. For each term of the Board of Directors (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. The maximum amount that an employee can contribute during a purchase right period is $25,000 or 15% of the employee’s regular compensation. Under the ESPP, the exercise price of a purchase right is 95% of the fair market value of such shares on the last day of the purchase right period. The fair market value of the stock is its closing price as reported on the Nasdaq Capital Market on the day in question. During the first quarter of Fiscal 2019, the Company issued a total of 1,012 shares of stock to regular full and part-time employees or officers of the Company who elected to participate in the ESPP. As of June 30, 2019, there were 497,909 shares available for future grant under the ESPP. Stockholder Rights Plan On May 6, 2019, the Company’s Board of Directors (the “Board”), declared a dividend of one right (a “New Right”) for each of the Company’s issued and outstanding shares of common stock, $0.001 par value per share (“Common Stock”). The dividend was paid to the stockholders of record at the close of business on May 16, 2019 (the “Record Date”). Each New Right entitles the registered holder, subject to the terms of the NOL Rights Agreement (as defined below), to purchase from the Company one one-thousandth of a share of the Company’s Series B Junior Participating Preferred Stock (the “Preferred Stock”) at a price of $5.22 (the “Exercise Price”), subject to certain adjustments. The description and terms of the New Rights are set forth in the Rights Agreement dated as of May 6, 2019 (the “NOL Rights Agreement”) between the Company and Broadridge Financial Solutions, Inc., as Rights Agent (the “Rights Agent”). The NOL Rights Agreement replaces the Company’s Rights Agreement, dated May 6, 2016, by and between the Company and Broadridge Financial Solutions, Inc., as successor-in-interest to Computershare Inc., as rights agent (the “Original Rights Agreement”). The Original Rights Agreement, and the rights thereunder to purchase fractional shares of Preferred Stock, expired at 5:00 p.m., New York City time, on May 6, 2019 and the NOL Rights Agreement was entered into immediately thereafter. 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, as amended (the “Tax Code”). 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 Tax Code, 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 Tax Code by (i) discouraging any person or group from becoming a 4.9% shareholder and (ii) discouraging any existing 4.9% shareholder from acquiring additional shares of the Company’s stock. The New 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 have, become an “Acquiring Person,” which is defined as a person or group of affiliated or associated persons who, at any time after the date of the NOL Rights Agreement, have acquired, or obtained the right to acquire, beneficial ownership of 4.9% 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 Securities 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. With respect to certificates representing shares of Common Stock outstanding as of the Record Date, until the Distribution Date, the New Rights will be evidenced by such certificates for shares of Common Stock registered in the names of the holders thereof, and not by separate Rights Certificates, as described further below. With respect to book entry shares of Common Stock outstanding as of the Record Date, until the Distribution Date, the New Rights will be evidenced by the balances indicated in the book entry account system of the transfer agent for the Common Stock. Until the earlier of the Distribution Date and the Expiration Date, as described below, the transfer of any shares of Common Stock outstanding on the Record Date will also constitute the transfer of the New Rights associated with such shares of Common Stock. As soon as practicable after the Distribution Date, separate certificates evidencing the New Rights (“Right Certificates”) will be mailed to holders of record of the Common Stock as of the close of business on the Distribution Date, and such Right Certificates alone will evidence the New Rights. The New Rights, which are not exercisable until the Distribution Date, will expire prior to the earliest of (i) May 6, 2022 or such later day as may be established by the Board prior to the expiration of the New 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 New Rights are redeemed pursuant to the NOL Rights Agreement; (iii) the time at which the New Rights are exchanged pursuant to the NOL Rights Agreement; (iv) the time at which the New Rights are terminated upon the occurrence of certain transactions; (v) the close of business on the first day after the Company’s 2019 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 Company’s 2019 annual meeting of stockholders; (vi) the close of business on the effective date of the repeal of Section 382 of the Tax Code, if the Board 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, (the earliest of (i), (ii), (iii), (iv), (v), (vi) and (vii) is referred to as the “Expiration Date”). Each share of 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 aggregate quarterly dividend declared per share of Common Stock since the immediately preceding quarterly dividend payment date for the Common Stock (or, with respect to the first quarterly dividend payment on the Common Stock, since the first issuance of the Preferred Stock). Each share of 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 Preferred Stock will be entitled to receive 1,000 times the amount received per one share of Common Stock. |
Offerings of Common Stock and W
Offerings of Common Stock and Warrants and At-the-Market Offering Program | 3 Months Ended |
Jun. 30, 2019 | |
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 At-the-market offerings 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 three months ended June 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 June 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. 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 June 30, 2019, the Company issued 1.4 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 $1.2 million after deducting commissions paid of approximately $44,300. As of June 30, 2019, approximately $16.5 million remained available for issuance with respect to this at-the-market offering program. Warrants 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 June 30, 2019, 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 of common stock, and have an expiration date of October 25, 2021, and 540,000 Series A warrants with anti-dilution provisions were issued with an initial exercise price of $1.34 per share of common stock, and have an expiration date of April 22, 2021. As of June 30, 2019, the 540,000 Series A warrants with anti-dilution provisions had an exercise price of $0.57 per share of common stock. On February 4, 2019, the Company sold to Goldman Sachs & Co. LLC (the “Holder”), a Purchase Warrant for Common Shares (the “Warrant”) pursuant to which the Holder may purchase shares of the Company’s common stock, par value $0.001 per share (the “Common Shares”) in an aggregate amount of up to 4,046,337 shares (the “Warrant Shares”). The Warrant was sold to the Holder at a purchase price of $150,000, in a private placement exempt from registration under the Securities Act. The Warrant may be exercised by the Holder at any time after August 4, 2019 at an exercise price equal to $0.8859 and will expire on February 4, 2024. The Warrant contains standard adjustment provisions in the event of additional stock issuances below the exercise price of the warrant, stock splits, combinations, rights offerings and similar transactions. The value of the Warrant was $2.3 million, and has been classified as an equity instrument in additional paid in capital in our consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2019 | |
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. Basis for Valuation The carrying values reported in the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair values because of the immediate or short-term maturities of these financial instruments. The term note payable has been recorded net of a discount based on the fair value of the associated warrant and capitalized debt issuance costs. The carrying values and estimated fair values of these obligations are as follows (in thousands): As of As of June 30, 2019 March 31, 2019 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Term note payable $ 27,389 $ 30,000 $ 27,099 $ 30,000 |
Term Note Payable
Term Note Payable | 3 Months Ended |
Jun. 30, 2019 | |
Term Note Payable | |
Term Note Payable | 11. Term Note Payable On February 4, 2019 (the “Closing Date”), we entered into a Note Purchase Agreement (the “Note Purchase Agreement”), by and among us, certain subsidiaries of us party thereto as guarantors, Goldman Sachs Specialty Lending Holdings, Inc. and any other purchasers party thereto from time to time (collectively, the “Purchaser”) and Goldman Sachs Specialty Lending Holdings, Inc. Under the Note Purchase Agreement, we sold to the Purchaser $30.0 million aggregate principal amount of senior secured notes (the “Notes”), which bear interest at a rate of 13.0% per annum and payable quarterly on March 31, June 30, September 30 and December 31 of each year until maturity. The entire principal amount of the Notes is due and payable on February 4, 2022 (the “Maturity Date”). The Notes do not amortize and the entire principal balance is due in a single payment on the Maturity Date. As of June 30, 2019, $30.0 million in borrowings were outstanding under the three-year term note. Obligations under the Note Purchase Agreement are secured by all of our assets, including intellectual property and general intangibles. The Note Purchase Agreement contains customary covenants, including, among others, covenants that restrict our ability to incur debt, grant liens, make certain investments and acquisitions, pay dividends, repurchase equity interests, repay certain debt, amend certain contracts, enter into affiliate transactions and asset sales or make certain equity issuances (including equity issuances that would cause an ownership change within the meaning of Section 382 of the Internal Revenue Code), and covenants that require us to, among other things, provide annual, quarterly and monthly financial statements, together with related compliance certificates, maintain its property in good repair, maintain insurance and comply with applicable laws. The financial covenants of the Note Purchase Agreement require the Company not to exceed specified levels of losses relative to its financial model, beginning with the fiscal quarter ending September 30, 2020. Additionally, we shall not permit our minimum consolidated liquidity, which consists of our cash and cash equivalents, to be less than $12.0 million through February 4, 2020, and $9.0 million thereafter. As of June 30, 2019, the Company was in compliance with the covenants contained in the Note Purchase Agreement. The three-year term note has been recorded net of a discount based on the fair value of the associated common stock warrants and debt issuance costs totaling $2.6 million. Amortization of the debt discount and debt issuance costs was $0.3 million for the three months ended June 30, 2019, based on an effective interest rate, and has been recorded as interest expense in the condensed consolidated statements of operations. Interest expense related to the term note payable during the three months ended June 30, 2019 was $1.3 million, which includes $0.3 million in amortization of debt issuance costs. When we entered into the Note Purchase Agreement the existing credit facility with Bridge Bank was paid in full. As such, there was no interest expense related to the credit facility during the first quarter of Fiscal 2020. Interest expense related to the credit facility during the three months ended June 30, 2018 was $0.1 million, which includes $38,500 in amortization of debt issuance costs. |
Accrued Warranty Reserve
Accrued Warranty Reserve | 3 Months Ended |
Jun. 30, 2019 | |
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 first quarter of Fiscal 2020 are as follows (in thousands): Balance, beginning of the period $ 2,614 Standard warranty provision 205 Accrual related to reliability repair programs — Deductions for warranty claims (371) Balance, end of the period $ 2,448 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Jun. 30, 2019 | |
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 Sheets. 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 Operations. The deferred revenue relating to the annual maintenance service contracts is recognized in the Condensed Consolidated Statement of Operations 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 first quarter of Fiscal 2020 (in thousands): Three Months Ended June 30, 2019 Microturbine Products $ 10,086 Accessories and Parts 3,987 Total Product, Accessories and Parts 14,073 Service 5,171 Total Revenue $ 19,244 Following is the geographic revenue information based on the primary operating location of the Company’s customers for the first quarter of Fiscal 2020 (in thousands): Three Months Ended June 30, 2019 United States $ 7,629 Mexico 1,241 All other North America 673 Total North America 9,543 Russia 1,455 All other Europe 2,549 Total Europe 4,004 Asia 1,528 Australia 1,670 All other 2,499 Total Revenue $ 19,244 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 June 30, 2019, the balance of deferred revenue was approximately $8.9 million compared to $8.2 million as of March 31, 2019. This overall increase in the balance of deferred revenue of $0.7 million during the first quarter of Fiscal 2020 was comprised of increases in deferred revenue attributable to FPP contracts of $0.1 million and deferred revenue attributable to deposits of $1.0 million, these increases were offset by a decrease in deferred revenue attributable to the Distributor Support System (“DSS program”) of $0.4 million. Changes in deferred revenue during the first quarter of Fiscal 2020 are as follows (in thousands): FPP Balance, beginning of the period $ 4,881 FPP Billings 4,288 FPP Revenue recognized (4,199) Balance attributed to FPP contracts 4,970 DSS Program 1,324 Deposits 2,593 Deferred revenue balance, end of the period $ 8,887 Deferred revenue attributed to FPP contracts represents the unearned portion of our agreements. FPP agreements are generally paid quarterly in advance with revenue recognized on a straight line basis over the contract period. Deposits are primarily non-refundable cash payments from distributors for future orders. As of June 30, 2019, approximately $5.0 million of revenue is expected to be recognized from remaining performance obligations for FPP service contracts. The Company expects to recognize revenue on approximately $3.9 million of these remaining performance obligations over the next 12 months and the balance of $1.1 million will be recognized thereafter. Revenue from remaining performance obligations for professional services contracts as of June 30, 2019 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 Assets
Other Assets | 3 Months Ended |
Jun. 30, 2019 | |
Other Assets | |
Other Assets | 14. Other Assets 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. During the three months ended September 30, 2013, we reached our repayment threshold level and the fixed rate royalty was reduced by 50%. 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 $0.3 million in royalties for C200 and C1000 Series system sales during the first quarter of Fiscal 2020 and 2019, respectively. There were no unpaid, earned royalties as of June 30, 2019. 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. A 15-year amortization period is the minimum expected life cycle of the current generation of product. 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): June 30, 2019 Other current assets $ 124 Other assets 2,740 Royalty-related assets $ 2,864 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | 15. Commitments and Contingencies Purchase Commitments As of June 30, 2019, the Company had firm commitments to purchase inventories of approximately $30.7 million through Fiscal 2022. 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 See Note 16—Leases. 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. 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 is 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, which did not result in a settlement. On November 16, 2018, after further settlement discussions, the parties advised the Court that they had reached an agreement in principle to settle the action in its entirety. The agreement in principle is subject to several conditions, including the execution of a stipulation of settlement that is satisfactory to all parties, and preliminary and final approval from the court, among other things. Plaintiffs filed a motion seeking preliminary approval of the proposed settlement on April 12, 2019, and filed supplementary declarations in support of the motion on May 2, 2019. Preliminary approval of the settlement was granted on May 17, 2019, with a final settlement approval hearing set for November 15, 2019. If the settlement is finalized and approved by the Court, the Company’s insurance carrier will fund the settlement amount. The Company has not recorded any liability as of June 30, 2019 since any potential loss is not considered material as its insurance carrier will fund the settlement amount. Federal Individual Securities Action An individual securities complaint was filed against the Company, its 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 the Company’s 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 asserted claims for common law fraud and negligent misrepresentation, against the Company, Mr. Jamison, and unidentified individual defendants. The Amended Complaint demanded 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. On November 29, 2018, the Court granted plaintiffs’ motion for leave to amend and plaintiffs filed their Second Amended Complaint, which asserted claims for common law fraud, negligent misrepresentation, and violation of California Civil Code section 25401 against the Company, Mr. Jamison, and unidentified individual defendants. On December 20, 2018, defendants filed their answer to the Second Amended Complaint. On June 6, 2019, the parties reached a confidential settlement of the action and the suit was dismissed with prejudice on July 1, 2019. The Company has not recorded any liability as of June 30, 2019 as its insurance carrier will fund the settlement amount. 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 originally scheduled for July 29, 2019 is now scheduled for September 27, 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 originally scheduled for July 29, 2019 is now scheduled for September 27, 2019. The parties in both of the above state derivative lawsuits participated in a mediation held on September 24, 2018. On May 6, 2019, the parties reached an agreement in principle regarding corporate governance reforms to be implemented in settlement of the action. The parties have not yet formalized a settlement, however, which is subject to several conditions, including the execution of a stipulation of settlement that is satisfactory to all parties, negotiation regarding an award of attorney fees, and preliminary and final approval from the court, among other things. Settlement discussions are ongoing. The Company has not recorded any liability as of June 30, 2019 as its insurance carrier will fund the settlement amount. 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. On May 6, 2019, the parties reached an agreement in principle regarding corporate governance reforms to be implemented in settlement of the action. The parties have not yet formalized a settlement, however, which is subject to several conditions, including the execution of a stipulation of settlement that is satisfactory to all parties, negotiation regarding an award of attorney fees, and preliminary and final approval from the court, among other things. Settlement discussions are ongoing. We have not recorded any liability as of June 30, 2019 as our insurance carrier will fund the settlement amount. Capstone Turbine Corporation v. Regatta Solutions, Inc. On August 23, 2018, the Company initiated arbitration proceedings against its former distributor, Regatta Solutions, Inc. (“Regatta”), with the American Arbitration Association, under the following caption: Capstone Turbine Corp. v. Regatta Solutions, Inc., Case No. 01-18-0003-0860 (the “Capstone-Regatta Arbitration”). The Company has alleged claims against Regatta for breach of contract and unjust enrichment relating to the parties’ prior distributor relationship, which terminated at the end of March of 2018, and the related wind-down 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 relations, relating to the parties’ agreement to wind-down relations and Regatta’s purported sales efforts 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 has filed and served an answering statement denying Regatta’s counterclaims and asserting several affirmative defenses. Also on October 18, 2018, Regatta filed a lawsuit in the Superior Court of the State of California, County of Orange, alleging two counts of fraud, and one count of interference with contractual relations, individually against Mr. James Crouse, Executive Vice President of Sales for the Company, arising out of the same allegations made in Regatta’s counterclaim. As remedies for these alleged claims, Regatta again sought 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. On December 14, 2018, Regatta stipulated and agreed to arbitrate its claims against Mr. James Crouse and dismissed him from the Superior Court action. On January 16, 2019, the parties participated in a mediation that did not resolve the dispute. The parties continued their settlement discussions and held a follow-on mediation on April 24, 2019 at which point the parties did come to a resolution of the matter. The Company is currently evaluating the impact of the settlement on its financial statements. The Company has not recorded any liability as of June 30, 2019, as there will be no loss incurred as a result of the settlement. Capstone Turbine Corporation v. Energy Systems, Inc. On August 17, 2018 Capstone 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, we are seeking declaratory relief and attorney’s fees, interest and costs. On August 22, 2018, Energy Systems filed a claim against us 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 parties entered into settlement discussions and on April 29, 2019 participated in mediation to resolve the dispute. The mediation was successful and the parties are currently drafting a more formal settlement agreement that upon execution will require the respective matters to be dismissed. The Company has not recorded any liability as of June 30, 2019 as any potential loss is not considered material. |
Leases
Leases | 3 Months Ended |
Jun. 30, 2019 | |
Leases | |
Leases | 16. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to require lessees to recognize most leases on the balance sheet, while recognition on the statement of operations will remain similar to current lease accounting. The ASU requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use (ROU) asset on the balance sheet. The guidance requires disclosure of key information about leasing arrangements that is intended to give financial statement users the ability to assess the amount, timing and potential uncertainty of cash flows related to leases. The ASU also eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. The Company adopted the new standard on April 1, 2019 using the modified retrospective approach. The Company has elected to apply the transition method that allows companies to continue applying the guidance under the lease standard in effect at that time in the comparative periods presented in the consolidated financial statements and recognize a cumulative-effect adjustment to the opening balance of retained earnings on the date of adoption. The Company also elected the “package of practical expedients”; which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs; the use of hindsight in order to calculate the lease term of existing assets; the use of the portfolio approach on similar assets; and has elected not to separate lease and non-lease assets. Results for reporting periods beginning after April 1, 2019 are presented under the new standard, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. Upon adoption of the new lease standard, on April 1, 2019, the Company recorded approximately $5.5 million of right-of-use assets, adjusted for the reclassification of deferred rent and lease incentive of approximately $0.3 million, and $5.8 million of operating lease liabilities, within the Company’s condensed consolidated balance sheets upon adoption. The adoption of this standard did not have an impact on the Company’s condensed consolidated statement of operations or cash flows and did not result in a cumulative catch-up adjustment to the opening balance of retained earnings. Financed leases are not material to the Company’s condensed consolidated financial statements and are therefore not included in the disclosures. 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. Lease expense is recognized on a straight-line basis over the term of the lease. The components of lease expense were as follows for the first quarter of Fiscal 2020 (in thousands): Three Months Ended June 30, 2019 Operating lease cost $ 481 Rental expense for operating leases classified under the previous accounting standard, Accounting Standards Codification (“ASC”) Topic 840, for the first quarter of Fiscal 2019 was approximately $0.6 million. Supplemental balance sheet information related to the leases was as follows (in thousands): Operating Leases June 30, 2019 Operating lease right-of-use assets $ 5,117 Total operating lease right-of-use assets $ 5,117 Operating lease liability, current $ 789 Operating lease liability, non-current 4,643 Total operating lease liabilities $ 5,432 The Company records its right-of-use assets within other assets (non-current) and its operating lease liabilities within current and long-term portion of notes payable and lease obligations. Supplemental cash flow information related to the leases was as follows (in thousands): Three Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 506 Other supplemental operating lease information consists of the following: Weighted average remaining lease life 8 years Weighted average discount rate Maturities of operating lease liabilities as of June 30, 2019 were as follows (in thousands): Operating Year Ending March 31, Leases 2020 (remainder of fiscal year) $ 998 2021 978 2022 961 2023 987 2024 1,014 2025 1,043 Thereafter 3,002 Total lease payments $ 8,983 Less: imputed interest (3,551) Present value of operating lease liabilities $ 5,432 |
Net Loss Per Common Share
Net Loss Per Common Share | 3 Months Ended |
Jun. 30, 2019 | |
Net Loss Per Common Share | |
Net Loss Per Common Share | 17. 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 June 30, 2019 which would make these instruments anti-dilutive. As of June 30, 2019 and 2018, the number of anti-dilutive stock options and restricted stock units excluded from diluted net loss per common share computations was approximately 3.2 million and 2.5 million, respectively. As of June 30, 2019 and 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. As of June 30, 2019 and 2018, the number of warrants excluded from diluted net loss per common share computations was approximately 6.8 million and 2.7 million, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2019 | |
Subsequent Events | |
Subsequent Events | 18. Subsequent Events The Company has evaluated all subsequent events through the filing date of this Form 10-Q with the SEC, to ensure that this filing includes appropriate disclosure of events both recognized in the financial statements as of June 30, 2019, and events which occurred subsequently but were not recognized in the financial statements. There were no subsequent events which required recognition, adjustment to or disclosure in the financial statements. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and March 31, 2019 (in thousands): June 30, March 31, 2019 2019 Raw materials $ 23,877 $ 24,426 Work in process 93 — Finished goods 1,870 1,207 Total 25,840 25,633 Less inventory reserve (3,952) (3,887) Less non-current portion (1,407) (1,403) Current portion $ 20,481 $ 20,343 |
Schedule of expected usage for non-current inventory | The Company expects to use the non-current portion of the inventories on hand as of June 30, 2019 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 $ 635 25 to 36 months 772 Total $ 1,407 |
Property, Plant and Equipment_2
Property, Plant and Equipment and Rental Assets (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment and Rental Assets | |
Schedule of property, plant and equipment | Property, plant, equipment and rental assets consisted of the following as of June 30, 2019 and March 31, 2019 (in thousands): June 30, March 31, 2019 2019 Machinery, equipment, automobiles and furniture $ 15,577 $ 15,344 Leasehold improvements 11,079 11,074 Molds and tooling 3,003 2,893 Rental assets 3,539 2,818 33,198 32,129 Less, accumulated depreciation (27,150) (26,838) Total property, plant, equipment and rental assets, net $ 6,048 $ 5,291 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Intangible Assets | |
Schedule of intangible assets | Intangible assets consisted of the following as of June 30, 2019 and March 31, 2019 (in thousands): June 30, 2019 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 2,109 131 Trade name & parts, service and TA100 customer relationships 1.2 to 5 years 1,766 1,766 — Total $ 7,706 $ 7,575 $ 131 March 31, 2019 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 2,053 187 Trade name & parts, service and TA100 customer relationships 1.2 to 5 years 1,766 1,766 — Total $ 7,706 $ 7,519 $ 187 |
Schedule of expected future amortization expense of intangible assets | Expected future amortization expense of intangible assets as of June 30, 2019 is as follows (in thousands): Amortization Year Ending March 31, Expense 2020 (remainder of fiscal year) $ 131 Total expected future amortization $ 131 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
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 first quarter of Fiscal 2020 and 2019 (in thousands): Three Months Ended June 30, 2019 2018 Cost of goods sold $ 18 $ 12 Research and development 10 7 Selling, general and administrative 234 208 Stock-based compensation expense $ 262 $ 227 |
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, 2019 174,944 $ 20.94 Granted — $ — Exercised — $ — Forfeited, cancelled or expired (33,500) $ 16.21 Options outstanding at June 30, 2019 141,444 $ 22.05 — Options fully vested at June 30, 2019 and those expected to vest beyond June 30, 2019 141,444 $ 22.05 — Options exercisable at June 30, 2019 141,444 $ 22.05 — |
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, 2019 2,217,433 $ 1.02 Granted 905,848 0.59 Vested and issued (2,278) 12.80 Forfeited (36,329) 0.85 Nonvested restricted stock units outstanding at June 30, 2019 3,084,674 0.89 Restricted stock units expected to vest beyond June 30, 2019 3,084,651 $ 0.89 |
Schedule of additional information on restricted stock units | Three Months Ended June 30, 2019 2018 Restricted stock compensation expense (in thousands) $ 262 $ 227 Aggregate fair value of restricted stock units vested and issued (in thousands) $ 2 $ 7 Weighted average grant date fair value of restricted stock units granted during the period $ 0.59 $ 1.59 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Fair Value Measurements | |
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 June 30, 2019 March 31, 2019 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Term note payable $ 27,389 $ 30,000 $ 27,099 $ 30,000 |
Accrued Warranty Reserve (Table
Accrued Warranty Reserve (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Accrued Warranty Reserve | |
Schedule of changes in accrued warranty reserve | Changes in accrued warranty reserve during the first quarter of Fiscal 2020 are as follows (in thousands): Balance, beginning of the period $ 2,614 Standard warranty provision 205 Accrual related to reliability repair programs — Deductions for warranty claims (371) Balance, end of the period $ 2,448 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition | |
Schedule of disaggregated revenue by business group | The following table presents disaggregated revenue by business group for the first quarter of Fiscal 2020 (in thousands): Three Months Ended June 30, 2019 Microturbine Products $ 10,086 Accessories and Parts 3,987 Total Product, Accessories and Parts 14,073 Service 5,171 Total Revenue $ 19,244 |
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 first quarter of Fiscal 2020 (in thousands): Three Months Ended June 30, 2019 United States $ 7,629 Mexico 1,241 All other North America 673 Total North America 9,543 Russia 1,455 All other Europe 2,549 Total Europe 4,004 Asia 1,528 Australia 1,670 All other 2,499 Total Revenue $ 19,244 |
Schedule of changes in deferred revenue | FPP Balance, beginning of the period $ 4,881 FPP Billings 4,288 FPP Revenue recognized (4,199) Balance attributed to FPP contracts 4,970 DSS Program 1,324 Deposits 2,593 Deferred revenue balance, end of the period $ 8,887 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Other Assets | |
Schedule of current and long-term portions of prepaid royalties | The current and long-term portions of prepaid royalties, included in other current assets and other assets, respectively, consisted of (in thousands): June 30, 2019 Other current assets $ 124 Other assets 2,740 Royalty-related assets $ 2,864 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Leases | |
Schedule of operating leases | Three Months Ended June 30, 2019 Operating lease cost $ 481 Operating Leases June 30, 2019 Operating lease right-of-use assets $ 5,117 Total operating lease right-of-use assets $ 5,117 Operating lease liability, current $ 789 Operating lease liability, non-current 4,643 Total operating lease liabilities $ 5,432 Three Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 506 Weighted average remaining lease life 8 years Weighted average discount rate |
Schedule of maturities of operating lease liabilities | Operating Year Ending March 31, Leases 2020 (remainder of fiscal year) $ 998 2021 978 2022 961 2023 987 2024 1,014 2025 1,043 Thereafter 3,002 Total lease payments $ 8,983 Less: imputed interest (3,551) Present value of operating lease liabilities $ 5,432 |
Business and Organization (Deta
Business and Organization (Details) | 3 Months Ended |
Jun. 30, 2018 | |
Business and Organization | |
Long-term service contracts, maximum term | 20 years |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Basis of Presentation | |||
Net loss | $ 5,593 | $ 4,897 | |
Cash received (used) in operating activities | (5,165) | $ (6,018) | |
Cash and cash equivalents | 24,612 | $ 29,727 | |
Outstanding borrowings | $ 30,000 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Details) | Jun. 30, 2019 |
Accounting Standards Update 2016-02 | |
New Accounting Pronouncements or Change in Accounting Principle | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 1, 2019 |
Change in Accounting Principle, Accounting Standards Update, Early Adoption | false |
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected | Modified Retrospective |
Accounting Standards Update 2018-07 | |
New Accounting Pronouncements or Change in Accounting Principle | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 1, 2019 |
Change in Accounting Principle, Accounting Standards Update, Early Adoption | false |
Customer Concentrations and A_2
Customer Concentrations and Accounts Receivable - Customer Concentrations (Details) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Revenue | Customer concentrations | E-Finity | |||
Customer Concentrations and Accounts Receivable | |||
Concentration percentage | 12.00% | 10.00% | |
Revenue | Customer concentrations | Cal | |||
Customer Concentrations and Accounts Receivable | |||
Concentration percentage | 10.00% | ||
Revenue | Customer concentrations | CAT | |||
Customer Concentrations and Accounts Receivable | |||
Concentration percentage | 18.00% | ||
Revenue | Customer concentrations | Supernova | |||
Customer Concentrations and Accounts Receivable | |||
Concentration percentage | 12.00% | ||
Net accounts receivable | Credit concentration | E-Finity | |||
Customer Concentrations and Accounts Receivable | |||
Concentration percentage | 10.00% | ||
Net accounts receivable | Credit concentration | Innovative Energy Company Limited | |||
Customer Concentrations and Accounts Receivable | |||
Concentration percentage | 12.00% | ||
Net accounts receivable | Credit concentration | DTC | |||
Customer Concentrations and Accounts Receivable | |||
Concentration percentage | 11.00% | ||
Net accounts receivable | Credit concentration | Reliable Secure Power Systems | |||
Customer Concentrations and Accounts Receivable | |||
Concentration percentage | 14.00% |
Customer Concentrations and A_3
Customer Concentrations and Accounts Receivable - Accounts Receivable (Details) | Jun. 05, 2018USD ($)payment | Oct. 13, 2017USD ($)payment | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2015USD ($) |
Distribution and Accounts Receivable Assignment Agreements | |||||||
Reduction in accounts receivable allowances | $ 3,000 | ||||||
Net bad debt expense (recovery) | $ (2,800) | ||||||
BPC | |||||||
Distribution and Accounts Receivable Assignment Agreements | |||||||
Accounts receivable | $ 4,800,000 | $ 8,100,000 | |||||
Total collections on accounts receivable allowance | 1,800,000 | ||||||
Accounts Receivable Assignment Agreement | Turbine International, LLC | |||||||
Distribution and Accounts Receivable Assignment Agreements | |||||||
Total consideration receivable | $ 2,500,000 | ||||||
Number of payments to be received | payment | 3 | ||||||
Reduction in accounts receivable allowances | $ 1,000,000 | ||||||
Payments due | 300,000 | $ 400,000 | |||||
Total collections on accounts receivable allowance | $ 1,500,000 | ||||||
Promissory Note Agreement | Turbine International, LLC | |||||||
Distribution and Accounts Receivable Assignment Agreements | |||||||
Total consideration receivable | $ 3,800,000 | ||||||
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 | $ 1,500,000 | ||||||
Number of payments to be received | payment | 5 | ||||||
Amended Note Agreement | Turbine International, LLC | |||||||
Distribution and Accounts Receivable Assignment Agreements | |||||||
Total consideration receivable | $ 3,800,000 | ||||||
Number of payments to be received | payment | 13 | ||||||
Term of payments | 3 years |
Inventories - Tabular Disclosur
Inventories - Tabular Disclosure (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Inventories | ||
Raw materials | $ 23,877 | $ 24,426 |
Work in process | 93 | |
Finished goods | 1,870 | 1,207 |
Total | 25,840 | 25,633 |
Less: inventory reserve | (3,952) | (3,887) |
Less: non-current portion | (1,407) | (1,403) |
Current portion | $ 20,481 | $ 20,343 |
Inventories - Noncurrent - Gene
Inventories - Noncurrent - General Information (Details) | 3 Months Ended |
Jun. 30, 2019 | |
Inventories | |
Weighted average age of noncurrent inventories | 1 year 2 months 12 days |
Inventories - Noncurrent - Tabu
Inventories - Noncurrent - Tabular Disclosure (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Inventories | ||
Non-current inventory, 13 to 24 Months | $ 635 | |
Non-current inventory, 25 to 36 Months | 772 | |
Total | $ 1,407 | $ 1,403 |
Property, Plant and Equipment_3
Property, Plant and Equipment and Rental Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Property, Plant and Equipment | |||
Total property, plant and equipment, gross | $ 33,198 | $ 32,129 | |
Less, accumulated depreciation | (27,150) | (26,838) | |
Total property, plant, equipment and rental assets, net | 6,048 | 5,291 | |
Value of C1000 Signature systems deployed under factory rental program | 700 | ||
Depreciation expense | 300 | $ 200 | |
Machinery, equipment, automobiles and furniture | |||
Property, Plant and Equipment | |||
Total property, plant and equipment, gross | 15,577 | 15,344 | |
Leasehold improvements | |||
Property, Plant and Equipment | |||
Total property, plant and equipment, gross | 11,079 | 11,074 | |
Molds and tooling | |||
Property, Plant and Equipment | |||
Total property, plant and equipment, gross | 3,003 | 2,893 | |
Rental assets | |||
Property, Plant and Equipment | |||
Total property, plant and equipment, gross | $ 3,539 | $ 2,818 |
Intangible Assets - Weighted Av
Intangible Assets - Weighted Average Amortization Period (Details) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Manufacturing license | ||
Intangible Assets | ||
Weighted Average Amortization Period | 17 years | 17 years |
Technology | ||
Intangible Assets | ||
Weighted Average Amortization Period | 10 years | 10 years |
Trade name & parts, service and TA100 customer relationships | Minimum | ||
Intangible Assets | ||
Weighted Average Amortization Period | 1 year 2 months 12 days | 1 year 2 months 12 days |
Trade name & parts, service and TA100 customer relationships | Maximum | ||
Intangible Assets | ||
Weighted Average Amortization Period | 5 years | 5 years |
Intangible Assets - Finite-live
Intangible Assets - Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Intangible Assets | ||
Intangible Assets, Gross | $ 7,706 | $ 7,706 |
Accumulated Amortization | 7,575 | 7,519 |
Intangible Assets, Net | 131 | 187 |
Manufacturing license | ||
Intangible Assets | ||
Intangible Assets, Gross | 3,700 | 3,700 |
Accumulated Amortization | 3,700 | 3,700 |
Technology | ||
Intangible Assets | ||
Intangible Assets, Gross | 2,240 | 2,240 |
Accumulated Amortization | 2,109 | 2,053 |
Intangible Assets, Net | 131 | 187 |
Trade name & parts, service and TA100 customer relationships | ||
Intangible Assets | ||
Intangible Assets, Gross | 1,766 | 1,766 |
Accumulated Amortization | $ 1,766 | $ 1,766 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Intangible Assets | ||
Amortization expense | $ 0.1 | $ 0.1 |
Intangible Assets - Expected Fu
Intangible Assets - Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Expected future amortization expense of intangible assets | ||
2020 (remainder of fiscal year) | $ 131 | |
Intangible Assets, Net | $ 131 | $ 187 |
Intangible Assets - Solar Turbi
Intangible Assets - Solar Turbines (Details) - Solar Turbines Incorporated - USD ($) | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Intangible Assets | |||
Years subject to payment of per-unit royalty fees | 17 years | ||
Royalties earned | $ 7,200 | $ 7,100 | |
Unpaid earned royalties | $ 33,300 | $ 26,100 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Stock-Based Compensation | ||
Stock-based compensation expense | $ 262 | $ 227 |
Cost of goods sold | ||
Stock-Based Compensation | ||
Stock-based compensation expense | 18 | 12 |
Research and development | ||
Stock-Based Compensation | ||
Stock-based compensation expense | 10 | 7 |
Selling, general and administrative | ||
Stock-Based Compensation | ||
Stock-based compensation expense | $ 234 | $ 208 |
Stock-Based Compensation - 2000
Stock-Based Compensation - 2000 Equity Incentive Plan and 2017 Equity Incentive Plan (Details) - shares | Jun. 05, 2018 | Jun. 30, 2019 |
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 | |
Number of shares available for future grant | 2,215,374 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Additional disclosure | ||
Stock-based compensation expense | $ 262 | $ 227 |
Stock options | ||
Shares | ||
Outstanding at the beginning of the period (in shares) | 174,944 | |
Granted (in shares) | 0 | 0 |
Forfeited, cancelled or expired (in shares) | (33,500) | |
Outstanding at the end of the period (in shares) | 141,444 | |
Options fully vested and those expected to vest (in shares) | 141,444 | |
Options exercisable | 141,444 | |
Weighted Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 20.94 | |
Forfeited, cancelled or expired (in dollars per share) | 16.21 | |
Outstanding at the end of the period (in dollars per share) | 22.05 | |
Options fully vested and those expected to vest (in dollars per share) | 22.05 | |
Exercisable (in dollars per share) | $ 22.05 | |
Weighted Average Remaining Contractual Term (in years) | ||
Outstanding at the end of the period | 2 years 7 months 6 days | |
Options fully vested and those expected to vest | 2 years 7 months 6 days | |
Exercisable | 2 years 7 months 6 days | |
Additional disclosure | ||
Stock-based compensation expense | $ 0 | $ 0 |
Unvested stock option awards (in shares) | 0 |
Stock-Based Compensation - RSU'
Stock-Based Compensation - RSU's and PRSU's (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Aug. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | |
Additional disclosure | |||
Stock-based compensation expense | $ 262,000 | $ 227,000 | |
Employee Stock Purchase Plan | |||
Weighted Average Grant-Date Fair Value | |||
Number of shares of common stock reserved for issuance | 70,000 | 570,000 | |
Increase in common stock available under the plan | 500,000 | ||
Number of shares available for future grant | 497,909 | ||
Number of shares issued | 1,012 | ||
Maximum amount that can be contributed by the employee | $ 25,000 | ||
Maximum percentage of regular compensation that can be contributed by the employee | 15.00% | ||
Percentage of the fair market value of common stock on the last day of the purchase right period | 95.00% | ||
Restricted stock units and performance restricted stock units | |||
Shares | |||
Nonvested, balance at the beginning of the period (in shares) | 2,217,433 | ||
Granted (in shares) | 905,848 | ||
Vested and issued (in shares) | (2,278) | ||
Forfeited (in shares) | (36,329) | ||
Nonvested, balance at the end of the period (in shares) | 3,084,674 | ||
Awards expected to vest (in shares) | 3,084,651 | ||
Weighted Average Grant-Date Fair Value | |||
Nonvested restricted stock units outstanding at the beginning of the period (in dollars per share) | $ 1.02 | ||
Granted (in dollars per share) | 0.59 | ||
Vested and issued (in dollars per share) | 12.80 | ||
Forfeited (in dollars per share) | 0.85 | ||
Nonvested restricted stock units outstanding at the end of the period (in dollars per share) | 0.89 | ||
Awards expected to vest (in dollars per share) | $ 0.89 | ||
Restricted stock units | |||
Additional disclosure | |||
Stock-based compensation expense | $ 262,000 | $ 227,000 | |
Aggregate fair value of restricted stock units vested and issued | 2,000 | $ 7,000 | |
Unrecognized compensation cost | $ 1,500,000 | ||
Weighted average period for recognizing compensation cost | 1 year 9 months 18 days | ||
Weighted Average Grant-Date Fair Value | |||
Granted (in dollars per share) | $ 0.59 | $ 1.59 | |
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% | ||
Weighted Average Grant-Date Fair Value | |||
Granted (in dollars per share) | $ 0.89 | ||
Performance Restricted Stock Units | Maximum | |||
Additional disclosure | |||
Performance goal payment as a percentage of target | 150.00% | ||
Performance Restricted Stock Units | Three-year performance measurement period | |||
Additional disclosure | |||
Performance measurement period | 3 years | ||
Shares | |||
Granted (in shares) | 301,356 | ||
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 | $ 0 | $ 0 | |
Shares | |||
Granted (in shares) | 0 | 0 | |
Non-employee director | Restricted stock units | |||
Additional disclosure | |||
Vesting period | 1 year |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stockholder Rights Plan (Details) | May 06, 2019Vote$ / shares | Jun. 30, 2019$ / shares | Mar. 31, 2019$ / 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) | 5.22 | ||
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 |
Offerings of Common Stock and_2
Offerings of Common Stock and Warrants and At-the-Market Offering Program (Details) - USD ($) | Apr. 13, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Feb. 04, 2019 | Jun. 07, 2018 | Aug. 28, 2015 |
Offerings of Common Stock and Warrants and At-the-Market Offering Program | ||||||||
Common stock sold (in shares) | 3,806,243 | |||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Aggregate offering price of common stock | $ 1,222,000 | $ 4,970,000 | ||||||
June 2018 Sales Agreement | ||||||||
Offerings of Common Stock and Warrants and At-the-Market Offering Program | ||||||||
Aggregate offering price for at-the-market offering program | $ 16,500,000 | $ 16,500,000 | ||||||
Common stock sold (in shares) | 1,400,000 | |||||||
Net proceeds from sale of the common stock, after deducting fees and other offering expenses (in dollars) | $ 1,200,000 | |||||||
Common stock commissions paid | $ 44,300 | |||||||
June 2018 Sales Agreement | Maximum | ||||||||
Offerings of Common Stock and Warrants and At-the-Market Offering Program | ||||||||
Aggregate offering price for at-the-market offering program | $ 25,000,000 | |||||||
August 2015 Sales Agreement | ||||||||
Offerings of Common Stock and Warrants and At-the-Market Offering Program | ||||||||
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) | $ 4,000,000 | $ 28,600,000 | ||||||
Common stock commissions paid | $ 100,000 | $ 800,000 | ||||||
August 2015 Sales Agreement | Maximum | ||||||||
Offerings of Common Stock and Warrants and At-the-Market Offering Program | ||||||||
Aggregate offering price for at-the-market offering program | $ 30,000,000 | |||||||
Goldman Sachs & Co. LLC | ||||||||
Offerings of Common Stock and Warrants and At-the-Market Offering Program | ||||||||
Exercise price (in dollars per share) | $ 0.8859 | |||||||
Common stock, par value (in dollars per share) | $ 0.001 | |||||||
Value of the Warrant | $ 2,300,000 | |||||||
Goldman Sachs & Co. LLC | Maximum | ||||||||
Offerings of Common Stock and Warrants and At-the-Market Offering Program | ||||||||
Outstanding warrants (in shares) | 4,046,337 | |||||||
Goldman Sachs & Co. LLC | Private Placement | ||||||||
Offerings of Common Stock and Warrants and At-the-Market Offering Program | ||||||||
Value of the Warrant | $ 150,000 | |||||||
Series A Warrants | ||||||||
Offerings of Common Stock and Warrants and At-the-Market Offering Program | ||||||||
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 | ||||||
Series A Warrants, Exercise Price 2.55 | ||||||||
Offerings of Common Stock and Warrants and At-the-Market Offering Program | ||||||||
Exercise price (in dollars per share) | $ 2.55 | $ 2.55 | ||||||
Issued warrants (in shares) | 2,178,750 | |||||||
Series A Warrants, Exercise Price 1.34 | ||||||||
Offerings of Common Stock and Warrants and At-the-Market Offering Program | ||||||||
Exercise price (in dollars per share) | $ 0.57 | 0.57 | ||||||
Initial exercise price (in dollars per share) | $ 1.34 | $ 1.34 | ||||||
Issued warrants (in shares) | 540,000 | |||||||
Series B Warrants | ||||||||
Offerings of Common Stock and Warrants and At-the-Market Offering Program | ||||||||
Outstanding warrants (in shares) | 0 | 0 |
Fair Value Measurements - Oblig
Fair Value Measurements - Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Carrying Value | ||
Fair Value Measurements | ||
Term note payable | $ 27,389 | $ 27,099 |
Total | ||
Fair Value Measurements | ||
Term note payable | $ 30,000 | $ 30,000 |
Term Note Payable (Details)
Term Note Payable (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Feb. 04, 2019 | |
Term Note Payable | |||
Outstanding borrowings | $ 30,000,000 | ||
Interest expenses | 1,276,000 | $ 118,000 | |
Amortization of deferred financing costs | 290,000 | 38,000 | |
Notes | |||
Term Note Payable | |||
Aggregate principal amount | $ 30,000,000 | ||
Interest rate (as a percent) | 13.00% | ||
Outstanding borrowings | $ 30,000,000 | ||
Term | 3 years | ||
Minimum consolidated liquidity through February 4, 2020 | $ 12,000,000 | ||
Minimum consolidated liquidity thereafter | 9,000,000 | ||
Deferring financing costs | 2,600,000 | ||
Amortization of debt discount and deferred costs | 300,000 | ||
Interest expenses | 1,300,000 | 100,000 | |
Amortization of deferred financing costs | 300,000 | $ 38,500 | |
Credit Facility | |||
Term Note Payable | |||
Interest expenses | $ 0 |
Accrued Warranty Reserve (Detai
Accrued Warranty Reserve (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Accrued Warranty Reserve | |
Maximum period of product warranties | 24 months |
Accrued Warranty Reserve | |
Balance, beginning of the period | $ 2,614 |
Standard warranty provision | 205 |
Deductions for warranty claims | (371) |
Balance, end of the period | $ 2,448 |
Revenue Recognition - Revenues
Revenue Recognition - Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue: | ||
Total revenue | $ 19,244 | $ 21,189 |
Product, accessories and parts | ||
Revenue: | ||
Total revenue | 14,073 | 17,085 |
Total from Micro turbine Products | ||
Revenue: | ||
Total revenue | 10,086 | |
Accessories and parts | ||
Revenue: | ||
Total revenue | 3,987 | |
Service | ||
Revenue: | ||
Total revenue | 5,171 | $ 4,104 |
Total North America | ||
Revenue: | ||
Total revenue | 9,543 | |
United States | ||
Revenue: | ||
Total revenue | 7,629 | |
Mexico | ||
Revenue: | ||
Total revenue | 1,241 | |
All other North America | ||
Revenue: | ||
Total revenue | 673 | |
All other Europe | ||
Revenue: | ||
Total revenue | 1,455 | |
United Kingdom | ||
Revenue: | ||
Total revenue | 2,549 | |
Columbia | ||
Revenue: | ||
Total revenue | 4,004 | |
Asia | ||
Revenue: | ||
Total revenue | 1,528 | |
Australia | ||
Revenue: | ||
Total revenue | 1,670 | |
All other | ||
Revenue: | ||
Total revenue | $ 2,499 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Revenue Recognition | ||
Increase (decrease) in balance of deferred revenue | $ (700) | |
Increase in deposits | 1,000 | |
Changes in deferred revenue | ||
DSS program | 1,324 | |
Deposits | 2,593 | |
Deferred revenue balance, end of the period | 8,887 | $ 8,200 |
Estimated revenue to be recognized thereafter | 1,100 | |
FPP agreements | ||
Revenue Recognition | ||
Increase (decrease) in balance of deferred revenue | 100 | |
Changes in deferred revenue | ||
FPP Balance, beginning of the period | 4,881 | |
FPP Billings | 4,288 | |
FPP Revenue recognized | (4,199) | |
Balance attributed to FPP contracts | 4,970 | |
Estimated revenue to be recognized in the next 12 months | 3,900 | |
Distributor Support System | ||
Revenue Recognition | ||
Increase (decrease) in balance of deferred revenue | $ (400) |
Revenue Recognition - Unsatisfi
Revenue Recognition - Unsatisfied performance obligations and Practical Expedients (Details) | 3 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition | |
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 |
Other Assets (Details)
Other Assets (Details) $ in Thousands | Sep. 19, 2018USD ($) | Jul. 25, 2018USD ($) | Jun. 30, 2019USD ($)kW | Jun. 30, 2018USD ($) | Sep. 30, 2013 |
Other Assets | |||||
Reduction in fixed rate royalty (as a percent) | 50.00% | ||||
Payment of royalty settlement | $ 3,000 | ||||
Carrier | |||||
Other Assets | |||||
Unpaid earned royalties | $ 0 | ||||
Royalty-related assets | $ 2,864 | ||||
Amortization period of prepaid royalty | 15 years | ||||
Carrier | Other current assets | |||||
Other Assets | |||||
Royalty-related assets | $ 124 | ||||
Carrier | Other assets | |||||
Other Assets | |||||
Royalty-related assets | $ 2,740 | ||||
Carrier | C200 | |||||
Other Assets | |||||
Capacity of microturbine (in kW) | kW | 200 | ||||
Payment of royalty settlement | $ 3,000 | ||||
Carrier | C200 and C1000 | |||||
Other Assets | |||||
Royalties earned | $ 0 | $ 300 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Commitments (Details) $ in Millions | Jun. 30, 2019USD ($) |
Inventory | |
Commitments and Contingencies | |
Commitment to purchase inventories | $ 30.7 |
Commitments and Contingencies_2
Commitments and Contingencies - Other Commitments and Legal Matters (Details) $ in Millions | Oct. 18, 2018USD ($)item | Jul. 18, 2016item | Jul. 12, 2016item | 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 | 2 | 2 | ||
Regatta Against Company | ||||
Legal matters | ||||
Alleged number of frauds | 2 | |||
Regatta Against Executive Vice President | ||||
Legal matters | ||||
Alleged number of frauds | 1 | |||
Minimum | Regatta Against Company | ||||
Legal matters | ||||
Claim for general and compensatory damages | $ | $ 1.5 | |||
Minimum | Regatta Against Executive Vice President | ||||
Legal matters | ||||
Claim for general and compensatory damages | $ | $ 1.5 |
Leases - ASU 2016-02 (Details)
Leases - ASU 2016-02 (Details) - Accounting Standards Update 2016-02 | Jun. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 1, 2019 |
Change in Accounting Principle, Accounting Standards Update, Early Adoption | false |
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected | Modified Retrospective |
Leases - Practical Expedients (
Leases - Practical Expedients (Details) | 3 Months Ended |
Jun. 30, 2019 | |
Leases | |
Lease, Practical Expedients, Package | true |
Lease, Practical Expedient, Use of Hindsight | true |
Lease, Practical Expedient, Lessor Single Lease Component | true |
Leases - Assets and Liabilities
Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Apr. 01, 2019 |
Leases | ||
Right-of-use assets | $ 5,117 | $ 5,500 |
Deferred rent and lease incentive | 300 | |
Operating lease liabilities | $ 5,432 | $ 5,800 |
Leases - Lease Terms (Details)
Leases - Lease Terms (Details) - Primary Office and Manufacturing Facilities | 3 Months Ended |
Jun. 30, 2019 | |
Leases | |
Renewal options | true |
Renewal options term | 5 years |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Lease Cost | ||
Operating lease cost | $ 481 | |
Rental Expense | ||
Rental expense | $ 600 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Apr. 01, 2019 |
Leases | ||
Operating lease right-of-use assets | $ 5,117 | $ 5,500 |
Operating lease right-of-use assets, balance sheet location | us-gaap:OtherAssetsNoncurrent | |
Operating lease liability, current | $ 789 | |
Operating lease liability, current, balance sheet location | cpst:NotesPayableAndCapitalLeaseObligationsCurrent | |
Operating lease liability, non-current | $ 4,643 | |
Operating lease liability, non-current, balance sheet location | cpst:NotesPayableAndCapitalLeaseObligationsNoncurrent | |
Total operating lease liabilities | $ 5,432 | $ 5,800 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Leases | |
Operating cash flows from operating leases | $ 506 |
Leases - Other Supplemental Inf
Leases - Other Supplemental Information (Details) | Jun. 30, 2019 |
Leases | |
Weighted average remaining lease life | 8 years |
Weighted average discount rate | 13.00% |
Leases - Maturities (Details)
Leases - Maturities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Maturities of operating lease liabilites: | |
2020 (remainder of fiscal year) | $ 998 |
2021 | 978 |
2022 | 961 |
2023 | 987 |
2024 | 1,014 |
2025 | 1,043 |
Thereafter | 3,002 |
Total lease payments | $ 8,983 |
Leases - Present Value of Opera
Leases - Present Value of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Apr. 01, 2019 |
Leases | ||
Total lease payments | $ 8,983 | |
Less: imputed interest | (3,551) | |
Present value of operating lease liabilities | $ 5,432 | $ 5,800 |
Net Loss Per Common Share (Deta
Net Loss Per Common Share (Details) - shares shares in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive stock options and restricted stock units | ||
Net Loss Per Common Share | ||
Antidilutive securities excluded from diluted net loss per common share computations | 3.2 | 2.5 |
Performance Restricted Stock Units | ||
Net Loss Per Common Share | ||
Antidilutive securities excluded from diluted net loss per common share computations | 0.3 | 0.3 |
Warrants | ||
Net Loss Per Common Share | ||
Antidilutive securities excluded from diluted net loss per common share computations | 6.8 | 2.7 |