Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 07, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AETI | ||
Entity Registrant Name | American Electric Technologies Inc | ||
Entity Central Index Key | 0001043186 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7,932,570 | ||
Entity Common Stock, Shares Outstanding | 9,304,829 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 2,124 | $ 2,289 |
Accounts receivable-trade, net | 911 | 794 |
Inventories, net | 69 | 2 |
Contract assets | 344 | 592 |
Prepaid expenses and other current assets | 433 | 151 |
Current assets held for sale | 12,866 | |
Total current assets | 3,881 | 16,694 |
Property, plant and equipment, net | 552 | 598 |
Advances to and investments in foreign joint ventures | 9,980 | 10,947 |
Other assets | 146 | 116 |
Assets held for sale | 7,566 | |
Total assets | 14,559 | 35,921 |
Current liabilities: | ||
Current portion of long-term note payable | 270 | |
Short-term note payable | 202 | 203 |
Accounts payable and accrued liabilities | 2,478 | 1,719 |
Liabilities held for sale | 13,471 | |
Total current liabilities | 2,680 | 15,663 |
Long-term note payable | 5,524 | |
Deferred compensation | 163 | 213 |
Total liabilities | 2,843 | 21,400 |
Commitments and contingencies (Note 13) | ||
Convertible preferred stock: | ||
Redeemable convertible preferred stock, Series A, net of discount of $502 at December 31, 2018 and $562 at December 31, 2017; $0.001 par value, 1,000,000 shares authorized, issued and outstanding at December 31, 2018 and December 31, 2017 | 4,498 | 4,438 |
Stockholders’ equity: | ||
Common stock; $0.001 par value, 50,000,000 shares authorized, 9,413,245 and 8,850,532 shares issued and 9,219,270 and 8,669,650 shares outstanding at December 31, 2018 and December 31, 2017 | 9 | 9 |
Treasury stock, at cost 225,608 and 180,882 shares at December 31, 2018 and December 31, 2017 | (965) | (916) |
Additional paid-in capital | 14,014 | 13,455 |
Accumulated other comprehensive (loss) income | (417) | 401 |
Accumulated deficit; including accumulated statutory reserves in equity method investments of $2,809 at both December 31, 2018 and December 31, 2017 | (5,423) | (2,866) |
Total stockholders’ equity | 7,218 | 10,083 |
Total liabilities, convertible preferred stock and stockholders’ equity | $ 14,559 | $ 35,921 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Redeemable convertible preferred stock, Series A, discount | $ 502 | $ 562 |
Redeemable convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Redeemable convertible preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Redeemable convertible preferred stock, shares issued | 1,000,000 | 1,000,000 |
Redeemable convertible preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 9,413,245 | 8,850,532 |
Common stock, shares outstanding | 9,219,270 | 8,669,650 |
Treasury stock, shares | 225,608 | 180,882 |
Equity Method Investments | ||
Accumulated Deficit; accumulated statutory reserves in equity method investments | $ 2,809 | $ 2,809 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Net revenues | $ 7,591 | $ 5,716 |
Cost of revenue | 5,677 | 4,566 |
Gross profit | 1,914 | 1,150 |
Operating expenses: | ||
General and administrative | 3,335 | 4,194 |
Selling | 410 | 490 |
Total operating expenses | 3,745 | 4,684 |
Foreign joint ventures: | ||
Equity income from joint ventures | 953 | 656 |
Loss on liquidation of investment in MIEFE | (210) | |
Joint venture operations' related expenses | (142) | (250) |
Net equity income from foreign joint venture operations | 601 | 406 |
Loss from operations | (1,230) | (3,128) |
Other income (expense): | ||
Interest expense | (24) | (50) |
Other income (expense) | (116) | 26 |
Total other expense | (140) | (24) |
Loss from continuing operations before income tax expense (benefit) | (1,370) | (3,152) |
Income tax provision (benefit) | 291 | (2,955) |
Net loss from continuing operations | (1,661) | (197) |
Loss from discontinued operations, including gain on the sale of $4,521 | (896) | (2,031) |
Net loss | (2,557) | (2,228) |
Dividend and accretion of discount on redeemable convertible preferred stock | (360) | (356) |
Net loss attributable to common stockholders | $ (2,917) | $ (2,584) |
Loss per common share - basic and diluted: | ||
Continuing operations | $ (0.23) | $ (0.06) |
Discontinued operations | (0.10) | (0.24) |
Consolidated operations | $ (0.33) | $ (0.30) |
Weighted - average number of common shares outstanding: | ||
Basic and diluted | 8,892,585 | 8,525,645 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Income Statement [Abstract] | |
Gain on the sale of discontinued operations | $ 4,521 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (2,557) | $ (2,228) |
Foreign currency translation adjustments | (1,028) | 403 |
Reclassification adjustment for loss on liquidation of investment in MIEFE | 210 | |
Total comprehensive loss | $ (3,375) | $ (1,825) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Balance at Dec. 31, 2016 | $ 11,118 | $ 8 | $ (863) | $ 12,613 | $ (2) | $ (638) |
Balance, shares at Dec. 31, 2016 | 8,335,968 | |||||
Common stock issued to ESPP | 13 | 13 | ||||
Common stock issued to ESPP, shares | 7,151 | |||||
Common stock issued for accrued dividends on preferred stock | 150 | 150 | ||||
Common stock issued for accrued dividends on preferred stock, shares | 82,268 | |||||
Common stock issued as payment of preferred stock | $ 1 | (1) | ||||
Common stock issued as payment of preferred stock, shares | 164,535 | |||||
Accretion of discount on preferred stock | (56) | (56) | ||||
Treasury stock purchase, Value | (53) | (53) | ||||
Treasury stock purchase, Shares | (17,342) | |||||
Restricted stock units | 371 | 371 | ||||
Restricted stock units, shares | 97,070 | |||||
Net loss | (2,228) | (2,228) | ||||
Warrants issued as part of debt refinancing | 365 | 365 | ||||
Other comprehensive income | 403 | 403 | ||||
Balance at Dec. 31, 2017 | 10,083 | $ 9 | (916) | 13,455 | 401 | (2,866) |
Balance, shares at Dec. 31, 2017 | 8,669,650 | |||||
Common stock issued to ESPP | 10 | 10 | ||||
Common stock issued to ESPP, shares | 7,614 | |||||
Common stock issued as payment of preferred stock, shares | 281,858 | |||||
Accretion of discount on preferred stock | (60) | (60) | ||||
Treasury stock purchase, Value | (49) | (49) | ||||
Treasury stock purchase, Shares | (44,726) | |||||
Restricted stock units | 609 | 609 | ||||
Restricted stock units, shares | 304,874 | |||||
Net loss | (2,557) | (2,557) | ||||
Other comprehensive income | (818) | (818) | ||||
Balance at Dec. 31, 2018 | $ 7,218 | $ 9 | $ (965) | $ 14,014 | $ (417) | $ (5,423) |
Balance, shares at Dec. 31, 2018 | 9,219,270 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (2,557) | $ (2,228) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Gain on sale of discontinued operations | (4,521) | |
Distributions in excess of equity in income from joint ventures | 174 | 125 |
Depreciation and amortization | 517 | 841 |
Stock based compensation | 609 | 373 |
Deferred income taxes | (3,033) | |
Deferred compensation costs | (50) | (47) |
Provision for bad debts | 37 | (127) |
Loss on liquidation of investment in MIEFE | 210 | |
Gain on disposal of property, plant and equipment | 154 | |
Amortization of debt issuance costs and debt discounts | 706 | 86 |
Provision for obsolescence of inventory | 66 | |
Change in operating assets and liabilities: | ||
Accounts receivable, net | 2,654 | 750 |
Inventories | 125 | (212) |
Contract assets | 2,885 | (787) |
Prepaid expenses and other current assets | (164) | (208) |
Accounts payable and accrued liabilities | (5,057) | 2,915 |
Contract liabilities | 960 | 1,584 |
Net cash used in operating activities | (3,318) | 98 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment and other assets | (257) | (410) |
Net cash proceeds from sale of assets of M&I Electric | 10,118 | |
Redemption of certificates of deposit | 457 | |
Net cash provided by investing activities | 9,861 | 47 |
Cash flows from financing activities: | ||
Proceeds from sale of common stock, preferred stock, and warrants | 10 | 10 |
Treasury stocks purchase | (49) | (53) |
Proceeds from long-term notes payable | 7,000 | |
Proceeds from short-term notes payable | 200 | |
Payments on revolving credit facility | (1,500) | |
Payments on long-term notes payable | (6,500) | (4,200) |
Payments on short-term notes payable | (500) | |
Other financing activities, net | (427) | |
Net cash (used in) provided by financing activities | (6,539) | 530 |
Effect of exchange rates on cash | (169) | (4) |
Net increase (decrease) in cash and cash equivalents | (165) | 671 |
Cash and cash equivalents, beginning of period | 2,289 | 1,618 |
Cash and cash equivalents, end of period | 2,124 | 2,289 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 616 | 772 |
Income taxes paid | 291 | 78 |
Non-cash investing and financing transactions: | ||
Warrants issued as part of debt refinancing | 365 | |
Issuance of shares of common stock on accrued preferred dividends payables | $ 300 | $ 450 |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Nature of Business | (1) Organization and Nature of Business American Electric Technologies, Inc. (“AETI” or the “Company”) is the surviving financial reporting entity from a reverse acquisition of American Access Technologies, Inc. by the shareholders of M&I Electric Industries, Inc. (“M&I”) on May 17, 2007. Immediately upon the completion of the reverse acquisition, American Access Technologies, Inc. changed its name to American Electric Technologies, Inc. AETI is a Florida corporation and M&I, AETI’s wholly-owned subsidiary is a Texas corporation. M&I has a wholly-owned subsidiary, South Coast Electric Systems, LLC (“SCES”), and joint venture interests in China and formerly had a joint venture in Singapore. The Singapore joint venture wrapped up in operations in 2018 and was sold. In 2014, the Company formed a wholly-owned subsidiary in Brazil (“M&I Brazil”), which is owned 20% by AETI and 80% by M&I. The Company has a U.S. corporate office in Texas; Brazil facilities and sales offices in Macaé, Rio and Belo Horizonte; and a foreign joint venture in Xian, China. The Company leases offices in Houston, Texas and internationally in Rio, Macaé and Belo Horizonte, Brazil. M&I’s wholly-owned subsidiary, SCES, is a Delaware Limited Liability Company organized on February 20, 2003 and is currently inactive. Substantially all M&I’s assets and liabilities were sold or settled in 2018 and M&I currently has only activity with China and Brazil M&I has a foreign joint venture interest in BOMAY Electrical Industries Company, Ltd. (“BOMAY”) and previously held an interest in M&I Electric Far East PTE Ltd. (“MIEFE”) that was liquidated in 2018. BOMAY provides electrical systems primarily for land and marine based drilling rigs in China and is accounted for using the equity method of accounting. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of AETI and its wholly-owned subsidiaries, M&I and M&I Brazil. Significant intercompany accounts and transactions are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates made by management include: (1) Estimates of the provision for doubtful accounts (2) Estimated useful lives of property and equipment (3) Valuation allowances related to deferred tax assets As future events and their effects cannot be determined with absolute certainty, actual results may differ from the estimates used in preparing the accompanying consolidated financial statements. Significant estimates and assumptions are required as part of determining inventory and accounts receivable valuation, estimating depreciation, amortization and recoverability of long-lived assets, establishing self-insurance, warranty, legal and other reserves, performing intangible impairment analyses, and in establishing valuation allowances on deferred income tax assets and reserves for tax examination exposures. Financial Instruments The Company includes fair value information in the notes to the consolidated financial statements when the fair value of its financial instruments is different from the book value. When the book value approximates fair value, no additional disclosure is made, which is the case for financial instruments outstanding as of December 31, 2018 and 2017. The Company assumes the book value of those financial instruments that are classified as current approximates fair value because of the short maturity of these instruments. For non-current financial instruments, the Company uses quoted market prices or, to the extent that there are no available quoted market prices, market prices for similar instruments. Cash and Cash Equivalents Cash equivalents consist of liquid investments with original maturities of three months or less. Cash balances, which routinely exceed Federal Deposit Insurance Corporation limits, are maintained in JP Morgan Chase Bank and Frost Bank. These institutions were selected by management based on their financial stability. The company has experienced no losses on deposits. Short-term Investments Short-term investments consist of any fund held in certificates of deposits with original maturities greater than three months and investments in debt and equity securities with maturity of one year or less. Accounts Receivable and Allowance for Bad Debts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The estimate is based on management’s assessment of the collectability of specific customer accounts and includes consideration for credit worthiness and financial condition of those specific customers. The Company also reviews historical experience with the customer, the general economic environment and the aging of its receivables. The Company records an allowance to reduce receivables to the amount it reasonably believes to be collectible. Based on this assessment, management believes the allowance for doubtful accounts is adequate. Inventories Inventories are stated at the lower of cost or market, with material value determined using an average cost method. At December 31, 2018 and 2017, inventory is primarily raw materials for use on service jobs in Brazil. Property, Plant and Equipment Property, plant and equipment are stated at cost. Expenditures for repairs and maintenance are expensed as incurred while renewals and betterments are capitalized. Depreciation is calculated on the straight-line basis over the estimated useful lives of the assets after giving effect to salvage values. Long-lived Assets If events or circumstances indicate the carrying amount of an asset may not be recoverable, including intangible assets, management tests long-lived assets for impairment. If the estimated future cash flows are projected to be less than the carrying amount, an impairment write-down (representing the carrying amount of the long-lived asset which exceeds the present value of estimated expected future cash flows) would be recorded as a period expense. Events that would trigger an impairment test include the following: • A significant decrease in the market price of a long-lived asset. • A significant change in the use of long-lived assets or in its physical condition. • A significant change in the business climate that could affect an assets value. • An accumulation of cost significantly greater than the amount originally expected to acquire or construct a long-lived asset. • A current period operating or cash flow loss combined with a history of such losses or a forecast demonstrating continued losses associated with the use of a long-lived asset. • An expectation to sell or otherwise dispose of a long-lived asset significantly before the end of its estimated useful life. Based on management’s reviews during each of the years ended December 31, 2018 and 2017, there were no events or circumstances that caused management to believe that impairments were necessary. Income Taxes The Company uses the asset and liability method to account for income taxes. Under this method of accounting for income taxes, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates and laws that will be in effect when the differences are expected to be reported to the taxing authority. The Company also records any financial statement recognition and disclosure requirements for uncertain tax positions taken or expected to be taken in its tax return. Financial statement recognition of the tax position is dependent on an assessment of a 50% or greater likelihood that the tax position will be sustained upon examination, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions are recorded as interest expense in the accompanying consolidated statements of operations. Foreign Currency Gains and Losses Foreign currency translations are included as a separate component of comprehensive income (loss). The Company has determined the local currency of its foreign subsidiary and foreign joint ventures to be the functional currency. In accordance with Accounting Standards Codification (ASC 830), the assets and liabilities of the foreign equity investees and foreign subsidiary, denominated in foreign currency, are translated into United States dollars at exchange rates in effect at the consolidated balance sheet date and net sales and expenses are translated at the average exchange rate for the period. Related translation adjustments are reported as comprehensive income (loss), net of deferred income taxes, which is a separate component of stockholders’ equity, whereas gains and losses resulting from foreign currency transactions are included in results of operations. Revenue Recognition The Company records net sales from its time and material projects on a completed service basis after customer acknowledgement that the service has been completed and accepted. In addition, the Company sells certain purchased parts and products. These net sales are recorded when the product is shipped and title passes to the customer. On January 1, 2018, the Company adopted ASC 606 on a modified retrospective basis and applied the guidance to all of its contracts. As a result of the Company’s adoption, there were no changes to the timing of the recognition or measurement of revenue, and there was no cumulative effect of adoption as of January 1, 2018. See Note 17, Revenue Recognition (ASC 606) for the Company’s policy effective January 1, 2018. Shipping and Handling Fees and Costs Shipping and handling fees, if billed to customers, are included in net sales. Shipping and handling costs associated with inbound freight are expensed as incurred. Shipping and handling costs associated with outbound freight are classified as cost of sales. Uses and Sources of Liquidity The Company’s primary need for liquidity is to fund working capital requirements of the Company’s businesses, capital expenditures and for general corporate purposes, including debt repayment. The Company has incurred losses and experienced negative operating cash flows for the past several years, and accordingly, the Company has taken a number of actions to continue to support its operations and meet its obligations. During 2017, the Company refinanced its outstanding loans which at that time provided approximately $1.0 million of working capital. In addition, the Board of Directors of the Company created a special committee to address strategic initiatives that include addressing liquidity. During 2018, the Company continued to face a challenging competitive environment and while it continues to focus on its overall profitability, including managing expenses, it reported a loss in 2018 and was required to fund cash used in operating activities with cash from investing and financing activities. Going forward, the Company expects to generate additional liquidity from strategic initiatives including monetization of assets and additional debt and equity financing actions. The Company expects that these actions will be executed in alignment with the anticipated timing of its liquidity needs. In August the Company closed on a sale of its U.S. operations. The Company expects to continue to optimize international operations including expansion of its service business in Brazil and diversification of its joint venture operations in China. In December 2018, the Company signed an agreement to acquire Stabilis Energy for stock, pending stock holder approval in 2019. The Company’s historical operating results indicate substantial doubt exists related to its ability to continue as a going concern. However, the Company believes it is probable that the actions discussed above will occur and mitigate the substantial doubt raised by its historical operating results and satisfy its estimated liquidity needs 12 months from the issuance of the financial statements. However, the Company cannot predict, with certainty, the outcome of its actions to generate liquidity, including the availability of additional debt financing, or whether such actions would generate the expected liquidity as currently planned. In addition, Redeemable Preferred Stock contains certain limitations on our ability to sell assets, which could impact our ability to complete asset sale transactions or our ability to use proceeds from those transactions to fund our operations. Therefore, any planned actions must take into account the ability to transact within any applicable restrictions under these agreements. If the Company continues to experience operating losses and is not able to generate additional liquidity through the mechanisms described above or through some combination of other actions, while not expected, it may not be able to access additional liquidity and we might need to secure additional sources of funds, which may or may not be available to us. Additionally, a failure to generate additional liquidity could negatively impact the Company’s access to materials or services that are important to the operation of its business. Concentration of Market Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable. The Company’s market risk is dependent primarily on the strength of the oil and gas and energy-related industries. The Company grants credit to customers and does not generally require security for credit granted except in the case of certain international contracts. Procedures are in effect to monitor the credit worthiness of its customers. During 2018, two customers accounted for approximately 23% of net revenue and 56% of net accounts receivable – trade. During 2017, no customers accounted for more than 10% of total revenue and three customers accounted for 53% of net accounts receivable – trade. Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. Such reclassifications had no effect on the Company’s financial position, results of operations or cashflows. See Note 16 for additional information. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU No. 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU No. 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU No. 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). In July 2015, the FASB issued ASU No. 2015-14 which delayed the effective date of ASU No. 2014-09 by one year (effective for annual periods beginning after December 15, 2017). The Company adopted ASU 2014-09, effective January 1, 2018, using the modified retrospective method. The adoption of the standard did not have a material impact on the Company’s revenue recognition policies, other than enhanced disclosures related to the disaggregation of revenues from contracts with customers, the Company’s performance obligations and any significant judgments. See Note 17, Revenue Recognition (ASC 606). In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under ASU No. 2016-02, lessor accounting is largely unchanged. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018 with early application permitted. In February 2018, FASB issued ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842. The amendment clarifies that land easements are within the scope of the new leases standard (ASC 842) and introduces a new transition practical expedient allowing a company to not assess whether existing and expired land easements that were not previously accounted for as leases under current U.S. GAAP (ASC 840) are or contain leases under ASC 842. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to clarify two aspects of Topic 606: (i) identifying performance obligations; and (ii) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for ASU No. 2016-10 are the same as the effective date and transition requirements for ASU No. 2014-09. This standard was adopted effective January 1, 2018, see ASU No. 2014-09 above for additional information. In July 2018, FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases. The amendment provides improvements that clarify specific aspects of the guidance in ASU 2016-02. In August 2018, FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. The amendment provides entities with an additional (and optional) transition method to adopt the new leases standard and provides lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if certain criteria are met. The Company adopted ASU 2016-02 on January 1, 2019. As of the date of this filing, the Company is refining its estimate and anticipates the implementation of this standard will result in an increase to assets and liabilities of approximately between $0.60 million and $0.80 million on January 1, 2019. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ASU No. 2016-12 provides narrow-scope improvements to the guidance on collectability, noncash consideration, and completed contracts at transition. The amendment also provides a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers and is expected to reduce the judgment necessary to comply with Topic 606. The effective date and transition requirements for ASU No. 2016-12 are the same as the effective date and transition requirements for ASU No. 2014-09. This standard was adopted effective January 1, 2018, see ASU No. 2014-09 above for additional information. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. In addition, ASU No. 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU No. 2016-13 is effective for annual periods beginning after December 15, 2019, with early application permitted in annual periods beginning after December 15, 2018. The amendments of ASU No. 2016-13 should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Management is currently evaluating the future impact of ASU No. 2016-13 on the Company’s consolidated financial position, results of operations and disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU No. 2016-15 addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 is effective for reporting periods beginning after December 15, 2017. The Company adopted the provisions of ASU 2016-15 on January 1, 2018. The Company made the accounting policy election to classify dividends received from its equity method investment using the cumulative earnings approach. Accordingly, dividends received are classified as operating cash flows until such time that cumulate dividends exceed cumulative equity in earnings. The adoption of the standard has been applied on a retrospective basis in the accompanying Consolidated Statement of Cash Flows. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. ASU No. 2016-20 allows entities not to make quantitative disclosures about remaining performance obligations in certain cases and requires entities that use any of the new or previously existing optional exemptions to expand their qualitative disclosures. The amendment also clarifies narrow aspects of ASC 606, including contract modifications, contract costs, and the balance sheet classification of items as contract assets versus receivables, or corrects unintended application of the guidance. The adoption of ASU No. 2016-20 as of January 1, 2018 did not have a material impact on the Company’s consolidated financial position, results of operations or disclosures. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU No. 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of a business or as acquisitions (or disposals) of assets. ASU No. 2017-01 is effective for annual periods beginning after December 15, 2018, with early adoption permitted under certain circumstances. The amendments of ASU No. 2017-01 should be applied prospectively as of the beginning of the period of adoption. The Company adopted ASU No. 2017-01 on January 1, 2019. The adoption of this standard had no impact on the Company’s consolidated financial position, results of operations and disclosures, as the adoption is applied on a prospective basis. In January 2017, the FASB issued ASU No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings. The amendments in this update relate to disclosures of the impact of recently issued accounting standards. The SEC staff’s view that a registrant should evaluate ASC updates that have not yet been adopted to determine the appropriate financial disclosures about the potential material effects of the updates on the financial statements when adopted. If a registrant does not know or cannot reasonably estimate the impact of an update, then in addition to making a statement to that effect, the registrant should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact. The staff expects the additional qualitative disclosures to include a description of the effect of the accounting policies expected to be applied compared to current accounting policies. Also, the registrant should describe the status of its process to implement the new standards and the significant implementation matters yet to be addressed. The amendments specifically addressed recent ASC amendments to ASU No. 2016-13, Financial Instruments – Credit Losses, ASU No. 2016-02, Leases, and ASU No. 2014-09, Revenue from Contracts with Customers, although, the amendments apply to any subsequent amendments to guidance in the ASC. ASU No. 2017-03 is effective upon issuance and did not have a significant impact on the Company’s consolidated financial position, results of operations and disclosures. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | (3) Inventories Inventories consisted of the following at December 31, 2018 and 2017. December 31, 2018 December 31, 2017 (in thousands) Raw materials $ 53 $ 2 Work-in-process $ 16 $ - Total inventories $ 69 $ 2 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | ( 4 ) Property, Plant and Equipment Property, plant and equipment consisted of the following at December 31, 2018 and 2017: Category Estimated 2018 2017 (in thousands) Buildings and improvements 15 – 25 $ 146 $ 54 Office equipment and furniture 2 – 7 133 112 Automobiles and trucks 2 – 5 28 33 Machinery and shop equipment 2 – 10 476 568 Total $ 783 $ 767 Less: accumulated depreciation and amortization (231 ) (169 ) Total $ 552 $ 598 Depreciation expense recognized in the year ended December 31, 2018 and 2017 is as follows: 2018 2017 Continuing Operations: (in thousands) Cost of revenue $ 146 $ 84 General and administrative expenses 133 113 Discontinued operations 238 644 $ 517 $ 841 |
Advances to and Investments in
Advances to and Investments in Foreign Joint Venture Operations | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Advances to and Investments in Foreign Joint Venture Operations | ( 5 ) Advances to and Investments in Foreign Joint Venture Operations The Company has a foreign joint venture agreement and holds a 40% interest in a Chinese company, BOMAY, which builds electrical systems for sale in China. The majority partner in this foreign joint venture is a subsidiary of a major Chinese oil company. M&I made an initial investment of $1.00 million in 2006 and made an additional $1.00 million investment in 2007. The Company’s equity income/loss from the foreign joint venture was $0.95 million and $0.43 million for the years ended December 31, 2018 and 2017, respectively. During the years ended December 31, 2018 and 2017, the Company received $1.1 million and $0.78 million, respectively, in dividends from BOMAY. There were no accounts receivable from BOMAY at December 31, 2018 and $0.04 million at December 31, 2017. During 2018 and 2017, the Company also recognized approximately $0.14 million and $0.25 million for each year, respectively, for employee related expenses directly attributable to the foreign joint ventures. Summary financial information of BOMAY in U.S. dollars was as follows at December 31, 2018 and 2017: BOMAY MIEFE 2018 2017 2018 2017 Assets: (in thousands) (in thousands) Total current assets $ 59,124 $ 50,000 $ - $ 121 Total non-current assets 5,742 3,457 - 15 Total assets $ 64,866 $ 53,457 $ - $ 136 Liabilities and equity: Total liabilities 38,732 25,598 - 198 Total joint ventures’ equity 26,134 27,859 - (62 ) Total liabilities and equity $ 64,866 $ 53,457 $ - $ 136 BOMAY MIEFE 2018 2017 2018 2017 (in thousands) (in thousands) Revenue $ 37,244 $ 26,168 $ - $ 89 Gross Profit $ 7,878 $ 5,654 $ - $ 23 Earnings $ 2,381 $ 1,084 $ - $ 55 The Company’s investments in and advances to its foreign joint venture operations were as follows as of December 31, 2018 and 2017: BOMAY* MIEFE 2018 2017 2018 2017 Investments in foreign joint ventures: (in thousands) (in thousands) Balance at beginning and end of year $ 2,033 $ 2,033 $ - $ - Undistributed earnings: Balance at beginning of year 7,967 8,313 - - Equity in earnings (loss) 953 434 - - Dividend distributions (1,127 ) (780 ) - - Balance at end of year 7,793 7,967 - - Foreign currency translation: Balance at beginning of year 737 104 210 213 Change during the year (583 ) 633 (210 ) (3 ) Balance at end of year 154 737 - 210 Total investments at end of year $ 9,980 $ 10,737 $ - $ 210 *Accumulated statutory reserves in equity method investments of $2.8 million at both December 31, 2018 and 2017, respectively, are included in AETI’s consolidated retained earnings. In accordance with the People’s Republic of China, (“PRC”), regulations on enterprises with foreign ownership, an enterprise established in the PRC with foreign ownership is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. The Company accounts for its investment in foreign joint venture operations using the equity method of accounting. Under the equity method, the Company’s share of the joint venture operations earnings or losses is recognized in the consolidated statements of operations as equity income (loss) from foreign joint ventures operations. Joint venture income increases the carrying value of the joint ventures and joint venture losses reduce the carrying value. Dividends received from the joint venture reduce the carrying value. In accordance with our long-lived asset policy, when events or circumstances indicate the carrying amount of an asset may not be recoverable, management tests long-lived assets for impairment. If the estimated future cash flows are projected to be less than the carrying amount, an impairment write-down (representing the carrying amount of the long-lived asset which exceeds the present value of estimated expected future cash flows) would be recorded as a period expense. In making this evaluation, a variety of quantitative and qualitative factors are considered including national and local economic, political and market conditions, industry trends and prospects, liquidity and capital resources and other pertinent factors. Based on this evaluation for this reporting period, the Company does not believe an impairment adjustment is necessary at December 31, 2018 or 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | ( 6 ) Income Taxes The components of loss before income taxes and dividends on preferred stock for the years ended December 31, 2018 and 2017 were as follows: December 31, 2018 2017 (in thousands) United States $ (2,990 ) $ (3,556 ) Foreign 1,620 404 Discontinued operations (896 ) (2,031 ) $ (2,266 ) $ (5,183 ) The components of the provision (benefit) for income taxes by taxing authority for the years ended December 31, 2018 and 2017 were as follows: December 31, 2018 2017 (in thousands) Current provision: Federal $ - $ - State - - Foreign 291 78 Total current provision $ 291 $ 78 Deferred benefit: Federal $ - $ (3,033 ) State - - Foreign - - Total deferred benefit - (3,033 ) $ 291 $ (2,955 ) The Company files income tax returns in the United States Federal jurisdiction and various state jurisdictions. The Company is subject to examination by federal and state tax authorities for fiscal years 2014 through 2018. Significant components of the Company’s deferred federal income taxes at December 31, 2018 and 2017 were as follows: December 31, 2018 2017 (in thousands) Deferred tax assets: Accrued liabilities $ 11 $ 136 Deferred compensation 642 520 Allowance for doubtful accounts - 71 Inventory - 73 Net operating loss 3,430 2,783 Property and equipment - 71 Equity in foreign earnings - - Deferred tax assets 4,083 3,654 Valuation allowance (4,083 ) (3,654 ) Net deferred tax assets $ - $ - The Company’s deferred tax assets are primarily related to net operating loss carry forwards. A valuation allowance was established at December 31, 2018 and 2017 due to uncertainty regarding future realization of deferred tax assets. Our total valuation allowance as of December 31, 2018 and 2017 is $4.1 million and $3.65 million, respectively. The difference between the effective income tax rate reflected in the provision for income taxes and the amounts, which would be determined by applying the statutory income tax rate of 21% and 34% at December 31, 2018 and 2017, respectively, is summarized as follows: December 31, 2018 2017 (in thousands) Benefit from U. S. federal statutory rate $ 287 $ 1,071 Effect of discontinued operations 188 691 Change in valuation allowance (429 ) 4,734 Accrual to return adjustments and other - 235 Foreign income taxes included in equity earnings (113 ) 496 Foreign income taxes (178 ) - Non-deductible business meals and entertainment expenses (46 ) (45 ) Effect of state income taxes - 32 Change in enacted tax rate - (4,259 ) $ (291 ) $ 2,955 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Notes Payable | ( 7 ) Notes Payable The components of notes payable and long-term debt at December 31, 2018 and 2017 are as follows: 2018 2017 (In thousands) Short-term note payable $ 202 $ 203 Current portion of long-term notes payable - 270 Long-term notes payable - 6,230 Principal balance of notes payable 202 6,703 Warrants issued as part of debt refinancing - (365) Loan cost capitalization - (341) Total notes payable, net $ 202 $ 5,997 Principal payments of the short-term notes payable are due in 2019. On March 23, 2017, the Company and its subsidiaries, M&I Electric Industries, Inc. and South Coast Electric Systems, LLC (collectively, the “Sellers”) issued and sold to HD Special-Situations III, L.P. (the “Purchaser”) a $7.00 million principal amount Senior Secured Term Note (the “Note”) with principal of $0.50 million due and paid on June 30, 2017 with the balance due 48 months after issuance for cash at par pursuant to a Note Purchase Agreement (the “Purchase Agreement”). Proceeds from the sale of the Note were used to fully repay and terminate the Company’s prior revolving credit facilities with approximately $1.00 million being available for the Company’s working capital and general business purposes. The Note bore interest at 11.5% per annum payable monthly in arrears and was secured by a first-priority lien on substantially all existing and after-acquired personal property assets and real estate owned by the Sellers (with certain exceptions). The Note was subject to an interest “make-whole” provision under which any prepayment of principal in excess of $1.50 million (the “Prepayment Threshold”) within one year of the date of issuance (the “Make-Whole Period”) would have been subject to the payment premium based on an interest rate of 11.5% per year of the prepayment amount in excess of the Prepayment Threshold for the remaining portion of the Make-Whole Period that would have remained after the prepayment was made. In connection with the Transaction described in Note 16, after the Make-Whole Period on August 12, 2018, the Company was required to repay the Notes and all accrued and unpaid interest totaling $6.4 million. The repayment resulted in an immediate recognition of unamortized loan costs of $0.3 million and unamortized debt discount related to warrants issued in a debt modification, as described below, of $0.4 million, into interest expense totaling $0.7 million. On November 13, 2017, the Company entered into an agreement modifying the terms of the Note. The modification included a waiver of an EBITDA covenant violation as of September 30, 2017 and revisions to the original revenue and EBITDA covenants along with the requirement of minimum principal reductions of $30,000 per month beginning in April 2018. In consideration for the modified terms, the Company issued 500,000 warrants to purchase the Company’s common stock at an exercise price of $2.26 that expire in November 2022. The fair value assigned to the warrants of approximately $0.4 million was recognized as an increase in additional paid-in-capital with a corresponding discount on the Note. The discount was originally accreted through interest expense over the remaining term of the Note; however, as described above, the unamortized discount was immediately recognized as interest expense upon repayment of the Note on August 12, 2018. The fair value of the warrants was calculated using the Black Scholes-Merton pricing model using the following weighted average assumptions, at the grant date: Number of warrants 500,000 Exercise price $ 2.26 Expected volatility of underlying stock 72 % Risk-free interest rate 2.08 % Dividend yield 0 % Expected life of warrants 5 years Weighted-average fair value of warrants $ 0.73 Expiration date November 13, 2022 On June 6, 2017, the Company’s subsidiary, M&I Brazil, entered into a Loan Agreement with the former chairman of AETI. The Loan Agreement provides the Company with a $0.30 million loan facility of which $0.20 million is drawn and is outstanding as of December 31, 2018. All outstanding amounts, including accrued but unpaid interest are due at maturity in June 2019. Under the loan agreement, the interest rate on the loan facility is 10.0%, per annum, payable each quarter. The loan facility is secured by the assets held by M&I Brazil. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | ( 8 ) Leases Corporate Office Lease In December 2013, the Company executed an office lease that covers approximately 13,000 square feet of office space at 1250 Wood Branch Park Drive in Houston, Texas. The term of the lease is 64 months and commenced upon completion of tenant improvements in March 2014. The Company also leased equipment (principally trucks and forklifts) under operating lease agreements that expire at various dates to 2021. All operating leases in the U.S. were assumed by the purchaser of the U.S assets and operations in August 2018 (See Note 16). M&I Brazil leases offices and facilities in three cities in Brazil that are under operating lease agreements. The leases expire at various dates through 2022. During both years December 31, 2018 and 2017, the company recognized rent expense of approximately $0.2 million. Following is a schedule of future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2018: Year Ending December 31, Amount (In thousands) 2019 $ 216 2020 224 2021 233 2022 200 $ 873 |
Stock and Stock-based Compensat
Stock and Stock-based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock and Stock-based Compensation | ( 9 ) Stock and Stock-based Compensation Employee Stock Purchase Plan The Company has adopted an Employee Stock Purchase Plan (“ESPP”) that, as amended and approved by the Stockholders in May 2011, allows the Company to sell up to 125,000 shares of common stock to employees. The employee stock purchases are achieved through accumulated payroll deductions, and are transacted at 95% of the fair market value of the shares, under terms described in the ESPP. During the years ended December 31, 2018 and 2017, the Company issued 7,614 and 7,151 shares of common stock, respectively, in connection with the ESPP. Restricted Stock Units The Company has also adopted the 2007 Employee Stock Incentive Plan (“ESIP”) for the benefit of its employees. The Stockholders’ made available up to 2,200,000 shares of common stock under ESIP, as amended in June 2018. Awards under the ESIP are granted as restricted stock units (“RSUs”) and the number of RSUs awarded is generally subject to the substantial achievement of budgeted performance and other metrics in the year granted. The RSUs do not include the voting rights of the Company’s common stock, and the shares of common stock underlying the RSUs are not considered issued and outstanding until actually vested and issued. In general, the RSU awards convert to common stock on a one to one basis in 25% increments over four years from the grant date subject to a continuing employment obligation. In connection with the sale of the Company’s U.S. operations in August 2018, as discussed in Note 16, most of the Company’s U.S. employees, with the exception of certain key members of management, became employees of Myers Power Products, Inc. (the “Buyer”). Effective with the sale, all RSUs held by employees that continued employment with the Buyer immediately vested. The following table summarizes the activity for unvested restricted stock units for the years ended December 31, 2018 and 2017: Units Weighted Average Fair Value Per RSU Unvested restricted stock units at December 31, 2016 218,412 4.28 Awarded 56,759 1.48 Vested (112,340 ) 3.99 Forfeited (2,289 ) 4.41 Unvested restricted stock units at December 31, 2017 165,120 $ 3.40 Awarded 91,000 1.35 Vested (154,874 ) 2.87 Forfeited (96,215 ) 2.51 Unvested restricted stock units at December 31, 2018 5,031 $ 2.92 Compensation expense of approximately $0.52 million and $0.30 million was recorded in the years ended December 31, 2018 and 2017, respectively, to reflect the fair value of the original RSU’s granted or anticipated to be granted less forfeitures, amortized over the portion of the vesting period occurring during the period. The fair value of the RSUs was based on the closing price of our common stock as reported on the NASDAQ Stock Market on the grant date. Based upon the fair value on the grant date of the number of shares awarded or expected to be awarded, it is anticipated that approximately $20,000 of additional compensation cost will be recognized in future periods through 2021. The weighted average period over which this additional compensation cost will be expensed is 3 years. Board of Directors Deferred Compensation Directors who are not employees of the Company and who do not have a compensatory agreement providing for service as a director of the Company receive a retainer fee payable quarterly. Eligible directors may elect to defer 50% to 100% of their retainer fee, which may be used to acquire common stock of the Company at the fair market value on the date the retainer fee would otherwise be paid, or be paid in cash.. Compensation expense of approximately $0.2 million and $0.08 million was recorded in the years ended December 31, 2018 and 2017 respectively, which is included in general and administrative expenses in the consolidated statements of operations. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Convertible Preferred Stock | ( 1 0 ) Redeemable Convertible Preferred Stock On April 13, 2012, the Company signed a securities purchase agreement (the “Securities Purchase Agreement”) with a private investor for the sale (the “Preferred Stock Financing”) of 1,000,000 shares of the Company’s Series A Convertible Preferred Stock (the “Series A Convertible Preferred Stock”) at $5.00 per share and 325,000 warrants to purchase shares of the Company’s common stock expiring in May 2020. The Series A Convertible Preferred Stock shares are initially convertible into 1,000,000 shares of the Company’s common stock at a conversion price of $5.00 per share. The warrants were issued in two tranches with 125,000 of such warrants at an initial exercise price of $6.00 per share and 200,000 of such warrants at an initial exercise price of $7.00 per share. On May 2, 2012, the Company completed the issuance of the Series A Convertible Preferred Stock and warrants. On April 30, 2012, the Company filed an Articles of Amendment to its Articles of Incorporation designating 1,000,000 shares of the Company’s authorized preferred stock as Series A Convertible Preferred Stock. The Company also entered into a Registration Rights Agreement and Investor Rights Agreement with the private investor. The Series A Convertible Preferred Stock ranks senior to all other equity instruments of the Company, including the Company’s common stock. The Series A Convertible Preferred Stock accrues cumulative dividends at a rate of 6% per annum, whether or not dividends have been declared by the Board of Directors and whether or not there are profits, surplus or other funds available for the payment of such dividends. The Company may pay such dividends in shares of the Company’s common stock based on the then current market price of the common stock. Prior to the repricing agreement discussed below, at any time following a material default by the Company, as defined in the Securities Purchase Agreement, or April 30, 2017, the holders of a majority of the outstanding shares of the Series A Convertible Preferred Stock may require the Company to redeem the Series A Convertible Preferred Stock at a redemption price equal to the lessor of (i) the liquidation preference per share (initially $5.00 per share, subject to adjustments for certain future equity transactions defined in the Securities Purchase Agreement) and (ii) the fair market value of the Series A Convertible Preferred Stock per share, as determined in good faith by the Company’s Board of Directors. As of December 31, 2018 and 2017, the redemption price per share was $5.00 in both years. The redemption price, plus any accrued and unpaid dividends, shall be payable in 36 equal monthly installments plus interest at an annual rate of 6%. The preferred stock and warrants were issued for a total of $5.0 million. This amount was allocated to the preferred stock and warrants based on their relative fair values. The fair value of the warrants was calculated using the Black Scholes-Merton pricing model using the following weighted average assumptions, at the grant date: Number of warrants 325,000 Exercise price $ 6.62 Expected volatility of underlying stock 74 % Risk-free interest rate 1.62 % Dividend yield 0 % Expected life of warrants 8 years Weighted-average fair value of warrants $ 3.11 Expiration date May 2, 2020 Based on these calculations and the actual consideration, the warrants were valued at $840,000 and the Series A Convertible Preferred Stock was valued at $4,160,000. The initial values allocated to the warrants were recognized as a discount on the Series A Convertible Preferred Stock, with a corresponding charge to additional paid-in capital. The discount related to the warrants is accreted to retained earnings through the scheduled redemption date of the mandatorily redeemable Series A Convertible Preferred Stock. Discount accretion for both years ended December 31, 2018 and 2017 was approximately $0.06 million. At both December 31, 2018 and December 31, 2017, the Company had accrued but unpaid dividends totaling $0.08 million, respectively, which is included in the accounts payable and other accrued expenses in the consolidated balance sheets. In connection with the issuance of the Company’s senior secured Term Note, described in Note 7, the Company has agreed with the Purchaser of the Term Note and the holder of the Preferred Stock (the “Holder”) not to declare, authorize or pay any cash dividends on the Preferred Stock until the earlier of (i) March 22, 2018, or (ii) the date the obligations under the Note Purchase Agreement have been paid in full (the “Standstill Period”), without the prior written consent of the Purchaser. Following the expiration of the Standstill Period, for so long as the obligations under the Note Purchase Agreement remain outstanding, the Company may, at its sole discretion, declare, authorize or pay dividends in cash on the Preferred Stock so long as no event of default exists under the Term Note or would result therefrom. The Holder also agreed that it shall not exercise its rights to require the Company to redeem any of the Preferred Stock during the Standstill Period. Following the expiration of the Standstill Period, so long as the obligations under the Note Purchase Agreement remain outstanding, the Holder may compel the Company to redeem shares of Preferred Stock provided no event of default exists under the Term Note or would result from such redemption. In consideration for the Holder’s consent to the foregoing restrictions on the payment of cash dividends on or redemption of the Preferred Stock, the Company entered into a repricing agreement with the Holder (the “Repricing Agreement”) on August 1, 2017. Pursuant to the repricing agreement, each share of Series A Preferred Stock will be initially convertible, at the option of the holder, into one (1) share of common stock at a conversion price of $2.26 per share of common stock, so that the Series A Preferred Stock sold to the Holder are currently convertible into an aggregate of 2,212,389 shares of common stock as of December 31, 2017. In addition, Pursuant to the Repricing Agreement, the Series A Warrants sold to the Holder is exercisable for 125,000 shares of common stock at an initial exercise price of $2.72 per share and the Series B Warrants sold to the Holder is exercisable for 200,000 shares of common stock at an initial exercise price of $3.17 per share. In order to comply with the rules of the NASDAQ Stock Market, the Repricing Agreement prohibits the issuance of more than 19.99% of our common stock or voting power outstanding to the Holder as of the date of the Repricing Agreement without stockholder approval. The Company has agreed to seek the approval of its stockholders as soon as practicable. In the event that stockholder approval is received and the Holder were to convert all of its Series A Preferred Stock into common stock and exercised all of its Common Stock Purchase Warrants for cash, the Holder would be issued more than 19.99% of our common stock and voting power as of the date of the Repricing Agreement. This agreement was approved by a committee of the Board of Directors comprised solely of independent directors. |
Employee Benefit and Bonus Plan
Employee Benefit and Bonus Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit and Bonus Plans | (1 1 ) Employee Benefit and Bonus Plans The employees of the Company are eligible to participate in a 401(k) plan sponsored by the Company. The plan is a defined contribution 401(k) Savings and Profit Sharing Plan (the “Plan”) that covers all full-time employees who meet certain age and service requirements. The Company may provide discretionary contributions to the Plan as determined by the Board of Directors. For the years ended December 31, 2018 and 2017, the Company made no contributions to the Plan. The Company maintains an “Executive Performance” bonus plan, which covers approximately 4 key employees. Under the plan, the participants receive a percentage of a bonus pool based primarily on pre-tax income in relation to budget. The Board of Directors approves the Executive Performance plan at the beginning of each year. During the years ended December 31, 2018 and 2017, the Company recorded approximately $0.40 million and $0.30 million under the plan, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (1 2 ) Related Party Transactions During 2018 and 2017, the Company received legal advice on various Company matters from a law firm related to a director of the Company. The Company incurred expenses totaling approximately $0.02 million and $0.04 million related to these services during 2018 and 2017, respectively, which is included in general and administrative expenses in the accompanying Consolidated Statements of Operations. As of December 31, 2018 and 2017, the outstanding payable balance for services rendered by this law firm was $0.05 million and $0.04 million, respectively. In August 2018, the Board of Directors approved the issuance of 150,000 shares to a director of the Company as compensation for additional work performed in regard to potential corporate transactions. During 2018, the Company recognized approximately $0.07 million of compensation expense related to this issuance. The Company, upon approval from the Board, has an employment agreement with the former Executive Chairman of the Board of Directors (“Executive Chairman”), whereby the Company compensated the Executive Chairman $0.15 million and $0.09 million during 2018 and 2017, respectively. Under the terms of the agreement, the Executive Chairman will assist in international joint venture relations and operations, technical developments, manufacturing and transformative business development projects and other special projects assigned by the Company. On June 6, 2017, the Company’s subsidiary, M&I Brazil, entered into a Loan Agreement with the former Executive Chairman of AETI. The Loan Agreement provides the Company with a $0.30 million loan facility of which $0.20 million is drawn and is outstanding as of December 31, 2018. All outstanding amounts, including accrued but unpaid interest are due at maturity in June 2019, |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | ( 1 3 ) Commitments and Contingencies On September 1, 1999, the Company created a group medical and hospitalization minimum premium insurance program. For the policy year ended August 2017, the Company is liable for all claims each year up to $70,000 per insured, or $1.7 million in the aggregate. An outside insurance company insures any claims in excess of these amounts. The Company’s expense for this minimum premium insurance totaled $0.6 million and $0.9 million during the years ended December 31, 2018 and 2017. Insurance reserves included in accounts payable and accrued liabilities at December 31, 2017 consolidated balance sheet was approximately $0.13 million. After the sale of the U.S. operations of M&I Electric in August 2018 discussed in Note 16 below, the majority of the Company’s U.S. employees became employees of the Buyer. At that time the Company changed to a fully-insured insurance program therefore there is no further uninsured exposure as of December 31, 2018. In the fourth quarter of 2018, the Company received notification of a potential liability of $4.3 million with the asset purchase agreement completed in August 2018. Please see Note 16 for further explanation of this possible obligation. |
Loss Per Common Share
Loss Per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | ( 1 4 ) Loss Per Common Share Basic earnings (loss) per common share is based on the weighted average number of common shares outstanding for the year ended December 31, 2018 and 2017. Diluted earnings (loss) per common share is based on the weighted average number of common shares outstanding, plus the incremental shares that would have been outstanding upon the assumed exercise of all potentially dilutive stock options and other units subject to anti-dilution limitations. Potentially dilutive securities not considered in the calculation of diluted earnings per share because losses caused their effect is anti-dilutive, are as follows at December 31, 2018 and 2017: Year Ended December 31, 2018 2017 Convertible preferred stock 2,212,389 2,212,389 Stock warrants 825,000 825,000 Restricted units 5,031 165,210 3,042,420 3,202,509 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | (15 ) Intangible Assets Intangible Assets at December 31, 2017 Useful Cost Accumulated Net Value (in thousands) Intellectual property 3 $ 322 $ 322 $ - License 5 358 118 240 License - 218 - 218 $ 898 $ 440 $ 458 In 2018, the intangible assets were sold with the U.S. assets as part of the asset purchase agreement referred to below. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | (1 6 ) Discontinued Operations On August 12, 2018 the Company sold substantially all of the U.S. business assets and operations of M&I Electric (“M&I) to a newly formed subsidiary of Myers Power Products, Inc. (“Buyer”). The newly formed subsidiary was established by the Buyer to acquire the assets of M&I pursuant to the Asset Purchase Agreement (the “Transaction”) between the Company and the Buyer. The Transaction included a total purchase price of approximately $18.5 million based on $10.1 million of cash consideration plus debt assumed by the buyer of $8.4 million. Under the terms of the Transaction, the Company transferred $740,000 into an escrow account to provide security for certain of the Company’s indemnification obligations for a six-month period following closing. A portion of the funds provided by the Transaction were required to be used to repay the Note and related accrued interest totaling approximately $6.5 million. The contractual terms of the Transaction include a provision for true-up of the net working capital, estimated as of the date of closing, to actual working capital as calculated by the Buyer and agreed to by the Seller. Any difference in the actual (conclusive) net working capital in relation to the estimated working capital at closing results in an adjustment to the purchase price. In October 2018, the Company received notification from the Buyer of their actual working capital calculation. In the notification, the Buyer has communicated a decrease of approximately $4.3 million in net working capital, in comparison to the estimated working capital used at contract closing. The contractual terms of the Transaction provide that in the event the Buyer and Seller cannot agree to a conclusive net working capital adjustment, then all items remaining in dispute shall be submitted by either one of the parties within thirty (30) calendar days after the expiration of the resolution period to a national or regional independent accounting firm mutually acceptable to Buyer and Seller (the "Neutral Arbitrator"). The Neutral Arbitrator shall act as an arbitrator to determine the conclusive net working capital. The conclusive net working capital, once determined, may result in a purchase price adjustment due to the Buyer or to the Company as Seller. The Company and the Buyer of M&I electric currently have a significant disagreement with regard to the working capital adjustment calculation and the Company has not received documentation sufficient to support the Buyer’s position. As such, no adjustments have been considered in determining the gain on the sale of assets reported as of December 31, 2018. Any purchase price adjustment related to the conclusive determination of the net working capital adjustment, if any, will be reflected at the date of such determination. Any legal fees incurred related to this disagreement will be expensed as incurred. At December 31, 2017, the assets and liabilities sold in the Transaction have been reclassified and reflected as held for sale in the Company’s Consolidated Balance Sheets. The operating results and cash flows of the business sold have also been reclassified and reflected as discontinued operations in the Company’s Consolidated Statements of Operations and Consolidated Statements of Cash Flows for all periods presented. Following is an analysis of assets and liabilities of M&I reclassified as held for sale at December 31, 2017: Assets Current assets: Accounts receivable-trade, net $ 5,266 Inventories, net 1,325 Contract assets 5,841 Prepaid expenses and other current assets 434 Total current portion of assets held for sale 12,866 Property, plant and equipment, net 6,323 Intangibles 458 Retainage receivables 785 Total non-current assets held for sale 7,566 Total assets held for sale $ 20,432 Liabilities Current liabilities: Accounts payable and accrued liabilities $ 11,616 Short-term note payable 150 Contract liabilities 1,792 Total liabilities held for sale $ 13,558 The following is an analysis of the results of operations of the discontinued business of M&I for the years ended December 31, 2018 and 2017: Year ended December 31, 2018 2017 Net sales $ 17,899 $ 41,414 Cost of sales 20,358 40,136 Selling, general and administrative expenses 1,660 2,255 Interest expense 1,298 1,054 Loss from discontinued operations (5,417 ) (2,031 ) Gain on sale of discontinued operations 4,521 - Loss from discontinued operations $ (896 ) $ (2,031 ) Earnings (loss) per share information: Basic and diluted $ (0.10 ) $ (0.24 ) The following is an analysis of assets sold and liabilities assumed by the Buyer and the related gain on the sale from the Transaction: Assets sold: Current assets: Accounts receivable-trade, net $ 3,360 Inventories, net 1,145 Contract assets 2,957 Prepaid expenses and other current assets 117 Total current portion of assets held for sale 7,579 Property, plant and equipment, net 5,937 Intangibles 497 Total non-current assets held for sale 6,506 Total assets held for sale $ 14,013 Liabilities assumed: Current liabilities: Accounts payable and accrued liabilities $ 5,664 Contract liabilities 2,752 Total current liabilities 8,416 Net assets sold 5,597 Proceeds received after payment of transaction costs of $2,180 10,118 Gain on disposition $ 4,521 Following is an analysis of supplemental cashflow information of the discontinued business of M&I for the years ended December 31, 2018 and 2017: 2018 2017 (in thousands) Depreciation $ 238 $ 644 Capital expenditures 85 738 |
Revenue Recognition (ASC 606)
Revenue Recognition (ASC 606) | 12 Months Ended |
Dec. 31, 2018 | |
Disaggregation Of Revenue [Abstract] | |
Revenue Recognition (ASC 606) | (17) Revenue Recognition (ASC 606) In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This ASU supersedes the revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance and creates ASC Topic 606. This ASU provides guidance that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. On January 1, 2018 the Company adopted ASC 606 on a modified retrospective basis and applied the guidance to all of its contracts. As a result of the Company’s adoption, there were no changes to the timing of the recognition or measurement of revenue, and there was no cumulative effect of adoption as of January 1, 2018. Therefore, the only changes to the financial statements related to the adoption is in the footnote disclosures as included herein. Revenue is measured as consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Amounts are billed upon completion of service or transfer of a product and are generally due within 30 days. Revenues from contracts with customers are disaggregated into the following primary sources: services and products. Service revenue is generated from time and material projects and consulting services. The Company generally establishes a master services agreement with each customer and provides associated services on a work order basis, generally by the hour for services performed. The majority of the Company’s contracts with customers are short-term in nature and are recognized as the services are performed, as the transfer of control to the customer and the Company’s right to payment corresponds directly to the services performed to date, at all times throughout completion of the contract. Product revenue is generated from the resell of electrical and instrumentation equipment. Product contracts are established by agreeing on a sales price or transaction price for the related item. Revenue is recognized when the customer has taken control of the product. Payment terms for product contracts are generally thirty days from the receipt of the invoice. Product revenue is recognized upon delivery of the related item to the customer, at which point the customer controls the product and the Company has an unconditional right to payment. All outstanding accounts receivable, net of allowance, on the consolidated balance sheet are typically due and collected within the next 12 months. Additionally, each month end the Company records unbilled revenue (a contract asset) based upon completed and partially completed performance obligations through month end providing the Company an unconditional right to payment for the services performed or products sold for the related period. The Company has no other material contract assets or liabilities and contract costs. Taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions between the Company and its customers, such as sales, use and value-added taxes, are excluded from revenue. The table below presents revenue disaggregated by source, for the years ended December 31, 2018 and 2017: 2018 2017 (in thousands) Services $ 6,455 $ 5,093 Products 1,136 623 $ 7,591 $ 5,716 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | (18) Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following at December 31, 2018 and 2017: 2018 2017 (in thousands) Trade accounts payable $ 260 $ 668 Other accounts payable 187 136 Accrued salaries and compensation 647 454 Accrued payroll taxes 121 120 Other accrued non-income related taxes 89 67 Accrued legal and professional fees 979 156 Deferred revenue 60 27 Other accrued liabilities 135 91 $ 2,478 $ 1,719 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of AETI and its wholly-owned subsidiaries, M&I and M&I Brazil. Significant intercompany accounts and transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates made by management include: (1) Estimates of the provision for doubtful accounts (2) Estimated useful lives of property and equipment (3) Valuation allowances related to deferred tax assets As future events and their effects cannot be determined with absolute certainty, actual results may differ from the estimates used in preparing the accompanying consolidated financial statements. Significant estimates and assumptions are required as part of determining inventory and accounts receivable valuation, estimating depreciation, amortization and recoverability of long-lived assets, establishing self-insurance, warranty, legal and other reserves, performing intangible impairment analyses, and in establishing valuation allowances on deferred income tax assets and reserves for tax examination exposures. |
Financial Instruments | Financial Instruments The Company includes fair value information in the notes to the consolidated financial statements when the fair value of its financial instruments is different from the book value. When the book value approximates fair value, no additional disclosure is made, which is the case for financial instruments outstanding as of December 31, 2018 and 2017. The Company assumes the book value of those financial instruments that are classified as current approximates fair value because of the short maturity of these instruments. For non-current financial instruments, the Company uses quoted market prices or, to the extent that there are no available quoted market prices, market prices for similar instruments. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of liquid investments with original maturities of three months or less. Cash balances, which routinely exceed Federal Deposit Insurance Corporation limits, are maintained in JP Morgan Chase Bank and Frost Bank. These institutions were selected by management based on their financial stability. The company has experienced no losses on deposits. |
Short-term Investments | Short-term Investments Short-term investments consist of any fund held in certificates of deposits with original maturities greater than three months and investments in debt and equity securities with maturity of one year or less. |
Accounts Receivable and Allowance for Bad Debts | Accounts Receivable and Allowance for Bad Debts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The estimate is based on management’s assessment of the collectability of specific customer accounts and includes consideration for credit worthiness and financial condition of those specific customers. The Company also reviews historical experience with the customer, the general economic environment and the aging of its receivables. The Company records an allowance to reduce receivables to the amount it reasonably believes to be collectible. Based on this assessment, management believes the allowance for doubtful accounts is adequate. |
Inventories | Inventories Inventories are stated at the lower of cost or market, with material value determined using an average cost method. At December 31, 2018 and 2017, inventory is primarily raw materials for use on service jobs in Brazil. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Expenditures for repairs and maintenance are expensed as incurred while renewals and betterments are capitalized. Depreciation is calculated on the straight-line basis over the estimated useful lives of the assets after giving effect to salvage values. |
Long-lived Assets | Long-lived Assets If events or circumstances indicate the carrying amount of an asset may not be recoverable, including intangible assets, management tests long-lived assets for impairment. If the estimated future cash flows are projected to be less than the carrying amount, an impairment write-down (representing the carrying amount of the long-lived asset which exceeds the present value of estimated expected future cash flows) would be recorded as a period expense. Events that would trigger an impairment test include the following: • A significant decrease in the market price of a long-lived asset. • A significant change in the use of long-lived assets or in its physical condition. • A significant change in the business climate that could affect an assets value. • An accumulation of cost significantly greater than the amount originally expected to acquire or construct a long-lived asset. • A current period operating or cash flow loss combined with a history of such losses or a forecast demonstrating continued losses associated with the use of a long-lived asset. • An expectation to sell or otherwise dispose of a long-lived asset significantly before the end of its estimated useful life. Based on management’s reviews during each of the years ended December 31, 2018 and 2017, there were no events or circumstances that caused management to believe that impairments were necessary. |
Income Taxes | Income Taxes The Company uses the asset and liability method to account for income taxes. Under this method of accounting for income taxes, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates and laws that will be in effect when the differences are expected to be reported to the taxing authority. The Company also records any financial statement recognition and disclosure requirements for uncertain tax positions taken or expected to be taken in its tax return. Financial statement recognition of the tax position is dependent on an assessment of a 50% or greater likelihood that the tax position will be sustained upon examination, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions are recorded as interest expense in the accompanying consolidated statements of operations. |
Foreign Currency Gains and Losses | Foreign Currency Gains and Losses Foreign currency translations are included as a separate component of comprehensive income (loss). The Company has determined the local currency of its foreign subsidiary and foreign joint ventures to be the functional currency. In accordance with Accounting Standards Codification (ASC 830), the assets and liabilities of the foreign equity investees and foreign subsidiary, denominated in foreign currency, are translated into United States dollars at exchange rates in effect at the consolidated balance sheet date and net sales and expenses are translated at the average exchange rate for the period. Related translation adjustments are reported as comprehensive income (loss), net of deferred income taxes, which is a separate component of stockholders’ equity, whereas gains and losses resulting from foreign currency transactions are included in results of operations. |
Revenue Recognition | Revenue Recognition The Company records net sales from its time and material projects on a completed service basis after customer acknowledgement that the service has been completed and accepted. In addition, the Company sells certain purchased parts and products. These net sales are recorded when the product is shipped and title passes to the customer. On January 1, 2018, the Company adopted ASC 606 on a modified retrospective basis and applied the guidance to all of its contracts. As a result of the Company’s adoption, there were no changes to the timing of the recognition or measurement of revenue, and there was no cumulative effect of adoption as of January 1, 2018. See Note 17, Revenue Recognition (ASC 606) for the Company’s policy effective January 1, 2018. |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs Shipping and handling fees, if billed to customers, are included in net sales. Shipping and handling costs associated with inbound freight are expensed as incurred. Shipping and handling costs associated with outbound freight are classified as cost of sales. |
Uses and Sources of Liquidity | Uses and Sources of Liquidity The Company’s primary need for liquidity is to fund working capital requirements of the Company’s businesses, capital expenditures and for general corporate purposes, including debt repayment. The Company has incurred losses and experienced negative operating cash flows for the past several years, and accordingly, the Company has taken a number of actions to continue to support its operations and meet its obligations. During 2017, the Company refinanced its outstanding loans which at that time provided approximately $1.0 million of working capital. In addition, the Board of Directors of the Company created a special committee to address strategic initiatives that include addressing liquidity. During 2018, the Company continued to face a challenging competitive environment and while it continues to focus on its overall profitability, including managing expenses, it reported a loss in 2018 and was required to fund cash used in operating activities with cash from investing and financing activities. Going forward, the Company expects to generate additional liquidity from strategic initiatives including monetization of assets and additional debt and equity financing actions. The Company expects that these actions will be executed in alignment with the anticipated timing of its liquidity needs. In August the Company closed on a sale of its U.S. operations. The Company expects to continue to optimize international operations including expansion of its service business in Brazil and diversification of its joint venture operations in China. In December 2018, the Company signed an agreement to acquire Stabilis Energy for stock, pending stock holder approval in 2019. The Company’s historical operating results indicate substantial doubt exists related to its ability to continue as a going concern. However, the Company believes it is probable that the actions discussed above will occur and mitigate the substantial doubt raised by its historical operating results and satisfy its estimated liquidity needs 12 months from the issuance of the financial statements. However, the Company cannot predict, with certainty, the outcome of its actions to generate liquidity, including the availability of additional debt financing, or whether such actions would generate the expected liquidity as currently planned. In addition, Redeemable Preferred Stock contains certain limitations on our ability to sell assets, which could impact our ability to complete asset sale transactions or our ability to use proceeds from those transactions to fund our operations. Therefore, any planned actions must take into account the ability to transact within any applicable restrictions under these agreements. If the Company continues to experience operating losses and is not able to generate additional liquidity through the mechanisms described above or through some combination of other actions, while not expected, it may not be able to access additional liquidity and we might need to secure additional sources of funds, which may or may not be available to us. Additionally, a failure to generate additional liquidity could negatively impact the Company’s access to materials or services that are important to the operation of its business. |
Concentration of Market Risk | Concentration of Market Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable. The Company’s market risk is dependent primarily on the strength of the oil and gas and energy-related industries. The Company grants credit to customers and does not generally require security for credit granted except in the case of certain international contracts. Procedures are in effect to monitor the credit worthiness of its customers. During 2018, two customers accounted for approximately 23% of net revenue and 56% of net accounts receivable – trade. During 2017, no customers accounted for more than 10% of total revenue and three customers accounted for 53% of net accounts receivable – trade. |
Reclassifications | Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. Such reclassifications had no effect on the Company’s financial position, results of operations or cashflows. See Note 16 for additional information. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU No. 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU No. 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU No. 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). In July 2015, the FASB issued ASU No. 2015-14 which delayed the effective date of ASU No. 2014-09 by one year (effective for annual periods beginning after December 15, 2017). The Company adopted ASU 2014-09, effective January 1, 2018, using the modified retrospective method. The adoption of the standard did not have a material impact on the Company’s revenue recognition policies, other than enhanced disclosures related to the disaggregation of revenues from contracts with customers, the Company’s performance obligations and any significant judgments. See Note 17, Revenue Recognition (ASC 606). In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under ASU No. 2016-02, lessor accounting is largely unchanged. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018 with early application permitted. In February 2018, FASB issued ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842. The amendment clarifies that land easements are within the scope of the new leases standard (ASC 842) and introduces a new transition practical expedient allowing a company to not assess whether existing and expired land easements that were not previously accounted for as leases under current U.S. GAAP (ASC 840) are or contain leases under ASC 842. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to clarify two aspects of Topic 606: (i) identifying performance obligations; and (ii) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for ASU No. 2016-10 are the same as the effective date and transition requirements for ASU No. 2014-09. This standard was adopted effective January 1, 2018, see ASU No. 2014-09 above for additional information. In July 2018, FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases. The amendment provides improvements that clarify specific aspects of the guidance in ASU 2016-02. In August 2018, FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. The amendment provides entities with an additional (and optional) transition method to adopt the new leases standard and provides lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if certain criteria are met. The Company adopted ASU 2016-02 on January 1, 2019. As of the date of this filing, the Company is refining its estimate and anticipates the implementation of this standard will result in an increase to assets and liabilities of approximately between $0.60 million and $0.80 million on January 1, 2019. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ASU No. 2016-12 provides narrow-scope improvements to the guidance on collectability, noncash consideration, and completed contracts at transition. The amendment also provides a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers and is expected to reduce the judgment necessary to comply with Topic 606. The effective date and transition requirements for ASU No. 2016-12 are the same as the effective date and transition requirements for ASU No. 2014-09. This standard was adopted effective January 1, 2018, see ASU No. 2014-09 above for additional information. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. In addition, ASU No. 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU No. 2016-13 is effective for annual periods beginning after December 15, 2019, with early application permitted in annual periods beginning after December 15, 2018. The amendments of ASU No. 2016-13 should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Management is currently evaluating the future impact of ASU No. 2016-13 on the Company’s consolidated financial position, results of operations and disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU No. 2016-15 addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 is effective for reporting periods beginning after December 15, 2017. The Company adopted the provisions of ASU 2016-15 on January 1, 2018. The Company made the accounting policy election to classify dividends received from its equity method investment using the cumulative earnings approach. Accordingly, dividends received are classified as operating cash flows until such time that cumulate dividends exceed cumulative equity in earnings. The adoption of the standard has been applied on a retrospective basis in the accompanying Consolidated Statement of Cash Flows. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. ASU No. 2016-20 allows entities not to make quantitative disclosures about remaining performance obligations in certain cases and requires entities that use any of the new or previously existing optional exemptions to expand their qualitative disclosures. The amendment also clarifies narrow aspects of ASC 606, including contract modifications, contract costs, and the balance sheet classification of items as contract assets versus receivables, or corrects unintended application of the guidance. The adoption of ASU No. 2016-20 as of January 1, 2018 did not have a material impact on the Company’s consolidated financial position, results of operations or disclosures. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU No. 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of a business or as acquisitions (or disposals) of assets. ASU No. 2017-01 is effective for annual periods beginning after December 15, 2018, with early adoption permitted under certain circumstances. The amendments of ASU No. 2017-01 should be applied prospectively as of the beginning of the period of adoption. The Company adopted ASU No. 2017-01 on January 1, 2019. The adoption of this standard had no impact on the Company’s consolidated financial position, results of operations and disclosures, as the adoption is applied on a prospective basis. In January 2017, the FASB issued ASU No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings. The amendments in this update relate to disclosures of the impact of recently issued accounting standards. The SEC staff’s view that a registrant should evaluate ASC updates that have not yet been adopted to determine the appropriate financial disclosures about the potential material effects of the updates on the financial statements when adopted. If a registrant does not know or cannot reasonably estimate the impact of an update, then in addition to making a statement to that effect, the registrant should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact. The staff expects the additional qualitative disclosures to include a description of the effect of the accounting policies expected to be applied compared to current accounting policies. Also, the registrant should describe the status of its process to implement the new standards and the significant implementation matters yet to be addressed. The amendments specifically addressed recent ASC amendments to ASU No. 2016-13, Financial Instruments – Credit Losses, ASU No. 2016-02, Leases, and ASU No. 2014-09, Revenue from Contracts with Customers, although, the amendments apply to any subsequent amendments to guidance in the ASC. ASU No. 2017-03 is effective upon issuance and did not have a significant impact on the Company’s consolidated financial position, results of operations and disclosures. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following at December 31, 2018 and 2017. December 31, 2018 December 31, 2017 (in thousands) Raw materials $ 53 $ 2 Work-in-process $ 16 $ - Total inventories $ 69 $ 2 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following at December 31, 2018 and 2017: Category Estimated 2018 2017 (in thousands) Buildings and improvements 15 – 25 $ 146 $ 54 Office equipment and furniture 2 – 7 133 112 Automobiles and trucks 2 – 5 28 33 Machinery and shop equipment 2 – 10 476 568 Total $ 783 $ 767 Less: accumulated depreciation and amortization (231 ) (169 ) Total $ 552 $ 598 |
Schedule of Depreciation Expense Recognized | Depreciation expense recognized in the year ended December 31, 2018 and 2017 is as follows: 2018 2017 Continuing Operations: (in thousands) Cost of revenue $ 146 $ 84 General and administrative expenses 133 113 Discontinued operations 238 644 $ 517 $ 841 |
Advances to and Investments i_2
Advances to and Investments in Foreign Joint Venture Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Schedule of Financial Information of Foreign Joint Venture | Summary financial information of BOMAY in U.S. dollars was as follows at December 31, 2018 and 2017: BOMAY MIEFE 2018 2017 2018 2017 Assets: (in thousands) (in thousands) Total current assets $ 59,124 $ 50,000 $ - $ 121 Total non-current assets 5,742 3,457 - 15 Total assets $ 64,866 $ 53,457 $ - $ 136 Liabilities and equity: Total liabilities 38,732 25,598 - 198 Total joint ventures’ equity 26,134 27,859 - (62 ) Total liabilities and equity $ 64,866 $ 53,457 $ - $ 136 BOMAY MIEFE 2018 2017 2018 2017 (in thousands) (in thousands) Revenue $ 37,244 $ 26,168 $ - $ 89 Gross Profit $ 7,878 $ 5,654 $ - $ 23 Earnings $ 2,381 $ 1,084 $ - $ 55 |
Schedule of Investments in and Advances to Foreign Joint Venture Operations | The Company’s investments in and advances to its foreign joint venture operations were as follows as of December 31, 2018 and 2017: BOMAY* MIEFE 2018 2017 2018 2017 Investments in foreign joint ventures: (in thousands) (in thousands) Balance at beginning and end of year $ 2,033 $ 2,033 $ - $ - Undistributed earnings: Balance at beginning of year 7,967 8,313 - - Equity in earnings (loss) 953 434 - - Dividend distributions (1,127 ) (780 ) - - Balance at end of year 7,793 7,967 - - Foreign currency translation: Balance at beginning of year 737 104 210 213 Change during the year (583 ) 633 (210 ) (3 ) Balance at end of year 154 737 - 210 Total investments at end of year $ 9,980 $ 10,737 $ - $ 210 *Accumulated statutory reserves in equity method investments of $2.8 million at both December 31, 2018 and 2017, respectively, are included in AETI’s consolidated retained earnings. In accordance with the People’s Republic of China, (“PRC”), regulations on enterprises with foreign ownership, an enterprise established in the PRC with foreign ownership is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Loss before Income Taxes and Dividends on Preferred Stock | The components of loss before income taxes and dividends on preferred stock for the years ended December 31, 2018 and 2017 were as follows: December 31, 2018 2017 (in thousands) United States $ (2,990 ) $ (3,556 ) Foreign 1,620 404 Discontinued operations (896 ) (2,031 ) $ (2,266 ) $ (5,183 ) |
Components of Provision (benefit) for Income Taxes by Taxing Authority | The components of the provision (benefit) for income taxes by taxing authority for the years ended December 31, 2018 and 2017 were as follows: December 31, 2018 2017 (in thousands) Current provision: Federal $ - $ - State - - Foreign 291 78 Total current provision $ 291 $ 78 Deferred benefit: Federal $ - $ (3,033 ) State - - Foreign - - Total deferred benefit - (3,033 ) $ 291 $ (2,955 ) |
Components of Deferred Federal Income Taxes | Significant components of the Company’s deferred federal income taxes at December 31, 2018 and 2017 were as follows: December 31, 2018 2017 (in thousands) Deferred tax assets: Accrued liabilities $ 11 $ 136 Deferred compensation 642 520 Allowance for doubtful accounts - 71 Inventory - 73 Net operating loss 3,430 2,783 Property and equipment - 71 Equity in foreign earnings - - Deferred tax assets 4,083 3,654 Valuation allowance (4,083 ) (3,654 ) Net deferred tax assets $ - $ - |
Summary of Difference Between Effective Income Tax Rate Determined by Applying Statutory Income Tax Rate | The difference between the effective income tax rate reflected in the provision for income taxes and the amounts, which would be determined by applying the statutory income tax rate of 21% and 34% at December 31, 2018 and 2017, respectively, is summarized as follows: December 31, 2018 2017 (in thousands) Benefit from U. S. federal statutory rate $ 287 $ 1,071 Effect of discontinued operations 188 691 Change in valuation allowance (429 ) 4,734 Accrual to return adjustments and other - 235 Foreign income taxes included in equity earnings (113 ) 496 Foreign income taxes (178 ) - Non-deductible business meals and entertainment expenses (46 ) (45 ) Effect of state income taxes - 32 Change in enacted tax rate - (4,259 ) $ (291 ) $ 2,955 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Instrument [Line Items] | |
Components of Notes Payable and Long-Term Debt | The components of notes payable and long-term debt at December 31, 2018 and 2017 are as follows: 2018 2017 (In thousands) Short-term note payable $ 202 $ 203 Current portion of long-term notes payable - 270 Long-term notes payable - 6,230 Principal balance of notes payable 202 6,703 Warrants issued as part of debt refinancing - (365) Loan cost capitalization - (341) Total notes payable, net $ 202 $ 5,997 |
Warrant | |
Debt Instrument [Line Items] | |
Warrants Calculated Using the Black Scholes Merton Pricing Model | The fair value of the warrants was calculated using the Black Scholes-Merton pricing model using the following weighted average assumptions, at the grant date: Number of warrants 500,000 Exercise price $ 2.26 Expected volatility of underlying stock 72 % Risk-free interest rate 2.08 % Dividend yield 0 % Expected life of warrants 5 years Weighted-average fair value of warrants $ 0.73 Expiration date November 13, 2022 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments Required under Operating Leases | Following is a schedule of future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2018: Year Ending December 31, Amount (In thousands) 2019 $ 216 2020 224 2021 233 2022 200 $ 873 |
Stock and Stock-based Compens_2
Stock and Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Unvested Restricted Stock Units | The following table summarizes the activity for unvested restricted stock units for the years ended December 31, 2018 and 2017: Units Weighted Average Fair Value Per RSU Unvested restricted stock units at December 31, 2016 218,412 4.28 Awarded 56,759 1.48 Vested (112,340 ) 3.99 Forfeited (2,289 ) 4.41 Unvested restricted stock units at December 31, 2017 165,120 $ 3.40 Awarded 91,000 1.35 Vested (154,874 ) 2.87 Forfeited (96,215 ) 2.51 Unvested restricted stock units at December 31, 2018 5,031 $ 2.92 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Preferred Stock and Warrants | |
Temporary Equity [Line Items] | |
Warrants Calculated Using the Black Scholes Merton Pricing Model | The preferred stock and warrants were issued for a total of $5.0 million. This amount was allocated to the preferred stock and warrants based on their relative fair values. The fair value of the warrants was calculated using the Black Scholes-Merton pricing model using the following weighted average assumptions, at the grant date: Number of warrants 325,000 Exercise price $ 6.62 Expected volatility of underlying stock 74 % Risk-free interest rate 1.62 % Dividend yield 0 % Expected life of warrants 8 years Weighted-average fair value of warrants $ 3.11 Expiration date May 2, 2020 |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Potentially Anti-dilutive Securities Not Considered in Calculation of Diluted Earnings Per Share | Potentially dilutive securities not considered in the calculation of diluted earnings per share because losses caused their effect is anti-dilutive, are as follows at December 31, 2018 and 2017: Year Ended December 31, 2018 2017 Convertible preferred stock 2,212,389 2,212,389 Stock warrants 825,000 825,000 Restricted units 5,031 165,210 3,042,420 3,202,509 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible Assets at December 31, 2017 Useful Cost Accumulated Net Value (in thousands) Intellectual property 3 $ 322 $ 322 $ - License 5 358 118 240 License - 218 - 218 $ 898 $ 440 $ 458 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Analysis of Assets and Liabilities Reclassified as Held for Sale and Operating Results and Analysis of Assets Sold and Liabilities Assumed by Buyer and Related Gain on Sale from Transaction and Supplemental Cash Flow Information of Discontinued Business | Following is an analysis of assets and liabilities of M&I reclassified as held for sale at December 31, 2017: Assets Current assets: Accounts receivable-trade, net $ 5,266 Inventories, net 1,325 Contract assets 5,841 Prepaid expenses and other current assets 434 Total current portion of assets held for sale 12,866 Property, plant and equipment, net 6,323 Intangibles 458 Retainage receivables 785 Total non-current assets held for sale 7,566 Total assets held for sale $ 20,432 Liabilities Current liabilities: Accounts payable and accrued liabilities $ 11,616 Short-term note payable 150 Contract liabilities 1,792 Total liabilities held for sale $ 13,558 The following is an analysis of the results of operations of the discontinued business of M&I for the years ended December 31, 2018 and 2017: Year ended December 31, 2018 2017 Net sales $ 17,899 $ 41,414 Cost of sales 20,358 40,136 Selling, general and administrative expenses 1,660 2,255 Interest expense 1,298 1,054 Loss from discontinued operations (5,417 ) (2,031 ) Gain on sale of discontinued operations 4,521 - Loss from discontinued operations $ (896 ) $ (2,031 ) Earnings (loss) per share information: Basic and diluted $ (0.10 ) $ (0.24 ) The following is an analysis of assets sold and liabilities assumed by the Buyer and the related gain on the sale from the Transaction: Assets sold: Current assets: Accounts receivable-trade, net $ 3,360 Inventories, net 1,145 Contract assets 2,957 Prepaid expenses and other current assets 117 Total current portion of assets held for sale 7,579 Property, plant and equipment, net 5,937 Intangibles 497 Total non-current assets held for sale 6,506 Total assets held for sale $ 14,013 Liabilities assumed: Current liabilities: Accounts payable and accrued liabilities $ 5,664 Contract liabilities 2,752 Total current liabilities 8,416 Net assets sold 5,597 Proceeds received after payment of transaction costs of $2,180 10,118 Gain on disposition $ 4,521 Following is an analysis of supplemental cashflow information of the discontinued business of M&I for the years ended December 31, 2018 and 2017: 2018 2017 (in thousands) Depreciation $ 238 $ 644 Capital expenditures 85 738 |
Revenue Recognition (ASC 606) (
Revenue Recognition (ASC 606) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disaggregation Of Revenue [Abstract] | |
Schedule of Revenue Disaggregated by Source | The table below presents revenue disaggregated by source, for the years ended December 31, 2018 and 2017: 2018 2017 (in thousands) Services $ 6,455 $ 5,093 Products 1,136 623 $ 7,591 $ 5,716 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following at December 31, 2018 and 2017: 2018 2017 (in thousands) Trade accounts payable $ 260 $ 668 Other accounts payable 187 136 Accrued salaries and compensation 647 454 Accrued payroll taxes 121 120 Other accrued non-income related taxes 89 67 Accrued legal and professional fees 979 156 Deferred revenue 60 27 Other accrued liabilities 135 91 $ 2,478 $ 1,719 |
Organization and Nature of Bu_2
Organization and Nature of Business - Additional Information (Detail) - M&I Brazil | Dec. 31, 2014 |
Organization And Nature Of Business [Line Items] | |
Ownership interest in wholly-owned subsidiary | 20.00% |
M&I | |
Organization And Nature Of Business [Line Items] | |
Ownership interest in wholly-owned subsidiary | 80.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | Jan. 01, 2019USD ($) | Dec. 31, 2018Customer | Dec. 31, 2017USD ($)Customer |
Schedule Of Accounting Policies [Line Items] | |||
Refinancing of outstanding loans used as working capital | $ 1,000 | ||
Estimated liquidity period | 12 months | ||
ASU 2016-02 | Minimum | Subsequent Event | |||
Schedule Of Accounting Policies [Line Items] | |||
Increase to assets and liabilities | $ 600 | ||
ASU 2016-02 | Maximum | Subsequent Event | |||
Schedule Of Accounting Policies [Line Items] | |||
Increase to assets and liabilities | $ 800 | ||
Customer Concentration Risk | Net Revenue | |||
Schedule Of Accounting Policies [Line Items] | |||
Number of Customers | Customer | 2 | 0 | |
Customer accountability percentage | 23.00% | ||
Credit Concentration Risk | Net Accounts Receivable-Trade | |||
Schedule Of Accounting Policies [Line Items] | |||
Number of Customers | Customer | 2 | 3 | |
Customer accountability percentage | 56.00% | 53.00% |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 53 | $ 2 |
Work-in-process | 16 | |
Total inventories | $ 69 | $ 2 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, plant and equipment | ||
Property, plant and equipment, gross, Total | $ 783 | $ 767 |
Less: accumulated depreciation and amortization | (231) | (169) |
Property, plant and equipment net, excluding land, Total | 552 | 598 |
Buildings and improvements | ||
Property, plant and equipment | ||
Property, plant and equipment, gross, Total | $ 146 | 54 |
Buildings and improvements | Minimum | ||
Property, plant and equipment | ||
Property, plant and equipment, Estimated Useful Lives (years) | 15 years | |
Buildings and improvements | Maximum | ||
Property, plant and equipment | ||
Property, plant and equipment, Estimated Useful Lives (years) | 25 years | |
Office equipment and furniture | ||
Property, plant and equipment | ||
Property, plant and equipment, gross, Total | $ 133 | 112 |
Office equipment and furniture | Minimum | ||
Property, plant and equipment | ||
Property, plant and equipment, Estimated Useful Lives (years) | 2 years | |
Office equipment and furniture | Maximum | ||
Property, plant and equipment | ||
Property, plant and equipment, Estimated Useful Lives (years) | 7 years | |
Automobiles and trucks | ||
Property, plant and equipment | ||
Property, plant and equipment, gross, Total | $ 28 | 33 |
Automobiles and trucks | Minimum | ||
Property, plant and equipment | ||
Property, plant and equipment, Estimated Useful Lives (years) | 2 years | |
Automobiles and trucks | Maximum | ||
Property, plant and equipment | ||
Property, plant and equipment, Estimated Useful Lives (years) | 5 years | |
Machinery and shop equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, gross, Total | $ 476 | $ 568 |
Machinery and shop equipment | Minimum | ||
Property, plant and equipment | ||
Property, plant and equipment, Estimated Useful Lives (years) | 2 years | |
Machinery and shop equipment | Maximum | ||
Property, plant and equipment | ||
Property, plant and equipment, Estimated Useful Lives (years) | 10 years |
Property, Plant and Equipment_2
Property, Plant and Equipment - Schedule of Depreciation Expense Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | ||
Depreciation expense | $ 517 | $ 841 |
Continuing Operations | Cost of Revenue | ||
Property Plant And Equipment [Line Items] | ||
Depreciation expense | 146 | 84 |
Continuing Operations | General and Administrative Expenses | ||
Property Plant And Equipment [Line Items] | ||
Depreciation expense | 133 | 113 |
Discontinued Operations | ||
Property Plant And Equipment [Line Items] | ||
Depreciation expense | $ 238 | $ 644 |
Advances to and Investments i_3
Advances to and Investments in Foreign Joint Venture Operations - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Apr. 30, 2007 | Dec. 31, 2006 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Foreign joint ventures' operations related expenses | $ 142,000 | $ 250,000 | ||
BOMAY | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 40.00% | |||
Investment in joint ventures | $ 1,000,000 | $ 1,000,000 | ||
Equity income/loss from foreign joint venture operations | $ 950,000 | 430,000 | ||
Dividends received | 1,100,000 | 780,000 | ||
BOMAY | Affiliated Entity | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Accounts receivable from foreign joint venture | $ 0 | $ 40,000 |
Advances to and Investments i_4
Advances to and Investments in Foreign Joint Venture Operations - Schedule of Financial Information of Foreign Joint Venture (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
BOMAY | ||
Assets: | ||
Total current assets | $ 59,124 | $ 50,000 |
Total non-current assets | 5,742 | 3,457 |
Total assets | 64,866 | 53,457 |
Liabilities and equity: | ||
Total liabilities | 38,732 | 25,598 |
Total joint ventures’ equity | 26,134 | 27,859 |
Total liabilities and equity | 64,866 | 53,457 |
Revenue | 37,244 | 26,168 |
Gross Profit | 7,878 | 5,654 |
Earnings | $ 2,381 | 1,084 |
MIEFE | ||
Assets: | ||
Total current assets | 121 | |
Total non-current assets | 15 | |
Total assets | 136 | |
Liabilities and equity: | ||
Total liabilities | 198 | |
Total joint ventures’ equity | (62) | |
Total liabilities and equity | 136 | |
Revenue | 89 | |
Gross Profit | 23 | |
Earnings | $ 55 |
Advances to and Investments i_5
Advances to and Investments in Foreign Joint Venture Operations - Schedule of Investments in and Advances to Foreign Joint Venture Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Undistributed earnings: | ||
Dividend distributions | $ (174) | $ (125) |
Foreign currency translation: | ||
Total investments at end of year | 9,980 | 10,947 |
BOMAY | ||
Investments in foreign joint ventures: | ||
Balance at beginning and end of year | 2,033 | 2,033 |
Undistributed earnings: | ||
Balance at beginning of year | 7,967 | 8,313 |
Equity in earnings (loss) | 953 | 434 |
Dividend distributions | (1,127) | (780) |
Balance at end of year | 7,793 | 7,967 |
Foreign currency translation: | ||
Balance at beginning of year | 737 | 104 |
Change during the year | (583) | 633 |
Balance at end of year | 154 | 737 |
Total investments at end of year | 9,980 | 10,737 |
MIEFE | ||
Foreign currency translation: | ||
Balance at beginning of year | 210 | 213 |
Change during the year | $ (210) | (3) |
Balance at end of year | 210 | |
Total investments at end of year | $ 210 |
Advances to and Investments i_6
Advances to and Investments in Foreign Joint Venture Operations - Schedule of Investments in and Advances to Foreign Joint Venture Operations (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
BOMAY | ||
Schedule Of Equity Method Investments [Line Items] | ||
Accumulated statutory reserve in equity method investment | $ 2.8 | $ 2.8 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss before Income Taxes and Dividends on Preferred Stock (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Components of income (loss) before income taxes | ||
United States | $ (2,990) | $ (3,556) |
Foreign | 1,620 | 404 |
Discontinued operations | (896) | (2,031) |
Income (loss) before income taxes | $ (2,266) | $ (5,183) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes by Taxing Authority (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current provision: | ||
Foreign | $ 291 | $ 78 |
Total current provision | 291 | 78 |
Deferred benefit: | ||
Federal | (3,033) | |
Total deferred benefit | (3,033) | |
Total provision (benefit) for income taxes | $ 291 | $ (2,955) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||
Recognition of a valuation allowance against deferred tax assets in the U.S | $ 4,083 | $ 3,654 |
Effective tax rate | 21.00% | 34.00% |
Earliest Tax Year | ||
Income Taxes [Line Items] | ||
Income tax examination by federal and state tax authorities | 2014 | |
Latest Tax Year | ||
Income Taxes [Line Items] | ||
Income tax examination by federal and state tax authorities | 2018 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Federal Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Accrued liabilities | $ 11 | $ 136 |
Deferred compensation | 642 | 520 |
Allowance for doubtful accounts | 71 | |
Inventory | 73 | |
Net operating loss | 3,430 | 2,783 |
Property and equipment | 71 | |
Deferred tax assets | 4,083 | 3,654 |
Valuation allowance | $ (4,083) | $ (3,654) |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Difference Between Effective Income Tax Rate Determined by Applying Statutory Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of difference between effective income tax rate determined by applying statutory income tax rate | ||
Benefit from U. S. federal statutory rate | $ 287 | $ 1,071 |
Effect of discontinued operations | 188 | 691 |
Change in valuation allowance | (429) | 4,734 |
Accrual to return adjustments and other | 235 | |
Foreign income taxes included in equity earnings | (113) | 496 |
Foreign income taxes | (178) | |
Non-deductible business meals and entertainment expenses | (46) | (45) |
Effect of state income taxes | 32 | |
Change in enacted tax rate | (4,259) | |
Income tax expense (benefit) | $ (291) | $ 2,955 |
Notes Payable - Components of N
Notes Payable - Components of Notes Payable and Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Components of notes payable | ||
Short-term note payable | $ 202 | $ 203 |
Current portion of long-term note payable | 270 | |
Long-term notes payable | 6,230 | |
Principal balance of notes payable | 202 | 6,703 |
Warrants issued as part of debt refinancing | (365) | |
Loan cost capitalization | (341) | |
Total notes payable, net | $ 202 | $ 5,997 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) - USD ($) | Aug. 12, 2018 | Nov. 13, 2017 | Jun. 30, 2017 | Jun. 06, 2017 | Mar. 23, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||||
Warrant exercise price per share | $ 2.26 | ||||||
Fair value of warrants recognized as an increase in additional paid-in-capital | $ 365,000 | ||||||
HD Special-Situations III, L.P. | Senior Secured Term Note | |||||||
Debt Instrument [Line Items] | |||||||
Debt principal amount | $ 7,000,000 | ||||||
Debt principal repayment | $ 500,000 | ||||||
Debt instrument, initial repayment date | Jun. 30, 2017 | ||||||
Debt instrument, payment terms | $7.00 million principal amount Senior Secured Term Note (the “Note”) with principal of $0.50 million due and paid on June 30, 2017 with the balance due 48 months after issuance for cash at par pursuant to a Note Purchase Agreement (the “Purchase Agreement”). | ||||||
Interest rate | 11.50% | ||||||
Debt instrument, description incase of prepayment principal | The Note was subject to an interest “make-whole” provision under which any prepayment of principal in excess of $1.50 million (the “Prepayment Threshold”) within one year of the date of issuance (the “Make-Whole Period”) would have been subject to the payment premium based on an interest rate of 11.5% per year of the prepayment amount in excess of the Prepayment Threshold for the remaining portion of the Make-Whole Period that would have remained after the prepayment was made. | ||||||
Repayment of notes including accrued and unpaid interest required to be made | $ 6,400 | ||||||
Unamortized loan costs | 300,000 | ||||||
Unamortized debt discount | 400,000 | ||||||
Interest expense on debt | $ 700,000 | ||||||
Minimum principal reductions per month | $ 30,000 | ||||||
Minimum principal reductions, begining period | 2018-04 | ||||||
Warrants issued to purchase of common stock | 500,000 | ||||||
Warrant exercise price per share | $ 2.26 | ||||||
Warrants expiration period | 2022-11 | ||||||
Fair value of warrants recognized as an increase in additional paid-in-capital | $ 400,000 | ||||||
HD Special-Situations III, L.P. | Senior Secured Term Note | Purchase Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Debt, remaining principal payable period | 48 months | ||||||
HD Special-Situations III, L.P. | Senior Secured Term Note | Loan Agreement | M&I Brazil | Former Chairman of AETI | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 10.00% | ||||||
Line of credit facility, agreement date | Jun. 6, 2017 | ||||||
Line of credit facility, maximum borrowing capacity | $ 300,000 | ||||||
Loan facility drawn and outstanding | $ 200,000 | ||||||
Debt instrument, interest rate terms | the interest rate on the loan facility is 10.0%, per annum, payable each quarter. | ||||||
Debt instrument, maturity date | Jun. 30, 2019 | ||||||
HD Special-Situations III, L.P. | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from sale of note available for working capital and general business purposes | $ 1,000,000 | ||||||
HD Special-Situations III, L.P. | Minimum | Senior Secured Term Note | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment Threshold | $ 1,500,000 |
Notes Payable - Warrants Calcul
Notes Payable - Warrants Calculated Using the Black Scholes Merton Pricing Model (Detail) | Dec. 31, 2018$ / shares | Mar. 23, 2017$ / sharesshares |
Warrants calculated using the Black Scholes Merton pricing model | ||
Number of warrants | shares | 500,000 | |
Exercise price | $ 2.26 | |
Weighted-average fair value of warrants | $ 3.11 | $ 0.73 |
Expiration date | Nov. 13, 2022 | |
Expected Volatility of Underlying Stock | ||
Warrants calculated using the Black Scholes Merton pricing model | ||
Warrants outstanding, measurement input | 0.74 | 0.72 |
Risk-Free Interest Rate | ||
Warrants calculated using the Black Scholes Merton pricing model | ||
Warrants outstanding, measurement input | 0.0162 | 0.0208 |
Dividend Yield | ||
Warrants calculated using the Black Scholes Merton pricing model | ||
Warrants outstanding, measurement input | 0 | 0 |
Expected Life of Warrants | ||
Warrants calculated using the Black Scholes Merton pricing model | ||
Expected life of warrants | 8 years | 5 years |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)City | Mar. 31, 2014 | Dec. 31, 2013ft² | |
Operating Leased Assets [Line Items] | |||
Office lease covered area | ft² | 13,000 | ||
Term of lease | 64 months | ||
Lease expiration year | 2021 | ||
M&I Brazil | |||
Operating Leased Assets [Line Items] | |||
Lease expiration year | 2022 | ||
Number of cities in which offices and facilities were leased | City | 3 | ||
Operating leases, rent expense | $ | $ 0.2 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments Required under Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Schedule of future minimum rental payments under operating leases | |
2019 | $ 216 |
2020 | 224 |
2021 | 233 |
2022 | 200 |
Total | $ 873 |
Stock and Stock-based Compens_3
Stock and Stock-based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
May 31, 2011 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Additional compensation cost that will be recognized in future periods | $ 20,000 | |||
Minimum | Director | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of retainer fee to acquire common stock | 50.00% | |||
Maximum | Director | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of retainer fee to acquire common stock | 100.00% | |||
Restricted Stock Units (RSUs) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Conversion of stock RSU to Common, ratio | 100.00% | |||
Convert to common stock | 25.00% | |||
Increment period for awards converted into common stock | 4 years | |||
Stock compensation expense | $ 520,000 | $ 300,000 | ||
Weighted average period additional compensation cost will be expensed | 3 years | |||
Restricted Stock Units (RSUs) | Two Thousand Seven Employee Stock Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares available for issuance under the plan | 2,200,000 | |||
Board of Directors Deferred Compensation | Director | General and Administrative Expense | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock compensation expense | $ 200,000 | $ 80,000 | ||
Common Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock issued in connection with ESPP | 7,614 | 7,151 | ||
Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of common stock allowed to sell to employees | 125,000 | |||
Percentage of shares transacted at fair market value | 95.00% |
Stock and Stock-based Compens_4
Stock and Stock-based Compensation - Summary of Unvested Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of unvested restricted stock units | ||
Unvested restricted stock units, Beginning Balance | 165,120 | 218,412 |
Granted restricted stock unit | 91,000 | 56,759 |
Vested | (154,874) | (112,340) |
Forfeited | (96,215) | (2,289) |
Unvested restricted stock units, Ending Balance | 5,031 | 165,120 |
Weighted Average Fair Value Per RSU, Beginning Balance | $ 3.40 | $ 4.28 |
Awarded | 1.35 | 1.48 |
Vested | 2.87 | 3.99 |
Forfeited | 2.51 | 4.41 |
Weighted Average Fair Value Per RSU, Ending Balance | $ 2.92 | $ 3.40 |
Redeemable Convertible Prefer_3
Redeemable Convertible Preferred Stock - Additional Information (Detail) | May 02, 2012USD ($) | Dec. 31, 2018USD ($)Installment$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Aug. 01, 2017$ / sharesshares | Mar. 23, 2017$ / shares | Apr. 30, 2012shares | Apr. 13, 2012$ / sharesshares |
Temporary Equity [Line Items] | |||||||
Redeemable convertible preferred stock, shares issued | 1,000,000 | 1,000,000 | |||||
Warrant exercise price per share | $ / shares | $ 2.26 | ||||||
Common stock, shares issued | 9,413,245 | 8,850,532 | 1,000,000 | ||||
Warrants to purchase common stock | 325,000 | ||||||
Redeemable convertible preferred stock, shares authorized | 1,000,000 | 1,000,000 | |||||
Preferred stock and warrants value issued | $ | $ 5,000,000 | ||||||
Warrants value | $ | $ 840,000 | ||||||
Accretion amount | $ | $ 60,000 | $ 56,000 | |||||
Common Stock | Repricing Agreement | |||||||
Temporary Equity [Line Items] | |||||||
Convertible preferred stock, shares issuable upon conversion | 1 | ||||||
Maximum | Repricing Agreement | |||||||
Temporary Equity [Line Items] | |||||||
Limitations for issuance of common stock or voting power outstanding to holder, in percentage | 19.99% | ||||||
Warrants Exercise Price Tranche One | |||||||
Temporary Equity [Line Items] | |||||||
Warrant exercise price per share | $ / shares | $ 6 | ||||||
Warrants to purchase common stock | 125,000 | ||||||
Warrants Exercise Price Tranche Two | |||||||
Temporary Equity [Line Items] | |||||||
Warrant exercise price per share | $ / shares | $ 7 | ||||||
Warrants to purchase common stock | 200,000 | ||||||
Securities Purchase Agreement | |||||||
Temporary Equity [Line Items] | |||||||
Number of warrants | 325,000 | ||||||
Series A Convertible Preferred Stock | |||||||
Temporary Equity [Line Items] | |||||||
Conversion price per share | $ / shares | $ 5 | ||||||
Redeemable convertible preferred stock, shares authorized | 1,000,000 | ||||||
Cumulative dividends at a rate | 6.00% | ||||||
Preferred stock value | $ | $ 4,160,000 | ||||||
Series A Convertible Preferred Stock | Common Stock | Repricing Agreement | |||||||
Temporary Equity [Line Items] | |||||||
Conversion price per share | $ / shares | $ 2.26 | ||||||
Convertible preferred stock, shares issuable upon conversion | 2,212,389 | ||||||
Series A Convertible Preferred Stock | Accounts Payable and Other Accrued Expenses | |||||||
Temporary Equity [Line Items] | |||||||
Total accrued but unpaid dividends | $ | $ 80,000 | $ 80,000 | |||||
Series A Convertible Preferred Stock | Scenario, Plan | |||||||
Temporary Equity [Line Items] | |||||||
Redeemable convertible preferred stock, liquidation preference per share | $ / shares | $ 5 | ||||||
Number of redemption price, accrued and unpaid dividends installment payments | Installment | 36 | ||||||
Annual interest rate on redemption value payable | 6.00% | ||||||
Redemption price per share | $ / shares | $ 5 | $ 5 | |||||
Series A Convertible Preferred Stock | Scenario, Plan | Maximum | |||||||
Temporary Equity [Line Items] | |||||||
Majority outstanding shares redeemable date | Apr. 30, 2017 | ||||||
Series A Convertible Preferred Stock | Securities Purchase Agreement | |||||||
Temporary Equity [Line Items] | |||||||
Redeemable convertible preferred stock, shares issued | 1,000,000 | ||||||
Warrant exercise price per share | $ / shares | $ 5 | ||||||
Series A Warrants | Common Stock | Repricing Agreement | |||||||
Temporary Equity [Line Items] | |||||||
Warrant exercise price per share | $ / shares | $ 2.72 | ||||||
Warrants to purchase common stock | 125,000 | ||||||
Series B Warrants | Common Stock | Repricing Agreement | |||||||
Temporary Equity [Line Items] | |||||||
Warrant exercise price per share | $ / shares | $ 3.17 | ||||||
Warrants to purchase common stock | 200,000 |
Redeemable Convertible Prefer_4
Redeemable Convertible Preferred Stock - Preferred Stock and Warrants Calculated Using the Black Scholes Merton Pricing Model (Detail) | 12 Months Ended | |
Dec. 31, 2018$ / sharesshares | Mar. 23, 2017$ / shares | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Number of warrants | shares | 325,000 | |
Weighted-average fair value of warrants | $ 3.11 | $ 0.73 |
Expiration date | May 2, 2020 | |
Exercise Price | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input | 6.62 | |
Expected Volatility of Underlying Stock | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input | 0.74 | 0.72 |
Risk-Free Interest Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input | 0.0162 | 0.0208 |
Dividend Yield | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input | 0 | 0 |
Expected Life of Warrants | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Expected life of warrants | 8 years | 5 years |
Employee Benefit and Bonus Pl_2
Employee Benefit and Bonus Plans - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018USD ($)Employees | Dec. 31, 2017USD ($) | |
Employee Benefit And Bonus Plans [Line Items] | ||
Contributions to the plan | $ 0 | $ 0 |
Executive Performance | ||
Employee Benefit And Bonus Plans [Line Items] | ||
Number of employees who are covering executive performance of bonus plan | Employees | 4 | |
Amount recorded under the plan | $ 400,000 | $ 300,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Jun. 06, 2017 | Aug. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 23, 2017 |
Director | |||||
Related Party Transactions (Textual) [Abstract] | |||||
Outstanding payable balance for services rendered by law firm | $ 50,000 | $ 40,000 | |||
Issuance of shares as compensation | 150,000 | ||||
Stock compensation expense | 70,000 | ||||
Former Executive Chairman of Board of Directors | Labor And Related Compensation | |||||
Related Party Transactions (Textual) [Abstract] | |||||
Compensation amount | 150,000 | 90,000 | |||
HD Special-Situations III, L.P. | Senior Secured Term Note | |||||
Related Party Transactions (Textual) [Abstract] | |||||
Interest rate | 11.50% | ||||
HD Special-Situations III, L.P. | Senior Secured Term Note | Loan Agreement | M&I Brazil | Former Chairman of AETI | |||||
Related Party Transactions (Textual) [Abstract] | |||||
Line of credit facility, agreement date | Jun. 6, 2017 | ||||
Line of credit facility, maximum borrowing capacity | $ 300,000 | ||||
Loan facility drawn and outstanding | $ 200,000 | ||||
Debt instrument, maturity year and month | 2019-06 | ||||
Interest rate | 10.00% | ||||
Debt instrument, interest rate terms | the interest rate on the loan facility is 10.0%, per annum, payable each quarter. | ||||
General and Administrative Expense | Director | |||||
Related Party Transactions (Textual) [Abstract] | |||||
Expenses related to legal advice | $ 20,000 | $ 40,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Potential liability related to asset purchase agreement | $ 4,300,000 | |
Medical And Hospitalization Insurance Program | ||
Loss Contingencies [Line Items] | ||
Minimum insurance premium | 600,000 | $ 900,000 |
Insurance reserves | $ 130,000 | |
Maximum | Medical And Hospitalization Insurance Program | ||
Loss Contingencies [Line Items] | ||
Liable for all claims per insured annual amount | 70,000 | |
Liable for all claims per insured aggregate amount | $ 1,700,000 |
Loss Per Common Share - Potenti
Loss Per Common Share - Potentially Anti-dilutive Securities Not Considered in Calculation of Diluted Earnings Per Share (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially anti-dilutive securities not considered in calculation of diluted earnings per share | 3,042,420 | 3,202,509 |
Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially anti-dilutive securities not considered in calculation of diluted earnings per share | 2,212,389 | 2,212,389 |
Stock Warrants | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially anti-dilutive securities not considered in calculation of diluted earnings per share | 825,000 | 825,000 |
Restricted Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially anti-dilutive securities not considered in calculation of diluted earnings per share | 5,031 | 165,210 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Summary of Intangible Assets | |
Intangible assets, Cost | $ 898 |
Finite lived intangible assets, Accumulated Amortization | 440 |
Intangible assets, Net Value | 458 |
License | |
Summary of Intangible Assets | |
Indefinite lived intangible assets, Net Value | $ 218 |
Intellectual property | |
Summary of Intangible Assets | |
Finite lived intangible assets, Useful Lives | 3 years |
Finite lived intangible assets, Cost | $ 322 |
Finite lived intangible assets, Accumulated Amortization | $ 322 |
License | |
Summary of Intangible Assets | |
Finite lived intangible assets, Useful Lives | 5 years |
Finite lived intangible assets, Cost | $ 358 |
Finite lived intangible assets, Accumulated Amortization | 118 |
Finite lived intangible assets, Net Value | $ 240 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - M&I Electric US Operations - Discontinued Operations, Disposed of by Sale - USD ($) | Aug. 12, 2018 | Dec. 31, 2018 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Total purchase price | $ 18,500,000 | |
Cash consideration | 10,100,000 | |
Assumed indebtedness | 8,400,000 | |
Escrow deposit | $ 740,000 | |
Period of escrow deposit secured for certain indemnification obligations | 6 months | |
Decrease in net working capital | $ (4,300,000) | |
Senior Secured Term Note | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Repayment of note and related accrued interest | $ 6,500,000 |
Discontinued Operations - Analy
Discontinued Operations - Analysis of Assets and Liabilities Reclassified as Held for Sale (Detail) - USD ($) $ in Thousands | Aug. 12, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Discontinued Operations And Disposal Groups [Abstract] | |||
Discontinued Operation, Name of Segment [Extensible List] | aeti:MAndIElectricUSOperationsMember | aeti:MAndIElectricUSOperationsMember | aeti:MAndIElectricUSOperationsMember |
Current assets: | |||
Accounts receivable-trade, net | $ 3,360 | $ 5,266 | |
Inventories, net | 1,145 | 1,325 | |
Contract assets | 2,957 | 5,841 | |
Prepaid expenses and other current assets | 117 | 434 | |
Total current portion of assets held for sale | 7,579 | 12,866 | |
Property, plant and equipment, net | 5,937 | 6,323 | |
Intangibles | 497 | 458 | |
Retainage receivables | 785 | ||
Total non-current assets held for sale | 6,506 | 7,566 | |
Total assets held for sale | 14,013 | 20,432 | |
Current liabilities: | |||
Accounts payable and accrued liabilities | 5,664 | 11,616 | |
Short-term note payable | 150 | ||
Contract liabilities | $ 2,752 | 1,792 | |
Total liabilities held for sale | $ 13,558 |
Discontinued Operations - Ana_2
Discontinued Operations - Analysis of Results of Operations of Discontinued Business (Detail) - USD ($) $ / shares in Units, $ in Thousands | Aug. 12, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Discontinued Operations And Disposal Groups [Abstract] | |||
Discontinued Operation, Name of Segment [Extensible List] | aeti:MAndIElectricUSOperationsMember | aeti:MAndIElectricUSOperationsMember | aeti:MAndIElectricUSOperationsMember |
Net sales | $ 17,899 | $ 41,414 | |
Cost of sales | 20,358 | 40,136 | |
Selling, general and administrative expenses | 1,660 | 2,255 | |
Interest expense | 1,298 | 1,054 | |
Loss from discontinued operations | (5,417) | (2,031) | |
Gain on sale of discontinued operations | 4,521 | ||
Loss from discontinued operations | $ (896) | $ (2,031) | |
Earnings (loss) per share information: | |||
Basic and diluted | $ (0.10) | $ (0.24) |
Discontinued Operations - Ana_3
Discontinued Operations - Analysis of Assets Sold and Liabilities Assumed by Buyer and Related Gain on Sale from Transaction (Detail) - USD ($) $ in Thousands | Aug. 12, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Discontinued Operations And Disposal Groups [Abstract] | |||
Discontinued Operation, Name of Segment [Extensible List] | aeti:MAndIElectricUSOperationsMember | aeti:MAndIElectricUSOperationsMember | aeti:MAndIElectricUSOperationsMember |
Current assets: | |||
Accounts receivable-trade, net | $ 3,360 | $ 5,266 | |
Inventories, net | 1,145 | 1,325 | |
Contract assets | 2,957 | 5,841 | |
Prepaid expenses and other current assets | 117 | 434 | |
Total current portion of assets held for sale | 7,579 | 12,866 | |
Property, plant and equipment, net | 5,937 | 6,323 | |
Intangibles | 497 | 458 | |
Total non-current assets held for sale | 6,506 | 7,566 | |
Total assets held for sale | 14,013 | 20,432 | |
Current liabilities: | |||
Accounts payable and accrued liabilities | 5,664 | 11,616 | |
Contract liabilities | 2,752 | 1,792 | |
Total current liabilities | 8,416 | $ 13,471 | |
Net assets sold | 5,597 | ||
Proceeds received after payment of transaction costs of $2,180 | 10,118 | $ 10,118 | |
Gain on disposition | $ 4,521 |
Discontinued Operations - Ana_4
Discontinued Operations - Analysis of Assets Sold and Liabilities Assumed by Buyer and Related Gain on Sale from Transaction (Parenthetical) (Detail) $ in Thousands | Aug. 12, 2018USD ($) |
Discontinued Operations And Disposal Groups [Abstract] | |
Transaction costs | $ 2,180 |
Discontinued Operations - Ana_5
Discontinued Operations - Analysis of Supplemental Cash Flow Information of Discontinued Business (Detail) - USD ($) $ in Thousands | Aug. 12, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Discontinued Operations And Disposal Groups [Abstract] | |||
Discontinued Operation, Name of Segment [Extensible List] | aeti:MAndIElectricUSOperationsMember | aeti:MAndIElectricUSOperationsMember | aeti:MAndIElectricUSOperationsMember |
Depreciation | $ 238 | $ 644 | |
Capital expenditures | $ 85 | $ 738 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue Disaggregated by Source (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 7,591 | $ 5,716 |
Services | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 6,455 | 5,093 |
Products | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 1,136 | $ 623 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables And Accruals [Abstract] | ||
Trade accounts payable | $ 260 | $ 668 |
Other accounts payable | 187 | 136 |
Accrued salaries and compensation | 647 | 454 |
Accrued payroll taxes | 121 | 120 |
Other accrued non-income related taxes | 89 | 67 |
Accrued legal and professional fees | 979 | 156 |
Deferred revenue | 60 | 27 |
Other accrued liabilities | 135 | 91 |
Accounts Payable and Accrued Liabilities, Current | $ 2,478 | $ 1,719 |