Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Inventories

Inventories consist of the following (in thousands):

	December 31,
	2016		2015
Raw materials	$	856	$	1,410
Work in process		3,806		1,840
Finished goods		959		373
Total	$	5,621	$	3,623

Summary of Accounts Receivable Allowance Activity

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

	2016			2015			2014
Balance at beginning of year	$	263		$	358		$	112
Additions		—			—			246
Deductions		(226	)		(95	)		—
Balance at end of year	$	37		$	263		$	358

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 Loss

Changes to accumulated other comprehensive loss during the year ended December 31, 2016 were as follows (in thousands):

	Translation Adjustment
Balance – December 31, 2015	$	(1,162	)
Current period other comprehensive income (loss)		(3,866	)
Balance – December 31, 2016	$	(5,028	)

Schedule of Deferred Revenue Balance

The Company’s deferred revenue balance consists of the following at December 31, 2016 and 2015 (in thousands):

	As of December 31,
	2016		2015
Product revenues	$	4,647	$	2,854
Service revenues		385		543
Regional Growth Fund		592		1,480
Total	$	5,624	$	4,877

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 awards as follows (in thousands):

	Years Ended December 31,
	2016		2015		2014
Cost of revenues	$	199	$	79	$	44
Sales and marketing		50		38		28
Research and development		73		1,126		2
General and administrative		879		507		533
Total stock-based compensation	$	1,201	$	1,750	$	607

Calculation of Basic and Diluted Income (Loss) Per Common Share and Common Share Equivalents

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

	Years Ended December 31,
	2016			2015			2014
Basic net income (loss) per common share
Net income (loss)	$	5,951		$	(1,496	)	$	4,656
Less: Preferred stock dividends		(28	)		(28	)		(28	)
Net income (loss) applicable to common stock	$	5,923		$	(1,524	)	$	4,628
Basic weighted average number of common shares    outstanding		10,795			10,774			10,992
Basic net income (loss) per common share	$	0.55		$	(0.14	)	$	0.42
Diluted net income (loss) per common share
Net income (loss) applicable to common stock	$	5,923		$	(1,524	)	$	4,628
Add: Preferred stock dividends		28			—			28
Less: Fair value of stock warrants for dilutive warrants		—			—			(379	)
Net income (loss) applicable to dilutive common stock	$	5,951		$	(1,524	)	$	4,277
Basic weighted average number of common shares    outstanding		10,795			10,774			10,992
Effect of dilutive securities
Dilutive preferred share conversions		83
Dilutive stock awards		13			—			15
		96			—			15
Diluted weighted average number of common shares    outstanding		10,891			10,774			11,007
Diluted net income (loss) per common share	$	0.55		$	(0.14	)	$	0.39

Employees [Member]

Assumptions Used to Value Options Granted

The weighted-average fair value of the options granted to employees during the years ended December 31, 2016, 2015 and 2014 was $4.66, $4.38 and $4.27, respectively based on the following assumptions:

	Years Ended December 31,
	2016		2015		2014
Risk free interest rate	0.85%-1.45%		0.87%-1.20%		0.93%-1.64%
Expected term	4.75 years		4.56-4.75 years		4.75 years
Dividend yield		—		—		—
Expected volatility	55.23%-79.29%		76.86%-83.09%		78.27%-81.36%

Non Employees [Member]

Assumptions Used to Value Options Granted

The weighted-average fair value of the options granted to non-employees during the year ended December 31, 2015 was  $4.52   based on the following assumptions:

	2015
Risk free interest rate	1.47%-1.54%
Expected term	7 years
Dividend yield		—
Expected volatility	82.88%-83.09%

Common Stock Warrant Liability [Member]

Assumptions Used to Value Options Granted

	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	%