Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document And Entity Information | ||
Entity Registrant Name | MECHANICAL TECHNOLOGY INC | |
Entity Central Index Key | 64463 | |
Current Fiscal Year End Date | -19 | |
Amendment Flag | FALSE | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,258,883 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash | $1,606 | $1,923 |
Accounts receivable - less allowances of $25 in 2015 and $0 in 2014 | 1,009 | 1,196 |
Notes receivable - related party, net | 20 | |
Inventories | 765 | 773 |
Deferred income taxes, net | 15 | 20 |
Prepaid expenses and other current assets | 129 | 92 |
Total Current Assets | 3,524 | 4,024 |
Deferred income taxes, net | 1,320 | 1,315 |
Property, plant and equipment, net | 155 | 140 |
Total Assets | 4,999 | 5,479 |
Current Liabilities: | ||
Accounts payable | 220 | 216 |
Accrued liabilities | 918 | 1,045 |
Total Current Liabilities | 1,138 | 1,261 |
Commitments and Contingencies (Note 8) | ||
Stockholders' Equity: | ||
Common stock, par value $0.01 per share, authorized 75,000,000; 6,263,975 issued in both 2015 and 2014 | 63 | 63 |
Additional paid-in capital | 135,729 | 135,698 |
Accumulated deficit | -118,177 | -117,789 |
Common stock in treasury, at cost, 1,005,092 shares in both 2015 and 2014 | -13,754 | -13,754 |
Total stockholders' equity | 3,861 | 4,218 |
Total Liabilities and Stockholders' Equity | $4,999 | $5,479 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful account receivable (in dollars) | $25 | $0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock, shares authorized | 75,000,000 | 75,000,000 |
Common Stock, shares issued | 6,263,975 | 6,263,975 |
Common Stock, treasury at cost | 1,005,092 | 1,005,092 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Product revenue | $1,636 | $1,382 |
Operating costs and expenses: | ||
Cost of product revenue | 638 | 578 |
Unfunded research and product development expenses | 375 | 361 |
Selling, general and administrative expenses | 1,010 | 875 |
Operating loss | -387 | -432 |
Other expense, net | -1 | |
Net loss | ($388) | ($432) |
Loss per share (Basic and Diluted) (in dollars per share) | ($0.07) | ($0.08) |
Weighted average shares outstanding (Basic and Diluted) (in shares) | 5,258,883 | 5,256,883 |
Statement_Condensed_Consolidat
Statement - Condensed Consolidated Statements of Changes in Equity (Unaudited) (USD $) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings / Accumulated Deficit [Member] | Treasury Stock [Member] | Total |
In Thousands, except Share data, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2013 | $63 | $135,612 | ($118,529) | ($13,754) | $3,392 |
Beginning Balance (in shares) at Dec. 31, 2013 | 6,261,975 | 1,005,092 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income loss | 740 | 740 | |||
Stock based compensation | 85 | 85 | |||
Issuance of shares - option exercises | 1 | 1 | |||
Issuance of shares - option exercises (in shares) | 2,000 | ||||
Ending Balance at Dec. 31, 2014 | 63 | 135,698 | -117,789 | -13,754 | 4,218 |
Ending Balance (in shares) at Dec. 31, 2014 | 6,263,975 | 1,005,092 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income loss | -388 | -388 | |||
Stock based compensation | 31 | 31 | |||
Ending Balance at Mar. 31, 2015 | $63 | $135,729 | ($118,177) | ($13,754) | $3,861 |
Ending Balance (in shares) at Mar. 31, 2015 | 6,263,975 | 1,005,092 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net loss | ($388) | ($432) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 19 | 24 |
Provision for bad debts | 25 | |
Stock based compensation | 31 | 15 |
Provision for excess and obsolete inventories | -38 | 16 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 162 | -3 |
Inventories | 46 | 25 |
Prepaid expenses and other current assets | -37 | 1 |
Accounts payable | 4 | 56 |
Accrued liabilities | -127 | -171 |
Net cash used in operating activities | -303 | -469 |
Investing Activities | ||
Purchases of equipment | -34 | -3 |
Principle payments from notes receivable - related party | 20 | |
Net cash used in investing activities | -14 | -3 |
Decrease in cash | -317 | -472 |
Cash - beginning of period | 1,923 | 1,211 |
Cash - end of period | $1,606 | $739 |
Nature_of_Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | 1. Nature of Operations |
Description of Business | |
Mechanical Technology, Incorporated (MTI or the Company), a New York corporation, was incorporated in 1961. The Company’s core business is conducted through MTI Instruments, Inc. (MTI Instruments), a wholly-owned subsidiary. | |
MTI Instruments was incorporated in New York on March 8, 2000 and is a supplier of precision linear displacement solutions, vibration measurement and system balancing systems, and wafer inspection tools, consisting of electronic gauging instruments for position, displacement and vibration application within the industrial manufacturing/production markets, as well as the research, design and process development market; tensile stage systems for materials testing at academic and industrial research settings; and engine vibration analysis systems for both military and commercial aircraft. These tools, systems and solutions are developed for markets and applications that require the precise measurements and control of products, processes, and the development and implementation of automated manufacturing, assembly, and consistent operation of complex machinery. | |
Liquidity | |
The Company has incurred significant losses primarily due to its past efforts to fund direct methanol fuel cell product development and commercialization programs, and has an accumulated deficit of approximately $118.2 million and working capital of approximately $2.4 million at March 31, 2015. | |
Based on the Company’s projected cash requirements for operations and capital expenditures for 2015, its current available cash of approximately $1.6 million, the $1.0 million available from its existing line of credit, current cash flow requirements and revenue and expense projections, management believes it will have adequate resources to fund operations and capital expenditures for at least the next twelve months. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 2. Basis of Presentation |
In the opinion of management, the Company’s condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the periods presented in accordance with United States of America Generally Accepted Accounting Principles (U.S. GAAP) and with the instructions to Form 10-Q in Article 10 of the Securities and Exchange Commissions (SEC) Regulation S-X. The results of operations for the interim periods presented are not necessarily indicative of results for the full year. | |
Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |
The information presented in the accompanying condensed consolidated balance sheet as of December 31, 2014 has been derived from the Company’s audited consolidated financial statements. All other information has been derived from the Company’s unaudited condensed consolidated financial statements for the three months ended March 31, 2015 and March 31, 2014. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, MTI Instruments. All intercompany balances and transactions are eliminated in consolidation. | |
The Company records its investment in MeOH Power, Inc. using the equity method of accounting. The fair value of the Company’s interest in MeOH Power, Inc. has been determined to be $0 as of March 31, 2015 and December 31, 2014, based on MeOH Power, Inc.’s net position and expected cash flows. As of March 31, 2015, the Company retained its ownership of approximately 47.5% of MeOH Power, Inc.’s outstanding common stock, or 75,049,937 shares, and 54.5% of the common stock and warrants issued, which includes 31,904,136 warrants outstanding. |
Accounts_Receivable
Accounts Receivable | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Receivables [Abstract] | |||||||||
Accounts Receivable | 3. Accounts Receivable | ||||||||
Accounts receivables consist of the following at: | |||||||||
(Dollars in thousands) | 31-Mar-15 | 31-Dec-14 | |||||||
U.S. and State Government | $ | 48 | $ | 3 | |||||
Commercial | 961 | 1,193 | |||||||
Total | $ | 1,009 | $ | 1,196 | |||||
For the three months ended March 31, 2015 and 2014, the largest commercial customer represented 10.2% and 14.5%, respectively, and the largest governmental agency represented 3.7% and 11.0%, respectively, of the Company’s product revenue. As of March 31, 2015 and December 31, 2014, the largest commercial receivable represented 16.5% and 9.1%, respectively, and the largest governmental receivable represented 4.7% and 0.2%, respectively, of the Company’s accounts receivable. | |||||||||
As of March 31, 2015 and December 31, 2014, the Company had $25 thousand and $0, respectively in allowance for doubtful trade accounts receivable. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | 4. Inventories | ||||||||
Inventories consist of the following at: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
(Dollars in thousands) | |||||||||
Finished goods | $ | 293 | $ | 314 | |||||
Work in process | 163 | 161 | |||||||
Raw materials | 309 | 298 | |||||||
Total | $ | 765 | $ | 773 | |||||
Property_Plant_and_Equipment
Property, Plant, and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | 5. Property, Plant and Equipment | ||||||||
Property, plant and equipment consist of the following at: | |||||||||
(Dollars in thousands) | 31-Mar-15 | 31-Dec-14 | |||||||
Leasehold improvements | $ | 39 | $ | 39 | |||||
Computers and related software | 1,036 | 1,035 | |||||||
Machinery and equipment | 848 | 817 | |||||||
Office furniture and fixtures | 61 | 61 | |||||||
1,984 | 1,952 | ||||||||
Less: Accumulated depreciation | 1,829 | 1,812 | |||||||
$ | 155 | $ | 140 | ||||||
Depreciation expense was $19 thousand and $83 thousand for the three months ended March 31, 2015 and the year ended December 31, 2014, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes |
During the three months ended March 31, 2015, the Company’s effective income tax rate was 0%. The projected annual effective tax rate is less than the Federal statutory rate of 34%, primarily due to permanent differences, the change in the valuation allowance and changes to estimated taxable income for 2015. For the three months ended March 31, 2014, the Company’s effective income tax rate was 0%. | |
The Company provides for recognition of deferred tax assets if the realization of such assets is more likely than not to occur in accordance with accounting standards that address income taxes. Significant management judgment is required in determining the period in which the reversal of a valuation allowance should occur. The Company has considered all available evidence, both positive and negative, such as historical levels of income and future forecasts of taxable income amongst other items, in determining its valuation allowance. In addition, the Company’s assessment requires us to schedule future taxable income in accordance with accounting standards that address income taxes to assess the appropriateness of a valuation allowance which further requires the exercise of significant management judgment. | |
The Company has determined that it expects to generate sufficient levels of pre-tax earnings in the future to realize the net deferred tax assets recorded on the balance sheet at March 31, 2015. The Company has projected such pre-tax earnings utilizing a combination of historical and projected results, taking into consideration existing levels of permanent differences, non-deductible expense and the reversal of significant temporary differences. We project that our taxable income for the next three years is adequate to ensure the realizability of the $1.3 million of deferred tax assets recorded on our balance sheet at March 31, 2015. In the event that actual results differ from these estimates or we adjust these estimates in future periods, we may need to adjust the recorded valuation allowance, which could materially impact our financial position and results of operations. We will continue to evaluate the ability to realize our deferred tax assets and related valuation allowance on a quarterly basis. | |
The Company believes that the accounting estimate for the valuation of deferred tax assets is a critical accounting estimate, because judgment is required in assessing the likely future tax consequences of events that have been recognized in our financial statements or tax returns. The Company based the estimate of deferred tax assets and liabilities on current tax laws and rates and, in certain cases, business plans and other expectations about future outcomes. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, the Company may need to adjust the recorded valuation allowance, which could materially impact our financial position and results of operations. The valuation allowance was $16.9 million at March 31, 2015 and $16.7 million at December 31, 2014. The Company will continue to evaluate the ability to realize its deferred tax assets and related valuation allowances on a quarterly basis. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Equity [Abstract] | |||||
Stockholders' Equity | 7. Stockholders’ Equity | ||||
Common Stock | |||||
The Company has one class of common stock, par value $.01. Each share of the Company’s common stock is entitled to one vote on all matters submitted to stockholders. As of March 31, 2015 and December 31, 2014, there were 5,258,883 shares of common stock issued and outstanding. | |||||
Reservation of Shares | |||||
The Company had reserved common shares for future issuance as follows as of March 31, 2015: | |||||
Stock options outstanding | 942,908 | ||||
Common stock available for future equity awards or issuance of options | 266,500 | ||||
Number of common shares reserved | 1,209,408 | ||||
Earnings (Loss) per Share | |||||
The Company computes basic income (loss) per common share by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period. Diluted income (loss) per share reflects the potential dilution, if any, computed by dividing income (loss) by the combination of dilutive common share equivalents, comprised of shares issuable under outstanding investment rights, warrants and the Company’s share-based compensation plans, and the weighted average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money stock options, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of a stock option, the amount of compensation cost, if any, for future service that the Company has not yet recognized, and the amount of windfall tax benefits that would be recorded in additional paid-in capital, if any, when the stock option is exercised are assumed to be used to repurchase shares in the current period. | |||||
Not included in the computation of earnings per share, assuming dilution, for the three months ended March 31, 2015, were options to purchase 942,908 shares of the Company’s common stock. These potentially dilutive items were excluded because the Company incurred a loss during the periods and their inclusion would be anti-dilutive. | |||||
Not included in the computation of earnings per share, assuming dilution, for the three months ended March 31, 2014, were options to purchase 716,662 shares of the Company’s common stock. These potentially dilutive items were excluded because the Company incurred a loss during this period and their inclusion would be anti-dilutive. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Commitments and Contingencies | 8. Commitments and Contingencies | ||||||||
Commitments: | |||||||||
Leases | |||||||||
The Company and its subsidiary lease certain manufacturing, laboratory and office facilities. The lease provides for the Company to pay its allocated share of insurance, taxes, maintenance and other costs of the leased property. Under the May 2, 2014 agreement, MTI Instruments has an option to terminate the lease as of December 1, 2016. If MTI Instruments terminates the lease prior to November 2019, MTI Instruments is required to reimburse the landlord for all unamortized costs that the landlord incurred for renovations to the leased space in conjunction with the lease renewal. | |||||||||
Future minimum rental payments required under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of March 31, 2015 are (dollars in thousands): $166 remaining in 2015, $222 in 2016, $224 in 2017, $218 in 2018 and $204 in 2019. | |||||||||
Warranties | |||||||||
Product warranty liabilities are included in “Accrued liabilities” in the Condensed Consolidated Balance Sheets. Below is a reconciliation of changes in product warranty liabilities: | |||||||||
(Dollars in thousands) | Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Balance, January 1 | $ | 17 | $ | 17 | |||||
Accruals for warranties issued | 4 | 3 | |||||||
Settlements made (in cash or in kind) | (2 | ) | (3 | ) | |||||
Balance, end of period | $ | 19 | $ | 17 | |||||
Employment Agreement | |||||||||
The Company has an employment agreement with one employee that provides certain payments upon termination of employment under certain circumstances, as defined in the agreement. As of March 31, 2015, the Company’s potential minimum obligation to this employee was approximately $72 thousand. | |||||||||
Contingencies: | |||||||||
Legal | |||||||||
We are subject to legal proceedings, claims and liabilities which arise in the ordinary course of business. We accrue for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. Legal fees are charged to expense as they are incurred. |
Line_of_Credit
Line of Credit | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Line of Credit | 9. Line of Credit |
On May 5, 2014, the Company entered into a revolving line of credit with Bank of America, N.A. (the Bank) to replace MTI Instruments’ prior line of credit. The Company may borrow under the existing line of credit from time to time up to $1 million to support its working capital needs. The line of credit is available until July 31, 2015 and may be renewed subject to all the terms and conditions as set forth in the Loan Agreement (the Loan). The Loan is payable no later than the expiration date of the Loan and interest is payable on the last day of each month beginning on May 30, 2014 and until payment has been made in full. The interest rate on funds borrowed under the line of credit is equal to the LIBOR Daily Floating Rate plus 2.75%. The Loan is secured by equipment and fixtures, inventory and receivables owned by the Company and guaranteed by MTI Instruments. The Company is required to hold a balance of $0 for 30 consecutive days during the period from May 5, 2014 through July 31, 2015, and each subsequent one-year period of the Loan, if any. Upon the occurrence of an event of default, the Bank may set off against our repayment obligations any amounts we maintain at the Bank. The Company is also subject to other restrictions as set forth in the Loan. As of March 31, 2015 and December 31, 2014, there were no amounts outstanding under the line of credit. |
Stock_Based_Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | 10. Stock Based Compensation |
The Mechanical Technology, Incorporated 2014 Equity Incentive Plan (the 2014 Plan) was adopted by the Company’s Board of Directors on March 12, 2014 and approved by its stockholders on June 11, 2014. The 2014 Plan provides an initial aggregate number of 500,000 shares of common stock that may be awarded or issued. The number of shares that may be awarded under the 2014 Plan and awards outstanding may be subject to adjustment on account of any stock dividend, spin-off, stock split, reverse stock split, split-up, recapitalization, reclassification, reorganization, combination or exchange of shares, merger, consolidation, liquidation, business combination, exchange of shares or the like. Under the 2014 Plan, the Board appointed administrator of the 2014 Plan is authorized to issue stock options (incentive and nonqualified), stock appreciation rights, restricted stock, restricted stock units, phantom stock, performance awards and other stock-based awards to employees, officers and directors of, and other individuals providing bona fide services to or for, the Company or any affiliate of the Company. Incentive stock options may only be granted to employees of the Company and its subsidiaries. | |
The Mechanical Technology, Incorporated 2012 Equity Incentive Plan (the 2012 Plan) was adopted by the Company’s Board of Directors on April 14, 2012 and approved by stockholders on June 14, 2012. The 2012 Plan provides an initial aggregate number of 600,000 shares of common stock which may be awarded or issued. The number of shares which may be awarded under the 2012 Plan and awards outstanding can be subject to adjustment on account of any recapitalization, reclassification, stock split, reverse stock split and other dilutive changes in Common Stock. Under the 2012 Plan, the Board of Directors is authorized to issue stock options (incentive and nonqualified), stock appreciation rights, restricted stock, restricted stock units and other stock-based awards to employees, officers, directors, consultants and advisors of the Company and its subsidiaries. Incentive stock options may only be granted to employees of the Company and its subsidiaries. | |
During 2015, the Company granted 140,000 options to purchase the Company’s common stock from the 2014 Plan, which generally vest 25% on each of the first four anniversaries of the date of the award. The exercise price of these grants was $1.20 per share and was based on the closing market price of the Company’s common stock on the dates of grant. Using a Black-Scholes Option Pricing Model, the weighted average fair value of these options was $1.14 per share and was estimated at the date of grant. | |
During 2014, the Company granted 140,000 options to purchase the Company’s common stock from the 2012 Plan, which generally vest 25% on each of the first four anniversaries of the date of the award. The exercise price of these grants was $1.08 per share and was based on the closing market price of the Company’s common stock on the dates of grant. Using a Black-Scholes Option Pricing Model, the weighted average fair value of these options was $1.07 per share and was estimated at the date of grant. | |
During 2014, the Company granted 102,000 options to purchase the Company’s common stock from the 2014 Plan, which generally vest 25% on each of the first four anniversaries of the date of the award. The exercise price of these grants was $0.85 per share and was based on the closing market price of the Company’s common stock on the dates of grant. Using a Black-Scholes Option Pricing Model, the weighted average fair value of these options was $0.84 per share and was estimated at the date of grant. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions |
MeOH Power, Inc. | |
As of March 31, 2015, the Company owned an aggregate of approximately 47.5% of MeOH Power, Inc.’s outstanding common stock, or 75,049,937 shares, and 54.5% of the common stock and warrants issued, which includes 31,904,136 warrants outstanding. The number of shares of MeOH Power, Inc.’s common stock authorized for issuance is 240,000,000 as of March 31, 2015. | |
On December 18, 2013, MeOH Power, Inc. and the Company executed a Senior Demand Promissory Note (the Note) in the amount of $380 thousand to secure the intercompany amounts due to the Company from MeOH Power, Inc. upon the deconsolidation of MeOH Power, Inc. Interest accrues on the Note at the Prime Rate in effect on the first business day of the month, as published in the Wall Street Journal. At the Company’s option, all or part of the principal and interest due on this Note may be converted to shares of common stock of MeOH Power, Inc. at a rate of $0.07 per share. Interest began accruing on January 1, 2014. At December 31, 2013, the Company recorded a full allowance against the Note. In 2014, $115 thousand was received from MeOH Power, Inc. in principle and interest and an additional $20 thousand was released from the allowance in advance of a January 2015 payment from MeOH Power, Inc. As of March 31, 2015 and December 31, 2014, $260 thousand and $278 thousand, respectively, of principal and interest are available to convert into shares of common stock of MeOH Power, Inc. Any adjustments to the allowance are recorded as miscellaneous expense during the period incurred. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
In the opinion of management, the Company’s condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the periods presented in accordance with United States of America Generally Accepted Accounting Principles (U.S. GAAP) and with the instructions to Form 10-Q in Article 10 of the Securities and Exchange Commissions (SEC) Regulation S-X. The results of operations for the interim periods presented are not necessarily indicative of results for the full year. | |
Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |
The information presented in the accompanying condensed consolidated balance sheet as of December 31, 2014 has been derived from the Company’s audited consolidated financial statements. All other information has been derived from the Company’s unaudited condensed consolidated financial statements for the three months ended March 31, 2015 and March 31, 2014. | |
Principles of Consolidation | Principles of Consolidation |
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, MTI Instruments. All intercompany balances and transactions are eliminated in consolidation. | |
The Company records its investment in MeOH Power, Inc. using the equity method of accounting. The fair value of the Company’s interest in MeOH Power, Inc. has been determined to be $0 as of March 31, 2015 and December 31, 2014, based on MeOH Power, Inc.’s net position and expected cash flows. As of March 31, 2015, the Company retained its ownership of approximately 47.5% of MeOH Power, Inc.’s outstanding common stock, or 75,049,937 shares, and 54.5% of the common stock and warrants issued, which includes 31,904,136 warrants outstanding. |
Accounts_Receivables_Tables
Accounts Receivables (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Receivables [Abstract] | |||||||||
Schedule of accounts receivables | Accounts receivables consist of the following at: | ||||||||
(Dollars in thousands) | 31-Mar-15 | 31-Dec-14 | |||||||
U.S. and State Government | $ | 48 | $ | 3 | |||||
Commercial | 961 | 1,193 | |||||||
Total | $ | 1,009 | $ | 1,196 |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of inventory | Inventories consist of the following at: | ||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
(Dollars in thousands) | |||||||||
Finished goods | $ | 293 | $ | 314 | |||||
Work in process | 163 | 161 | |||||||
Raw materials | 309 | 298 | |||||||
Total | $ | 765 | $ | 773 |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following at: | ||||||||
(Dollars in thousands) | 31-Mar-15 | 31-Dec-14 | |||||||
Leasehold improvements | $ | 39 | $ | 39 | |||||
Computers and related software | 1,036 | 1,035 | |||||||
Machinery and equipment | 848 | 817 | |||||||
Office furniture and fixtures | 61 | 61 | |||||||
1,984 | 1,952 | ||||||||
Less: Accumulated depreciation | 1,829 | 1,812 | |||||||
$ | 155 | $ | 140 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Equity [Abstract] | |||||
Schedule of reserved common shares | The Company had reserved common shares for future issuance as follows as of March 31, 2015: | ||||
Stock options outstanding | 942,908 | ||||
Common stock available for future equity awards or issuance of options | 266,500 | ||||
Number of common shares reserved | 1,209,408 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Schedule of reconciliation of changes in product warranty liabilities | Product warranty liabilities are included in “Accrued liabilities” in the Condensed Consolidated Balance Sheets. Below is a reconciliation of changes in product warranty liabilities: | ||||||||
(Dollars in thousands) | Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Balance, January 1 | $ | 17 | $ | 17 | |||||
Accruals for warranties issued | 4 | 3 | |||||||
Settlements made (in cash or in kind) | (2 | ) | (3 | ) | |||||
Balance, end of period | $ | 19 | $ | 17 |
Nature_of_Operations_Details_N
Nature of Operations (Details Narrative) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Accumulated deficit | ($118,177) | ($117,789) | ||
Working capital | 2,400 | |||
Cash | 1,606 | 1,923 | 739 | 1,211 |
Line of credit facility | $1,000 |
Basis_of_Presentation_Details_
Basis of Presentation (Details Narrative) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Number of equity shares outstanding | 5,258,883 | 5,258,883 |
MeOH Power, Inc [Member] | ||
Fair value of non-controlling interest | 0 | 0 |
Percentage of equity ownership (in percent) | 47.50% | |
Number of warrants outstanding | 31,904,136 | |
Common Stock [Member] | MTI [Member] | MeOH Power, Inc [Member] | ||
Percentage of equity ownership (in percent) | 47.50% | |
Number of equity shares outstanding | 75,049,937 | |
Common stock & Warrant [Member] | MTI [Member] | MeOH Power, Inc [Member] | ||
Percentage of equity ownership (in percent) | 54.50% | |
Number of warrants outstanding | 31,904,136 |
Accounts_Receivable_Details_Na
Accounts Receivable (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Concentration Risk [Line Items] | |||
Allowance for doubtful trade accounts receivable | 25 | 0 | |
Sales Revenue, Segment [Member] | Commercial [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 10.20% | 14.50% | |
Sales Revenue, Segment [Member] | United States and State Government [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 3.70% | 11.00% | |
Accounts Receivable [Member] | Commercial [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 16.50% | 9.10% | |
Accounts Receivable [Member] | United States and State Government [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 4.70% | 0.20% |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $1,009 | $1,196 |
U.S. and State Government [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 48 | 3 |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $961 | $1,193 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished goods | $293 | $314 |
Work in process | 163 | 161 |
Raw materials | 309 | 298 |
Total | $765 | $773 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $19 | $24 | $83 |
Property_Plant_and_Equipment_D1
Property, Plant and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $1,984 | $1,952 |
Less: Accumulated depreciation | 1,829 | 1,812 |
Property, plant and equipment, Net | 155 | 140 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 39 | 39 |
Computers and related software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 1,036 | 1,035 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 848 | 817 |
Office furniture, equipment and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $61 | $61 |
Income_Taxes_Details_Narrative
Income Taxes (Details Narrative) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate (as a percent) | 0.00% | 0.00% | |
Statutory rate (as a percent) | 34.00% | ||
Deferred tax assets | $1,300 | ||
Valuation allowance | $16,900 | $16,700 |
Stockholders_Equity_Details_Na
Stockholders' Equity (Details Narrative) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Common stock par value (in dollars per share) | 0.01 | $0.01 | |
Common stock shares outstanding | 5,258,883 | 5,258,883 | |
Equity Option [Member] | |||
Potentially dilutive items excluded from computation of earnings per share (in shares) | 942,908 | 716,662 |
Stockholders_Equity_Details
Stockholders' Equity (Details) | Mar. 31, 2015 |
Equity [Abstract] | |
Stock options outstanding | 942,908 |
Common stock available for future equity awards or issuance of options | 266,500 |
Number of common shares reserved | 1,209,408 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details Narrative) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Future minimum rental payments required under non-cancelable operating leases | |
2015 | $166 |
2016 | 222 |
2017 | 224 |
2018 | 218 |
2019 | 204 |
Potential minimum obligation under employment agreement | $72 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Commitments And Contingencies Details | ||
Balance, January 1 | $17 | $17 |
Accruals for warranties issued | 4 | 3 |
Settlements made (in cash or in kind) | -2 | -3 |
Balance, end of period | $19 | $17 |
Line_of_Credit_Details_Narrati
Line of Credit (Details Narrative) (Revolving Credit Facility [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | 5-May-14 |
Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $1,000 |
Description of variable rate basis | LIBOR Daily Floating Rate |
Basis spread on variable rate (as a percent) | 2.75% |
Balance required to be hold by Company for 30 consecutive days | $0 |
Period of consecutive days over which Company is required to hold a balance | 30 days |
Period subsequent to July 31, 2015, the Company is required to hold a balance | 1 year |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details Narrative) (Employee Stock Option [Member], USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Equity Incentive Plan 2014 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of common stock awarded or issued | 500,000 | |
Number of awards granted (in shares) | 140,000 | 102,000 |
Awards vesting percentage | 25.00% | 25.00% |
Exercise price of awards (in dollars per share) | $1.20 | $0.85 |
Weighted average fair value of awards (in dollars per share) | $1.14 | $0.84 |
Equity Incentive Plan 2012 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of common stock awarded or issued | 600,000 | |
Number of awards granted (in shares) | 140,000 | |
Awards vesting percentage | 25.00% | |
Exercise price of awards (in dollars per share) | $1.08 | |
Weighted average fair value of awards (in dollars per share) | $1.07 |
Related_Party_Transactions_Det
Related Party Transactions (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 18, 2013 |
Related Party Transaction [Line Items] | |||
Common Stock, shares authorized | 75,000,000 | 75,000,000 | |
MeOH Power, Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of outstanding common stock owned | 47.50% | ||
Number of outstanding common stock owned | 75,049,937 | ||
Percentage of issued common stock and warrants owned | 54.50% | ||
Warrants outstanding | 31,904,136 | ||
Common Stock, shares authorized | 240,000,000 | ||
MeOH Power, Inc [Member] | Senior Demand Promissory Note [Member] | |||
Related Party Transaction [Line Items] | |||
Notes periodic payment | $115 | ||
Notes advance allowance payment | 20 | ||
Notes face amount | 380 | ||
Description of notes interest rate | Interest accrues on the Note at the Prime Rate in effect on the first business day of the month, as published in the Wall Street Journal. | ||
Notes convertible conversion price (in dollars per share) | $0.07 | ||
Notes beneficial conversion feature | $260 | $278 |