Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 22, 2016 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | MECHANICAL TECHNOLOGY INC | ||
Entity Central Index Key | 64,463 | ||
Document Type | 10-K | ||
Trading Symbol | mkty | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 6,146,688 | ||
Entity Common Stock, Shares Outstanding | 5,250,782 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash | $ 462 | $ 1,923 |
Accounts receivable - less allowances of $56 in 2015 and $0 in 2014 | $ 931 | 1,196 |
Notes receivable - related party, net | 20 | |
Inventories | $ 1,006 | 773 |
Deferred income taxes, net | 20 | |
Prepaid expenses and other current assets | $ 72 | 92 |
Total Current Assets | $ 2,471 | 4,024 |
Deferred income taxes, net | 1,315 | |
Property, plant and equipment, net | $ 115 | 140 |
Total Assets | 2,586 | 5,479 |
Current Liabilities: | ||
Accounts payable | 152 | 216 |
Accrued liabilities | 907 | 1,045 |
Total Current Liabilities | $ 1,059 | $ 1,261 |
Commitments and Contingencies (Note 12) | ||
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 | 135,839 | 135,698 |
Accumulated deficit | (120,621) | (117,789) |
Common stock in treasury, at cost, 1,005,092 shares in both 2015 and 2014 | (13,754) | (13,754) |
Total stockholders' equity | 1,527 | 4,218 |
Total Liabilities and Stockholders' Equity | $ 2,586 | $ 5,479 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful account receivable | $ 56 | $ 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 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||
Product revenue | $ 6,330 | $ 8,781 |
Operating costs and expenses: | ||
Cost of product revenue | 2,475 | 3,284 |
Research and product development expenses | 1,546 | 1,346 |
Selling, general and administrative expenses | 3,779 | 3,586 |
Operating (loss) income | (1,470) | 565 |
Other (expense) income, net | (2) | 135 |
(Loss) income before income taxes | (1,472) | 700 |
Income tax (expense) benefit | (1,360) | 40 |
Net (loss) income | $ (2,832) | $ 740 |
(Loss) income per share (Basic) | $ (0.54) | $ 0.14 |
(Loss) income per share (Diluted) | $ (0.54) | $ 0.14 |
Weighted average shares outstanding (Basic) | 5,258,883 | 5,257,360 |
Weighted average shares outstanding (Diluted) | 5,258,883 | 5,464,003 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Total |
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 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 loss | $ (2,832) | (2,832) | |||
Stock based compensation | $ 141 | 141 | |||
Issuance of shares - option exercises | |||||
Issuance of shares - option exercises (in shares) | |||||
Ending Balance at Dec. 31, 2015 | $ 63 | $ 135,839 | $ (120,621) | $ (13,754) | $ 1,527 |
Ending Balance (in shares) at Dec. 31, 2015 | 6,263,975 | 1,005,092 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities | ||
Net (loss) income | $ (2,832) | $ 740 |
Adjustments to reconcile net (loss) income to net cash (used) provided by operating activities: | ||
Depreciation | 80 | $ 83 |
Provision for bad debts | 56 | |
Deferred income taxes | 1,335 | $ 165 |
Stock based compensation | 141 | 85 |
Provision for excess and obsolete inventories | $ 83 | 16 |
Provision for notes receivable - related party | (122) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | $ 209 | (372) |
Inventories | (316) | (47) |
Prepaid expenses and other current assets | 20 | 19 |
Accounts payable | (64) | 67 |
Accrued liabilities | (138) | 52 |
Net cash (used) provided by operating activities | (1,426) | 686 |
Investing Activities | ||
Purchases of equipment | (55) | (77) |
Principle payments from notes receivable - related party | 20 | 102 |
Net cash (used in) provided by investing activities | $ (35) | 25 |
Financing Activities | ||
Proceeds from stock option exercises | 1 | |
Net cash provided by financing activities | 1 | |
(Decrease) increase in cash | $ (1,461) | 712 |
Cash - beginning of period | 1,923 | 1,211 |
Cash - end of period | $ 462 | $ 1,923 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 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 Companys core business is conducted through MTI Instruments, Inc. (MTI Instruments), its 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; Going Concern The Company has historically incurred significant losses primarily due to its past efforts to fund direct methanol fuel cell product development and commercialization programs, and had an accumulated deficit of approximately $120.6 million and working capital of approximately $1.4 million at December 31, 2015. As of December 31, 2015, we had no debt and no outstanding commitments for capital expenditures. Based on the Companys projected cash requirements for operations and capital expenditures, its current available cash of approximately $462 thousand and our projected 2016 cash flow pursuant to managements current plan, management believes it will have adequate resources to fund operations and capital expenditures for at least the next twelve months. If cash generated from operations is insufficient to satisfy the Companys working capital and capital expenditure requirements, the Company may be required to sell additional equity or obtain additional credit facilities. The Company has no other formal commitments for funding future needs of the organization at this time and any additional financing during 2016, if required, may not be available to us on acceptable terms or at all. The Companys financial statements have been prepared assuming the Company will continue as a going concern, which assumes the realization of assets and the satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. If the going concern basis were not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used. The Companys history of operating cash flow deficits, its current cash position and lack of access to capital may raise doubt about its ability to continue as a going concern and its continued existence could be dependent upon several factors, including its ability to raise revenue levels and control costs to generate positive cash flows, to sell additional shares of the Companys common stock to fund operations and to obtain additional credit facilities. Selling additional shares of the Companys common stock and obtaining additional credit facilities may be more difficult as a result of limited access to equity markets and the tightening of credit markets. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amount of or classification of liabilities that might be necessary as a result of this uncertainty. The Company believes that the current lack of liquidity and going concern opinion resulted primarily from delays in entering into a new agreement with the U.S. Air Force (as discussed in Item 7: Managements Discussion and Analysis of Financial Condition and Results of Operations) and in a product order it is expecting but has not yet been placed, as well as the Companys cancellation of its existing lines of credit on March 24, 2016, as further discussed in Item 7: Managements Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this Annual Report. While the Company believes that it will enter into a new agreement with the U.S. Air Force during the second quarter of 2016 and that the new order it is expecting will also be received, there can be no assurance that these events will happen; if one or both of these do not occur or the Companys business strategy is not successful in addressing its current financial issues, substantial doubt exists about the Companys ability to continue as a going concern. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Accounting Policies | 2. Accounting Policies 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 Companys interest in MeOH Power, Inc. has been determined to be $0 as of December 31, 2015 and December 31, 2014, based on MeOH Power, Inc.s net position and expected cash flows. As of December 31, 2015, the Company retained its equity ownership of approximately 47.5% of MeOH Power, Inc.s outstanding common stock, or 75,049,937 shares, and 55.5% of the common stock and warrants issued, which includes 31,904,136 warrants outstanding. Use of Estimates The consolidated financial statements of the Company have been prepared in accordance with United States of America Generally Accepted Accounting Principles (U.S. GAAP), which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments The Companys financial instruments consist of cash, accounts receivable and accounts payable. The estimated fair values of these financial instruments approximate their carrying values at December 31, 2015 and 2014. The estimated fair values have been determined through information obtained from market sources, where available. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are stated at the invoiced amount billed to customers and do not bear interest. An allowance for doubtful accounts, if necessary, represents the Companys best estimate of the amount of probable credit losses in its existing accounts receivable. The Company determines the allowance based on historical write-off experience and current exposures identified. The Company reviews its allowance for doubtful accounts monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis by type of receivable. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. The Company does not have any off-balance-sheet credit exposure related to its customers. Inventories Inventories are valued at the lower of cost (first-in, first-out) or market. The Company provides estimated inventory allowances for excess, slow moving and obsolete inventory as well as inventory whose carrying value is in excess of net realizable value. Property, Plant, and Equipment Property, plant and equipment are stated at cost and depreciated using the straight-line method over their estimated useful lives as follows: Leasehold improvements Lesser of the life of the lease or the useful life of the improvement Computers and related software 3 to 5 years Machinery and equipment 3 to 10 years Office furniture, equipment and fixtures 2 to 10 years Significant additions or improvements extending assets useful lives are capitalized; normal maintenance and repair costs are expensed as incurred. The costs of fully depreciated assets remaining in use are included in the respective asset and accumulated depreciation accounts. When items are sold or retired, related gains or losses are included in net (loss) income. Income Taxes Deferred tax assets and liabilities are recognized for temporary differences between financial statement and income tax bases of assets and liabilities, loss carryforwards, and tax credit carryforwards, for which income tax benefits are expected to be realized in future years. A valuation allowance has been established to reduce deferred tax assets, if it is more likely than not that all, or some portion, of such deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in the period which includes the enactment date. The Company accounts for uncertain tax positions in accordance with accounting standards that address income taxes. The Company must recognize in its financial statements the impact of a tax position, if that position is more likely than not to be sustained on an audit, based on the technical merits of the position. Equity Method Investments The Companys consolidated net income (loss) will include our proportionate share, if any, of the net income or loss of our equity method investee. When the Company records its proportionate share of net income, it increases equity income (loss), net in our consolidated statements of operations and our carrying value in that investment. Conversely, when the Company records its proportionate share of a net loss, it decreases equity income (loss), net in our consolidated statements of operations and our carrying value in that investment. The Companys proportionate share of the net income or loss of our equity method investee includes significant operating and non-operating items recorded by our equity method investee. These items can have a significant impact on the amount of equity income (loss), net in our consolidated statements of operations and our carrying value in that investment. The carrying value of our equity method investment is also impacted by our proportionate share of items impacting the equity investees accumulated other comprehensive income, if any. When the Companys carrying value in an equity method investee company has been reduced to zero, no further losses are recorded in the Companys financial statements unless the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously recognized. Fair Value Measurement The estimated fair value of certain financial instruments, including cash and short-term debt approximates their carrying value due to their short maturities and varying interest rates. Fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation methods, the Company is required to provide the following information according to the fair value accounting standards. These standards established a fair value hierarchy as specified that ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities are classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities, which includes listed equities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. These items are typically priced using models or other valuation techniques. These models are primarily financial industry-standard models that consider various assumptions, including the time value of money, yield curves, volatility factors, as well as other relevant economic measures. Level 3: These use unobservable inputs that are not corroborated by market data. These values are generally estimated based upon methodologies utilizing significant inputs that are generally less observable from objective sources. Revenue Recognition The Company applies the accounting guidance for revenue recognition in the evaluation of its contracts to determine when to properly recognize revenue. The following outlines the various types of revenue and the determination of the recognition of income for each category: Product Revenue Product revenue is recognized when there is persuasive evidence of an arrangement, the collection of a fixed fee is probable or determinable, and delivery of the product to the customer or distributor has occurred, at which time title generally is passed to the customer or distributor. All of these generally occur upon shipment of the product. If the product requires installation to be performed by the Company, all revenue related to the product is deferred and recognized upon the completion of the installation. If the product requires specific customer acceptance, revenue is deferred until customer acceptance occurs or the acceptance provisions lapse, unless the Company can objectively and reliably demonstrate that the criteria specified in the acceptance provisions is satisfied. MTI Instruments currently has distributor agreements in place for the international sale of general instrument and semiconductor products in certain global regions. Such agreements grant a distributor the right of first refusal to act as distributor for such products in the distributors territory. In return, the distributor agrees to not market other products which are considered by MTI Instruments to be in direct competition with MTI Instruments products. The distributor is allowed to purchase MTI Instruments equipment at a price which is discounted off the published domestic/international list prices. Such list prices can be adjusted by MTI Instruments during the term of the distributor agreement. Generally, payment terms with the distributor are standard net 30 days; however, on occasion, extended payment terms have been granted. Title and risk of loss of the product passes to the distributor upon delivery to the independent carrier (standard free-on-board factory), and the distributor is responsible for any required training and/or service with the end-user. The sale (and subsequent payment) between MTI Instruments and the distributor is not contingent upon the successful resale of the product by the distributor. Distributor sales are covered by MTI Instruments standard one-year warranty and there are no special return policies for distributors. Some of MTI Instruments direct sales, particularly sales of semi-automatic semiconductor metrology equipment, or rack-mounted vibration systems, involve on-site customer acceptance and/or installation. In those instances, revenue recognition does not take place at time of shipment. Instead, MTI Instruments recognizes the sale after the unit is installed and/or an on-site acceptance is given by the customer. Agreed-upon acceptance terms and conditions, if any, are negotiated at the time of purchase. Cost of Product Revenue Cost of product revenue includes material, labor, overhead and shipping and handling costs. Deferred Revenue Deferred revenue consists of billings to customers in advance of services performed, completed installation or customer acceptance. As of December 31, 2015 and 2014, the Company had no deferred revenue. Warranty The Company accrues a warranty liability at the time product revenue is recorded based on historical experience. The liability is reviewed during the year and is adjusted, if appropriate, to reflect new product offerings or changes in experience. Actual warranty claims are tracked by product line. Warranty liability was $16 thousand and $18 thousand at December 31, 2015 and 2014, respectively. Warranty expense was $13 thousand and $9 thousand for 2015 and 2014, respectively. Long-Lived Assets The Company accounts for impairment or disposal of long-lived assets in accordance with accounting standards that address the financial accounting and reporting for the impairment or disposal of long-lived assets, specify how impairment will be measured, and how impaired assets will be classified in the consolidated financial statements. On a quarterly basis, the Company analyzes the status of its long-lived assets at each subsidiary for potential impairment. As of December 31, 2015, the Company does not believe that any of its long-lived assets have suffered any type of impairment that would require an adjustment to that assets recorded value. Cash and Cash Equivalents Cash and cash equivalents consist of cash and highly liquid short-term investments with original maturities of less than three months. Net Income (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 Companys 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. Share-Based Payments The Company accounts for stock based awards exchanged for employee service in accordance with the share-based payment accounting guidance. The Company has five share-based employee compensation plans, all of which are described more fully in Note 11, Stock Based Compensation. Stock-based compensation represents the cost related to stock-based awards granted to employees and directors. The Company measures stock-based compensation cost at grant date based on the estimated fair value of the award, and recognizes the cost as expense on a straight-line basis in accordance with the vesting of the options (net of estimated forfeitures) over the options requisite service period. The Company estimates the fair value of stock-based awards using a Black Scholes valuation model. Stock-based compensation expense is recorded in the lines titled Cost of product revenue, Selling, general and administrative expenses and Research and product development expenses in the Consolidated Statements of Operations based on the employees respective functions. The Company records deferred tax assets for awards that potentially can result in deductions on the Companys income tax returns based on the amount of compensation cost that would be recognized upon issuance of the award and the Companys statutory tax rate. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the Companys income tax return are recorded in Additional Paid-In Capital (if the tax deduction exceeds the deferred tax asset) or in the Consolidated Statement of Operations (if the deferred tax asset exceeds the tax deduction and no historical pool of windfall tax benefits exists). Since the adoption of the revised accounting standard on share-based payments, no tax benefits have been recognized related to share-based compensation since the Company has established a full valuation allowance to offset all potential tax benefits associated with these deferred tax assets. Concentration of Credit Risk Financial instruments that subject the Company to concentrations of credit risk principally consist of cash equivalents and trade accounts receivable. The Companys trade accounts receivable are primarily from sales to commercial customers, the U.S. government and state agencies. The Company does not require collateral and has not historically experienced significant credit losses related to receivables from individual customers or groups of customers in any particular industry or geographic area. In 2015 and 2014, approximately 34.6% and 35.6%, respectively, of our product revenues was from customers outside of the United States. The Company has cash deposits in excess of federally insured limits, but does not believe them to be at risk. Research and Development Costs The Company expenses research and development costs as incurred. The Company incurred research and development costs of approximately $1.5 million and $1.3 million, which was entirely related to MTI Instruments, for the years ended December 31, 2015 and 2014, respectively. Advertising Costs The Company expenses advertising costs as incurred. The Company incurred advertising costs of approximately $127 and $121 thousand, which was entirely related to MTI Instruments, for the years ended December 31, 2015 and 2014, respectively. Other Comprehensive Income The Company had no other comprehensive income (loss) items for the years ended December 31, 2015 and 2014. Effect of Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09 (Revenue from Contracts with Customers ) In August 2014, the FASB issued ASU 2014-15 (Presentation of Financial Statements Going Concern ) In February 2015, the FASB issued ASU 2015-02 (Consolidation (Topic 810): Amendments to the Consolidation Analysis) that changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This standard will be effective for the Company beginning in the first quarter of 2017, and early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11 (Inventory (Topic 330): Simplifying the Measurement of Inventory) which applies to inventory that is measured using first-in, first-out (FIFO) or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out (LIFO). This standard will be effective for the Company for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17 (Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes) as part of its ongoing simplification initiative, with the objective of reducing complexity in accounting standards. The amendments in this standard require entities that present a classified balance sheet to classify all deferred tax liabilities and assets as a noncurrent amount. This guidance does not change the offsetting requirements for deferred tax liabilities and assets, which results in the presentation of one amount on the balance sheet. Additionally, the amendments in this standard align the deferred income tax presentation with the requirements in International Accounting Standards (IAS) 1 (Presentation of Financial Statements.) This standard will be effective for the Company for annual and interim reporting periods beginning on or after December 15, 2016. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01 (Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities) the main objective of which is to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information and address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This standard will be effective for the Company for annual and interim reporting periods beginning on or after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 (Leases (Topic 842)) the main objective requires lessees to put most leases on their balance sheet but recognize expenses on their income statement in a manner similar to current accounting requirements. This standard will be effective for the Company for annual and interim reporting periods beginning on or after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | 3. Accounts Receivable Accounts receivables consist of the following at December 31: (dollars in thousands) 2015 2014 U.S. and State Government $ 15 $ 3 Commercial 972 1,193 Allowance for doubtful accounts (56 ) Total $ 931 $ 1,196 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories consist of the following at December 31: (dollars in thousands) 2015 2014 Finished goods $ 412 $ 314 Work in process 240 161 Raw materials 354 298 Total $ 1,006 $ 773 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 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 December 31: (dollars in thousands) 2015 2014 Leasehold improvements $ 39 $ 39 Computers and related software 1,052 1,035 Machinery and equipment 853 817 Office furniture and fixtures 61 61 2,005 1,952 Less: Accumulated depreciation 1,890 1,812 $ 115 $ 140 Depreciation expense was $80 thousand and $83 thousand for 2015 and 2014, respectively. Repairs and maintenance expense was $13 thousand and $22 thousand for 2015 and 2014, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes Income tax (expense) benefit for each of the years ended December 31 consists of the following: (dollars in thousands) 2015 2014 Federal $ (20 ) $ (2 ) State (5 ) 207 Deferred (1,335 ) (165 ) Total $ (1,360 ) $ 40 The significant components of deferred income tax (expense) benefit from operations for each of the years ended December 31 consists of the following: (dollars in thousands) 2015 2014 Deferred tax benefit (expense) $ 50 $ (46 ) Net operating loss carry forward 370 (234 ) Valuation allowance (1,755 ) 115 $ (1,335 ) $ (165 ) The Companys effective income tax rate from operations differed from the Federal statutory rate for each of the years ended December 31 as follows: 2015 2014 Federal statutory tax rate (34 )% 34 % Change in valuation allowance 119 (16 ) State research and development credits (30 ) Expiration of stock option 1 5 Prior year tax adjustments and other 5 Other, net 1 1 Tax Rate 92 % (6 )% Pre-tax (loss) income was $(1.5) million and $700 thousand for 2015 and 2014, respectively. The Company decided to re-establish a full valuation allowance at December 31, 2015 for its deferred tax asset. This decision was based upon actual results differing from estimates used as a basis for the previous partial valuation of the deferred tax asset. Although the Company expects to generate levels of pre-tax earnings in the future, it believes that it is appropriate to have a full valuation allowance on its deferred tax asset at this time. As a result, the Company incurred a one-time, $1.3 million, non-cash expense in 2015 to eliminate the partial valuation allowance which was established in 2011. We will continue to evaluate the ability to realize our deferred tax assets and related valuation allowance on a quarterly basis. The Company was entitled to a research tax credit for qualifying amounts paid or incurred on or before December 31, 2011, for which the Company made the appropriate filings in 2013. Given the uncertain nature of the tax benefit, the Company did not take a tax position with regards to these credits. During 2014, the Company determined that realization of this asset was more likely than not and recognized a tax benefit of $210 thousand for qualifying amounts incurred in 2009. Deferred Tax Assets: Deferred tax assets are determined based on the temporary differences between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates. Temporary differences, net operating loss carryforwards and tax credit carryforwards that give rise to deferred tax assets and liabilities are summarized as follows as of December 31: (dollars in thousands) 2015 2014 Current deferred tax assets: Inventory valuation $ 99 $ 69 Inventory capitalization 4 Vacation pay 29 32 Warranty and other sale obligations 5 6 Allowance for accounts receivable 19 Allowance for related party note receivable 92 88 Other reserves and accruals 26 66 270 265 Valuation allowance current (270 ) (245 ) Net current deferred tax assets $ $ 20 (dollars in thousands) 2015 2014 Noncurrent deferred tax assets: Net operating loss $ 17,583 $ 17,216 Property, plant and equipment 3 (2 ) Stock options 120 77 Research and development tax credit 450 450 Alternative minimum tax credit 54 54 18,210 17,795 Valuation allowance noncurrent (18,210 ) (16,480 ) Non-current net deferred tax assets $ $ 1,315 As of December 31, 2015, the Company has approximately $450 thousand of research and development tax credit carry forwards, which begin to expire in 2018, and approximately $54 thousand of alternative minimum tax credit carry forwards, which have no expiration date. Valuation Allowance: 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 Companys 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. Although it expects to generate levels of pre-tax earnings in the future, the Company has decided at this time to re-establish a full valuation allowance at December 31, 2015 for its deferred tax asset. This decision was based upon actual results differing from estimates used as a basis for the previous partial valuation of the deferred tax asset. We will continue to evaluate the ability to realize our deferred tax assets and related valuation allowance on a quarterly basis. The valuation allowance at December 31, 2015 and 2014 was $18.5 million and $16.7 million, respectively. Activity in the valuation allowance for deferred tax assets is as follows as of December 31: (dollars in thousands) 2015 2014 Valuation allowance, beginning of year $ 16,725 $ 16,840 Increase resulting in income tax expense 1,335 Allowance for accounts receivable 19 Allowance for related party note receivable 3 (42 ) Inventory 25 5 Net operating income (loss) 373 (72 ) Property, plant and equipment 6 (2 ) Stock options 43 (6 ) Other reserves and accruals (49 ) 2 Valuation allowance, end of year $ 18,480 $ 16,725 Net operating losses : At December 31, 2015, the Company has unused Federal net operating loss carryforwards of approximately $52.3 million. Of these, $1.1 million will expire in 2020, with the remainder expiring through 2035. Of the Companys carryforwards, $1.3 million represents windfall tax benefits from stock option transactions, the tax effect of which are not included in the Companys net deferred tax assets. The Company's and/or its subsidiaries ability to utilize their net operating loss carryforwards may be significantly limited by Section 382 of the IRC of 1986, as amended, if the Company or any of its subsidiaries undergoes an ownership change as a result of changes in the ownership of the Company's or its subsidiaries outstanding stock pursuant to the exercise of the warrants or otherwise. Unrecognized tax benefits: The unrecognized tax benefits in accordance with accounting standards that address income taxes at December 31, 2015 and 2014 was $1.2 million. These unrecognized tax benefits relate to former subsidiaries of the Company and a prior investment in a partnership. In future periods, if $1.2 million of these unrecognized benefits become supportable, the Company may not recognize a change in its effective tax rate as long as it remains in a partial valuation allowance position. Additionally, the Company does not have uncertain tax positions that it expects will increase or decrease within twelve months of this reporting date. The Company recognizes interest and penalties related to uncertain tax positions as a component of tax expense. The Company did not recognize any interest or penalties in 2015 and 2014. The Company files income tax returns, including returns for its subsidiaries, with federal and state jurisdictions. The Company is no longer subject to IRS or NYS examinations for its federal and state returns for any periods prior to 2009, although carryforward attributes that were generated prior to 2009 may still be adjusted upon examination by the IRS if they either have been or will be used in a future period. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consist of the following at December 31: (dollars in thousands) 2015 2014 Salaries, wages and related expenses $ 237 $ 349 Liability to shareholders for previous acquisition 363 363 Legal and professional fees 86 96 Warranty and other sale obligations 16 18 Commissions 36 37 Other 169 182 $ 907 $ 1,045 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders Equity Common Stock The Company has one class of common stock, par value $.01. Each share of the Companys common stock is entitled to one vote on all matters submitted to stockholders. As of December 31, 2015 and 2014 there were 5,258,883 shares of common stock issued and outstanding. Reservation of Shares The Company has reserved common shares for future issuance as follows as of December 31, 2015: Stock options outstanding 926,565 Common stock available for future equity awards or issuance of options 280,436 Number of common shares reserved 1,207,001 |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plan | 9. Retirement Plan The Company maintains a voluntary savings and retirement plan under IRC Section 401(k) covering substantially all employees. Employees must complete six months of service and have attained the age of twenty-one prior to becoming eligible for participation in the plan. The Company plan allows eligible employees to contribute a percentage of their compensation on a pre-tax basis and the Company matches employee contributions dollar for dollar up to a discretionary amount, currently 4%, of the employees salary, subject to annual tax deduction limitations. Company matching contributions vest at a rate of 25% annually for each year of service completed. Company matching contributions were $119 thousand and $83 thousand for 2015 and 2014, respectively. The Company may also make additional discretionary contributions in amounts as determined by management and the Board of Directors. There were no additional discretionary contributions by the Company for the years 2015 or 2014. |
(Loss) Income per Share
(Loss) Income per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
(Loss) Income per Share | 10. (Loss) Income per Share The following table sets forth the reconciliation of the numerators and denominators of the basic and diluted per share computations for continuing operations for the years ended December 31: (dollars in thousands, except shares) 2015 2014 Numerator: Net (loss) income $ (2,832 ) $ 740 Denominator: Basic EPS: Common shares outstanding, beginning of period 5,258,883 5,256,883 Weighted average common shares issued during the period 477 Denominator for basic earnings per common shares Weighted average common shares 5,258,883 5,257,360 Diluted EPS: Common shares outstanding, beginning of period 5,258,883 5,256,883 Common stock equivalents options 206,643 Weighted average common shares issued during the period 477 Denominator for diluted earnings per common shares - Weighted average common shares 5,258,883 5,464,003 Not included in the computation of earnings per share-assuming dilution for the year ended December 31, 2015 were options to purchase 926,565 shares of the Companys 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 year ended December 31, 2014 were options to purchase 383,158 shares of the Companys common stock. These potentially dilutive items were excluded even though the average market price of the common stock exceeded the exercise prices for a portion of the options because the calculation of incremental shares resulted in an anti-dilutive effect. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | 11. Stock Based Compensation Stock-based incentive awards are provided to employees and directors under the terms of the Companys 1996 Stock Incentive Plan (1996 Plan), 1999 Employee Stock Incentive Plan (1999 Plan), 2006 Equity Incentive Plan (2006 Plan), which was amended and restated effective June 30, 2011 and September 16, 2009, 2012 Equity Incentive Plan (the 2012 Plan) and 2014 Equity Incentive Plan (the 2014 Plan), (collectively, the Plans). Awards under the Plans have generally included at-the-money options and restricted stock grants. Stock options are awards which allow holders to purchase shares of the Companys common stock at a fixed price. Stock options issued to employees generally vest 50% immediately, and then quarterly over the next three years. Options issued to non-employee members of the MTI Board of Directors generally vest upon grant. Certain options granted may be fully or partially exercisable immediately, may vest on other than a four year schedule or vest upon attainment of specific performance criteria. Restricted stock awards generally vest one year after the date of grant; however, certain awards may vest immediately or vest upon attainment of specific performance criteria. Option exercise prices are generally equivalent to the closing market price of the Companys common stock on the date of grant. Unexercised options generally terminate either seven or ten years after date of grant. The 1996 Plan was approved by stockholders during December 1996 and expired during October 2006. The 1996 Plan provided an initial aggregate number of 500,000 shares of common stock to be awarded or issued. The number of shares available to be awarded under the 1996 Plan and awards outstanding were adjusted for stock splits and rights offerings. The total number of shares which may be awarded under the 1996 Plan was 468,352 during 2005. Under the 1996 Plan, the Board of Directors was authorized to issue stock options, stock appreciation rights, restricted stock, and other stock-based incentives to officers, employees and others. The 1999 Plan was adopted by the Companys Board of Directors, approved by stockholders on March 18, 1999 and expired during 2009. The 1999 Plan provided an initial aggregate number of 1,000,000 shares of common stock to be awarded or issued. The number of shares to be awarded under the 1999 Plan and awards outstanding were adjusted for stock splits, and during 2005, 2006, and 2007, the total number of shares which could be awarded under the 1999 Plan was 562,500 shares. Under the 1999 Plan, the Board of Directors was authorized to issue stock-based awards to officers, employees and others. The 2006 Plan was adopted by the Companys Board of Directors on March 16, 2006 and approved by stockholders on May 18, 2006. The plan was amended and restated by the Board of Directors effective September 16, 2009 and June 30, 2011. The September 16, 2009 Amended and Restated 2006 Equity Incentive Plan increased the initial aggregate number of 250,000 shares of common stock which may be awarded or issued to 600,000, and the June 30, 2011 Amended and Restated 2006 Equity Incentive Plan increased the aggregate number of shares of common stock which may be awarded or issued to 1,200,000. The number of shares which may be awarded under the 2006 Plan and awards outstanding has been adjusted for stock splits and other similar events. Under the 2006 Plan, the Board of Directors is authorized to issue stock options, stock appreciation rights, restricted stock, and other stock-based incentives to officers, employees and others. In connection with seeking stockholder approval of the 2012 Plan, the Company agreed not to make further awards under the 2006 Plan. The 2012 Plan was adopted by the Companys Board of Directors on April 14, 2012 and approved by its 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 may 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. The 2014 Plan was adopted by the Companys 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. During 2015, the Company granted 140,000 options to purchase the Companys 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 Companys common stock on the date 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 Companys 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 Companys common stock on the date 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 Companys 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 Companys common stock on the date 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. Stock-based compensation expense for the years ended December 31, 2015 and 2014 was generated from stock option awards. Stock options are awards which allow holders to purchase shares of the Companys common stock at a fixed price. Under the 2014 and 2012 Plans, stock options issued to employees generally vest 25% over four years. Options issued to non-employee members of the MTI Board of Directors generally vest 25% over four years. Certain options granted may be fully or partially exercisable immediately, may vest on other than a four year schedule or vest upon attainment of specific performance criteria. Restricted stock awards generally vest one year after the date of grant; however, certain awards may vest immediately or vest upon attainment of specific performance criteria. Option exercise prices are generally equivalent to the closing market value price of the Companys common stock on the date of grant. Unexercised options generally terminate ten years after date of grant. The Company estimates the fair value of stock options using a Black-Scholes valuation model. Key inputs and assumptions used to estimate the fair value of stock options include the grant price of the award, the expected option term, volatility of the Companys stock, an appropriate risk-free rate, and the Companys dividend yield. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company. The Companys estimate of an expected option term was calculated in accordance with the simplified method for calculating the expected term assumption. The following table presents the weighted-average assumptions used for options granted under the 2014 Plan: 2015 2014 Option term (years) 4.25 6.25 Volatility 191.97 % 193.96 % Risk-free interest rate 1.57 % 1.91 % Dividend yield 0 % 0 % Weighted-average fair value per option granted $ 1.14 $ 0.84 The following table presents the weighted-average assumptions used for options granted under the 2012 Plan: 2014 Option term (years) 6.29 Volatility 202.37 % Risk-free interest rate 1.59 % Dividend yield 0 % Weighted-average fair value per option granted $ 1.07 Share-based compensation expense recognized in the Consolidated Statements of Operations is based on awards ultimately expected to vest, therefore, awards are reduced for estimated forfeitures. The revised accounting standard requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Total share-based compensation expense, related to all of the Companys share-based awards, recognized for the years ended December 31, was comprised as follows: 2015 2014 (dollars in thousands, except eps) Cost of product revenue $ 2 $ 2 Research and product development 9 6 Selling, general and administrative 130 77 Share-based compensation expense $ 141 $ 85 Impact on basic and diluted EPS $ 0.03 $ 0.016 Total unrecognized compensation costs related to non-vested awards as of December 31, 2015 and December 31, 2014 is $307 thousand and $295 thousand, respectively, and is expected to be recognized over a weighted-average remaining vesting period of approximately 2.56 years and 2.71 years, respectively. Presented below is a summary of the Companys stock option plans activity for the years ended December 31: 2015 2014 Shares under option, beginning 802,908 585,382 Granted 140,000 242,000 Exercised (2,000 ) Forfeited (11,061 ) (5,750 ) Expired/canceled (5,282 ) (16,724 ) Shares under option, ending 926,565 802,908 Options exercisable 456,400 291,455 Remaining shares available for granting of options 280,436 406,500 The weighted average exercise price for the Plans is as follows for each of the years ended December 31: 2015 2014 Shares under option, beginning $ 0.72 $ 0.99 Granted $ 1.20 $ 0.98 Exercised $ $ 0.46 Forfeited $ 0.72 $ 0.47 Expired/canceled $ 4.54 $ 14.05 Shares under option, ending $ 0.77 $ 0.72 Options exercisable, ending $ 0.63 $ 0.68 The following table summarizes information for options outstanding and exercisable for the Plans as of December 31, 2015: Outstanding Options Options Exercisable Weighted Average Weighted Weighted Exercise Remaining Average Average Price Range Number Contractual Life Exercise Price Number Exercise Price $0.00 - $1.15 766,564 7.26 $ 0.66 436,399 $ 0.56 $1.16 - $3.60 159,000 8.54 $ 1.22 19,000 $ 1.40 $14.25 - $22.64 1,001 0.70 $ 16.14 1,001 $ 16.14 926,565 7.48 $ 0.77 456,400 $ 0.63 The aggregate intrinsic value (i.e. the difference between the closing stock price and the price to be paid by the option holder to exercise the option) is $237 thousand for the Companys outstanding options and $171 thousand for the exercisable options as of December 31, 2015. The amounts are based on the Companys closing stock price of $0.94 as of December 31, 2015. There were no unvested restricted stock grants for the year ended December 31, 2015 and 2014. Non-vested options activity is as follows for the year ended December 31: 2015 Options 2015 Weighted Average Exercise Price Non-vested options balance, beginning January 1 511,453 $0.74 Non-vested options granted 140,000 $1.20 Vested options (170,227 ) $0.67 Non-vested options forfeited (11,061 ) $0.72 Non-vested options balance, ending December 31 470,165 $0.91 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Contingencies: Legal We are subject to legal proceedings, claims and liabilities which arise in the ordinary course of business. When applicable, 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. 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 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 December 31, 2015 are (dollars in thousands): $225 in 2016, $227 in 2017, $221 in 2018 and $207 in 2019. Rent expense under all leases was $231 thousand and $280 thousand for 2015 and 2014, respectively. 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 December 31, 2015, the Companys potential minimum obligation to this employee was approximately $66 thousand. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions MeOH Power, Inc. As of December 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 55.5% 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 December 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 Companys 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 December 31, 2015 and December 31, 2014, $266 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. |
Geographic and Segment Informat
Geographic and Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Geographic and Segment Information | 14. Geographic and Segment Information The Company sells its products on a worldwide basis with its principal markets listed in the table below where information on product revenue is summarized by geographic area for the Company as a whole for each of the years ended December 31: (dollars in thousands) 2015 2014 Product revenue: United States $ 4,139 $ 5,653 ASEAN 1,421 2,529 EMEA 650 496 North America 106 76 South America 14 27 Total product revenue $ 6,330 $ 8,781 Revenues are attributed to regions based on the location of customers. In 2015 and 2014, approximately 34.6% and 35.6%, respectively, of our product revenues was from customers outside of the United States. Long-lived assets of $115 thousand and $140 thousand at December 31, 2015 and 2014, respectively consist of property, plant and equipment all located within the United States. At MTI Instruments, the largest commercial customer in 2015 was an Asian distributor of our general instrumentation products As of January 1, 2014, the Company operates in one segment and therefore segment information is not presented. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt | |
Debt | 15. Debt On June 16, 2015, the Company entered into a Loan Agreement (the Loan) with Bank of America, N.A. (the Bank) to replace its previous line of credit with the Bank. The Loan contains three different line of credit facilities for use in future capital requirements and strategic initiatives. All the credit facilities under the Loan are available until July 31, 2016 and may be renewed subject to all the terms and conditions as set forth in the Loan. Except as otherwise stated in the Loan, all interest and fees, if any, will be computed on the basis of a 360-day year and the actual number of days elapsed. The Loan is secured by equipment and fixtures, inventory and receivables owned by the Company and guaranteed by MTI Instruments. The Loan requires the Company to provide specified financial information within 120 days of its fiscal year end and maintain on a consolidated basis a Debt Service Coverage Ratio of at least 1.25 to 1.0 on an annual basis. The Company is also subject to other restrictions as set forth in the Loan. The Company may borrow under the Facility No. 1 Commitment revolving line of credit from time to time up to $1 million for working capital needs. This facility is similar to the line of credit that was entered into in May 2014. The Facility No. 1 Commitment is payable no later than the expiration date of the Loan and interest is payable on the last day of each month beginning on June 30, 2015 and until payment has been made in full. The interest rate on funds borrowed under the Facility No. 1 Commitment is equal to the LIBOR Daily Floating Rate plus 2.50%. The Company may borrow under the Facility No. 2 Commitment non-revolving line of credit from time to time up to $1 million for stock repurchases. Any amount borrowed under the Facility No. 2 Commitment permanently reduces the amount remaining available to borrow under this line of credit. Any principal borrowed under the Facility No. 2 Commitment is payable in equal installments beginning on August 31, 2016, and on the same day of each month thereafter, and ending on July 31, 2021 (the Repayment Period) and may be prepaid in full or in part at any time. The interest rate on funds borrowed under the Facility No. 2 Commitment is equal to the LIBOR Rate (Adjusted Periodically) plus 2.50% and will be adjusted on the first day of the month of every month (the Adjustment Date) and remain fixed until the next Adjustment Date. This facility provides for payment of any accrued interest on June 30, 2015, and then on the last day of each month thereafter until payment in full of any principal outstanding under this facility. Each prepayment of an amount bearing interest must be accompanied by the amount of accrued interest on the amount prepaid and a prepayment fee. During the Repayment Period, the Company has a one-time option to convert the interest rate on the loan from the rate specified above to a fixed rate, provided no event of default exists. The Company may borrow under the Facility No. 3 Commitment non-revolving line of credit from time to time up to $500 thousand for capital equipment needs. Any amount borrowed under the Facility No. 3 Commitment permanently reduces the amount remaining available to borrow under this line of credit. Any principal borrowed under the Facility No. 3 Commitment is payable in equal installments beginning on August 31, 2016, and on the same day of each month thereafter, and ending on July 31, 2021 (the Repayment Period) and may be prepaid in full or in part at any time. The interest rate on funds borrowed under the Facility No. 3 Commitment is equal to the LIBOR Rate (Adjusted Periodically) plus 2.50% and will be adjusted on the first day of the month of every month (the Adjustment Date) and remain fixed until the next Adjustment Date. This facility provides for payment of any accrued interest on June 30, 2015, and then on the last day of each month thereafter until payment in full of any principal outstanding under this facility. Each prepayment of an amount bearing interest must be accompanied by the amount of accrued interest on the amount prepaid and a prepayment fee. During the Repayment Period, the Company has a one-time option to convert the interest rate on the loan from the rate specified above to a fixed rate, provided no event of default exists. As of December 31, 2015, there were no amounts outstanding under these credit facilities. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Event | |
Subsequent Event | 16. Subsequent Event During the first quarter of 2016, we entered into discussions with the Bank to strengthen the lines of credit and re-align their terms to be more consistent with our current business plan. During such discussions, the Bank informed the Company that based on its results for 2015 it was not in compliance with certain financial covenants of the Loan. Since an agreement on new covenants could not be reached, the Company decided that the lines of credit could not be utilized and therefore were terminated by the Company on March 24, 2016. There were no amounts outstanding under the credit facilities at the time of cancellation. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
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 Companys interest in MeOH Power, Inc. has been determined to be $0 as of December 31, 2015 and December 31, 2014, based on MeOH Power, Inc.s net position and expected cash flows. As of December 31, 2015, the Company retained its equity ownership of approximately 47.5% of MeOH Power, Inc.s outstanding common stock, or 75,049,937 shares, and 55.5% of the common stock and warrants issued, which includes 31,904,136 warrants outstanding. |
Use of Estimates | Use of Estimates The consolidated financial statements of the Company have been prepared in accordance with United States of America Generally Accepted Accounting Principles (U.S. GAAP), which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Companys financial instruments consist of cash, accounts receivable and accounts payable. The estimated fair values of these financial instruments approximate their carrying values at December 31, 2015 and 2014. The estimated fair values have been determined through information obtained from market sources, where available. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are stated at the invoiced amount billed to customers and do not bear interest. An allowance for doubtful accounts, if necessary, represents the Companys best estimate of the amount of probable credit losses in its existing accounts receivable. The Company determines the allowance based on historical write-off experience and current exposures identified. The Company reviews its allowance for doubtful accounts monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis by type of receivable. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. The Company does not have any off-balance-sheet credit exposure related to its customers. |
Inventories | Inventories Inventories are valued at the lower of cost (first-in, first-out) or market. The Company provides estimated inventory allowances for excess, slow moving and obsolete inventory as well as inventory whose carrying value is in excess of net realizable value. |
Property, Plant and Equipment | Property, Plant, and Equipment Property, plant and equipment are stated at cost and depreciated using the straight-line method over their estimated useful lives as follows: Leasehold improvements Lesser of the life of the lease or the useful life of the improvement Computers and related software 3 to 5 years Machinery and equipment 3 to 10 years Office furniture, equipment and fixtures 2 to 10 years Significant additions or improvements extending assets useful lives are capitalized; normal maintenance and repair costs are expensed as incurred. The costs of fully depreciated assets remaining in use are included in the respective asset and accumulated depreciation accounts. When items are sold or retired, related gains or losses are included in net (loss) income. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for temporary differences between financial statement and income tax bases of assets and liabilities, loss carryforwards, and tax credit carryforwards, for which income tax benefits are expected to be realized in future years. A valuation allowance has been established to reduce deferred tax assets, if it is more likely than not that all, or some portion, of such deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in the period which includes the enactment date. The Company accounts for uncertain tax positions in accordance with accounting standards that address income taxes. The Company must recognize in its financial statements the impact of a tax position, if that position is more likely than not to be sustained on an audit, based on the technical merits of the position. |
Equity Method Investments | Equity Method Investments The Companys consolidated net income (loss) will include our proportionate share, if any, of the net income or loss of our equity method investee. When the Company records its proportionate share of net income, it increases equity income (loss), net in our consolidated statements of operations and our carrying value in that investment. Conversely, when the Company records its proportionate share of a net loss, it decreases equity income (loss), net in our consolidated statements of operations and our carrying value in that investment. The Companys proportionate share of the net income or loss of our equity method investee includes significant operating and non-operating items recorded by our equity method investee. These items can have a significant impact on the amount of equity income (loss), net in our consolidated statements of operations and our carrying value in that investment. The carrying value of our equity method investment is also impacted by our proportionate share of items impacting the equity investees accumulated other comprehensive income, if any. When the Companys carrying value in an equity method investee company has been reduced to zero, no further losses are recorded in the Companys financial statements unless the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously recognized. |
Fair Value Measurement | Fair Value Measurement The estimated fair value of certain financial instruments, including cash and short-term debt approximates their carrying value due to their short maturities and varying interest rates. Fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation methods, the Company is required to provide the following information according to the fair value accounting standards. These standards established a fair value hierarchy as specified that ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities are classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities, which includes listed equities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. These items are typically priced using models or other valuation techniques. These models are primarily financial industry-standard models that consider various assumptions, including the time value of money, yield curves, volatility factors, as well as other relevant economic measures. Level 3: These use unobservable inputs that are not corroborated by market data. These values are generally estimated based upon methodologies utilizing significant inputs that are generally less observable from objective sources. |
Revenue Recognition | Revenue Recognition The Company applies the accounting guidance for revenue recognition in the evaluation of its contracts to determine when to properly recognize revenue. The following outlines the various types of revenue and the determination of the recognition of income for each category: |
Product Revenue | Product Revenue Product revenue is recognized when there is persuasive evidence of an arrangement, the collection of a fixed fee is probable or determinable, and delivery of the product to the customer or distributor has occurred, at which time title generally is passed to the customer or distributor. All of these generally occur upon shipment of the product. If the product requires installation to be performed by the Company, all revenue related to the product is deferred and recognized upon the completion of the installation. If the product requires specific customer acceptance, revenue is deferred until customer acceptance occurs or the acceptance provisions lapse, unless the Company can objectively and reliably demonstrate that the criteria specified in the acceptance provisions is satisfied. MTI Instruments currently has distributor agreements in place for the international sale of general instrument and semiconductor products in certain global regions. Such agreements grant a distributor the right of first refusal to act as distributor for such products in the distributors territory. In return, the distributor agrees to not market other products which are considered by MTI Instruments to be in direct competition with MTI Instruments products. The distributor is allowed to purchase MTI Instruments equipment at a price which is discounted off the published domestic/international list prices. Such list prices can be adjusted by MTI Instruments during the term of the distributor agreement. Generally, payment terms with the distributor are standard net 30 days; however, on occasion, extended payment terms have been granted. Title and risk of loss of the product passes to the distributor upon delivery to the independent carrier (standard free-on-board factory), and the distributor is responsible for any required training and/or service with the end-user. The sale (and subsequent payment) between MTI Instruments and the distributor is not contingent upon the successful resale of the product by the distributor. Distributor sales are covered by MTI Instruments standard one-year warranty and there are no special return policies for distributors. Some of MTI Instruments direct sales, particularly sales of semi-automatic semiconductor metrology equipment, or rack-mounted vibration systems, involve on-site customer acceptance and/or installation. In those instances, revenue recognition does not take place at time of shipment. Instead, MTI Instruments recognizes the sale after the unit is installed and/or an on-site acceptance is given by the customer. Agreed-upon acceptance terms and conditions, if any, are negotiated at the time of purchase. |
Cost of Product Revenue | Cost of Product Revenue Cost of product revenue includes material, labor, overhead and shipping and handling costs. |
Deferred Revenue | Deferred Revenue Deferred revenue consists of billings to customers in advance of services performed, completed installation or customer acceptance. As of December 31, 2015 and 2014, the Company had no deferred revenue. |
Warranty | Warranty The Company accrues a warranty liability at the time product revenue is recorded based on historical experience. The liability is reviewed during the year and is adjusted, if appropriate, to reflect new product offerings or changes in experience. Actual warranty claims are tracked by product line. Warranty liability was $16 thousand and $18 thousand at December 31, 2015 and 2014, respectively. Warranty expense was $13 thousand and $9 thousand for 2015 and 2014, respectively. |
Long-Lived Assets | Long-Lived Assets The Company accounts for impairment or disposal of long-lived assets in accordance with accounting standards that address the financial accounting and reporting for the impairment or disposal of long-lived assets, specify how impairment will be measured, and how impaired assets will be classified in the consolidated financial statements. On a quarterly basis, the Company analyzes the status of its long-lived assets at each subsidiary for potential impairment. As of December 31, 2015, the Company does not believe that any of its long-lived assets have suffered any type of impairment that would require an adjustment to that assets recorded value. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash and highly liquid short-term investments with original maturities of less than three months. |
Net Income (Loss) per Share | Net Income (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 Companys 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. |
Share-Based Payments | Share-Based Payments The Company accounts for stock based awards exchanged for employee service in accordance with the share-based payment accounting guidance. The Company has five share-based employee compensation plans, all of which are described more fully in Note 11, Stock Based Compensation. Stock-based compensation represents the cost related to stock-based awards granted to employees and directors. The Company measures stock-based compensation cost at grant date based on the estimated fair value of the award, and recognizes the cost as expense on a straight-line basis in accordance with the vesting of the options (net of estimated forfeitures) over the options requisite service period. The Company estimates the fair value of stock-based awards using a Black Scholes valuation model. Stock-based compensation expense is recorded in the lines titled Cost of product revenue, Selling, general and administrative expenses and Research and product development expenses in the Consolidated Statements of Operations based on the employees respective functions. The Company records deferred tax assets for awards that potentially can result in deductions on the Companys income tax returns based on the amount of compensation cost that would be recognized upon issuance of the award and the Companys statutory tax rate. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the Companys income tax return are recorded in Additional Paid-In Capital (if the tax deduction exceeds the deferred tax asset) or in the Consolidated Statement of Operations (if the deferred tax asset exceeds the tax deduction and no historical pool of windfall tax benefits exists). Since the adoption of the revised accounting standard on share-based payments, no tax benefits have been recognized related to share-based compensation since the Company has established a full valuation allowance to offset all potential tax benefits associated with these deferred tax assets. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that subject the Company to concentrations of credit risk principally consist of cash equivalents and trade accounts receivable. The Companys trade accounts receivable are primarily from sales to commercial customers, the U.S. government and state agencies. The Company does not require collateral and has not historically experienced significant credit losses related to receivables from individual customers or groups of customers in any particular industry or geographic area. In 2015 and 2014, approximately 34.6% and 35.6%, respectively, of our product revenues was from customers outside of the United States. The Company has cash deposits in excess of federally insured limits, but does not believe them to be at risk. |
Research and Development Costs | Research and Development Costs The Company expenses research and development costs as incurred. The Company incurred research and development costs of approximately $1.5 million and $1.3 million, which was entirely related to MTI Instruments, for the years ended December 31, 2015 and 2014, respectively. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. The Company incurred advertising costs of approximately $127 and $121 thousand, which was entirely related to MTI Instruments, for the years ended December 31, 2015 and 2014, respectively. |
Other Comprehensive Income | Other Comprehensive Income The Company had no other comprehensive income (loss) items for the years ended December 31, 2015 and 2014. |
Effect of Recent Accounting Pronouncements | Effect of Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09 (Revenue from Contracts with Customers ) In August 2014, the FASB issued ASU 2014-15 (Presentation of Financial Statements Going Concern ) In February 2015, the FASB issued ASU 2015-02 (Consolidation (Topic 810): Amendments to the Consolidation Analysis) that changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This standard will be effective for the Company beginning in the first quarter of 2017, and early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11 (Inventory (Topic 330): Simplifying the Measurement of Inventory) which applies to inventory that is measured using first-in, first-out (FIFO) or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out (LIFO). This standard will be effective for the Company for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17 (Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes) as part of its ongoing simplification initiative, with the objective of reducing complexity in accounting standards. The amendments in this standard require entities that present a classified balance sheet to classify all deferred tax liabilities and assets as a noncurrent amount. This guidance does not change the offsetting requirements for deferred tax liabilities and assets, which results in the presentation of one amount on the balance sheet. Additionally, the amendments in this standard align the deferred income tax presentation with the requirements in International Accounting Standards (IAS) 1 (Presentation of Financial Statements.) This standard will be effective for the Company for annual and interim reporting periods beginning on or after December 15, 2016. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01 (Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities) the main objective of which is to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information and address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This standard will be effective for the Company for annual and interim reporting periods beginning on or after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 (Leases (Topic 842)) the main objective requires lessees to put most leases on their balance sheet but recognize expenses on their income statement in a manner similar to current accounting requirements. This standard will be effective for the Company for annual and interim reporting periods beginning on or after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. |
Accounts Receivables (Tables)
Accounts Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of accounts receivables | Accounts receivables consist of the following at December 31: (dollars in thousands) 2015 2014 U.S. and State Government $ 15 $ 3 Commercial 972 1,193 Allowance for doubtful accounts (56 ) Total $ 931 $ 1,196 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories consist of the following at December 31: (dollars in thousands) 2015 2014 Finished goods $ 412 $ 314 Work in process 240 161 Raw materials 354 298 Total $ 1,006 $ 773 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following at December 31: (dollars in thousands) 2015 2014 Leasehold improvements $ 39 $ 39 Computers and related software 1,052 1,035 Machinery and equipment 853 817 Office furniture and fixtures 61 61 2,005 1,952 Less: Accumulated depreciation 1,890 1,812 $ 115 $ 140 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax benefit (expense) | Income tax (expense) benefit for each of the years ended December 31 consists of the following: (dollars in thousands) 2015 2014 Federal $ (20 ) $ (2 ) State (5 ) 207 Deferred (1,335 ) (165 ) Total $ (1,360 ) $ 40 |
Schedule of deferred income tax (expense) benefit from operations before non-controlling interest | The significant components of deferred income tax (expense) benefit from operations for each of the years ended December 31 consists of the following: (dollars in thousands) 2015 2014 Deferred tax benefit (expense) $ 50 $ (46 ) Net operating loss carry forward 370 (234 ) Valuation allowance (1,755 ) 115 $ (1,335 ) $ (165 ) |
Schedule of effective income tax rate from operations before non-controlling interest | The Companys effective income tax rate from operations differed from the Federal statutory rate for each of the years ended December 31 as follows: 2015 2014 Federal statutory tax rate (34 )% 34 % Change in valuation allowance 119 (16 ) State research and development credits (30 ) Expiration of stock option 1 5 Prior year tax adjustments and other 5 Other, net 1 1 Tax Rate 92 % (6 )% |
Schedule of deferred tax assets and liabilities | Deferred tax assets are determined based on the temporary differences between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates. Temporary differences, net operating loss carryforwards and tax credit carryforwards that give rise to deferred tax assets and liabilities are summarized as follows as of December 31: (dollars in thousands) 2015 2014 Current deferred tax assets: Inventory valuation $ 99 $ 69 Inventory capitalization 4 Vacation pay 29 32 Warranty and other sale obligations 5 6 Allowance for accounts receivable 19 Allowance for related party note receivable 92 88 Other reserves and accruals 26 66 270 265 Valuation allowance current (270 ) (245 ) Net current deferred tax assets $ $ 20 (dollars in thousands) 2015 2014 Noncurrent deferred tax assets: Net operating loss $ 17,583 $ 17,216 Property, plant and equipment 3 (2 ) Stock options 120 77 Research and development tax credit 450 450 Alternative minimum tax credit 54 54 18,210 17,795 Valuation allowance noncurrent (18,210 ) (16,480 ) Non-current net deferred tax assets $ $ 1,315 |
Schedule of valuation allowance for deferred tax assets | The valuation allowance at December 31, 2015 and 2014 was $18.5 million and $16.7 million, respectively. Activity in the valuation allowance for deferred tax assets is as follows as of December 31: (dollars in thousands) 2015 2014 Valuation allowance, beginning of year $ 16,725 $ 16,840 Increase resulting in income tax expense 1,335 Allowance for accounts receivable 19 Allowance for related party note receivable 3 (42 ) Inventory 25 5 Net operating income (loss) 373 (72 ) Property, plant and equipment 6 (2 ) Stock options 43 (6 ) Other reserves and accruals (49 ) 2 Valuation allowance, end of year $ 18,480 $ 16,725 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consist of the following at December 31: (dollars in thousands) 2015 2014 Salaries, wages and related expenses $ 237 $ 349 Liability to shareholders for previous acquisition 363 363 Legal and professional fees 86 96 Warranty and other sale obligations 16 18 Commissions 36 37 Other 169 182 $ 907 $ 1,045 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of reserved common shares | The Company has reserved common shares for future issuance as follows as of December 31, 2015: Stock options outstanding 926,565 Common stock available for future equity awards or issuance of options 280,436 Number of common shares reserved 1,207,001 |
(Loss) Income per Share (Tables
(Loss) Income per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Schedule of reconciliation of the numerators and denominators of the basic and diluted per share computations | The following table sets forth the reconciliation of the numerators and denominators of the basic and diluted per share computations for continuing operations for the years ended December 31: (dollars in thousands, except shares) 2015 2014 Numerator: Net (loss) income $ (2,832 ) $ 740 Denominator: Basic EPS: Common shares outstanding, beginning of period 5,258,883 5,256,883 Weighted average common shares issued during the period 477 Denominator for basic earnings per common shares Weighted average common shares 5,258,883 5,257,360 Diluted EPS: Common shares outstanding, beginning of period 5,258,883 5,256,883 Common stock equivalents options 206,643 Weighted average common shares issued during the period 477 Denominator for diluted earnings per common shares - Weighted average common shares 5,258,883 5,464,003 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of weighted-average assumptions used for options granted | The following table presents the weighted-average assumptions used for options granted under the 2014 Plan: 2015 2014 Option term (years) 4.25 6.25 Volatility 191.97 % 193.96 % Risk-free interest rate 1.57 % 1.91 % Dividend yield 0 % 0 % Weighted-average fair value per option granted $ 1.14 $ 0.84 The following table presents the weighted-average assumptions used for options granted under the 2012 Plan: 2014 Option term (years) 6.29 Volatility 202.37 % Risk-free interest rate 1.59 % Dividend yield 0 % Weighted-average fair value per option granted $ 1.07 |
Schedule of total share-based compensation expense | Total share-based compensation expense, related to all of the Companys share-based awards, recognized for the years ended December 31, was comprised as follows: 2015 2014 (dollars in thousands, except eps) Cost of product revenue $ 2 $ 2 Research and product development 9 6 Selling, general and administrative 130 77 Share-based compensation expense $ 141 $ 85 Impact on basic and diluted EPS $ 0.03 $ 0.016 |
Schedule of stock option plans | Presented below is a summary of the Companys stock option plans activity for the years ended December 31: 2015 2014 Shares under option, beginning 802,908 585,382 Granted 140,000 242,000 Exercised (2,000 ) Forfeited (11,061 ) (5,750 ) Expired/canceled (5,282 ) (16,724 ) Shares under option, ending 926,565 802,908 Options exercisable 456,400 291,455 Remaining shares available for granting of options 280,436 406,500 The weighted average exercise price for the Plans is as follows for each of the years ended December 31: 2015 2014 Shares under option, beginning $ 0.72 $ 0.99 Granted $ 1.20 $ 0.98 Exercised $ $ 0.46 Forfeited $ 0.72 $ 0.47 Expired/canceled $ 4.54 $ 14.05 Shares under option, ending $ 0.77 $ 0.72 Options exercisable, ending $ 0.63 $ 0.68 |
Schedule of summarizes information for options outstanding and exercisable for the Plans | The following table summarizes information for options outstanding and exercisable for the Plans as of December 31, 2015: Outstanding Options Options Exercisable Weighted Average Weighted Weighted Exercise Remaining Average Average Price Range Number Contractual Life Exercise Price Number Exercise Price $0.00 - $1.15 766,564 7.26 $ 0.66 436,399 $ 0.56 $1.16 - $3.60 159,000 8.54 $ 1.22 19,000 $ 1.40 $14.25 - $22.64 1,001 0.70 $ 16.14 1,001 $ 16.14 926,565 7.48 $ 0.77 456,400 $ 0.63 |
Schedule of non-vested options activity | Non-vested options activity is as follows for the year ended December 31: 2015 Options 2015 Weighted Average Exercise Price Non-vested options balance, beginning January 1 511,453 $0.74 Non-vested options granted 140,000 $1.20 Vested options (170,227 ) $0.67 Non-vested options forfeited (11,061 ) $0.72 Non-vested options balance, ending December 31 470,165 $0.91 |
Geographic and Segment Inform32
Geographic and Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of product revenue summarized by geographic area | The Company sells its products on a worldwide basis with its principal markets listed in the table below where information on product revenue is summarized by geographic area for the Company as a whole for each of the years ended December 31: (dollars in thousands) 2015 2014 Product revenue: United States $ 4,139 $ 5,653 ASEAN 1,421 2,529 EMEA 650 496 North America 106 76 South America 14 27 Total product revenue $ 6,330 $ 8,781 |
Nature of Operations (Details N
Nature of Operations (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ 120,621 | $ 117,789 | |
Working capital | 1,400 | ||
Cash | $ 462 | $ 1,923 | $ 1,211 |
Accounting Policies (Details Na
Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Warrants outstanding | 5,258,883 | 5,256,883 |
Warranty liability | $ 16 | $ 18 |
Warranty expense | 13 | 9 |
Research and development costs | 1,546 | 1,346 |
Advertising costs | 127 | $ 121 |
MeOH Power, Inc [Member] | ||
Fair value of non-controlling interest | $ 0 | |
Percentage of equity ownership common stock (in percent) | 47.50% | |
Common stock shares outstanding | 75,049,937 |
Accounting Policies (Details)
Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Computers and related software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant & Equipment, Useul life | 3 years |
Computers and related software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant & Equipment, Useul life | 5 years |
Machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant & Equipment, Useul life | 3 years |
Machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant & Equipment, Useul life | 10 years |
Office furniture and fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant & Equipment, Useul life | 2 years |
Office furniture and fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant & Equipment, Useul life | 10 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Description of useful life | Lesser of the life of the lease or the useful life of the improvement |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 931 | $ 1,196 |
U.S. and State Government [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 15 | 3 |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 972 | $ 1,193 |
Allowance for Doubtful Accounts [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ (56) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 412 | $ 314 |
Work in process | 240 | 161 |
Raw materials | 354 | 298 |
Total | $ 1,006 | $ 773 |
Property, Plant and Equipment38
Property, Plant and Equipment (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 80 | $ 83 |
Repairs and maintenance expense | $ 13 | $ 22 |
Property, Plant and Equipment39
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 2,005 | $ 1,952 |
Less: Accumulated depreciation | 1,890 | 1,812 |
Property, plant and equipment, Net | 115 | 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 | 1,052 | 1,035 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 853 | 817 |
Office furniture 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 ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income before income taxes and non-controlling interest | $ (1,472) | $ 700 |
Net operating loss carryforwards | 370 | (234) |
Unrecognized tax benefits | 1,200 | $ 1,200 |
Federal Income Tax Authority [Member] | Tax Year 2034 [Member] | ||
Net operating loss carryforwards | 52,300 | |
Net operating loss carryforwards windfall tax benefits from stock option transactions | 1,300 | |
Federal Income Tax Authority [Member] | Tax Year 2020 [Member] | ||
Net operating loss carryforwards | $ 1,100 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Federal | $ (20) | $ (2) |
State | (5) | 207 |
Deferred | (1,335) | (165) |
Total | $ (1,360) | $ 40 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Deferred tax benefit (expense) | $ 50 | $ (46) |
Net operating loss carry forward | 370 | (234) |
Valuation allowance | (1,755) | 115 |
Deferred income tax (expense) benefit | $ (1,335) | $ (165) |
Income Taxes (Details 2)
Income Taxes (Details 2) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory tax rate | (34.00%) | 34.00% |
Change in valuation allowance | 119.00% | (16.00%) |
State research and development credits | (30.00%) | |
Expiration of stock option | 1.00% | 5.00% |
Prior year tax adjustments and other | 5.00% | |
Other, net | 1.00% | 1.00% |
Tax Rate | 92.00% | (6.00%) |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current deferred tax assets: | ||
Inventory valuation | $ 99 | $ 69 |
Inventory capitalization | 4 | |
Vacation pay | $ 29 | 32 |
Warranty and other sale obligations | 5 | 6 |
Allowance for accounts receivable | 19 | 0 |
Allowance for related party note receivable | 92 | 88 |
Other reserves and accruals | 26 | 66 |
Gross current deferred tax assets | 270 | 265 |
Valuation allowance - current | $ (270) | (245) |
Net current deferred tax assets | 20 | |
Noncurrent deferred tax assets: | ||
Net operating loss | $ 17,583 | 17,216 |
Property, plant and equipment | 3 | (2) |
Stock options | 120 | 77 |
Research and development tax credit | 450 | 450 |
Alternative minimum tax credit | 54 | 54 |
Gross non-current deferred tax assets | 18,210 | 17,795 |
Valuation allowance - noncurrent | $ (18,210) | (16,480) |
Non-current net deferred tax assets | $ 1,315 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Tax Assets, Net of Valuation Allowance [Roll Forward] | ||
Valuation allowance, beginning of year | $ 16,725 | $ 16,840 |
Increase resulting in income tax expense | 1,335 | |
Allowance for accounts receivable | 19 | |
Allowance for related party note receivable | 3 | $ (42) |
Inventory | 25 | 5 |
Net operating income (loss) | 373 | (72) |
Property, plant and equipment | 6 | (2) |
Stock options | 43 | (6) |
Other reserves and accruals | (49) | 2 |
Valuation allowance, end of year | $ 18,480 | $ 16,725 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Salaries, wages and related expenses | $ 237 | $ 349 |
Liability to shareholders for previous acquisition | 363 | 363 |
Legal and professional fees | 86 | 96 |
Warranty and other sale obligations | 16 | 18 |
Commissions | 36 | 37 |
Other | 169 | 182 |
Accrued liabilities, Total | $ 907 | $ 1,045 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Description of common stock voting rights | Common stock is entitled to one vote on all matters submitted to stockholders. | |
Common stock shares issued | 6,263,975 | 6,263,975 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Equity [Abstract] | |||
Stock options outstanding | 926,565 | 802,908 | 585,382 |
Common stock available for future equity awards or issuance of options | 280,436 | 406,500 | |
Number of common shares reserved | 1,207,001 |
Retirement Plan (Details Narrat
Retirement Plan (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Percentage of employee's gross pay for matcing employer contribution (in percent | 4.00% | |
Annual vesting percentage of employers matching contribution (in percent) | 25.00% | |
Matching contributions | $ 119 | $ 83 |
(Loss) Income per Share (Detail
(Loss) Income per Share (Details Narrative) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Potentially dilutive securities excluded from computation of earnings per share | 926,565 | 383,158 |
(Loss) Income per Share (Deta51
(Loss) Income per Share (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | ||
Net (loss) income | $ (2,832) | $ 740 |
Denominator - Basic EPS: | ||
Common shares outstanding, beginning of period | 5,258,883 | 5,257,360 |
Weighted average common shares issued during the period | 477 | |
Denominator for basic earnings per common shares - Weighted average common shares | 5,258,883 | 5,257,360 |
Denominator - Diluted EPS: | ||
Common shares outstanding, beginning of period | 5,258,883 | 5,464,003 |
Common stock equivalents - options | 206,643 | |
Weighted average common shares issued during the period | 477 | |
Denominator for diluted earnings per common shares - Weighted average common shares | 5,258,883 | 5,464,003 |
Stock Based Compensation (Detai
Stock Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Mar. 18, 1999 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2006 | Dec. 31, 1996 | Jun. 11, 2014 | Jun. 14, 2012 | Jun. 30, 2011 | Sep. 16, 2009 | May. 18, 2006 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Description of vesting rights | Stock options issued to employees generally vest 50% immediately, and then quarterly over the next three years. Options issued to non-employee members of the MTI Board of Directors generally vest upon grant. Certain options granted may be fully or partially exercisable immediately, may vest on other than a four year schedule or vest upon attainment of specific performance criteria. | |||||||||
Percentage of vesting rights | 25.00% | |||||||||
Description of unexercised options | Unexercised options generally terminate either seven or ten years after date of grant. | |||||||||
Number of shares granted | 140,000 | 242,000 | ||||||||
Weighted average exercise price shares granted (in dollars per share) | $ 1.20 | $ 0.98 | ||||||||
Weighted average fair value shares granted (in dollars per share) | $ 1.14 | |||||||||
Total unrecognized compensation costs | $ 307 | $ 295 | ||||||||
Weighted-average remaining vesting period | 2 years 6 months 22 days | 2 years 8 months 16 days | ||||||||
Aggregate intrinsic value of outstanding options | $ 237 | |||||||||
Aggregate intrinsic value of options exercisable | $ 171 | |||||||||
Share price (in dollars per share) | $ 0.94 | |||||||||
1996 Stock Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized | 500,000 | |||||||||
Number of shares may be awarded | 500,000 | 468,352 | ||||||||
Expiration year | 2006-10 | |||||||||
1999 Employee Stock Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized | 1,000,000 | |||||||||
Number of shares may be awarded | 562,500 | |||||||||
Expiration year | 2009-12 | |||||||||
Amended and Restated 2006 Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized | 1,200,000 | 600,000 | ||||||||
2006 Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized | 250,000 | |||||||||
2012 Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage of vesting rights | 25.00% | |||||||||
Number of shares authorized | 600,000 | |||||||||
Number of shares granted | 140,000 | |||||||||
Weighted average exercise price shares granted (in dollars per share) | $ 1.08 | |||||||||
Weighted average fair value shares granted (in dollars per share) | $ 1.07 | |||||||||
2014 Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage of vesting rights | 25.00% | 25.00% | ||||||||
Number of shares authorized | 500,000 | |||||||||
Number of shares granted | 140,000 | 102,000 | ||||||||
Weighted average exercise price shares granted (in dollars per share) | $ 1.20 | $ 0.85 | ||||||||
Weighted average fair value shares granted (in dollars per share) | $ 1.14 | $ 0.84 |
Stock Based Compensation (Det53
Stock Based Compensation (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
2014 Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option term (years) | 4 years 3 months | 6 years 3 months |
Volatility | 191.97% | 193.96% |
Risk-free interest rate | 1.57% | 1.91% |
Dividend yield | 0.00% | 0.00% |
Weighted-average fair value per option granted | $ 1.14 | $ 0.84 |
2012 Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option term (years) | 6 years 3 months 15 days | |
Volatility | 202.37% | |
Risk-free interest rate | 1.59% | |
Dividend yield | 0.00% | |
Weighted-average fair value per option granted | $ 1.07 |
Stock Based Compensation (Det54
Stock Based Compensation (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 141 | $ 85 |
Impact on basic and diluted EPS | $ 0.03 | $ 0.016 |
Cost of product revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 2 | $ 2 |
Research and product development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 9 | 6 |
Selling, general and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 130 | $ 77 |
Stock Based Compensation (Det55
Stock Based Compensation (Details 2) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Shares under option, beginning | 802,908 | 585,382 |
Granted | 140,000 | 242,000 |
Exercised | (2,000) | |
Forfeited | (11,061) | (5,750) |
Expired/canceled | (5,282) | (16,724) |
Shares under option, ending | 926,565 | 802,908 |
Options exercisable | 456,400 | 291,455 |
Remaining shares available for granting of options | 280,436 | 406,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted average exercise price under option, beginning | $ 0.72 | $ 0.99 |
Granted | $ 1.20 | 0.98 |
Exercised | 0.46 | |
Forfeited | $ 0.72 | 0.47 |
Expired/canceled | 4.54 | 14.05 |
Weighted average exercise price under option, ending | 0.77 | 0.72 |
Weighted average exercise price under option exercisable, ending | $ 0.63 | $ 0.68 |
Stock Based Compensation (Det56
Stock Based Compensation (Details 3) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Options, Number | shares | 926,565 |
Outstanding Options, Weighted Average Remaining Contractual Life | 7 years 5 months 23 days |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 0.77 |
Options Exercisable, Number | shares | 456,400 |
Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.63 |
$0.00 - $1.15 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Options, Number | shares | 766,564 |
Outstanding Options, Weighted Average Remaining Contractual Life | 7 years 3 months 4 days |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 0.66 |
Options Exercisable, Number | shares | 436,399 |
Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.56 |
$1.16 - $3.60 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Options, Number | shares | 159,000 |
Outstanding Options, Weighted Average Remaining Contractual Life | 8 years 6 months 15 days |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 1.22 |
Options Exercisable, Number | shares | 19,000 |
Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 1.40 |
$14.25 - $22.64 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Options, Number | shares | 1,001 |
Outstanding Options, Weighted Average Remaining Contractual Life | 8 months 12 days |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 16.14 |
Options Exercisable, Number | shares | 1,001 |
Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 16.14 |
Stock Based Compensation (Det57
Stock Based Compensation (Details 4) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-vested options balance, beginning | 511,453 | |
Non-vested options granted | 140,000 | 242,000 |
Vested options | (170,227) | |
Non-vested options forfeited | (11,061) | |
Non-vested options balance, ending | 470,165 | 511,453 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Weighted Average Exercise Price, Non-vested options balance, beginning | $ 0.74 | |
Non-vested options granted | 1.20 | |
Vested options | 0.67 | |
Non-vested options forfeited | 0.72 | |
Weighted Average Exercise Price, Non-vested options balance, ending | $ 0.91 | $ 0.74 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Future minimum rental payments required under non-cancelable operating leases | ||
2,016 | $ 225 | |
2,017 | 227 | |
2,018 | 221 | |
2,019 | 207 | |
Rent expense | 231 | $ 280 |
Potential minimum obligation under employment agreement | $ 66 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 18, 2013 | |
Common stock authorized | 75,000,000 | 75,000,000 | |
MeOH Power, Inc [Member] | |||
Equity method investment, percentage | 47.50% | ||
Common Stock Outstanding | 75,049,937 | ||
Common stock authorized | 240,000,000 | ||
MeOH Power, Inc [Member] | Senior Demand Promissory Note [Member] | |||
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 periodic payment | $ 115 | ||
Notes advance allowance payment | 20 | ||
Notes beneficial conversion feature | $ 266 | $ 278 |
Geographic and Segment Inform60
Geographic and Segment Information (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 115 | $ 140 |
Customers outside of the United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total product revenue | 34.60% | 35.60% |
Commercial customer [Member] | Asian customer [Member] | Sales Revenue [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total product revenue | 6.80% | 8.30% |
Test and Measurement Instrumentation segment [Member] | U.S. Air Force [Member] | Sales Revenue [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total product revenue | 4.40% | 27.90% |
Geographic and Segment Inform61
Geographic and Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total product revenue | $ 6,330 | $ 8,781 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total product revenue | 4,139 | 5,653 |
ASEAN [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total product revenue | 1,421 | 2,529 |
EMEA [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total product revenue | 650 | 496 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total product revenue | 106 | 76 |
South America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total product revenue | $ 14 | $ 27 |
Debt (Details Narrative)
Debt (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Facility No. 1 Commitment Revolving Line of Credit [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) | 2.50% |
Facility No. 2 Commitment Revolving Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 1,000 |
Description of variable rate basis | LIBOR Rate (Adjusted Periodically) |
Basis spread on variable rate (as a percent) | 2.50% |
Facility No. 3 Commitment Revolving Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 500 |
Description of variable rate basis | LIBOR Rate (Adjusted Periodically) |
Basis spread on variable rate (as a percent) | 2.50% |