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Document and Entity Information
3 Months Ended
Jun. 30, 2012
Jul. 31, 2012
Document and Entity Information
Entity Registrant Name CAPSTONE TURBINE Corp
Entity Central Index Key 0001009759
Document Type 10-Q
Document Period End Date Jun 30, 2012
Amendment Flag false
Current Fiscal Year End Date --03-31
Entity Current Reporting Status Yes
Entity Filer Category Accelerated Filer
Entity Common Stock, Shares Outstanding 299,566,614
Document Fiscal Year Focus 2013
Document Fiscal Period Focus Q1
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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Mar. 31, 2012
Current Assets:
Cash and cash equivalents $ 45,117 $ 49,952
Accounts receivable, net of allowance for doubtful accounts of $2,643 at June 30, 2012 and $2,228 at March 31, 2012 18,453 18,576
Inventories 20,086 18,881
Prepaid expenses and other current assets 2,483 2,974
Total current assets 86,139 90,383
Property, plant and equipment, net 4,439 4,833
Non-current portion of inventories 2,466 1,313
Intangible assets, net 2,680 2,811
Other assets 442 452
Total 96,166 99,792
Current Liabilities:
Accounts payable and accrued expenses 23,455 23,061
Accrued salaries and wages 2,146 1,716
Accrued warranty reserve 2,321 1,494
Deferred revenue 2,870 2,995
Revolving credit facility 13,010 10,431
Current portion of notes payable and capital lease obligations 190 363
Warrant liability 642 791
Total current liabilities 44,634 40,851
Long-term portion of notes payable and capital lease obligations 145 70
Other long-term liabilities 226 254
Commitments and contingencies (Note 14)      
Stockholders' Equity:
Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued      
Common stock, $.001 par value; 415,000,000 shares authorized; 300,595,265 shares issued and 299,566,614 shares outstanding at June 30, 2012; 300,315,313 shares issued and 299,317,493 shares outstanding at March 31, 2012 301 300
Additional paid-in capital 791,249 790,901
Accumulated deficit (739,187) (731,412)
Treasury stock, at cost; 1,028,651 shares at June 30, 2012 and 997,820 shares at March 31, 2012 (1,202) (1,172)
Total stockholders' equity 51,161 58,617
Total $ 96,166 $ 99,792
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 30, 2012
Mar. 31, 2012
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars) $ 2,643 $ 2,228
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 415,000,000 415,000,000
Common stock, shares issued 300,595,265 300,315,313
Common stock, shares outstanding 299,566,614 299,317,493
Treasury stock, shares 1,028,651 997,820
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Revenue $ 28,812 $ 24,282
Cost of goods sold 26,643 23,775
Gross margin 2,169 507
Operating expenses:
Research and development 2,204 2,162
Selling, general and administrative 7,448 6,640
Total operating expenses 9,652 8,802
Loss from operations (7,483) (8,295)
Other income 22 4
Interest expense (191) (231)
Change in fair value of warrant liability 149 5,626
Loss before income taxes (7,503) (2,896)
Provision for income taxes 272
Net loss $ (7,775) $ (2,896)
Net loss per common share-basic and diluted (in dollars per share) $ (0.03) $ (0.01)
Weighted average shares used to calculate net loss per common share (in shares) 299,434 259,366
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash Flows from Operating Activities:
Net loss $ (7,775) $ (2,896)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 740 832
Amortization of deferred financing costs 18 48
Provision for allowance for doubtful accounts 637 23
Inventory write-down 313 284
Provision for warranty expenses 1,639 1,402
Loss on disposal of equipment 2
Stock-based compensation 338 420
Change in fair value of warrant liability (149) (5,626)
Changes in operating assets and liabilities:
Accounts receivable (514) (637)
Inventories (2,671) (3,434)
Prepaid expenses and other current assets 478 277
Accounts payable and accrued expenses 453 (3,367)
Accrued salaries and wages and long term liabilities 402 380
Accrued warranty reserve (812) (799)
Deferred revenue (125) 745
Net cash used in operating activities (7,026) (12,348)
Cash Flows from Investing Activities:
Acquisition of and deposits on equipment and leasehold improvements (271) (312)
Changes in restricted cash 1,250
Net cash provided by (used in) investing activities (271) 938
Cash Flows from Financing Activities:
Net proceeds from (repayment of) revolving credit facility 2,579 (686)
Repayment of notes payable and capital lease obligations (98) (186)
Net cash used in employee stock-based transactions (19) (35)
Proceeds from exercise of common stock warrants 966
Net cash provided by financing activities 2,462 59
Net decrease in Cash and Cash Equivalents (4,835) (11,351)
Cash and Cash Equivalents, Beginning of Period 49,952 33,456
Cash and Cash Equivalents, End of Period 45,117 22,105
Cash paid during the period for:
Interest 184 54
Income taxes 272
Supplemental Disclosures of Non-Cash Information:
Fixed asset purchases included in accounts payable $ 128 $ 70
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Business and Organization
3 Months Ended
Jun. 30, 2012
Business and Organization
Business and Organization

1.  Business and Organization

 

Capstone Turbine Corporation (the “Company”) develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications, including cogeneration (combined heat and power (“CHP”), integrated combined heat and power, and combined cooling, heat and power (“CCHP”)), renewable energy, natural resources and critical power supply. In addition, the Company’s microturbines can be used as battery charging generators for hybrid electric vehicle applications. The Company was organized in 1988 and has been producing its microturbine generators commercially since 1998.

 

The Company has incurred significant operating losses since its inception. Management anticipates incurring additional losses until the Company can produce sufficient revenue and gross profit to cover its operating costs. To date, the Company has funded its activities primarily through private and public equity offerings.

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Basis of Presentation
3 Months Ended
Jun. 30, 2012
Basis of Presentation
Basis of Presentation

2.  Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) for interim financial information and the instructions to Form 10-Q and Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The condensed consolidated balance sheet at March 31, 2012 was derived from audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2012. In the opinion of management, the interim condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial condition, results of operations and cash flows for such periods. Results of operations for any interim period are not necessarily indicative of results for any other interim period or for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2012. This Quarterly Report on Form 10-Q (this “Form 10-Q”) refers to the Company’s fiscal years ending March 31 as its “Fiscal” years. The condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. At June 30, 2012, the Company had $139.5 million, or 632 units, in backlog, all of which was current and expected to be shipped within the next twelve months. However, the timing of shipments is subject to change based on several variables (including customer payments and customer delivery schedules), some of which are beyond the Company’s control and can affect the Company’s quarterly revenue and backlog. Although the Company made progress on direct material cost reduction efforts during the first quarter of Fiscal 2013, the Company was behind schedule at the end of the first quarter of Fiscal 2013. The Company’s working capital requirements were in accordance with our plan at the end of the first quarter of Fiscal 2013. Management believes that existing cash and cash equivalents are sufficient to meet the Company’s anticipated cash needs for working capital and capital expenditures for at least the next twelve months; however, if our anticipated cash needs change, it is possible that we may need to raise additional capital in the future. In addition, the Company has the right, subject to certain conditions, to require the investors in the Company’s March 2012 registered direct placement to purchase up to an aggregate maximum of 19.0 million additional shares of common stock from the Company (the “Put Option”) during two option exercise periods. The Company could seek to raise funds by exercising the Put Option, by selling additional securities to the public or to selected investors or by obtaining additional debt financing. There is no assurance that the Company will be able to obtain additional funds on commercially favorable terms or at all. If the Company raises additional funds by issuing additional equity or convertible debt securities, the fully diluted ownership percentages of existing stockholders will be reduced. In addition, any equity or debt securities that the Company would issue may have rights, preferences or privileges senior to those of the holders of its common stock.

 

The condensed consolidated financial statements include the accounts of the Company, Capstone Turbine Singapore, Pte. Ltd., its wholly owned subsidiary that was formed in February 2011, and Capstone Turbine International, Inc., its wholly owned subsidiary that was formed in June 2004, after elimination of inter-company transactions.

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Recently Issued Accounting Standards
3 Months Ended
Jun. 30, 2012
Recently Issued Accounting Standards
Recently Issued Accounting Standards

3.  Recently Issued Accounting Standards

 

In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-05, “Presentation of Comprehensive Income”, which improves the comparability, consistency and transparency of financial reporting and increases the prominence of items reported in other comprehensive income (“OCI”) by eliminating the option to present components of OCI as part of the statement of changes in stockholders’ equity. The amendments included in this standard require that all nonowner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Under either method, an entity is required to present reclassification adjustments for items on the face of the financial statements. The Company adopted this updated guidance with no impact on its consolidated financial position or results of operations.

 

In May 2011, the FASB issued ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS” (“ASU 2011-04”), which amends current guidance to require common fair value measurement and disclosures between accounting principles generally accepted in the United States and International Financial Reporting Standards. The amendments explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The amendments change the wording used to describe fair value measurement requirements and disclosures, but often do not result in a change in the application of current guidance. The amendments in ASU 2011-04 are effective for interim and annual periods beginning after December 15, 2011. The Company adopted this updated guidance with no material impact on its consolidated financial position or results of operations.

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Customer Concentrations and Accounts Receivable
3 Months Ended
Jun. 30, 2012
Customer Concentrations and Accounts Receivable
Customer Concentrations and Accounts Receivable

4.  Customer Concentrations and Accounts Receivable

 

Sales to Pumps and Service Company (“Pumps and Service”), one of the Company’s domestic distributors, Banking Production Centre (“BPC”), one of the Company’s Russian distributors, and Regatta Solutions, Inc., one of the Company’s domestic distributors, accounted for 33%, 19% and 10%, respectively, of revenue for the first quarter of Fiscal 2013. Sales to BPC and E—Finity Distributed Generation, LLC, one of the Company’s domestic distributors, accounted for 22% and 11%, respectively, of revenue for the first quarter of Fiscal 2012.

 

Additionally, BPC, Pumps and Service, and Regatta Solutions, Inc., accounted for 34%, 21% and 10%, respectively, of net accounts receivable as of June 30, 2012. BPC accounted for 44% of net accounts receivable as of March 31, 2012.

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Inventories
3 Months Ended
Jun. 30, 2012
Inventories
Inventories

5.  Inventories

 

Inventories are stated at the lower of standard cost (which approximates actual cost on the first-in, first-out method) or market and consisted of the following:

 

 

 

June 30,
2012

 

March 31,
2012

 

 

 

(In thousands)

 

Raw materials

 

$

19,670

 

$

18,476

 

Work in process

 

97

 

151

 

Finished goods

 

2,785

 

1,567

 

Total

 

22,552

 

20,194

 

Less, non-current portion

 

(2,466

)

(1,313

)

Current portion

 

$

20,086

 

$

18,881

 

 

The non-current portion of inventories represents that portion of the inventories in excess of amounts expected to be sold or used in the next twelve months. The non-current inventories are primarily comprised of repair parts for older generation products that are still in operation, but are not technologically compatible with current configurations. The weighted average age of the non-current portion of inventories on hand as of June 30, 2012 is 1.4 years. The Company expects to use the non-current portion of the inventories on hand as of June 30, 2012 over the periods presented in the following table:

 

Expected Period of Use

 

Non-current Inventory
Balance Expected to be Used

 

 

 

(In thousands)

 

13 to 24 months

 

$

1,711

 

25 to 36 months

 

465

 

37 to 48 months

 

290

 

Total

 

$

2,466

 

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Property, Plant and Equipment
3 Months Ended
Jun. 30, 2012
Property, Plant and Equipment
Property, Plant and Equipment

6.  Property, Plant and Equipment

 

Property, plant and equipment consisted of the following:

 

 

 

June 30,
2012

 

March 31,
2012

 

 

 

(In thousands)

 

Machinery, rental equipment, equipment, automobiles and furniture

 

$

20,617

 

$

20,506

 

Leasehold improvements

 

9,694

 

9,696

 

Molds and tooling

 

4,903

 

4,880

 

 

 

35,214

 

35,082

 

Less, accumulated depreciation

 

(30,775

)

(30,249

)

Total property, plant and equipment, net

 

$

4,439

 

$

4,833

 

 

The Company recorded depreciation expense of $0.6 million for first quarter of each of Fiscal 2013 and Fiscal 2012.

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Intangible Assets
3 Months Ended
Jun. 30, 2012
Intangible Assets
Intangible Assets

7.  Intangible Assets

 

Intangible assets consisted of the following (in thousands):

 

 

 

June 30, 2012

 

 

 

Weighted
Average
Amortization
Period

 

Intangible
Assets,
Gross

 

Accumulated
Amortization

 

Intangible
Assets, Net

 

Manufacturing license

 

17 years

 

$

3,700

 

$

3,450

 

$

250

 

Technology

 

10 years

 

2,240

 

541

 

1,699

 

Parts and service customer relationships

 

5 years

 

1,080

 

522

 

558

 

TA100 customer relationships

 

2 years

 

617

 

617

 

 

Backlog

 

Various

 

490

 

317

 

173

 

Trade name

 

1.2 years

 

69

 

69

 

 

Total

 

 

 

$

8,196

 

$

5,516

 

$

2,680

 

 

The Company recorded amortization expense of $0.1 million and $0.2 million for the first quarter of Fiscal 2013 and Fiscal 2012, respectively. Intangible assets consisted of the following (in thousands):

 

 

 

March 31, 2012

 

 

 

Weighted
Average
Amortization
Period

 

Intangible
Assets,
Gross

 

Accumulated
Amortization

 

Intangible
Assets, Net

 

Manufacturing license

 

17 years

 

$

3,700

 

$

3,437

 

$

263

 

Technology

 

10 years

 

2,240

 

485

 

1,755

 

Parts and service customer relationships

 

5 years

 

1,080

 

468

 

612

 

TA100 customer relationships

 

2 years

 

617

 

617

 

 

Backlog

 

Various

 

490

 

309

 

181

 

Trade name

 

1.2 years

 

69

 

69

 

 

Total

 

 

 

$

8,196

 

$

5,385

 

$

2,811

 

 

Expected future amortization expense of intangible assets as of June 30, 2012 is as follows:

 

 

 

Amortization
Expense

 

 

 

(In thousands)

 

2013 (remainder of fiscal year)

 

$

539

 

2014

 

489

 

2015

 

453

 

2016

 

273

 

2017

 

273

 

Thereafter

 

653

 

Total expected future amortization

 

$

2,680

 

 

The manufacturing license provides the Company with the ability to manufacture recuperator cores previously purchased from Solar Turbines Incorporated (“Solar”). The Company is required to pay a per-unit royalty fee over a seventeen-year period for cores manufactured and sold by the Company using the technology. Royalties of approximately $16,000 and $18,600 were earned by Solar for the first quarter of Fiscal 2013 and 2012, respectively. Earned royalties of approximately $16,000 and $17,500 were unpaid as of June 30, 2012 and March 31, 2012, respectively, and are included in accounts payable and accrued expenses in the accompanying balance sheets.

 

On February 1, 2010, the Company acquired the 100 kW (“TA100”) microturbine product line from Calnetix Power Solutions, Inc. (“CPS”) to expand the Company’s microturbine product line and to gain relationships with distributors to supply the Company’s products. The acquired intangible assets include technology, parts and service customer relationships, TA100 customer relationships, backlog and trade name. These intangible assets have estimated useful lives between one and ten years. The fair value assigned to identifiable intangible assets acquired has been determined primarily by using the income approach. Purchased identifiable intangible assets, except for backlog, are amortized on a straight-line basis over their respective useful lives and classified as a component of cost of goods sold or selling, general and administrative expenses based on the function of the underlying asset. Backlog is amortized on a per unit basis as the backlog units are sold and presented as a component of cost of goods sold.

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Stock-Based Compensation
3 Months Ended
Jun. 30, 2012
Stock-Based Compensation
Stock-Based Compensation

8.  Stock-Based Compensation

 

Grants Outside of the 2000 Plan

 

As of June 30, 2012, the Company had outstanding 3,300,000 non-qualified common stock options issued outside of the Amended and Restated 2000 Equity Incentive Plan (the “2000 Plan”). The Company granted 250,000 of these stock options during the first quarter of Fiscal 2012 and 3,050,000 of the options prior to Fiscal 2008, with exercise prices equal to the fair market value of the Company’s common stock on the grant date as inducement grants to new officers and employees of the Company. Included in the 3,300,000 options were 2,000,000 options granted to the Company’s President and Chief Executive Officer, 850,000 options granted to the Company’s Executive Vice President of Sales and Marketing, 250,000 options granted to the Company’s Senior Vice President of Program Management and 200,000 options granted to the Company’s Senior Vice President of Human Resources. Although the options were not granted under the 2000 Plan, they are governed by terms and conditions identical to those under the 2000 Plan. All options are subject to the following vesting provisions: one-fourth vest one year after the issuance date and 1/48th vest on the first day of each full month thereafter, so that all options will be vested on the first day of the 48th month after the grant date. All outstanding options have a contractual term of ten years.

 

Valuation and Expense Information

 

For the first quarter of Fiscal 2013 and Fiscal 2012, the Company recognized stock-based compensation expense of $0.3 million and $0.4 million, respectively. The following table summarizes, by statement of operations line item, stock-based compensation expense (in thousands):

 

 

 

Three
Months
Ended
June 30, 2012

 

Three
Months
Ended
June 30, 2011

 

Cost of goods sold

 

$

27

 

$

38

 

Research and development

 

75

 

81

 

Selling, general and administrative

 

236

 

301

 

Stock-based compensation expense

 

$

338

 

$

420

 

 

There were no stock options granted during the first quarter of Fiscal 2013. The Company calculated the estimated fair value of each stock option granted during the first quarter of Fiscal 2012 on the date of grant using the Black-Scholes option-pricing model and the following weighted-average assumptions:

 

 

 

Three
Months
Ended
June 30, 2012

 

Three
Months
Ended
June 30, 2011

 

Risk-free interest rates

 

%

1.98

%

Expected lives (in years)

 

 

5.0

 

Dividend yield

 

%

%

Expected volatility

 

%

89.2

%

 

The Company’s computation of expected volatility for the first quarter of Fiscal 2012 was based on historical volatility. The expected life, or term, of options granted is derived from historical exercise behavior and represents the period of time that stock option awards are expected to be outstanding. Management has selected a risk-free rate based on the implied yield available on U.S. Treasury Securities with a maturity equivalent to the options’ expected term. Included in the calculation of stock-based compensation expense is the Company’s estimated forfeiture rate. Stock-based compensation expense is based on awards that are ultimately expected to vest and accordingly, stock-based compensation expense recognized in the first quarter of Fiscal 2013 and 2012 has been reduced by estimated forfeitures. Management’s estimate of forfeitures is based on historical forfeitures.

 

Information relating to all outstanding stock options, except for rights associated with the 2000 Employee Stock Purchase Plan, is as follows:

 

 

 

Shares

 

Weighted
Average
Exercise Price

 

Weighted-
Average
Remaining
Contractual
Term
 (in years)

 

Aggregate
Intrinsic Value

 

Options outstanding at March 31, 2012

 

10,039,651

 

$

1.41

 

 

 

 

 

Granted

 

 

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

Forfeited, cancelled or expired

 

(128,996

)

2.15

 

 

 

 

 

Options outstanding at June 30, 2012

 

9,910,655

 

$

1.40

 

5.55

 

$

463,617

 

 

 

 

 

 

 

 

 

 

 

Options fully vested at June 30, 2012 and those expected to vest beyond June 30, 2012

 

9,848,088

 

$

1.40

 

5.53

 

$

463,409

 

 

 

 

 

 

 

 

 

 

 

Options exercisable at June 30, 2012

 

8,486,443

 

$

1.42

 

5.14

 

$

417,179

 

 

There were no stock options granted during the first quarter of Fiscal 2013. The weighted average per share grant date fair value of options granted during the first quarter of Fiscal 2012 was $1.77. There were no stock options exercised during the first quarter of Fiscal 2013 or Fiscal 2012. The Company recorded expense of approximately $0.2 million associated with its stock options during the first quarter of each of Fiscal 2013 and Fiscal 2012. As of June 30, 2012, there was approximately $1.2 million of total compensation cost related to unvested stock option awards that is expected to be recognized as expense over a weighted average period of 2.0 years.

 

During the first quarter of Fiscal 2013 and Fiscal 2012, the Company issued a total of 22,162 and 14,681 shares of stock, respectively, to non-employee directors who elected to take payment of all or any portion of the directors’ fees in stock in lieu of cash. The shares of stock were valued based on the closing price of the Company’s common stock on the date of grant and the weighted average grant date fair value for these shares during the first quarter of Fiscal 2013 and Fiscal 2012 was $1.00 and $1.67, respectively.

 

A summary of restricted stock unit activity for the first quarter of Fiscal 2013 is as follows:

 

 

 

Shares

 

Weighted
Average
Grant-Date Fair
Value

 

Unvested restricted stock units outstanding at March 31, 2012

 

1,143,262

 

$

1.20

 

 

 

 

 

 

 

Granted

 

38,000

 

0.95

 

Vested and issued

 

(247,245

)

1.00

 

Forfeited

 

(3,288

)

1.20

 

 

 

 

 

 

 

Unvested restricted stock units outstanding at June 30, 2012

 

930,729

 

$

1.16

 

Restricted stock units expected to vest beyond June 30, 2012

 

864,127

 

$

1.16

 

 

The restricted stock units were valued based on the closing price of the Company’s common stock on the date of issuance and compensation cost is recorded on a straight-line basis over the vesting period. The related compensation expense recognized has been reduced by estimated forfeitures. The Company’s estimate of forfeitures is based on historical forfeitures.

 

The total fair value of restricted stock units vested and issued by the Company during the first quarter of Fiscal 2013 and 2012 was approximately $0.1 million and $0.4 million, respectively. The Company recorded expense of approximately $0.1 million and $0.2 million associated with its restricted stock awards and units during the first quarter of Fiscal 2013 and Fiscal 2012, respectively. As of June 30, 2012, there was approximately $0.8 million of total compensation cost related to unvested restricted stock units that is expected to be recognized as expense over a weighted average period of 2.2 years.

 

Contingent Grants

 

On June 6, 2012, options to purchase 1,708,330 shares of common stock and 427,080 RSUs were granted to the Company’s eligible executives, contingent on stockholder approval of the amendment and restatement of the 2000 Plan at the Annual Meeting scheduled to be held on August 30, 2012. The exercise price of the 1,708,330 options will be the market price of the Company’s stock on the date of stockholder approval of the amendment and restatement of the 2000 Plan. None of the June 6, 2012 grants are included in the tables in this footnote because they are not effective until the stockholder approval contingency is met.

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Underwritten and Registered Direct Placement of Common Stock
3 Months Ended
Jun. 30, 2012
Underwritten and Registered Direct Placement of Common Stock
Underwritten and Registered Direct Placement of Common Stock

9.  Underwritten and Registered Direct Placement of Common Stock

 

Effective March 5, 2012, the Company completed a registered direct placement in which it sold 22.6 million shares of the Company’s common stock, par value $.001 per share, and warrants to purchase 22.6 million shares of common stock with an initial exercise price of $1.55 per share, at a price of $1.11 per unit. Each unit consisted of one share of common stock and a warrant to purchase one share of common stock. The warrants expire on October 31, 2013. In addition, the Company obtained the right to require investors in the offering to purchase up to an aggregate maximum of 19.0 million additional shares of common stock from the Company (the “Put Option”) during two option exercise periods, the first such option exercise period beginning September 10, 2012 and the second such option exercise period beginning March 4, 2013. The Put Option is subject to certain conditions which may reduce the number of shares that can be sold or eliminate the Put Option. These conditions include a minimum volume-weighted average price (VWAP) and a minimum average trading volume of the Company’s common shares during the 30 trading days prior to the exercise of the Put Option. The March 2012 sale resulted in gross proceeds of approximately $25.0 million and proceeds net of direct incremental costs, of approximately $23.1 million. The warrants issued in March 2012 and still outstanding as of June 30, 2012 represented warrants to purchase 22.6 million shares at an exercise price of $1.55 per share.

 

Effective September 23, 2008, the Company completed a registered direct placement in which it sold 21.5 million shares of the Company’s common stock, par value $.001 per share, and warrants to purchase 6.4 million shares of common stock with an initial exercise price of $1.92 per share, at a price of $14.90 per unit. Each unit consisted of ten shares of common stock and warrants to purchase three shares of common stock. The five-year warrants were immediately exercisable and included certain weighted average anti-dilution provisions, subject to certain limitations. Additionally, the Company has the right, at its option, to accelerate the expiration of the exercise period of the outstanding warrants issued in the offering, in whole or from time to time in part, at any time after the second anniversary of the original issue date of the warrants, subject to certain limitations. The sale resulted in gross proceeds of approximately $32.0 million and proceeds, net of direct incremental costs, of the offering of approximately $29.5 million. During Fiscal 2011, warrants to purchase 0.4 million shares were exercised resulting in proceeds of approximately $0.5 million. During Fiscal 2012, warrants to purchase 3.6 million shares were exercised resulting in gross proceeds of approximately $3.1 million. The underwritten public offering in February 2010, and the registered direct offerings in March 2012, September 2009 and May 2009 triggered certain anti-dilution provisions in the warrants outstanding prior to each of the offerings. As a result, the number of shares to be received upon exercise and the exercise price of each warrant previously outstanding were adjusted. Following such adjustments, warrants issued in September 2008 and still outstanding as of June 30, 2012 represented warrants to purchase 3.9 million shares at an exercise price of $1.54 per share. These warrants are classified as liabilities under the caption “Warrant liability” in the accompanying balance sheets and recorded at estimated fair value with the corresponding charge under the caption “Change in fair value of warrant liability” in the accompanying statement of operations. See Note 10—Fair Value Measurements for disclosure regarding the fair value of financial instruments.

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Fair Value Measurements
3 Months Ended
Jun. 30, 2012
Fair Value Measurements
Fair Value Measurements

10. Fair Value Measurements

 

The FASB has established a framework for measuring fair value using generally accepted accounting principles. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described as follows:

 

Level 1.  Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

 

Level 2.  Inputs to the valuation methodology include:

 

·                  Quoted prices for similar assets or liabilities in active markets

 

·                  Quoted prices for identical or similar assets or liabilities in inactive markets

 

·                  Inputs other than quoted prices that are observable for the asset or liability

 

·                  Inputs that are derived principally from or corroborated by observable market data by correlation or other means

 

If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.

 

Level 3.  Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used must maximize the use of observable inputs and minimize the use of unobservable inputs.

 

The table below presents our assets and liabilities that are measured at fair value on a recurring basis during the first quarter of Fiscal 2013 and are categorized using the fair value hierarchy (in thousands):

 

 

 

Fair Value Measurements at June 30, 2012

 

 

 

Total

 

Quoted Prices in
Active Markets for
Identical Assets
(Level 1)

 

Significant Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Cash Equivalents

 

$

35,736

 

$

35,736

 

$

 

$

 

Warrant Liability

 

$

(642

)

$

 

$

 

$

(642

)

 

Cash equivalents include cash held in money market and U.S. treasury funds at June 30, 2012.

 

The table below presents our assets and liabilities that are measured at fair value on a recurring basis during the fiscal year ended March 31, 2012 and are categorized using the fair value hierarchy (in thousands):

 

 

 

Fair Value Measurements at March 31, 2012

 

 

 

Total

 

Quoted Prices in
Active Markets for
Identical Assets
(Level 1)

 

Quoted Prices in
Active Markets for
Identical Assets
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Cash Equivalents

 

$

39,790

 

$

39,790

 

$

 

$

 

Warrant Liability

 

$

(791

)

$

 

$

 

$

(791

)

 

Basis for Valuation

 

The carrying values reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate fair values because of the immediate or short-term maturities of these financial instruments. As the Company’s obligations under the Credit Facility (as defined below) are based on adjustable market interest rates, the Company has determined that the carrying value approximates the fair value. The carrying values and estimated fair values of these obligations are as follows (in thousands):

 

 

 

As of
June 30, 2012

 

As of
March 31, 2012

 

 

 

Carrying
Value

 

Estimated
Fair Value

 

Carrying
Value

 

Estimated
Fair Value

 

Obligations under credit facility

 

$

13,010

 

$

13,010

 

$

10,431

 

$

10,431

 

 

The fair value of the Company’s warrant liability (see Note 9—Underwritten and Registered Direct Placement of Common Stock) recorded in the Company’s financial statements is determined using the Monte—Carlo simulation valuation method and the quoted price of the Company’s common stock in an active market, a Level 3 measurement. Volatility is based on the actual market activity of the Company’s stock. The expected life is based on the remaining contractual term of the warrants and the risk free interest rate is based on the implied yield available on U.S. Treasury Securities with a maturity equivalent to the warrants’ expected life. The Company’s use of different estimates and assumptions could produce different financial results.

 

The Company calculated the estimated fair value of warrants on the date of issuance and at each subsequent reporting date using the following assumptions:

 

 

 

Three Months Ended June 30,
2012

 

Three Months Ended June 30,
2011

 

Risk-free interest rates range

 

0.2%

 

0.1% to 1.5%

 

Remaining contractual term (in years)

 

1.2 years

 

0.6 years to 4.9 years

 

Expected volatility range

 

65.8%

 

65.6% to 83.3%

 

 

From time to time, the Company sells common stock warrants that are derivative instruments. The Company does not enter into speculative derivative agreements and does not enter into derivative agreements for the purpose of hedging risks.

 

As discussed above, the Company adopted authoritative guidance issued by the FASB on contracts in an entity’s own equity that requires the common stock warrants to be classified as liabilities at their estimated fair value with changes in fair value at each reporting date recognized in the statement of operations.

 

The table below provides a reconciliation of the beginning and ending balances for the warrant liability which is measured at fair value using significant unobservable inputs (Level 3) (in thousands):

 

Warrant liability:

 

 

 

Balance at March 31, 2012

 

$

791

 

Total realized and unrealized (gains) losses:

 

 

 

Income included in change in fair value of warrant liability

 

(149

)

Purchases, issuances and settlement

 

 

Balance at June 30, 2012

 

$

642

 

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Revolving Credit Facility
3 Months Ended
Jun. 30, 2012
Revolving Credit Facility
Revolving Credit Facility

11. Revolving Credit Facility

 

The Company maintains two Credit and Security Agreements, as amended (the “Agreements”), with Wells Fargo Bank, National Association (“Wells Fargo”), which provide the Company with a line of credit of up to $15.0 million in the aggregate (the “Credit Facility”). The amount actually available to the Company may be less and may vary from time to time depending on, among other factors, the amount of its eligible inventory and accounts receivable. As security for the payment and performance of the Credit Facility, the Company granted a security interest in favor of Wells Fargo in substantially all of the assets of the Company. The Agreements will terminate in accordance with their terms on September 30, 2014 unless terminated sooner.

 

The Agreements include affirmative covenants as well as negative covenants that prohibit a variety of actions without Wells Fargo’s consent, including covenants that limit the Company’s ability to (a) incur or guarantee debt, (b) create liens, (c) enter into any merger, recapitalization or similar transaction or purchase all or substantially all of the assets or stock of another entity, (d) pay dividends on, or purchase, acquire, redeem or retire shares of, the Company’s capital stock, (e) sell, assign, transfer or otherwise dispose of all or substantially all of the Company’s assets, (f) change the Company’s accounting method or (g) enter into a different line of business. Furthermore, the Agreements contain financial covenants, including (a) a requirement not to exceed specified levels of losses, (b) a requirement to maintain a substantial minimum monthly cash balance to outstanding line of credit advances based upon the Company’s financial performance, and (c) limitations on the Company’s annual capital expenditures.

 

Several times since entering into the Agreements, the Company was in noncompliance with certain covenants under the Credit Facility. In connection with each event of noncompliance, Wells Fargo waived the event of default and, on several occasions, the Company amended the Agreements in response to the default and waiver.  If the Company had not obtained a waiver for each event of default and amended the Agreements for the noncompliance with certain covenants, the Company would not have been able to draw additional funds under the Credit Facility. In addition, the Company has pledged its accounts receivables, inventories, equipment, patents and other assets as collateral for the Agreements, which would be subject to seizure by Wells Fargo if the Company were in default under the Agreements and unable to repay the indebtedness. Wells Fargo also has the option to terminate the Agreements or accelerate the indebtedness during a period of noncompliance.

 

On June 12, 2012, the Company entered into an amendment to the Agreements which set the financial covenants for Fiscal 2013. Based on the Company’s current forecasts, the Company believes it will maintain compliance with the covenants contained in the amended Agreements for at least the next twelve months. If a covenant violation were to occur, the Company would attempt to negotiate a waiver of compliance from Wells Fargo.

 

The Company is required to maintain a Wells Fargo collection account for cash receipts on all of its accounts receivable. These amounts are immediately applied to reduce the outstanding amount on the Credit Facility. The floating rate for line of credit advances is the sum of daily three month London Inter—Bank Offer Rate (“LIBOR”), which interest rate shall change whenever daily three month LIBOR changes, plus applicable margin. Based on the revolving nature of the Company’s borrowings and payments, the Company classifies all outstanding amounts as current liabilities. The applicable margin varies based on net income and the minimum interest floor is set at $66,000 each calendar quarter. The Company’s borrowing rate at each of June 30, 2012 and March 31, 2012 was 5.5%, respectively.

 

The Company incurred $0.1 million in origination fees in connection with a September 2011 amendment to the Agreements that increased borrowing capacity and extended the maturity date of the line of credit. These fees were capitalized and are being amortized to interest expense through September 2014. The Company is also required to pay an annual unused line fee of one-quarter of one percent of the daily average of the maximum line amount and 1.5% interest with respect to each letter of credit issued by Wells Fargo. These amounts, if any, are also recorded as interest expense by the Company. As of June 30, 2012 and March 31, 2012, $13.0 million and $10.4 million in borrowings were outstanding, respectively, under the Credit Facility. Interest expense related to the Credit Facility during the first quarter of Fiscal 2013 was $0.2 million, which includes $18,300 in amortization of deferred financing costs. Interest expense related to the Credit Facility during the first quarter of Fiscal 2012 was $0.2 million, which includes $48,600 in amortization of deferred financing costs.

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Accrued Warranty Reserve
3 Months Ended
Jun. 30, 2012
Accrued Warranty Reserve
Accrued Warranty Reserve

12.  Accrued Warranty Reserve

 

The Company provides for the estimated costs of warranties at the time revenue is recognized. The specific terms and conditions of those warranties vary depending upon the product sold, geography of sale and the length of extended warranties sold. The Company’s product warranties generally start from the delivery date and continue for up to eighteen months. Factors that affect the Company’s warranty obligation include product failure rates, anticipated hours of product operations and costs of repair or replacement in correcting product failures. These factors are estimates that may change based on new information that becomes available each period. Similarly, the Company also accrues the estimated costs related to address reliability repairs on products no longer in warranty when, in the Company’s judgment, it is prudent to provide such repairs. The Company assesses the adequacy of recorded warranty liabilities quarterly and makes adjustments to the liability as necessary. When the Company has sufficient evidence that product changes are altering the historical failure occurrence rates, the impact of such changes is then taken into account in estimating future warranty liabilities.

 

Changes in accrued warranty reserve during the first quarter of Fiscal 2013 are as follows (in thousands):

 

Balance, March 31, 2012

 

$

1,494

 

Standard warranty provision

 

1,197

 

Changes for accrual related to reliability repair programs

 

442

 

Deductions for warranty claims

 

(812

)

Balance, June 30, 2012

 

$

2,321

 

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Other Current Liabilities
3 Months Ended
Jun. 30, 2012
Other Current Liabilities
Other Current Liabilities

13.  Other Current Liabilities

 

In September 2007, the Company entered into a Development and License Agreement (the “Development Agreement”) with UTC Power Corporation (“UTCP”), a division of United Technologies Corporation. The Development Agreement engaged UTCP to fund and support the Company’s continued development and commercialization of the Company’s 200 kilowatt (“C200”) microturbine. Pursuant to the terms of the Development Agreement, UTCP contributed $12.0 million in cash and approximately $0.8 million of in-kind services toward the Company’s efforts to develop the C200. In return, the Company pays UTCP an ongoing royalty of 10% of the sales price of the C200 sold to customers other than UTCP until the aggregate of UTCP’s cash and in-kind services investment has been recovered and, thereafter, the royalty will be reduced to 5% of the sales price. In August 2009, the Development Agreement was assigned by UTCP to Carrier Corporation (“Carrier”).

 

The Company recorded the benefits from this Development Agreement as a reduction of research and development (“R&D”) expenses. In-kind services performed by UTCP under the cost-sharing program were recorded as consulting expense within R&D expenses. Funding in excess of expenses incurred was recorded in Other Current Liabilities. The program concluded in June 2009. The reduction of R&D expenses was recognized on a percentage of completion basis, limited by the amount of funding received and/or earned based on milestone deliverables.

 

On January 14, 2011, the Company entered into an amendment to the Development Agreement with Carrier that amended the royalty payment from a certain percentage of the sales prices to a predetermined fixed rate for each microturbine system covered by the amendment. Based on this amendment, the Company pays Carrier an ongoing royalty of a predetermined fixed rate until the aggregate of Carrier’s cash and in-kind services investment has been recovered and, thereafter, the predetermined fixed rate royalty will be reduced by 50%. Carrier earned approximately $0.9 million and $0.6 million in royalties for C200 and C1000 Series system sales during the first quarter of Fiscal 2013 and Fiscal 2012, respectively. Earned royalties of approximately $0.9 million and $1.0 million were unpaid as of June 30, 2012 and March 31, 2012, respectively, and are included in accounts payable and accrued expenses in the accompanying balance sheets.

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Commitments and Contingencies
3 Months Ended
Jun. 30, 2012
Commitments and Contingencies
Commitments and Contingencies

14.  Commitments and Contingencies

 

Lease Commitments

 

The Company leases offices and manufacturing facilities under various non-cancelable operating leases expiring at various times through the fiscal year ending March 31, 2015. All of the leases require the Company to pay maintenance, insurance and property taxes. The lease agreements for primary office and manufacturing facilities provide for rent escalation over the lease term and renewal options for five-year periods. Rent expense is recognized on a straight-line basis over the term of the lease. The difference between rent expense recorded and the amount paid is credited or charged to deferred rent, which is included in other long-term liabilities in the accompanying balance sheets. The balance of deferred rent was approximately $0.2 million and $0.3 million as of June 30, 2012 and March 31, 2012, respectively. Rent expense was approximately $0.5 million during the first quarter of each of Fiscal 2013 and 2012.

 

Purchase Commitments

 

As of June 30, 2012, the Company had firm commitments to purchase inventories of approximately $36.4 million through the first quarter of Fiscal 2014. Certain inventory delivery dates and related payments are not firmly scheduled; therefore, amounts under these firm purchase commitments will be payable upon the receipt of the related inventories.

 

Other Commitments

 

On April 28, 2011, the Company purchased from CPS for $2.3 million the remaining TA100 microturbine inventory that was not consumed as part of the TA100 manufacturing process and obtained title to certain TA100 manufacturing equipment.

 

In September 2010, the Company was awarded a grant from the U.S. Department of Energy (“DOE”) for the research, development and testing of a more efficient microturbine Combined Heat and Power (CHP) system. Part of the improved efficiency is expected to come from an improved microturbine design, with a projected electrical efficiency of 42% (compared to 33% for the C200) and power output of 370 kW. The project was estimated to last 24 months and cost approximately $17.4 million. During Fiscal 2012 this project was extended until September 2013. The DOE will contribute $5.0 million toward the project, and the Company will incur approximately $12.4 million in research and development expense. The Company billed the DOE under the contract for this project a cumulative amount of $1.0 million through June 30, 2012.

 

In November 2009, the Company was awarded a grant from the DOE for the research, development and testing of a more fuel flexible microturbine capable of operating on a wider variety of biofuels. The project is estimated to last 24 months and cost approximately $3.8 million. During Fiscal 2012 this project was extended until September 2013. The DOE will contribute $2.5 million under the program, and the Company will incur approximately $1.3 million in research and development expense. The Company billed the DOE under this contract a cumulative amount of $1.3 million through June 30, 2012.

 

The Company has agreements with some of its distributors requiring it to replace stocked parts if the Company renders parts obsolete in inventories the distributors own and hold in support of their obligations to serve fielded microturbines without charge to the distributors. While the Company has never incurred costs or obligations for these types of replacements, it is possible that future changes in the Company’s product technology could result and yield costs to the Company if significant amounts of inventory are held at distributors. As of June 30, 2012 and March 31, 2012, no significant inventories were held at distributors.

 

Legal Matters

 

On October 9, 2007, Vanessa Simmonds, a purported stockholder of the Company, filed suit in the U.S. District Court for the Western District of Washington (the “Washington District Court”) against The Goldman Sachs Group, Inc., Merrill Lynch & Co., Inc., and Morgan Stanley, the lead underwriters of the Company’s initial public offering in June 1999, and the Company’s secondary offering of common stock in November 2000, alleging violations of Section 16(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78p(b). The complaint sought to recover from the lead underwriters any “short swing profits” obtained by them in violation of Section 16(b). The suit names the Company as a nominal defendant, contained no claims against the Company, and sought no relief from the Company. Simmonds filed an Amended Complaint on February 27, 2008 (the “Amended Complaint”), naming as defendants Goldman Sachs & Co. and Merrill Lynch Pierce, Fenner & Smith Inc. and again naming Morgan Stanley. The Goldman Sachs Group, Inc. and Merrill Lynch & Co., Inc. were no longer named as defendants. The Amended Complaint asserted substantially similar claims as those set forth in the initial complaint. On July 25, 2008, the Company joined with 29 other issuers to file the Issuer Defendants’ Joint Motion to Dismiss. On March 12, 2009, the Washington District Court granted the Issuer Defendants’ Joint Motion to Dismiss, dismissing the complaint without prejudice on the grounds that Simmonds had failed to make an adequate demand on the Company prior to filing her complaint. In its order, the Washington District Court stated that it would not permit Simmonds to amend her demand letters while pursuing her claims in the litigation. Because the Washington District Court dismissed the case on the grounds that it lacked subject matter jurisdiction, it did not specifically reach the issue of whether Simmonds’ claims were barred by the applicable statute of limitations. However, the Washington District Court also granted the Underwriters’ Joint Motion to Dismiss with respect to cases involving non-moving issuers, holding that the cases were barred by the applicable statute of limitations because the issuers’ stockholders had notice of the potential claims more than five years prior to filing suit. Simmonds filed a Notice of Appeal on April 10, 2009. The underwriters subsequently filed a Notice of Cross-Appeal, arguing that the dismissal of the claims involving the moving issuers should have been with prejudice because the claims were untimely under the applicable statute of limitations. On December 2, 2010, the Ninth Circuit Court of Appeals (the “Ninth Circuit”) affirmed the Washington District Court’s decision to dismiss the moving issuers’ cases (including the Company’s) on the grounds that plaintiff’s demand letters were insufficient to put the issuers on notice of the claims asserted against them and further ordered that the dismissals be made with prejudice.  The Ninth Circuit, however, reversed and remanded the Washington District Court’s decision on the underwriters’ motion to dismiss as to the claims arising from the non-moving issuers’ initial public offerings, finding plaintiff’s claims were not time-barred under the applicable statute of limitations.  In remanding, the Ninth Circuit advised the non-moving issuers and underwriters to file in the Washington District Court the same challenges to plaintiff’s demand letters that moving issuers had filed. On December 16, 2010, the underwriters filed a petition for panel rehearing and petition for rehearing en banc.  Appellant Vanessa Simmonds also filed a petition for rehearing en banc.  On January 18, 2011, the Ninth Circuit denied the petition for rehearing and petitions for rehearing en banc.  It further ordered that no further petitions for rehearing may be filed.  On January 26, 2011, the Ninth Circuit ruled that the mandate in all cases (including the Company’s and other moving issuers) was stayed for ninety days pending Simmonds’ filing of a petition for writ of certiorari in the United States Supreme Court.  On April 5, 2011, Simmonds filed a Petition for Writ of Certiorari with the U.S. Supreme Court seeking reversal of the Ninth Circuit’s December 2, 2010 decision relating to the adequacy of the pre-suit demand.  On April 15, 2011, underwriter defendants filed a Petition for Writ of Certiorari with the U.S. Supreme Court seeking reversal of the Ninth Circuit’s December 2, 2010 decision relating to the statute of limitations issue. On June 27, 2011, the Supreme Court denied Simmonds’ petition regarding the demand issue and granted the underwriters’ petition relating to the statute of limitations issue.  Oral arguments on underwriters’ petition were heard on November 29, 2011.  On March 26, 2012, the Supreme Court vacated the Ninth Circuit’s holding that petitioner’s claims were not time-barred and remanded the cases to the District Court for proceedings consistent with the Supreme Court’s opinion. On June 7, 2012, the mandate of the Ninth Circuit was formally entered.  On June 11, 2012, Plaintiffs voluntarily dismissed the case with prejudice as to the adequacy-of-the-pre-suit demand issue and without prejudice as to all other issues.

 

From time to time, the Company may become subject to additional legal proceedings, claims and litigation arising in the ordinary course of business. Other than the matters discussed above, the Company is not a party to any other material legal proceedings, nor is the Company aware of any other pending or threatened litigation that would have a material effect on the Company’s business, operating results, cash flows, financial position or results of operations should such litigation be resolved unfavorably.

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Net Loss Per Common Share
3 Months Ended
Jun. 30, 2012
Net Loss Per Common Share
Net Loss Per Common Share

15.  Net Loss Per Common Share

 

Basic loss per share of common stock is computed using the weighted average number of common shares outstanding for the period. Diluted loss per share is computed without consideration to potentially dilutive instruments because the Company incurred losses in the three months ended June 30, 2012 which would make these instruments anti-dilutive. As of June 30, 2012 and 2011, the number of anti-dilutive stock options and restricted stock units excluded from diluted net loss per common share computations was approximately 10.8 million and 12.3 million, respectively. As of June 30, 2012 and 2011, the number of warrants excluded from diluted net loss per common share computations was approximately 26.5 million and 21.1 million, respectively.

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Inventories (Tables)
3 Months Ended
Jun. 30, 2012
Inventories
Summary of inventory

 

 

 

 

June 30,
2012

 

March 31,
2012

 

 

 

(In thousands)

 

Raw materials

 

$

19,670

 

$

18,476

 

Work in process

 

97

 

151

 

Finished goods

 

2,785

 

1,567

 

Total

 

22,552

 

20,194

 

Less, non-current portion

 

(2,466

)

(1,313

)

Current portion

 

$

20,086

 

$

18,881

 

Schedule of expected usage for non-current inventory

 

 

Expected Period of Use

 

Non-current Inventory
Balance Expected to be Used

 

 

 

(In thousands)

 

13 to 24 months

 

$

1,711

 

25 to 36 months

 

465

 

37 to 48 months

 

290

 

Total

 

$

2,466

 

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Property, Plant and Equipment (Tables)
3 Months Ended
Jun. 30, 2012
Property, Plant and Equipment
Schedule of property, plant and equipment

 

 

 

June 30,
2012

 

March 31,
2012

 

 

 

(In thousands)

 

Machinery, rental equipment, equipment, automobiles and furniture

 

$

20,617

 

$

20,506

 

Leasehold improvements

 

9,694

 

9,696

 

Molds and tooling

 

4,903

 

4,880

 

 

 

35,214

 

35,082

 

Less, accumulated depreciation

 

(30,775

)

(30,249

)

Total property, plant and equipment, net

 

$

4,439

 

$

4,833

 

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Intangible Assets (Tables)
3 Months Ended
Jun. 30, 2012
Intangible Assets
Schedule of intangible assets

 

 

 

 

June 30, 2012

 

 

 

Weighted
Average
Amortization
Period

 

Intangible
Assets,
Gross

 

Accumulated
Amortization

 

Intangible
Assets, Net

 

Manufacturing license

 

17 years

 

$

3,700

 

$

3,450

 

$

250

 

Technology

 

10 years

 

2,240

 

541

 

1,699

 

Parts and service customer relationships

 

5 years

 

1,080

 

522

 

558

 

TA100 customer relationships

 

2 years

 

617

 

617

 

 

Backlog

 

Various

 

490

 

317

 

173

 

Trade name

 

1.2 years

 

69

 

69

 

 

Total

 

 

 

$

8,196

 

$

5,516

 

$

2,680

 

 

 

 

 

March 31, 2012

 

 

 

Weighted
Average
Amortization
Period

 

Intangible
Assets,
Gross

 

Accumulated
Amortization

 

Intangible
Assets, Net

 

Manufacturing license

 

17 years

 

$

3,700

 

$

3,437

 

$

263

 

Technology

 

10 years

 

2,240

 

485

 

1,755

 

Parts and service customer relationships

 

5 years

 

1,080

 

468

 

612

 

TA100 customer relationships

 

2 years

 

617

 

617

 

 

Backlog

 

Various

 

490

 

309

 

181

 

Trade name

 

1.2 years

 

69

 

69

 

 

Total

 

 

 

$

8,196

 

$

5,385

 

$

2,811

 

Schedule of expected future amortization expense of intangible assets

 

 

 

 

Amortization
Expense

 

 

 

(In thousands)

 

2013 (remainder of fiscal year)

 

$

539

 

2014

 

489

 

2015

 

453

 

2016

 

273

 

2017

 

273

 

Thereafter

 

653

 

Total expected future amortization

 

$

2,680

 

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Stock-Based Compensation (Tables)
3 Months Ended
Jun. 30, 2012
Stock-Based Compensation
Summary of stock-based compensation expense by statement of operations line item

 

 

 

 

Three
Months
Ended
June 30, 2012

 

Three
Months
Ended
June 30, 2011

 

Cost of goods sold

 

$

27

 

$

38

 

Research and development

 

75

 

81

 

Selling, general and administrative

 

236

 

301

 

Stock-based compensation expense

 

$

338

 

$

420

Schedule of weighted-average assumptions used to calculate the estimated fair value of each stock option

 

 

 

 

Three
Months
Ended
June 30, 2012

 

Three
Months
Ended
June 30, 2011

 

Risk-free interest rates

 

%

1.98

%

Expected lives (in years)

 

 

5.0

 

Dividend yield

 

%

%

Expected volatility

 

%

89.2

%

Summary of stock option activity

 

 

 

 

Shares

 

Weighted
Average
Exercise Price

 

Weighted-
Average
Remaining
Contractual
Term
 (in years)

 

Aggregate
Intrinsic Value

 

Options outstanding at March 31, 2012

 

10,039,651

 

$

1.41

 

 

 

 

 

Granted

 

 

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

Forfeited, cancelled or expired

 

(128,996

)

2.15

 

 

 

 

 

Options outstanding at June 30, 2012

 

9,910,655

 

$

1.40

 

5.55

 

$

463,617

 

 

 

 

 

 

 

 

 

 

 

Options fully vested at June 30, 2012 and those expected to vest beyond June 30, 2012

 

9,848,088

 

$

1.40

 

5.53

 

$

463,409

 

 

 

 

 

 

 

 

 

 

 

Options exercisable at June 30, 2012

 

8,486,443

 

$

1.42

 

5.14

 

$

417,179

Summary of restricted stock unit activity

 

 

 

 

Shares

 

Weighted
Average
Grant-Date Fair
Value

 

Unvested restricted stock units outstanding at March 31, 2012

 

1,143,262

 

$

1.20

 

 

 

 

 

 

 

Granted

 

38,000

 

0.95

 

Vested and issued

 

(247,245

)

1.00

 

Forfeited

 

(3,288

)

1.20

 

 

 

 

 

 

 

Unvested restricted stock units outstanding at June 30, 2012

 

930,729

 

$

1.16

 

Restricted stock units expected to vest beyond June 30, 2012

 

864,127

 

$

1.16

 

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Fair Value Measurements (Tables)
3 Months Ended
Jun. 30, 2012
Fair Value Measurements
Schedule of assets and liabilities measured at fair value on a recurring basis

 

 

 

 

Fair Value Measurements at June 30, 2012

 

 

 

Total

 

Quoted Prices in
Active Markets for
Identical Assets
(Level 1)

 

Significant Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Cash Equivalents

 

$

35,736

 

$

35,736

 

$

 

$

 

Warrant Liability

 

$

(642

)

$

 

$

 

$

(642

)

 

 

 

Fair Value Measurements at March 31, 2012

 

 

 

Total

 

Quoted Prices in
Active Markets for
Identical Assets
(Level 1)

 

Quoted Prices in
Active Markets for
Identical Assets
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Cash Equivalents

 

$

39,790

 

$

39,790

 

$

 

$

 

Warrant Liability

 

$

(791

)

$

 

$

 

$

(791

)

Schedule of carrying values and estimated fair values of obligations under the credit facility

 

 

 

 

As of
June 30, 2012

 

As of
March 31, 2012

 

 

 

Carrying
Value

 

Estimated
Fair Value

 

Carrying
Value

 

Estimated
Fair Value

 

Obligations under credit facility

 

$

13,010

 

$

13,010

 

$

10,431

 

$

10,431

 

Schedule of assumptions used to calculate estimated fair value of warrants

 

 

 

 

Three Months Ended June 30,
2012

 

Three Months Ended June 30,
2011

 

Risk-free interest rates range

 

0.2%

 

0.1% to 1.5%

 

Remaining contractual term (in years)

 

1.2 years

 

0.6 years to 4.9 years

 

Expected volatility range

 

65.8%

 

65.6% to 83.3%

 

Schedule of reconciliation of warrant liability measured at fair value using significant inputs (level 3)

 

 

Warrant liability:

 

 

 

Balance at March 31, 2012

 

$

791

 

Total realized and unrealized (gains) losses:

 

 

 

Income included in change in fair value of warrant liability

 

(149

)

Purchases, issuances and settlement

 

 

Balance at June 30, 2012

 

$

642

 

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Accrued Warranty Reserve (Tables)
3 Months Ended
Jun. 30, 2012
Accrued Warranty Reserve
Schedule of changes in accrued warranty reserve

 

Balance, March 31, 2012

 

$

1,494

 

Standard warranty provision

 

1,197

 

Changes for accrual related to reliability repair programs

 

442

 

Deductions for warranty claims

 

(812

)

Balance, June 30, 2012

 

$

2,321

 

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Basis of Presentation (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended
Mar. 31, 2012
backlogunit
Jun. 30, 2012
backlogunit
Basis of Presentation
Backlog $ 139.5
Backlog units 632
Backlog order expected shipment period 12 months
Minimum period for which cash and cash equivalents are believed to be sufficient to meet the entity's cash needs 12 months
Right to purchase maximum additional number of shares of common stock under put option 19
Number of option exercise periods 2
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Customer Concentrations and Accounts Receivable (Details)
3 Months Ended 12 Months Ended 3 Months Ended
Jun. 30, 2012
Revenue
Customer concentrations
BPC
Jun. 30, 2011
Revenue
Customer concentrations
BPC
Jun. 30, 2011
Revenue
Customer concentrations
E-Finity Distributed Generation, LLC
Jun. 30, 2012
Revenue
Customer concentrations
Pumps and Service
Jun. 30, 2012
Revenue
Customer concentrations
Regatta Solutions, Inc
Jun. 30, 2012
Net accounts receivable
Credit concentration
BPC
Mar. 31, 2012
Net accounts receivable
Credit concentration
BPC
Jun. 30, 2012
Net accounts receivable
Credit concentration
Pumps and Service
Jun. 30, 2012
Net accounts receivable
Credit concentration
Regatta Solutions, Inc
Customer Concentrations and Accounts Receivable
Concentration percentage 19.00% 22.00% 11.00% 33.00% 10.00% 34.00% 44.00% 21.00% 10.00%
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Inventories (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2012
Mar. 31, 2012
Inventories
Raw materials $ 19,670 $ 18,476
Work in process 97 151
Finished goods 2,785 1,567
Total 22,552 20,194
Less non-current portion (2,466) (1,313)
Current portion $ 20,086 $ 18,881
Weighted average age of non-current portion of inventories 1 year 4 months 24 days
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Inventories (Details 2) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2012
Mar. 31, 2012
Jun. 30, 2016
Forecast
Jun. 30, 2015
Forecast
Jun. 30, 2014
Forecast
Non-current Inventory Balance Expected to be Used $ 2,466 $ 1,313 $ 290 $ 465 $ 1,711
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Property, Plant and Equipment (Details) (USD $)
3 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Mar. 31, 2012
Property, Plant and Equipment
Total property, plant and equipment, gross $ 35,214,000 $ 35,082,000
Less, accumulated depreciation (30,775,000) (30,249,000)
Total property, plant and equipment, net 4,439,000 4,833,000
Depreciation expense 600,000 600,000
Machinery, rental equipment, equipment, automobiles and furniture
Property, Plant and Equipment
Total property, plant and equipment, gross 20,617,000 20,506,000
Leasehold improvements
Property, Plant and Equipment
Total property, plant and equipment, gross 9,694,000 9,696,000
Molds and tooling
Property, Plant and Equipment
Total property, plant and equipment, gross $ 4,903,000 $ 4,880,000
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Intangible Assets (Details) (USD $)
3 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Mar. 31, 2012
Jun. 30, 2012
Manufacturing license
Mar. 31, 2012
Manufacturing license
Jun. 30, 2012
Technology
Mar. 31, 2012
Technology
Jun. 30, 2012
Parts and service customer relationships
Mar. 31, 2012
Parts and service customer relationships
Jun. 30, 2012
TA100 customer relationships
Mar. 31, 2012
TA100 customer relationships
Jun. 30, 2012
Backlog
Mar. 31, 2012
Backlog
Jun. 30, 2012
Trade name
Mar. 31, 2012
Trade name
Intangible Assets
Weighted Average Amortization Period 17 years 17 years 10 years 10 years 5 years 5 years 2 years 2 years 1 year 2 months 12 days 1 year 2 months 12 days
Intangible Assets, Gross $ 8,196,000 $ 8,196,000 $ 3,700,000 $ 3,700,000 $ 2,240,000 $ 2,240,000 $ 1,080,000 $ 1,080,000 $ 617,000 $ 617,000 $ 490,000 $ 490,000 $ 69,000 $ 69,000
Accumulated Amortization 5,516,000 5,385,000 3,450,000 3,437,000 541,000 485,000 522,000 468,000 617,000 617,000 317,000 309,000 69,000 69,000
Intangible assets, net 2,680,000 2,811,000 250,000 263,000 1,699,000 1,755,000 558,000 612,000 173,000 181,000
Amortization expenses 100,000 200,000
Expected future amortization expense of intangible assets
2013 (remainder of fiscal year) 539,000
2014 489,000
2015 453,000
2016 273,000
2017 273,000
Thereafter 653,000
Intangible assets, net $ 2,680,000 $ 2,811,000 $ 250,000 $ 263,000 $ 1,699,000 $ 1,755,000 $ 558,000 $ 612,000 $ 173,000 $ 181,000
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Intangible Assets (Details 2) (USD $)
3 Months Ended 12 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Mar. 31, 2012
Minimum
Intangible Assets
Estimated useful lives of acquired intangible assets (in years) 1 year
Maximum
Intangible Assets
Estimated useful lives of acquired intangible assets (in years) 10 years
Solar
Intangible Assets
Royalties earned $ 16,000 $ 18,600
Unpaid earned royalties $ 16,000 $ 17,500
Years subject to payment of per-unit royalty fees 17 years
CPS
Intangible Assets
Capacity of microturbine product line (in kW) 100
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Stock-Based Compensation (Details)
3 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Mar. 31, 2012
Stock-Based Compensation
Options outstanding (in shares) 3,300,000
Options prior to Fiscal 2008
Stock-Based Compensation
Options granted (in shares) 3,050,000
Stock options
Stock-Based Compensation
Options outstanding (in shares) 9,910,655 10,039,651
Options granted (in shares) 250,000
Portion vesting one year after the issuance date (as a percent) 25.00%
Portion vesting on first day of each month after one year from the issuance date (as a percent) 2.08%
Vesting period of awards after issuance date (in years) 1 year
Vesting period after one year of grant (in months) 48 months
Contractual term (in years) 10 years
Stock options | President and chief executive officer
Stock-Based Compensation
Options granted (in shares) 2,000,000
Stock options | Executive vice president of sales and marketing
Stock-Based Compensation
Options granted (in shares) 850,000
Stock options | Senior vice president of program management
Stock-Based Compensation
Options granted (in shares) 250,000
Stock options | Senior vice president of human resources
Stock-Based Compensation
Options granted (in shares) 200,000
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Stock-Based Compensation (Details 2) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Stock-Based Compensation
Stock-based compensation expense $ 338 $ 420
Cost of goods sold
Stock-Based Compensation
Stock-based compensation expense 27 38
Research and development
Stock-Based Compensation
Stock-based compensation expense 75 81
Selling, general and administrative
Stock-Based Compensation
Stock-based compensation expense $ 236 $ 301
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Stock-Based Compensation (Details 3) (USD $)
3 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Shares
Outstanding at the end of the period (in shares) 3,300,000
Share based compensation expenses $ 338,000 $ 420,000
Stock options
Shares
Outstanding at the beginning of the period (in shares) 10,039,651
Granted (in shares) 250,000
Forfeited, cancelled or expired (in shares) (128,996)
Outstanding at the end of the period (in shares) 9,910,655
Vested and expected to vest (in shares) 9,848,088
Exercisable (in shares) 8,486,443
Share based compensation expenses 200,000 200,000
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) $ 1.41
Forfeited, cancelled or expired (in dollars per share) $ 2.15
Outstanding at the end of the period (in dollars per share) $ 1.4
Vested and expected to vest (in dollars per share) $ 1.4
Exercisable (in dollars per share) $ 1.42
Weighted Average Remaining Contractual Term (in years)
Outstanding at the end of the period 5 years 6 months 18 days
Vested and expected to vest 5 years 6 months 11 days
Exercisable 5 years 1 month 20 days
Aggregate Intrinsic Value
Outstanding at the end of the period 463,617
Vested or expected to vest 463,409
Exercisable 417,179
Additional disclosure
Weighted average grant date fair value (in dollars per share) $ 1.77
Unrecognized compensation cost $ 1,200,000
Weighted average period for recognizing compensation cost 2 years
Weighted-average assumptions used to calculate estimated fair value of each stock option
Risk-free interest rates (as a percent) 0.00% 1.98%
Expected lives (in years) 0 years 5 years
Dividend yield (as a percent) 0.00% 0.00%
Expected volatility (as a percent) 0.00% 89.20%
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Stock-Based Compensation (Details 4) (USD $)
3 Months Ended 1 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Restricted stock units
Jun. 30, 2011
Restricted stock units
Jun. 30, 2012
Options
Jun. 30, 2011
Options
Jun. 30, 2012
Non-employee director
Jun. 30, 2011
Non-employee director
Jun. 30, 2012
President, Chief Executive Officer and eligible executives
Restricted stock units
Incentive Plan
Jun. 30, 2012
President, Chief Executive Officer and eligible executives
Options
Incentive Plan
Stock-Based Compensation
Number of shares issued 22,162 14,681
Weighted average grant date fair value of shares issued (in dollars per share) $ 0.95 $ 1 $ 1.67
Shares
Unvested, balance at the end of the period (in shares) 1,143,262
Granted (in shares) 38,000 427,080
Vested and issued (in shares) (247,245)
Forfeited (in shares) (3,288)
Unvested, balance at the end of the period (in shares) 930,729
Awards expected to vest (in shares) 864,127
Weighted Average Grant-Date Fair Value
Unvested restricted stock units outstanding at the beginning of the period (in dollars per share) $ 1.2
Granted (in dollars per share) $ 0.95 $ 1 $ 1.67
Vested and issued (in dollars per share) $ 1
Forfeited (in dollars per share) $ 1.2
Unvested restricted stock units outstanding at the end of the period (in dollars per share) $ 1.16
Awards expected to vest (in dollars per share) $ 1.16
Additional disclosure
Total fair value of units vested and issued $ 100,000 $ 400,000
Stock-based compensation expense 338,000 420,000 100,000 200,000 200,000 200,000
Unrecognized compensation cost $ 800,000
Weighted average period for recognizing compensation cost 2 years 2 months 12 days 2 years
Options granted (in shares) 250,000 1,708,330
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Underwritten and Registered Direct Placement of Common Stock (Details) (USD $)
1 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended
Mar. 31, 2012
backlogunit
Sep. 30, 2008
Jun. 30, 2011
Jun. 30, 2012
Mar. 05, 2012
Sep. 30, 2009
Sep. 23, 2008
Mar. 31, 2012
Registered direct placement effective date September 23, 2008
Mar. 31, 2011
Warrants exercised on March 9, 2011
Mar. 31, 2012
March 2012 Warrants
Underwritten and Registered Direct Placement of Common Stock
Common stock sold (in shares) 22,600,000 21,500,000
Common stock, par value (in dollars per share) $ 0.001 $ 0.001 $ 0.001 $ 0.001
Number of shares of common stock under warrants issued 22,600,000 6,400,000
Exercise price (in dollars per share) $ 1.55 $ 1.54 $ 1.92
Warrant unit price (in dollars per shares) $ 1.11 $ 14.9
Right to purchase maximum additional number of shares of common stock under put option 19,000,000
Number of option exercise periods 2
Number of trading days prior to the exercise of put option 30 days
Proceeds from issuance of warrants, gross $ 25,000,000
Number of shares of common stock in each unit 1 10
Number of shares of common stock in each warrant 1 3
Gross proceeds from issuance of units under direct placement 25,000,000 32,000,000
Proceeds from issuance of units under direct placement, net of direct transaction costs 23,100,000 29,500,000
Net proceeds from exercise of warrants 3,100,000 500,000
Number of warrants exercised (in shares) 3,600,000 400,000
Proceeds from issuance of warrants $ 966,000 $ 23,100,000
Term of warrants (in years) 5 years
Outstanding warrants (in shares) 3,900,000
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Fair Value Measurements (Details) (Recurring, USD $)
Jun. 30, 2012
Mar. 31, 2012
Total
Fair Value Measurements
Cash Equivalents $ 35,736,000 $ 39,790,000
Warrant liability (642,000) (791,000)
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Measurements
Cash Equivalents 35,736,000 39,790,000
Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Warrant liability $ (642,000) $ (791,000)
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Fair Value Measurements (Details 2) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2012
Warrants
Jun. 30, 2011
Warrants
Minimum
Jun. 30, 2011
Warrants
Maximum
Jun. 30, 2012
Carrying Value
Mar. 31, 2012
Carrying Value
Jun. 30, 2012
Estimated Fair Value
Mar. 31, 2012
Estimated Fair Value
Fair Value Measurements
Obligations under the credit facility $ 13,010 $ 10,431 $ 13,010 $ 10,431
Assumptions for calculating fair value of warrants
Risk-free interest rates range (as a percent) 0.20% 0.10% 1.50%
Remaining contractual term (in years) 1 year 2 months 12 days 7 months 6 days 4 years 10 months 24 days
Expected volatility range (as a percent) 65.80% 65.60% 83.30%
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Fair Value Measurements (Details 3) (Warrants, USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2012
Warrants
Reconciliation of the beginning and ending balances for the warrant liability
Balance at the beginning of the period $ 791
Total realized and unrealized (gains) losses, income included in change in fair value of warrant liability (149)
Purchases, issuances and settlement 0
Balance at the end of the period $ 642
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Revolving Credit Facility (Details) (USD $)
3 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Mar. 31, 2012
Revolving Credit Facility
Outstanding borrowings $ 13,010,000 $ 10,431,000
Interest expense 191,000 231,000
Amortization of deferred financing costs 18,000 48,000
Credit Facility
Revolving Credit Facility
Credit and security agreements 2
Maximum borrowing capacity under facility 15,000,000
Borrowing rate (as a percent) 5.50% 5.50%
Origination fees 100,000
Annual unused line fee (as a percent) 0.25%
Interest rate with respect to letters of credit (as a percent) 1.50%
Outstanding borrowings 13,000,000 10,400,000
Interest expense 200,000 200,000
Amortization of deferred financing costs 18,300 48,600
Credit Facility | Minimum
Revolving Credit Facility
Interest floor amount $ 66,000
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Accrued Warranty Reserve (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2012
Accrued Warranty Reserve
Maximum period of product warranties 18 months
Accrued Warranty Reserve
Balance at the beginning of the period $ 1,494
Standard warranty provision 1,197
Changes for accrual related to reliability repair programs 442
Deductions for warranty claims (812)
Balance at the end of the period $ 2,321
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Other Current Liabilities (Details) (USD $)
3 Months Ended 12 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Mar. 31, 2012
UTCP
Other Current Liabilities
Capacity of microturbine (in kW) 200
Cash contribution $ 12,000,000
In-kind contribution 800,000
Royalty payable (as a percent) 10.00%
Royalty payable after recovery of cash and in-kind services (as a percent) 5.00%
Carrier
Other Current Liabilities
Reduction in predetermined fixed rate royalty (as a percent) 50.00%
Royalties earned 900,000 600,000
Unpaid earned royalties $ 900,000 $ 1,000,000
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Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 1 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Mar. 31, 2012
Jun. 30, 2012
Inventory
Apr. 30, 2011
Inventory
CPS
Lease Commitments
Renewal option period (in years) 5 years
Deferred rent $ 0.2 $ 0.3
Rent expense 0.5 0.5
Commitments and Contingencies
Commitment to purchase 36.4
Remaining TA100 microturbine inventory purchased $ 2.3
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Commitments and Contingencies (Details 2) (DOE, USD $)
In Millions, unless otherwise specified
1 Months Ended 1 Months Ended
Sep. 30, 2010
Research, development and testing of a more efficient microturbine Combined Heat and Power (CHP) system
kW
Jun. 30, 2012
Research, development and testing of a more efficient microturbine Combined Heat and Power (CHP) system
Nov. 30, 2009
Research, development and testing of a more fuel flexible microturbine
Jun. 30, 2012
Research, development and testing of a more fuel flexible microturbine
Commitments and Contingencies
Projected electrical efficiency of microturbine (as a percent) 42.00%
Projected electrical efficiency of C200 microturbine (as a percent) 33.00%
Power output of microturbine (in kW) 370
Period of research, development and testing project (in months) 24 months 24 months
Projected cost of research, development and testing project $ 17.4 $ 3.8
Contribution by other party 5 2.5
Expense to be incurred by the company in research and development 12.4 1.3
Cumulative amount of bill under contract $ 1 $ 1.3
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Commitments and Contingencies (Details 3) (Purported stockholder class action lawsuit filed in Washington District Court)
1 Months Ended
Jan. 31, 2011
Mar. 31, 2009
Jul. 31, 2008
issuer
Purported stockholder class action lawsuit filed in Washington District Court
Commitments and Contingencies
Number of other issuers to file the Issuer Defendants' Joint Motion to Dismiss 29
Notice of potential claims prior to filing suit (in years) 5 years
Stay period of cases (in days) 90 days
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Net Loss Per Common Share (Details)
In Millions, unless otherwise specified
3 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Antidilutive stock options and restricted stock units
Net Income (Loss) Per Common Share
Securities excluded from diluted net loss per common share computations 10.8 12.3
Warrants
Net Income (Loss) Per Common Share
Securities excluded from diluted net loss per common share computations 26.5 21.1
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