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
|
|
June 30,
2020 |
December 31,
2019 |
||||
ASSETS
|
|
|
||||
Current assets:
|
|
|
||||
Cash and cash equivalents
|
$
|
8,254
|
|
$
|
10,914
|
|
Restricted cash
|
2,639
|
|
2,080
|
|
||
Accounts receivable, net
|
5,658
|
|
6,473
|
|
||
Inventories, net
|
342
|
|
264
|
|
||
Prepaid expenses and other current assets
|
1,410
|
|
1,879
|
|
||
Income taxes receivable
|
69
|
|
—
|
|
||
Total current assets
|
18,372
|
|
21,610
|
|
||
Property and equipment, net of accumulated depreciation of $26,503 and $26,174, respectively
|
5,437
|
|
5,662
|
|
||
Goodwill
|
2,116
|
|
2,116
|
|
||
Other intangible assets, net of accumulated amortization of $6,756 and $6,671, respectively
|
838
|
|
906
|
|
||
Restricted cash
|
364
|
|
507
|
|
||
Right-of-use operating lease assets
|
1,035
|
|
980
|
|
||
Other assets
|
395
|
|
443
|
|
||
Total assets
|
$
|
28,557
|
|
$
|
32,224
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
||||
Current liabilities:
|
|
|
||||
Accounts payable
|
$
|
1,585
|
|
$
|
2,117
|
|
Current portion of long-term borrowings
|
684
|
|
—
|
|
||
Accrued liabilities:
|
|
|
||||
Operating lease liabilities - current
|
279
|
|
300
|
|
||
Employee compensation
|
679
|
|
519
|
|
||
Income taxes payable
|
36
|
|
—
|
|
||
Other accrued liabilities
|
2,104
|
|
1,976
|
|
||
Total current liabilities
|
5,367
|
|
4,912
|
|
||
Operating lease liabilities - non-current
|
738
|
|
680
|
|
||
Long-term borrowings, net of current portion
|
872
|
|
—
|
|
||
Deferred income taxes, net
|
172
|
|
171
|
|
||
Other liabilities
|
278
|
|
286
|
|
||
Total liabilities
|
7,427
|
|
6,049
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 13)
|
|
|
||||
Stockholders’ equity:
|
|
|
||||
Common stock, $.01 par value, 40,000,000 shares authorized, 25,476,420 and 25,053,480 shares issued, and 24,701,159 and 24,592,578 shares outstanding, respectively
|
255
|
|
254
|
|
||
Additional paid-in capital
|
139,710
|
|
139,560
|
|
||
Accumulated deficit
|
(115,436
|
)
|
(110,325
|
)
|
||
Accumulated other comprehensive loss
|
(1,857
|
)
|
(1,778
|
)
|
||
Nil coupon perpetual loan notes
|
76
|
|
76
|
|
||
Treasury stock, at cost
|
(1,618
|
)
|
(1,612
|
)
|
||
Total stockholders’ equity
|
21,130
|
|
26,175
|
|
||
Total liabilities and stockholders’ equity
|
$
|
28,557
|
|
$
|
32,224
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||
Revenues
|
$
|
4,401
|
|
$
|
8,948
|
|
$
|
8,179
|
|
$
|
19,103
|
|
Costs and expenses:
|
|
|
|
|
||||||||
Cost of sales
|
3,799
|
|
5,050
|
|
6,050
|
|
11,191
|
|
||||
Selling, general and administrative
|
2,755
|
|
4,455
|
|
6,641
|
|
8,913
|
|
||||
Restructuring charge
|
—
|
|
30
|
|
—
|
|
625
|
|
||||
Research and development
|
271
|
|
205
|
|
595
|
|
471
|
|
||||
Intangible assets abandonment
|
—
|
|
51
|
|
—
|
|
51
|
|
||||
|
6,825
|
|
9,791
|
|
13,286
|
|
21,251
|
|
||||
Operating loss from continuing operations
|
(2,424
|
)
|
(843
|
)
|
(5,107
|
)
|
(2,148
|
)
|
||||
Interest expense
|
(3
|
)
|
(3
|
)
|
(6
|
)
|
(4
|
)
|
||||
Interest income
|
2
|
|
9
|
|
13
|
|
11
|
|
||||
Other income (expense), net
|
(88
|
)
|
(97
|
)
|
138
|
|
(72
|
)
|
||||
Loss from continuing operations before income taxes
|
(2,513
|
)
|
(934
|
)
|
(4,962
|
)
|
(2,213
|
)
|
||||
Income tax expense
|
(31
|
)
|
(2
|
)
|
(149
|
)
|
(2
|
)
|
||||
Net loss from continuing operations
|
(2,544
|
)
|
(936
|
)
|
(5,111
|
)
|
(2,215
|
)
|
||||
Loss from discontinued operations
|
—
|
|
(9
|
)
|
—
|
|
(19
|
)
|
||||
Net loss
|
$
|
(2,544
|
)
|
$
|
(945
|
)
|
$
|
(5,111
|
)
|
$
|
(2,234
|
)
|
Net loss per common share:
|
|
|
|
|
||||||||
Basic
|
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
(0.10
|
)
|
$
|
(0.04
|
)
|
$
|
(0.21
|
)
|
$
|
(0.09
|
)
|
Discontinued operations
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Basic net loss per common share
|
$
|
(0.10
|
)
|
$
|
(0.04
|
)
|
$
|
(0.21
|
)
|
$
|
(0.09
|
)
|
Diluted
|
|
|
|
|
||||||||
Continuing operations
|
$
|
(0.10
|
)
|
$
|
(0.04
|
)
|
$
|
(0.21
|
)
|
$
|
(0.09
|
)
|
Discontinued operations
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Diluted net loss per common share
|
$
|
(0.10
|
)
|
$
|
(0.04
|
)
|
$
|
(0.21
|
)
|
$
|
(0.09
|
)
|
Weighted-average number of common shares outstanding:
|
|
|
|
|
||||||||
Basic
|
24,668,000
|
|
24,187,000
|
|
24,633,000
|
|
24,182,000
|
|
||||
Diluted
|
24,668,000
|
|
24,187,000
|
|
24,633,000
|
|
24,182,000
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||
Net loss
|
$
|
(2,544
|
)
|
$
|
(945
|
)
|
$
|
(5,111
|
)
|
$
|
(2,234
|
)
|
Other comprehensive income loss:
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
152
|
|
(43
|
)
|
(79
|
)
|
61
|
|
||||
Comprehensive loss
|
$
|
(2,392
|
)
|
$
|
(988
|
)
|
$
|
(5,190
|
)
|
$
|
(2,173
|
)
|
|
Six Months Ended
June 30, |
|||||
|
2020
|
2019
|
||||
Operating Activities
|
|
|
||||
Net loss
|
$
|
(5,111
|
)
|
$
|
(2,234
|
)
|
Loss from discontinued operations
|
—
|
|
19
|
|
||
Net loss from continuing operations
|
(5,111
|
)
|
(2,215
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
||||
Depreciation
|
329
|
|
478
|
|
||
Amortization
|
85
|
|
68
|
|
||
Loss (gain) on disposal of equipment
|
—
|
|
2
|
|
||
Provision for doubtful accounts, net of recoveries
|
(1,082
|
)
|
—
|
|
||
Intangible assets abandonment
|
—
|
|
51
|
|
||
Stock-based compensation, net of forfeitures
|
150
|
|
219
|
|
||
Changes in operating assets and liabilities:
|
|
|
||||
Accounts receivable
|
1,863
|
|
3,870
|
|
||
Inventories
|
(78
|
)
|
640
|
|
||
Prepaid expenses, other current assets and other non-current assets
|
424
|
|
1,163
|
|
||
Accounts payable
|
(531
|
)
|
(5,595
|
)
|
||
Accrued liabilities and other non-current liabilities
|
537
|
|
(1,485
|
)
|
||
Net cash used in operating activities - continuing operations
|
(3,414
|
)
|
(2,804
|
)
|
||
Net cash used in operating activities - discontinued operations
|
—
|
|
(19
|
)
|
||
Net cash used in operating activities
|
(3,414
|
)
|
(2,823
|
)
|
||
Investing Activities
|
|
|
||||
Purchases of equipment and patents
|
(122
|
)
|
(359
|
)
|
||
Net cash used in investing activities
|
(122
|
)
|
(359
|
)
|
||
Financing Activities
|
|
|
||||
Proceeds from borrowings
|
1,556
|
|
—
|
|
||
Taxes paid on behalf of equity award participants
|
(6
|
)
|
(2
|
)
|
||
Net cash used in financing activities
|
1,550
|
|
(2
|
)
|
||
Effect of exchange rate fluctuations on cash
|
(258
|
)
|
44
|
|
||
Net decrease in cash, cash equivalents and restricted cash
|
(2,244
|
)
|
(3,140
|
)
|
||
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)
|
$
|
11,257
|
|
$
|
14,919
|
|
Three months ended June 30, 2020
|
Air Pollution
Control Segment |
FUEL CHEM
Segment |
Other
|
Total
|
||||||||
Revenues from external customers
|
$
|
1,937
|
|
$
|
2,464
|
|
$
|
—
|
|
$
|
4,401
|
|
Cost of sales
|
(2,320
|
)
|
(1,479
|
)
|
—
|
|
(3,799
|
)
|
||||
Gross margin
|
(383
|
)
|
985
|
|
—
|
|
602
|
|
||||
Selling, general and administrative
|
—
|
|
—
|
|
(2,755
|
)
|
(2,755
|
)
|
||||
Research and development
|
—
|
|
—
|
|
(271
|
)
|
(271
|
)
|
||||
Operating (loss) income from continuing operations
|
$
|
(383
|
)
|
$
|
985
|
|
$
|
(3,026
|
)
|
$
|
(2,424
|
)
|
Three months ended June 30, 2019
|
Air Pollution
Control Segment |
FUEL CHEM
Segment |
Other
|
Total
|
||||||||
Revenues from external customers
|
$
|
4,803
|
|
$
|
4,145
|
|
$
|
—
|
|
$
|
8,948
|
|
Cost of sales
|
(2,975
|
)
|
(2,075
|
)
|
—
|
|
(5,050
|
)
|
||||
Gross margin
|
1,828
|
|
2,070
|
|
—
|
|
3,898
|
|
||||
Selling, general and administrative
|
—
|
|
—
|
|
(4,455
|
)
|
(4,455
|
)
|
||||
Restructuring Charge
|
(30
|
)
|
|
—
|
|
(30
|
)
|
|||||
Research and development
|
—
|
|
—
|
|
(205
|
)
|
(205
|
)
|
||||
Intangible assets abandonment
|
—
|
|
—
|
|
(51
|
)
|
(51
|
)
|
||||
Operating income (loss) from continuing operations
|
$
|
1,798
|
|
$
|
2,070
|
|
$
|
(4,711
|
)
|
$
|
(843
|
)
|
Six months ended June 30, 2020
|
Air Pollution
Control Segment |
FUEL CHEM
Segment |
Other
|
Total
|
||||||||
Revenues from external customers
|
$
|
3,133
|
|
$
|
5,046
|
|
$
|
—
|
|
$
|
8,179
|
|
Cost of sales
|
(3,086
|
)
|
(2,964
|
)
|
—
|
|
(6,050
|
)
|
||||
Gross margin
|
47
|
|
2,082
|
|
—
|
|
2,129
|
|
||||
Selling, general and administrative
|
—
|
|
—
|
|
(6,641
|
)
|
(6,641
|
)
|
||||
Research and development
|
—
|
|
—
|
|
(595
|
)
|
(595
|
)
|
||||
Operating (loss) income from continuing operations
|
$
|
47
|
|
$
|
2,082
|
|
$
|
(7,236
|
)
|
$
|
(5,107
|
)
|
Six months ended June 30, 2019
|
Air Pollution
Control Segment |
FUEL CHEM
Segment |
Other
|
Total
|
||||||||
Revenues from external customers
|
$
|
10,592
|
|
$
|
8,511
|
|
$
|
—
|
|
$
|
19,103
|
|
Cost of sales
|
(6,864
|
)
|
(4,327
|
)
|
—
|
|
(11,191
|
)
|
||||
Gross margin
|
3,728
|
|
4,184
|
|
—
|
|
7,912
|
|
||||
Selling, general and administrative
|
—
|
|
—
|
|
(8,913
|
)
|
(8,913
|
)
|
||||
Restructuring Charge
|
(625
|
)
|
—
|
|
—
|
|
(625
|
)
|
||||
Research and development
|
—
|
|
—
|
|
(471
|
)
|
(471
|
)
|
||||
Intangible assets abandonment
|
—
|
|
—
|
|
(51
|
)
|
(51
|
)
|
||||
Operating income (loss) from continuing operations
|
$
|
3,103
|
|
$
|
4,184
|
|
$
|
(9,435
|
)
|
$
|
(2,148
|
)
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||
|
2020
|
2019
|
2020
|
2019
|
||||
Revenues:
|
|
|
|
|
||||
United States
|
3,310
|
|
7,562
|
|
6,407
|
|
16,377
|
|
Foreign
|
1,091
|
|
1,386
|
|
1,772
|
|
2,726
|
|
|
4,401
|
|
8,948
|
|
8,179
|
|
19,103
|
|
|
June 30,
2020 |
December 31,
2019 |
||||
Assets:
|
|
|
||||
United States
|
$
|
22,090
|
|
$
|
23,460
|
|
Foreign
|
6,467
|
|
8,764
|
|
||
|
$
|
28,557
|
|
$
|
32,224
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||
Net income (loss)
|
$
|
(2,544
|
)
|
$
|
(945
|
)
|
$
|
(5,111
|
)
|
$
|
(2,234
|
)
|
Interest (income) expense, net
|
1
|
|
(9
|
)
|
(7
|
)
|
(10
|
)
|
||||
Income tax expense
|
31
|
|
2
|
|
149
|
|
2
|
|
||||
Depreciation expense
|
166
|
|
234
|
|
329
|
|
478
|
|
||||
Amortization expense
|
42
|
|
36
|
|
85
|
|
68
|
|
||||
EBITDA
|
(2,304
|
)
|
(682
|
)
|
(4,555
|
)
|
(1,696
|
)
|
||||
Intangible assets abandonment
|
—
|
|
51
|
|
—
|
|
51
|
|
||||
Stock compensation expense
|
69
|
|
123
|
|
150
|
|
219
|
|
||||
ADJUSTED EBITDA
|
(2,235
|
)
|
(508
|
)
|
(4,405
|
)
|
(1,426
|
)
|