Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 01, 2023 | Jun. 30, 2022 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-15751 | ||
Entity Registrant Name | eMAGIN CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 56-1764501 | ||
Entity Address, Address Line One | 700 South Drive | ||
Entity Address, Address Line Two | Suite 201 | ||
Entity Address, City or Town | Hopewell Junction | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 12533 | ||
City Area Code | 845 | ||
Local Phone Number | 838-7900 | ||
Title of 12(b) Security | Common Stock, $.001 Par Value Per Share | ||
Trading Symbol | EMAN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 46.5 | ||
Entity Common Stock, Shares Outstanding | 82,458,198 | ||
Documents Incorporated by Reference | The information required by Part III of this Report, to the extent not set forth herein, is incorporated herein by reference from the registrant’s definitive proxy statement relating to the Annual Meeting of Stockholders to be held in 2023, which definitive proxy statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Report relates. | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001046995 | ||
Auditor Firm ID | 49 | ||
Auditor Name | RSM US LLP | ||
Auditor Location | Stamford, Connecticut |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 4,346 | $ 5,724 |
Restricted cash | 303 | 806 |
Accounts receivable, net | 7,035 | 4,488 |
Account receivable-due from government awards | 501 | 292 |
Unbilled accounts receivable | 2,438 | 1,102 |
Inventories | 8,709 | 7,632 |
Prepaid expenses and other current assets | 594 | 691 |
Total current assets | 23,926 | 20,735 |
Property, plant and equipment, net | 49,099 | 30,483 |
Operating lease right-of-use assets | 53 | 113 |
Intangibles and other assets | 29 | 37 |
Total assets | 73,107 | 51,368 |
Current liabilities: | ||
Accounts payable | 2,077 | 1,348 |
Accrued compensation | 1,662 | 1,664 |
Revolving credit facility, net | 1,037 | 1,974 |
Common stock warrant liability | 1,374 | |
Other accrued expenses | 659 | 722 |
Deferred revenue | 12 | 54 |
Operating lease liability - current | 54 | 60 |
Finance lease liability - current | 1,229 | 1,133 |
Other current liabilities | 231 | 608 |
Total current liabilities | 6,961 | 8,937 |
Other liability - long term | 14 | 28 |
Deferred income - government awards - long term | 28,729 | 12,458 |
Operating lease liability - long term | 54 | |
Finance lease liability - long term | 13,608 | 11,647 |
Total liabilities | 49,312 | 33,124 |
Commitments and contingencies (Note 15) | ||
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, $0.001 par value: 10,000 shares designated and 5,356 issued and outstanding as of December 31, 2022 and 5,659 issued and outstanding as of December 31, 2021. | ||
Common stock, $0.001 par value: authorized 200,000,000 shares, issued 81,241,516 shares, outstanding 81,079,450 shares as of December 31, 2022 and issued 72,931,490 shares, outstanding 72,769,424 shares as of December 31, 2021. | 80 | 72 |
Additional paid-in capital | 282,582 | 275,936 |
Accumulated deficit | (258,367) | (257,264) |
Treasury stock, 162,066 shares as of December 31, 2022 and December 31, 2021. | (500) | (500) |
Total shareholders' equity | 23,795 | 18,244 |
Total liabilities and shareholders' equity | $ 73,107 | $ 51,368 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
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 | 81,241,516 | 72,931,490 |
Common stock, shares outstanding | 81,079,450 | 72,769,424 |
Treasury stock, shares | 162,066 | 162,066 |
Preferred Stock- Series B [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, liquidation preference | $ 5,356 | $ 5,356 |
Preferred stock, stated value | $ 1,000 | $ 1,000 |
Preferred stock, shares designated | 10,000 | 10,000 |
Preferred stock, shares issued | 5,356 | 5,659 |
Preferred stock, shares outstanding | 5,356 | 5,659 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | ||
Total revenues, net | $ 30,531 | $ 26,046 |
Cost of revenues: | ||
Total cost of revenues | 20,207 | 21,453 |
Gross profit | 10,324 | 4,593 |
Operating expenses: | ||
Research and development | 5,376 | 6,976 |
Selling, general and administrative | 7,883 | 7,579 |
Total operating expenses | 13,259 | 14,555 |
Loss from operations | (2,935) | (9,962) |
Other (expense) income: | ||
Change in fair value of common stock warrant liability | 1,374 | 3,248 |
Interest expense, net | (963) | (851) |
Gain on forgiveness of debt | 1,963 | |
Other income, net | 1,421 | 396 |
Total other income (expense) | 1,832 | 4,756 |
Loss before provision for income taxes | (1,103) | (5,206) |
Income taxes | ||
Net Loss | $ (1,103) | $ (5,206) |
Loss per share, basic | $ (0.01) | $ (0.07) |
Loss per share, diluted | $ (0.01) | $ (0.12) |
Weighted average number of shares outstanding: | ||
Basic | 75,637,340 | 71,899,057 |
Diluted | 75,637,340 | 73,179,438 |
Product [Member] | ||
Revenues: | ||
Total revenues, net | $ 28,844 | $ 24,176 |
Cost of revenues: | ||
Cost of revenues | 19,372 | 20,480 |
Contract [Member] | ||
Revenues: | ||
Total revenues, net | 1,687 | 1,870 |
Cost of revenues: | ||
Cost of revenues | $ 835 | $ 973 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2020 | $ 69 | $ 268,729 | $ (252,058) | $ (500) | $ 16,240 | |
Balance, shares at Dec. 31, 2020 | 5,659 | 68,890,819 | ||||
Exercise of common stock warrants | $ 3 | 5,649 | $ 5,652 | |||
Exercise of common stock warrants, shares | 3,343,660 | 3,343,660 | ||||
Exercising of options | 725 | $ 725 | ||||
Exercising of options, shares | 446,551 | 446,551 | ||||
Vesting of RSUs, shares | 16,667 | |||||
Public offering of common shares, net of offering costs | 183 | $ 183 | ||||
Public offering of common shares, net of offering costs, shares | 233,793 | |||||
Stock based compensation | 650 | 650 | ||||
Net loss | (5,206) | (5,206) | ||||
Balance at Dec. 31, 2021 | $ 72 | 275,936 | (257,264) | (500) | 18,244 | |
Balance, shares at Dec. 31, 2021 | 5,659 | 72,931,490 | ||||
Vesting of RSUs, shares | 145,126 | |||||
Public offering of common shares, net of offering costs | $ 7 | 5,760 | $ 5,767 | |||
Public offering of common shares, net of offering costs, shares | 7,162,253 | |||||
Conversion of preferred stock | $ 1 | (1) | ||||
Conversion of preferred stock, shares | (303) | 1,002,647 | (1,002,647) | |||
Stock based compensation | 887 | $ 887 | ||||
Net loss | (1,103) | (1,103) | ||||
Balance at Dec. 31, 2022 | $ 80 | $ 282,582 | $ (258,367) | $ (500) | $ 23,795 | |
Balance, shares at Dec. 31, 2022 | 5,356 | 81,241,516 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (1,103) | $ (5,206) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,825 | 2,815 |
Change in fair value of common stock warrant liability | (1,374) | (3,248) |
Gain on forgiveness of debt | (1,963) | |
Stock-based compensation | 887 | 650 |
Amortization of operating lease right-of-use assets | 60 | (63) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,756) | 1,547 |
Unbilled accounts receivable | (1,336) | (849) |
Inventories | (1,077) | 747 |
Prepaid expenses and other current assets | 97 | 128 |
Deferred revenues | (42) | (371) |
Operating lease liabilities | (60) | 187 |
Accounts payable, accrued expenses, and other current liabilities | 344 | (1,805) |
Net cash used in operating activities | (3,535) | (7,431) |
Cash flows from investing activities: | ||
Purchase of equipment | (2,757) | (1,420) |
Purchase of equipment, government grant | (16,437) | (10,475) |
Net cash used in investing activities | (19,194) | (11,895) |
Cash flows from financing activities: | ||
Borrowings (repayments) under revolving line of credit, net | (937) | 99 |
Proceeds from public offering, net | 5,767 | 183 |
Change in finance lease liabilities | (183) | (293) |
Proceeds from government grant | 16,201 | 9,064 |
Proceeds from warrant exercise | 5,652 | |
Proceeds from exercise of stock options | 725 | |
Net cash provided by financing activities | 20,848 | 15,430 |
Net decrease in cash, cash equivalents, and restricted cash | (1,881) | (3,896) |
Cash, cash equivalents, and restricted cash, beginning of period | 6,530 | 10,426 |
Cash, cash equivalents, and restricted cash, end of period | 4,649 | 6,530 |
Cash, cash equivalents, end of period | 4,346 | 5,724 |
Restricted cash, end of period | 303 | 806 |
Supplementary Cash Flow Information | ||
Cash paid for interest | 963 | 851 |
Cash paid for income taxes | ||
Non-cash activities: | ||
Right-of-use assets obtained in exchange for finance lease liabilities | $ 2,240 | $ 263 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2022 | |
Nature of Business [Abstract] | |
Nature of Business | No te 1 – Nature of Business eMagin Corporation (the “Company”) designs, develops, manufactures and markets Active Matrix OLED (organic light emitting diode)–on-silicon microdisplays used in military and commercial AR/VR devices and other near-eye imaging products which utilize OLED microdisplays. The Company’s products are sold mainly in North America, Asia, and Europe. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | N ote 2 – Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include the accounts of eMagin Corporation and its wholly owned subsidiary. All intercompany transactions have been eliminated in consolidation. The Company manages its operations on a consolidated, integrated basis in order to optimize its equipment and facilities and to effectively service its global customer base and concludes that it operates in a single business segment. Use of Estimates In accordance with accounting principles generally accepted in the United States of America (“GAAP”), 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, allowance for doubtful accounts, warranty reserves, inventory reserves, stock-based compensation expense, deferred tax asset valuation allowances, litigation and other loss contingencies, fair value of common stock warrant liability, and percentage-of-completion revenue recognition method among others. 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. Revenue and Cost 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. For product shipped, the Company recognizes revenue at a single point in time when control and risk of loss transfers to our customer. Our customary terms are freight on board (“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 offers a one year product warranty, for replacement of product only, and does not allow returns. The Company generally 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 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 . Costs to Obtain and Fulfill a Contract The incidental costs related to obtaining product sales contracts are non-recoverable from customer and, accordingly, are expensed as incurred. The Company capitalizes costs incurred to fulfill its R&D contracts that i) relate directly to a contract or anticipated contract ii) are expected to satisfy the Company’s performance obligation under the contract and iii) are expected to be recovered through revenue generated under the contract. Contact fulfillment costs are expensed to cost of revenue as the related performance obligations are satisfied. Government Funding The Company accounts for awards received from the U.S. government for procurement of capital equipment after analysis of the terms of the underlying award contract, and in accordance with contract and equipment purchase milestones and accounting principles for grant accounting. For awards in which the Company will hold title to the underlying equipment, the Company initially records amounts invoiced to the U.S. government for equipment progress payments on the accompanying Consolidated Balance Sheets as deferred income – government awards – long term and accounts receivable- due from government awards. The Company records said progress payments made to capital equipment vendors in Property, plant and equipment. Amounts recorded in deferred income – government awards – long term will be recognized as other income on the accompanying Consolidated Statement of Operations on a systematic basis as depreciation and other expenses are incurred over the useful life of the capital equipment. See Note 4 of the Notes of the Consolidated Financial Statements for additional details of our government funding. 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, during the years ended December 31, 2022 and 2021 (in thousands): Twelve Months Ended December 31, 2022 2021 Beginning balance $ 519 $ 615 Warranty accruals and adjustments ( 247 ) ( 82 ) Warranty claims ( 58 ) ( 14 ) Ending balance $ 214 $ 519 Research and Development Expenses Research and development costs are expensed as incurred. Cash and Cash Equivalents All highly liquid instruments with an original maturity of three months or less at the date of purchase are considered to be cash equivalents. Restricted Cash The Company accounts for cash received pursuant to U.S. government funding, that is legally restricted for procurement of capital equipment, as Restricted Cash on the accompanying Consolidated Balance Sheets. Restricted Cash amounts are received from the U.S. government in advance of progress payments required for various program related capital equipment purchases and are disbursed by the Company to related equipment vendors. Accounts Receivable The majority of the Company’s commercial accounts receivable are due from Original Equipment Manufacturers ("OEM’s”). Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are payable in U.S. dollars, are due within 30 - 60 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Any account outstanding longer than the contractual payment terms is considered past due. Allowance for Doubtful Accounts The allowance for doubtful accounts reflects an estimate of probable losses inherent in the accounts receivable balance. The allowance is determined based on a variety of factors, including the length of time receivables are past due, historical experience, the customer's current ability to pay its obligation, and the condition of the general economy and the industry as a whole. The Company will record a specific reserve for individual accounts when the Company becomes aware of a customer's inability to meet its financial obligations, deterioration in the customer's operating results or financial position, or deterioration in the customer’s credit history. If circumstances related to customers change, the Company would further adjust estimates of the recoverability of receivables. Account balances, when determined to be uncollectible, are charged against the allowance. 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 cost based input method is applied and such revenue exceeds the amount invoiced to the customer. Unbilled receivables are disclosed on the Consolidated Balance Sheet. 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 Consolidated Statements of Operations. Inventories Inventories are stated on a standard cost basis adjusted to approximate the lower of cost (as determined by the first-in, first-out method) or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the production of OLED displays. The standard cost for our products is subject to fluctuation from quarter to quarter, depending primarily on the number of displays produced, fluctuations in manufacturing overhead and labor hours incurred, and the yields experienced in the manufacturing process. Under the principles of full absorption costing, these costs are allocated to each unit of production in work in process and finished goods inventory based on actual use of production facilities. However, in applying this principle, the requirements of Accounting Standards Codification, or ASC 330-10-30-4, “Inventory” require that a company determine the range of normal capacity, or production expected to be achieved over a number of periods or seasons, and limits the amount of fixed production overheads allocated to inventory in periods of abnormally low production. In 2021, in recognition of a shift in product demand toward larger, more complex displays yielding fewer die per wafer, we concluded that measuring output based on the number of wafers produced per quarter is an appropriate measure of production volume. We believe that fully allocating the overhead to work in process and finished goods inventories, results in more accurate inventory valuation and computation of costs of goods sold, in addition to providing better information to management in making pricing decisions. Under this methodology, overhead is fully allocated to products, resulting in an increase in standard costs and inventory values. Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation on equipment is calculated using the straight-line method of depreciation over the estimated useful life ranging from three to ten years . Amortization of leasehold improvements is calculated by using the straight-line method over the shorter of their estimated useful lives or lease terms. Expenditures for maintenance and repairs are charged to expense as incurred. The Company performs impairment tests on its long-lived assets when circumstances indicate that their carrying amounts may not be recoverable. If required, recoverability is tested by comparing the estimated future undiscounted cash flows of the asset or asset group to its carrying value. Impairment losses, if any, are recognized based on the excess of the assets' carrying amounts over their estimated fair values. No impairment loss was recognized on the Company’s long-lived assets during the year ended December 31, 2022. 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. Total intangible amortization expense was approximately $ 8 thousand for the years ended December 31, 2022 and 2021, respectively. Leases The Company accounts for leases in accordance with ASC Topic 842: Leases, which we adopted on January 1, 2019. As a lessee, the Company records a right-of-use asset and a lease liability on the Consolidated Balance Sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statement of Operations. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments, and use the implicit rate when readily determinable. The Company estimates its incremental borrowing rate based on a yield curve analysis, utilizing the interest rate derived from the fair value analysis of our credit facility and adjusting it for factors that appropriately reflect the profile of secured borrowing over the expected term of the lease. Some of our leases include the option to extend or terminate the lease. The Company includes these options in the recognition of its right-of-use assets and lease liabilities when it is reasonably certain that the Company will exercise the option. Lease expense is generally recognized on a straight-line basis over the lease term. The Company enters into lease agreements for the use of office space, manufacturing facilities, and phone equipment, under both operating and finance leases. Operating leases are included in Operating lease right-of-use assets, and Operating lease liability – current and Operating lease liability – long term in our Consolidated Balance Sheet. Finance leases are included in Property, plant and equipment, net , Finance lease liability – current and Finance lease liability – long term in our Consolidated Balance Sheet. Advertising Costs related to advertising and promotion of products are charged to sales and marketing expense as incurred. There was no advertising expense for the years ended December 31, 2022 and 2021. Shipping and Handling Fees The Company includes costs related to shipping and handling in cost of goods sold. Income Taxes The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The effect on deferred tax assets and liabilities of changes in tax rates will be recognized as income or expense in the period that the change occurs. The Company recognizes the effect of income tax positions which are more-likely-than-not of being sustained. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Changes in circumstances, assumptions and clarification of uncertain tax regimes may require changes to any valuation allowances associated with the Company’s deferred tax assets. 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 . For additional details regarding our accounting for income taxes, see Note 11 in the accompanying consolidated financial statements. Earnings per Common Share Basic earnings 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, restricted stock units and convertible preferred stock. Diluted earnings 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 earnings per share. Diluted earnings per share must be calculated under both the treasury stock and two class method, and the calculation that results in the most dilutive earnings per share amount for the common stock is reported. 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. In accordance with the Preferred Stock – Series B agreements, the conversion price was adjusted to $ 0.3022 per share in December 2019, and the resultant, if converted common shares are reflected in the table of anti-dilutive common stock equivalents below. The following table sets forth the computation of basic and diluted earnings per share (in thousands, expect per share and share data) for the years ended December 31, 2022 and 2021: Twelve Months Ended December 31, 2022 2021 Net (Loss) Income $ ( 1,103 ) $ ( 5,206 ) Income allocated to participating securities — — (Loss) income allocated to common shares $ ( 1,103 ) $ ( 5,206 ) Change in fair value of warrant liability $ — $ ( 3,248 ) Loss allocated to common shares - Diluted $ ( 1,103 ) $ ( 8,454 ) Weighted average common shares outstanding - Basic 75,637,340 71,899,057 Dilutive effect of liability classified warrants — 1,280,381 Weighted average common shares outstanding - Diluted (1)(2) 75,637,340 73,179,438 Net (loss) income per share: Basic $ ( 0.01 ) $ ( 0.07 ) Diluted $ ( 0.01 ) $ ( 0.12 ) (1) For the year ended December 31, 2022, weighted average shares used for calculating basic and diluted earnings per share are the same as the inclusion of liability classified warrants, would be anti-dilutive to the earnings per share calculation. (2) For the year ended December 31, 2021, weighted average shares used for calculating diluted earnings per share includes the effect of liability classified warrants as they have a dilutive effect on earnings per share. The following table sets forth the potentially dilutive common stock equivalents for the years ended December 31, 2022 and 2021 that were not included in diluted EPS as their effect would be anti-dilutive: Twelve Months Ended December 31, 2022 2021 Restricted Stock Units 1,725,543 405,453 Options 3,048,725 3,712,868 Warrants 2,909,374 4,780,447 Convertible preferred stock 17,723,362 18,726,009 Total potentially dilutive common stock equivalents 25,407,004 27,624,777 Comprehensive Income (Loss) Comprehensive income (loss) refers to net income (loss) and other revenue, expenses, gains and losses that, under generally accepted accounting principles, are recorded as an element of shareholders’ equity but are excluded from the calculation of net income (loss). The Company's operations did not give rise to any material items includable in comprehensive income (loss), which were not already in net income (loss) for the years ended December 31, 2022 and 2021. Accordingly, the Company's comprehensive income (loss) is the same as its net income (loss) for the periods presented. 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 asset based lending facility (the “ABL Facility”) is also stated at cost, which approximates fair value because the interest rate is based on a market based rate plus a margin. The payroll protection plan, or PPP loan is presented on the balance sheet, at cost which equals fair market value due to the short term nature of the loan. We have categorized our assets and liabilities that are valued at fair value on a recurring basis into 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 discussed in Note 12 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 accompanying financial statements as of December 31, 2022, 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 Balance as of January 1, 2022 $ 1,374 Fair value of warrants issuance during period — Change in fair value of warrant liability, net ( 1,374 ) Balance as of December 31, 2022 $ — The fair value of the liability for common stock purchase warrants at December 31, 2022 was 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. Inputs to the model at December 31, 2022 included remaining contractual terms of the warrants of 0.08 years, at a risk-free interest rate of 0 %, with no expected dividends, and expected volatility of the price of the underlying common stock ranging of 0 %. Stock-based Compensation The Company uses the fair value method of accounting for share-based compensation arrangements. The fair values of stock options are 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. Derivative Financial Instruments The Company evaluates all financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features qualifying as embedded derivatives. For derivative financial instruments accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the Consolidated Statement of Operations. The Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. Concentration of Credit Risk The majority of the Company’s products are sold throughout North America, Asia, and Europe. Sales to the Company’s recurring customers are made generally on open account while sales to occasional customers are typically made on a prepaid basis. The Company performs periodic credit evaluations on its recurring customers and generally does not require collateral. An allowance for doubtful accounts is maintained for credit losses. Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and short-term investments. The Company’s cash and cash equivalents are deposited with financial institutions which, at times, may exceed federally insured limits. The Company invests surplus cash in a government money market fund that consists of U.S. government obligations and repurchase agreements collateralized by U.S. government obligations, which are not insured. To date, the Company has not experienced any loss associated with this risk. 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. The Company is experiencing price increases and changes in allocation from one of these vendors and is working to establish additional sources of supply. For the year ended December 31, 2022, one customer of 17.8 % accounted for over 10% of net revenues. As of December 31, 2022, the Company had accounts receivable balances from the one customer of 27.7 %. For year ended December 31, 2021, there was one customer of 28.7 %, who accounted for over 10% of net revenues. Accounts receivable balances from the one customer was 50.3 % . 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 contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. For the year ended December 31, 2022, the Company incurred a net loss $ 1.1 million and used cash in operating activities of $ 3.5 million. As of December 31, 2022, the Company had $ 4.3 million of cash, $ 1.0 million of outstanding indebtedness and borrowing availability of $ 1.8 million under its ABL Facility. The Company’s ABL Facility expires on December 31, 2023, and renews automatically for another year unless terminated pursuant to its terms. The ABL Facility agreement contains certain lenders remedies that give the bank the ability to impose discretionary reserves against our borrowing availability or terminate the facility upon events of default. Although our relationship with the lender is positive, there is no assurance the lender will renew or extend this facility or continue to make funds available during 2023 and beyond at present availability levels, or at all. Due to continuing losses, the Company’s financial position, and uncertainty regarding the Company’s ability to borrow under its ABL Facility, or continue to raise funds under its ATM facility, the Company may not be able to meet its financial obligations as they become due without additional financing or sources of capital. Although demand for the Company’s products has remained steady, due to lingering supply chain issues caused in part by the COVID-19 Pandemic, and also inflationary pressures the Company’s ability to obtain components and other materials or services on a timely basis has resulted in manufacturing delays, and increased costs. If these trends worsen or result in lost orders it could materially and adversely affect our business, financial condition, and results of operations. Management is prepared to reduce expenses and raise additional capital, but there can be no assurance that the Company will be successful in sufficiently reducing expenses or raising capital to meet its operating needs. The Company has taken actions to increase revenues and to reduce expenses and is considering financing alternatives. 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) continue the Work Status Reduction program that began in October 2019 for certain members of senior management pursuant to which their work status is reduced by approximately 20 %, 3) continue to utilize government grants for purchase of capital equipment and funding manufacturing personnel, 4) reduce discretionary and other expenses, 5) seek to enter new markets, 6) sell shares under it’s At the Market or ATM equity facility entered into in November 2021, and 7) consider additional financing and/or strategic alternatives. The Company is reassessing its business plans and forecasts over the next two years. Based on its known cash needs as of March 2023, and the anticipated availability of its ABL facility, the Company has developed plans to extend its liquidity to support its working capital requirements through the first quarter of 2024. However, there can be no assurance the Company’s plans will be achieved and the Company will be able to meet its financial obligations as they become due without obtaining additional financing or sources of capital. 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. Recently Adopted Accounting Pronouncements In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This standard is effective beginning after December 15, 2021. The amendments should be applied either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions. The Company adopted the guidance on January 1, 2022, on a prospective basis and such adoption did not have a material impact on the Company’s financial statements. Recently Issued and Not Yet Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) and subsequently issued amendments. The guidance affects the Company's accounts receivable, and it requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonabl |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | No te 3 – 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 R&D activities performed pursuant to written agreements and purchase orders, as well as arrangements that are implied by customary practices or law. Disaggregation of Revenue The Company sells products directly to military contractors and OEM’s and they use our displays in a diverse range of applications encompassing the military, and commercial, including medical and industrial, market sectors . Revenues are classified as either military, commercial, consumer or multiple based on management’s knowledge of the customer’s products and markets served by displays or the R&D contract work. Revenues classified as multiple are for sales to customers that incorporate the Company’s displays in products that could be used for either military or commercial applications. R&D activities are performed for both military customers and U.S. government defense related agencies and consumer companies. Product and Contract revenues are disclosed on the Consolidated Statements of Operations. Additional disaggregated revenue information for the years ended December 31, 2022 and 2021 were as follows (in thousands): Twelve Months Ended December 31, 2022 2021 North and South America $ 19,072 $ 16,148 Europe, Middle East, and Africa 10,008 8,180 Asia Pacific 1,451 1,718 Total $ 30,531 $ 26,046 Twelve Months Ended December 31, 2022 2021 Military $ 22,563 $ 17,320 Commercial, including industrial and medical 3,835 2,775 Consumer 323 1,796 Multiple 3,810 4,155 Total $ 30,531 $ 26,046 Accounts Receivable from Customers Accounts receivable, net of allowances, associated with revenue from customers were approximately $ 7.0 million and $ 4.5 million as of December 31, 2022 and 2021, 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 cost based input method is applied and such revenue exceeds the amount invoiced to the customer. Unbilled receivables are disclosed on the Consolidated Balance Sheet. 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 Consolidated Statements of Operations. Total contract assets and liabilities consisted of the following amounts (in thousands): December 31, December 31, 2022 2021 Unbilled Receivables (contract assets) $ 2,438 $ 1,102 Deferred Revenue (contract liabilities) $ 12 $ 54 During the years ended December 31, 2022 and 2021, the Company recognized $ 42 thousand and $ 0.4 million of revenue related to its contract liabilities that existed as of December 31, 2022 and 2021, respectively. 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 December 31, 2022 and 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 1.5 million and $ 0.5 million. The Company expects to recognize $ 1.5 million of revenue relating to its remaining performance obligations over the next 12 months. |
Government Funding
Government Funding | 12 Months Ended |
Dec. 31, 2022 | |
Government Funding [Abstract] | |
Government Funding | N ote 4- Government Funding On July 28, 2020, the Company announced that it had been awarded a $ 33.6 million contract over the next 33 months from the Department of Defense (“DoD”) to sustain and enhance U.S. domestic capability for high resolution, high brightness OLED microdisplays that will be based on the Company’s proprietary dPd technology. This investment is in addition to the $ 5.5 million award announced on June 11, 2020, under the Department of Defense Industrial Base Analysis (“IBAS”) Program for OLED Supply Chain Assurance and will be used to increase capacity and sustain operations at the Company’s Hopewell Junction, New York, headquarters. These funds will be used to procure key equipment and tooling, and reimburse the Company for certain labor and material costs, which the Company believes will improve all aspects of its OLED microdisplay production, including increased throughput and capacity. Pursuant to the preliminary Technology Investment Agreement the government provided when the award was announced, the Company expects that the government will own the related equipment purchases until the end of the 33 -month contract period, at which point the Company can apply to take title. The Company began making payments to related equipment vendors during the fourth quarter of 2020. For accounting purposes the Company considers that it is probable that title will pass to the Company and accordingly will treat this award in a similar fashion as the IBAS award. The Company recognizes the government awards as deferred income – government awards as program milestones are invoiced, and will recognize other income as depreciation and other expenditures are incurred over the useful life of the capital equipment. As of December 31, 2022, the Company has received $ 29.6 million for initial deposits required by capital equipment vendors. Amounts received, pending payment of deposits to vendors as of December 31, 2022, of $ 0.3 million are reflected in restricted cash on the accompanying balance sheet. Amounts due from the U.S. Department of Defense pursuant to invoices for capital equipment are presented on the balance sheet as accounts receivable – due from government awards. The total cumulative amount invoiced through the year ended December 31, 2022 of $ 29.6 million is reflected less depreciation in deferred revenue government awards – long term, and other current liabilities. Additional amounts remaining under the awards will be recorded in a similar fashion and will coincide with the progress payments required under the various capital equipment purchase terms. For the year ended December 31, 2022 and 2021, the Company recognized deferred income related to certain overhead expenses reimbursed by government funds of $ 323 thousand and $ 255 thousand. The terms of various government agreements provide among other items that the Company must achieve certain yield targets, give priority to military orders and continue to maintain the productive capacity of equipment purchased for up to five years past the completion of the programs. Amounts billed to the government under these programs are recorded as Accounts Receivable – due from government awards on the accompanying Consolidated Balance Sheets. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable, Net | No te 5 – Accounts Receivable, net Accounts receivable consisted of the following (in thousands): December 31, December 31, 2022 2021 Accounts receivable $ 7,193 $ 4,627 Less allowance for doubtful accounts ( 158 ) ( 139 ) Accounts receivable, net $ 7,035 $ 4,488 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2022 | |
Inventories, Net [Abstract] | |
Inventories, Net | Not e 6 – Inventories, net The components of inventories were as follows (in thousands): December 31, December 31, 2022 2021 Raw materials $ 3,497 $ 3,517 Work in process 3,496 2,149 Finished goods 2,103 2,363 Total inventories 9,096 8,029 Less inventory reserve ( 387 ) ( 397 ) Total inventories, net $ 8,709 $ 7,632 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | N ote 7 – Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2022 2021 Vendor prepayments $ 379 $ 471 Other prepaid expenses 215 220 Total prepaid expenses and other current assets $ 594 $ 691 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | No te 8 – Property, Plant and Equipment Property, plant and equipment improvements consist of the following (in thousands): December 31, 2022 2021 Computer hardware and software $ 1,108 $ 1,008 Lab and factory equipment 22,301 21,100 Furniture, fixtures and office equipment 60 59 Finance lease - equipment 116 116 Finance lease - manufacturing facility 15,208 12,968 Construction in progress 1,108 1,088 Construction in progress - Gov't Award 27,152 10,716 Leasehold improvements 215 151 Factory Equipment - Gov't Award 2,541 1,170 Total property, plant and equipment 69,809 48,376 Less: accumulated depreciation and amortization ( 20,710 ) ( 17,893 ) Property, plant and equipment, net $ 49,099 $ 30,483 Depreciation and amortization expense was $ 2.8 million for years ended December 31, 2022 and 2021. Amortization expense was $ 650 thousand and $ 622 thousand for assets under finance leases for the years ended December 31, 2022 and 2021. During 2020, the Company expanded its manufacturing space and signed a 10 -year renewal of the related lease agreement, with two five year options to renew. The present value of the related lease payment exceeded 90 % of the fair value of the underlying asset, classifying this as a finance lease. Formerly, the lease was classified as an operating lease and right of use asset. In July 2022, the Company took possession of additional clean room and expansion space, as provided under the lease, and recorded a liability of approximately $ 2.2 million related to additional rental payments due under the lease. |
Debt _ Line of Credit
Debt / Line of Credit | 12 Months Ended |
Dec. 31, 2022 | |
Debt / Line of Credit [Abstract] | |
Debt / Line of Credit | Not e 9 – Debt / Line of Credit December 31, December 31, (in thousands) 2022 2021 Revolving credit facility $ 1,037 $ 1,974 On December 21, 2016, the Company entered into an ABL Facility with a lender that provides for up to a maximum amount of $ 5 million based on a borrowing base equivalent of 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. As of December 31, 2022, the interest rate on outstanding borrowings was 10.5 %. The ABL Facility renewed on December 31, 2022 and will automatically renew on December 31, 2023 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 $ 0.2 million of debt issuance costs including lender and legal costs that were amortized over the original three-year term of the ABL Facility. The ABL Facility agreement contains certain lenders remedies that upon events of default, give the bank the ability to terminate the facility before the scheduled maturity date. Accordingly, the Company classifies borrowing under the ABL Facility as current liabilities on the accompanying 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 December 31, 2022, the Company had unused borrowing availability of $ 1.8 million and was in compliance with all financial debt covenants. For the years ended December 31, 2022 and 2021, interest expense incurred was approximately $ 83 thousand and $ 58 thousand on outstanding ABL Facility debt. Paycheck Protection Program On June 8, 2020, the Company received a loan under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program from KeyBank National Association related to the COVID-19 crisis in the amount of $ 1.9 million (the “PPP loan”). Under the PPP loan, the loan has a fixed interest rate of 1 % per annum, a maturity date two years from the date of the funding of the loan, and deferral of payments for six months. During 2020, the Company used the proceeds to pay qualified payroll costs, in accordance with PPP and Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, requirements. Pursuant to the terms of the PPP loan, the Company applied for forgiveness of the entire loan in the fourth quarter of 2020. In April 2021, the Company received a forgiveness notice from the SBA and received a related acknowledgment letter from its lender stating that they received payment in full from the SBA effective March 31, 2021. The amount was recorded in the Consolidated Statements of Operations as a gain on forgiveness of debt in the first quarter of 2021. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Not e 10 – Leases The Company leases office and manufacturing facilities in Hopewell Junction, New York under a non-cancelable operating lease agreement. The lease for these facilities, as amended, was to expire in May 2024 and did not contain a renewal option. The lease agreement did not contain any residual value guarantees, or material restrictive covenants. In November 2020, we entered into the 12 th amendment, which expanded the current footprint to approximately 63,000 square feet in 2021 and includes two five year options to extend. Under ASU 842, the Company reassessed the lease from operating to a finance lease for the 12 th amendment. The Company also leases an office facility for its design group in Santa Clara, California. During the fourth quarter of 2019, the Company signed a two year extension of this lease that expired in October 2021 . The lease agreement did not contain any residual value guarantees, material restrictive covenants or a renewal option. This lease was classified as an operating lease. In October 2021, the Company signed an additional two-year extension of the lease for the Santa Clara design group facility, and concluded that it remains as an operating lease. On May 2, 2019, the Company entered into a three year finance lease commitment for phone equipment. The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring lease liabilities. The Company estimates its incremental borrowing rate based on a yield curve analysis, utilizing the interest rate derived from the fair value analysis of the Company’s credit facility and adjusting it for factors that appropriately reflect the profile of secured borrowing over the expected term of the lease. The components of lease expense were as follows (in thousands): Twelve Months Ended December 31, 2022 2021 Finance Lease Cost: Amortization of right-of-use assets $ 650 $ 622 Interest on lease liabilities 887 793 Operating lease cost 65 62 Total Lease Cost $ 1,602 $ 1,477 Cash paid for amounts included in the measurement of lease liabilities: Principal payments on operating lease liabilities $ 60 $ 187 Principal payments on finance lease liabilities $ 183 $ 293 Right-of-use assets obtained in exchange for new finance lease liabilities $ 2,240 $ 263 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — December 31, 2022 December 31, 2021 Finance lease right-of-use assets $ 13,908 $ 12,318 Operating lease right-of-use assets $ 53 $ 113 Finance lease liability, current $ 1,229 $ 1,133 Finance lease liability, non-current $ 13,608 $ 11,647 Operating lease liabilities, current $ 54 $ 60 Operating lease liabilities, non-current $ - $ 54 Weighted average remaining lease terms - finance leases 20.00 years 20.58 years Weighted average remaining lease terms - operating leases . 83 years 1.83 years Weighted average discount rate - finance leases 6.94 % 6.42 % Weighted average discount rate - operating leases 6.48 % 7.75 % Future annual minimum lease payments and finance lease commitments as of December 31, 2022 were as follows (in thousands): Operating Leases Finance Leases 2023 $ 55 $ 1,229 2024 — 1,229 2025 — 1,229 2026 — 1,229 2027 — 1,269 Thereafter — 21,345 Total undiscounted future minimum lease payments 55 27,530 Less imputed interest ( 1 ) ( 12,693 ) Lease liability $ 54 $ 14,837 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | No te 11 – Income Taxes New Tax Legislation On March 27, 2020, the President of the United States signed the Coronavirus Aid Relief and Economic Security Act (“CARES Act”). The CARES Act provides several provisions that effect businesses from an income tax perspective. Due to the history of the tax losses, most of the CARES Act provisions have no current benefit to the Company. The Company can, however benefit from one provision, which allows for the immediate refund of the Alternative Minimum Tax Credit (“AMT Credit”) previously recognized as deferred tax asset. The Company has filed an amendment to claim the AMT Credit and is anticipating a refund of $ 212 thousand. This tax receivable was recorded during 2017, and is reflected in Prepaid Expenses and Other Current Assets on the Consolidated Balance Sheet. Net loss before income taxes consists of the following (in thousands): For the Years Ended December 31, 2022 2021 Domestic, current $ ( 1,103 ) $ ( 5,206 ) Total $ ( 1,103 ) $ ( 5,206 ) The tax effects of significant items comprising the Company’s deferred taxes are as follows (numbers are in thousands): For the Years Ended December 31, 2022 2021 Deferred tax assets: Federal and State Net Operating Loss Carryforwards $ 16,555 $ 22,578 Research and Development Tax Credit Carryforwards 2,341 2,237 Stock based compensation 1,946 1,665 Other provision and expenses not currently deductible 7,912 4,448 Total deferred tax assets 28,754 30,928 Deferred tax liabilities: Depreciation and amortization 427 ( 507 ) Prepaid expenses 11 ( 7 ) Total deferred liabilities 438 ( 514 ) Less: valuation allowance ( 29,192 ) ( 30,414 ) Net deferred tax asset $ — $ — The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The effect on deferred tax assets and liabilities of changes in tax rates will be recognized as income or expense in the period that the change occurs. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Changes in circumstances, assumptions and clarification of uncertain tax regimes may require changes to any valuation allowances associated with the Company’s deferred tax assets. As of December 31, 2022, the Company’s deferred tax assets were generated primarily from the federal and state net operating loss, stock based compensation, research and development tax credits and other provision and expenses not currently deductible. In assessing the realizability of deferred tax assets, management determined that it is more likely than not that none of the deferred tax assets will be realized. Therefore, the Company has provided a full valuation allowance against the deferred tax assets at December 31, 2022 and 2021. As of December 31, 2022 and 2021, the Company had net deferred tax assets before its valuation allowance of $ 29.2 million and $ 30.4 million, respectively. During the year ended December 31, 2022, the Company did not utilize its prior years’ net operating loss carryforwards and the net operating loss of $ 11.8 million that originated in 2002, expired. As of December 31, 2022, the Company had federal and state net operating loss carryforwards of $ 76.5 million and federal research and development tax credit carryforwards of $ 2.3 million. Pursuant to provisions of the 2017 Tax Cut and Jobs Act, the net operating losses originating in years subsequent to 2017 totaling $ 15.8 million can be carried forward indefinitely but limited to 80% of taxable income in the year of utilization. The federal net operating losses and tax credit carryforwards will expire as follows (in thousands): Net Research and Operating Development Losses Tax Credits 2019-2020 $ - $ - 2021-2024 - - 2025-2037 60,704 2,341 No Expiration 15,758 - $ 76,462 $ 2,341 The utilization of net operating losses can be subject to a limitation due to the change of ownership provisions under Section 382 of the Internal Revenue Code and similar state provisions. Such limitation may result in the expiration of the net operating losses before their utilization. The Company has done an analysis regarding prior year ownership changes, and it has been determined that the Section 382 limitation on the utilization of net operating losses will currently not materially affect the Company's ability to utilize its net operating losses. The difference between the statutory federal income tax rate on the Company's pre-tax loss and the Company's effective income tax rate is summarized as follows: For the Years Ended December 31, 2022 2021 U.S. Federal income tax benefit at federal statutory rate 21 % 21 % Change in valuation allowance 111 67 Permanent differences 26 21 NOL Expiration - 1998 ( 267 ) ( 115 ) Other, net 109 6 Effective tax rate - % - % The Company did no t have unrecognized tax benefits at December 31, 2022 and 2021. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2022 and 2021, the Company recognized no interest and penalties. The Company files income tax returns in the U.S. federal jurisdiction and in certain U.S. states. Generally, the Company’s tax filings are subject to tax examinations by major taxing jurisdictions during the three years period subsequent to the due date of such returns, or if later, when the return is filed. However, due to the Company's operating losses, the utilization of a net operating loss subjects the year that such loss originated to being open for examination by major taxing jurisdictions to which the Company is subject. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2022 | |
Warrants [Abstract] | |
Warrants | Not e 12 – 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. The following table sets forth the Company’s outstanding common stock warrants as of December 31, 2022: Issued Outstanding Exercise Price Expiration 2018 Warrant Issuance (1) 4,004,329 2,909,374 1.55 Jan 2023 2019 Warrant Issuance (2) 6,000,000 3,000,000 0.78 Oct 2024 5,909,374 (1) Warrants are subject to liability accounting (2) Private Placement unregistered warrants exercisable six months following issuance. Equity classified warrants The 2019 warrants 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. The 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 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 Consolidated Balance Sheet. Liability classified warrants The 2018 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 in the accompanying 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. Based on the Black Scholes method the fair value of the Company’s warrants are as follows (in thousands): December 31, December 31, 2022 2021 2018 January and February Issuance Fair Value $ — $ 1,355 2017 May Issuance (1) Fair Value — 19 $ — $ 1,374 (1) Warrants from the 2017 May Issuance expired on May 24, 2022. Twelve Months Ended December 31, 2022 2021 Change in Fair Value of common stock warrant liability (1) 1,374 3,248 (1) The combined changes in fair value is reflected as income from change in the fair market value of common stock warrant liability. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 13 – Shareholders’ Equity Preferred Stock - Series B Convertible Preferred Stock (“the Preferred Stock – Series B”) The Company has designated 10,000 shares of the Company’s preferred stock as Preferred Stock – Series B at a stated value of $ 1,000 per share. The Preferred Stock – Series B was initially convertible into common stock at a conversion price of $ 0.75 per share, subject to adjustment if the Company conducts an equity offering priced below that amount. Pursuant to this provision, the conversion price was reduced to $ 0.3022 per share in December 2019. At the current conversion price, the Series B Preferred Stock is convertible into 17,723,362 shares of the Company common stock and votes on an as converted basis with the common stock. The holders of the Preferred Stock – Series B are not entitled to receive dividends unless the Company’s Board of Directors declare a dividend for holders of the Company’s common stock and then the dividend shall be equal to the amount that such holder would have been entitled to receive if the holder converted its Preferred Stock – Series B into shares of the Company’s common stock. In the event of a liquidation, dissolution, or winding up of the Company, the Preferred Stock – Series B is entitled to receive liquidation preference before the Common Stock. The Company may at its option redeem the Preferred Stock – Series B by providing the required notice to the holders of the Preferred Stock – Series B and paying an amount equal to $ 1,000 multiplied by the number of shares for all of such holder’s shares of outstanding Preferred Stock – Series B to be redeemed. As of December 31, 2022 and 2021, there were 5,356 shares and 5,659 shares of Preferred Stock – Series B issued and outstanding. Common Stock Common shares issued due to option and warrant exercises, vesting of restricted stock units, public offering of common shares, and conversion of preferred stock (dollar amounts in thousands): Twelve Months Ended December 31 2022 2021 Shares issued due to Options exercised - 446,551 Proceeds $ - $ 725 Shares issued due to Warrants exercised - 3,343,660 Proceeds $ - $ 5,652 Shares issued due to Restricted Stock Unit Vesting 145,126 16,667 Proceeds $ - $ - Pursuant to ATM Financing 7,162,253 233,793 Proceeds $ 5,767 $ 183 Pursuant to conversion of preferred stock 1,002,647 - Proceeds $ - $ - Equity Issuances On June 10, 2020, the Company filed a prospectus supplement to update and amend the aggregate amount of shares it may sell pursuant to the At Market Offering Agreement, dated November 22, 2019, as amended from time to time, between the Company and H.C. Wainwright & Co., LLC. On November 18, 2021 the Company entered into an ATM offering agreement with H.C. Wainwright & Co., LLC, or Wainwright, relating to sales of shares of its common stock under a new ATM facility. On November 18, 2021 the Company also filed a prospectus supplement to allow the sale of shares of its common stock having an aggregate offering price of up to $ 10.0 million under the new ATM facility. During the year ended December 31, 2022 and 2021, the Company raised $ 5.8 million and $ 0.2 million, net of offering expenses, through the sale of shares under the new ATM facility. |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Stock Compensation [Abstract] | |
Stock Compensation | Not e 14 – Stock Compensation Incentive compensation plans The 2019 Non-Employee Director Stock Option and Incentive Plan (the “2019 Director Plan”) adopted and approved by the shareholders on December 5, 2019 was designed to enhance the flexibility to grant equity awards to Directors and to ensure grant of equity awards to eligible recipients. The 2019 Plan has an aggregate of 2.0 million shares and permits an award of stock options (both incentive and non-qualified options), stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, dividend equivalent rights and cash-based awards. A minimum vesting period of one year is required for all equity awards. The 2019 Employee and Consultant Stock Option and Incentive Plan (the “2019 Employee and Consultant Plan”) adopted and approved by the shareholders on December 5, 2019 was designed to enhance the flexibility to grant equity awards to officers, employees and consultants and to ensure grant of equity awards to eligible recipients. The 2019 Plan has an aggregate of 5.0 million shares and permits an award of stock options (both incentive and non-qualified options), stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, dividend equivalent rights and cash-based awards. A minimum vesting period of one year is required for all equity awards. Stock Option Summary A summary of the Company’s stock option activity for the year ended December 31, 2022 is presented in the following table: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2021 3,712,868 $ 1.81 Options granted 270,000 0.73 Options exercised — — Options forfeited ( 5,000 ) 0.40 Options cancelled or expired ( 517,985 ) 3.33 Outstanding at December 31, 2022 3,459,883 $ 1.50 3.33 $ 341,162 Vested or expected to vest at December 31, 2022 (1) 3,458,677 $ 1.50 3.33 $ 341,018 Exercisable at December 31, 2022 3,324,882 $ 1.53 3.08 $ 324,962 (1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. At December 31, 2022, there were 2,967,099 shares available for grant under the 2019 Employee and Consultant Plan and 1,370,000 shares available under the 2019 Non - Employee Director Incentive Plans. There are no shares available for grant under older plans. 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 on December 31, 2022 for the options that were in-the-money. As of December 31, 2022 there were 1,224,638 options that were in-the-money. The Company’s closing stock price was $ 0.85 as of December 31, 2022. The Company issues new shares of common stock upon exercise of stock options. There aggregate intrinsic value of options exercised was $ - for the year ended December 31, 2022. The following key assumptions were used in the Black-Scholes option pricing model to determine the fair value of stock options granted: Twelve Months Ended December 31, 2022 2021 Dividend yield 0 % 0 % Risk free interest rates 3.24 - 3.25 % 0.89 - 0.95 % Expected volatility 79.3 to 83.0 % 75.9 to 79.0 % Expected term (in years) 5.0 to 5.5 5.0 to 5.5 The weighted average fair value per share for options granted in 2022 and 2021 was $ 0.49 and $ 2.21 , respectively. There were no dividends declared or paid in 2022 or 2021. 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 an 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 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. Restricted Stock Units (“RSU”) Summary A summary of the Company’s stock option activity for the year ended December 31, 2022 is presented in the following table: Weighted Average Grant Date Number of Awards Fair Value Per Share Service Performance Service Performance based based based based RSU's outstanding at December 31, 2021 405,453 103,047 $ 3.52 $ 3.60 Granted 1,234,424 414,905 0.83 0.82 Vested and settled ( 117,332 ) — 3.51 — Forfeited ( 99,866 ) ( 81,078 ) 2.42 2.14 RSU's outstanding at December 31, 2022 1,422,679 436,874 $ 1.26 $ 1.23 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 fair value of Restricted Stock Units, or RSUs, is established by the market price of the Company’s common stock at the date of grant and for time based grants, is amortized over the vesting period using the straight line method. Performance-based RSUs are typically granted such that they vest upon the achievement of EBITDA targets, during a specified performance period, subject to the satisfaction of certain time-based service criteria. Compensation expense from these awards is equal to the fair market value of the Company’s ordinary shares on the date of grant and is recognized over the remaining service period based on the probable outcome of achievement of the financial metrics used in the specific grant’s performance criteria. Management’s estimate of the number of shares expected to vest is based on the anticipated achievement of the specified non-market performance criteria, which are assessed at each reporting period. The following table summarizes the allocation of non-cash stock-based compensation to the Company’s expense categories for the years ended December 31, 2022 and 2021 (in thousands): Twelve Months Ended December 31, 2022 2021 Cost of revenues $ 123 $ 62 Research and development 389 138 Selling, general and administrative 375 450 Total stock compensation expense $ 887 $ 650 The following table summarizes the Company’s stock-based compensation expense by each award type: Twelve Months Ended December 31, 2022 2021 Stock options $ 223 $ 369 Restricted Share Units 664 281 Total stock compensation expense $ 887 $ 650 At December 31, 2022, total unrecognized compensation costs related to stock options and RSUs was approximately $ 29 thousand and $ 1.6 million , net of estimated forfeitures. Total unrecognized compensation cost for stock options and RSUs will be adjusted for future changes in estimated forfeitures and is expected to be recognized over a weighted average period of approximately 0.4 years and approximately 2.1 years, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | No te 15 – Commitments and Contingencies Equipment Purchase Commitments The Company has committed to equipment purchases of approximately $ 0.6 million at December 31, 2022 . In addition, through December 31, 2022, the Company has committed to equipment to be purchased under government awards of $ 8.1 million. Employee benefit plans The Company’s U.S. employees participate in a defined contribution plan. Under the provisions of the plan, an employee is fully vested with respect to Company contributions after five years of service. The Company matches employee contributions of 50 % up to a maximum of 3 % of qualified compensation. The Company’s contributions were $ 0.1 million for the years ended December 31, 2022 and 2021, respectively. Change in Control agreements The Company entered into change in control agreements with certain of its executive officers, non-executive officers and managers. The agreements specify various employment-related matters, including annual compensation, performance incentive bonuses, and severance benefits in the event of termination with or without cause. Litigation From time to time, the Company may become subject to various legal proceedings that are incidental to the ordinary conduct of our 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, the Company held preliminary discussions with Suga to attempt to reach a settlement, however in November 2019 a formal request for arbitration was received, which Suga filed with the International Chamber of Commerce or ICC. The Company retained local counsel in Hong Kong to represent it before the ICC and in December 2019 filed an answer to Suga’s request for arbitration including a counterclaim seeking repayment of amounts previously paid to Suga. An arbitrator was appointed and arbitral proceedings for the consideration of the claims and counterclaims, and settlement discussions continued through May 2021. The parties were permitted to settle at any point during the arbitration proceedings and the parties reached a tentative settlement in April 2021. On May 12, 2021 the parties executed settlement agreements and mutual releases from all claims in exchange for a payment of $ 0.6 million to Suga from the Company. As disclosed in the financial statements in our Annual Report on Form 10-K for the year ended December 31, 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. As a result of the May 12, 2021 settlement of the arbitration with Suga the Company removed the $ 1.0 million accrual from its balance sheet, wrote off $ 0.3 million in prepayments and recorded a gain of $ 0.1 million in Other Income / Expense during the second quarter of 2021. |
Significant Accounting Polici_2
Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of eMagin Corporation and its wholly owned subsidiary. All intercompany transactions have been eliminated in consolidation. The Company manages its operations on a consolidated, integrated basis in order to optimize its equipment and facilities and to effectively service its global customer base and concludes that it operates in a single business segment. |
Use of Estimates | Use of Estimates In accordance with accounting principles generally accepted in the United States of America (“GAAP”), 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, allowance for doubtful accounts, warranty reserves, inventory reserves, stock-based compensation expense, deferred tax asset valuation allowances, litigation and other loss contingencies, fair value of common stock warrant liability, and percentage-of-completion revenue recognition method among others. 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. |
Revenue and Cost Recognition | Revenue and Cost 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. For product shipped, the Company recognizes revenue at a single point in time when control and risk of loss transfers to our customer. Our customary terms are freight on board (“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 offers a one year product warranty, for replacement of product only, and does not allow returns. The Company generally 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 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 . |
Costs to Obtain and Fulfill a Contract | Costs to Obtain and Fulfill a Contract The incidental costs related to obtaining product sales contracts are non-recoverable from customer and, accordingly, are expensed as incurred. The Company capitalizes costs incurred to fulfill its R&D contracts that i) relate directly to a contract or anticipated contract ii) are expected to satisfy the Company’s performance obligation under the contract and iii) are expected to be recovered through revenue generated under the contract. Contact fulfillment costs are expensed to cost of revenue as the related performance obligations are satisfied. |
Government Funding | Government Funding The Company accounts for awards received from the U.S. government for procurement of capital equipment after analysis of the terms of the underlying award contract, and in accordance with contract and equipment purchase milestones and accounting principles for grant accounting. For awards in which the Company will hold title to the underlying equipment, the Company initially records amounts invoiced to the U.S. government for equipment progress payments on the accompanying Consolidated Balance Sheets as deferred income – government awards – long term and accounts receivable- due from government awards. The Company records said progress payments made to capital equipment vendors in Property, plant and equipment. Amounts recorded in deferred income – government awards – long term will be recognized as other income on the accompanying Consolidated Statement of Operations on a systematic basis as depreciation and other expenses are incurred over the useful life of the capital equipment. See Note 4 of the Notes of the Consolidated Financial Statements for additional details of our government funding. |
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, during the years ended December 31, 2022 and 2021 (in thousands): Twelve Months Ended December 31, 2022 2021 Beginning balance $ 519 $ 615 Warranty accruals and adjustments ( 247 ) ( 82 ) Warranty claims ( 58 ) ( 14 ) Ending balance $ 214 $ 519 |
Research and Development Expenses | Research and Development Expenses Research and development costs are expensed as incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid instruments with an original maturity of three months or less at the date of purchase are considered to be cash equivalents. |
Restricted Cash | Restricted Cash The Company accounts for cash received pursuant to U.S. government funding, that is legally restricted for procurement of capital equipment, as Restricted Cash on the accompanying Consolidated Balance Sheets. Restricted Cash amounts are received from the U.S. government in advance of progress payments required for various program related capital equipment purchases and are disbursed by the Company to related equipment vendors. |
Accounts Receivable | Accounts Receivable The majority of the Company’s commercial accounts receivable are due from Original Equipment Manufacturers ("OEM’s”). Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are payable in U.S. dollars, are due within 30 - 60 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Any account outstanding longer than the contractual payment terms is considered past due. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The allowance for doubtful accounts reflects an estimate of probable losses inherent in the accounts receivable balance. The allowance is determined based on a variety of factors, including the length of time receivables are past due, historical experience, the customer's current ability to pay its obligation, and the condition of the general economy and the industry as a whole. The Company will record a specific reserve for individual accounts when the Company becomes aware of a customer's inability to meet its financial obligations, deterioration in the customer's operating results or financial position, or deterioration in the customer’s credit history. If circumstances related to customers change, the Company would further adjust estimates of the recoverability of receivables. Account balances, when determined to be uncollectible, are charged against the allowance. |
Contract Assets and Liabilities | 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 cost based input method is applied and such revenue exceeds the amount invoiced to the customer. Unbilled receivables are disclosed on the Consolidated Balance Sheet. 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 Consolidated Statements of Operations. |
Inventories | Inventories Inventories are stated on a standard cost basis adjusted to approximate the lower of cost (as determined by the first-in, first-out method) or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the production of OLED displays. The standard cost for our products is subject to fluctuation from quarter to quarter, depending primarily on the number of displays produced, fluctuations in manufacturing overhead and labor hours incurred, and the yields experienced in the manufacturing process. Under the principles of full absorption costing, these costs are allocated to each unit of production in work in process and finished goods inventory based on actual use of production facilities. However, in applying this principle, the requirements of Accounting Standards Codification, or ASC 330-10-30-4, “Inventory” require that a company determine the range of normal capacity, or production expected to be achieved over a number of periods or seasons, and limits the amount of fixed production overheads allocated to inventory in periods of abnormally low production. In 2021, in recognition of a shift in product demand toward larger, more complex displays yielding fewer die per wafer, we concluded that measuring output based on the number of wafers produced per quarter is an appropriate measure of production volume. We believe that fully allocating the overhead to work in process and finished goods inventories, results in more accurate inventory valuation and computation of costs of goods sold, in addition to providing better information to management in making pricing decisions. Under this methodology, overhead is fully allocated to products, resulting in an increase in standard costs and inventory values. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation on equipment is calculated using the straight-line method of depreciation over the estimated useful life ranging from three to ten years . Amortization of leasehold improvements is calculated by using the straight-line method over the shorter of their estimated useful lives or lease terms. Expenditures for maintenance and repairs are charged to expense as incurred. The Company performs impairment tests on its long-lived assets when circumstances indicate that their carrying amounts may not be recoverable. If required, recoverability is tested by comparing the estimated future undiscounted cash flows of the asset or asset group to its carrying value. Impairment losses, if any, are recognized based on the excess of the assets' carrying amounts over their estimated fair values. No impairment loss was recognized on the Company’s long-lived assets during the year ended December 31, 2022. |
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. Total intangible amortization expense was approximately $ 8 thousand for the years ended December 31, 2022 and 2021, respectively. |
Leases | Leases The Company accounts for leases in accordance with ASC Topic 842: Leases, which we adopted on January 1, 2019. As a lessee, the Company records a right-of-use asset and a lease liability on the Consolidated Balance Sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statement of Operations. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments, and use the implicit rate when readily determinable. The Company estimates its incremental borrowing rate based on a yield curve analysis, utilizing the interest rate derived from the fair value analysis of our credit facility and adjusting it for factors that appropriately reflect the profile of secured borrowing over the expected term of the lease. Some of our leases include the option to extend or terminate the lease. The Company includes these options in the recognition of its right-of-use assets and lease liabilities when it is reasonably certain that the Company will exercise the option. Lease expense is generally recognized on a straight-line basis over the lease term. The Company enters into lease agreements for the use of office space, manufacturing facilities, and phone equipment, under both operating and finance leases. Operating leases are included in Operating lease right-of-use assets, and Operating lease liability – current and Operating lease liability – long term in our Consolidated Balance Sheet. Finance leases are included in Property, plant and equipment, net , Finance lease liability – current and Finance lease liability – long term in our Consolidated Balance Sheet. |
Advertising | Advertising Costs related to advertising and promotion of products are charged to sales and marketing expense as incurred. There was no advertising expense for the years ended December 31, 2022 and 2021. |
Shipping and Handling Fees | Shipping and Handling Fees The Company includes costs related to shipping and handling in cost of goods sold. |
Income Taxes | Income Taxes The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The effect on deferred tax assets and liabilities of changes in tax rates will be recognized as income or expense in the period that the change occurs. The Company recognizes the effect of income tax positions which are more-likely-than-not of being sustained. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Changes in circumstances, assumptions and clarification of uncertain tax regimes may require changes to any valuation allowances associated with the Company’s deferred tax assets. 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 . For additional details regarding our accounting for income taxes, see Note 11 in the accompanying consolidated financial statements. |
Earnings per Common Share | Earnings per Common Share Basic earnings 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, restricted stock units and convertible preferred stock. Diluted earnings 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 earnings per share. Diluted earnings per share must be calculated under both the treasury stock and two class method, and the calculation that results in the most dilutive earnings per share amount for the common stock is reported. 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. In accordance with the Preferred Stock – Series B agreements, the conversion price was adjusted to $ 0.3022 per share in December 2019, and the resultant, if converted common shares are reflected in the table of anti-dilutive common stock equivalents below. The following table sets forth the computation of basic and diluted earnings per share (in thousands, expect per share and share data) for the years ended December 31, 2022 and 2021: Twelve Months Ended December 31, 2022 2021 Net (Loss) Income $ ( 1,103 ) $ ( 5,206 ) Income allocated to participating securities — — (Loss) income allocated to common shares $ ( 1,103 ) $ ( 5,206 ) Change in fair value of warrant liability $ — $ ( 3,248 ) Loss allocated to common shares - Diluted $ ( 1,103 ) $ ( 8,454 ) Weighted average common shares outstanding - Basic 75,637,340 71,899,057 Dilutive effect of liability classified warrants — 1,280,381 Weighted average common shares outstanding - Diluted (1)(2) 75,637,340 73,179,438 Net (loss) income per share: Basic $ ( 0.01 ) $ ( 0.07 ) Diluted $ ( 0.01 ) $ ( 0.12 ) (1) For the year ended December 31, 2022, weighted average shares used for calculating basic and diluted earnings per share are the same as the inclusion of liability classified warrants, would be anti-dilutive to the earnings per share calculation. (2) For the year ended December 31, 2021, weighted average shares used for calculating diluted earnings per share includes the effect of liability classified warrants as they have a dilutive effect on earnings per share. The following table sets forth the potentially dilutive common stock equivalents for the years ended December 31, 2022 and 2021 that were not included in diluted EPS as their effect would be anti-dilutive: Twelve Months Ended December 31, 2022 2021 Restricted Stock Units 1,725,543 405,453 Options 3,048,725 3,712,868 Warrants 2,909,374 4,780,447 Convertible preferred stock 17,723,362 18,726,009 Total potentially dilutive common stock equivalents 25,407,004 27,624,777 |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) refers to net income (loss) and other revenue, expenses, gains and losses that, under generally accepted accounting principles, are recorded as an element of shareholders’ equity but are excluded from the calculation of net income (loss). The Company's operations did not give rise to any material items includable in comprehensive income (loss), which were not already in net income (loss) for the years ended December 31, 2022 and 2021. Accordingly, the Company's comprehensive income (loss) is the same as its net income (loss) for the periods presented. |
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 asset based lending facility (the “ABL Facility”) is also stated at cost, which approximates fair value because the interest rate is based on a market based rate plus a margin. The payroll protection plan, or PPP loan is presented on the balance sheet, at cost which equals fair market value due to the short term nature of the loan. We have categorized our assets and liabilities that are valued at fair value on a recurring basis into 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 discussed in Note 12 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 accompanying financial statements as of December 31, 2022, 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 Balance as of January 1, 2022 $ 1,374 Fair value of warrants issuance during period — Change in fair value of warrant liability, net ( 1,374 ) Balance as of December 31, 2022 $ — The fair value of the liability for common stock purchase warrants at December 31, 2022 was 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. Inputs to the model at December 31, 2022 included remaining contractual terms of the warrants of 0.08 years, at a risk-free interest rate of 0 %, with no expected dividends, and expected volatility of the price of the underlying common stock ranging of 0 %. |
Stock-Based Compensation | Stock-based Compensation The Company uses the fair value method of accounting for share-based compensation arrangements. The fair values of stock options are 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. |
Derivative Financial Instruments | Derivative Financial Instruments The Company evaluates all financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features qualifying as embedded derivatives. For derivative financial instruments accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the Consolidated Statement of Operations. The Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. |
Concentration of Credit Risk and Concentrations | Concentration of Credit Risk The majority of the Company’s products are sold throughout North America, Asia, and Europe. Sales to the Company’s recurring customers are made generally on open account while sales to occasional customers are typically made on a prepaid basis. The Company performs periodic credit evaluations on its recurring customers and generally does not require collateral. An allowance for doubtful accounts is maintained for credit losses. Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and short-term investments. The Company’s cash and cash equivalents are deposited with financial institutions which, at times, may exceed federally insured limits. The Company invests surplus cash in a government money market fund that consists of U.S. government obligations and repurchase agreements collateralized by U.S. government obligations, which are not insured. To date, the Company has not experienced any loss associated with this risk. 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. The Company is experiencing price increases and changes in allocation from one of these vendors and is working to establish additional sources of supply. For the year ended December 31, 2022, one customer of 17.8 % accounted for over 10% of net revenues. As of December 31, 2022, the Company had accounts receivable balances from the one customer of 27.7 %. For year ended December 31, 2021, there was one customer of 28.7 %, who accounted for over 10% of net revenues. Accounts receivable balances from the one customer was 50.3 % . |
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 contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. For the year ended December 31, 2022, the Company incurred a net loss $ 1.1 million and used cash in operating activities of $ 3.5 million. As of December 31, 2022, the Company had $ 4.3 million of cash, $ 1.0 million of outstanding indebtedness and borrowing availability of $ 1.8 million under its ABL Facility. The Company’s ABL Facility expires on December 31, 2023, and renews automatically for another year unless terminated pursuant to its terms. The ABL Facility agreement contains certain lenders remedies that give the bank the ability to impose discretionary reserves against our borrowing availability or terminate the facility upon events of default. Although our relationship with the lender is positive, there is no assurance the lender will renew or extend this facility or continue to make funds available during 2023 and beyond at present availability levels, or at all. Due to continuing losses, the Company’s financial position, and uncertainty regarding the Company’s ability to borrow under its ABL Facility, or continue to raise funds under its ATM facility, the Company may not be able to meet its financial obligations as they become due without additional financing or sources of capital. Although demand for the Company’s products has remained steady, due to lingering supply chain issues caused in part by the COVID-19 Pandemic, and also inflationary pressures the Company’s ability to obtain components and other materials or services on a timely basis has resulted in manufacturing delays, and increased costs. If these trends worsen or result in lost orders it could materially and adversely affect our business, financial condition, and results of operations. Management is prepared to reduce expenses and raise additional capital, but there can be no assurance that the Company will be successful in sufficiently reducing expenses or raising capital to meet its operating needs. The Company has taken actions to increase revenues and to reduce expenses and is considering financing alternatives. 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) continue the Work Status Reduction program that began in October 2019 for certain members of senior management pursuant to which their work status is reduced by approximately 20 %, 3) continue to utilize government grants for purchase of capital equipment and funding manufacturing personnel, 4) reduce discretionary and other expenses, 5) seek to enter new markets, 6) sell shares under it’s At the Market or ATM equity facility entered into in November 2021, and 7) consider additional financing and/or strategic alternatives. The Company is reassessing its business plans and forecasts over the next two years. Based on its known cash needs as of March 2023, and the anticipated availability of its ABL facility, the Company has developed plans to extend its liquidity to support its working capital requirements through the first quarter of 2024. However, there can be no assurance the Company’s plans will be achieved and the Company will be able to meet its financial obligations as they become due without obtaining additional financing or sources of capital. 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. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This standard is effective beginning after December 15, 2021. The amendments should be applied either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions. The Company adopted the guidance on January 1, 2022, on a prospective basis and such adoption did not have a material impact on the Company’s financial statements. Recently Issued and Not Yet Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) and subsequently issued amendments. The guidance affects the Company's accounts receivable, and it requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectability. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Based on the composition of the Company's receivables, current market conditions and historical credit loss activity, the Company does not expect this ASU to have a material impact on the consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. This guidance changes how entities account for convertible instruments and contracts in an entity's own equity and simplifies the accounting for convertible instruments by removing certain separation models for convertible instruments. This guidance also modifies the guidance on diluted earnings per share calculations. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
Summary of Activity Related to Warranty Liability Included in Other Current Liabilities | Twelve Months Ended December 31, 2022 2021 Beginning balance $ 519 $ 615 Warranty accruals and adjustments ( 247 ) ( 82 ) Warranty claims ( 58 ) ( 14 ) Ending balance $ 214 $ 519 |
Schedule of Earnings Per Share, Basic and Diluted | Twelve Months Ended December 31, 2022 2021 Net (Loss) Income $ ( 1,103 ) $ ( 5,206 ) Income allocated to participating securities — — (Loss) income allocated to common shares $ ( 1,103 ) $ ( 5,206 ) Change in fair value of warrant liability $ — $ ( 3,248 ) Loss allocated to common shares - Diluted $ ( 1,103 ) $ ( 8,454 ) Weighted average common shares outstanding - Basic 75,637,340 71,899,057 Dilutive effect of liability classified warrants — 1,280,381 Weighted average common shares outstanding - Diluted (1)(2) 75,637,340 73,179,438 Net (loss) income per share: Basic $ ( 0.01 ) $ ( 0.07 ) Diluted $ ( 0.01 ) $ ( 0.12 ) (1) For the year ended December 31, 2022, weighted average shares used for calculating basic and diluted earnings per share are the same as the inclusion of liability classified warrants, would be anti-dilutive to the earnings per share calculation. (2) For the year ended December 31, 2021, weighted average shares used for calculating diluted earnings per share includes the effect of liability classified warrants as they have a dilutive effect on earnings per share. |
Schedule of Potentially Dilutive Common Stock Equivalents | Twelve Months Ended December 31, 2022 2021 Restricted Stock Units 1,725,543 405,453 Options 3,048,725 3,712,868 Warrants 2,909,374 4,780,447 Convertible preferred stock 17,723,362 18,726,009 Total potentially dilutive common stock equivalents 25,407,004 27,624,777 |
Reconciliation of the Level 3 Warrant Liability Measured and Recorded at Fair Value on a Recurring Basis | Estimated Fair Value Balance as of January 1, 2022 $ 1,374 Fair value of warrants issuance during period — Change in fair value of warrant liability, net ( 1,374 ) Balance as of December 31, 2022 $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue Recognition [Abstract] | |
Schedule of Disaggregated Revenue | Twelve Months Ended December 31, 2022 2021 North and South America $ 19,072 $ 16,148 Europe, Middle East, and Africa 10,008 8,180 Asia Pacific 1,451 1,718 Total $ 30,531 $ 26,046 Twelve Months Ended December 31, 2022 2021 Military $ 22,563 $ 17,320 Commercial, including industrial and medical 3,835 2,775 Consumer 323 1,796 Multiple 3,810 4,155 Total $ 30,531 $ 26,046 |
Schedule of Contract Assets and Liabilities | December 31, December 31, 2022 2021 Unbilled Receivables (contract assets) $ 2,438 $ 1,102 Deferred Revenue (contract liabilities) $ 12 $ 54 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable | December 31, December 31, 2022 2021 Accounts receivable $ 7,193 $ 4,627 Less allowance for doubtful accounts ( 158 ) ( 139 ) Accounts receivable, net $ 7,035 $ 4,488 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories, Net [Abstract] | |
Schedule of Components of Inventories | December 31, December 31, 2022 2021 Raw materials $ 3,497 $ 3,517 Work in process 3,496 2,149 Finished goods 2,103 2,363 Total inventories 9,096 8,029 Less inventory reserve ( 387 ) ( 397 ) Total inventories, net $ 8,709 $ 7,632 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | December 31, 2022 2021 Vendor prepayments $ 379 $ 471 Other prepaid expenses 215 220 Total prepaid expenses and other current assets $ 594 $ 691 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment Improvements | December 31, 2022 2021 Computer hardware and software $ 1,108 $ 1,008 Lab and factory equipment 22,301 21,100 Furniture, fixtures and office equipment 60 59 Finance lease - equipment 116 116 Finance lease - manufacturing facility 15,208 12,968 Construction in progress 1,108 1,088 Construction in progress - Gov't Award 27,152 10,716 Leasehold improvements 215 151 Factory Equipment - Gov't Award 2,541 1,170 Total property, plant and equipment 69,809 48,376 Less: accumulated depreciation and amortization ( 20,710 ) ( 17,893 ) Property, plant and equipment, net $ 49,099 $ 30,483 |
Debt _ Line of Credit (Tables)
Debt / Line of Credit (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt / Line of Credit [Abstract] | |
Schedule of Line of Credit | December 31, December 31, (in thousands) 2022 2021 Revolving credit facility $ 1,037 $ 1,974 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | Twelve Months Ended December 31, 2022 2021 Finance Lease Cost: Amortization of right-of-use assets $ 650 $ 622 Interest on lease liabilities 887 793 Operating lease cost 65 62 Total Lease Cost $ 1,602 $ 1,477 |
Schedule of Other Information | Cash paid for amounts included in the measurement of lease liabilities: Principal payments on operating lease liabilities $ 60 $ 187 Principal payments on finance lease liabilities $ 183 $ 293 Right-of-use assets obtained in exchange for new finance lease liabilities $ 2,240 $ 263 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — December 31, 2022 December 31, 2021 Finance lease right-of-use assets $ 13,908 $ 12,318 Operating lease right-of-use assets $ 53 $ 113 Finance lease liability, current $ 1,229 $ 1,133 Finance lease liability, non-current $ 13,608 $ 11,647 Operating lease liabilities, current $ 54 $ 60 Operating lease liabilities, non-current $ - $ 54 Weighted average remaining lease terms - finance leases 20.00 years 20.58 years Weighted average remaining lease terms - operating leases . 83 years 1.83 years Weighted average discount rate - finance leases 6.94 % 6.42 % Weighted average discount rate - operating leases 6.48 % 7.75 % |
Future Annual Minimum Lease Payments and Finance Lease Commitments | Operating Leases Finance Leases 2023 $ 55 $ 1,229 2024 — 1,229 2025 — 1,229 2026 — 1,229 2027 — 1,269 Thereafter — 21,345 Total undiscounted future minimum lease payments 55 27,530 Less imputed interest ( 1 ) ( 12,693 ) Lease liability $ 54 $ 14,837 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Schedule of Net Loss Before Income Taxes | For the Years Ended December 31, 2022 2021 Domestic, current $ ( 1,103 ) $ ( 5,206 ) Total $ ( 1,103 ) $ ( 5,206 ) |
Schedule of Deferred Taxes | For the Years Ended December 31, 2022 2021 Deferred tax assets: Federal and State Net Operating Loss Carryforwards $ 16,555 $ 22,578 Research and Development Tax Credit Carryforwards 2,341 2,237 Stock based compensation 1,946 1,665 Other provision and expenses not currently deductible 7,912 4,448 Total deferred tax assets 28,754 30,928 Deferred tax liabilities: Depreciation and amortization 427 ( 507 ) Prepaid expenses 11 ( 7 ) Total deferred liabilities 438 ( 514 ) Less: valuation allowance ( 29,192 ) ( 30,414 ) Net deferred tax asset $ — $ — |
Schedule of Federal Net Operating Losses and Tax Credit Carryforwards | Net Research and Operating Development Losses Tax Credits 2019-2020 $ - $ - 2021-2024 - - 2025-2037 60,704 2,341 No Expiration 15,758 - $ 76,462 $ 2,341 |
Schedule of Reconciliation of Effective Tax Rate | For the Years Ended December 31, 2022 2021 U.S. Federal income tax benefit at federal statutory rate 21 % 21 % Change in valuation allowance 111 67 Permanent differences 26 21 NOL Expiration - 1998 ( 267 ) ( 115 ) Other, net 109 6 Effective tax rate - % - % |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Warrants [Abstract] | |
Summary of Warrants Issued and Warrants Outstanding | Issued Outstanding Exercise Price Expiration 2018 Warrant Issuance (1) 4,004,329 2,909,374 1.55 Jan 2023 2019 Warrant Issuance (2) 6,000,000 3,000,000 0.78 Oct 2024 5,909,374 (1) Warrants are subject to liability accounting (2) Private Placement unregistered warrants exercisable six months following issuance. |
Fair Value of Warrants | December 31, December 31, 2022 2021 2018 January and February Issuance Fair Value $ — $ 1,355 2017 May Issuance (1) Fair Value — 19 $ — $ 1,374 (1) Warrants from the 2017 May Issuance expired on May 24, 2022. Twelve Months Ended December 31, 2022 2021 Change in Fair Value of common stock warrant liability (1) 1,374 3,248 (1) The combined changes in fair value is reflected as income from change in the fair market value of common stock warrant liability. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders' Equity [Abstract] | |
Common Share Activity | Twelve Months Ended December 31 2022 2021 Shares issued due to Options exercised - 446,551 Proceeds $ - $ 725 Shares issued due to Warrants exercised - 3,343,660 Proceeds $ - $ 5,652 Shares issued due to Restricted Stock Unit Vesting 145,126 16,667 Proceeds $ - $ - Pursuant to ATM Financing 7,162,253 233,793 Proceeds $ 5,767 $ 183 Pursuant to conversion of preferred stock 1,002,647 - Proceeds $ - $ - |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock Compensation [Abstract] | |
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, 2021 3,712,868 $ 1.81 Options granted 270,000 0.73 Options exercised — — Options forfeited ( 5,000 ) 0.40 Options cancelled or expired ( 517,985 ) 3.33 Outstanding at December 31, 2022 3,459,883 $ 1.50 3.33 $ 341,162 Vested or expected to vest at December 31, 2022 (1) 3,458,677 $ 1.50 3.33 $ 341,018 Exercisable at December 31, 2022 3,324,882 $ 1.53 3.08 $ 324,962 (1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total unvested options. |
Schedule of Key Assumptions of Fair Value of Stock Options Granted | Twelve Months Ended December 31, 2022 2021 Dividend yield 0 % 0 % Risk free interest rates 3.24 - 3.25 % 0.89 - 0.95 % Expected volatility 79.3 to 83.0 % 75.9 to 79.0 % Expected term (in years) 5.0 to 5.5 5.0 to 5.5 |
Schedule of Restricted Stock Unit Activity | Weighted Average Grant Date Number of Awards Fair Value Per Share Service Performance Service Performance based based based based RSU's outstanding at December 31, 2021 405,453 103,047 $ 3.52 $ 3.60 Granted 1,234,424 414,905 0.83 0.82 Vested and settled ( 117,332 ) — 3.51 — Forfeited ( 99,866 ) ( 81,078 ) 2.42 2.14 RSU's outstanding at December 31, 2022 1,422,679 436,874 $ 1.26 $ 1.23 |
Schedule of Allocation of Non-Cash Stock-Based Compensation | Twelve Months Ended December 31, 2022 2021 Cost of revenues $ 123 $ 62 Research and development 389 138 Selling, general and administrative 375 450 Total stock compensation expense $ 887 $ 650 |
Schedule of Stock-Based Compensation Cost by Award Type | Twelve Months Ended December 31, 2022 2021 Stock options $ 223 $ 369 Restricted Share Units 664 281 Total stock compensation expense $ 887 $ 650 |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) item customer $ / shares | Dec. 31, 2021 USD ($) customer $ / shares | Dec. 31, 2020 $ / shares | |
Accounting Policies [Line Items] | |||
Total intangible amortization expense | $ 8,000 | $ 8,000 | |
Standard product warranty period | 1 year | ||
Unbilled revenue, billed and collected, term | 1 year | ||
Net (Loss) Income | $ (1,103,000) | $ (5,206,000) | |
Net (loss) income per share: Basic | $ / shares | $ (0.01) | $ (0.07) | |
Impairment loss of long-lived assets | $ 0 | ||
Advertising expense | 0 | $ 0 | |
Net cash used in operating activities | 3,535,000 | 7,431,000 | |
Cash and cash equivalents | $ 4,346,000 | 5,724,000 | |
Work status reduction program, percentage decrease in senior management compensation | 20% | ||
Preferred Stock- Series B [Member] | |||
Accounting Policies [Line Items] | |||
Conversion price per share | $ / shares | $ 0.3022 | ||
Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member] | |||
Accounting Policies [Line Items] | |||
Measurement input | item | 0 | ||
Warrants [Member] | Measurement Input, Expected Dividend Rate [Member] | |||
Accounting Policies [Line Items] | |||
Measurement input | item | 0 | ||
Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Payment term | 30 days | ||
Accounts receivable, balance due | 30 days | ||
Minimum [Member] | Warrants [Member] | Measurement Input, Expected Term [Member] | |||
Accounting Policies [Line Items] | |||
Expected term | 29 days | ||
Minimum [Member] | Warrants [Member] | Measurement Input, Price Volatility [Member] | |||
Accounting Policies [Line Items] | |||
Measurement input | item | 0 | ||
Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Payment term | 60 days | ||
Accounts receivable, balance due | 60 days | ||
Equipment [Member] | Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Estimated useful life | 3 years | ||
Equipment [Member] | Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Estimated useful life | 10 years | ||
Revolving Credit Facility [Member] | |||
Accounting Policies [Line Items] | |||
Outstanding amount on credit facility | $ 1,037,000 | $ 1,974,000 | |
Remaining borrowing capacity | $ 1,800,000 | ||
Revenues [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||
Accounting Policies [Line Items] | |||
Number of customers | customer | 1 | ||
Concentration risk percentage | 17.80% | ||
Revenues [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | |||
Accounting Policies [Line Items] | |||
Number of customers | customer | 1 | ||
Revenues [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||
Accounting Policies [Line Items] | |||
Concentration risk percentage | 28.70% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||
Accounting Policies [Line Items] | |||
Number of customers | customer | 1 | ||
Concentration risk percentage | 27.70% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | |||
Accounting Policies [Line Items] | |||
Number of customers | customer | 1 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||
Accounting Policies [Line Items] | |||
Concentration risk percentage | 50.30% |
Significant Accounting Polici_5
Significant Accounting Policies (Summary of Activity Related to Warranty Liability Included in Other Current Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Accounting Policies [Abstract] | ||
Beginning balance | $ 519 | $ 615 |
Warranty accruals and adjustments | (247) | (82) |
Warranty claims | (58) | (14) |
Ending balance | $ 214 | $ 519 |
Significant Accounting Polici_6
Significant Accounting Policies (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Accounting Policies [Abstract] | ||
Net (Loss) Income | $ (1,103) | $ (5,206) |
Income allocated to participating securities | ||
(Loss) income allocated to common shares | (1,103) | (5,206) |
Change in fair value of warrant liability | (3,248) | |
Loss allocated to common shares - Diluted | $ (1,103) | $ (8,454) |
Weighted average common shares outstanding - Basic | 75,637,340 | 71,899,057 |
Dilutive effect of liability classified warrants | 1,280,381 | |
Weighted average common shares outstanding - Diluted | 75,637,340 | 73,179,438 |
Net (loss) income per share: Basic | $ (0.01) | $ (0.07) |
Net (loss) income per share: Diluted | $ (0.01) | $ (0.12) |
Significant Accounting Polici_7
Significant Accounting Policies (Schedule of Potentially Dilutive Common Stock Equivalents) (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 25,407,004 | 27,624,777 |
Restricted Share Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 1,725,543 | 405,453 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 3,048,725 | 3,712,868 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 2,909,374 | 4,780,447 |
Preferred Stock- Series B [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 17,723,362 | 18,726,009 |
Significant Accounting Polici_8
Significant Accounting Policies (Reconciliation of the Level 3 Warrant Liability Measured and Recorded at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Accounting Policies [Abstract] | ||
Balance as of January 1, 2022 | $ 1,374 | |
Fair value of warrants issuance during period | ||
Change in fair value of warrant liability, net | $ (1,374) | $ (3,248) |
Balance as of December 31, 2022 | $ 1,374 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Recognition [Abstract] | ||
Unbilled revenue, billed and collected, term | 1 year | |
Accounts Receivable, after Allowance for Credit Loss, Current | $ 7,035 | $ 4,488 |
Revenue recognized related to contract liabilities | 400 | |
Revenue recognized related to contract liabilities | 42 | |
Aggregate amount of the transaction price allocated to remaining performance obligations | $ 1,500 | $ 500 |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligations Narrative) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 $ in Millions | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 1.5 |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | $ 30,531 | $ 26,046 |
Military [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | 22,563 | 17,320 |
Commercial, including Industrial and Medical [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | 3,835 | 2,775 |
Consumer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | 323 | 1,796 |
Multiple [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | 3,810 | 4,155 |
North and South America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | 19,072 | 16,148 |
Europe, Middle East, and Africa [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | 10,008 | 8,180 |
Asia Pacific [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contract with customer | $ 1,451 | $ 1,718 |
Revenue Recognition (Schedule_2
Revenue Recognition (Schedule of Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue Recognition [Abstract] | ||
Unbilled Receivables (contract assets) | $ 2,438 | $ 1,102 |
Deferred Revenue (contract liabilities) | $ 12 | $ 54 |
Government Funding (Narrative)
Government Funding (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Jul. 28, 2020 | Jun. 11, 2020 | |
Amount awarded | $ 33,600 | $ 5,500 | ||
Government funding, term of contract | 33 months | |||
Deposits received, required by capital equipment vendors | $ 29,600 | |||
Restricted cash | 303 | $ 806 | ||
Amount invoiced | 29,600 | |||
Deferred income related to certain overhead expenses, not capitalized | $ 323 | $ 255 | ||
Maintain productive capacity of equipment purchased past completion of program, period | 5 years | |||
Government Funding [Member] | ||||
Restricted cash | $ 300 |
Accounts Receivable, Net (Sched
Accounts Receivable, Net (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Receivable, Net [Abstract] | ||
Accounts receivable | $ 7,193 | $ 4,627 |
Less allowance for doubtful accounts | (158) | (139) |
Accounts receivable, net | $ 7,035 | $ 4,488 |
Inventories, Net (Schedule of C
Inventories, Net (Schedule of Components of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventories, Net [Abstract] | ||
Raw materials | $ 3,497 | $ 3,517 |
Work in process | 3,496 | 2,149 |
Finished goods | 2,103 | 2,363 |
Total inventories | 9,096 | 8,029 |
Less inventory reserve | (387) | (397) |
Total inventories, net | $ 8,709 | $ 7,632 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Schedule of Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Prepaid Expenses and Other Current Assets [Abstract] | ||
Vendor prepayments | $ 379 | $ 471 |
Other prepaid expenses | 215 | 220 |
Total prepaid expenses and other current assets | $ 594 | $ 691 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Jul. 31, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 2,825 | $ 2,815 | |
Amortization of right-of-use assets | $ 650 | $ 622 | |
Finance lease, term of contract | 10 years | ||
Number of options to renew lease agreement | item | 2 | ||
Options to renew lease agreement, period of renewal | 5 years | ||
Present value of lease payment that exceeded fair value of underlying asset, percentage | 90% | ||
Lease liability | $ 14,837 | $ 2,200 | |
Property, Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 2,800 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Schedule of Property, Plant and Equipment Improvements) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 69,809 | $ 48,376 |
Less: accumulated depreciation and amortization | (20,710) | (17,893) |
Property, plant and equipment, net | 49,099 | 30,483 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 1,108 | 1,008 |
Lab and Factory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 22,301 | 21,100 |
Furniture, Fixtures and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 60 | 59 |
Finance Lease - Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 116 | 116 |
Finance Lease - Manufacturing Facility [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 15,208 | 12,968 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 1,108 | 1,088 |
Construction in Progress - Gov't Award [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 27,152 | 10,716 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 215 | 151 |
Factory Equipment - Gov't Award [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 2,541 | $ 1,170 |
Debt _ Line of Credit (Narrativ
Debt / Line of Credit (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 21, 2016 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 08, 2020 | |
Line of Credit Facility [Line Items] | ||||
Interest paid, capitalized or accrued | $ 83,000 | $ 58,000 | ||
Paycheck Protection Program [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Minimum interest rate | 1% | |||
Loans payable | $ 1,900,000 | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 5,000,000 | |||
Borrowing base equivalent of eligible accounts receivable, percentage | 85% | |||
Monthly interest payment | $ 2,000 | |||
Monthly administrative fee | $ 1,000 | |||
Annual facility fee on maximum amount borrowable | 1% | |||
Effective interest rate of funds borrowed | 10.50% | |||
Renewal date | Dec. 31, 2022 | |||
Automatic renewal date | Dec. 31, 2023 | |||
Line of credit facility term | 3 years | |||
Automatic renewal term | 1 year | |||
Debt issuance costs | $ 200,000 | |||
Minimum tangible net worth required for compliance | 13,000,000 | |||
Minimum working capital required for compliance | $ 4,000,000 | |||
Remaining borrowing capacity | $ 1,800,000 | |||
Outstanding amount on credit facility | $ 1,037,000 | $ 1,974,000 | ||
Minimum [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Effective interest rate of funds borrowed | 6.50% | |||
Maximum [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing base equivalent of eligible inventory | $ 2,000,000 | |||
Borrowing base equivalent of eligible inventory, percentage | 50% | |||
Prime Rate [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 3% |
Debt _ Line of Credit (Schedule
Debt / Line of Credit (Schedule of Line of Credit) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $ 1,037 | $ 1,974 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2020 ft² item | Dec. 31, 2019 | Dec. 31, 2022 item | May 02, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Number of options to renew lease agreement | 2 | |||
Options to renew lease agreement, period of renewal | 5 years | |||
Finance lease, term of contract | 10 years | |||
Hopewell Junction, NY [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease expiration date | 2024-05 | |||
Hopewell Junction, NY [Member] | 12th Amendment [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Additional area of office and manufacturing facilities (in square feet) | ft² | 63,000 | |||
Number of options to renew lease agreement | 2 | |||
Options to renew lease agreement, period of renewal | 5 years | |||
Santa Clara, California [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease extension term | 2 years | |||
Lease extension expiration date | Oct. 31, 2021 | |||
Phone Equipment [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Finance lease, term of contract | 3 years |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finance Lease Cost: | ||
Amortization of right-of-use assets | $ 650 | $ 622 |
Interest on lease liabilities | 887 | 793 |
Operating lease cost | 65 | 62 |
Total Lease Cost | $ 1,602 | $ 1,477 |
Leases (Schedule of Other Infor
Leases (Schedule of Other Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Principal payments on operating leases liabilities | $ 60 | $ 187 |
Principal payments on finance leases liabilities | 183 | 293 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 2,240 | 263 |
Finance lease right-of-use assets | $ 13,908 | $ 12,318 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Operating lease right-of-use assets | $ 53 | $ 113 |
Finance lease liability, current | 1,229 | 1,133 |
Finance lease liability, non-current | 13,608 | 11,647 |
Operating lease liabilities, current | $ 54 | 60 |
Operating lease liabilities, non-current | $ 54 | |
Weighted average remaining lease terms - finance leases | 20 years | 20 years 6 months 29 days |
Weighted average remaining lease terms - operating leases | 9 months 29 days | 1 year 9 months 29 days |
Weighted average discount rate - finance leases | 6.94% | 6.42% |
Weighted average discount rate - operating leases | 6.48% | 7.75% |
Leases (Future Annual Minimum L
Leases (Future Annual Minimum Lease Payments and Finance Lease Commitments) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jul. 31, 2022 |
Operating Leases | ||
2023 | $ 55 | |
Total undiscounted future minimum lease payments | 55 | |
Less imputed interest | (1) | |
Lease liability | 54 | |
Finance Leases | ||
2023 | 1,229 | |
2024 | 1,229 | |
2025 | 1,229 | |
2026 | 1,229 | |
2027 | 1,269 | |
Thereafter | 21,345 | |
Total undiscounted future minimum lease payments | 27,530 | |
Less imputed interest | (12,693) | |
Lease liability | $ 14,837 | $ 2,200 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | |
Income Tax Disclosure [Line Items] | ||
Effective tax rate | ||
Federal statutory rate | 21% | 21% |
Number of CARES Act provisions company is able to benefit from | item | 1 | |
Expected refund for AMT credit carryforward | $ 212,000 | |
Valuation allowance | 29,192,000 | $ 30,414,000 |
Net operating loss carryforwards | 76,462,000 | |
Research and development tax credit carryforwards | 2,341,000 | 2,237,000 |
Unrecognized tax benefits | 0 | 0 |
Unrecognized tax benefits, interest and penalties | 0 | $ 0 |
Indefinite [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | 15,800,000 | |
Tax Year 2000 [Member] | Expired [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | $ 11,800,000 |
Income Taxes (Schedule of Net L
Income Taxes (Schedule of Net Loss Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes [Abstract] | ||
Domestic, current | $ (1,103) | $ (5,206) |
Loss before provision for income taxes | $ (1,103) | $ (5,206) |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Taxes [Abstract] | ||
Federal and state net operating loss carryforwards | $ 16,555 | $ 22,578 |
Research and development tax credit carryforwards | 2,341 | 2,237 |
Stock based compensation | 1,946 | 1,665 |
Other provision and expenses not currently deductible | 7,912 | 4,448 |
Total deferred tax assets | 28,754 | 30,928 |
Depreciation and amortization | 427 | (507) |
Prepaid expenses | 11 | (7) |
Total deferred liabilities | 438 | (514) |
Less: valuation allowance | (29,192) | (30,414) |
Net deferred tax asset |
Income Taxes (Schedule of Feder
Income Taxes (Schedule of Federal Net Operating Losses and Tax Credit Carryforwards) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Loss Carryforwards [Line Items] | ||
Net Operating Losses | $ 76,462 | |
Research and Development Tax Credits | 2,341 | $ 2,237 |
2025-2037 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Losses | 60,704 | |
Research and Development Tax Credits | 2,341 | |
No Expiration [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Losses | $ 15,758 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Effective Tax Rate) (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
U.S. Federal income tax benefit at federal statutory rate | 21% | 21% |
Change in valuation allowance | 111% | 67% |
Permanent differences | 26% | 21% |
NOL Expiration - 1998 | (267.00%) | (115.00%) |
Other, net | 109% | 6% |
Effective tax rate |
Warrants (Summary of Warrants I
Warrants (Summary of Warrants Issued and Warrants Outstanding) (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Class of Warrant or Right [Line Items] | |
Outstanding | 5,909,374 |
2018 Warrant Issuance [Member] | |
Class of Warrant or Right [Line Items] | |
Issued | 4,004,329 |
Outstanding | 2,909,374 |
Exercise Price | $ / shares | $ 1.55 |
Expiration | 2023-01 |
2019 Warrant Issuance [Member] | |
Class of Warrant or Right [Line Items] | |
Issued | 6,000,000 |
Outstanding | 3,000,000 |
Exercise Price | $ / shares | $ 0.78 |
Expiration | 2024-10 |
Warrants (Fair Value of Warrant
Warrants (Fair Value of Warrants) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Warrant or Right [Line Items] | ||
Fair Value | $ 1,374 | |
Change in Fair Value of common stock warrant liability | $ 1,374 | 3,248 |
2018 January and February Issuance [Member] | ||
Class of Warrant or Right [Line Items] | ||
Fair Value | 1,355 | |
2017 May issuance [Member] | ||
Class of Warrant or Right [Line Items] | ||
Fair Value | $ 19 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Nov. 18, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Class of Stock [Line Items] | ||||
Proceeds from offering | $ 5,767 | $ 183 | ||
ATM Offering [Member] | ||||
Class of Stock [Line Items] | ||||
Sale of stock agreement, authorized amount | $ 10,000 | |||
Proceeds from offering | $ 5,800 | $ 200 | ||
Preferred Stock- Series B [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, conversion price per share | $ 0.75 | $ 0.3022 | ||
Common stock issued upon conversion of preferred stock | 17,723,362 | |||
Preferred stock, redemption price per share | $ 1,000 | |||
Preferred stock, shares issued | 5,356 | 5,659 | ||
Preferred stock, shares outstanding | 5,356 | 5,659 |
Shareholders' Equity (Common Sh
Shareholders' Equity (Common Share Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Shareholders' Equity [Abstract] | ||
Shares issued due to Options exercised | 446,551 | |
Proceeds | $ 725 | |
Shares issued due to Warrants exercised | 3,343,660 | |
Proceeds | $ 5,652 | |
Shares issued due to Restricted Stock Unit Vesting | 145,126 | 16,667 |
Pursuant to ATM Financing | 7,162,253 | 233,793 |
Proceeds | $ 5,767 | $ 183 |
Pursuant to conversion of preferred stock | 1,002,647 |
Stock Compensation (Narrative)
Stock Compensation (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options in-the-money | 1,224,638 | |
Closing stock price | $ 0.85 | |
Weighted average fair value per share for options granted | $ 0.49 | $ 2.21 |
Dividend yield | 0% | |
Dividend declared and paid | $ 0 | $ 0 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock option compensation, net of forfeitures | $ 29,000 | |
Unrecognized compensation cost, weighted average period of recognition | 4 months 24 days | |
Dividend yield | 0% | 0% |
Restricted Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock option compensation, net of forfeitures | $ 1,600,000 | |
Unrecognized compensation cost, weighted average period of recognition | 2 years 1 month 6 days | |
2019 Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized | 2,000,000 | |
Shares available for issuance/grant | 1,370,000 | |
2019 Employee and Consultant Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized | 5,000,000 | |
Shares available for issuance/grant | 2,967,099 | |
Older Plans [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for issuance/grant | 0 | |
Share-based Payment Arrangement, Tranche One [Member] | 2019 Director Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Share-based Payment Arrangement, Tranche One [Member] | 2019 Employee and Consultant Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year |
Stock Compensation (Schedule of
Stock Compensation (Schedule of Option Activity) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Options exercised | (446,551) | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding at December 31, 2021 | 3,712,868 | |
Number of Shares, Options granted | 270,000 | |
Number of Shares, Options forfeited | (5,000) | |
Number of Shares, Options cancelled or expired | (517,985) | |
Number of Shares, Outstanding at December 31, 2022 | 3,459,883 | 3,712,868 |
Number of Shares, Vested or expected to vest at December 31, 2022 | 3,458,677 | |
Number of Shares, Exercisable at December 31, 2022 | 3,324,882 | |
Weighted Average Exercise Price, Outstanding at December 31, 2021 | $ 1.81 | |
Weighted Average Exercise Price, Options granted | 0.73 | |
Weighted Average Exercise Price, Options forfeited | 0.40 | |
Weighted Average Exercise Price, Options cancelled or expired | 3.33 | |
Weighted Average Exercise Price, Outstanding at December 31, 2022 | 1.50 | $ 1.81 |
Weighted Average Exercise Price, Vested or expected to vest at December 31, 2022 | 1.50 | |
Weighted Average Exercise Price, Exercisable at December 31, 2022 | $ 1.53 | |
Weighted Average Remaining Contractual Life (In Years), Outstanding at December 31, 2022 | 3 years 3 months 29 days | |
Weighted Average Remaining Contractual Life (In Years), Vested or expected to vest at December 31, 2022 | 3 years 3 months 29 days | |
Weighted Average Remaining Contractual Life (In Years), Exercisable at December 31, 2022 | 3 years 29 days | |
Aggregate Intrinsic Value, Outstanding at December 31, 2022 | $ 341,162 | |
Aggregate Intrinsic Value, Vested or expected to vest at December 31, 2022 | 341,018 | |
Aggregate Intrinsic Value, Exercisable at December 31, 2022 | $ 324,962 |
Stock Compensation (Schedule _2
Stock Compensation (Schedule of Key Assumptions of Fair Value of Stock Options Granted) (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0% | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0% | 0% |
Risk free interest rates, minimum | 3.24% | 0.89% |
Risk free interest rates, maximum | 3.25% | 0.95% |
Expected volatility, minimum | 79.30% | 75.90% |
Expected volatility, maximum | 83% | 79% |
Stock Options [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 years | 5 years |
Stock Options [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 years 6 months | 5 years 6 months |
Stock Compensation (Schedule _3
Stock Compensation (Schedule of Restricted Stock Unit Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Service Based Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Awards, RSUs outstanding at December 31, 2021 | 405,453 | |
Number of Awards, Granted | 1,234,424 | |
Number of Awards, Vested and settled | (117,332) | |
Number of Awards, Forfeited | (99,866) | |
Number of Awards, RSUs outstanding at December 31, 2022 | 1,422,679 | |
Weighted Average Grant Date Fair Value per Share, RSUs outstanding at December 31, 2021 | $ 1.26 | $ 3.52 |
Weighted Average Grant Date Fair Value per Share, Granted | 0.83 | |
Weighted Average Grant Date Fair Value per Share, Vested and settled | 3.51 | |
Weighted Average Grant Date Fair Value per Share, Forfeited | 2.42 | |
Weighted Average Grant Date Fair Value per Share, RSUs outstanding at December 31, 2022 | $ 1.26 | |
Performance Based Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Awards, RSUs outstanding at December 31, 2021 | 103,047 | |
Number of Awards, Granted | 414,905 | |
Number of Awards, Vested and settled | ||
Number of Awards, Forfeited | (81,078) | |
Number of Awards, RSUs outstanding at December 31, 2022 | 436,874 | |
Weighted Average Grant Date Fair Value per Share, RSUs outstanding at December 31, 2021 | $ 1.23 | $ 3.60 |
Weighted Average Grant Date Fair Value per Share, Granted | 0.82 | |
Weighted Average Grant Date Fair Value per Share, Vested and settled | ||
Weighted Average Grant Date Fair Value per Share, Forfeited | 2.14 | |
Weighted Average Grant Date Fair Value per Share, RSUs outstanding at December 31, 2022 | $ 1.23 |
Stock Compensation (Schedule _4
Stock Compensation (Schedule of Allocation of Non-Cash Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | $ 887 | $ 650 |
Cost of Revenues [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | 123 | 62 |
Research and Development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | 389 | 138 |
Selling, General and Administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | $ 375 | $ 450 |
Stock Compensation (Schedule _5
Stock Compensation (Schedule of Stock-Based Compensation Cost by Award Type) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | $ 887 | $ 650 |
Stock Options [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | 223 | 369 |
Restricted Share Units [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock compensation expense | $ 664 | $ 281 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
May 12, 2021 | Mar. 31, 2019 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||||||
Equipment purchases commitments | $ 600 | |||||
Demand letter for payment | $ 900 | |||||
Settlement agreement, payment to be received | $ 600 | |||||
Consumer Night Vision, accrued invoices | $ 1,000 | |||||
Other income (expense) | $ 1,421 | $ 396 | ||||
Fully vested service period | 5 years | |||||
Percentage employer matches employee contributions | 50% | |||||
Percentage employer matches to a maximum qualified compensation | 3% | |||||
Employer contributions | $ 100 | $ 100 | ||||
Reclassification, Other [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Consumer Night Vision, accrued invoices | $ (1,000) | |||||
Prepayment, writeoff | 300 | |||||
Other income (expense) | $ 100 | |||||
Government Funding [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Equipment purchases commitments | $ 8,100 |