Delaware
(State or other jurisdiction
of incorporation)
|
|
001-33059
(Commission
File Number)
|
|
20-5657551
(IRS Employer
Identification No.)
|
CONTACT:
|
Vince Arnone
|
Devin Sullivan
|
|
President and CEO
|
Senior Vice President
|
|
(630) 845-4500
|
The Equity Group Inc.
|
|
|
(212) 836-9608
|
•
|
(877) 423-9820 (Domestic)
|
•
|
(201) 493-6749 (International)
|
|
December 31,
2019 |
December 31,
2018 |
||||
|
|
|
||||
ASSETS
|
|
|
||||
Current assets:
|
|
|
||||
Cash and cash equivalents
|
$
|
10,914
|
|
$
|
12,039
|
|
Restricted cash
|
2,080
|
|
6,020
|
|
||
Accounts receivable, net
|
6,473
|
|
18,399
|
|
||
Inventories, net
|
264
|
|
957
|
|
||
Prepaid expenses and other current assets
|
1,879
|
|
3,184
|
|
||
Income taxes receivable
|
—
|
|
118
|
|
||
Total current assets
|
21,610
|
|
40,717
|
|
||
Property and equipment, net
|
5,662
|
|
5,976
|
|
||
Goodwill
|
2,116
|
|
2,116
|
|
||
Other intangible assets, net
|
906
|
|
1,164
|
|
||
Restricted cash
|
507
|
|
—
|
|
||
Right-of-use operating lease assets
|
980
|
|
—
|
|
||
Assets held for sale
|
—
|
|
485
|
|
||
Other assets
|
443
|
|
1,261
|
|
||
Total assets
|
$
|
32,224
|
|
$
|
51,719
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
||||
Current liabilities:
|
|
|
||||
Accounts payable
|
$
|
2,117
|
|
$
|
9,499
|
|
Accrued liabilities:
|
|
|
||||
Operating lease liabilities - current
|
300
|
|
—
|
|
||
Employee compensation
|
519
|
|
1,563
|
|
||
Income taxes payable
|
—
|
|
—
|
|
||
Other accrued liabilities
|
1,976
|
|
6,099
|
|
||
Total current liabilities
|
4,912
|
|
17,161
|
|
||
Operating lease liabilities - non-current
|
680
|
|
—
|
|
||
Deferred income taxes
|
171
|
|
171
|
|
||
Other liabilities
|
286
|
|
335
|
|
||
Total liabilities
|
6,049
|
|
17,667
|
|
||
COMMITMENTS AND CONTINGENCIES
|
|
|
||||
Stockholders’ equity:
|
|
|
||||
Common stock, $.01 par value, 40,000,000 shares authorized, 25,053,480 and 24,825,891 shares issued, and 24,592,578 and 24,170,585 outstanding in 2019 and 2018, respectively
|
254
|
|
248
|
|
||
Additional paid-in capital
|
139,560
|
|
138,992
|
|
||
Accumulated deficit
|
(110,325
|
)
|
(102,495
|
)
|
||
Accumulated other comprehensive loss
|
(1,778
|
)
|
(1,285
|
)
|
||
Nil coupon perpetual loan notes
|
76
|
|
76
|
|
||
Treasury stock, at cost
|
(1,612
|
)
|
(1,484
|
)
|
||
Total stockholders’ equity
|
26,175
|
|
34,052
|
|
||
Total liabilities and stockholders’ equity
|
$
|
32,224
|
|
$
|
51,719
|
|
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||
Revenues
|
$
|
4,912
|
|
$
|
15,827
|
|
$
|
30,467
|
|
$
|
56,535
|
|
Costs and expenses:
|
|
|
|
|
||||||||
Cost of sales
|
4,883
|
|
9,926
|
|
19,637
|
|
36,471
|
|
||||
Selling, general and administrative
|
4,456
|
|
4,775
|
|
17,191
|
|
18,564
|
|
||||
Restructuring charge
|
—
|
|
—
|
|
625
|
|
—
|
|
||||
Research and development
|
304
|
|
259
|
|
1,127
|
|
1,073
|
|
||||
Intangible assets abandonment
|
—
|
|
—
|
|
127
|
|
317
|
|
||||
|
9,643
|
|
14,960
|
|
38,707
|
|
56,425
|
|
||||
Operating income (loss) from continuing operations
|
(4,731
|
)
|
867
|
|
(8,240
|
)
|
110
|
|
||||
Interest income
|
19
|
|
3
|
|
41
|
|
6
|
|
||||
Foreign exchange gain
|
370
|
|
—
|
|
370
|
|
—
|
|
||||
Other expense
|
(7
|
)
|
61
|
|
(8
|
)
|
2
|
|
||||
Income (loss) from continuing operations before income taxes
|
(4,349
|
)
|
931
|
|
(7,837
|
)
|
118
|
|
||||
Income tax expense
|
9
|
|
(31
|
)
|
(14
|
)
|
(33
|
)
|
||||
Net income (loss) from continuing operations
|
(4,340
|
)
|
900
|
|
(7,851
|
)
|
85
|
|
||||
Income (loss) from discontinued operations (net of income tax benefit of $0 in 2019 and 2018)
|
—
|
|
(4
|
)
|
(1
|
)
|
(113
|
)
|
||||
Net income (loss)
|
$
|
(4,340
|
)
|
$
|
896
|
|
$
|
(7,852
|
)
|
$
|
(28
|
)
|
Net income (loss) per common share:
|
|
|
|
|
||||||||
Basic
|
|
|
|
|
||||||||
Continuing operations
|
$
|
(0.18
|
)
|
$
|
0.04
|
|
$
|
(0.32
|
)
|
$
|
—
|
|
Discontinued operations
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Basic net income (loss) per common share
|
$
|
(0.18
|
)
|
$
|
0.04
|
|
$
|
(0.32
|
)
|
$
|
—
|
|
Diluted
|
|
|
|
|
||||||||
Continuing operations
|
$
|
(0.18
|
)
|
$
|
0.04
|
|
$
|
(0.32
|
)
|
$
|
—
|
|
Discontinued operations
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Diluted net loss per common share
|
$
|
(0.18
|
)
|
$
|
0.04
|
|
$
|
(0.32
|
)
|
$
|
—
|
|
Weighted-average number of common shares outstanding:
|
|
|
|
|
||||||||
Basic
|
24,257,000
|
|
24,171,000
|
|
24,202,000
|
|
24,164,000
|
|
||||
Diluted
|
24,257,000
|
|
24,784,000
|
|
24,202,000
|
|
24,164,000
|
|
|
|
For the years ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net loss
|
|
$
|
(7,852
|
)
|
|
$
|
(28
|
)
|
|
$
|
(10,449
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
|
(493
|
)
|
|
(513
|
)
|
|
802
|
|
|||
Unrealized losses from marketable securities, net of tax
|
|
—
|
|
|
(4
|
)
|
|
(2
|
)
|
|||
Total other comprehensive income (loss)
|
|
(493
|
)
|
|
(517
|
)
|
|
800
|
|
|||
Comprehensive loss
|
|
$
|
(8,345
|
)
|
|
$
|
(545
|
)
|
|
$
|
(9,649
|
)
|
|
Twelve Months Ended
December 31, |
||||||||
|
2019
|
2018
|
2017
|
||||||
Operating Activities
|
|
|
|
||||||
Net loss
|
$
|
(7,852
|
)
|
$
|
(28
|
)
|
$
|
(10,449
|
)
|
Loss from discontinued operations
|
1
|
|
113
|
|
3,914
|
|
|||
Net income (loss) from continuing operations
|
(7,851
|
)
|
85
|
|
(6,535
|
)
|
|||
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
|
|
|
||||||
Depreciation
|
810
|
|
654
|
|
1,312
|
|
|||
Amortization
|
186
|
|
193
|
|
215
|
|
|||
Loss (gain) on disposal of equipment
|
(3
|
)
|
142
|
|
304
|
|
|||
Provision for doubtful accounts, net of recoveries
|
421
|
|
(64
|
)
|
—
|
|
|||
Deferred income taxes
|
—
|
|
2
|
|
(534
|
)
|
|||
Excess and obsolete inventory reserve
|
(131
|
)
|
78
|
|
228
|
|
|||
Intangible assets abandonment
|
127
|
|
317
|
|
2,965
|
|
|||
Stock-based compensation, net of forfeitures
|
574
|
|
233
|
|
1,389
|
|
|||
Foreign currency gain
|
370
|
|
—
|
|
—
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
||||||
Accounts receivable
|
11,415
|
|
848
|
|
113
|
|
|||
Inventories
|
818
|
|
(108
|
)
|
(134
|
)
|
|||
Prepaid expenses, other current assets and other non-current assets
|
2,239
|
|
251
|
|
(1,084
|
)
|
|||
Accounts payable
|
(7,331
|
)
|
521
|
|
2,500
|
|
|||
Accrued liabilities and other non-current liabilities
|
(5,010
|
)
|
1,897
|
|
(2,439
|
)
|
|||
Net cash provided by (used in) operating activities - continuing operations
|
(3,366
|
)
|
5,049
|
|
(1,700
|
)
|
|||
Net cash used in operating activities - discontinued operations
|
(21
|
)
|
(122
|
)
|
(1,868
|
)
|
|||
Net cash provided by (used in) operating activities
|
(3,387
|
)
|
4,927
|
|
(3,568
|
)
|
|||
Investing Activities
|
|
|
|
||||||
Purchases of equipment and patents
|
(550
|
)
|
(570
|
)
|
(492
|
)
|
|||
Proceeds from the sale of equipment
|
—
|
|
1
|
|
2
|
|
|||
Net cash used in investing activities - continuing operations
|
(550
|
)
|
(569
|
)
|
(490
|
)
|
|||
Net cash provided by investing activities - discontinued operations
|
505
|
|
—
|
|
—
|
|
|||
Net cash provided by (used in) investing activities
|
(45
|
)
|
(569
|
)
|
(490
|
)
|
|||
Financing Activities
|
|
|
|
||||||
Taxes paid on behalf of equity award participants
|
(128
|
)
|
(12
|
)
|
(258
|
)
|
|||
Net cash used in financing activities
|
(128
|
)
|
(12
|
)
|
(258
|
)
|
|||
Effect of exchange rate fluctuations on cash
|
(998
|
)
|
(673
|
)
|
856
|
|
|||
Net decrease in cash, cash equivalents and restricted cash
|
(4,558
|
)
|
3,673
|
|
(3,460
|
)
|
|||
Cash, cash equivalents, and restricted cash at beginning of period
|
18,059
|
|
14,386
|
|
17,846
|
|
|||
Cash, cash equivalents and restricted cash at end of period
|
$
|
13,501
|
|
$
|
18,059
|
|
$
|
14,386
|
|
Three months ended December 31, 2019
|
Air Pollution
Control Segment |
FUEL CHEM
Segment |
Other
|
Total
|
||||||||
Revenues from external customers
|
$
|
1,674
|
|
$
|
3,238
|
|
$
|
—
|
|
$
|
4,912
|
|
Cost of sales
|
(3,194
|
)
|
(1,689
|
)
|
—
|
|
(4,883
|
)
|
||||
Gross margin
|
(1,520
|
)
|
1,549
|
|
—
|
|
29
|
|
||||
Selling, general and administrative
|
—
|
|
—
|
|
(4,456
|
)
|
(4,456
|
)
|
||||
Research and development
|
—
|
|
—
|
|
(304
|
)
|
(304
|
)
|
||||
Operating income (loss) from continuing operations
|
$
|
(1,520
|
)
|
$
|
1,549
|
|
$
|
(4,760
|
)
|
$
|
(4,731
|
)
|
Three months ended December 31, 2018
|
Air Pollution
Control Segment |
FUEL CHEM
Segment |
Other
|
Total
|
||||||||
Revenues from external customers
|
$
|
10,545
|
|
$
|
5,282
|
|
$
|
—
|
|
$
|
15,827
|
|
Cost of sales
|
(7,342
|
)
|
(2,584
|
)
|
—
|
|
(9,926
|
)
|
||||
Gross margin
|
3,203
|
|
2,698
|
|
—
|
|
5,901
|
|
||||
Selling, general and administrative
|
—
|
|
—
|
|
(4,775
|
)
|
(4,775
|
)
|
||||
Research and development
|
—
|
|
—
|
|
(259
|
)
|
(259
|
)
|
||||
Operating income (loss) from continuing operations
|
$
|
3,203
|
|
$
|
2,698
|
|
$
|
(5,034
|
)
|
$
|
867
|
|
Twelve months ended December 31, 2019
|
Air Pollution
Control Segment |
FUEL CHEM
Segment |
Other
|
Total
|
||||||||
Revenues from external customers
|
$
|
14,082
|
|
$
|
16,385
|
|
$
|
—
|
|
$
|
30,467
|
|
Cost of sales
|
(11,256
|
)
|
(8,381
|
)
|
—
|
|
(19,637
|
)
|
||||
Gross margin
|
2,826
|
|
8,004
|
|
—
|
|
10,830
|
|
||||
Selling, general and administrative
|
—
|
|
—
|
|
(17,191
|
)
|
(17,191
|
)
|
||||
Restructuring charge
|
(625
|
)
|
—
|
|
—
|
|
(625
|
)
|
||||
Research and development
|
—
|
|
—
|
|
(1,127
|
)
|
(1,127
|
)
|
||||
Intangible assets abandonment
|
—
|
|
—
|
|
(127
|
)
|
(127
|
)
|
||||
Operating income (loss) from continuing operations
|
$
|
2,201
|
|
$
|
8,004
|
|
$
|
(18,445
|
)
|
$
|
(8,240
|
)
|
Twelve months ended December 31, 2018
|
Air Pollution
Control Segment |
FUEL CHEM
Segment |
Other
|
Total
|
||||||||
Revenues from external customers
|
$
|
38,417
|
|
$
|
18,118
|
|
$
|
—
|
|
$
|
56,535
|
|
Cost of sales
|
(27,382
|
)
|
(9,089
|
)
|
—
|
|
(36,471
|
)
|
||||
Gross margin
|
11,035
|
|
9,029
|
|
—
|
|
20,064
|
|
||||
Selling, general and administrative
|
—
|
|
—
|
|
(18,564
|
)
|
(18,564
|
)
|
||||
Research and development
|
—
|
|
—
|
|
(1,073
|
)
|
(1,073
|
)
|
||||
Intangible assets abandonment
|
—
|
|
—
|
|
(317
|
)
|
(317
|
)
|
||||
Operating income (loss) from continuing operations
|
$
|
11,035
|
|
$
|
9,029
|
|
$
|
(19,954
|
)
|
$
|
110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
United States
|
|
$
|
25,882
|
|
|
$
|
43,887
|
|
|
$
|
29,510
|
|
Foreign
|
|
4,585
|
|
|
12,648
|
|
|
15,656
|
|
|||
|
|
$
|
30,467
|
|
|
$
|
56,535
|
|
|
$
|
45,166
|
|
As of December 31,
|
|
2019
|
|
2018
|
||||
Assets:
|
|
|
|
|
||||
United States
|
|
$
|
23,460
|
|
|
$
|
36,784
|
|
Foreign
|
|
8,764
|
|
|
14,935
|
|
||
|
|
$
|
32,224
|
|
|
$
|
51,719
|
|
|
Three Months Ended December 31,
|
Twelve Months Ended December 31,
|
||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||
Net income (loss)
|
$
|
(4,340
|
)
|
$
|
896
|
|
$
|
(7,852
|
)
|
$
|
(28
|
)
|
Interest income
|
(19
|
)
|
(3
|
)
|
(41
|
)
|
(6
|
)
|
||||
Income tax expense
|
(9
|
)
|
31
|
|
14
|
|
33
|
|
||||
Depreciation expense
|
166
|
|
152
|
|
810
|
|
654
|
|
||||
Amortization expense
|
68
|
|
35
|
|
186
|
|
193
|
|
||||
EBITDA
|
(4,134
|
)
|
1,111
|
|
(6,883
|
)
|
846
|
|
||||
Intangible assets abandonment
|
—
|
|
—
|
|
127
|
|
317
|
|
||||
Intangible assets abandonment (discontinued operations)
|
—
|
|
—
|
|
—
|
|
57
|
|
||||
Stock compensation expense
|
217
|
|
98
|
|
574
|
|
233
|
|
||||
ADJUSTED EBITDA
|
(3,917
|
)
|
1,209
|
|
(6,182
|
)
|
1,453
|
|