Segment Reporting

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Reporting

14. SEGMENT REPORTING

The Company’s segments are defined as components of the enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

The performance of the segments is evaluated based upon several factors, of which the primary financial measures are segment revenues, gross profits, and loss from operations. The disaggregated financial results of the segments reflect the allocation of certain functional expense categories consistent with the basis and manner in which management internally disaggregates financial information for the purpose of assisting in making internal operating decisions. In addition, certain expenses and other shared costs which management does not believe are specifically and directly attributable or allocable to any of the business segments have been excluded from the presented segment contribution margins. The accounting policies of the business segments are the same as those for the consolidated Company. The Company assigns revenues to individual countries based on the customer’s shipment location.

The Company manages its business with the four following segments:

• Product Sales and Service — Included in this business segment are the Company’s sales of distributed turbines along with related services, other products produced and sold to customers, as well as, in the future the Company’s direct sales of utility-class turbines.

• Technology Licensing — Included in this business segment is the licensing of packages of the Company’s developed technology.

• Technology Development — Included in this business segment is the Company’s development of technology for customers.

• Shared Services — These costs and expenses are comprised mainly of the general and administrative departments including executive, finance and accounting, legal, human resources, and information technology support, as well as certain shared engineering, and in certain circumstances, sales and marketing activities.

Unallocated costs and expenses include depreciation and amortization, stock compensation, and certain other non-cash charges, such as restructuring and impairment charges.

Revenue for the business segments are shown as follows:

	For the three months ended
	March 31, 2015		March 31, 2014
Product Sales and Services	$	5,928	$	13,544
Technology Licensing		615		11
Technology Development		1,756		201
Total	$	8,299	$	13,756

Income (loss) from operations for the business segments and unallocated costs and expenses are as follows:

	For the three months ended
	March 31, 2015			March 31, 2014
Product Sales and Services	$	(1,515	)	$	(197	)
Technology Licensing		242			(432	)
Technology Development		1,477			105
Shared Services		(3,323	)		(2,025	)
Unallocated costs and expenses		(516	)		(356	)
Loss from operations	$	(3,635	)	$	(2,905	)

Unallocated costs and expenses consist of:

	For the three months ended
	March 31, 2015			March 31, 2014
Depreciation and amortization	$	(190	)	$	(178	)
Stock-based compensation expense		(178	)		(148	)
Other		(148	)		(30	)
	$	(516	)	$	(356	)

Total business segment assets are as follow:

	March 31, 2015		December 31, 2014
Product Sales and Services	$	29,215	$	26,041
Technology Licensing		499		523
Technology Development		363		1,629
Shared Services		597		836
Unallocated assets		7,537		13,825
Total	$	38,211	$	42,854

Unallocated assets consist of the following:

	March 31, 2015		December 31, 2014
Cash	$	6,973	$	12,863
Other current assets		—		450
Property, plant and equipment, net		21		25
Deferred tax assets		543		487
Total	$	7,537	$	13,825

Geographic information about revenue, based on shipments and/or services to customers by region, is as follows:

	For the three months ended
	March 31, 2015		March 31, 2014
United States	$	2,082	$	511
United Kingdom		2,132		2,383
Italy		1,732		9,011
Brazil		2,351		1,844
Rest of the world		2		7
Total	$	8,299	$	13,756

For the three months ended March 31, 2015 and 2014, 75% and 96% of revenues, respectively, were recognized from sales outside the United States.

Geographic information about long-lived assets associated with particular regions is as follows:

	March 31, 2015		December 31, 2014
United States	$	3,193	$	3,003
Rest of the world		42		47
Consolidated Total	$	3,235	$	3,050