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Document and Entity Information
3 Months Ended
Jun. 30, 2013
Jul. 31, 2013
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, 2013
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 304,883,615
Document Fiscal Year Focus 2014
Document Fiscal Period Focus Q1
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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Mar. 31, 2013
Current Assets:
Cash and cash equivalents $ 21,598 $ 38,817
Accounts receivable, net of allowance for doubtful accounts of $2,159 at June 30, 2013 and $2,142 at March 31, 2013 23,677 17,941
Inventories 25,922 18,513
Prepaid expenses and other current assets 2,152 2,588
Total current assets 73,349 77,859
Property, plant and equipment, net 3,401 3,543
Non-current portion of inventories 3,076 3,252
Intangible assets, net 2,191 2,313
Other assets 337 371
Total 82,354 87,338
Current Liabilities:
Accounts payable and accrued expenses 25,802 24,121
Accrued salaries and wages 2,176 1,721
Accrued warranty reserve 2,717 2,299
Deferred revenue 2,572 3,089
Revolving credit facility 12,755 13,476
Current portion of notes payable and capital lease obligations 221 361
Warrant liability 10 10
Total current liabilities 46,253 45,077
Long-term portion of notes payable and capital lease obligations 210 233
Other long-term liabilities 131 142
Commitments and contingencies (Note 15)      
Stockholders' Equity:
Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued      
Common stock, $.001 par value; 515,000,000 shares authorized; 305,982,536 shares issued and 304,883,615 shares outstanding at June 30, 2013; 305,661,276 shares issued and 304,622,573 shares outstanding at March 31, 2013 306 306
Additional paid-in capital 797,507 796,767
Accumulated deficit (760,773) (753,975)
Treasury stock, at cost; 1,098,921 shares at June 30, 2013 and 1,038,703 shares at March 31, 2013 (1,280) (1,212)
Total stockholders' equity 35,760 41,886
Total $ 82,354 $ 87,338
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 30, 2013
Mar. 31, 2013
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars) $ 2,159 $ 2,142
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 515,000,000 515,000,000
Common stock, shares issued 305,982,536 305,661,276
Common stock, shares outstanding 304,883,615 304,622,573
Treasury stock, shares 1,098,921 1,038,703
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Jun. 30, 2013
Jun. 30, 2012
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue $ 24,373 $ 28,812
Cost of goods sold 21,050 26,643
Gross margin 3,323 2,169
Operating expenses:
Research and development 2,335 2,204
Selling, general and administrative 7,568 7,448
Total operating expenses 9,903 9,652
Loss from operations (6,580) (7,483)
Other (expense) income (14) 22
Interest expense (186) (191)
Change in fair value of warrant liability 149
Loss before income taxes (6,780) (7,503)
Provision for income taxes 18 272
Net loss $ (6,798) $ (7,775)
Net loss per common share-basic and diluted (in dollars per share) $ (0.02) $ (0.03)
Weighted average shares used to calculate net loss per common share (in shares) 304,720 299,434
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Cash Flows from Operating Activities:
Net loss $ (6,798) $ (7,775)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 602 740
Amortization of deferred financing costs 56 18
Provision for allowance for doubtful accounts 25 637
Inventory write-down 316 313
Provision for warranty expenses 1,356 1,639
Loss on disposal of equipment 2
Stock-based compensation 734 338
Change in fair value of warrant liability (149)
Changes in operating assets and liabilities:
Accounts receivable (5,761) (514)
Inventories (7,549) (2,671)
Prepaid expenses and other current assets 505 478
Accounts payable and accrued expenses 1,610 453
Accrued salaries and wages and long term liabilities 444 402
Accrued warranty reserve (938) (812)
Deferred revenue (517) (125)
Net cash used in operating activities (15,915) (7,026)
Cash Flows from Investing Activities:
Expenditures for property and equipment (263) (271)
Net cash used in investing activities (263) (271)
Cash Flows from Financing Activities:
Net (repayment of) proceeds from revolving credit facility (721) 2,579
Repayment of notes payable and capital lease obligations (259) (98)
Net cash used in employee stock-based transactions (61) (19)
Net cash (used in) provided by financing activities (1,041) 2,462
Net decrease in Cash and Cash Equivalents (17,219) (4,835)
Cash and Cash Equivalents, Beginning of Period 38,817 49,952
Cash and Cash Equivalents, End of Period 21,598 45,117
Cash paid during the period for:
Interest 146 184
Income taxes 65 272
Supplemental Disclosures of Non-Cash Information:
Purchases of property and equipment included in accounts payable $ 92 $ 128
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Business and Organization
3 Months Ended
Jun. 30, 2013
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, 2013
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, 2013 was derived from audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2013. 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, 2013. 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. The Company’s net loss from operations for the first quarter of Fiscal 2014 and 2013 was $6.6 million and $7.5 million, respectively. Management believes the improvement in the net loss will continue as the Company makes overall progress on its path to profitability. The Company’s cash and cash equivalents as of June 30, 2013 and March 31, 2013 were $21.6 million and $38.8 million, respectively. The Company’s working capital requirements during the first quarter of Fiscal 2014 were higher than planned primarily as a result of slower collection of accounts receivable and lower than anticipated inventory turns. Additionally, the Company did not fully achieve its planned number of product shipments primarily as a result of customer credit limits.

 

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 or the Company is unable to improve its performance in the areas discussed above, it is possible that the Company may need to raise additional capital. The Company may seek to raise funds 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, 2013
Recently Issued Accounting Standards
Recently Issued Accounting Standards

3.  Recently Issued Accounting Standards

 

In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, “Income Taxes (Topic 740) — Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 defines the criteria as to when an unrecognized tax benefit should be presented as a liability and when it should be netted against a deferred tax asset on the face of the balance sheet. ASU 2013-11 is effective for fiscal years beginning after December 15, 2013. The Company does not believe that the adoption of the provisions of ASU 2013-11 will have a material impact on its consolidated financial position or results of operations.

 

In February 2013, FASB issued ASU 2013-02, Comprehensive Income (Topic 220), “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” effective for annual and interim reporting periods beginning after December 15, 2012. The new accounting rules require all U.S. public companies to report the effect of items reclassified out of accumulated other comprehensive income on the respective line items of net income, net of tax, either on the face of the financial statements where net income is presented or in a tabular format in the notes to the financial statements. The Company adopted this updated guidance with no impact on its consolidated financial position or results of operations.

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Customer Concentrations and Accounts Receivable
3 Months Ended
Jun. 30, 2013
Customer Concentrations and Accounts Receivable
Customer Concentrations and Accounts Receivable

4.  Customer Concentrations and Accounts Receivable

 

Sales to Horizon Power Systems (“Horizon”), one of the Company’s domestic distributors, and E-Finity Distributed Generation, LLC (“E-Finity”), one of the Company’s domestic distributors, accounted for 23% and 20%, respectively, of revenue for the first quarter of Fiscal 2014. Sales to Horizon, Banking Production Centre (“BPC”), one of the Company’s Russian distributors, and Regatta Solutions, Inc. (“Regatta”), one of the Company’s domestic distributors, accounted for 33%, 19% and 10%, respectively, of revenue for the first quarter of Fiscal 2013.

 

Additionally, BPC, Horizon, and E-Finity accounted for 20%, 18% and 17%, respectively, of net accounts receivable as of June 30, 2013. BPC and Regatta accounted for 35% and 11%, respectively, of net accounts receivable as of March 31, 2013.

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Inventories
3 Months Ended
Jun. 30, 2013
Inventories
Inventories

5.  Inventories

 

Inventories are valued on a FIFO basis and lower of cost or market and consisted of the following as of June 30, 2013 and March 31, 2013 (in thousands):

 

 

 

June 30,
2013

 

March 31,
2013

 

 

 

 

 

Raw materials

 

$

22,629

 

$

20,198

 

Finished goods

 

6,369

 

1,567

 

Total

 

28,998

 

21,765

 

Less non-current portion

 

(3,076

)

(3,252

)

Current portion

 

$

25,922

 

$

18,513

 

 

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, 2013 is 1.6 years. The Company expects to use the non-current portion of the inventories on hand as of June 30, 2013 over the periods presented in the following table (in thousands):

 

Expected Period of Use

 

Non-Current Inventory
Balance Expected to be Used

 

 

 

 

 

13 to 24 months

 

$

2,305

 

25 to 36 months

 

498

 

37 to 48 months

 

273

 

Total

 

$

3,076

 

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Property, Plant and Equipment
3 Months Ended
Jun. 30, 2013
Property, Plant and Equipment
Property, Plant and Equipment

6.  Property, Plant and Equipment

 

The Company recorded depreciation expense of $0.5 million during the first quarter of Fiscal 2014 and Fiscal 2013, respectively. Property, plant and equipment consisted of the following (in thousands):

 

 

 

June 30,
2013

 

March 31,
2013

 

 

 

 

 

Machinery, rental equipment, equipment, automobiles and furniture

 

$

20,936

 

$

20,649

 

Leasehold improvements

 

9,710

 

9,708

 

Molds and tooling

 

4,966

 

4,933

 

 

 

35,612

 

35,290

 

Less, accumulated depreciation

 

(32,211

)

(31,747

)

Total property, plant and equipment, net

 

$

3,401

 

$

3,543

 

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Intangible Assets
3 Months Ended
Jun. 30, 2013
Intangible Assets
Intangible Assets

7.  Intangible Assets

 

The Company recorded amortization expense of $0.1 million during the first quarter of Fiscal 2014. Intangible assets consisted of the following (in thousands):

 

 

 

June 30, 2013

 

 

 

Weighted
Average
Amortization
Period

 

Intangible
Assets,
Gross

 

Accumulated
Amortization

 

Intangible
Assets, Net

 

Manufacturing license

 

17 years

 

$

3,700

 

$

3,499

 

$

201

 

Technology

 

10 years

 

2,240

 

765

 

1,475

 

Parts and service customer relationships

 

5 years

 

1,080

 

738

 

342

 

TA100 customer relationships

 

2 years

 

617

 

617

 

 

Backlog

 

Various

 

490

 

317

 

173

 

Trade name

 

1.2 years

 

69

 

69

 

 

Total

 

 

 

$

8,196

 

$

6,005

 

$

2,191

 

 

The Company recorded amortization expense of $0.1 million during the first quarter of Fiscal 2013. Intangible assets consisted of the following (in thousands):

 

 

 

March 31, 2013

 

 

 

Weighted
Average
Amortization
Period

 

Intangible
Assets,
Gross

 

Accumulated
Amortization

 

Intangible
Assets, Net

 

Manufacturing license

 

17 years

 

$

3,700

 

$

3,487

 

$

213

 

Technology

 

10 years

 

2,240

 

709

 

1,531

 

Parts and service customer relationships

 

5 years

 

1,080

 

684

 

396

 

TA100 customer relationships

 

2 years

 

617

 

617

 

 

Backlog

 

Various

 

490

 

317

 

173

 

Trade name

 

1.2 years

 

69

 

69

 

 

Total

 

 

 

$

8,196

 

$

5,883

 

$

2,313

 

 

Expected future amortization expense of intangible assets as of June 30, 2013 is as follows (in thousands):

 

 

 

Amortization
Expense

 

2014 (remainder of fiscal year)

 

$

459

 

2015

 

533

 

2016

 

273

 

2017

 

273

 

2018

 

242

 

Thereafter

 

411

 

Total expected future amortization

 

$

2,191

 

 

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 $25,200 and $16,000 were earned by Solar for the first quarter of Fiscal 2014 and 2013, respectively. Earned royalties of approximately $25,200 and $24,600 were unpaid as of June 30, 2013 and March 31, 2013, respectively, and are included in accounts payable and accrued expenses in the accompanying balance sheets.

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Stock-Based Compensation
3 Months Ended
Jun. 30, 2013
Stock-Based Compensation
Stock-Based Compensation

8.  Stock-Based Compensation

 

The following table summarizes, by statement of operations line item, stock-based compensation expense (in thousands):

 

 

 

Three
Months
Ended
June 30, 2013

 

Three
Months
Ended
June 30, 2012

 

Cost of goods sold

 

$

13

 

$

27

 

Research and development

 

354

 

75

 

Selling, general and administrative

 

367

 

236

 

Stock-based compensation expense

 

$

734

 

$

338

 

 

Stock Plans

 

1993 Incentive Stock Plan and 2000 Equity Incentive Plan

 

In 1993, the Board of Directors adopted and the stockholders approved the 1993 Incentive Stock Plan (“1993 Plan”). A total of 7,800,000 shares of common stock were initially reserved for issuance under the 1993 Plan. In June 2000, the Company adopted the 2000 Equity Incentive Plan (“2000 Plan”) as a successor plan to the 1993 Plan. The 2000 Plan provides for awards of up to 11,180,000 shares of common stock plus 7,800,000 shares previously authorized under the 1993 Plan for a total maximum aggregate number of shares which may be issued of 18,980,000 shares.

 

As of June 30, 2013, the Company had outstanding 3,550,000 non-qualified common stock options issued outside of the 2000 Plan. The Company granted 250,000 of these stock options during the second quarter of Fiscal 2013, 250,000 of these stock options during the first quarter of Fiscal 2012 and 3,050,000 of the options prior to Fiscal 2008 as inducement grants to new officers and employees of the Company, with exercise prices equal to the fair market value of the Company’s common stock on the grant date. Included in the 3,550,000 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, 250,000 options granted to the Company’s Senior Vice President of Customer Service and 200,000 options granted to the Company’s Senior Vice President of Human Resources. Additionally, as of June 30, 2013, the Company had outstanding 62,500 restricted stock units issued outside of the 2000 Plan. These restricted stock units were issued during the second quarter of Fiscal 2013 as an inducement grant to the Company’s Senior Vice President of Customer Service. Although the options and restricted stock units 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. The restricted stock units vest in equal installments over a period of four years. Information relating to all outstanding stock options, except for rights associated with the Amended and Restated 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, 2013

 

11,791,765

 

$

1.33

 

 

 

 

 

Granted

 

1,585,200

 

0.92

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

Forfeited, cancelled or expired

 

(26,083

)

1.49

 

 

 

 

 

Options outstanding at June 30, 2013

 

13,350,882

 

$

1.28

 

5.87

 

$

2,055,658

 

 

 

 

 

 

 

 

 

 

 

Options fully vested at June 30, 2013 and those expected to vest beyond June 30, 2013

 

13,011,245

 

$

1.29

 

5.78

 

$

1,972,213

 

 

 

 

 

 

 

 

 

 

 

Options exercisable at June 30, 2013

 

9,605,095

 

$

1.38

 

4.60

 

$

1,250,937

 

 

The weighted average per share grant date fair value of options granted during the first quarter of Fiscal 2014 was $0.60. There were no stock options granted during the first quarter of Fiscal 2013.There were no stock options exercised during the first quarter of Fiscal 2014 or Fiscal 2013. The Company recorded expense of approximately $0.4 million and $0.2 million associated with its stock options during the first quarter of Fiscal 2014 and Fiscal 2013, respectively. As of June 30, 2013, there was approximately $2.3 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 3.1 years.

 

The Company calculated the estimated fair value of each stock option granted during the first quarter of Fiscal 2014 on the date of grant using the Black-Scholes option-pricing model and the following weighted-average assumptions:

 

 

 

Three
Months
Ended
June 30, 2013

 

Risk-free interest rates

 

0.9

%

Expected lives (in years)

 

5.7

 

Dividend yield

 

%

Expected volatility

 

77.3

%

Weighted average grant date fair value of options granted during the period

 

$

0.60

 

 

The Company’s computation of expected volatility for the first quarter of Fiscal 2014 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. 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 2014 and 2013 has been reduced by estimated forfeitures. Management’s estimate of forfeitures is based on historical forfeitures. The following table outlines the restricted stock unit activity:

 

 

 

Shares

 

Weighted
Average
Grant-Date
Fair Value

 

Nonvested restricted stock units outstanding at March 31, 2013

 

1,467,096

 

$

1.10

 

 

 

 

 

 

 

Granted

 

530,060

 

0.95

 

Vested and issued

 

(292,914

)

1.13

 

Forfeited

 

(18,320

)

0.96

 

 

 

 

 

 

 

Nonvested restricted stock units outstanding at June 30, 2013

 

1,685,922

 

$

1.05

 

Restricted stock units expected to vest beyond June 30, 2013

 

1,515,907

 

$

1.05

 

 

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 weighted average per share grant date fair value of restricted stock granted during the first quarter of each of Fiscal 2014 and Fiscal 2013 was $0.95. The total fair value of restricted stock units vested and issued by the Company during the first quarter of Fiscal 2014 and Fiscal 2013 was approximately $0.3 million and $0.1 million, respectively. The Company recorded expense of approximately $0.3 million and $0.1 million associated with its restricted stock awards and units during the first quarter of Fiscal 2014 and Fiscal 2013, respectively. As of June 30, 2013, there was approximately $1.2 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 2.6 years.

 

During the first quarter of Fiscal 2014 and Fiscal 2013, the Company issued a total of 22,258 and 22,162 shares of stock, respectively, to non-employee directors who elected to take payment of all or any portion of their 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 2014 and Fiscal 2013 was $1.28 and $1.00, respectively.

 

Stockholder Rights Plan

 

The Company has entered into a rights agreement (as amended, the “Rights Agreement”) with Computershare, Inc. successor in interest to Mellon Investor Services LLC, as rights agent. In connection with the Rights Agreement, the Company’s board of directors authorized and declared a dividend distribution of one preferred stock purchase right for each share of the Company’s common stock authorized and outstanding. Each right entitles the registered holder to purchase from the Company a unit consisting of one one-hundredth of a share of Series A Junior Participating Preferred Stock, par value $0.001 per share, at a purchase price of $10.00 per unit, subject to adjustment. The description and terms of the rights are set forth in the Rights Agreement. Initially, the rights are attached to all common stock certificates representing shares then outstanding, and no separate rights certificates are distributed. Subject to certain exceptions specified in the Rights Agreement, the rights will separate from the common stock and will be exercisable upon the earlier of (i) 10 days following a public announcement that a person or group of affiliated or associated persons has acquired, or obtained the right to acquire, beneficial ownership of 20% or more of the outstanding shares of common stock, other than as a result of repurchases of stock by the Company or certain inadvertent actions by institutional or certain other stockholders, or (ii) 10 days (or such later date as the Company’s Board of Directors shall determine) following the commencement of a tender offer or exchange offer (other than certain permitted offers described in the Rights Agreement) that would result in a person or group beneficially owning 20% or more of the outstanding shares of the Company’s common stock. On June 9, 2011, the Company’s Board of Directors unanimously approved a second amendment to the Rights Agreement, which was approved by the stockholders in August 2011. The second amendment adds an additional “sunset provision,” which provides that the Rights Agreement will expire on the 30th day after the 2014 annual meeting of stockholders unless continuation of the Rights Agreement is approved by the stockholders at that meeting.  The second amendment also provides for an update to the definition of “Beneficial Owner” to include derivative interests in the calculation of a stockholder’s ownership.  In addition, the second amendment clarifies the manner in which the exchange provision of the Rights Agreement shall be effected.  The rights are intended to protect the Company’s stockholders in the event of an unfair or coercive offer to acquire the Company. Management believes the rights, however, should not affect any prospective offeror willing to make an offer at a fair price and otherwise in the best interests of the Company and its stockholders, as determined by the Board of Directors. Also, management believes the rights should also not interfere with any merger or other business combination approved by the Board of Directors.

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Underwritten and Registered Direct Placement of Common Stock
3 Months Ended
Jun. 30, 2013
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 (the “2012 Warrants”). Each unit consisted of one share of common stock and a warrant to purchase one share of common stock. The 2012 Warrants expire on October 31, 2013. The March 2012 sale resulted in net proceeds of approximately $23.1 million net of direct incremental costs of approximately $1.9 million. 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 Options”) 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. Each Put Option was subject to certain conditions which reduced the number of shares that could be sold or eliminate the Put Option. These conditions included 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.

 

On September 18, 2012, the Company entered into an Investor Agreement with one of the investors in the 2012 registered direct offering pursuant to which the investor agreed to (i) waive the condition precedent to the Company’s exercise of the Put Option requiring the arithmetic average of the average daily trading volumes during the measurement period set forth in the subscription agreement between the Company and the investor and on the exercise date be not less than 1.75 million shares and (ii) amend the subscription agreement to provide that the purchase price of the additional shares during the first exercise period would be discounted pursuant to a formula that resulted in a purchase price for the first exercise period of $0.94 per share. Additionally, pursuant to the Investor Agreement, the Company agreed to amend the exercise price of the 2012 Warrants originally issued to the Investor to $1.26. The exercise of the first Put Option resulted in net proceeds of $4.2 million. The 2012 Warrants still outstanding as of June 30, 2013 provided for the purchase of 22.6 million shares at a weighted average exercise price of $1.41 per share. On February 21, 2013, the Company entered into a letter agreement (each a “Letter Agreement” and, collectively, the “Letter Agreements”) with each of the investors in the 2012 registered direct offering. Pursuant to the Letter Agreements, the parties evidenced their mutual agreement that the Company would not exercise any portion of the second Put Option. The Company chose not to exercise the second of the two Put Options because of its improved cash position at the time and its desire to avoid stockholder dilution.

 

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, subject to certain limitations. The sale resulted in gross proceeds of approximately $32.0 million and proceeds, net of direct incremental costs, 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. An underwritten public offering in February 2010, registered direct placements in March 2012, September 2009 and May 2009 and the exercise of the Put Option described above 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, 2013 represented warrants to purchase 4.0 million shares at an exercise price of $1.52 per share. These warrants are classified as liabilities under the caption “Warrant liability” in the accompanying consolidated 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, 2013
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 2014 and are categorized using the fair value hierarchy (in thousands):

 

 

Fair Value Measurements at June 30, 2013

 

 

 

Total

 

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

 

Significant Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Cash Equivalents

 

$

8,742

 

$

8,742

 

$

 

$

 

Warrant Liability

 

$

(10

)

$

 

$

 

$

(10

)

 

Cash equivalents include cash held in money market and U.S. treasury funds at June 30, 2013.

 

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, 2013 and are categorized using the fair value hierarchy (in thousands):

 

 

 

Fair Value Measurements at March 31, 2013

 

 

 

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

 

$

27,742

 

$

27,742

 

$

 

$

 

Warrant Liability

 

$

(10

)

$

 

$

 

$

(10

)

 

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, 2013

 

As of
March 31, 2013

 

 

 

Carrying
Value

 

Estimated
Fair Value

 

Carrying
Value

 

Estimated
Fair Value

 

Obligations under credit facility

 

$

12,755

 

$

12,755

 

$

13,476

 

$

13,476

 

 

The fair value of the Company’s warrant liability 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.

 

From time to time, the Company has sold 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.

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Revolving Credit Facility
3 Months Ended
Jun. 30, 2013
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.

 

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 which was $17.8 million as of June 30, 2013, and (c) limitations on the Company’s annual capital expenditures. The Agreements also define an event of default to include a material adverse effect on the Company’s business, as determined by Wells Fargo. An event of default for this or any other reason, if not waived, would have a material adverse effect on the Company.

 

The Company has pledged its accounts receivable, inventories, equipment, patents and other assets as collateral for its 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. 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. On June 7, 2013, the Company entered into an amendment to the Agreements which set the financial covenants for Fiscal 2014. As of June 30, 2013 the Company was in compliance with the covenants contained in the amended Agreements for Fiscal 2014.

 

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 June 30, 2013 and March 31, 2013 was 4.1% and 5.4%, 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, 2013 and March 31, 2013, $12.8 million and $13.5 million in borrowings were outstanding, respectively, under the Credit Facility. As of June 30, 2013, approximately $0.8 million was available for additional borrowing. Interest expense related to the Credit Facility during the first quarter of each of Fiscal 2014 and Fiscal 2013 was $0.2 million, which includes $0.1 million in amortization of deferred financing costs.

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Accrued Warranty Reserve
3 Months Ended
Jun. 30, 2013
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 microturbine product sold and its geographic location. 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 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 are as follows during the first quarter of Fiscal 2014 (in thousands):

 

 

 

 

 

Balance, beginning of the period

 

$

2,299

 

Standard warranty provision

 

641

 

Changes for accrual related to reliability repair programs

 

715

 

Deductions for warranty claims

 

(938

)

Balance, end of the period

 

$

2,717

 

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Deferred Revenue
3 Months Ended
Jun. 30, 2013
Deferred Revenue
Deferred Revenue

13.  Deferred Revenue

 

Changes in deferred revenue are as follows during the first quarter of Fiscal 2014 (in thousands):

 

 

 

 

 

FPP Balance, beginning of the period

 

$

1,412

 

FPP Billings

 

1,785

 

FPP Revenue recognized

 

(1,546

)

Balance attributed to FPP contracts

 

1,651

 

Deposits

 

921

 

Deferred revenue balance, end of the period

 

$

2,572

 

 

Comprehensive Factory Protection Plan (“FPP”) deferred revenue represents the unearned portion of our agreements. FPP agreements are generally paid quarterly in advance with revenue recognized on a straight line basis over the contract period. Deposits are primarily non-refundable cash payments from distributors for future orders.

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Other Current Liabilities
3 Months Ended
Jun. 30, 2013
Other Current Liabilities
Other Current Liabilities

14.  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”).

 

On January 14, 2011, the Company entered into an amendment to the Development Agreement with Carrier. The amendment amends the royalty payment from a certain percentage of the sales prices to a predetermined fixed rate for each microturbine system covered by the amendment. This predetermined fixed rate will be reduced by 50% once the aggregate of Carrier’s cash and in-kind services investment has been recovered. Carrier earned approximately $0.8 million and $0.9 million in royalties for C200 and C1000 Series system sales during the first quarter of Fiscal 2014 and Fiscal 2013, respectively. Earned royalties of approximately $0.8 million and $1.4 million were unpaid as of June 30, 2013 and March 31, 2013, respectively, and are included in accrued expenses in the accompanying balance sheets.

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Commitments and Contingencies
3 Months Ended
Jun. 30, 2013
Commitments and Contingencies
Commitments and Contingencies

15.  Commitments and Contingencies

 

Purchase Commitments

 

As of June 30, 2013, the Company had firm commitments to purchase inventories of approximately $30.1 million through the first quarter of Fiscal 2015. 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.

 

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, 2018. 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 $0.1 million as of each of June 30, 2013 and March 31, 2013. Rent expense was approximately $0.6 million and $0.5 million during the first quarter of Fiscal 2014 and first quarter of Fiscal 2013, respectively.

 

Other Commitments

 

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 CHP system. Part of the improved efficiency will come from an improved microturbine design, with a projected electrical efficiency of 42% and power output of 370 kW. The project is estimated to cost approximately $17.4 million. The DOE will contribute $5.0 million toward the project, and the Company will incur approximately $12.4 million in research and development expense. During Fiscal 2012 this project was extended until September 2013. The Company billed the DOE under the contract for this project a cumulative amount of $2.6 million through June 30, 2013.

 

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 cost approximately $3.8 million. The DOE will contribute $2.5 million under the program, and the Company will incur approximately $1.3 million in research and development expense. During Fiscal 2012 this project was extended until September 2013. The Company billed the DOE under this contract a cumulative amount of $1.3 million through June 30, 2013.

 

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, 2013 and March 31, 2013, no significant inventories were held at distributors.

 

Legal Matters

 

From time to time, the Company may become subject to certain legal proceedings, claims and litigation arising in the ordinary course of business. In the opinion of management, the Company is not currently a party to any 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 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, 2013
Net Loss Per Common Share
Net Loss Per Common Share

16.  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, 2013 which would make these instruments anti-dilutive. As of June 30, 2013 and 2012, the number of anti-dilutive stock options and restricted stock units excluded from diluted net loss per common share computations was approximately 15.0 million and 10.8 million, respectively. As of each of June 30, 2013 and 2012, the number of warrants excluded from diluted net loss per common share computations was approximately 26.5 million.

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Inventories (Tables)
3 Months Ended
Jun. 30, 2013
Inventories
Summary of inventory

Inventories are valued on a FIFO basis and lower of cost or market and consisted of the following as of June 30, 2013 and March 31, 2013 (in thousands):

 

 

 

June 30,
2013

 

March 31,
2013

 

 

 

 

 

Raw materials

 

$

22,629

 

$

20,198

 

Finished goods

 

6,369

 

1,567

 

Total

 

28,998

 

21,765

 

Less non-current portion

 

(3,076

)

(3,252

)

Current portion

 

$

25,922

 

$

18,513

 

Schedule of expected usage for non-current inventory

The Company expects to use the non-current portion of the inventories on hand as of June 30, 2013 over the periods presented in the following table (in thousands):

 

Expected Period of Use

 

Non-Current Inventory
Balance Expected to be Used

 

 

 

 

 

13 to 24 months

 

$

2,305

 

25 to 36 months

 

498

 

37 to 48 months

 

273

 

Total

 

$

3,076

 

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Property, Plant and Equipment (Tables)
3 Months Ended
Jun. 30, 2013
Property, Plant and Equipment
Schedule of property, plant and equipment

Property, plant and equipment consisted of the following (in thousands):

 

 

 

June 30,
2013

 

March 31,
2013

 

 

 

 

 

Machinery, rental equipment, equipment, automobiles and furniture

 

$

20,936

 

$

20,649

 

Leasehold improvements

 

9,710

 

9,708

 

Molds and tooling

 

4,966

 

4,933

 

 

 

35,612

 

35,290

 

Less, accumulated depreciation

 

(32,211

)

(31,747

)

Total property, plant and equipment, net

 

$

3,401

 

$

3,543

 

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Intangible Assets (Tables)
3 Months Ended
Jun. 30, 2013
Intangible Assets
Schedule of intangible assets

         Intangible assets consisted of the following (in thousands):

 

 

 

June 30, 2013

 

 

 

Weighted
Average
Amortization
Period

 

Intangible
Assets,
Gross

 

Accumulated
Amortization

 

Intangible
Assets, Net

 

Manufacturing license

 

17 years

 

$

3,700

 

$

3,499

 

$

201

 

Technology

 

10 years

 

2,240

 

765

 

1,475

 

Parts and service customer relationships

 

5 years

 

1,080

 

738

 

342

 

TA100 customer relationships

 

2 years

 

617

 

617

 

 

Backlog

 

Various

 

490

 

317

 

173

 

Trade name

 

1.2 years

 

69

 

69

 

 

Total

 

 

 

$

8,196

 

$

6,005

 

$

2,191

 

 

Intangible assets consisted of the following (in thousands):

 

 

 

March 31, 2013

 

 

 

Weighted
Average
Amortization
Period

 

Intangible
Assets,
Gross

 

Accumulated
Amortization

 

Intangible
Assets, Net

 

Manufacturing license

 

17 years

 

$

3,700

 

$

3,487

 

$

213

 

Technology

 

10 years

 

2,240

 

709

 

1,531

 

Parts and service customer relationships

 

5 years

 

1,080

 

684

 

396

 

TA100 customer relationships

 

2 years

 

617

 

617

 

 

Backlog

 

Various

 

490

 

317

 

173

 

Trade name

 

1.2 years

 

69

 

69

 

 

Total

 

 

 

$

8,196

 

$

5,883

 

$

2,313

 

Schedule of expected future amortization expense of intangible assets

Expected future amortization expense of intangible assets as of June 30, 2013 is as follows (in thousands):

 

 

 

Amortization
Expense

 

2014 (remainder of fiscal year)

 

$

459

 

2015

 

533

 

2016

 

273

 

2017

 

273

 

2018

 

242

 

Thereafter

 

411

 

Total expected future amortization

 

$

2,191

 

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Stock-Based Compensation (Tables)
3 Months Ended
Jun. 30, 2013
Stock-Based Compensation
Summary of stock-based compensation expense by statement of operations line item

The following table summarizes, by statement of operations line item, stock-based compensation expense (in thousands):

 

 

 

Three
Months
Ended
June 30, 2013

 

Three
Months
Ended
June 30, 2012

 

Cost of goods sold

 

$

13

 

$

27

 

Research and development

 

354

 

75

 

Selling, general and administrative

 

367

 

236

 

Stock-based compensation expense

 

$

734

 

$

338

 

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, 2013

 

11,791,765

 

$

1.33

 

 

 

 

 

Granted

 

1,585,200

 

0.92

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

Forfeited, cancelled or expired

 

(26,083

)

1.49

 

 

 

 

 

Options outstanding at June 30, 2013

 

13,350,882

 

$

1.28

 

5.87

 

$

2,055,658

 

 

 

 

 

 

 

 

 

 

 

Options fully vested at June 30, 2013 and those expected to vest beyond June 30, 2013

 

13,011,245

 

$

1.29

 

5.78

 

$

1,972,213

 

 

 

 

 

 

 

 

 

 

 

Options exercisable at June 30, 2013

 

9,605,095

 

$

1.38

 

4.60

 

$

1,250,937

 

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

 

 

 

 

Three
Months
Ended
June 30, 2013

 

Risk-free interest rates

 

0.9

%

Expected lives (in years)

 

5.7

 

Dividend yield

 

%

Expected volatility

 

77.3

%

Weighted average grant date fair value of options granted during the period

 

$

0.60

 

Summary of restricted stock unit activity

 

 

 

 

Shares

 

Weighted
Average
Grant-Date
Fair Value

 

Nonvested restricted stock units outstanding at March 31, 2013

 

1,467,096

 

$

1.10

 

 

 

 

 

 

 

Granted

 

530,060

 

0.95

 

Vested and issued

 

(292,914

)

1.13

 

Forfeited

 

(18,320

)

0.96

 

 

 

 

 

 

 

Nonvested restricted stock units outstanding at June 30, 2013

 

1,685,922

 

$

1.05

 

Restricted stock units expected to vest beyond June 30, 2013

 

1,515,907

 

$

1.05

 

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Fair Value Measurements (Tables)
3 Months Ended
Jun. 30, 2013
Fair Value Measurements
Schedule of assets and liabilities measured at fair value on a recurring basis

The table below presents our assets and liabilities that are measured at fair value on a recurring basis during the first quarter of Fiscal 2014 and are categorized using the fair value hierarchy (in thousands):

 

 

Fair Value Measurements at June 30, 2013

 

 

 

Total

 

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

 

Significant Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Cash Equivalents

 

$

8,742

 

$

8,742

 

$

 

$

 

Warrant Liability

 

$

(10

)

$

 

$

 

$

(10

)

 

 

 

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, 2013 and are categorized using the fair value hierarchy (in thousands):

 

 

 

Fair Value Measurements at March 31, 2013

 

 

 

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

 

$

27,742

 

$

27,742

 

$

 

$

 

Warrant Liability

 

$

(10

)

$

 

$

 

$

(10

)

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

The carrying values and estimated fair values of these obligations are as follows (in thousands):

 

 

 

As of
June 30, 2013

 

As of
March 31, 2013

 

 

 

Carrying
Value

 

Estimated
Fair Value

 

Carrying
Value

 

Estimated
Fair Value

 

Obligations under credit facility

 

$

12,755

 

$

12,755

 

$

13,476

 

$

13,476

 

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Accrued Warranty Reserve (Tables)
3 Months Ended
Jun. 30, 2013
Accrued Warranty Reserve
Schedule of changes in accrued warranty reserve

Changes in accrued warranty reserve are as follows during the first quarter of Fiscal 2014 (in thousands):

 

 

 

 

 

Balance, beginning of the period

 

$

2,299

 

Standard warranty provision

 

641

 

Changes for accrual related to reliability repair programs

 

715

 

Deductions for warranty claims

 

(938

)

Balance, end of the period

 

$

2,717

 

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Deferred Revenue (Tables)
3 Months Ended
Jun. 30, 2013
Deferred Revenue
Schedule of changes in deferred revenue

Changes in deferred revenue are as follows during the first quarter of Fiscal 2014 (in thousands):

 

 

 

 

 

FPP Balance, beginning of the period

 

$

1,412

 

FPP Billings

 

1,785

 

FPP Revenue recognized

 

(1,546

)

Balance attributed to FPP contracts

 

1,651

 

Deposits

 

921

 

Deferred revenue balance, end of the period

 

$

2,572

 

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Basis of Presentation (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Mar. 31, 2013
Mar. 31, 2012
Basis of Presentation
Loss from operations $ (6,580) $ (7,483)
Cash and cash equivalents $ 21,598 $ 45,117 $ 38,817 $ 49,952
Minimum period for which cash and cash equivalents are believed to be sufficient to meet the entity's cash needs 12 months
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Customer Concentrations and Accounts Receivable (Details)
3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Jun. 30, 2013
Revenue
Customer concentrations
Horizon
Jun. 30, 2012
Revenue
Customer concentrations
Horizon
Jun. 30, 2012
Revenue
Customer concentrations
BPC
Jun. 30, 2013
Revenue
Customer concentrations
E-Finity
Jun. 30, 2012
Revenue
Customer concentrations
Regatta
Jun. 30, 2013
Net accounts receivable
Credit concentration
Horizon
Jun. 30, 2013
Net accounts receivable
Credit concentration
BPC
Mar. 31, 2013
Net accounts receivable
Credit concentration
BPC
Jun. 30, 2013
Net accounts receivable
Credit concentration
E-Finity
Mar. 31, 2013
Net accounts receivable
Credit concentration
Regatta
Customer Concentrations and Accounts Receivable
Concentration percentage 23.00% 33.00% 19.00% 20.00% 10.00% 18.00% 20.00% 35.00% 17.00% 11.00%
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Inventories (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2013
Mar. 31, 2013
Inventories
Raw materials $ 22,629 $ 20,198
Finished goods 6,369 1,567
Total 28,998 21,765
Less, non-current portion (3,076) (3,252)
Current portion $ 25,922 $ 18,513
Weighted average age of non-current portion of inventories 1 year 7 months 6 days
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Inventories (Details 2) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Mar. 31, 2013
Jun. 30, 2017
Forecast
Jun. 30, 2016
Forecast
Jun. 30, 2015
Forecast
Non-Current Inventory Balance Expected to be Used $ 3,076 $ 3,252 $ 273 $ 498 $ 2,305
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Property, Plant and Equipment (Details) (USD $)
3 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Mar. 31, 2013
Property, Plant and Equipment
Depreciation expense $ 500,000 $ 600,000
Property, Plant and Equipment
Total property, plant and equipment, gross 35,612,000 35,290,000
Less, accumulated depreciation (32,211,000) (31,747,000)
Total property, plant and equipment, net 3,401,000 3,543,000
Machinery, rental equipment, equipment, automobiles and furniture
Property, Plant and Equipment
Total property, plant and equipment, gross 20,936,000 20,649,000
Leasehold improvements
Property, Plant and Equipment
Total property, plant and equipment, gross 9,710,000 9,708,000
Molds and tooling
Property, Plant and Equipment
Total property, plant and equipment, gross $ 4,966,000 $ 4,933,000
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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, 2013
Jun. 30, 2012
Mar. 31, 2013
Jun. 30, 2013
Manufacturing license
Mar. 31, 2013
Manufacturing license
Jun. 30, 2013
Technology
Mar. 31, 2013
Technology
Jun. 30, 2013
Parts and service customer relationships
Mar. 31, 2013
Parts and service customer relationships
Jun. 30, 2013
TA100 customer relationships
Mar. 31, 2013
TA100 customer relationships
Jun. 30, 2013
Backlog
Mar. 31, 2013
Backlog
Jun. 30, 2013
Trade name
Mar. 31, 2013
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 6,005,000 5,883,000 3,499,000 3,487,000 765,000 709,000 738,000 684,000 617,000 617,000 317,000 317,000 69,000 69,000
Intangible assets, net 2,191,000 2,313,000 201,000 213,000 1,475,000 1,531,000 342,000 396,000 173,000 173,000
Amortization expense 100,000 100,000
Expected future amortization expense of intangible assets
2014 (remainder of fiscal year) 459,000
2015 533,000
2016 273,000
2017 273,000
2018 242,000
Thereafter 411,000
Intangible assets, net $ 2,191,000 $ 2,313,000 $ 201,000 $ 213,000 $ 1,475,000 $ 1,531,000 $ 342,000 $ 396,000 $ 173,000 $ 173,000
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Intangible Assets (Details 2) (Solar, USD $)
3 Months Ended 12 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Mar. 31, 2013
Solar
Intangible Assets
Royalties earned $ 25,200 $ 16,000
Unpaid earned royalties $ 25,200 $ 24,600
Years subject to payment of per-unit royalty fees 17 years
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Stock-Based Compensation (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Stock-Based Compensation
Stock-based compensation expense $ 734 $ 338
Cost of goods sold
Stock-Based Compensation
Stock-based compensation expense 13 27
Research and development
Stock-Based Compensation
Stock-based compensation expense 354 75
Selling, general and administrative
Stock-Based Compensation
Stock-based compensation expense $ 367 $ 236
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Stock-Based Compensation (Details 2)
3 Months Ended 3 Months Ended 3 Months Ended
Jun. 30, 2013
Stock options
Jun. 30, 2012
Stock options
Mar. 31, 2013
Stock options
Jun. 30, 2013
Restricted stock units
Mar. 31, 2013
Restricted stock units
Jun. 30, 2013
Restricted stock units
Senior vice president of customer service
Jun. 30, 2013
1993 Incentive Stock Plan and 2000 Equity Incentive Plan
Jun. 30, 2013
1993 Plan
Jun. 30, 2013
2000 Plan
Jun. 30, 2013
Non-qualified stock options
Jun. 30, 2013
Non-qualified stock options
Non-qualified stock options issued prior to Fiscal 2008
Sep. 30, 2012
Non-qualified stock options
Stock options
Jun. 30, 2011
Non-qualified stock options
Stock options
Jun. 30, 2013
Non-qualified stock options
Stock options
President and chief executive officer
Jun. 30, 2013
Non-qualified stock options
Stock options
Executive vice president of sales and marketing
Jun. 30, 2013
Non-qualified stock options
Stock options
Senior vice president of program management
Jun. 30, 2013
Non-qualified stock options
Stock options
Senior vice president of human resources
Jun. 30, 2013
Non-qualified stock options
Stock options
Senior vice president of customer service
Stock-Based Compensation
Number of shares of common stock reserved for issuance 18,980,000 7,800,000 11,180,000
Options outstanding (in shares) 13,350,882 11,791,765 3,550,000
Options granted (in shares) 1,585,200 0 3,050,000 250,000 250,000 2,000,000 850,000 250,000 200,000 250,000
Restricted stock units outstanding (in shares) 1,685,922 1,467,096 62,500
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 1 year
Vesting period after one year of grant 48 months
Vesting period 4 years
Contractual term 10 years
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Stock-Based Compensation (Details 3) (USD $)
3 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Additional disclosure
Stock-based compensation expense $ 734,000 $ 338,000
Stock options
Shares
Outstanding at the beginning of the period (in shares) 11,791,765
Granted (in shares) 1,585,200 0
Forfeited, cancelled or expired (in shares) (26,083)
Outstanding at the end of the period (in shares) 13,350,882
Vested and expected to vest (in shares) 13,011,245
Options exercisable 9,605,095
Exercised (in shares) 0 0
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) $ 1.33
Granted (in dollars per share) $ 0.92
Forfeited, cancelled or expired (in dollars per share) $ 1.49
Outstanding at the end of the period (in dollars per share) $ 1.28
Vested and expected to vest (in dollars per share) $ 1.29
Exercisable (in dollars per share) $ 1.38
Weighted Average Remaining Contractual Term (in years)
Outstanding at the end of the period 5 years 10 months 13 days
Vested and expected to vest 5 years 9 months 11 days
Exercisable 4 years 7 months 6 days
Aggregate Intrinsic Value
Outstanding at the end of the period 2,055,658
Vested or expected to vest 1,972,213
Exercisable 1,250,937
Additional disclosure
Stock-based compensation expense 400,000 200,000
Unrecognized compensation cost $ 2,300,000
Weighted average period for recognizing compensation cost 3 years 1 month 6 days
Weighted-average assumptions used to calculate estimated fair value of each stock option
Risk-free interest rates (as a percent) 0.90%
Expected lives (in years) 5 years 8 months 12 days
Expected volatility (as a percent) 77.30%
Weighted average grant date fair value of options granted during the period $ 0.6
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Stock-Based Compensation (Details 4) (USD $)
3 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Mar. 31, 2013
Additional disclosure
Stock-based compensation expense $ 734,000 $ 338,000
Number of preferred stock purchase right for each share of common stock 1
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Purchase price (in dollars per share) $ 10
Period following public announcement of beneficial ownership acquired by various persons resulting in rights becoming exercisable 10 days
Beneficial ownership of common stock (as a percent) 20.00%
Period following commencement of tender offer or exchange offer that would result in acquisition of beneficial ownership various persons resulting in rights becoming exercisable 10 days
Series A Junior Participating Preferred Stock
Additional disclosure
Preferred stock conversion basis 0.01
Restricted stock units
Shares
Nonvested, balance at the beginning of the period (in shares) 1,467,096
Granted (in shares) 530,060
Vested and issued (in shares) (292,914)
Forfeited (in shares) (18,320)
Nonvested, balance at the end of the period (in shares) 1,685,922
Awards expected to vest (in shares) 1,515,907
Weighted Average Grant-Date Fair Value
Nonvested restricted stock units outstanding at the beginning of the period (in dollars per share) $ 1.1
Granted (in dollars per share) $ 0.95
Vested and issued (in dollars per share) $ 1.13
Forfeited (in dollars per share) $ 0.96
Nonvested restricted stock units outstanding at the end of the period (in dollars per share) $ 1.05
Awards expected to vest (in dollars per share) $ 1.05
Additional disclosure
Total fair value of units vested and issued 300,000 100,000
Stock-based compensation expense 300,000 100,000
Unrecognized compensation cost $ 1,200,000
Weighted average period for recognizing compensation cost 2 years 7 months 6 days
Weighted average grant date fair value of options granted during the period $ 0.95 $ 0.95
Non-employee director
Weighted Average Grant-Date Fair Value
Granted (in dollars per share) $ 1.28 $ 1
Additional disclosure
Number of shares issued 22,258 22,162
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Underwritten and Registered Direct Placement of Common Stock (Details) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 1 Months Ended 3 Months Ended 0 Months Ended 12 Months Ended 1 Months Ended
Sep. 18, 2012
item
investors
Sep. 30, 2012
Mar. 31, 2012
Sep. 30, 2008
Jun. 30, 2013
Mar. 31, 2013
Mar. 05, 2012
Sep. 30, 2010
Sep. 23, 2009
Sep. 18, 2012
Minimum
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
Stockholders' Equity
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) $ 1.26 $ 1.41 $ 1.55 $ 1.52 $ 1.92
Number of investors with whom Investor Agreement entered 1
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 trading days prior to the exercise of put option 30 days
Expenses incurred upon the exercise of warrants $ 1.9
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 32
Proceeds from issuance of units under direct placement, net of direct transaction costs 29.5
Arithmetic average of the average daily trading volumes on the exercise date (in shares) 1,750,000
Purchase price of additional shares determined pursuant to the Investor Agreement (in dollars per share) $ 0.94
Net proceeds from exercise of warrants 4.2 3.1 0.5
Number of warrants exercised (in shares) 3,600,000 400,000
Proceeds from issuance of warrants $ 23.1
Term of warrants 5 years
Number of Put Options 2
Outstanding warrants (in shares) 22,600,000 4,000,000
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Fair Value Measurements (Details) (Recurring, USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Mar. 31, 2013
Total
Fair Value Measurements
Cash Equivalents $ 8,742 $ 27,742
Warrant Liability (10) (10)
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Measurements
Cash Equivalents 8,742 27,742
Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Warrant Liability $ (10) $ (10)
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Fair Value Measurements (Details 2) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Mar. 31, 2013
Carrying Value
Fair Value Measurements
Obligations under the credit facility $ 12,755 $ 13,476
Estimated Fair Value
Fair Value Measurements
Obligations under the credit facility $ 12,755 $ 13,476
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Revolving Credit Facility (Details) (USD $)
3 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Mar. 31, 2013
Revolving Credit Facility
Outstanding borrowings $ 12,755,000 $ 13,476,000
Interest expense 186,000 191,000
Amortization of deferred financing costs 56,000 18,000
Credit Facility
Revolving Credit Facility
Credit and security agreements 2
Maximum borrowing capacity under facility 15,000,000
Minimum monthly requirement to maintain cash balance for outstanding line of credit 17,800,000
Minimum covenant compliance period 12 months
Variable base rate LIBOR
Borrowing rate (as a percent) 4.10% 5.40%
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 12,800,000 13,500,000
Additional borrowing capacity under facility 800,000
Interest expense 200,000 200,000
Amortization of deferred financing costs 100,000 100,000
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, 2013
Accrued Warranty Reserve
Maximum period of product warranties 18 months
Accrued Warranty Reserve
Balance at the beginning of the period $ 2,299
Standard warranty provision 641
Changes for accrual related to reliability repair programs 715
Deductions for warranty claims (938)
Balance at the end of the period $ 2,717
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Deferred Revenue (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Mar. 31, 2013
Jun. 30, 2013
FPP agreements
Changes in deferred revenue
FPP Balance, beginning of the period $ 2,572 $ 3,089 $ 1,412
FPP Billings 1,785
FPP Revenue recognized (1,546)
Balance attributed to FPP contracts 1,651
Deposits 921
Deferred revenue balance, end of the period $ 2,572 $ 3,089 $ 2,572
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Other Current Liabilities (Details) (USD $)
0 Months Ended 3 Months Ended 12 Months Ended
Jan. 14, 2011
Jun. 30, 2013
Jun. 30, 2012
Mar. 31, 2013
UTCP
Other Current Liabilities
Capacity of microturbine (in kW) 200
Cash contribution $ 12,000,000
In-kind services 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 after recovery of cash and in-kind services (as a percent) 50.00%
Royalties earned 800,000 900,000
Unpaid earned royalties $ 800,000 $ 1,400,000
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Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Mar. 31, 2013
Lease Commitments
Renewal option period 5 years
Deferred rent $ 0.1 $ 0.1
Rent expense 0.6 0.5
Inventory
Commitments and Contingencies
Commitment to purchase $ 30.1
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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, 2013
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, 2013
Research, development and testing of a more fuel flexible microturbine
Commitments and Contingencies
Projected electrical efficiency of microturbine (as a percent) 42.00%
Power output of microturbine (in kW) 370
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 $ 2.6 $ 1.3
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Net Loss Per Common Share (Details)
In Millions, unless otherwise specified
3 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Antidilutive stock options and restricted stock units
Net Loss Per Common Share
Securities excluded from diluted net loss per common share computations 15 10.8
Warrants
Net Loss Per Common Share
Securities excluded from diluted net loss per common share computations 26.5 26.5
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