Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Inventories

Inventories consist of the following (in thousands):

	December 31,
	2015		2014
Raw materials	$	1,410	$	761
Work in process		1,840		1,095
Finished goods		373		1,345
Total	$	3,623	$	3,201

Summary of Accounts Receivable Allowance Activity

Accounts receivable allowance activity consisted of the following for the years ended December 31 (in thousands):

	2015			2014		2013
Balance at beginning of year	$	358		$	112	$	100
Additions		—			246		12
Deductions		(95	)		—		—
Balance at end of year	$	263		$	358	$	112

Schedule of Useful Lives of Property and Equipment

Depreciation is computed on the straight-line basis over the estimated useful lives of the respective assets, as follows:

	Years
Machinery and equipment	3-10
Furniture and fixtures	3-5
Computer equipment and software	3-5
Buildings	Up to 39
Land	Indefinite

Schedule of Accumulated Other Comprehensive Income

Changes to accumulated other comprehensive income during the year ended December 31, 2014 were as follows (in thousands):

	Translation Adjustment
Balance – December 31, 2014	$	(63	)
Current period other comprehensive income		(1,099	)
Balance – December 31, 2015	$	(1,162	)

Analysis of Reserve for Sales Returns

An analysis of the reserve for sales returns at December 31, 2014 and 2015 is as follows (in thousands):

	Total
Balance – December 31, 2013	$	138
Provision:
Related to current period sales		—
Related to prior period sales		(136	)
		(136	)
Returns:
Related to prior period sales		(2	)
		(2	)
Balance – December 31, 2014	$	—

Schedule of Stock-Based Compensation Expense Allocation

Total stock-based compensation expense was recorded to cost of revenues, and operating expenses based upon the functional responsibilities of the individuals holding the respective options as follows (in thousands):

	Years Ended December 31,
	2015		2014		2013
Cost of revenues	$	79	$	44	$	14
Sales and marketing		38		28		—
Research and development		1,126		2		—
General and administrative		507		533		461
Total employee stock-based compensation	$	1,750	$	607	$	475

Calculation of Basic and Diluted Income Per Common Share and Common Share Equivalents

The calculation of basic and diluted income per common and common equivalent share is as follows (in thousands except for per share data):

	Years Ended December 31,
	2015			2014			2013
Basic net (loss) income per common share
Net (loss) income	$	(2,134	)	$	3,390		$	6,704
Less: Preferred stock dividends		(28	)		(28	)		(28	)
Net (loss) income applicable to common stock	$	(2,162	)	$	3,362		$	6,676
Basic weighted average number of common shares outstanding		10,774			10,992			11,259
Basic net (loss) income per common share	$	(0.20	)	$	0.31		$	0.59
Diluted net (loss) income per common share
Net (loss) income applicable to common stock	$	(2,162	)	$	3,362		$	6,676
Add: Preferred stock dividends		—			28			28
Less: Fair value of stock warrants for dilutive warrants		—			(379	)		(794	)
Net (loss) income applicable to dilutive common stock	$	(2,162	)	$	3,011		$	5,910
Basic weighted average number of common shares outstanding		10,774			10,992			11,259
Effect of dilutive securities
Dilutive stock awards		—			15			14
		—			15			14
Diluted weighted average number of common shares outstanding		10,774			11,007			11,273
Diluted net (loss) income per common share	$	(0.20	)	$	0.27		$	0.52

Common Stock Warrant Liability [Member]

Assumptions Used to Value Options Granted

	2015		2014
Stock Price	$	—	$	5.60
Exercise Price	$	—	$	12.16
Risk free interest rate		—		0.030	%
Expected term		—		0.25 years
Dividend yield		—		—
Expected volatility		—		22.76	%

Employees [Member]

Assumptions Used to Value Options Granted

Accordingly the weighted-average fair value of the options granted to employees during the years ended December 31, 2015, 2014 and 2013 was $4.38, $4.27 and $3.52, respectively based on the following assumptions:

	Years Ended December 31,
	2015	2014	2013
Risk free interest rate	0.87%-1.20%	0.93%-1.64%	0.71%-0.76%
Expected term	4.56-4.75 years	4.75 years	4.75 years
Dividend yield	—	—	—
Expected volatility	76.86%-83.09%	78.27%-81.36%	96.52%-97.02%

Non Employees [Member]

Assumptions Used to Value Options Granted

The weighted-average fair value of the options granted to non-employees during the years ended December 31, 2015, 2014 and 2013 was $4.52, $0 and $0, respectively based on the following assumptions:

	Years Ended December 31,
	2015	2014	2013
Risk free interest rate	1.47%-1.54%	—	—
Expected term	7 years	—	—
Dividend yield	—	—	—
Expected volatility	82.88%-83.09%	—	—