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) or
|
•
|
(201) 493-6749 (International)
|
|
March 31,
2020 |
December 31,
2019 |
||||
|
|
|
||||
ASSETS
|
|
|
||||
Current assets:
|
|
|
||||
Cash and cash equivalents
|
$
|
8,003
|
|
$
|
10,914
|
|
Restricted cash
|
2,771
|
|
2,080
|
|
||
Accounts receivable, net
|
5,620
|
|
6,473
|
|
||
Inventories, net
|
367
|
|
264
|
|
||
Prepaid expenses and other current assets
|
1,729
|
|
1,879
|
|
||
Income taxes receivable
|
69
|
|
—
|
|
||
Total current assets
|
18,559
|
|
21,610
|
|
||
Property and equipment, net of accumulated depreciation of $26,326 and $26,174, respectively
|
5,500
|
|
5,662
|
|
||
Goodwill
|
2,116
|
|
2,116
|
|
||
Other intangible assets, net of accumulated amortization of $1,033 and $991, respectively
|
877
|
|
906
|
|
||
Restricted cash
|
362
|
|
507
|
|
||
Right-of-use operating lease assets
|
1,095
|
|
980
|
|
||
Other assets
|
412
|
|
443
|
|
||
Total assets
|
$
|
28,921
|
|
$
|
32,224
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
||||
Current liabilities:
|
|
|
||||
Accounts payable
|
$
|
1,793
|
|
$
|
2,117
|
|
Accrued liabilities:
|
|
|
||||
Operating lease liabilities - current
|
284
|
|
300
|
|
||
Employee compensation
|
609
|
|
519
|
|
||
Income taxes payable
|
36
|
|
—
|
|
||
Other accrued liabilities
|
1,510
|
|
1,976
|
|
||
Total current liabilities
|
4,232
|
|
4,912
|
|
||
Operating lease liabilities - non-current
|
794
|
|
680
|
|
||
Deferred income taxes, net
|
172
|
|
171
|
|
||
Other liabilities
|
270
|
|
286
|
|
||
Total liabilities
|
5,468
|
|
6,049
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 13)
|
|
|
||||
Stockholders’ equity:
|
|
|
||||
Common stock, $.01 par value, 40,000,000 shares authorized, 25,404,299 and 25,053,480 shares issued, and 24,636,390 and 24,592,578 shares outstanding, respectively
|
254
|
|
254
|
|
||
Additional paid-in capital
|
139,641
|
|
139,560
|
|
||
Accumulated deficit
|
(112,892
|
)
|
(110,325
|
)
|
||
Accumulated other comprehensive loss
|
(2,009
|
)
|
(1,778
|
)
|
||
Nil coupon perpetual loan notes
|
76
|
|
76
|
|
||
Treasury stock, at cost
|
(1,617
|
)
|
(1,612
|
)
|
||
Total stockholders’ equity
|
23,453
|
|
26,175
|
|
||
Total liabilities and stockholders’ equity
|
$
|
28,921
|
|
$
|
32,224
|
|
|
Three Months Ended
March 31, |
|||||
|
2020
|
2019
|
||||
Revenues
|
$
|
3,778
|
|
$
|
10,155
|
|
Costs and expenses:
|
|
|
||||
Cost of sales
|
2,251
|
|
6,141
|
|
||
Selling, general and administrative
|
3,886
|
|
4,458
|
|
||
Restructuring charge
|
—
|
|
595
|
|
||
Research and development
|
324
|
|
266
|
|
||
|
6,461
|
|
11,460
|
|
||
Operating loss from continuing operations
|
(2,683
|
)
|
(1,305
|
)
|
||
Interest expense
|
(3
|
)
|
(1
|
)
|
||
Interest income
|
11
|
|
2
|
|
||
Other income
|
226
|
|
25
|
|
||
Loss from continuing operations before income taxes
|
(2,449
|
)
|
(1,279
|
)
|
||
Income tax expense
|
(118
|
)
|
—
|
|
||
Net loss from continuing operations
|
(2,567
|
)
|
(1,279
|
)
|
||
Loss from discontinued operations (net of income tax benefit of $0 in 2020 and 2019)
|
—
|
|
(10
|
)
|
||
Net loss
|
$
|
(2,567
|
)
|
$
|
(1,289
|
)
|
Net loss per common share:
|
|
|
||||
Basic
|
|
|
|
|
||
Continuing operations
|
$
|
(0.10
|
)
|
$
|
(0.05
|
)
|
Discontinued operations
|
$
|
—
|
|
$
|
—
|
|
Basic net loss per common share
|
$
|
(0.10
|
)
|
$
|
(0.05
|
)
|
Diluted
|
|
|
||||
Continuing operations
|
$
|
(0.10
|
)
|
$
|
(0.05
|
)
|
Discontinued operations
|
$
|
—
|
|
$
|
—
|
|
Diluted net loss per common share
|
$
|
(0.10
|
)
|
$
|
(0.05
|
)
|
Weighted-average number of common shares outstanding:
|
|
|
||||
Basic
|
24,597,000
|
|
24,177,000
|
|
||
Diluted
|
24,597,000
|
|
24,177,000
|
|
|
Three Months Ended
March 31, |
|||||
|
2020
|
2019
|
||||
Net loss
|
$
|
(2,567
|
)
|
$
|
(1,289
|
)
|
Other comprehensive income loss:
|
|
|
||||
Foreign currency translation adjustments
|
(231
|
)
|
104
|
|
||
Comprehensive loss
|
$
|
(2,798
|
)
|
$
|
(1,185
|
)
|
|
Three Months Ended
March 31, |
|||||
|
2020
|
2019
|
||||
Operating Activities
|
|
|
||||
Net loss
|
$
|
(2,567
|
)
|
$
|
(1,289
|
)
|
Loss from discontinued operations
|
—
|
|
10
|
|
||
Net loss from continuing operations
|
(2,567
|
)
|
(1,279
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
||||
Depreciation
|
163
|
|
244
|
|
||
Amortization
|
43
|
|
32
|
|
||
Stock-based compensation, net of forfeitures
|
81
|
|
96
|
|
||
Changes in operating assets and liabilities:
|
|
|
||||
Accounts receivable
|
795
|
|
720
|
|
||
Inventories
|
(104
|
)
|
154
|
|
||
Prepaid expenses, other current assets and other non-current assets
|
99
|
|
187
|
|
||
Accounts payable
|
(313
|
)
|
(3,174
|
)
|
||
Accrued liabilities and other non-current liabilities
|
(102
|
)
|
(1,870
|
)
|
||
Net cash used in operating activities - continuing operations
|
(1,905
|
)
|
(4,890
|
)
|
||
Net cash used in operating activities - discontinued operations
|
—
|
|
(10
|
)
|
||
Net cash used in operating activities
|
(1,905
|
)
|
(4,900
|
)
|
||
Investing Activities
|
|
|
||||
Purchases of equipment and patents
|
(14
|
)
|
(279
|
)
|
||
Proceeds from the sale of equipment
|
—
|
|
55
|
|
||
Net cash used in investing activities
|
(14
|
)
|
(224
|
)
|
||
Financing Activities
|
|
|
||||
Taxes paid on behalf of equity award participants
|
(5
|
)
|
(2
|
)
|
||
Net cash used in financing activities
|
(5
|
)
|
(2
|
)
|
||
Effect of exchange rate fluctuations on cash
|
(441
|
)
|
222
|
|
||
Net decrease in cash, cash equivalents and restricted cash
|
(2,365
|
)
|
(4,904
|
)
|
||
Cash, cash equivalents, and restricted cash at beginning of period (Note 2)
|
13,501
|
|
18,059
|
|
||
Cash, cash equivalents and restricted cash at end of period (Note 2)
|
$
|
11,136
|
|
$
|
13,155
|
|
Three months ended March 31, 2020
|
Air Pollution
Control Segment |
FUEL CHEM
Segment |
Other
|
Total
|
||||||||
Revenues from external customers
|
$
|
1,196
|
|
$
|
2,582
|
|
$
|
—
|
|
$
|
3,778
|
|
Cost of sales
|
(765
|
)
|
(1,486
|
)
|
—
|
|
(2,251
|
)
|
||||
Gross margin
|
431
|
|
1,096
|
|
—
|
|
1,527
|
|
||||
Selling, general and administrative
|
—
|
|
—
|
|
(3,886
|
)
|
(3,886
|
)
|
||||
Research and development
|
—
|
|
—
|
|
(324
|
)
|
(324
|
)
|
||||
Operating income (loss) from continuing operations
|
$
|
431
|
|
$
|
1,096
|
|
$
|
(4,210
|
)
|
$
|
(2,683
|
)
|
Three months ended March 31, 2019
|
Air Pollution
Control Segment |
FUEL CHEM
Segment |
Other
|
Total
|
||||||||
Revenues from external customers
|
$
|
5,789
|
|
$
|
4,366
|
|
$
|
—
|
|
$
|
10,155
|
|
Cost of sales
|
(3,889
|
)
|
(2,252
|
)
|
—
|
|
(6,141
|
)
|
||||
Gross margin
|
1,900
|
|
2,114
|
|
—
|
|
4,014
|
|
||||
Selling, general and administrative
|
—
|
|
—
|
|
(4,458
|
)
|
(4,458
|
)
|
||||
Restructuring Charge
|
(595
|
)
|
|
—
|
|
(595
|
)
|
|||||
Research and development
|
—
|
|
—
|
|
(266
|
)
|
(266
|
)
|
||||
Operating income (loss) from continuing operations
|
$
|
1,305
|
|
$
|
2,114
|
|
$
|
(4,724
|
)
|
$
|
(1,305
|
)
|
|
Three Months Ended
March 31, |
|||
|
2020
|
2019
|
||
Revenues:
|
|
|
||
United States
|
3,097
|
|
8,815
|
|
Foreign
|
681
|
|
1,340
|
|
|
3,778
|
|
10,155
|
|
|
March 31,
2020 |
December 31,
2019 |
||||
Assets:
|
|
|
||||
United States
|
$
|
21,887
|
|
$
|
23,460
|
|
Foreign
|
7,034
|
|
8,764
|
|
||
|
$
|
28,921
|
|
$
|
32,224
|
|
|
Three Months Ended March 31,
|
|||||
|
2020
|
2019
|
||||
Net income (loss)
|
$
|
(2,567
|
)
|
$
|
(1,289
|
)
|
Interest income
|
(8
|
)
|
(1
|
)
|
||
Income tax expense
|
118
|
|
—
|
|
||
Depreciation expense
|
163
|
|
244
|
|
||
Amortization expense
|
43
|
|
32
|
|
||
EBITDA
|
(2,251
|
)
|
(1,014
|
)
|
||
Stock compensation expense
|
81
|
|
96
|
|
||
ADJUSTED EBITDA
|
(2,170
|
)
|
(918
|
)
|