Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0001046995 | |
Entity Registrant Name | EMAGIN CORP | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 49,173,773 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 2,563 | $ 3,359 |
Accounts receivable, net | 3,956 | 3,186 |
Unbilled accounts receivable | 279 | 224 |
Inventories | 8,447 | 8,582 |
Prepaid expenses and other current assets | 1,209 | 875 |
Total current assets | 16,454 | 16,226 |
Equipment, furniture and leasehold improvements, net | 8,346 | 8,921 |
Operating lease right-of-use assets | 3,790 | |
Intangibles and other assets | 191 | 269 |
Total assets | 28,781 | 25,416 |
Current liabilities: | ||
Accounts payable | 1,208 | 2,024 |
Accrued compensation | 1,602 | 1,634 |
Revolving credit facility, net | 2,002 | |
Finance lease liability - current portion | 16 | |
Common stock warrant liability | 47 | 1,497 |
Other accrued expenses | 1,603 | 1,827 |
Deferred revenue | 328 | 38 |
Operating lease liability - current portion | 704 | |
Other current liabilities | 398 | 427 |
Total current liabilities | 7,908 | 7,447 |
Finance lease liability-long term | 28 | |
Operating lease liability-long term | 3,202 | |
Total liabilities | 11,138 | 7,447 |
Commitments and contingencies (Note 8) | ||
Shareholders' equity: | ||
Preferred stock, $.001 par value: authorized 10,000,000 shares: Series B Convertible Preferred stock, (liquidation preference of $5,659) stated value $1,000 per share, $.001 par value: 10,000 shares designated and 5,659 issued and outstanding as of September 30, 2019 and December 31, 2018 | ||
Common stock, $.001 par value: authorized 200,000,000 shares, issued 49,335,839 shares, outstanding 49,173,773 shares as of September 30, 2019 and issued 45,323,339 shares, outstanding 45,161,273 shares as of December 31, 2018 | 49 | 45 |
Additional paid-in capital | 258,498 | 254,736 |
Accumulated deficit | (240,404) | (236,312) |
Treasury stock, 162,066 shares as of September 30, 2019 and December 31, 2018 | (500) | (500) |
Total shareholders' equity | 17,643 | 17,969 |
Total liabilities and shareholders' equity | $ 28,781 | $ 25,416 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 49,335,839 | 45,323,339 |
Common stock, shares outstanding | 49,173,773 | 45,161,273 |
Treasury stock, shares | 162,066 | 162,066 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, liquidation preference | $ 5,659 | $ 5,659 |
Preferred stock, stated value | $ 1,000 | $ 1,000 |
Preferred stock, shares issued | 5,659 | 5,659 |
Preferred stock, shares outstanding | 5,659 | 5,659 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Total revenues, net | $ 7,919 | $ 6,867 | $ 19,392 | $ 20,800 |
Cost of revenues: | ||||
Impairment of Consumer Night Vision inventory | 2,690 | |||
Total cost of revenues | 5,428 | 4,488 | 15,340 | 16,335 |
Gross profit | 2,491 | 2,379 | 4,052 | 4,465 |
Operating expenses: | ||||
Research and development | 1,046 | 1,590 | 3,943 | 4,941 |
Selling, general and administrative | 1,839 | 2,039 | 5,555 | 6,982 |
Total operating expenses | 2,885 | 3,629 | 9,498 | 11,923 |
Loss from operations | (394) | (1,250) | (5,446) | (7,458) |
Other income (expense): | ||||
Change in fair value of common stock warrant liability | 120 | 1,311 | 1,450 | 387 |
Interest expense, net | (41) | 1 | (96) | (12) |
Other income , net | 1 | |||
Total other income | 79 | 1,313 | 1,354 | 375 |
(Loss) income before provision for income taxes | (315) | 63 | (4,092) | (7,083) |
(Provision) benefit for income taxes | ||||
Net (loss) income | (315) | 63 | (4,092) | (7,083) |
Less net income allocated to participating securities | 9 | |||
Net (loss) income allocated to common shares | $ (315) | $ 54 | $ (4,092) | $ (7,083) |
Loss per share, basic | $ (0.01) | $ (0.09) | $ (0.16) | |
Loss per share, diluted | $ (0.01) | $ (0.09) | $ (0.16) | |
Weighted average number of shares outstanding: | ||||
Basic | 49,173,773 | 45,149,717 | 47,718,965 | 44,182,379 |
Diluted | 49,173,773 | 45,265,370 | 47,718,965 | 44,182,379 |
Product [Member] | ||||
Revenues: | ||||
Total revenues, net | $ 7,321 | $ 6,048 | $ 17,786 | $ 18,127 |
Cost of revenues: | ||||
Cost of goods and services sold | 5,112 | 3,926 | 14,436 | 12,256 |
Contract [Member] | ||||
Revenues: | ||||
Total revenues, net | 598 | 819 | 1,606 | 2,673 |
Cost of revenues: | ||||
Cost of goods and services sold | $ 316 | $ 562 | $ 904 | $ 1,389 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholder's Equity - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock Outstanding [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2017 | $ 35 | $ 244,726 | $ (226,769) | $ (500) | $ 17,492 | ||
Balance, shares at Dec. 31, 2017 | 5,659 | 35,182,589 | |||||
Public offering of common shares, net of offering costs | 10 | 9,255 | 9,265 | ||||
Public offering of common shares, net of offering costs, shares | 10,010,813 | ||||||
Exercise of common stock options | 63 | 63 | |||||
Exercise of common stock options, shares | 49,937 | ||||||
Exercise of common stock warrants | 46 | 46 | |||||
Exercise of common stock warrants, shares | 30,000 | ||||||
Stock based compensation | 205 | 205 | |||||
Net income (loss) | (2,081) | (2,081) | |||||
Balance at Mar. 31, 2018 | 45 | 254,295 | (228,850) | (500) | 24,990 | ||
Balance, shares at Mar. 31, 2018 | 5,659 | 45,273,339 | |||||
Balance at Dec. 31, 2017 | 35 | 244,726 | (226,769) | (500) | 17,492 | ||
Balance, shares at Dec. 31, 2017 | 5,659 | 35,182,589 | |||||
Net income (loss) | (7,083) | ||||||
Balance at Sep. 30, 2018 | 45 | 254,638 | (233,853) | (500) | 20,330 | ||
Balance, shares at Sep. 30, 2018 | 5,659 | 45,323,339 | |||||
Balance at Dec. 31, 2017 | 35 | 244,726 | (226,769) | (500) | 17,492 | ||
Balance, shares at Dec. 31, 2017 | 5,659 | 35,182,589 | |||||
Net income (loss) | (9,500) | ||||||
Balance at Dec. 31, 2018 | 45 | 254,736 | (236,312) | (500) | 17,969 | ||
Balance, shares at Dec. 31, 2018 | 5,659 | 45,323,339 | |||||
Balance at Mar. 31, 2018 | 45 | 254,295 | (228,850) | (500) | 24,990 | ||
Balance, shares at Mar. 31, 2018 | 5,659 | 45,273,339 | |||||
Stock based compensation | 130 | 130 | |||||
Net income (loss) | (5,066) | (5,066) | |||||
Balance at Jun. 30, 2018 | 45 | 254,425 | (233,916) | (500) | 20,054 | ||
Balance, shares at Jun. 30, 2018 | 5,659 | 45,273,339 | |||||
Exercise of common stock options | 36 | 36 | |||||
Exercise of common stock options, shares | 50,000 | ||||||
Stock based compensation | 177 | 177 | |||||
Net income (loss) | 63 | 63 | |||||
Balance at Sep. 30, 2018 | 45 | 254,638 | (233,853) | (500) | 20,330 | ||
Balance, shares at Sep. 30, 2018 | 5,659 | 45,323,339 | |||||
Balance at Dec. 31, 2018 | 45 | 254,736 | (236,312) | (500) | 17,969 | ||
Balance, shares at Dec. 31, 2018 | 5,659 | 45,323,339 | |||||
Stock based compensation | 193 | 193 | |||||
Net income (loss) | (1,439) | (1,439) | |||||
Balance at Mar. 31, 2019 | 45 | 254,929 | (237,751) | (500) | 16,723 | ||
Balance, shares at Mar. 31, 2019 | 5,659 | 45,323,339 | |||||
Balance at Dec. 31, 2018 | 45 | 254,736 | (236,312) | (500) | $ 17,969 | ||
Balance, shares at Dec. 31, 2018 | 5,659 | 45,323,339 | |||||
Exercise of common stock options, shares | 12,500 | ||||||
Net income (loss) | $ (4,092) | ||||||
Balance at Sep. 30, 2019 | 49 | 258,498 | (240,404) | (500) | 17,643 | ||
Balance, shares at Sep. 30, 2019 | 5,659 | 49,335,839 | |||||
Balance at Mar. 31, 2019 | 45 | 254,929 | (237,751) | (500) | 16,723 | ||
Balance, shares at Mar. 31, 2019 | 5,659 | 45,323,339 | |||||
Public offering of common shares, net of offering costs | 4 | 3,299 | 3,303 | ||||
Public offering of common shares, net of offering costs, shares | 4,000,000 | ||||||
Exercise of common stock options | 8 | 8 | |||||
Exercise of common stock options, shares | 12,500 | ||||||
Stock based compensation | 98 | 98 | |||||
Net income (loss) | (2,338) | (2,338) | |||||
Balance at Jun. 30, 2019 | 49 | 258,334 | (240,089) | (500) | 17,794 | ||
Balance, shares at Jun. 30, 2019 | 5,659 | 49,335,839 | |||||
Stock based compensation | 164 | 164 | |||||
Net income (loss) | (315) | (315) | |||||
Balance at Sep. 30, 2019 | $ 49 | $ 258,498 | $ (240,404) | $ (500) | $ 17,643 | ||
Balance, shares at Sep. 30, 2019 | 5,659 | 49,335,839 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (4,092) | $ (7,083) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,542 | 1,482 |
Change in fair value of common stock warrant liability | (1,450) | (387) |
Impairment of Consumer Night Vision inventory | 2,690 | |
Impairment of Consumer Night Vision tooling | 76 | |
Stock-based compensation | 455 | 512 |
Amortization of operating lease right-of-use assets | 477 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (770) | 147 |
Unbilled accounts receivable | (55) | 42 |
Inventories | 135 | (1,349) |
Prepaid expenses and other current assets | (384) | 55 |
Deferred revenues | 290 | (724) |
Operating lease liabilities | (446) | |
Accounts payable, accrued expenses, and other current liabilities | (955) | 164 |
Net cash used in operating activities | (5,253) | (4,375) |
Cash flows from investing activities: | ||
Purchase of equipment | (878) | (1,469) |
Net cash used in investing activities | (878) | (1,469) |
Cash flows from financing activities: | ||
Borrowings (repayments) under revolving line of credit, net | 2,024 | (3,808) |
Proceeds from public offering, net | 3,303 | 12,172 |
Proceeds from warrant exercise, net | 46 | |
Proceeds from exercise of stock options | 8 | 98 |
Net cash provided by financing activities | 5,335 | 8,508 |
Net increase in cash and cash equivalents | (796) | 2,664 |
Cash and cash equivalents, beginning of period | 3,359 | 3,526 |
Cash and cash equivalents, end of period | 2,563 | 6,190 |
Cash paid for interest | 96 | 44 |
Cash paid for income taxes |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1: Summary of Significant Accounting Policies The Business eMagin Corporation (the “Company”) designs, develops, manufactures and markets OLED (organic light emitting diode)–on-silicon microdisplays and virtual imaging products which utilize OLED microdisplays. The Company’s products are sold mainly in North America, Asia, and Europe. Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements of eMagin Corporation and its subsidiary reflect all adjustments, including normal recurring accruals, necessary for a fair presentation. All significant intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the SEC. The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited condensed consolidated financial statements are read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The results of operations for the periods ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year. The consolidated condensed financial statements as of December 31, 2018 are derived from audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Use of estimates In accordance with accounting principles generally accepted in the United States of America, management utilizes certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments related to, among others, allowance for doubtful accounts, warranty reserves, inventory reserves, stock-based compensation expense, deferred tax asset valuation allowances, litigation and other loss contingencies. Management bases its estimates and judgments on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Reclassifications Certain immaterial prior period amounts have been reclassified to conform to current period presentatio n with no impact on previously reported net income, assets or shareholders’ equity. Intangible Assets – Patents Acquired patents are recorded at purchase price as of the date acquired and amortized over the expected useful life which is generally the remaining life of the patent. The total intangible amortization expense was approximately $9 thousand and $24 thousand for the three and nine month periods ended September 30, 2019 and $13 thousand and $27 thousand for the comparable 2018, periods, respectively. Product warranty The Company generally offers a one -year product replacement warranty. The standard policy is to repair or replace the defective products. The Company accrues for estimated returns of defective products at the time revenue is recognized based on historical activity as well as for specific known product issues. The determination of these accruals requires the Company to make estimates of the frequency and extent of warranty activity and estimate future costs to replace the products under warranty. If the actual warranty activity and/or repair and replacement costs differ significantly from these estimates, adjustments to cost of revenue may be required in future periods. The following table provides a summary of the activity related to the Company's warranty liability included in other current liabilities, (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Beginning balance $ 317 $ 382 $ 423 $ 468 Warranty accruals and adjustments 152 39 113 20 Warranty claims (88) (35) (155) (102) Ending balance $ 381 $ 386 $ 381 $ 386 Net Loss per Common Share Basic loss per share is computed using the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of common stock equivalent shares such as stock options, warrants, and convertible preferred stock. Diluted loss per share is computed using the weighted average number of common shares outstanding and potentially dilutive common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is anti-dilutive. The Company’s Series B Convertible Preferred stock (“Preferred Stock – Series B”) is considered a participating security as the preferred stock participates in dividends with the common stock, which requires the use of the two-class method when computing basic and diluted earnings per share. The Preferred Stock – Series B is not required to absorb any net loss. Although the Company paid a one-time special dividend in 2012, the Company does not expect to pay dividends on its common or preferred stock in the near future. The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2019 and 2018 (in thousands, except per share and share data): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Net Loss $ (315) $ 54 $ (4,092) $ (7,083) Weighted average common shares outstanding - Basic 49,173,773 45,149,717 47,718,965 44,182,379 Dilutive effect of stock options — 115,653 — — Weighted average common shares outstanding - Diluted 49,173,773 45,265,370 47,718,965 44,182,379 Net loss per share: Basic $ (0.01) $ - $ (0.09) $ (0.16) Diluted $ (0.01) $ - $ (0.09) $ (0.16) The following table sets forth the potentially dilutive common stock equivalents for the three and nine month periods ended September 30, 2019 and 2018 that were not included in diluted EPS as their effect would be anti-dilutive: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Options 5,416,606 4,959,120 5,416,606 4,959,120 Warrants 19,295,773 9,055,773 19,295,773 9,055,773 Convertible preferred stock 7,545,333 7,545,333 7,545,333 7,545,333 Total potentially dilutive common stock equivalents 32,257,712 21,560,226 32,257,712 21,560,226 Fair Value of Financial Instruments Cash, cash equivalents, accounts receivable, short-term investments and accounts payable are stated at cost, which approximates fair value, due to the short-term nature of these instruments. The revolving credit facility is also stated at cost, which approximates fair value because the interest rate is based on a market based rate plus a margin. We have categorized our assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). Assets and liabilities recorded in the balance sheets at fair value are categorized based on a hierarchy of inputs as follows: Level 1 – Unadjusted quoted prices in active markets of identical assets or liabilities. Level 2 – Quoted prices for similar assets or liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 – Unobservable inputs for the asset or liability. The common stock warrant liability is currently the only financial asset or liability recorded at fair value on a recurring basis, and is considered a Level 3 liability. The fair value of the common stock warrant liability is included in current liabilities on the Condensed Consolidated Balance Sheets, as the warrants are currently exercisable. The following table shows the reconciliation of the Level 3 warrant liability measured and recorded at fair value on a recurring basis, using significant unobservable inputs (in thousands): Estimated Fair Value (unaudited) Balance as of January 1, 2019 $ 1,497 Change in fair value of warrant liability (1,450) Balance as of September 30, 2019 $ 47 The fair value of the liability for common stock purchase warrants at issuance and at September 30, 2019 was estimated using the Black Scholes option pricing model based on the market value of the underlying common stock at the measurement date, the remaining contractual term of the warrants from 2.7 to 3.3 years, risk-free interest rates of 1.56% , no expected dividends and expected volatility of the price of the underlying common stock of 40.1% . Concentrations The Company purchases principally all of its silicon wafers, which are a key ingredient in its OLED production process, from two suppliers located in Taiwan and Korea. For the three and nine month periods ended September 30, 2019, one customer accounted for 12% and no single customer was over 10% of net revenues, respectively. For the three and nine months ended September 30, 2018, one customer accounted for 10% and no single customer was over 10% of net revenues, respectively. As of September 30, 2019 , t wo customers accounted for 12% and 10% respectively of the Company’s consolidated accounts receivable balance and no other single customer accounted for over 10% of the consolidated accounts receivable. As of September 30, 2018 one customer accounted for 14 % and no other single customer accounted for over 10% of the consolidated accounts receivable Liquidity and Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. For the nine months ended September 30, 2019, the Company incurred a net loss of $4.1 million and used cash in operating activities of $5.3 million. As of September 30, 2019, the Company had $2.6 million of cash, $2.0 million of outstanding indebtedness under its asset based lending facility (the “ABL Facility”), and borrowing availability under its ABL Facility of $1.2 million. For the year ended December 31, 2018, the Company incurred a net loss of $9.5 million and used cash in operating activities of $6.4 million. Due to continuing losses, the Company’s financial position, and uncertainty regarding the Company’s ability to borrow under its ABL Facility, the Company may not be able to meet its financial obligations as they become due without additional financing or sources of capital. The Company’s ABL Facility expires on December 31, 2019 and renews automatically for another year unless terminated pursuant to its terms . Although preliminary renewal discussions with the lender are positive there is no assurance the lender will renew or extend this facility, or continue to make funds available during 2019 and beyond at present availability levels, or at all. Therefore, in accordance with applicable accounting guidance, and based on the Company’s current financial condition and availability of funds, there is substantial doubt about the Company’s ability to continue as a going concern through twelve months from the date these financial statements were issued. The Company has taken actions to increase revenues and to reduce expenses and is considering financing alternatives, but there can be no assurance that the Company will be successful in sufficiently increasing revenues, reducing expenses or securing additional financing to meet its operating needs. The Company’s plans with regard to these matters include the following actions: 1) focus production and engineering resources on improving manufacturing yields and increasing production volumes, 2) reduce senior management compensation, 3) reduce headcount and not replace departed employees, 4) reduce discretionary and other expenses, and 5 ) considering financing and/or strategic alternatives. Because of these operational efforts, the incidence of several types of display defects were reduced and production yields in the third quarter of 2019 improved over prior quarters. Third quarter 2019 production volumes were up over 50% compared to the second quarter of 2019, which contributed to increased revenues, lower unit costs and improvements in on-time delivery of customer orders. As a result of the improvements in operating performance, the Company’s third quarter 2019 net loss of $0.3 million was reduced by $2.0 million from the second quarter 2019 net loss of $2.3 million. Based on the Company’s current projections , operational and yield improvements, and the anticipated availability of the ABL Facility, the Company estimates it will have sufficient liquidity to fund operations through the end of the first quarter of 2020. However. there can be no assurance the Company’s plans will be achieved, or that the Company will be able to continue to borrow under its ABL Facility, secure additional financing, and/or pursue strategic alternatives on terms acceptable to the Company, or at all. Recently adopted accounting pronouncements The Company's accounting policies are the same as those described in Note 1 to the Company's consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2018 with the exception of the accounting policies related to leases. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532 - Disclosure Update and Simplification , amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule was effective on November 5, 2018. The Company adopted the guidance on January 1, 2019, and such adoption did not have a material impact on its financial statements. In February 2016, the FASB issued guidance which requires lessees to recognize 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 and, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis for all leases (with the exception of short-term leases). Under the new guidance, leases previously defined as operating leases will be presented on the balance sheet. As a result, these leases will be recorded as an asset and a corresponding liability at the present value of the total lease payments. The asset will be decremented over the life of the lease on a pro-rata basis resulting in lease expense while the liability will be decremented using the interest method (i.e. principal and interest). The Company adopted the guidance effective January 1, 2019. The Company elected the transition package of three practical expedients permitted under the transition guidance and elected the optional transition method that allows for a cumulative-effect adjustment in the period of adoption, without a restatement of prior periods. Further, the Company elected a short-term lease exception policy, permitting the Company to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. As a result of the adoption, the Company adjusted its beginning balance for the quarter ended March 31, 2019 by recording operating lease ROU assets and liabilities through a cumulative-effect adjustment. The adoption impacted the accompanying condensed balance sheet, but did not have an impact on the condensed statements of operations and comprehensive loss. At the inception of a contractual arrangement, the Company determines whether the contract contains a lease by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset in exchange for consideration over a period of time. If both criteria are met, the Company calculates the associated lease liability and corresponding ROU assets upon lease commencement using a discount rate based on a credit-adjusted secured borrowing rate commensurate with the term of the lease. The Company records lease liabilities within current or noncurrent liabilities based upon the length of time associated with the lease payments. The operating lease ROU assets includes any lease payments made and excludes lease incentives and initial direct costs incurred, if any, and are recorded as noncurrent assets. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases with an initial term of 12 months or less are not recorded on the accompanying condensed balance sheet. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The impact of the adoption of ASC 842 on the accompanying condensed balance sheet as of January 1, 2019 was as follows (in thousands. December 31, 2018 Adjustments Due to the Adoption of ASC 842 January 1, 2019 Right of Use Assets (1) Operating lease - right of use asset $ — $ 4,267 $ 4,267 Operating lease liabilities Current $ — $ 964 $ 964 Noncurrent $ — $ 3,432 $ 3,432 (1) Operating lease right-of-use assets includes deferred rent of $129 thousand Recently issued accounting pronouncements In August 2018, the FASB issued guidance which adds, amends and removes certain disclosure requirements related to fair value measurements. Among other changes, this standard requires certain additional disclosure surrounding Level 3 assets, including changes in unrealized gains or losses in other comprehensive income and certain inputs in those measurements. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Certain amended or eliminated disclosures in this standard may be adopted early, while certain additional disclosure requirements in this standard can be adopted on its effective date. In addition, certain changes in the standard require retrospective adoption, while other changes must be adopted prospectively. The Company is currently evaluating this new standard and its impact on our consolidated financial statements. Note 1A: Impairment of Consumer Night Vision Business Assets During the quarter ended June 30, 2018 the Company made a decision to exit the business associated with its two consumer night vision products, BlazeSpark and BlazeTorch (the “Consumer Night Vision Business”). The Company’s decision was based on lower than anticipated sales and an assessment performed during the quarter of the anticipated level of additional engineering, marketing and financial resources necessary to modify the products for an expanded market. As a result, the Company concluded an impairment had occurred as of June 30, 2018 and wrote-down $2.7 million of related Consumer Night Vision Business inventory, which includes an accrual of $1.4 million of inventory purchased by a contract manufacturer in anticipation of future production, and $0.1 million of production tooling, which are reflected in cost of revenues in the accompanying Consolidated Statements of Operations. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 2: Revenue Recognition All of the Company’s revenues are earned from contracts with customers and are classified as either Product or Contract revenues. Contracts include written agreements and purchase orders, as well as arrangements that are implied by customary practices or law. Product revenue is generated primarily from contracts to produce, ship and deliver OLED microdisplays. The Company’s performance obligations are satisfied, control of its products is transferred, and revenue is recognized at a single point in time when control transfers to the Company’s customer for product shipped. Our customary terms are FOB our factory and control is deemed to transfer upon shipment. The Company has elected to treat shipping and other transportation costs charged to customers as fulfillment activities and are recorded in both revenue and cost of sales at the time control is transferred to the customer. As customers are invoiced at the time control transfers and the right to consideration is unconditional at that time, the Company does not maintain contract asset balances for product revenue. Additionally, the Company does not maintain contract liability balances for product revenues, as performance obligations are satisfied prior to customer payment for product. The Company generally offers a one -year product warranty, for replacement of product only, and does not allow returns. The Company offers industry standard payment terms that typically require payment from our customers from 30 to 60 days after title transfers. The Company also recognizes revenues under the over time method from certain research and development (“R&D”) activities (contract revenues) under both firm fixed-price contracts and cost-type contracts. Progress and revenues from research and development activities relating to firm fixed-price contracts and cost-type contracts are generally recognized on an input method of accounting as costs are incurred. Under the input method, revenue is recognized based on efforts expended to date (e.g., the costs of resources consumed or labor hours worked, or machine hours used) relative to total efforts intended to be expended . Contract costs include all direct material, labor and subcontractor costs and an allocation of allowable indirect costs as defined by each contract, as periodically adjusted to reflect revised agreed upon rates. These rates are subject to audit by the other party. Any changes in estimate related to contract accounting are accounted for prospectively over the remaining life of the contract. Under the over time method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in deferred revenues as a liability on the Condensed Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported as unbilled receivables. Unbilled revenues are expected to be billed and collected within one year. The incidental costs related to obtaining product sales contracts are non-recoverable from customers and, accordingly, are expensed as incurred. The Company adopted the provisions of ASC No. 606, Revenue from Contracts with Customers, and related amendments (“ASC 606”) on January 1, 2018 using the modified retrospective adoption method with the cumulative effect of initially applying the guidance recognized at the date of initial application. During 2017, the Company analyzed its revenue recognition policies under ASC 606 and then current revenue recognition policies and determined that the performance obligations, transaction price, allocation of transaction price, recognition of contract costs and timing of revenue recognition would not be materially impacted by adopting ASC 606. Accordingly, there was no modified retrospective adoption adjustment necessary as of January 1, 2018 . Disaggregation of Revenue The Company's sells its products directly to original equipment manufacturers or OEM’s and military contractors in a diverse range of industries encompassing the military, industrial, medical, and consumer market sectors . R&D activities are performed for both military customers and U.S. Government defense related agencies. Product and Contract revenues are disclosed on the Condensed Consolidated Statements of Operations. Additional disaggregated revenue information for the three and nine-month periods ended September 30, 2019 and 2018 were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) North and South America $ 4,355 $ 4,225 $ 10,608 $ 11,237 Europe, Middle East, and Africa 3,359 2,267 7,838 7,158 Asia Pacific 205 375 946 2,405 Total $ 7,919 $ 6,867 $ 19,392 $ 20,800 Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Military $ 4,655 $ 4,780 $ 11,900 $ 15,375 Commercial, including industrial and medical 1,382 957 2,495 1,951 Consumer 206 557 952 1,658 Multiple 1,676 573 4,045 1,816 $ 7,919 $ 6,867 $ 19,392 $ 20,800 Accounts Receivable from Customers Accounts receivable, net of allowances, associated with revenue from customers were approximately $ 4.0 million and $ 3.2 million as of September 30, 2019 and December 31, 2018, respectively. Contract Assets and Liabilities Unbilled Accounts Receivables (Contract Assets) - Pursuant to the over time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled accounts receivable is recorded to reflect revenue that is recognized when the proportional performance method is applied and such revenue exceeds the amount invoiced to the customer. Unbilled receivables are disclosed on the Condensed Consolidated Balance Sheet as of September 30, 2019. Customer Advances and Deposits (Contract Liabilities) The Company recognizes a contract liability when it has billed and received consideration from the customer pursuant to the terms of a contract but has not yet recognized the related revenue. These billings in excess of revenue are classified as deferred revenue on the Condensed Consolidated Statements of Operations. Total contract assets and liabilities consisted of the following amounts (in thousands): September 30, December 31, 2019 2018 (unaudited) Unbilled Receivables (contract assets) $ 279 $ 224 Deferred Revenue (contract liabilities) (328) (38) Net contract asset (liability) $ (49) $ 186 In the three and nine months periods ended September 30, 2019, the Company recognized no revenue and revenue of $38 thousand, respectively, related to its contract liabilities that existed at December 31, 2018. In the three and nine month periods ended September 30 2018, the Company recognized no revenue and $765 thousand of revenue, respectively, related to its contract liabilities that existed at December 31, 2017. Remaining Performance Obligations . The Company has elected the practical expedient, which allows disclosure of remaining performance obligations only for contracts with an original duration of greater than one year. Such remaining performance obligations primarily relate to engineering and design services. As of September 30, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was $1.4 million. The Company expects to recognize revenue on all of its remaining performance obligations over the next 1 5 m onths . |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Sep. 30, 2019 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable, Net | Note 3: Accounts Receivable, net The majority of the Company’s commercial accounts receivable are due from OEM’s. Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable consisted of the following (in thousands): September 30, December 31, 2019 2018 (unaudited) Accounts receivable $ 4,095 $ 3,325 Less allowance for doubtful accounts (139) (139) Accounts receivable, net $ 3,956 $ 3,186 |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2019 | |
Inventories, Net [Abstract] | |
Inventories, Net | Note 4: Inventories, net The components of inventories are as follows (in thousands): September 30, December 31, 2019 2018 (unaudited) Raw materials $ 2,746 $ 3,701 Work in process 2,175 1,033 Finished goods 4,294 4,888 Total inventories 9,215 9,622 Less inventory reserve (768) (1,040) Total inventories, net $ 8,447 $ 8,582 |
Line of Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2019 | |
Line of Credit [Abstract] | |
Line of Credit | Note 5: Line of Credit On December 21, 2016, the Company entered into the ABL Facility with a lender that provides for up to a maximum amount of $5 million based on a borrowing base equivalent to 85% of eligible accounts receivable plus the lesser of $2 million or 50% of eligible inventory . The interest on the ABL Facility is equal to the Prime Rate plus 3% but may not be less than 6.5% with a minimum monthly interest payment of $2 thousand. The Company is also obligated to pay the lender a monthly administrative fee of $1 thousand and an annual facility fee equal to 1% of the maximum amount borrowable under the facility. The ABL Facility will automatically renew on December 31, 2019 for a one -year term unless written notice to terminate the agreement is provided by either party. In conjunction with entering into the financing, the Company incurred $228 thousand of debt issuance costs including lender and legal costs that will be amortized over the life of the ABL Facility. In accordance with recently issued accounting guidance, any revolving credit facility balances outstanding are presented net of these unamortized debt issuance costs on the accompanying Condensed Consolidated Balance Sheet. The ABL Facility is secured by a lien on all receivables, property and the proceeds thereof, credit insurance policies and other insurance relating to the collateral, books, records and other general intangibles, inventory and equipment, proceeds of the collateral and accounts, instruments, chattel paper, and documents. Collections received on accounts receivable are directly used to pay down the outstanding borrowings on the credit facility. The ABL Facility contains customary representations and warranties, affirmative and negative covenants and events of default. The Company is required to maintain a minimum tangible net worth of $13 million and a minimum working capital balance of $4 million at all times. As of September 30, 2019, the Company had $2.0 million in borrowings outstanding, had unused borrowing availability of $ 1.2 million and was in compliance with all financial debt covenants. Interest expense for the three and nine month periods ended September 30, 2019 include the amortization of debt issuance costs of $21 thousand, and $62 thousand, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 6: Stock-based Compensation The Company uses the fair value method of accounting for share-based compensation arrangements. The fair value of stock options is estimated at the date of grant using the Black-Scholes option valuation model. Stock-based compensation expense is reduced for estimated forfeitures and is amortized over the vesting period using the straight-line method. The following table summarizes the allocation of non-cash stock-based compensation to our expense categories for the three and nine month periods ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Cost of revenues $ 6 $ (5) $ 20 $ 29 Research and development 21 28 66 73 Selling, general and administrative 137 154 369 410 Total stock compensation expense $ 164 $ 177 $ 455 $ 512 At September 30, 2019, total unrecognized compensation costs related to stock options was approximately $0.4 million, net of estimated forfeitures. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures and is expected to be recognized over a weighted average period of approximately 0.5 years. The following key assumptions were used in the Black-Scholes option pricing model to determine the fair value of stock options granted: Nine Months Ended September 30, 2019 2018 (unaudited) Dividend yield 0 % 0 % Risk free interest rates 1.77-2.48 % 2.16-2.75 % Expected volatility 41.7 to 49.2 % 45.3 to 50.0 % Expected term (in years) 3.5 to 4.0 3.5 to 4.75 The Company does not expect to pay dividends in the near future. Therefore, the Company used an expected dividend yield of 0% . The risk-free interest rate used in the Black-Scholes option pricing model is based on applicable yield available at the date of the option grant on U.S. Treasury securities with an equivalent term. Expected volatility is based on the weighted average historical volatility of the Company’s common stock for the equivalent term. The expected term of the options represents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on historical experience and vesting schedules of similar awards. A summary of the Company’s stock option activity for the nine months ended September 30, 2019 is presented in the following table (unaudited): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2018 4,678,420 $ 2.81 Options granted 1,416,696 0.63 Options exercised (12,500) 0.70 Options forfeited (7,000) 2.66 Options cancelled or expired (659,010) 1.48 Outstanding at September 30, 2019 5,416,606 $ 2.41 3.77 $ — Vested or expected to vest at September 30, 2019 5,397,240 $ 2.41 3.47 $ — Exercisable at September 30, 2019 4,791,331 $ 2.59 3.47 $ — (1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. The aggregate intrinsic value in the table above represents the difference between the exercise price of the underlying options and the quoted price of the Company’s common stock. During the three and nine months ended September 30, 2019 the aggregate intrinsic value of options exercise d was zero , and $2 thousand, respectively. The Company issues new shares of common stock upon exercise of stock options. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | Note 7: Income Taxes The Company’s effective tax rate is calculated quarterly based upon current assumptions relating to the full year’s estimated operating results and various tax-related items. The Company’s effective tax rate for the three and nine month periods ended September 30, 2019 and 2018 was 0% . The difference between the effective tax rate of 0% and the U.S. federal statutory rate of 21% for the three and nine month periods ended September 30, 2019 and 2018 was primarily due to recognizing a full valuation allowance on deferred tax assets. As of September 30, 2019, the Company determined that, based on all available evidence, both positive and negative, including the Company’s latest forecasts and cumulative losses in recent years, it was more likely than not that none of its deferred tax assets would be realized and therefore it continued to record a full valuation allowance. The Company’s net operating loss carryforward amounts expire through 2037 and are subject to certain limitations that may occur due to a change in the ownership provisions under Section 382 of the Internal Revenue Code and similar state provisions. Due to the Company’s operating loss carryforwards, all tax years remain open to examination by the major taxing jurisdictions to which the Company is subject. In the event that the Company is assessed interest or penalties at some point in the future, it will be classified in the financial statements as tax expense. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 8: Commitments and Contingencies Equipment Purchase Commitments The Company has committed to equipment purchases of approximately $0.4 million at September 30, 2019. Litigation From time to time, the Company may become subject to various legal proceedings that are incidental to the ordinary conduct of is business. In March 2019, the Company received a demand letter seeking payment of $0.9 million of outstanding invoices relating to purchased inventory from Suga Electronics Limited, or Suga, a contract manufacturer located in China, which manufactured product sold by our consumer night vision business. The Company has responded to the demand letter, and requested that Suga provide substantiation of purchased inventory. On August 1, 2019 the Company was notified by Suga that they intend to pursue arbitration. During September and October, 2019, Company held preliminary discussions with Suga to attempt to reach a settlement, however expects that Suga will continue to pursue arbitration. As disclosed in the financial statements of our Annual Report on Form 10-K for the year ended December 31, 2018, during the quarter ended June 30, 2018, the Company made a decision to exit the Consumer Night Vision Business and accrued approximately $1.0 million related to invoices received for inventory purchased by Suga in anticipation of future production. While the Company believes that it has adequately accrued for the losses and is in discussions to resolve related claims by the contract manufacturers, there is the risk that additional losses or litigation related expenses may be incurred above the amounts accrued for as of September 30, 2019, if the Company fails to resolve these claims in a timely and/or favorable manner. |
Common Stock Warrants
Common Stock Warrants | 9 Months Ended |
Sep. 30, 2019 | |
Common Stock Warrants [Abstract] | |
Common Stock Warrants | Note 9: Common Stock Warrants The Company accounts for common stock warrants pursuant to applicable accounting guidance contained in ASC 815, "Derivatives and Hedging - Contracts in Entity's Own Equity" and makes a determination as to their treatment as either equity instruments or a warrant liability based on an analysis of the underlying warrant agreements. Liability classified warrants During January 2018, in conjunction with a registered equity offering and a concurrent private placement that closed in February 2018 , the Company issued warrants to purchase an aggregate of 4,004,324 common shares at an exercise price of $1.55 . As of September 30, 2019, related warrants to purchase 3,974,324 shares of common stock remain outstanding. The warrants have alternative settlement provisions that, at the option of the holder, provide for physical settlement or if, at the time of settlement there is no effective registration statement, a cashless exercise as defined in the warrant agreement. Based on analysis of the underlying warrant agreement and applicable accounting guidance, the Company concluded that these registered warrants require the issuance of registered securities upon exercise and do not sufficiently preclude an implied right to net cash settlement. Accordingly, these warrants were classified on the Condensed Consolidated Balance Sheet as a current liability upon issuance and will be revalued at each subsequent balance sheet date. The fair value of the liability for common stock purchase warrants is estimated using the Black Scholes option pricing model based on the market value of the underlying common stock at the measurement date, the contractual term of the warrant, risk-free interest rates, expected dividends and expected volatility of the price of the underlying common stock. The Company determined that, based on the Black Sholes methodology, the liability for the January and February 2018 common stock warrants had a fair value as of September 30, 2019 of $0.1 million. In addition, warrants the Company issued during 2017 that were classified as liabilities had a fair value of $47 thousand as of September 30, 2019. The combined changes in fair value as of September 30, 2019 was reflected as income from change in the fair market value of common stock warrant liability of $ 0.1 million and $1.5 million, respectively, in the Condensed Consolidated Statement of Operations for the three and nine month period ended September 30, 2019. Equity classified warrants As described in Note 11, in April 2019 in connection with registered direct offerings of Common Shares, the Company issued the following warrants: · Warrants to purchase up to 6,000,000 share of Company Common Shares at an exercise price of $0.78 per share expiring five and one half years from date of issuance · Pre-funded Warrants to purchase up to 4,000,000 shares of Company Common shares at an initial purchase price of $0.49 per share, and an exercise price of $0.01 per share, expiring five and one half years from date of issuance · Warrants issued to the placement agent to purchase up to 240,000 shares of Company Common Shares at an exercise price of $0.55 per common shares expiring five years from date of issuance. The three groups of warrants listed above all share similar terms, and the exercise price of the Warrant Shares are subject to adjustment in the event of any stock dividends and splits, reverse stock splits, stock dividends, recapitalizations, reorganizations or similar transactions. The Warrants will be exercisable on a “cashless” basis in certain circumstances, including in the event a registration statement is not in effect at time of exercise. All of the above warrant agreements contain a clause specifying that in the event there is no effective registration in effect for the underlying warrant shares to be issued at time of exercise, in no circumstance will the Company be required to net cash settle the warrants. Based on the Company’s analysis of the terms and conditions of the above warrants, the Company has concluded that they meet the conditions outlined in applicable accounting guidance to be classified as equity instruments. As a result, the Company has accounted for the exercise price paid by investors for purchase of the pre-funded warrants as additional paid in capital on the accompanying Balance Sheets as of September 30, 2019. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 10: Leases The Company leases office and manufacturing facilities in Hopewell Junction, NY under a non-cancelable operating lease agreement. The lease for these facilities, as amended, expires in May 2024 and does not contain a renewal option. The lease agreement does not contain any residual value guarantees, or material restrictive covenants. The Company also leases an office facility for its design group in Santa Clara, California, that expires on October 31, 2019 . Because the remaining term was less than one year as of the January 1, 2019 date of adoption of the new leasing standard, the Company elected not to apply the recognition requirement of the new leasing standard to this lease. During the fourth quarter of 2019, the Company signed a two -year extension of this lease that expires on October 31, 2021 . The Company's operating leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. The Company used incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date. On May 2, 2019, the Company entered into a three year finance lease commitment for phone equipment. Finance leases are included in Equipment, furniture and leasehold improvements, net, Finance lease liability – current portion, Finance lease liability – long term in our consolidated Balance Sheet. The components of lease expense were as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (unaudited) (unaudited) Finance Lease Cost: Amortization of right-of-use assets $ 3 $ 7 Interest on lease liabilities 1 1 Operating lease cost 246 739 Short-term lease cost 14 43 Total Lease Cost $ 264 $ 790 Other Information Cash paid for amounts included in the measurement lease liabilities: Operating cash flows from operating leases $ 251 $ 751 Financing cash flows from finance leases $ 5 $ 8 Right-of-use assets obtained in exchange for new finance lease liabilities $ - $ 50 Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ - September 30, 2019 Finance lease right-of-use assets 43 Operating lease right-of-use assets 3,790 Finance lease liability, current 16 Finance lease liability, non-current 28 Operating lease liabilities, current 704 Operating lease liabilities, non-current 3,202 Weighted average remaining lease terms - finance leases 2.58 years Weighted average remaining lease terms - operating leases 4.67 years Weighted average discount rate - Finance leases 10.91% Weighted average discount rate - operating leases 8.50% Future annual minimum lease payments and finance lease commitments as of September 30, 2019 were as follows (in thousands): Operating Leases Finance Leases 2019 (excluding the nine months ended September 30, 2019) $ 251 $ 3 2020 1,002 19 2021 1,002 19 2022 1,014 7 2023 1,022 - Thereafter 426 - Total undiscounted future minimum lease payments 4,717 48 Less imputed interest 811 4 Lease liability $ 3,906 $ 44 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 11: Shareholders’ Equity April 2019 Equity Raises On April 9, 2019, the Company closed a registered direct offering of 4 million shares of common stock at a purchase price per share of $0.50 , for gross proceeds of approximately $2.0 million before deducting placement agent fees and other offering expenses. The Company also issued unregistered warrants to the investor t o purchase up to 3 million shares of common stock at an exercise price of $0.78 per share. The warrants are exercisable nine months following issuance and will expire five and one-half years from the issuance date. On April 11, 2019, the Company closed an additional $2.0 million registered direct offering consisting of immediately exercisable pre-funded warrants to purchase up to 4 million shares of our common stock at a purchase price of $0.49 per warrant and an exercise price of $0.01 per share. In a concurrent private placement, the Company also issued to the investor in the registered direct offering unregistered warrants to purchase up to 3 million shares of the Co mpany’s common stock at an exercise price of $0.78 per share. The unregistered warrants are exercisable six months following issuance and will expire five and one-half years from the issuance date. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
The Business | The Business eMagin Corporation (the “Company”) designs, develops, manufactures and markets OLED (organic light emitting diode)–on-silicon microdisplays and virtual imaging products which utilize OLED microdisplays. The Company’s products are sold mainly in North America, Asia, and Europe. |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements of eMagin Corporation and its subsidiary reflect all adjustments, including normal recurring accruals, necessary for a fair presentation. All significant intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the SEC. The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited condensed consolidated financial statements are read in conjunction with the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The results of operations for the periods ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year. The consolidated condensed financial statements as of December 31, 2018 are derived from audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. |
Use of Estimates | Use of estimates In accordance with accounting principles generally accepted in the United States of America, management utilizes certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments related to, among others, allowance for doubtful accounts, warranty reserves, inventory reserves, stock-based compensation expense, deferred tax asset valuation allowances, litigation and other loss contingencies. Management bases its estimates and judgments on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain immaterial prior period amounts have been reclassified to conform to current period presentatio n with no impact on previously reported net income, assets or shareholders’ equity. |
Intangible Assets - Patents | Intangible Assets – Patents Acquired patents are recorded at purchase price as of the date acquired and amortized over the expected useful life which is generally the remaining life of the patent. The total intangible amortization expense was approximately $9 thousand and $24 thousand for the three and nine month periods ended September 30, 2019 and $13 thousand and $27 thousand for the comparable 2018, periods, respectively. |
Product Warranty | Product warranty The Company generally offers a one -year product replacement warranty. The standard policy is to repair or replace the defective products. The Company accrues for estimated returns of defective products at the time revenue is recognized based on historical activity as well as for specific known product issues. The determination of these accruals requires the Company to make estimates of the frequency and extent of warranty activity and estimate future costs to replace the products under warranty. If the actual warranty activity and/or repair and replacement costs differ significantly from these estimates, adjustments to cost of revenue may be required in future periods. The following table provides a summary of the activity related to the Company's warranty liability included in other current liabilities, (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Beginning balance $ 317 $ 382 $ 423 $ 468 Warranty accruals and adjustments 152 39 113 20 Warranty claims (88) (35) (155) (102) Ending balance $ 381 $ 386 $ 381 $ 386 |
Net Loss per Common Share | Net Loss per Common Share Basic loss per share is computed using the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of common stock equivalent shares such as stock options, warrants, and convertible preferred stock. Diluted loss per share is computed using the weighted average number of common shares outstanding and potentially dilutive common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is anti-dilutive. The Company’s Series B Convertible Preferred stock (“Preferred Stock – Series B”) is considered a participating security as the preferred stock participates in dividends with the common stock, which requires the use of the two-class method when computing basic and diluted earnings per share. The Preferred Stock – Series B is not required to absorb any net loss. Although the Company paid a one-time special dividend in 2012, the Company does not expect to pay dividends on its common or preferred stock in the near future. The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2019 and 2018 (in thousands, except per share and share data): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Net Loss $ (315) $ 54 $ (4,092) $ (7,083) Weighted average common shares outstanding - Basic 49,173,773 45,149,717 47,718,965 44,182,379 Dilutive effect of stock options — 115,653 — — Weighted average common shares outstanding - Diluted 49,173,773 45,265,370 47,718,965 44,182,379 Net loss per share: Basic $ (0.01) $ - $ (0.09) $ (0.16) Diluted $ (0.01) $ - $ (0.09) $ (0.16) The following table sets forth the potentially dilutive common stock equivalents for the three and nine month periods ended September 30, 2019 and 2018 that were not included in diluted EPS as their effect would be anti-dilutive: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Options 5,416,606 4,959,120 5,416,606 4,959,120 Warrants 19,295,773 9,055,773 19,295,773 9,055,773 Convertible preferred stock 7,545,333 7,545,333 7,545,333 7,545,333 Total potentially dilutive common stock equivalents 32,257,712 21,560,226 32,257,712 21,560,226 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Cash, cash equivalents, accounts receivable, short-term investments and accounts payable are stated at cost, which approximates fair value, due to the short-term nature of these instruments. The revolving credit facility is also stated at cost, which approximates fair value because the interest rate is based on a market based rate plus a margin. We have categorized our assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). Assets and liabilities recorded in the balance sheets at fair value are categorized based on a hierarchy of inputs as follows: Level 1 – Unadjusted quoted prices in active markets of identical assets or liabilities. Level 2 – Quoted prices for similar assets or liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 – Unobservable inputs for the asset or liability. The common stock warrant liability is currently the only financial asset or liability recorded at fair value on a recurring basis, and is considered a Level 3 liability. The fair value of the common stock warrant liability is included in current liabilities on the Condensed Consolidated Balance Sheets, as the warrants are currently exercisable. The following table shows the reconciliation of the Level 3 warrant liability measured and recorded at fair value on a recurring basis, using significant unobservable inputs (in thousands): Estimated Fair Value (unaudited) Balance as of January 1, 2019 $ 1,497 Change in fair value of warrant liability (1,450) Balance as of September 30, 2019 $ 47 The fair value of the liability for common stock purchase warrants at issuance and at September 30, 2019 was estimated using the Black Scholes option pricing model based on the market value of the underlying common stock at the measurement date, the remaining contractual term of the warrants from 2.7 to 3.3 years, risk-free interest rates of 1.56% , no expected dividends and expected volatility of the price of the underlying common stock of 40.1% . |
Concentrations | Concentrations The Company purchases principally all of its silicon wafers, which are a key ingredient in its OLED production process, from two suppliers located in Taiwan and Korea. For the three and nine month periods ended September 30, 2019, one customer accounted for 12% and no single customer was over 10% of net revenues, respectively. For the three and nine months ended September 30, 2018, one customer accounted for 10% and no single customer was over 10% of net revenues, respectively. As of September 30, 2019 , t wo customers accounted for 12% and 10% respectively of the Company’s consolidated accounts receivable balance and no other single customer accounted for over 10% of the consolidated accounts receivable. As of September 30, 2018 one customer accounted for 14 % and no other single customer accounted for over 10% of the consolidated accounts receivable |
Liquidity and Going Concern | Liquidity and Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. For the nine months ended September 30, 2019, the Company incurred a net loss of $4.1 million and used cash in operating activities of $5.3 million. As of September 30, 2019, the Company had $2.6 million of cash, $2.0 million of outstanding indebtedness under its asset based lending facility (the “ABL Facility”), and borrowing availability under its ABL Facility of $1.2 million. For the year ended December 31, 2018, the Company incurred a net loss of $9.5 million and used cash in operating activities of $6.4 million. Due to continuing losses, the Company’s financial position, and uncertainty regarding the Company’s ability to borrow under its ABL Facility, the Company may not be able to meet its financial obligations as they become due without additional financing or sources of capital. The Company’s ABL Facility expires on December 31, 2019 and renews automatically for another year unless terminated pursuant to its terms . Although preliminary renewal discussions with the lender are positive there is no assurance the lender will renew or extend this facility, or continue to make funds available during 2019 and beyond at present availability levels, or at all. Therefore, in accordance with applicable accounting guidance, and based on the Company’s current financial condition and availability of funds, there is substantial doubt about the Company’s ability to continue as a going concern through twelve months from the date these financial statements were issued. The Company has taken actions to increase revenues and to reduce expenses and is considering financing alternatives, but there can be no assurance that the Company will be successful in sufficiently increasing revenues, reducing expenses or securing additional financing to meet its operating needs. The Company’s plans with regard to these matters include the following actions: 1) focus production and engineering resources on improving manufacturing yields and increasing production volumes, 2) reduce senior management compensation, 3) reduce headcount and not replace departed employees, 4) reduce discretionary and other expenses, and 5 ) considering financing and/or strategic alternatives. Because of these operational efforts, the incidence of several types of display defects were reduced and production yields in the third quarter of 2019 improved over prior quarters. Third quarter 2019 production volumes were up over 50% compared to the second quarter of 2019, which contributed to increased revenues, lower unit costs and improvements in on-time delivery of customer orders. As a result of the improvements in operating performance, the Company’s third quarter 2019 net loss of $0.3 million was reduced by $2.0 million from the second quarter 2019 net loss of $2.3 million. Based on the Company’s current projections , operational and yield improvements, and the anticipated availability of the ABL Facility, the Company estimates it will have sufficient liquidity to fund operations through the end of the first quarter of 2020. However. there can be no assurance the Company’s plans will be achieved, or that the Company will be able to continue to borrow under its ABL Facility, secure additional financing, and/or pursue strategic alternatives on terms acceptable to the Company, or at all. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently adopted accounting pronouncements The Company's accounting policies are the same as those described in Note 1 to the Company's consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2018 with the exception of the accounting policies related to leases. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532 - Disclosure Update and Simplification , amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule was effective on November 5, 2018. The Company adopted the guidance on January 1, 2019, and such adoption did not have a material impact on its financial statements. In February 2016, the FASB issued guidance which requires lessees to recognize 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 and, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis for all leases (with the exception of short-term leases). Under the new guidance, leases previously defined as operating leases will be presented on the balance sheet. As a result, these leases will be recorded as an asset and a corresponding liability at the present value of the total lease payments. The asset will be decremented over the life of the lease on a pro-rata basis resulting in lease expense while the liability will be decremented using the interest method (i.e. principal and interest). The Company adopted the guidance effective January 1, 2019. The Company elected the transition package of three practical expedients permitted under the transition guidance and elected the optional transition method that allows for a cumulative-effect adjustment in the period of adoption, without a restatement of prior periods. Further, the Company elected a short-term lease exception policy, permitting the Company to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. As a result of the adoption, the Company adjusted its beginning balance for the quarter ended March 31, 2019 by recording operating lease ROU assets and liabilities through a cumulative-effect adjustment. The adoption impacted the accompanying condensed balance sheet, but did not have an impact on the condensed statements of operations and comprehensive loss. At the inception of a contractual arrangement, the Company determines whether the contract contains a lease by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset in exchange for consideration over a period of time. If both criteria are met, the Company calculates the associated lease liability and corresponding ROU assets upon lease commencement using a discount rate based on a credit-adjusted secured borrowing rate commensurate with the term of the lease. The Company records lease liabilities within current or noncurrent liabilities based upon the length of time associated with the lease payments. The operating lease ROU assets includes any lease payments made and excludes lease incentives and initial direct costs incurred, if any, and are recorded as noncurrent assets. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases with an initial term of 12 months or less are not recorded on the accompanying condensed balance sheet. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The impact of the adoption of ASC 842 on the accompanying condensed balance sheet as of January 1, 2019 was as follows (in thousands. December 31, 2018 Adjustments Due to the Adoption of ASC 842 January 1, 2019 Right of Use Assets (1) Operating lease - right of use asset $ — $ 4,267 $ 4,267 Operating lease liabilities Current $ — $ 964 $ 964 Noncurrent $ — $ 3,432 $ 3,432 (1) Operating lease right-of-use assets includes deferred rent of $129 thousand Recently issued accounting pronouncements In August 2018, the FASB issued guidance which adds, amends and removes certain disclosure requirements related to fair value measurements. Among other changes, this standard requires certain additional disclosure surrounding Level 3 assets, including changes in unrealized gains or losses in other comprehensive income and certain inputs in those measurements. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Certain amended or eliminated disclosures in this standard may be adopted early, while certain additional disclosure requirements in this standard can be adopted on its effective date. In addition, certain changes in the standard require retrospective adoption, while other changes must be adopted prospectively. The Company is currently evaluating this new standard and its impact on our consolidated financial statements. |
Note 1A: Impairment of Consumer Night Vision Business Assets | Note 1A: Impairment of Consumer Night Vision Business Assets During the quarter ended June 30, 2018 the Company made a decision to exit the business associated with its two consumer night vision products, BlazeSpark and BlazeTorch (the “Consumer Night Vision Business”). The Company’s decision was based on lower than anticipated sales and an assessment performed during the quarter of the anticipated level of additional engineering, marketing and financial resources necessary to modify the products for an expanded market. As a result, the Company concluded an impairment had occurred as of June 30, 2018 and wrote-down $2.7 million of related Consumer Night Vision Business inventory, which includes an accrual of $1.4 million of inventory purchased by a contract manufacturer in anticipation of future production, and $0.1 million of production tooling, which are reflected in cost of revenues in the accompanying Consolidated Statements of Operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Activity Related to Warranty Liability Included in Other Current Liabilities | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Beginning balance $ 317 $ 382 $ 423 $ 468 Warranty accruals and adjustments 152 39 113 20 Warranty claims (88) (35) (155) (102) Ending balance $ 381 $ 386 $ 381 $ 386 |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Net Loss $ (315) $ 54 $ (4,092) $ (7,083) Weighted average common shares outstanding - Basic 49,173,773 45,149,717 47,718,965 44,182,379 Dilutive effect of stock options — 115,653 — — Weighted average common shares outstanding - Diluted 49,173,773 45,265,370 47,718,965 44,182,379 Net loss per share: Basic $ (0.01) $ - $ (0.09) $ (0.16) Diluted $ (0.01) $ - $ (0.09) $ (0.16) |
Schedule of Potentially Dilutive Common Stock Equivalents | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Options 5,416,606 4,959,120 5,416,606 4,959,120 Warrants 19,295,773 9,055,773 19,295,773 9,055,773 Convertible preferred stock 7,545,333 7,545,333 7,545,333 7,545,333 Total potentially dilutive common stock equivalents 32,257,712 21,560,226 32,257,712 21,560,226 |
Reconciliation of the Level 3 Warrant Liability Measured and Recorded at Fair Value on a Recurring Basis | Estimated Fair Value (unaudited) Balance as of January 1, 2019 $ 1,497 Change in fair value of warrant liability (1,450) Balance as of September 30, 2019 $ 47 |
Impact of Adoption of ASC 842 on Balance Sheet | December 31, 2018 Adjustments Due to the Adoption of ASC 842 January 1, 2019 Right of Use Assets (1) Operating lease - right of use asset $ — $ 4,267 $ 4,267 Operating lease liabilities Current $ — $ 964 $ 964 Noncurrent $ — $ 3,432 $ 3,432 (1) Operating lease right-of-use assets includes deferred rent of $129 thousand |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of Disaggregated Revenue | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) North and South America $ 4,355 $ 4,225 $ 10,608 $ 11,237 Europe, Middle East, and Africa 3,359 2,267 7,838 7,158 Asia Pacific 205 375 946 2,405 Total $ 7,919 $ 6,867 $ 19,392 $ 20,800 Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Military $ 4,655 $ 4,780 $ 11,900 $ 15,375 Commercial, including industrial and medical 1,382 957 2,495 1,951 Consumer 206 557 952 1,658 Multiple 1,676 573 4,045 1,816 $ 7,919 $ 6,867 $ 19,392 $ 20,800 |
Schedule of Contract Assets and Liabilities | September 30, December 31, 2019 2018 (unaudited) Unbilled Receivables (contract assets) $ 279 $ 224 Deferred Revenue (contract liabilities) (328) (38) Net contract asset (liability) $ (49) $ 186 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable | September 30, December 31, 2019 2018 (unaudited) Accounts receivable $ 4,095 $ 3,325 Less allowance for doubtful accounts (139) (139) Accounts receivable, net $ 3,956 $ 3,186 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventories, Net [Abstract] | |
Schedule of Components of Inventories | September 30, December 31, 2019 2018 (unaudited) Raw materials $ 2,746 $ 3,701 Work in process 2,175 1,033 Finished goods 4,294 4,888 Total inventories 9,215 9,622 Less inventory reserve (768) (1,040) Total inventories, net $ 8,447 $ 8,582 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stock-Based Compensation [Abstract] | |
Schedule of Allocation of Non-Cash Stock-Based Compensation | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Cost of revenues $ 6 $ (5) $ 20 $ 29 Research and development 21 28 66 73 Selling, general and administrative 137 154 369 410 Total stock compensation expense $ 164 $ 177 $ 455 $ 512 |
Schedule of Key Assumptions of Fair Value of Stock Options Granted | Nine Months Ended September 30, 2019 2018 (unaudited) Dividend yield 0 % 0 % Risk free interest rates 1.77-2.48 % 2.16-2.75 % Expected volatility 41.7 to 49.2 % 45.3 to 50.0 % Expected term (in years) 3.5 to 4.0 3.5 to 4.75 |
Schedule of Option Activity | Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2018 4,678,420 $ 2.81 Options granted 1,416,696 0.63 Options exercised (12,500) 0.70 Options forfeited (7,000) 2.66 Options cancelled or expired (659,010) 1.48 Outstanding at September 30, 2019 5,416,606 $ 2.41 3.77 $ — Vested or expected to vest at September 30, 2019 5,397,240 $ 2.41 3.47 $ — Exercisable at September 30, 2019 4,791,331 $ 2.59 3.47 $ — (1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (unaudited) (unaudited) Finance Lease Cost: Amortization of right-of-use assets $ 3 $ 7 Interest on lease liabilities 1 1 Operating lease cost 246 739 Short-term lease cost 14 43 Total Lease Cost $ 264 $ 790 |
Schedule of Other Information | Other Information Cash paid for amounts included in the measurement lease liabilities: Operating cash flows from operating leases $ 251 $ 751 Financing cash flows from finance leases $ 5 $ 8 Right-of-use assets obtained in exchange for new finance lease liabilities $ - $ 50 Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ - September 30, 2019 Finance lease right-of-use assets 43 Operating lease right-of-use assets 3,790 Finance lease liability, current 16 Finance lease liability, non-current 28 Operating lease liabilities, current 704 Operating lease liabilities, non-current 3,202 Weighted average remaining lease terms - finance leases 2.58 years Weighted average remaining lease terms - operating leases 4.67 years Weighted average discount rate - Finance leases 10.91% Weighted average discount rate - operating leases 8.50% |
Future Annual Minimum Lease Payments and Finance Lease Commitments | Operating Leases Finance Leases 2019 (excluding the nine months ended September 30, 2019) $ 251 $ 3 2020 1,002 19 2021 1,002 19 2022 1,014 7 2023 1,022 - Thereafter 426 - Total undiscounted future minimum lease payments 4,717 48 Less imputed interest 811 4 Lease liability $ 3,906 $ 44 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2019USD ($)itemcustomer | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($)customer | Jun. 30, 2018USD ($)item | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($)itemcustomer | Sep. 30, 2018USD ($)customer | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Accounting Policies [Line Items] | ||||||||||
Total intangible amortization expense | $ 9 | $ 13 | $ 24 | $ 27 | ||||||
Standard product warranty period | 1 year | |||||||||
Net loss | 315 | $ 2,338 | $ 1,439 | (63) | $ 5,066 | $ 2,081 | $ 4,092 | 7,083 | $ 9,500 | |
Net cash used in operating activities | 5,253 | 4,375 | 6,400 | |||||||
Cash and cash equivalents | 2,563 | $ 6,190 | 2,563 | 6,190 | $ 3,359 | $ 3,526 | ||||
Outstanding debt | $ 2,000 | $ 2,000 | ||||||||
Percentage increase in production volume | 50.00% | |||||||||
Increase in net income | $ 2,000 | |||||||||
Impairment of Consumer Night Vision inventory | 2,700 | 2,690 | ||||||||
Accrual of inventory | 1,400 | |||||||||
Impairment of Consumer Night Vision tooling | $ 100 | $ 76 | ||||||||
Warrants [Member] | Measurement Input, Expected Dividend Rate [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Measurement input | item | 0 | 0 | ||||||||
Minimum [Member] | Warrants [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Expected term | 2 years 8 months 12 days | 2 years 8 months 12 days | ||||||||
Minimum [Member] | Warrants [Member] | Measurement Input, Price Volatility [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Measurement input | item | 0.401 | 0.401 | ||||||||
Maximum [Member] | Warrants [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Expected term | 3 years 3 months 18 days | 3 years 3 months 18 days | ||||||||
Maximum [Member] | Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Measurement input | item | 0.0156 | 0.0156 | ||||||||
Revolving Credit Facility [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Remaining borrowing capacity | $ 1,200 | $ 1,200 | ||||||||
Revenues [Member] | Customer Concentration Risk [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Number of customers | customer | 1 | 1 | 1 | 1 | ||||||
Revenues [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Concentration risk percentage | 12.00% | 10.00% | 12.00% | 10.00% | ||||||
Cost of Goods, Product Line [Member] | Supplier Concentration Risk [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Number of suppliers | item | 2 | |||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Number of customers | customer | 2 | 1 | ||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Concentration risk percentage | 12.00% | 14.00% | ||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Concentration risk percentage | 10.00% | |||||||||
Consumer Night Vision [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Number of products | item | 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Summary of Activity Related to Warranty Liability Included in Other Current Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | ||||
Beginning balance | $ 317 | $ 382 | $ 423 | $ 468 |
Warranty accruals and adjustments | 152 | 39 | 113 | 20 |
Warranty claims | (88) | (35) | (155) | (102) |
Ending balance | $ 381 | $ 386 | $ 381 | $ 386 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | ||||
Net Loss | $ (315) | $ 54 | $ (4,092) | $ (7,083) |
Weighted average common shares outstanding - Basic | 49,173,773 | 45,149,717 | 47,718,965 | 44,182,379 |
Dilutive effect of stock options | 115,653 | |||
Weighted average common shares outstanding - Diluted | 49,173,773 | 45,265,370 | 47,718,965 | 44,182,379 |
Net loss per share: Basic | $ (0.01) | $ (0.09) | $ (0.16) | |
Net loss per share: Diluted | $ (0.01) | $ (0.09) | $ (0.16) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Schedule of Potentially Dilutive Common Stock Equivalents) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive common stock equivalents | 32,257,712 | 21,560,226 | 32,257,712 | 21,560,226 |
Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive common stock equivalents | 5,416,606 | 4,959,120 | 5,416,606 | 4,959,120 |
Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive common stock equivalents | 19,295,773 | 9,055,773 | 19,295,773 | 9,055,773 |
Convertible Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive common stock equivalents | 7,545,333 | 7,545,333 | 7,545,333 | 7,545,333 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Reconciliation of the Level 3 Warrant Liability Measured and Recorded at Fair Value on a Recurring Basis) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Summary of Significant Accounting Policies [Abstract] | |
Balance as of January 1, 2019 | $ 1,497 |
Change in fair value of warrant liability | (1,450) |
Balance as of September 30, 2019 | $ 47 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Impact of Adoption of ASC 842 on Balance Sheet) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease - right of use asset | $ 3,790 | $ 4,267 | ||
Operating lease liabilities, current | 704 | 964 | ||
Operating lease liabilities, non-current | 3,202 | 3,432 | ||
Deferred rent | $ 328 | 129 | $ 38 | |
Adjustments Due to the Adoption of ASC 842 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease - right of use asset | 4,267 | |||
Operating lease liabilities, current | 964 | |||
Operating lease liabilities, non-current | $ 3,432 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | Jan. 01, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Revenue from Contract with Customer [Line Items] | ||||||
Standard product warranty period | 1 year | |||||
Unbilled revenue, billed and collected, term | 1 year | |||||
Revenues from contract with customer | $ 7,919,000 | $ 6,867,000 | $ 19,392,000 | $ 20,800,000 | ||
Accounts receivable, net | $ 3,956,000 | 3,956,000 | $ 3,186,000 | |||
Revenue recognized related to contract liabilities | $ 0 | $ 38,000 | $ 765,000 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||
Revenue from Contract with Customer [Line Items] | ||||||
Revenues from contract with customer | $ 0 | |||||
Minimum [Member] | ||||||
Revenue from Contract with Customer [Line Items] | ||||||
Accounts receivable, balance due | 30 days | |||||
Maximum [Member] | ||||||
Revenue from Contract with Customer [Line Items] | ||||||
Accounts receivable, balance due | 60 days |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligations Narrative) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-30 $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 1.4 |
Remaining performance obligation, expected timing of satisfaction, period | 15 months |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | $ 7,919 | $ 6,867 | $ 19,392 | $ 20,800 |
Military [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | 4,655 | 4,780 | 11,900 | 15,375 |
Commercial, including Industrial and Medical [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | 1,382 | 957 | 2,495 | 1,951 |
Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | 206 | 557 | 952 | 1,658 |
Multiple [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | 1,676 | 573 | 4,045 | 1,816 |
North and South America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | 4,355 | 4,225 | 10,608 | 11,237 |
Europe, Middle East, and Africa [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | 3,359 | 2,267 | 7,838 | 7,158 |
Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contract with customer | $ 205 | $ 375 | $ 946 | $ 2,405 |
Revenue Recognition (Schedule_2
Revenue Recognition (Schedule of Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Sep. 30, 2018 |
Revenue Recognition [Abstract] | |||
Unbilled Receivables (contract assets) | $ 279 | $ 224 | |
Deferred Revenue (contract liabilities) | (328) | $ (129) | (38) |
Net contract asset (liability) | $ (49) | $ 186 |
Accounts Receivable, Net (Sched
Accounts Receivable, Net (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts Receivable, Net [Abstract] | ||
Accounts receivable | $ 4,095 | $ 3,325 |
Less allowance for doubtful accounts | (139) | (139) |
Accounts receivable, net | $ 3,956 | $ 3,186 |
Inventories, Net (Schedule of C
Inventories, Net (Schedule of Components of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventories, Net [Abstract] | ||
Raw materials | $ 2,746 | $ 3,701 |
Work in process | 2,175 | 1,033 |
Finished goods | 4,294 | 4,888 |
Total inventories | 9,215 | 9,622 |
Less inventory reserve | (768) | (1,040) |
Total inventories, net | $ 8,447 | $ 8,582 |
Line of Credit (Narrative) (Det
Line of Credit (Narrative) (Details) - USD ($) | Dec. 21, 2016 | Sep. 30, 2019 | Sep. 30, 2019 |
Line of Credit Facility [Line Items] | |||
Amortization of debt issuance costs | $ 21,000 | $ 62,000 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Borrowing capacity description | provides for up to a maximum amount of $5 million based on a borrowing base equivalent to 85% of eligible accounts receivable plus the lesser of $2 million or 50% of eligible inventory. | ||
Maximum borrowing capacity | $ 5,000,000 | ||
Borrowing base equivalent of eligible accounts receivable, percentage | 85.00% | ||
Borrowing base equivalent of eligible inventory | $ 2,000,000 | ||
Borrowing base equivalent of eligible inventory, percentage | 50.00% | ||
Minimum interest rate | 6.50% | ||
Monthly interest payment | $ 2,000 | ||
Monthly administrative fee | $ 1,000 | ||
Annual facility fee on maximum amount borrowable | 1.00% | ||
Automatic renewal date | Dec. 31, 2019 | ||
Automatic renewal term | 1 year | ||
Debt issuance costs | $ 228,000 | ||
Minimum net worth required | 13,000,000 | $ 13,000,000 | |
Minimum working capital required | 4,000,000 | 4,000,000 | |
Outstanding amount on credit facility | 2,000,000 | 2,000,000 | |
Remaining borrowing capacity | $ 1,200,000 | $ 1,200,000 | |
Revolving Credit Facility [Member] | Prime Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 3.00% |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock-Based Compensation [Abstract] | |||
Unrecognized stock option compensation, net of forfeitures | $ 400,000 | $ 400,000 | |
Unrecognized compensation cost, weighted average period of recognition | 6 months | ||
Dividend yield | 0.00% | 0.00% | |
Intrinsic value of options exercised | $ 0 | $ 2,000 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Allocation of Non-Cash Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | $ 164 | $ 177 | $ 455 | $ 512 |
Cost of Revenues [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | 6 | (5) | 20 | 29 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | 21 | 28 | 66 | 73 |
Selling, General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock compensation expense | $ 137 | $ 154 | $ 369 | $ 410 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of Key Assumptions of Fair Value of Stock Options Granted) (Details) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Risk free interest rates, minimum | 1.77% | 2.16% |
Risk free interest rates, maximum | 2.48% | 2.75% |
Expected volatility, minimum | 41.70% | 45.30% |
Expected volatility, maximum | 49.20% | 50.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 3 years 6 months | 3 years 6 months |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 4 years | 4 years 9 months |
Stock-Based Compensation (Sch_3
Stock-Based Compensation (Schedule of Option Activity) (Details) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Stock-Based Compensation [Abstract] | |
Number of Shares, Outstanding at December 31, 2018 | shares | 4,678,420 |
Number of Shares, Options granted | shares | 1,416,696 |
Number of Shares, Options exercised | shares | (12,500) |
Number of Shares, Options forfeited | shares | (7,000) |
Number of Shares, Options cancelled or expired | shares | (659,010) |
Number of Shares, Outstanding at September 30, 2019 | shares | 5,416,606 |
Number of Shares, Vested or expected to vest at September 30, 2019 | shares | 5,397,240 |
Number of Shares, Exercisable at September 30, 2019 | shares | 4,791,331 |
Weighted Average Exercise Price, Outstanding at December 31, 2018 | $ / shares | $ 2.81 |
Weighted Average Exercise Price, Options granted | $ / shares | 0.63 |
Weighted Average Exercise Price, Options exercised | $ / shares | 0.70 |
Weighted Average Exercise Price, Options forfeited | $ / shares | 2.66 |
Weighted Average Exercise Price, Options cancelled or expired | $ / shares | 1.48 |
Weighted Average Exercise Price, Outstanding at September 30, 2019 | $ / shares | 2.41 |
Weighted Average Exercise Price, Vested or expected to vest at September 30, 2019 | $ / shares | 2.41 |
Weighted Average Exercise Price, Exercisable at September 30, 2019 | $ / shares | $ 2.59 |
Weighted Average Remaining Contractual Life (In Years), Outstanding at September 30, 2019 | 3 years 9 months 7 days |
Weighted Average Remaining Contractual Life (In Years), Vested or expected to vest at September 30, 2019 | 3 years 5 months 19 days |
Weighted Average Remaining Contractual Life (In Years), Exercisable at September 30, 2019 | 3 years 5 months 19 days |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Taxes [Abstract] | ||||
Effective tax rate | 0.00% | 0.00% | 0.00% | 0.00% |
U.S. Federal income tax benefit at federal statutory rate | 21.00% | 21.00% | 21.00% | 21.00% |
Deferred tax asset that will more than likely be realized | $ 0 | $ 0 | ||
Operating loss carryforward, expiration | Dec. 31, 2037 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Mar. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Commitments and Contingencies [Abstract] | |||
Equipment purchases commitments | $ 0.4 | ||
Demand letter for payment | $ 0.9 | ||
Consumer Night Vision, accrued invoices | $ 1 |
Common Stock Warrants (Narrativ
Common Stock Warrants (Narrative) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Apr. 30, 2019$ / sharesitemshares | Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($) | Apr. 11, 2019$ / sharesshares | Apr. 09, 2019$ / sharesshares | Dec. 31, 2018USD ($) | Jan. 31, 2018$ / sharesshares | |
Class of Warrant or Right [Line Items] | |||||||||
Fair value of warrant liability | $ | $ 47 | $ 47 | $ 1,497 | ||||||
Change in fair value of common stock warrant liability | $ | 120 | $ 1,311 | 1,450 | $ 387 | |||||
Number of groups of warrants | item | 3 | ||||||||
2017 Offering [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Fair value of warrant liability | $ | $ 47 | $ 47 | |||||||
Equity Offering and Private Placement [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Equity offering and private placement close date | 2018-02 | ||||||||
Number of shares of common stock called by warrants | shares | 4,004,324 | ||||||||
Warrants exercise price per share | $ 1.55 | ||||||||
Warrants outstanding | shares | 3,974,324 | 3,974,324 | |||||||
Fair value of warrant liability | $ | $ 100 | $ 100 | |||||||
Registered Direct Offering [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Common stock, price per share | $ 0.50 | ||||||||
Unregistered [Member] | Registered Direct Offering [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Number of shares of common stock called by warrants | shares | 6,000,000 | 3,000,000 | 3,000,000 | ||||||
Warrants exercise price per share | $ 0.78 | $ 0.78 | $ 0.78 | ||||||
Warrant term | 5 years 6 months | 5 years 6 months | 5 years 6 months | ||||||
Prefunded [Member] | Registered Direct Offering [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Number of shares of common stock called by warrants | shares | 4,000,000 | 4,000,000 | |||||||
Warrants exercise price per share | $ 0.01 | $ 0.01 | |||||||
Common stock, price per share | $ 0.49 | $ 0.49 | |||||||
Warrant term | 5 years 6 months | ||||||||
Placement Agent [Member] | Registered Direct Offering [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Number of shares of common stock called by warrants | shares | 240,000 | ||||||||
Warrants exercise price per share | $ 0.55 | ||||||||
Warrant term | 5 years |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2019 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Weighted-average remaining lease term (years) | 5 years 2 months 1 day | |
Finance lease, term of contract | 3 years | |
Scenario, Forecast [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lease extension term | 2 years | |
Lease extension expiration date | Oct. 31, 2021 | |
Hopewell Junction, NY [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lease expiration date | May 31, 2024 | |
Santa Clara, California [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lease expiration date | Oct. 31, 2019 | |
Santa Clara, California [Member] | Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Weighted-average remaining lease term (years) | 1 year |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Finance Lease Cost: | ||
Amortization of right-of-use assets | $ 3 | $ 7 |
Interest on lease liabilities | 1 | 1 |
Operating lease cost | 246 | 739 |
Short-term lease cost | 14 | 43 |
Total Lease Cost | $ 264 | $ 790 |
Leases (Schedule of Other Infor
Leases (Schedule of Other Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||||
Operating cash flows from operating leases | $ 251 | $ 751 | ||
Financing cash flows from finance leases | 5 | 8 | ||
Right-of-use assets obtained in exchange for new finance lease liabilities | 50 | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | ||||
Finance lease right-of-use assets | 43 | 43 | ||
Operating lease right-of-use assets | 3,790 | 3,790 | $ 4,267 | |
Finance lease liability, current | 16 | 16 | ||
Finance lease liability, non-current | 28 | 28 | ||
Operating lease liabilities, current | 704 | 704 | 964 | |
Operating lease liabilities, non-current | $ 3,202 | $ 3,202 | $ 3,432 | |
Weighted average remaining lease terms - finance leases | 2 years 11 months 1 day | 2 years 11 months 1 day | ||
Weighted average remaining lease terms - operating leases | 5 years 2 months 1 day | 5 years 2 months 1 day | ||
Weighted average discount rate - Finance leases | 10.91% | 10.91% | ||
Weighted average discount rate - operating leases | 8.50% | 8.50% |
Leases (Future Annual Minimum L
Leases (Future Annual Minimum Lease Payments and Finance Lease Commitments) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Leases | |
2019 (excluding the nine months ended September 30, 2019) | $ 251 |
2020 | 1,002 |
2021 | 1,002 |
2022 | 1,014 |
2023 | 1,022 |
Thereafter | 426 |
Total undiscounted future minimum lease payments | 4,717 |
Less imputed interest | 811 |
Lease liability | 3,906 |
Finance Leases | |
2019 (excluding the six months ended June 30, 2019) | 3 |
2020 | 19 |
2021 | 19 |
2022 | 7 |
2023 | |
Thereafter | |
Total undiscounted future minimum lease payments | 48 |
Less imputed interest | 4 |
Lease liability | $ 44 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 11, 2019 | Apr. 09, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Apr. 30, 2019 |
Class of Stock [Line Items] | |||||
Proceeds from offering | $ 3,303 | $ 12,172 | |||
Registered Direct Offering [Member] | |||||
Class of Stock [Line Items] | |||||
Shares issued | 4,000,000 | ||||
Common stock, price per share | $ 0.50 | ||||
Proceeds from offering | $ 2,000 | ||||
Unregistered [Member] | Registered Direct Offering [Member] | |||||
Class of Stock [Line Items] | |||||
Number of shares of common stock called by warrants | 3,000,000 | 3,000,000 | 6,000,000 | ||
Warrants exercise price per share | $ 0.78 | $ 0.78 | $ 0.78 | ||
Period after issuance in which warrants are exercisable | 6 months | 9 months | |||
Warrant term | 5 years 6 months | 5 years 6 months | 5 years 6 months | ||
Prefunded [Member] | Registered Direct Offering [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock, price per share | $ 0.49 | $ 0.49 | |||
Number of shares of common stock called by warrants | 4,000,000 | 4,000,000 | |||
Warrants exercise price per share | $ 0.01 | $ 0.01 | |||
Warrant term | 5 years 6 months | ||||
Warrants issued, value | $ 2,000 |