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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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20-5657551
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(State or other jurisdiction of
incorporation of organization)
|
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(I.R.S. Employer
Identification Number)
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Large accelerated filer
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¨
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Accelerated filer
|
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¨
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Non-accelerated filer
|
|
x
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Smaller reporting company
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x
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|
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Emerging growth company
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¨
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Page
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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
|
)
|
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Accumulated Deficit
|
|
Accumulated
Other Comprehensive Income (Loss) |
|
Nil
Coupon Perpetual Loan Notes |
|
Treasury Stock
|
|
Total
|
|||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2018
|
|
24,170
|
|
|
$
|
248
|
|
|
$
|
138,992
|
|
|
$
|
(102,495
|
)
|
|
$
|
(1,285
|
)
|
|
$
|
76
|
|
|
$
|
(1,484
|
)
|
|
$
|
34,052
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,289
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,289
|
)
|
|||||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
104
|
|
|
—
|
|
|
—
|
|
|
104
|
|
|||||||
Stock compensation expense
|
|
—
|
|
|
—
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|||||||
Common shares issued upon vesting of restricted stock units
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Treasury shares withheld
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
(2
|
)
|
|
(2
|
)
|
||||||
Adoption of ASC 842
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
|
|
|
|
|
|
22
|
|
||||||||||
Balance at March 31, 2019
|
|
24,186
|
|
|
$
|
248
|
|
|
$
|
139,088
|
|
|
$
|
(103,762
|
)
|
|
$
|
(1,181
|
)
|
|
$
|
76
|
|
|
$
|
(1,486
|
)
|
|
$
|
32,983
|
|
Net Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
(945
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(945
|
)
|
||||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
|||||||
Stock compensation expense
|
|
—
|
|
|
—
|
|
|
123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123
|
|
|||||||
Balance at June 30, 2019
|
|
24,186
|
|
|
$
|
248
|
|
|
$
|
139,211
|
|
|
$
|
(104,707
|
)
|
|
$
|
(1,224
|
)
|
|
$
|
76
|
|
|
$
|
(1,486
|
)
|
|
$
|
32,118
|
|
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Accumulated Deficit
|
|
Accumulated
Other Comprehensive Income (Loss) |
|
Nil
Coupon Perpetual Loan Notes |
|
Treasury Stock
|
|
Total
|
|||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2019
|
|
24,592
|
|
|
$
|
254
|
|
|
$
|
139,560
|
|
|
$
|
(110,325
|
)
|
|
$
|
(1,778
|
)
|
|
$
|
76
|
|
|
$
|
(1,612
|
)
|
|
$
|
26,175
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,567
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,567
|
)
|
|||||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(231
|
)
|
|
—
|
|
|
—
|
|
|
(231
|
)
|
|||||||
Stock compensation expense
|
|
—
|
|
|
—
|
|
|
81
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81
|
|
|||||||
Common shares issued upon vesting of restricted stock units
|
|
55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Treasury shares withheld
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|||||||
Balance at March 31, 2020
|
|
24,636
|
|
|
$
|
254
|
|
|
$
|
139,641
|
|
|
$
|
(112,892
|
)
|
|
$
|
(2,009
|
)
|
|
$
|
76
|
|
|
$
|
(1,617
|
)
|
|
$
|
23,453
|
|
Net Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
(2,544
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,544
|
)
|
||||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
152
|
|
|
—
|
|
|
—
|
|
|
152
|
|
|||||||
Stock compensation expense
|
|
—
|
|
|
—
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|||||||
Common shares issued upon vesting of restricted stock units
|
|
66
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
(1
|
)
|
|
—
|
|
||||||
Treasury shares withheld
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Balance at June 30, 2020
|
|
24,701
|
|
|
$
|
255
|
|
|
$
|
139,710
|
|
|
$
|
(115,436
|
)
|
|
$
|
(1,857
|
)
|
|
$
|
76
|
|
|
$
|
(1,618
|
)
|
|
$
|
21,130
|
|
|
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
|
|
|
June 30,
2020 |
June 30,
2019 |
||||
Cash and cash equivalents
|
$
|
8,254
|
|
$
|
11,664
|
|
Restricted cash included in current assets
|
2,639
|
|
2,768
|
|
||
Restricted cash included in long-term assets
|
364
|
|
487
|
|
||
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows
|
$
|
11,257
|
|
$
|
14,919
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||
Air Pollution Control
|
|
|
|
|
||||||||
Technology solutions
|
$
|
1,469
|
|
$
|
3,795
|
|
$
|
2,198
|
|
$
|
8,536
|
|
Spare parts
|
214
|
|
384
|
|
413
|
|
533
|
|
||||
Ancillary revenue
|
254
|
|
624
|
|
522
|
|
1,523
|
|
||||
Total Air Pollution Control Technology revenues
|
1,937
|
|
4,803
|
|
3,133
|
|
10,592
|
|
||||
FUEL CHEM
|
|
|
|
|
||||||||
FUEL CHEM technology solutions
|
2,464
|
|
4,145
|
|
5,046
|
|
8,511
|
|
||||
Total Revenues
|
$
|
4,401
|
|
$
|
8,948
|
|
$
|
8,179
|
|
$
|
19,103
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||
United States
|
$
|
3,310
|
|
$
|
7,562
|
|
$
|
6,407
|
|
$
|
16,377
|
|
Foreign Revenues
|
|
|
|
|
||||||||
Latin America
|
59
|
|
17
|
|
205
|
|
192
|
|
||||
Europe
|
197
|
|
668
|
|
590
|
|
1,285
|
|
||||
Asia
|
835
|
|
701
|
|
977
|
|
1,249
|
|
||||
Total Foreign Revenues
|
1,091
|
|
1,386
|
|
1,772
|
|
2,726
|
|
||||
Total Revenues
|
$
|
4,401
|
|
$
|
8,948
|
|
$
|
8,179
|
|
$
|
19,103
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||
Products transferred at a point in time
|
$
|
2,932
|
|
$
|
5,153
|
|
$
|
5,981
|
|
$
|
10,567
|
|
Products and services transferred over time
|
1,469
|
|
3,795
|
|
2,198
|
|
8,536
|
|
||||
Total Revenues
|
$
|
4,401
|
|
$
|
8,948
|
|
$
|
8,179
|
|
$
|
19,103
|
|
|
As of
|
||||||
|
June 30, 2020
|
|
December 31, 2019
|
||||
Trade receivables
|
$
|
4,592
|
|
|
$
|
6,425
|
|
Unbilled receivables
|
1,763
|
|
|
1,857
|
|
||
Other short-term receivables
|
19
|
|
|
7
|
|
||
Allowance for doubtful accounts
|
(716
|
)
|
|
(1,816
|
)
|
||
Total accounts receivable
|
$
|
5,658
|
|
|
$
|
6,473
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||
Total revenues
|
$
|
3
|
|
$
|
(28
|
)
|
$
|
5
|
|
$
|
310
|
|
Net income (loss)
|
(85
|
)
|
(540
|
)
|
42
|
|
(1,390
|
)
|
|
As of
|
|||||
|
June 30, 2020
|
December 31, 2019
|
||||
Total assets
|
$
|
3,072
|
|
$
|
4,249
|
|
Total liabilities
|
352
|
|
399
|
|
||
Total net assets
|
$
|
2,720
|
|
$
|
3,850
|
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||
Restructuring liability at beginning of period
|
$
|
—
|
|
$
|
373
|
|
$
|
—
|
|
$
|
65
|
|
Amounts expensed
|
—
|
|
30
|
|
—
|
|
625
|
|
||||
Amounts paid
|
—
|
|
(248
|
)
|
—
|
|
(535
|
)
|
||||
Restructuring liability at end of period
|
$
|
—
|
|
$
|
155
|
|
$
|
—
|
|
$
|
155
|
|
|
Three months ended June 30,
|
Six Months Ended
June 30, |
||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||
Foreign currency translation
|
|
|
|
|
||||||||
Balance at beginning of period
|
$
|
(2,009
|
)
|
$
|
(1,181
|
)
|
$
|
(1,778
|
)
|
$
|
(1,285
|
)
|
Other comprehensive loss:
|
|
|
|
|
||||||||
Foreign currency translation adjustments (1)
|
152
|
|
(43
|
)
|
(79
|
)
|
61
|
|
||||
Total accumulated other comprehensive loss
|
$
|
(1,857
|
)
|
$
|
(1,224
|
)
|
$
|
(1,857
|
)
|
$
|
(1,224
|
)
|
(1)
|
In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to earnings.
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||
|
2020
|
2019
|
2020
|
2019
|
||||
Basic weighted-average shares
|
24,668,000
|
|
24,187,000
|
|
24,633,000
|
|
24,182,000
|
|
Conversion of unsecured loan notes
|
—
|
|
—
|
|
—
|
|
—
|
|
Unexercised options and unvested RSUs
|
—
|
|
—
|
|
—
|
|
—
|
|
Diluted weighted-average shares
|
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
|
||||||||
Stock options and restricted stock units, net of forfeited
|
$
|
69
|
|
$
|
123
|
|
$
|
150
|
|
$
|
219
|
|
Tax benefit of stock-based compensation expense
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
After-tax effect of stock-based compensation
|
$
|
69
|
|
$
|
123
|
|
$
|
150
|
|
$
|
219
|
|
|
Number
of
Options
|
Weighted-
Average
Exercise Price
|
Weighted- Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value
|
|||||
Outstanding on January 1, 2020
|
747,500
|
|
$
|
3.33
|
|
|
|
||
Granted
|
—
|
|
—
|
|
|
|
|||
Exercised
|
—
|
|
—
|
|
|
|
|||
Expired or forfeited
|
(40,000
|
)
|
5.50
|
|
|
|
|||
Outstanding on June 30, 2020
|
707,500
|
|
$
|
3.21
|
|
4.48
|
$
|
—
|
|
Exercisable on June 30, 2020
|
707,500
|
|
$
|
3.21
|
|
4.48
|
$
|
—
|
|
|
Shares
|
Weighted Average
Grant Date
Fair Value
|
|||
Unvested restricted stock units at January 1, 2020
|
775,635
|
|
$
|
1.47
|
|
Granted
|
—
|
|
—
|
|
|
Forfeited
|
(25,000
|
)
|
0.97
|
|
|
Vested
|
(120,630
|
)
|
1.57
|
|
|
Unvested restricted stock units at June 30, 2020
|
630,005
|
|
$
|
1.47
|
|
•
|
The Air Pollution Control technology segment includes technologies to reduce NOx emissions in flue gas from boilers, incinerators, furnaces and other stationary combustion sources. These include Low and Ultra Low NOx Burners (LNB and ULNB), Over-Fire Air (OFA) systems, NOxOUT® and HERT™ Selective Non-Catalytic Reduction (SNCR) systems, and Advanced Selective Catalytic Reduction (ASCR™) systems. Our ASCR systems include ULNB, OFA, and SNCR components, along with a downsized SCR catalyst, Ammonia Injection Grid (AIG), and Graduated Straightening Grid GSG™ systems to provide high NOx reductions at significantly lower capital and operating costs than conventional SCR systems. The NOxOUT CASCADE® and NOxOUT-SCR® processes are more basic, using just SNCR and SCR catalyst components. ULTRA™ technology creates ammonia at a plant site using safe urea for use with any SCR application. Flue Gas Conditioning systems are chemical injection systems offered in markets outside the U.S. and Canada to enhance electrostatic precipitator and fabric filter performance in controlling particulate emissions.
|
•
|
The FUEL CHEM® technology segment, which uses chemical processes in combination with advanced CFD and CKM boiler modeling, for the control of slagging, fouling, corrosion, opacity and other sulfur trioxide-related issues in furnaces and boilers through the addition of chemicals into the furnace using TIFI® Targeted In-Furnace Injection™ technology.
|
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
|
||||||||
Operating lease cost
|
$
|
79
|
|
$
|
171
|
|
$
|
167
|
|
$
|
343
|
|
Short-term lease cost
|
4
|
|
—
|
|
7
|
|
68
|
|
||||
Total lease cost
|
$
|
83
|
|
$
|
171
|
|
$
|
174
|
|
$
|
411
|
|
Year Ending December 31,
|
Operating Leases
|
||
2020 (excluding the six months ended June 30, 2020)
|
152
|
|
|
2021
|
303
|
|
|
2022
|
249
|
|
|
2023
|
242
|
|
|
Thereafter
|
206
|
|
|
Total lease payments
|
$
|
1,152
|
|
Less imputed interest
|
(135
|
)
|
|
Total
|
$
|
1,017
|
|
|
As of
|
|||||
|
June 30, 2020
|
December 31, 2019
|
||||
Operating lease liabilities - current
|
$
|
279
|
|
$
|
300
|
|
Operating lease liabilities - non-current
|
738
|
|
680
|
|
||
Total operating lease liabilities
|
$
|
1,017
|
|
$
|
980
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||
Cash paid for amounts included in the measurement of lease liabilities
|
$
|
84
|
|
$
|
172
|
|
$
|
175
|
|
$
|
343
|
|
Leased assets obtained in exchange for operating lease liabilities
|
74
|
|
165
|
|
155
|
|
328
|
|
|
As of
|
||||||
|
June 30, 2020
|
|
December 31, 2019
|
||||
Contract liabilities (Note 3)
|
$
|
1,168
|
|
|
$
|
712
|
|
Accrued remediation contingency (Note 13)
|
—
|
|
|
146
|
|
||
Other accrued liabilities
|
936
|
|
|
1,118
|
|
||
Total other accrued liabilities
|
$
|
2,104
|
|
|
$
|
1,976
|
|
•
|
We have experienced, and may continue to experience, reductions in demand for certain of our products and the delay or abandonment of ongoing or anticipated projects due to our customers’, suppliers’ and other third parties’ financial distress or concern regarding the volatility of global markets. These impacts may continue or worsen if “stay-at-home”, “shelter-in-place”, social distancing, travel restrictions and other similar orders, measures or restrictions remain in place for an extended period of time or are re-imposed after being lifted or eased.
|
•
|
Illness, travel restrictions or other workforce disruptions could adversely affect our supply chain, our ability to timely and satisfactorily complete our customers’ projects, our ability to provide services to our customers or our other business processes.
|
•
|
In addition to existing travel restrictions implemented in response to the COVID-19 pandemic, jurisdictions may continue to close borders, impose prolonged quarantines and further restrict travel and business activity, which could materially impair our ability to support our operations and customers (both domestic and international), to source supplies through the global supply chain and to identify, pursue and capture new business opportunities. We also face the possibility of increased overhead or other expenses resulting from compliance with any future government orders or other measures enacted in response to the COVID-19 pandemic.
|
a.
|
Exhibits (all filed herewith)
|
|
|
31.1
|
|
|
31.2
|
|
|
32
|
|
|
101.1
|
INSXBRL Instance Document
|
|
101.2
|
SCHXBRL Taxonomy Extension Schema Document
|
|
101.3
|
CALXBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.4
|
DEFXBRL Taxonomy Extension Definition Linkbase Document
|
|
101.5
|
LABXBRL Taxonomy Extension Label Linkbase Document
|
|
101.6
|
PREXBRL Taxonomy Extension Prevention Linkbase Document
|
Date: 8/11/2020
|
By:
|
/s/ Vincent J. Arnone
|
|
|
Vincent J. Arnone
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
Date: 8/11/2020
|
By:
|
/s/ Ellen T. Albrecht
|
|
|
Ellen T. Albrecht
|
|
|
Acting Treasurer and Controller
|
|
|
(Principal Financial Officer)
|
Date: 8/11/2020
|
By:
|
/s/ Vincent J. Arnone
|
|
|
Vincent J. Arnone
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
Date: 8/11/2020
|
By:
|
/s/ Ellen T. Albrecht
|
|
|
Ellen T. Albrecht
|
|
|
Acting Treasurer and Controller
|
|
|
(Principal Financial Officer)
|
Date: 8/11/2020
|
By:
|
/s/ Vincent J. Arnone
|
|
|
Vincent J. Arnone
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
Date: 8/11/2020
|
By:
|
/s/ Ellen T. Albrecht
|
|
|
Ellen T. Albrecht
|
|
|
Acting Treasurer and Controller
|
|
|
(Principal Financial Officer)
|