Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 12, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-22333 | |
Entity Registrant Name | Nanophase Technologies Corporation | |
Entity Central Index Key | 0000883107 | |
Entity Tax Identification Number | 36-3687863 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 1319 Marquette Drive | |
Entity Address, City or Town | Romeoville | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60446 | |
City Area Code | 630 | |
Local Phone Number | 771-6708 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 49,576,704 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited Consolidated Condensed) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash | $ 1,094 | $ 2,186 |
Trade accounts receivable, less allowance for doubtful accounts of $298 for March 31, 2023, and $139 for December 31, 2022 | 4,380 | 4,734 |
Inventories, net | 8,118 | 8,839 |
Prepaid expenses and other current assets | 933 | 866 |
Total current assets | 14,525 | 16,625 |
Equipment and leasehold improvements, net | 8,235 | 7,949 |
Operating leases, right of use | 8,714 | 8,978 |
Other assets, net | 4 | 6 |
Total assets | 31,478 | 33,558 |
Current liabilities: | ||
Line of credit, related party | 6,892 | 7,282 |
Accounts payable | 6,032 | 6,363 |
Current portion of long-term debt, related party | 1,000 | |
Current portion of deferred revenue | 1,807 | 2,167 |
Accrued expenses | 1,132 | 1,023 |
Total current liabilities | 16,863 | 16,835 |
Long-term portion of operating lease obligations | 9,751 | 9,823 |
Long-term debt, related party | 1,000 | |
Long-term portion of deferred revenue | 35 | 21 |
Asset retirement obligations | 232 | 230 |
Total long-term liabilities | 10,018 | 11,074 |
Shareholders’ equity: | ||
Preferred stock, $.01 par value, 24,088 shares authorized, and no shares issued and outstanding | ||
Common stock, $.01 par value, 60,000,000 shares authorized; 49,520,571 and 49,320,680 shares issued and outstanding on March 31, 2023 and December 31, 2022, respectively | 495 | 493 |
Additional paid-in capital | 105,534 | 105,226 |
Accumulated deficit | (101,432) | (100,070) |
Total Shareholders’ equity | 4,597 | 5,649 |
Total liabilities and shareholders’ equity | $ 31,478 | $ 33,558 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited Consolidated Condensed) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 298 | $ 139 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 24,088 | 24,088 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 60,000,000 | 60,000,000 |
Common stock, outstanding | 49,520,571 | 49,320,680 |
Common stock, issued | 49,520,571 | 49,320,680 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited Consolidated Condensed) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | ||
Total revenue | $ 9,457 | $ 8,156 |
Cost of revenue | 7,308 | 5,988 |
Gross profit | 2,149 | 2,168 |
Operating expense: | ||
Research and development expense | 1,003 | 666 |
Selling, general and administrative expense | 2,150 | 1,397 |
(Loss) income from operations | (1,004) | 105 |
Interest expense | 155 | 43 |
(Loss) income before provision for income taxes | (1,159) | 62 |
Provision for income taxes | ||
Net (loss) income | $ (1,159) | $ 62 |
Net (loss) income per share-basic | $ (0.02) | $ 0 |
Weighted average number of basic common shares outstanding | 49,429,407 | 48,984,312 |
Net (loss) income per share-diluted | $ (0.02) | $ 0 |
Weighted average number of diluted common shares outstanding | 49,429,407 | 51,064,312 |
Product [Member] | ||
Revenue: | ||
Total revenue | $ 9,336 | $ 8,046 |
Product and Service, Other [Member] | ||
Revenue: | ||
Total revenue | $ 121 | $ 110 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited Consolidated Condensed) - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at beginning at Dec. 31, 2021 | $ 489 | $ 104,423 | $ (97,447) | $ 7,465 | |
Balance at beginning (in shares) at Dec. 31, 2021 | 48,893,573 | ||||
Issuance of shares and stock option exercises | $ 1 | 72 | 73 | ||
Issuance of shares and stock option exercises (in shares) | 133,168 | ||||
Stock-based compensation | 148 | 148 | |||
Net loss | 62 | 62 | |||
Balance at ending at Mar. 31, 2022 | $ 490 | 104,643 | (97,385) | 7,748 | |
Balance at ending (in shares) at Mar. 31, 2022 | 49,026,741 | ||||
Balance at beginning at Dec. 31, 2022 | $ 493 | 105,226 | (100,070) | 5,649 | |
Balance at beginning (in shares) at Dec. 31, 2022 | 49,320,680 | ||||
Issuance of shares and stock option exercises | $ 2 | 99 | 101 | ||
Issuance of shares and stock option exercises (in shares) | 199,891 | ||||
Stock-based compensation | 209 | 209 | |||
Cumulative effect of accounting changes related to expected credit loss | (203) | (203) | |||
Net loss | (1,159) | (1,159) | |||
Balance at ending at Mar. 31, 2023 | $ 495 | $ 105,534 | $ (101,432) | $ 4,597 | |
Balance at ending (in shares) at Mar. 31, 2023 | 49,520,571 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited Consolidated Condensed) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities: | ||
Net (loss) income | $ (1,159) | $ 62 |
Adjustments to reconcile net income to cash used in operating activities: | ||
Depreciation and amortization | 174 | 136 |
Stock-based compensation | 209 | 148 |
Changes in assets and liabilities related to operations: | ||
Trade accounts receivable | 151 | (1,337) |
Inventories | 721 | (2,464) |
Prepaid expenses and other assets | (67) | (94) |
Accounts payable | (768) | 1,347 |
Accrued expenses | 111 | 15 |
Deferred revenue | (346) | 65 |
Change in ROU asset and lease liability, net | 192 | 347 |
Net cash used in operating activities | (782) | (1,775) |
Investing activities: | ||
Acquisition of equipment and leasehold improvements | (21) | (378) |
Net cash used in investing activities | (21) | (378) |
Financing activities: | ||
Principal payments on finance leases | (38) | |
Proceeds from line of credit, related party | 7,150 | 8,125 |
Payments to line of credit, related party | (7,540) | (5,767) |
Proceeds from exercise of stock options | 101 | 73 |
Net cash (used in) provided by financing activities | (289) | 2,393 |
Increase in cash and cash equivalents | (1,092) | 240 |
Cash and cash equivalents at beginning of period | 2,186 | 657 |
Cash and cash equivalents at end of period | 1,094 | 897 |
Supplemental cash flow information: | ||
Interest paid | 97 | 27 |
Supplemental non-cash investing and financing activities: | ||
Accounts payable incurred for the purchase of equipment and leasehold improvements | $ 437 | $ 40 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The accompanying unaudited consolidated condensed interim financial statements of Nanophase Technologies Corporation (“Nanophase”, “Company”, “we”, “our”, or “us”) reflect all adjustments (consisting of normal recurring adjustments) which, in the opinion of management, are necessary for a fair statement of our financial position and operating results for the interim periods presented. All statements include the results from both Nanophase and our wholly-owned subsidiary, Solésence, LLC (“Solésence,” or our “Solésence® subsidiary”). Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. These financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission. |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | (2) Description of Business Nanophase Technologies Corporation (“Nanophase,” “Company,” “we,” “our,” or “us”) is a science-driven company which, along with its wholly owned subsidiary, Solésence, LLC (our “Solésence beauty science subsidiary”), is focused in various beauty- and life-science markets. Using consumer health as our end-goal and science and innovation to guide the path, skin health and medical diagnostics combined currently make up the majority of our business and drive our forward growth strategy. We offer engineered materials, formulation development and commercial manufacturing through an integrated family of technologies. Our expertise in materials engineering allows us to effectively coat and disperse particles on a nano and “non-nano” scale for use in a variety of skin health markets, including for use in sunscreens as active ingredients and as fully developed prestige skin care and cosmetics products, marketed and sold through our Solésence beauty science subsidiary. In terms of our life sciences focus, we have seen demand decrease for our medical diagnostics ingredients. Additionally, we continue to sell products in legacy markets, including architectural coatings, industrial coating applications, abrasion-resistant additives, plastics additives, and surface finishing technologies (polishing) applications, all of which, along with medical diagnostics, fall into the advanced materials product category. We target markets , , Recently developed technologies have made certain new products possible and opened potential new markets. During 2015 we were granted a patent on a new type of particle surface treatment (coating) — now called Active Stress Defense ™ Technology — which became the cornerstone of our new product development in personal care, with first revenue recognized during 2016. Active Stress Defense™ now refers to a suite of three proprietary technologies — Original Active Stress Defense™, Kleair™, and Bloom™ — all three of which either utilize a unique and proprietary, mineral-based technology or work synergistically with one of our unique and proprietary, mineral-based technologies to improve performance and/or aesthetics. Our ongoing innovation efforts include new IP in areas that advance environmental protection, align with market needs, and complement our existing technologies Through the creation of our Solésence beauty science subsidiary, we utilize our technology suite to manufacture and sell fully developed solutions to targeted customers in the skin care industry, typically in prestige skin care and cosmetics markets, in addition to the ingredients we have traditionally sold in the personal care area. Although our primary strategic focus has been the North American market, we currently sell materials to customers overseas and have been working to expand our reach within foreign markets. Our common stock trades on the OTCQB marketplace under the symbol NANX. While product sales comprise the majority of our revenue, we also recognize revenue from other sources from time to time. These activities are not expected to drive the long-term growth of the business. For this reason, we classify such revenue as “other revenue” in our Consolidated Statements of Operations, as it does not represent revenue directly from the sale of our products. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | (3) Revenues Revenues are recognized when control of the promised goods is transferred to customers, in an amount that reflects the consideration we expect to receive in exchange for those goods. When our ingredients and finished products are shipped, with control being transferred at the shipping point almost universally, is the point in time at which we recognize the related revenue. We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses. Customers’ deposits, deferred revenue and other receipts are deferred and recognized when the revenue is realized and earned. Cash payments to customers are classified as reductions of revenue in our statements of operations. Contract balances at March 31, 2023, December 31, 2022, and December 31, 2021 are as follows: Accounts of Unbilled Contract Contract Balance, December 31, 2021 $ 3,937 $ 179 $ 1,444 Balance, December 31, 2022 4,734 — 2,188 Balance, March 31, 2023 4,380 — 1,842 Revenue recognized in the reporting period that was included in the contract liability balance at the beginning of the period was $ 1,297 123 Other revenue may include revenue from technology license fees and paid development projects. Technology license fees and paid development projects are recognized over time when the obligations under the agreed upon contractual arrangements are performed on our part. Other revenue recognized over time was $ 121 110 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (4) Earnings Per Share Options to purchase approximately 1,164,000 2,080,000 Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: Three months ended 2023 2022 Numerator: (in Thousands) Net (loss) income $ (1,159 ) $ 62 Denominator: Weighted average number of basic common shares outstanding 49,429,407 48,984,312 Weighted average additional shares assuming conversion of in-the-money stock options to common shares — 2,080,000 Weighted average number of diluted common shares outstanding 49,429,407 51,064,312 Basic earnings per common share: Net (loss) income per share – basic $ (0.02 ) $ 0.00 Diluted earnings per common share: Net (loss) income per share – diluted $ (0.02 ) $ 0.00 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | (5) Financial Instruments We follow ASC Topic 820, Fair Value Measurements and Disclosures Our financial instruments include cash, cash equivalents, accounts receivable, accounts payable and accrued expenses, along with any short-term and long-term borrowings as described in Note 6. The carrying values of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses are reasonable estimates of their fair value due to the short-term nature. The fair value of short-term and long-term debt approximates carrying value based on comparison of terms to similar debt offering in the marketplace. There were no financial instruments adjusted to fair value on March 31, 2023, or December 31, 2022. |
Notes and Lines of Credit
Notes and Lines of Credit | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Notes and Lines of Credit | (6) Notes and Lines of Credit Notes and lines of credit consist of the following: As of March 31, 2023 As of December 31, 2022 Rate Available Outstanding Available Outstanding Libertyville Bank & Trust (1) 9.00 % 30 — — — Libertyville Bank & Trust (2) 9.00 % 500 — — — Strandler, LLC (3)(4) 8.75 % 1,000 1,000 1,000 1,000 Beachcorp, LLC (3)(5) 8.75 % 4,614 2,893 4,392 4,282 Beachcorp, LLC (3)(6) 8.75 % 4,000 4,000 4,000 3,000 1) Since July 2014, we have maintained a bank-issued letter of credit for up to $ 30 1 2) The Company maintains a credit agreement with Libertyville which most recently served the primary purpose of insuring that it met its cash balance requirements at quarter end relating to a contract with the Company’s largest customer. Interest on drawn balances was at the prime rate 1 3) On November 16, 2018, we entered into a Business Loan Agreement (the “Master Agreement”) with Beachcorp, LLC. The Master Agreement relates to two loan facilities, each evidenced by a separate promissory note dated as of November 16, 2018: a term loan to the Company of up to $ 500 8.25 December 31, 2020 2,000 prime rate 3 8.25 March 31, 2020 March 31, 2021 2,000 2,750 2,750 4,000 March 31, 2022 4,000 6,000 prime rate 2 March 31, 2023 500 1,000 prime rate 2 March 31, 2022 4) On January 28, 2022 the Company entered into an additional Business Loan Agreement (the “New Term Loan Agreement”) with Strandler, LLC, which effectively transferred or assigned the previously existing Term Loan to Strandler, LLC from Beachcorp, LLC. Interest on the New Term Loan is at the prime rate 0.75 March 31, 2024 5) On January 28, 2022 the Company entered into an Amended and Restated Business Loan Agreement (the “A&R Loan Agreement”), which amends and restates the Master Agreement between the Company and Beachcorp, LLC, and a new promissory note in order to evidence the A/R Revolver facility, including an amendment to expand the limit on the A/R Revolver Facility from $ 6,000 8,000 prime rate 0.75 March 31, 2024 6) On January 28, 2022 the Company entered into the A&R Loan Agreement and a new revolving loan agreement (“Inventory Facility”) with Beachcorp, LLC, and a new promissory note in order to evidence the Inventory Facility. The maximum borrowing amount under the Inventory Facility is $ 4,000 50 prime rate 0.75 March 31, 2024 Beachcorp, LLC and Strandler, LLC are affiliates of Mr. Bradford T. Whitmore, who beneficially owns a majority of the Company’s common stock and is the brother of Ms. R. Janet Whitmore, a director of the Company and the chair of the Company’s board of directors. The A/R Revolver Facility, the Inventory Facility and the New Term Loan are all secured by all the unencumbered assets of the Company and subordinated to the Company’s credit facility with Libertyville Bank & Trust. On May 1, 2023 the Company entered into another promissory note (the “Non-Revolving Note - TI Agreement”) with Beachcorp, LLC in the amount of $ 1,750,000 prime rate 0.75 September 30, 2023 Related party interest summary: Three Months Ended March 31, 2023 2022 Interest expense, related parties $ 150 $ 39 Accrued interest expense, related parties 59 $ 16 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | (7) Inventories Inventories consist of the following: March 31, December 31, Raw materials $ 5,637 $ 6,797 Finished goods 2,481 2,041 Total Inventories, net 8,118 8,839 At March 31, 2023 and December 31, 2022, the Company applied a $ 500 |
Lease Commitments
Lease Commitments | 3 Months Ended |
Mar. 31, 2023 | |
Lease Commitments | |
Lease Commitments | (8) Lease Commitments The Company’s operating lease portfolio is comprised of operating leases for office, warehouse space and equipment. Certain of the Company’s leases include one or more options to renew or terminate the lease at the Company’s discretion. The Company regularly evaluates the renewal and termination options and when they are reasonably certain of exercise, includes the renewal or termination option in our lease term. Since inception of our newest leased building, we have subleased a portion of the unused floorspace on a temporary basis. This sublease may convert to a month-to-month lease upon expiration. As of March 31, 2023, the ROU asset had a balance of $ 8,714 0 9,751 0 1,716 0 9,751 347 8,978 0 9,823 0 1,957 97 Discount rates used for leases accounted for under ASC 842 are based on an interest rate yield curve developed for the leases in the Company’s portfolio. The office leases contain variable lease payments which consist primarily of taxes, insurance, and common area or other maintenance costs, which are paid based on actual costs incurred by the lessor. The Company has elected to utilize the available practical expedient to combine lease and non-lease components for building leases. Quantitative information regarding the Company’s leases is as follows: Three Months Ended Three Months Ended Components of lease cost Finance lease cost components: Amortization of finance lease assets $ — $ 11 Interest on finance lease liabilities — 2 Total finance lease costs — 13 Operating lease cost components: Operating lease cost 469 363 Variable lease cost 146 172 Short-term lease cost 48 21 Sublease income (196 ) (183 ) Total operating lease costs 467 373 Total lease cost $ 467 $ 386 Supplemental cash flow information related to leases is as follows for the three months ended March 31, 2023 and 2022: 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 263 $ 190 Weighted-average remaining lease term-finance leases (in years) — 0.6 Weighted-average remaining lease term-operating leases (in years) 8.0 9.3 Weighted-average discount rate-finance leases — 7.6 % Weighted-average discount rate-operating leases 7.05 % 7.5 % The future maturities of the Company’s finance and operating leases as of March 31, 2023 are as follows: 2023 $ (172 ) 2024 2,029 2025 1,473 2026 1,471 2027 1,510 Thereafter 7,162 Total payments $ 13,473 Less amounts representing interest (3,722 ) Total minimum payments required $ 9,751 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | (9) Stock-Based Compensation We follow ASC Topic 718, Stock-Based Payments, in which compensation expense is recognized only for stock-based payments expected to vest. Three months ended March 31, 2023 2022 Stock-based compensation expense $ 209 $ 148 Remaining unrecognized compensation expense $ 1,577 Remaining weighted average-period, expense recognition (years) 2.1 The following table summarizes the option activity for our employees and directors during the three months ended March 31, 2023: Schedule of option activity Weighted Average Exercise Price Options Shares per Share Outstanding on January 1, 2023 3,443,661 $ 1.33 Granted — $ — Exercised (199,891 ) Forfeited or expired (18,000 ) Outstanding on March 31, 2022 3,225,770 $ 1.37 |
Significant Customers and Conti
Significant Customers and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Significant Customers and Contingencies | (10) Significant Customers and Contingencies The portion of total revenue from our significant customers are as follows for the periods ending March 31, 2023, and 2022: For the three months ended March 31, Customer # Product Category 2023 2022 1 Personal Care Ingredients 37 % 29 % 2 Solésence® 11 % 18 % 3 Solésence® 5 % 13 % 4 Solésence® 9 % 9 % Total 62 % 69 % Accounts receivable balances for these four customers were approximately: For the three months ended Customer # Product Category 2023 2022 1 Personal Care Ingredients $ 1,197 $ 1,489 2 Solésence® 548 880 3 Solésence® 424 1,050 4 Solésence® 485 371 Total $ 2,654 $ 3,790 We currently have exclusive supply agreements with BASF Corporation (“BASF”), our largest customer, that have contingencies outlined which could potentially result in the license of technology and/or the sale of production equipment from the Company to the customer intended to provide capacity sufficient to meet the customer’s production needs. This outcome may occur if we fail to meet certain performance requirements. Our supply agreements with BASF also “trigger” a technology transfer right in the event of our insolvency, as further defined within the agreements. In the event of an equipment sale, upon incurring a triggering event, the equipment would be sold to the customer at either 115 30 115 If a triggering event were to occur and BASF elected to proceed with the license and related equipment sale mentioned above, we would receive royalty payments from this customer for products sold using our technology; however, we would lose both significant revenue and the ability to generate significant revenue to replace that which was lost in the near term. Replacement of necessary equipment that could be purchased and removed by the customer pursuant to this triggering event could take in excess of twelve months. Any additional capital outlays required to rebuild capacity would probably be greater than the proceeds from the purchase of the assets as dictated by our agreement with the customer. Similar consequences would occur if we were determined to have materially breached certain other provisions of the supply agreement with BASF. Any such event would also likely result in the loss of many of our key staff and line employees due to economic realities. We believe that our employees are a critical component of our success, and it could be difficult to replace them quickly. Given the occurrence of any such event, we might not be able to hire and retain skilled employees given the stigma relating to such an event and its impact on us. |
Business Segmentation and Geogr
Business Segmentation and Geographical Distribution | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segmentation and Geographical Distribution | (11) Business Segmentation and Geographical Distribution Revenue from international sources approximated $ 1,435 55 Our operations comprise a single business segment and all of our long-lived assets are located within the United States. We categorize our revenue stream into three main product categories, Personal Care Ingredients, Advanced Materials and Solésence. The revenues, by category, for the three months ended March 31, 2023 and 2022 are as follows: Three months ended March 31, Product Category 2023 2022 Solésence $ 5,044 $ 5,560 Personal Care Ingredients 3,544 2,382 Advanced Materials 869 214 Total Sales $ 9,457 $ 8,156 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (12) Commitments and Contingencies On August 9, 2022, BASF filed a complaint against Nanophase in New Jersey state court (the “New Jersey Complaint”), alleging that Nanophase had breached the 1999 Zinc Oxide Supply Agreement (the “Agreement”). BASF alleges several issues, the one having the biggest potential impact on Nanophase being a claim that our sales through Solésence violate the exclusivity provision of the Agreement. BASF seeks an unspecified amount of damages, a permanent injunction enjoining sales to any party (other than BASF) of a broad range of zinc oxide products that BASF contends are within the scope of the exclusivity provision, counsel fees and litigation expenses. On September 7, 2022, Nanophase filed a Complaint for Declaratory Judgement in Illinois state court (the “Illinois Complaint”), asking for a declaration that contrary to BASF’s allegation, the exclusivity provision of the Agreement does not apply to all products containing zinc oxide as an ingredient for uses designated under the Agreement, nor does the exclusivity provision prohibit Nanophase’s sales of Solésence products containing zinc oxide as an ingredient. Both companies filed Motions to Dismiss (MTD) the other’s respective complaint. Nanophase’s MTD BASF’s New Jersey Complaint was denied on procedural grounds on February 10, 2023, with the New Jersey court superficially noting that it did not consider whether BASF could prove its claims. On February 28, 2023, Nanophase filed its answer to BASF’s New Jersey Complaint, denying all wrongdoing and, as mandated by New Jersey procedural requirements, counterclaims including a request for a declaration similar to that Nanophase sought in its Illinois Complaint. On March 16, 2023, the Illinois court granted BASF’s MTD Nanophase’s Illinois Complaint, finding it duplicative of the New Jersey litigation. Discovery in that litigation is ongoing. Management believes at this time that the allegations of BASF’s complaint are without merit and are unsupported by the terms of the Agreement and governing law. Per ASC 450 for the period ending March 31, 2023, an estimated contingent loss was not recorded, and an estimated range of loss is not disclosed as the outcome is not probable at this time and nor is a range of loss estimable. |
Accounting Standards Adopted Du
Accounting Standards Adopted During 2023 | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards Adopted During 2023 | (13) Accounting Standards Adopted During 2023 On January 1, 2023, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This differs from prior allocation methodologies in that in addition to solely considering an aging schedule for amounts to reserve, management must now also consider current events as well as the future macroeconomic environment when making such loss assessments. On January 1, 2023, the Company applied the accounting change retrospectively with an opening adjustment to retained earnings in the amount of $ 203 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract balances at March 31, 2023, December 31, 2022, and December 31, 2021 are as follows: | Contract balances at March 31, 2023, December 31, 2022, and December 31, 2021 are as follows: Accounts of Unbilled Contract Contract Balance, December 31, 2021 $ 3,937 $ 179 $ 1,444 Balance, December 31, 2022 4,734 — 2,188 Balance, March 31, 2023 4,380 — 1,842 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: | Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: Three months ended 2023 2022 Numerator: (in Thousands) Net (loss) income $ (1,159 ) $ 62 Denominator: Weighted average number of basic common shares outstanding 49,429,407 48,984,312 Weighted average additional shares assuming conversion of in-the-money stock options to common shares — 2,080,000 Weighted average number of diluted common shares outstanding 49,429,407 51,064,312 Basic earnings per common share: Net (loss) income per share – basic $ (0.02 ) $ 0.00 Diluted earnings per common share: Net (loss) income per share – diluted $ (0.02 ) $ 0.00 |
Notes and Lines of Credit (Tabl
Notes and Lines of Credit (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Notes and lines of credit consist of the following: | Notes and lines of credit consist of the following: As of March 31, 2023 As of December 31, 2022 Rate Available Outstanding Available Outstanding Libertyville Bank & Trust (1) 9.00 % 30 — — — Libertyville Bank & Trust (2) 9.00 % 500 — — — Strandler, LLC (3)(4) 8.75 % 1,000 1,000 1,000 1,000 Beachcorp, LLC (3)(5) 8.75 % 4,614 2,893 4,392 4,282 Beachcorp, LLC (3)(6) 8.75 % 4,000 4,000 4,000 3,000 1) Since July 2014, we have maintained a bank-issued letter of credit for up to $ 30 1 2) The Company maintains a credit agreement with Libertyville which most recently served the primary purpose of insuring that it met its cash balance requirements at quarter end relating to a contract with the Company’s largest customer. Interest on drawn balances was at the prime rate 1 3) On November 16, 2018, we entered into a Business Loan Agreement (the “Master Agreement”) with Beachcorp, LLC. The Master Agreement relates to two loan facilities, each evidenced by a separate promissory note dated as of November 16, 2018: a term loan to the Company of up to $ 500 8.25 December 31, 2020 2,000 prime rate 3 8.25 March 31, 2020 March 31, 2021 2,000 2,750 2,750 4,000 March 31, 2022 4,000 6,000 prime rate 2 March 31, 2023 500 1,000 prime rate 2 March 31, 2022 4) On January 28, 2022 the Company entered into an additional Business Loan Agreement (the “New Term Loan Agreement”) with Strandler, LLC, which effectively transferred or assigned the previously existing Term Loan to Strandler, LLC from Beachcorp, LLC. Interest on the New Term Loan is at the prime rate 0.75 March 31, 2024 5) On January 28, 2022 the Company entered into an Amended and Restated Business Loan Agreement (the “A&R Loan Agreement”), which amends and restates the Master Agreement between the Company and Beachcorp, LLC, and a new promissory note in order to evidence the A/R Revolver facility, including an amendment to expand the limit on the A/R Revolver Facility from $ 6,000 8,000 prime rate 0.75 March 31, 2024 6) On January 28, 2022 the Company entered into the A&R Loan Agreement and a new revolving loan agreement (“Inventory Facility”) with Beachcorp, LLC, and a new promissory note in order to evidence the Inventory Facility. The maximum borrowing amount under the Inventory Facility is $ 4,000 50 prime rate 0.75 March 31, 2024 |
Related party interest summary: | Related party interest summary: Three Months Ended March 31, 2023 2022 Interest expense, related parties $ 150 $ 39 Accrued interest expense, related parties 59 $ 16 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories consist of the following: | Inventories consist of the following: March 31, December 31, Raw materials $ 5,637 $ 6,797 Finished goods 2,481 2,041 Total Inventories, net 8,118 8,839 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Lease Commitments | |
Quantitative information regarding the Company’s leases is as follows: | Quantitative information regarding the Company’s leases is as follows: Three Months Ended Three Months Ended Components of lease cost Finance lease cost components: Amortization of finance lease assets $ — $ 11 Interest on finance lease liabilities — 2 Total finance lease costs — 13 Operating lease cost components: Operating lease cost 469 363 Variable lease cost 146 172 Short-term lease cost 48 21 Sublease income (196 ) (183 ) Total operating lease costs 467 373 Total lease cost $ 467 $ 386 |
Supplemental cash flow information related to leases is as follows for the three months ended March 31, 2023 and 2022: | Supplemental cash flow information related to leases is as follows for the three months ended March 31, 2023 and 2022: 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 263 $ 190 Weighted-average remaining lease term-finance leases (in years) — 0.6 Weighted-average remaining lease term-operating leases (in years) 8.0 9.3 Weighted-average discount rate-finance leases — 7.6 % Weighted-average discount rate-operating leases 7.05 % 7.5 % |
The future maturities of the Company’s finance and operating leases as of March 31, 2023 are as follows: | The future maturities of the Company’s finance and operating leases as of March 31, 2023 are as follows: 2023 $ (172 ) 2024 2,029 2025 1,473 2026 1,471 2027 1,510 Thereafter 7,162 Total payments $ 13,473 Less amounts representing interest (3,722 ) Total minimum payments required $ 9,751 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
We follow ASC Topic 718, Stock-Based Payments, in which compensation expense is recognized only for stock-based payments expected to vest. | We follow ASC Topic 718, Stock-Based Payments, in which compensation expense is recognized only for stock-based payments expected to vest. Three months ended March 31, 2023 2022 Stock-based compensation expense $ 209 $ 148 Remaining unrecognized compensation expense $ 1,577 Remaining weighted average-period, expense recognition (years) 2.1 |
Schedule of option activity | The following table summarizes the option activity for our employees and directors during the three months ended March 31, 2023: Schedule of option activity Weighted Average Exercise Price Options Shares per Share Outstanding on January 1, 2023 3,443,661 $ 1.33 Granted — $ — Exercised (199,891 ) Forfeited or expired (18,000 ) Outstanding on March 31, 2022 3,225,770 $ 1.37 |
Significant Customers and Con_2
Significant Customers and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
The portion of total revenue from our significant customers are as follows for the periods ending March 31, 2023, and 2022: | The portion of total revenue from our significant customers are as follows for the periods ending March 31, 2023, and 2022: For the three months ended March 31, Customer # Product Category 2023 2022 1 Personal Care Ingredients 37 % 29 % 2 Solésence® 11 % 18 % 3 Solésence® 5 % 13 % 4 Solésence® 9 % 9 % Total 62 % 69 % |
Accounts receivable balances for these four customers were approximately: | Accounts receivable balances for these four customers were approximately: For the three months ended Customer # Product Category 2023 2022 1 Personal Care Ingredients $ 1,197 $ 1,489 2 Solésence® 548 880 3 Solésence® 424 1,050 4 Solésence® 485 371 Total $ 2,654 $ 3,790 |
Business Segmentation and Geo_2
Business Segmentation and Geographical Distribution (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
The revenues, by category, for the three months ended March 31, 2023 and 2022 are as follows: | Our operations comprise a single business segment and all of our long-lived assets are located within the United States. We categorize our revenue stream into three main product categories, Personal Care Ingredients, Advanced Materials and Solésence. The revenues, by category, for the three months ended March 31, 2023 and 2022 are as follows: Three months ended March 31, Product Category 2023 2022 Solésence $ 5,044 $ 5,560 Personal Care Ingredients 3,544 2,382 Advanced Materials 869 214 Total Sales $ 9,457 $ 8,156 |
Contract balances at March 31,
Contract balances at March 31, 2023, December 31, 2022, and December 31, 2021 are as follows: (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | |||
Accounts Receivable, net of Unbilled | $ 4,380 | $ 4,734 | $ 3,937 |
Contract assets | 179 | ||
Contract liabilities | $ 1,842 | $ 2,188 | $ 1,444 |
Revenues (Details Narrative)
Revenues (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue recognized included in contract liability balance at beginning of period | $ 1,297 | $ 123 |
Revenue | 9,457 | 8,156 |
Product and Service, Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 121 | 110 |
Product and Service, Other [Member] | Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 121 | $ 110 |
Earnings applicable to common s
Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: (in Thousands) | ||
Net (loss) income | $ (1,159) | $ 62 |
Denominator: | ||
Weighted average number of basic common shares outstanding | 49,429,407 | 48,984,312 |
Weighted average additional shares assuming conversion of in-the-money stock options to common shares | 2,080,000 | |
Weighted average number of diluted common shares outstanding | 49,429,407 | 51,064,312 |
Basic earnings per common share: | ||
Net (loss) income per share – basic | $ (0.02) | $ 0 |
Diluted earnings per common share: | ||
Net (loss) income per share – diluted | $ (0.02) | $ 0 |
Earnings Per Share (Details Nar
Earnings Per Share (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive shares | 1,164,000 | |
Weighted average additional shares assuming conversion of in-the-money stock options to common shares | 2,080,000 |
Notes and lines of credit consi
Notes and lines of credit consist of the following: (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||||
Jan. 28, 2022 | Apr. 21, 2021 | Dec. 23, 2020 | Mar. 23, 2020 | Nov. 16, 2018 | Jul. 31, 2014 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 08, 2020 | ||
Letter of Credit [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Letter of credit and related promissory note | $ 30 | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1% | 1% | ||||||||
Debt Instrument, Description of Variable Rate Basis | prime rate | |||||||||
Libertyville Bank and Trust [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, description | [1] | Libertyville Bank & Trust | ||||||||
Line of Credit Facility, Commitment Fee Percentage | [1] | 9% | ||||||||
Available | [1] | $ 30 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | [1] | |||||||||
Libertyville Bank and Trust One [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, description | [2] | Libertyville Bank & Trust | ||||||||
Line of Credit Facility, Commitment Fee Percentage | [2] | 9% | ||||||||
Available | [2] | $ 500 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | [2] | |||||||||
Strandler, LLC [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, description | [3],[4] | Strandler, LLC | ||||||||
Line of Credit Facility, Commitment Fee Percentage | [3],[4] | 8.75% | ||||||||
Available | [3],[4] | $ 1,000 | 1,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | [3],[4] | $ 1,000 | 1,000 | |||||||
Beachcorp, LLC One [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, description | [4],[5] | Beachcorp, LLC | ||||||||
Line of Credit Facility, Commitment Fee Percentage | [4],[5] | 8.75% | ||||||||
Available | [4],[5] | $ 4,614 | 4,392 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | [4],[5] | $ 2,893 | 4,282 | |||||||
Beachcorp, LLC Two [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, description | [4],[6] | Beachcorp, LLC | ||||||||
Line of Credit Facility, Commitment Fee Percentage | [4],[6] | 8.75% | ||||||||
Available | [4],[6] | $ 4,000 | 4,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | [4],[6] | $ 4,000 | $ 3,000 | |||||||
Term Loan [Member] | Strandler, LLC [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||||
Debt Instrument, Description of Variable Rate Basis | prime rate | |||||||||
Debt Instrument, Maturity Date | Mar. 31, 2024 | |||||||||
Term Loan [Member] | Business Loan Agreement [Member] | Beachcorp, LLC [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 | $ 500 | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2% | |||||||||
Debt Instrument, Description of Variable Rate Basis | prime rate | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | |||||||||
Debt Instrument, Maturity Date | Mar. 31, 2022 | Dec. 31, 2020 | ||||||||
Revolving Credit Facility [Member] | Business Loan Agreement [Member] | Beachcorp, LLC [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,000 | $ 6,000 | $ 4,000 | $ 2,000 | $ 2,750 | |||||
Debt Instrument, Basis Spread on Variable Rate | 2% | 3% | ||||||||
Debt Instrument, Description of Variable Rate Basis | prime rate | prime rate | ||||||||
Debt Instrument, Maturity Date | Mar. 31, 2024 | Mar. 31, 2020 | ||||||||
Line of Credit Facility, Expiration Date | Mar. 31, 2023 | |||||||||
Revolving Credit Facility [Member] | Business Loan Agreement [Member] | Beachcorp, LLC [Member] | Minimum [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | |||||||||
Term Loan and The Revolver Facility [Member] | Business Loan Agreement [Member] | Beachcorp, LLC [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||||
Debt Instrument, Description of Variable Rate Basis | prime rate | |||||||||
Debt Instrument, Maturity Date | Mar. 31, 2022 | Mar. 31, 2021 | ||||||||
Inventory Facility [Member] | Business Loan Agreement [Member] | Beachcorp, LLC [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000 | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||||
Debt Instrument, Description of Variable Rate Basis | prime rate | |||||||||
Debt Instrument, Maturity Date | Mar. 31, 2024 | |||||||||
Line of Credit Percentage of Eligible inventory | 50% | |||||||||
[1]Since July 2014, we have maintained a bank-issued letter of credit for up to $ 30 1 prime rate 1 prime rate 0.75 March 31, 2024 500 8.25 December 31, 2020 2,000 prime rate 3 8.25 March 31, 2020 March 31, 2021 2,000 2,750 2,750 4,000 March 31, 2022 4,000 6,000 prime rate 2 March 31, 2023 500 1,000 prime rate 2 March 31, 2022 6,000 8,000 prime rate 0.75 March 31, 2024 4,000 50 prime rate 0.75 March 31, 2024 |
Related party interest summary_
Related party interest summary: (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Interest expense, related parties | $ 150 | $ 39 |
Accrued interest expense, related parties | $ 59 | $ 16 |
Notes and Lines of Credit (Deta
Notes and Lines of Credit (Details Narrative) - Subsequent Event [Member] - Promissory Note [Member] - Beachcorp, LLC [Member] | May 01, 2023 USD ($) |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 1,750,000 |
Debt Instrument, Description of Variable Rate Basis | prime rate |
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
Debt Instrument, Face Amount | Sep. 30, 2023 |
Inventories consist of the foll
Inventories consist of the following: (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 5,637 | $ 6,797 |
Finished goods | 2,481 | 2,041 |
Total Inventories, net | $ 8,118 | $ 8,839 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Reserve against reported inventory | $ 500 | $ 500 |
Quantitative information regard
Quantitative information regarding the Company’s leases is as follows: (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Finance lease cost components: | ||
Amortization of finance lease assets | $ 11 | |
Interest on finance lease liabilities | 2 | |
Total finance lease costs | 13 | |
Operating lease cost components: | ||
Operating lease cost | 469 | 363 |
Variable lease cost | 146 | 172 |
Short-term lease cost | 48 | 21 |
Sublease income | (196) | (183) |
Total operating lease costs | 467 | 373 |
Total lease cost | $ 467 | $ 386 |
Supplemental cash flow informat
Supplemental cash flow information related to leases is as follows for the three months ended March 31, 2023 and 2022: (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lease Commitments | ||
Operating cash outflow from operating leases | $ 263 | $ 190 |
Weighted-average remaining lease term-finance leases (in years) | 7 months 6 days | |
Weighted-average remaining lease term-operating leases (in years) | 8 years | 9 years 3 months 18 days |
Weighted-average discount rate-finance leases | 7.60% | |
Weighted-average discount rate-operating leases | 7.05% | 7.50% |
The future maturities of the Co
The future maturities of the Company’s finance and operating leases as of March 31, 2023 are as follows: (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Lease Commitments | |
2023 | $ (172) |
2024 | 2,029 |
2025 | 1,473 |
2026 | 1,471 |
2027 | 1,510 |
Thereafter | 7,162 |
Total payments | 13,473 |
Less amounts representing interest | (3,722) |
Total minimum payments required | $ 9,751 |
Lease Commitments (Details Narr
Lease Commitments (Details Narrative) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Lease Commitments | ||
Operating leases, right of use | $ 8,714,000 | $ 8,978,000 |
Current portion of operating lease obligations | 0 | 0 |
Long-term portion of operating lease obligations | 9,751,000 | 9,823,000 |
Tenant improvement allowances | 1,716,000 | 1,957,000 |
Operating lease liability | 9,751,000 | |
Net lease payments | $ 347,000 | $ 97,000 |
We follow ASC Topic 718, Stock-
We follow ASC Topic 718, Stock-Based Payments, in which compensation expense is recognized only for stock-based payments expected to vest. (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 209 | $ 148 |
Remaining unrecognized compensation expense | $ 1,577 | |
Share-Based Payment Arrangement, Option [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Remaining weighted average-period, expense recognition (years) | 2 years 1 month 6 days |
Schedule of option activity (De
Schedule of option activity (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Shares Outstanding, Beginning | 3,443,661 |
Shares Outstanding Beginning, (per share) | $ / shares | $ 1.33 |
Granted | |
Granted (per share) | $ / shares | |
Exercised | (199,891) |
Forfeited or expired | (18,000) |
Shares Outstanding, Beginning | 3,225,770 |
Shares Outstanding Beginning, (per share) | $ / shares | $ 1.37 |
The portion of total revenue fr
The portion of total revenue from our significant customers are as follows for the periods ending March 31, 2023, and 2022: (Details) - Customer Concentration Risk [Member] - Revenue Benchmark [Member] | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Customer One [Member] | ||
Concentration Risk [Line Items] | ||
Revenue from customers | 37% | 29% |
Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Revenue from customers | 11% | 18% |
Customer Three [Member] | ||
Concentration Risk [Line Items] | ||
Revenue from customers | 5% | 13% |
Customer Four [Member] | ||
Concentration Risk [Line Items] | ||
Revenue from customers | 9% | 9% |
Customers One through Four [Member] | ||
Concentration Risk [Line Items] | ||
Revenue from customers | 62% | 69% |
Accounts receivable balances fo
Accounts receivable balances for these four customers were approximately: (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Total | $ 2,654 | $ 3,790 |
Customer One [Member] | ||
Total | 1,197 | 1,489 |
Customer Two [Member] | ||
Total | 548 | 880 |
Customer Three [Member] | ||
Total | 424 | 1,050 |
Customer Four [Member] | ||
Total | $ 485 | $ 371 |
Significant Customers and Con_3
Significant Customers and Contingencies (Details Narrative) | Mar. 31, 2023 |
Supply Commitment [Line Items] | |
Equipment sale - net book value | 115% |
Supply Commitment [Member] | |
Supply Commitment [Line Items] | |
Equipment sale - net book value | 115% |
Equipment sale- original book value | 30% |
The revenues, by category, for
The revenues, by category, for the three months ended March 31, 2023 and 2022 are as follows: (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from External Customer [Line Items] | ||
Total revenue | $ 9,457 | $ 8,156 |
Solesence [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenue | 5,044 | 5,560 |
Personal Care ingredients [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenue | 3,544 | 2,382 |
Advanced Materials [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenue | $ 869 | $ 214 |
Business Segmentation and Geo_3
Business Segmentation and Geographical Distribution (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Non-US [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 1,435 | $ 55 |
Accounting Standards Adopted _2
Accounting Standards Adopted During 2023 (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2023 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accounting Standards Update [Extensible Enumeration] | us-gaap:AccountingStandardsUpdate201613Member | |
Retained earnings | $ 100,070 | $ 101,432 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Retained earnings | $ 203 |