x
|
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended September 30, 2012
|
o
|
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
California
|
87-0673375
|
|
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
6720 North Scottsdale Road, Suite 390
|
85253
|
|
Scottsdale, AZ
|
(Zip Code)
|
|
(Address of Principal Executive Offices)
|
Large accelerated filer o
|
Accelerated filer o
|
Non-accelerated filer o
|
Smaller reporting company x
|
PART I. FINANCIAL INFORMATION
|
Page
|
||
|
Item 1.
|
2
|
|
|
3 | ||
|
4 | ||
5 | |||
6 | |||
7 | |||
|
Item 2.
|
28
|
|
|
Item 3.
|
37
|
|
|
Item 4.
|
38
|
|
PART II. OTHER INFORMATION
|
|||
|
Item 1.
|
38
|
|
|
Item 1A.
|
38
|
|
|
Item 2.
|
39
|
|
|
Item 3.
|
40
|
|
|
Item 4.
|
40
|
|
|
Item 5.
|
40
|
|
|
Item 6.
|
41
|
|
42
|
Item 1.
|
Financial Statements.
|
Three Months
|
Nine Months
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Revenues
|
$ | 9,349 | $ | 9,405 | $ | 28,806 | $ | 28,555 | ||||||||
Cost of goods sold
|
7,473 | 7,506 | 23,426 | 21,863 | ||||||||||||
Gross profit
|
1,876 | 1,899 | 5,380 | 6,692 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Selling, general and administrative
|
2,864 | 3,734 | 9,567 | 10,975 | ||||||||||||
Professional fees
|
366 | 518 | 1,353 | 2,118 | ||||||||||||
Impairment of property, plant and equipment
|
- | - | 1,069 | - | ||||||||||||
Recovery from former customer
|
- | - | - | (800 | ) | |||||||||||
Total operating expenses
|
3,230 | 4,252 | 11,989 | 12,293 | ||||||||||||
Loss from operations
|
(1,354 | ) | (2,353 | ) | (6,609 | ) | (5,601 | ) | ||||||||
Other income (expense):
|
||||||||||||||||
Interest income
|
3 | 25 | 66 | 105 | ||||||||||||
Interest expense
|
(498 | ) | (302 | ) | (1,303 | ) | (1,114 | ) | ||||||||
Foreign currency exchange, net
|
209 | (321 | ) | (573 | ) | (268 | ) | |||||||||
Change in fair value of derivative warrant and conversion liabilities
|
3,502 | 916 | 4,008 | 775 | ||||||||||||
Loss on extinguishment
|
(1,955 | ) | - | (4,941 | ) | - | ||||||||||
Financing expense
|
(640 | ) | - | (2,184 | ) | - | ||||||||||
Other income
|
18 | 46 | 25 | 423 | ||||||||||||
Other expense
|
(59 | ) | (24 | ) | (176 | ) | (460 | ) | ||||||||
Total other income (expense)
|
580 | 340 | (5,078 | ) | (539 | ) | ||||||||||
Loss before income taxes
|
(774 | ) | (2,013 | ) | (11,687 | ) | (6,140 | ) | ||||||||
Income taxes
|
194 | 244 | 1,105 | 252 | ||||||||||||
Net loss
|
(580 | ) | (1,769 | ) | (10,582 | ) | (5,888 | ) | ||||||||
Net loss attributable to noncontrolling interest in Nutra SA
|
212 | 276 | 1,184 | 315 | ||||||||||||
Net loss attributable to RiceBran Technologies shareholders
|
$ | (368 | ) | $ | (1,493 | ) | $ | (9,398 | ) | $ | (5,573 | ) | ||||
Loss per share attributable to RiceBran Technologies shareholders
|
||||||||||||||||
Basic
|
$ | (0.00 | ) | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.03 | ) | ||||
Diluted
|
$ | (0.00 | ) | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.03 | ) | ||||
Weighted average number of shares outstanding
|
||||||||||||||||
Basic
|
204,869 | 199,381 | 204,048 | 197,651 | ||||||||||||
Diluted
|
204,869 | 199,381 | 204,048 | 197,651 |
Three Months
|
Nine Months
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net loss
|
$ | (580 | ) | $ | (1,769 | ) | $ | (10,582 | ) | $ | (5,888 | ) | ||||
Other comprehensive income (loss) - foreign currency translation, net of tax
|
279 | (2,630 | ) | (958 | ) | (1,576 | ) | |||||||||
Comprehensive loss, net of tax
|
(301 | ) | (4,399 | ) | (11,540 | ) | (7,464 | ) | ||||||||
Comprehensive loss attributable to noncontrolling interest, net of tax
|
75 | 1,481 | 1,653 | 1,113 | ||||||||||||
Total comprehensive loss attributable to RiceBran Technologies shareholders
|
$ | (226 | ) | $ | (2,918 | ) | $ | (9,887 | ) | $ | (6,351 | ) |
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 850 | $ | 3,329 | ||||
Restricted cash
|
1,918 | 2,118 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $500 and $323
|
3,919 | 3,702 | ||||||
Inventories
|
2,336 | 2,297 | ||||||
Note receivable
|
- | 700 | ||||||
Deferred tax assets
|
352 | 159 | ||||||
Income and operating taxes recoverable
|
1,339 | 1,659 | ||||||
Deposits and other current assets
|
1,061 | 1,049 | ||||||
Total current assets
|
11,775 | 15,013 | ||||||
Property, plant and equipment, net
|
28,905 | 27,995 | ||||||
Intangible assets, net
|
2,872 | 3,928 | ||||||
Goodwill
|
4,821 | 5,240 | ||||||
Other long-term assets
|
384 | 56 | ||||||
Total assets
|
$ | 48,757 | $ | 52,232 | ||||
LIABILITIES, TEMPORARY EQUITY AND EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 3,531 | $ | 2,995 | ||||
Accrued expenses
|
4,976 | 4,202 | ||||||
Long-term debt, current portion
|
7,305 | 6,792 | ||||||
Pre-petition liabilities
|
- | 1,615 | ||||||
Total current liabilities
|
15,812 | 15,604 | ||||||
Long-term liabilities:
|
||||||||
Long-term debt, net of current portion
|
11,278 | 7,933 | ||||||
Deferred tax liability
|
2,648 | 3,767 | ||||||
Derivative warrant liabilities
|
6,426 | 1,296 | ||||||
Total liabilities
|
36,164 | 28,600 | ||||||
Commitments and contingencies
|
||||||||
Redeemable noncontrolling interest in Nutra SA
|
8,265 | 9,918 | ||||||
Equity:
|
||||||||
Preferred stock, 20,000,000 authorized and none issued
|
- | - | ||||||
Common stock, no par value, 500,000,000 shares authorized, 205,151,437 and 201,264,622 shares issued and outstanding
|
210,114 | 209,613 | ||||||
Accumulated deficit
|
(204,309 | ) | (194,911 | ) | ||||
Accumulated other comprehensive loss
|
(1,477 | ) | (988 | ) | ||||
Total equity
|
4,328 | 13,714 | ||||||
Total liabilities, temporary equity and equity
|
$ | 48,757 | $ | 52,232 |
Nine Months Ended
|
||||||||
September 30,
|
||||||||
2012
|
2011
|
|||||||
Cash flow from operating activities:
|
||||||||
Net loss
|
$ | (10,582 | ) | $ | (5,888 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
3,623 | 3,827 | ||||||
Provision for doubtful accounts receivable
|
313 | 96 | ||||||
Stock and share-based compensation
|
879 | 1,118 | ||||||
Change in fair value of derivative warrant and conversion liabilities
|
(4,008 | ) | (775 | ) | ||||
Financing expense
|
2,184 | - | ||||||
Loss on extinguishment
|
4,941 | - | ||||||
Impairment of property, plant and equipment
|
1,069 | - | ||||||
Deferred tax benefit
|
(1,105 | ) | (441 | ) | ||||
Settlement with former officer
|
- | (267 | ) | |||||
Other
|
189 | 180 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(737 | ) | (656 | ) | ||||
Inventories
|
(159 | ) | (102 | ) | ||||
Accounts payable and accrued expenses
|
1,147 | 235 | ||||||
Pre-petition liabilities
|
(1,615 | ) | (4,230 | ) | ||||
Other
|
(39 | ) | (361 | ) | ||||
Net cash used in operating activities
|
(3,900 | ) | (7,264 | ) | ||||
Cash flows from investing activities:
|
||||||||
Receipts on notes receivable
|
700 | 900 | ||||||
Purchases of property, plant and equipment
|
(5,824 | ) | (5,216 | ) | ||||
Proceeds from sale of property, plant and equipment
|
276 | - | ||||||
Restricted cash
|
200 | (480 | ) | |||||
Other
|
(24 | ) | (199 | ) | ||||
Net cash used in investing activities
|
(4,672 | ) | (4,995 | ) | ||||
Cash flows from financing activities:
|
||||||||
Proceeds from issuance of convertible debt and related warrants
|
3,563 | 444 | ||||||
Proceeds from sale of membership interests in Nutra SA, net of costs
|
- | 11,625 | ||||||
Payments of debt
|
(9,010 | ) | (7,664 | ) | ||||
Proceeds from issuance of debt
|
11,607 | 7,489 | ||||||
Net cash provided by financing activities
|
6,160 | 11,894 | ||||||
Effect of exchange rate changes on cash and cash equivalents
|
(67 | ) | (5 | ) | ||||
Net change in cash and cash equivalents
|
(2,479 | ) | (370 | ) | ||||
Cash and cash equivalents, beginning of period
|
3,329 | 537 | ||||||
Cash and cash equivalents, end of period
|
$ | 850 | $ | 167 | ||||
Supplemental disclosures:
|
||||||||
Cash paid for interest
|
$ | 1,162 | $ | 723 | ||||
Cash paid for income taxes
|
- | 14 |
·
|
growth in existing markets for stabilized rice bran (SRB), rice bran oil (RBO) and defatted rice bran (DRB);
|
·
|
expanding our product offerings and improving existing products;
|
·
|
aligning with strategic partners who can provide channels for additional sales of our products; and
|
·
|
implementing price increases.
|
·
|
sale of certain facilities;
|
·
|
sale of a noncontrolling interest in one or more subsidiaries; or
|
·
|
sale of surplus equipment.
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
NUMERATOR (in thousands):
|
||||||||||||||||
Basic and diluted - net loss attributable to RiceBran Technologies shareholders
|
$ | (368 | ) | $ | (1,493 | ) | $ | (9,398 | ) | $ | (5,573 | ) | ||||
DENOMINATOR:
|
||||||||||||||||
Basic EPS - weighted average number of shares outstanding
|
204,869,055 | 199,380,838 | 204,048,405 | 197,650,794 | ||||||||||||
Effect of dilutive securities outstanding
|
- | - | - | - | ||||||||||||
Diluted EPS - weighted average number of shares outstanding
|
204,869,055 | 199,380,838 | 204,048,405 | 197,650,794 | ||||||||||||
Number of shares of common stock which could be purchased with weighted average outstanding securities not included in diluted EPS because effect would be antidilutive-
|
||||||||||||||||
Stock options (average exercise price for the three and nine months ended September 30, 2012 of $0.24 and $0.25 per share)
|
38,470,601 | 39,557,171 | 39,047,278 | 40,342,313 | ||||||||||||
Warrants (average exercise price for the three and nine months ended September 30, 2012 of $0.27 and $0.38 per share)
|
200,625,443 | 42,950,415 | 142,682,836 | 41,721,527 | ||||||||||||
Convertible debt (average exercise price for the three and nine months ended September 30, 2012 of $0.08 and $0.09 per share)
|
83,361,071 | 6,286,935 | 57,473,568 | 3,230,007 |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Beginning of period
|
$ | 8,340 | $ | 11,093 | $ | 9,918 | $ | - | ||||||||
Investors' purchase of units
|
- | 900 | - | 11,625 | ||||||||||||
Investors' interest in net loss of Nutra SA
|
(212 | ) | (276 | ) | (1,184 | ) | (315 | ) | ||||||||
Investors' interest in other comprehensive income (loss) of Nutra SA
|
137 | (1,205 | ) | (469 | ) | (798 | ) | |||||||||
End of period
|
$ | 8,265 | $ | 10,512 | $ | 8,265 | $ | 10,512 |
|
·
|
A Nutra SA business plan deviation, defined as the occurrence, in either 2012, 2013 or 2014, of a 20% unfavorable variation in two out of three of the following: (i) revenue, (ii) earnings before interest, taxes, depreciation and amortization (EBITDA) or (iii) debt,
|
|
·
|
A Nutra SA EBITDA default, which is defined as the failure to achieve 85% of planned EBITDA for three consecutive quarters, or
|
|
·
|
A material problem, which is defined as a material problem in a facility (unrelated to changes in law, weather, etc.) likely to cause a Nutra SA business plan deviation or Nutra SA EBITDA default, which results in damages not at least 80% covered by insurance proceeds.
|
|
·
|
Conversion Rights – The Investors may exchange units in Nutra SA for equity interests in Irgovel beginning in July 2011. After any exchange, the Investors would possess the same rights and obligations with respect to the securities of Irgovel, as they have in Nutra SA.
|
|
·
|
Global Holding Company (GHC) Roll-Up – If we form an entity, GHC, to hold our Brazil segment assets, the Investors may exchange units in Nutra SA for equity interests in GHC. The investors may exercise this right after the second anniversary of the formation of GHC or, if an event of default has occurred, after the later of January 2013 and the GHC formation date. The appraised fair value of the Investors’ interest in Nutra SA would be used to determine the amount of ownership interest the Investors would receive in GHC.
|
|
·
|
RiceBran Technologies Roll-Up – The Investors may exchange units in Nutra SA for RiceBran Technologies common stock.. This right is available upon the earlier of January 2014 or, if an event of default has occurred, January 2013. We may elect to postpone our obligation to complete the RiceBran Technologies roll-up to January 2015 if the roll-up would result in over 25% of our common stock being owned by the Investors. The appraised fair value of the Investors’ interest in Nutra SA and the market price of our stock would be used to determine the amount of ownership interest the Investors would receive in RiceBran Technologies.
|
|
·
|
Drag Along Rights – The Investors have the right to force the sale of all Nutra SA assets after the earlier of (i) January 2015, (ii) January 2013 if an event of default occurs, (iii) February 2014 if we make a RiceBran Technologies roll-up postponement election or (iv) the date of a qualifying event. The right terminates upon the occurrence of certain events (a $50 million Nutra SA initial public offering or a change of control, as defined). We may elect to exercise a right of first refusal to purchase the Investors’ interest instead of proceeding to a sale.
|
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Finished goods
|
$ | 1,047 | $ | 906 | ||||
Work in process
|
562 | 804 | ||||||
Raw materials
|
466 | 353 | ||||||
Packaging supplies
|
261 | 234 | ||||||
Total inventories
|
$ | 2,336 | $ | 2,297 |
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Land
|
$ | 414 | $ | 422 | ||||
Furniture and fixtures
|
1,461 | 1,464 | ||||||
Plant
|
16,879 | 16,821 | ||||||
Computer and software
|
1,416 | 1,357 | ||||||
Leasehold improvements
|
189 | 189 | ||||||
Machinery and equipment
|
17,471 | 17,905 | ||||||
Construction in progress
|
9,911 | 5,775 | ||||||
Property, plant and equipment
|
47,741 | 43,933 | ||||||
Less accumulated depreciation
|
18,836 | 15,938 | ||||||
Property, plant and equipment, net
|
$ | 28,905 | $ | 27,995 |
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
USA segment:
|
||||||||
Senior convertible debentures, net
|
$ | 943 | $ | - | ||||
Subordinated convertible notes, net
|
3,546 | 2,126 | ||||||
Customer list purchase
|
- | 448 | ||||||
Supplier note
|
- | 59 | ||||||
Factoring agreement
|
- | 262 | ||||||
4,489 | 2,895 | |||||||
Brazil segment:
|
||||||||
Capital expansion loans
|
5,526 | 3,789 | ||||||
Equipment financing
|
235 | 214 | ||||||
Working capital lines of credit
|
1,706 | 1,778 | ||||||
Advances on export letters of credit
|
3,978 | 2,838 | ||||||
Special tax programs
|
2,649 | 3,211 | ||||||
14,094 | 11,830 | |||||||
Total debt
|
18,583 | 14,725 | ||||||
Current portion
|
7,305 | 6,792 | ||||||
Long-term portion
|
$ | 11,278 | $ | 7,933 |
Issuance
|
Issuance Date of
Debt
|
Principal Amount
of Debt (in
thousands)
|
Creditor's Debt Conversion Right
|
Stated Annual
Interest Rate on
Debt
|
Maturity Date
of Debt
|
|||||||
Senior Convertible Debentures
|
July 2012
|
$ | 1,299 |
Convertible January 2013 at $0.07 per share
|
NA
|
January 2014
|
||||||
Subordinated Convertible Note
|
August 2012
|
150 |
Convertible immediately at $0.07 per share
|
10 | % |
July 2015
|
||||||
Subordinated Convertible Notes
|
July 2012
|
850 |
Convertible immediately at $0.07 per share
|
10 | % |
July 2015
|
||||||
Subordinated Convertible Note
|
May 2012
|
50 |
Convertible immediately at $0.07 per share
|
10 | % |
July 2015
|
||||||
Subordinated Convertible Notes
|
January 2012
|
4,325 |
Convertible immediately at $0.07 per share
|
10 | % |
July 2015
|
Issuance
|
Date of Debt
and/or
Warrant
|
Principal
Amount of
Debt (in thousands)
|
Creditor's Debt
Conversion Right
|
Stated
Annual
Interest
Rate on
Debt
|
Maturity
Date of Debt
|
Number of
Shares Under Warrant
|
Date Exercisable
and Exercise Price of Warrant
|
Expiration
Date of
Warrant
|
||||||||||||||
(1) | (1) | |||||||||||||||||||||
Senior Convertible Debentures and Warrant
|
July 2012
|
$
|
1,299
|
Convertible January 2013 at $0.07 per share
|
NA
|
January 2014
|
18,560,000
|
Exercisable beginning January 2013 at $0.08 per share
|
January 2018
|
|||||||||||||
Senior Convertible Debenture and Warrant (3)
|
January 2012
|
$
|
870
|
Convertible July 2012 at $0.15 per share
|
NA
|
July 2013
|
6,250,000
|
Exercisable beginning July 2012 at $0.12 per share (6)
|
July 2017
|
|||||||||||||
Subordinated Convertible Notes and Warrants
|
July and August 2012
|
1,000
|
Convertible immediately at $0.07 per share
|
10
|
%
|
July and August 2015
|
14,285,714
|
Exercisable immediately at $0.08 per share
|
July and August 2017
|
|||||||||||||
Subordinated Convertible Note and Warrant
|
May 2012
|
50
|
Convertible immediately at $0.10 per share (2)
|
10
|
%
|
May 2015
|
500,000
|
Exercisable immediately at $0.12 per share (4)
|
May 2017
|
|||||||||||||
Subordinated Convertible Notes and Warrants
|
January 2012
|
4,325
|
Convertible immediately at $0.10 per share (2)
|
10
|
%
|
January 2015
|
43,250,000
|
Exercisable immediately at $0.12 per share (5)
|
January 2017
|
|
(1)
|
All of the convertible debt and warrants listed above contain full ratchet antidilution provisions and require the holders to provide us with 61 day notice prior to conversion or exercise to the extent the holder would have a beneficial ownership interest in our common stock in excess of 4.99% of our outstanding common stock immediately after conversion or exercise.
|
|
(2)
|
In July 2012 (i) the terms of all of the subordinated convertible notes outstanding, were modified such that the maturity date was extended from January and May 2015 to July 2015 and (ii) the conversion price of these subordinated convertible notes was lowered from $0.10 per share to $0.07 per share under their antidilution provisions.
|
|
(3)
|
In the third quarter of 2012, the senior convertible debenture issued in January 2012 was exchanged for a senior convertible debenture dated July 2012.
|
|
(4)
|
As a result of a July 2012 amendment, the exercise price on the warrants was reduced from $0.12 per share to $0.08 per share and the number of underlying shares was increased from 500,000 to 714,286.
|
|
(5)
|
As a result of a July 2012 amendment, the exercise price on the warrants with initially 36,000,000 underlying shares was reduced from $0.12 per share to $0.08 per share, the number of underlying shares was increased to 51,428,573 and the expiration date of the warrants were extended to July 2017. As a result of the antidilution provisions on the remaining warrants, during the third quarter of 2012, the exercise price on warrants initially with 7,250,000 underlying shares was reduced from $0.12 per share to $0.07 per share and the number of underlying shares was increased to 12,428,572.
|
|
(6)
|
As a result of the antidilution provisions included in the warrant, during the third quarter of 2012, the exercise price was reduced from $0.12 per share to $0.07 per share and the number of underlying shares was increased from 6,250,000 to 10,714,286.
|
First and Second Quarter of 2012 |
Third Quarter of 2012
|
|||||||||||||||||||||||||||||||
Debenture | Notes and Warrants | Debentures and Warrants | Notes and Warrants | |||||||||||||||||||||||||||||
and
Warrant
|
Halpern Entities | Other Investors | New |
Replace-
ment
|
Halpern Entities | Other Investors | Total | |||||||||||||||||||||||||
(Increases) decreases in:
|
||||||||||||||||||||||||||||||||
Debt - principal
|
$ | (870 | ) | $ | (2,500 | ) | $ | (1,875 | ) | $ | (290 | ) | $ | (139 | ) | $ | (100 | ) | $ | (900 | ) | $ | (6,674 | ) | ||||||||
Debt - discount
|
870 | 630 | 1,875 | 290 | (661 | ) | 100 | 900 | 4,004 | |||||||||||||||||||||||
Debt - derivative conversion liabilities
|
(296 | ) | (1,942 | ) | (1,448 | ) | (128 | ) | (105 | ) | (69 | ) | (583 | ) | (4,571 | ) | ||||||||||||||||
Derivative warrant liabilities
|
(648 | ) | (2,473 | ) | (1,848 | ) | (273 | ) | (907 | ) | (88 | ) | (746 | ) | (6,983 | ) | ||||||||||||||||
Debt (carrying amount of old note)
|
- | 2,152 | - | - | - | - | - | 2,152 | ||||||||||||||||||||||||
Equity
|
- | 1,089 | - | - | - | - | - | 1,089 | ||||||||||||||||||||||||
Loss on extinguishment
|
- | 2,986 | - | - | 1,955 | - | - | 4,941 | ||||||||||||||||||||||||
Financing expense
|
168 | - | 1,376 | 141 | 27 | 59 | 413 | 2,184 | ||||||||||||||||||||||||
Other long -term assets - deferred finance costs
|
144 | 65 | 134 | 23 | (148 | ) | 4 | 73 | 295 | |||||||||||||||||||||||
Proceeds, net of finance costs
|
632 | (7 | ) | 1,786 | 237 | (22 | ) | 94 | 843 | 3,563 |
Notes
|
||||||||||||||||
Debentures
|
Halpern
Entities
|
Other
Investors
|
Total
|
|||||||||||||
Principal outstanding
|
$ | (1,299 | ) | $ | (2,600 | ) | $ | (2,775 | ) | $ | (6,674 | ) | ||||
Discount
|
499 | 616 | 2,775 | 3,890 | ||||||||||||
Derivative conversion liabilities
|
(143 | ) | (755 | ) | (807 | ) | (1,705 | ) | ||||||||
Debt
|
$ | (943 | ) | $ | (2,739 | ) | $ | (807 | ) | (4,489 | ) | |||||
Debt - current portion
|
$ | (705 | ) | $ | - | $ | - | $ | (705 | ) | ||||||
Debt - long-term portion
|
(238 | ) | (2,739 | ) | (807 | ) | (3,784 | ) |
Common Stock
|
Accumulated
|
Accumulated Other Comprehensive
|
Total
|
|||||||||||||||||
Shares
|
Amount
|
Deficit
|
Loss
|
Equity
|
||||||||||||||||
Balance, December 31, 2011
|
201,264,622 | $ | 209,613 | $ | (194,911 | ) | $ | (988 | ) | $ | 13,714 | |||||||||
Share-based compensation
|
- | 669 | - | - | 669 | |||||||||||||||
Warrant exercised
|
1,552,667 | 711 | - | - | 711 | |||||||||||||||
Common stock issued for vendor services
|
1,524,500 | 210 | - | - | 210 | |||||||||||||||
Common stock issued in exchange for vested options
|
809,648 | - | - | - | - | |||||||||||||||
Cancellation of convertible notes and warrant
|
- | (1,089 | ) | - | - | (1,089 | ) | |||||||||||||
Foreign currency translation
|
- | - | - | (489 | ) | (489 | ) | |||||||||||||
Net loss attributable to RiceBran Technologies shareholders
|
- | - | (9,398 | ) | - | (9,398 | ) | |||||||||||||
Balance, September 30, 2012
|
205,151,437 | $ | 210,114 | $ | (204,309 | ) | $ | (1,477 | ) | $ | 4,328 |
Options
|
Equity and Liability Warrants
|
|||||||||||||||||||||||
Shares Under Options
|
Weighted Average
Exercise
Price
|
Weighted Average Remaining Contractual
Life (Years)
|
Shares Under Warrants
|
Weighted Average
Exercise
Price
|
Weighted Average Remaining Contractual
Life (Years)
|
|||||||||||||||||||
Outstanding, December 31, 2011
|
38,588,721 | $ | 0.27 | 6.3 | 46,789,364 | $ | 1.04 | 1.7 | ||||||||||||||||
Granted
|
5,487,148 | 0.16 | 84,756,427 | 0.10 | ||||||||||||||||||||
Impact of anti-dilution clauses
|
- | - | 103,744,062 |
NA
|
||||||||||||||||||||
Impact of amendment
|
- | - | 15,642,859 |
NA
|
||||||||||||||||||||
Exercised
|
- | - | (5,003,038 | ) | 0.10 | |||||||||||||||||||
Forfeited, expired or cancelled
|
(6,667,115 | ) | 0.33 | (84,575,897 | ) | 0.43 | ||||||||||||||||||
Outstanding, September 30, 2012
|
37,408,754 | $ | 0.24 | 6.5 | 161,353,777 | $ | 0.12 | 3.8 | ||||||||||||||||
Exercisable, September 30, 2012
|
30,164,059 | $ | 0.25 | 6.0 | 142,793,777 | $ | 0.13 | 3.6 |
Equity Warrants
|
Liability Warrants
|
|||||||||||||||||||||||
Shares Under Equity
Warrants
|
Weighted Average
Exercise Price
|
Weighted Average Remaining Contractual Life (Years)
|
Shares Under Liability Warrants
|
Weighted Average
Exercise Price
|
Weighted Average Remaining Contractual Life (Years)
|
|||||||||||||||||||
Outstanding, December 31, 2011
|
3,474,370 | $ | 0.30 | 3.5 | 43,314,994 | $ | 1.10 | 1.5 | ||||||||||||||||
Granted
|
- | - | 84,756,427 | 0.10 | ||||||||||||||||||||
Impact of antidilution clauses
|
- | - | 103,744,062 |
NA
|
||||||||||||||||||||
Impact of amendment
|
- | - | 15,642,859 |
NA
|
||||||||||||||||||||
Exercised
|
- | - | (5,003,038 | ) | 0.10 | |||||||||||||||||||
Forfeited, expired or cancelled
|
(2,323,186 | ) | 0.22 | (82,252,711 | ) | 0.44 | ||||||||||||||||||
Outstanding, September 30, 2012
|
1,151,184 | $ | 0.45 | 2.7 | 160,202,593 | $ | 0.12 | $ | 3.8 | |||||||||||||||
Exercisable, September 30, 2012
|
1,151,184 | $ | 0.45 | 2.7 | 141,642,593 | $ | 0.12 | $ | 3.6 |
Outstanding as of September 30, 2012
|
Outstanding as of December 31, 2011
|
||||||||||||||||||||||||||
Exercise Prices
|
Type of
Warrant
|
Shares Under Warrants
|
Weighted Average
Exercise
Price
|
Average Remaining Contractual
Life
(in years)
|
Shares Under Warrants
|
Weighted Average
Exercise
Price
|
Average Remaining Contractual
Life
(in years)
|
||||||||||||||||||||
$ | 0.07-$0.08 |
Liability
|
131,397,900 | $ | 0.08 | 4.5 | - | $ | - | - | |||||||||||||||||
$ | 0.20 |
Liability
|
- | - | - | 9,707,282 | 0.20 | 3.2 | |||||||||||||||||||
$ | 0.22-$0.23 |
Equity
|
605,730 | 0.23 | 4.2 | 2,928,916 | 0.22 | 3.8 | |||||||||||||||||||
$ | 0.33 |
Liability
|
28,804,693 | 0.33 | 0.6 | - | - | - | |||||||||||||||||||
$ | 0.69 |
Equity
|
545,454 | 0.69 | 1.1 | 545,454 | 0.69 | 1.8 | |||||||||||||||||||
$ | 0.92 |
Liability
|
- | - | - | 10,360,057 | 0.92 | 1.3 | |||||||||||||||||||
$ | 1.56 |
Liability
|
- | - | - | 23,247,655 | 1.56 | 0.9 | |||||||||||||||||||
161,353,777 | $ | 0.12 | 3.8 | 46,789,364 | $ | 1.04 | 1.7 |
Three Months Ended September 30, 2012
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Revenues
|
$ | - | $ | 3,065 | $ | 6,284 | $ | 9,349 | ||||||||
Cost of goods sold
|
- | 2,184 | 5,289 | 7,473 | ||||||||||||
Gross profit
|
- | 881 | 995 | 1,876 | ||||||||||||
Depreciation and amortization (in selling, general and administrative)
|
(175 | ) | (145 | ) | (201 | ) | (521 | ) | ||||||||
Intersegment fees
|
57 | - | (57 | ) | - | |||||||||||
Other operating expense
|
(836 | ) | (662 | ) | (1,211 | ) | (2,709 | ) | ||||||||
Income (loss) from operations
|
$ | (954 | ) | $ | 74 | $ | (474 | ) | $ | (1,354 | ) | |||||
Net loss attributable to RiceBran Technologies shareholders
|
$ | (220 | ) | $ | 73 | $ | (221 | ) | $ | (368 | ) | |||||
Interest expense
|
173 | - | 325 | 498 | ||||||||||||
Depreciation (in cost of goods sold)
|
- | 179 | 399 | 578 | ||||||||||||
Purchases of property, plant and equipment
|
- | 6 | 2,025 | 2,031 |
Nine Months Ended September 30, 2012
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Revenues
|
$ | - | $ | 9,629 | $ | 19,177 | $ | 28,806 | ||||||||
Cost of goods sold
|
- | 6,737 | 16,689 | 23,426 | ||||||||||||
Gross profit
|
- | 2,892 | 2,488 | 5,380 | ||||||||||||
Depreciation and amortization (in selling, general and administrative)
|
(246 | ) | (784 | ) | (661 | ) | (1,691 | ) | ||||||||
Intersegment fees
|
169 | - | (169 | ) | - | |||||||||||
Impairment of property, plant and equipment
|
- | (1,069 | ) | - | (1,069 | ) | ||||||||||
Other operating expense
|
(3,559 | ) | (1,959 | ) | (3,711 | ) | (9,229 | ) | ||||||||
Loss from operations
|
$ | (3,636 | ) | $ | (920 | ) | $ | (2,053 | ) | $ | (6,609 | ) | ||||
Net loss attributable to RiceBran Technologies shareholders
|
$ | (7,229 | ) | $ | (937 | ) | $ | (1,232 | ) | $ | (9,398 | ) | ||||
Interest expense
|
494 | 17 | 792 | 1,303 | ||||||||||||
Depreciation (in cost of goods sold)
|
- | 714 | 1,218 | 1,932 | ||||||||||||
Purchases of property, plant and equipment
|
- | 72 | 5,752 | 5,824 |
Three Months Ended September 30, 2011
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Revenues
|
$ | - | $ | 2,636 | $ | 6,769 | $ | 9,405 | ||||||||
Cost of goods sold
|
- | 1,916 | 5,590 | 7,506 | ||||||||||||
Gross profit
|
- | 720 | 1,179 | 1,899 | ||||||||||||
Depreciation and amortization (in selling, general and administrative)
|
(42 | ) | (313 | ) | (315 | ) | (670 | ) | ||||||||
Intersegment fees
|
102 | - | (102 | ) | - | |||||||||||
Other operating expense
|
(1,520 | ) | (909 | ) | (1,153 | ) | (3,582 | ) | ||||||||
Loss from operations
|
$ | (1,460 | ) | $ | (502 | ) | $ | (391 | ) | $ | (2,353 | ) | ||||
Net loss attributable to RiceBran Technologies shareholders
|
$ | (651 | ) | $ | (510 | ) | $ | (332 | ) | $ | (1,493 | ) | ||||
Interest expense
|
114 | 34 | 154 | 302 | ||||||||||||
Depreciation (in cost of goods sold)
|
- | 279 | 367 | 646 | ||||||||||||
Purchases of property, plant and equipment
|
- | 12 | 703 | 715 |
Nine Months Ended September 30, 2011
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Revenues
|
$ | - | $ | 8,129 | $ | 20,426 | $ | 28,555 | ||||||||
Cost of goods sold
|
- | 5,392 | 16,471 | 21,863 | ||||||||||||
Gross profit
|
- | 2,737 | 3,955 | 6,692 | ||||||||||||
Depreciation and amortization (in selling, general and administrative)
|
(154 | ) | (933 | ) | (942 | ) | (2,029 | ) | ||||||||
Settlement with former customer
|
- | 800 | - | 800 | ||||||||||||
Intersegment fees
|
307 | (307 | ) | - | ||||||||||||
Other operating expense
|
(4,904 | ) | (2,852 | ) | (3,308 | ) | (11,064 | ) | ||||||||
Loss from operations
|
$ | (4,751 | ) | $ | (248 | ) | $ | (602 | ) | $ | (5,601 | ) | ||||
Net loss attributable to RiceBran Technologies shareholders
|
$ | (4,680 | ) | $ | (383 | ) | $ | (510 | ) | $ | (5,573 | ) | ||||
Interest expense
|
430 | 136 | 548 | 1,114 | ||||||||||||
Depreciation (in cost of goods sold)
|
- | 712 | 1,086 | 1,798 | ||||||||||||
Purchases of property, plant and equipment
|
- | 94 | 5,122 | 5,216 |
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
As of September 30, 2012
|
||||||||||||||||
Inventories
|
$ | - | $ | 666 | $ | 1,670 | $ | 2,336 | ||||||||
Property, plant and equipment, net
|
46 | 9,344 | 19,515 | 28,905 | ||||||||||||
Goodwill
|
- | - | 4,821 | (1 | ) | 4,821 | ||||||||||
Intangible assets, net
|
- | 1,247 | 1,625 | 2,872 | ||||||||||||
Total assets
|
3,628 | (2 | ) | 12,548 | 32,581 | 48,757 | ||||||||||
As of December 31, 2011
|
||||||||||||||||
Inventories
|
- | 617 | 1,680 | 2,297 | ||||||||||||
Property, plant and equipment, net
|
263 | 11,899 | 15,833 | 27,995 | ||||||||||||
Goodwill
|
- | - | 5,240 | (1 | ) | 5,240 | ||||||||||
Intangible assets, net
|
- | 1,612 | 2,316 | 3,928 | ||||||||||||
Total assets
|
4,672 | (2 | ) | 14,219 | 33,341 | 52,232 |
(1)
|
All changes in goodwill between December 31, 2011 and September 30, 2012, relate to foreign currency translation.
|
(2)
|
Corporate segment total assets include cash, restricted cash, note receivable, property and other assets.
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
United States
|
$ | 2,685 | $ | 2,176 | $ | 8,501 | $ | 6,937 | ||||||||
Brazil
|
4,626 | 5,974 | 14,397 | 15,440 | ||||||||||||
Other international
|
2,038 | 1,255 | 5,908 | 6,178 | ||||||||||||
Total revenues
|
$ | 9,349 | $ | 9,405 | $ | 28,806 | $ | 28,555 |
September 30, 2012
|
December 31, 2011
|
|||||||
United States
|
$ | 9,390 | $ | 12,162 | ||||
Brazil
|
19,515 | 15,833 | ||||||
Total property, plant and equipment, net
|
$ | 28,905 | $ | 27,995 |
|
●
|
Level 1 – inputs include quoted prices for identical instruments and are the most observable.
|
|
●
|
Level 2 – inputs include quoted prices for similar assets and observable inputs such as interest rates, currency exchange rates and yield curves.
|
|
●
|
Level 3 – inputs are not observable in the market and include management’s judgments about the assumptions market participants would use in pricing the asset or liability.
|
As of September 30, 2012
|
||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||
Derivative warrant liabilities
|
(1 | ) | $ | - | $ | - | $ | (6,426 | ) | $ | (6,426 | ) | ||||||
Derivative conversion liabilities
|
(2 | ) | - | - | (1,705 | ) | (1,705 | ) | ||||||||||
Total liabilities at fair value
|
$ | - | $ | - | $ | (8,131 | ) | $ | (8,131 | ) |
As of December 31, 2011
|
||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||
Derivative warrant liabilities
|
(1 | ) | $ | - | $ | - | $ | (1,296 | ) | $ | (1,296 | ) | ||||||
Total liabilities at fair value
|
$ | - | $ | - | $ | (1,296 | ) | $ | (1,296 | ) |
(1)
|
We have certain warrant agreements in effect that contain antidilution clauses. Under the antidilution clauses, in the event of equity issuances, we may be required to lower the exercise price on liability warrants and increase the number of shares underlying liability warrants. Equity issuances may include issuances of our common stock, certain awards of options to employees, issuances of warrants and/or other convertible instruments below certain exercise prices. We account for the warrants with these antidilution clauses as liability instruments. These warrants are valued using the lattice model each reporting period and the resultant change in fair value is recorded in the statements of operations.
|
September 30, 2012
|
December 31, 2011
|
|||
Risk-free interest rate
|
0.1% - 0.7%
|
0.1% - 0.8%
|
||
(0.5% weighted average)
|
(0.2% weighted average)
|
|||
Expected volatility
|
90%
|
84%
|
(2)
|
Our outstanding convertible debt contains antidilution clauses. Under the antidilution clauses, in the event of equity issuances, we may be required to lower the conversion price on the convertible debt. Equity issuances may include issuances of our common stock, certain awards of options to employees, issuances of warrants and/or other convertible instruments below certain conversion prices. We account for the derivative conversion liabilities related to convertible debt with these antidilution clauses as liability instruments, separate from the host debt. The derivative conversion liabilities are classified as debt on our balance sheets. These conversion liabilities are valued using a lattice model each reporting period and the resultant change in fair value is recorded in the statements of operations.
|
September 30, 2012
|
||
Risk-free interest rate
|
0.2-0.3%
|
|
(0.3% weighted average)
|
||
Expected volatility
|
90%
|
Nine Months Ended September 30, 2012
|
|||||||||||||||||||||||||
Fair Value
as of
Beginning
of Period
|
Total
Realized
and
Unrealized
Gains
(Losses)
|
Issuance of
New
Instruments
|
Net
Transfers
(Into) Out of
Level 3
|
Fair Value,
at End of
Period
|
Change in Unrealized
Gains
(Losses) on Instruments
Still Held
|
||||||||||||||||||||
(1) | |||||||||||||||||||||||||
Derivative warrant liability
|
$ | (1,296 | ) | $ | 1,142 | $ | (6,983 | ) | $ | 711 | (2 | ) | $ | (6,426 | ) | $ | 1,414 | ||||||||
Derivative conversion liability
|
- | 2,866 | (4,466 | ) | (105 | ) | (3 | ) | (1,705 | ) | 2,866 | ||||||||||||||
Total Level 3 fair value
|
$ | (1,296 | ) | $ | 4,008 | $ | (11,449 | ) | $ | 606 | $ | (8,131 | ) | $ | 4,280 |
Nine Months Ended September 30, 2011
|
||||||||||||||||||||||||
Fair Value
as of
Beginning
of Period
|
Total
Realized
and
Unrealized
Gains
(Losses)
|
Issuance of
New
Warrants
|
Net
Transfers
(Into) Out of
Level 3
|
Fair Value,
at End of
Period
|
Change in Unrealized
Gains
(Losses) on Instruments
Still Held
|
|||||||||||||||||||
(1) | ||||||||||||||||||||||||
Derivative warrant liability
|
$ | (1,628 | ) | $ | 775 | $ | - | $ | - | $ | (853 | ) | $ | 775 | ||||||||||
Total Level 3 fair value
|
$ | (1,628 | ) | $ | 775 | $ | - | $ | - | $ | (853 | ) | $ | 775 |
2012
|
||||||||||||||||||||||
As of September 30, 2012
|
Impairment
|
|||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
Losses
|
||||||||||||||||||
(1) | ||||||||||||||||||||||
Property, plant and equipment
|
(1 | ) | $ | - | $ | - | $ | 1,155 | $ | 1,155 | $ | 1,069 | ||||||||||
Property, plant and equipment
|
$ | - | $ | - | $ | 1,155 | $ | 1,155 | $ | 1,069 |
(1)
|
During the second quarter of 2012, machinery and equipment not currently in use was evaluated for impairment and as a result was written down to estimated fair value. Fair value is an estimate of net realizable value comprised of an estimate of proceeds from sale, based on an internal evaluation of market conditions, less estimated costs to sell. The estimate of net realizable value is subject to change.
|
Date of
Warrants
|
Number of
Shares Under Warrants
|
Exercise Price of Warrant
|
Expiration Date
of Warrant
|
||||
(1)
|
|||||||
January 2012
|
250,000
|
Exercisable immediately at $0.15 per share (2)
|
January 2017
|
||||
January 2012
|
1,112,500
|
Exercisable immediately at $0.10 per share (2)
|
January 2017
|
||||
May 2012
|
12,500
|
Exercisable immediately at $0.10 per share (2)
|
May 2017
|
||||
July 2012
|
142,142
|
Exercisable immediately at $0.07 per share
|
July 2017
|
||||
August 2012
|
53,571
|
Exercisable immediately at $0.07 per share
|
August 2017
|
|
(1)
|
All of the transactional warrants contain full ratchet antidilution provisions and require the holders to provide us with 61 day notice prior to conversion or exercise to the extent the holder would have a beneficial ownership interest in our common stock in excess of 4.99% of our outstanding common stock immediately after conversion or exercise.
|
|
(2)
|
As a result of the July 31, 2012, issuances of convertible debt and related warrants, the exercise prices on these transactional warrants was reduced under the full ratchet antidilution provisions included in the transactional warrants, to $0.07 per share and the number of underlying shares increased to equal the number of original underlying shares times the initial exercise price divided by $0.07 per share.
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Success fees earned by HC under financial advisor agreement payable in cash
|
$ | 38 | $ | 26 | $ | 164 | $ | 26 | ||||||||
Proceeds received from Mr. Halpern and Halpern Entities upon issuance of convertible debt and related warrants
|
100 | 1,000 | 213 | 1,739 | ||||||||||||
Interest earned by Halpern Entities on convertible debt
|
65 | 144 | 236 | 225 | ||||||||||||
Payments to HC relevant to HC's class 6 general unsecured creditor claim
|
- | 153 | 256 | 754 |
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
2012
|
% of
Total
Revenues
|
2011
|
% of
Total
Revenues
|
Change
|
%
Change
|
|||||||||||||||||||
USA segment
|
$ | 3,065 | 32.8 | $ | 2,636 | 28.0 | $ | 429 | 16.3 | |||||||||||||||
Brazil segment
|
6,284 | 67.2 | 6,769 | 72.0 | (485 | ) | (7.2 | ) | ||||||||||||||||
Total revenues
|
$ | 9,349 | 100.0 | $ | 9,405 | 100.0 | $ | (56 | ) | (0.6 | ) |
|
·
|
a $0.6 million increase in bulk DRB revenues;
|
|
·
|
a $0.7 million increase in refined oil and derivative product revenues;
|
|
·
|
a $0.1 million increase in bagged animal feed product revenues; and
|
|
·
|
a $0.1 million increase in shipping and handling ; offset by
|
|
·
|
a $0.4 million decline in crude oil revenues.
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
2012
|
Gross
Profit %
|
2011
|
Gross
Profit %
|
Change
|
Change
in Gross
Profit %
|
|||||||||||||||||||
USA segment
|
$ | 881 | 28.7 | $ | 720 | 27.3 | $ | 161 | 1.4 | |||||||||||||||
Brazil segment
|
995 | 15.8 | 1,179 | 17.4 | (184 | ) | (1.6 | ) | ||||||||||||||||
Total gross profit
|
$ | 1,876 | 20.1 | $ | 1,899 | 20.2 | $ | (23 | ) | (0.1 | ) |
|
Three Months Ended September 30, 2012
|
|||||||||||||||
|
Corporate
|
USA
|
Brazil
|
Consolidated
|
||||||||||||
Selling, general and administrative
|
$ | 870 | $ | 807 | $ | 1,187 | $ | 2,864 | ||||||||
Professional fees
|
141 | - | 225 | 366 | ||||||||||||
Intersegment fees
|
(57 | ) | - | 57 | - | |||||||||||
Total operating expenses
|
$ | 954 | $ | 807 | $ | 1,469 | $ | 3,230 | ||||||||
Three Months Ended September 30, 2011
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Selling, general and administrative
|
$ | 1,364 | $ | 1,219 | $ | 1,151 | $ | 3,734 | ||||||||
Professional fees
|
198 | 3 | 317 | 518 | ||||||||||||
Intersegment fees
|
(102 | ) | - | 102 | - | |||||||||||
Total operating expenses
|
$ | 1,460 | $ | 1,222 | $ | 1,570 | $ | 4,252 | ||||||||
Favorable (Unfavorable) Change
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Selling, general and administrative
|
$ | 494 | $ | 412 | $ | (36 | ) | $ | 870 | |||||||
Professional fees
|
57 | 3 | 92 | 152 | ||||||||||||
Intersegment fees
|
(45 | ) | - | 45 | - | |||||||||||
Total operating expenses
|
$ | 506 | $ | 415 | $ | 101 | $ | 1,022 |
|
Three Months Ended September 30, 2012
|
|||||||||||||||
|
Corporate
|
USA
|
Brazil
|
Consolidated
|
||||||||||||
Interest income
|
$ | - | $ | - | $ | 3 | $ | 3 | ||||||||
Interest expense
|
(173 | ) | - | (325 | ) | (498 | ) | |||||||||
Change in fair value of derivative warrant and conversion liabilities
|
3,502 | - | - | 3,502 | ||||||||||||
Financing expense
|
(640 | ) | - | - | (640 | ) | ||||||||||
Loss on extinguishment
|
(1,955 | ) | - | - | (1,955 | ) | ||||||||||
Foreign currency exchange, net
|
- | - | 209 | 209 | ||||||||||||
Other
|
- | - | (41 | ) | (41 | ) | ||||||||||
Other income (expense)
|
$ | 734 | $ | - | $ | (154 | ) | $ | 580 |
Three Months Ended September 30, 2011
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Interest income
|
$ | 14 | $ | - | $ | 11 | $ | 25 | ||||||||
Interest expense
|
(114 | ) | (34 | ) | (154 | ) | (302 | ) | ||||||||
Change in fair value of derivative warrant liabilities
|
916 | - | - | 916 | ||||||||||||
Foreign currency exchange, net
|
- | - | (321 | ) | (321 | ) | ||||||||||
Other
|
11 | - | 11 | 22 | ||||||||||||
Other income (expense)
|
$ | 827 | $ | (34 | ) | $ | (453 | ) | $ | 340 |
Favorable (Unfavorable) Change
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Interest income
|
$ | (14 | ) | $ | - | $ | (8 | ) | $ | (22 | ) | |||||
Interest expense
|
(59 | ) | 34 | (171 | ) | (196 | ) | |||||||||
Change in fair value of derivative warrant and conversion liabilities
|
2,586 | - | - | 2,586 | ||||||||||||
Financing expense
|
(640 | ) | - | - | (640 | ) | ||||||||||
Loss on extinguishment
|
(1,955 | ) | - | - | (1,955 | ) | ||||||||||
Foreign currency exchange, net
|
- | - | 530 | 530 | ||||||||||||
Other
|
(11 | ) | - | (52 | ) | (63 | ) | |||||||||
Other income (expense)
|
$ | (93 | ) | $ | 34 | $ | 299 | $ | 240 |
Nine Months Ended September 30,
|
||||||||||||||||||||||||
2012
|
% of
Total
Revenues
|
2011
|
% of
Total
Revenues
|
Change
|
%
Change
|
|||||||||||||||||||
USA segment
|
$ | 9,629 | 33.4 | $ | 8,129 | 28.5 | $ | 1,500 | 18.5 | |||||||||||||||
Brazil segment
|
19,177 | 66.6 | 20,426 | 71.5 | (1,249 | ) | (6.1 | ) | ||||||||||||||||
Total revenues
|
$ | 28,806 | 100.0 | $ | 28,555 | 100.0 | $ | 251 | 0.9 |
|
·
|
a $2.2 million increase in bulk DRB revenues; and
|
|
·
|
a $2.0 million increase in refined oil and derivative product revenues; offset by
|
|
·
|
a $0.4 million decline in bagged animal feed product revenues; and
|
|
·
|
a $1.6 million decline in crude oil revenues.
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
2012
|
Gross
Profit %
|
2011
|
Gross
Profit %
|
Change
|
Change
in Gross
Profit %
|
|||||||||||||||||||
USA segment
|
$ | 2,892 | 30.0 | $ | 2,737 | 33.7 | $ | 155 | (3.6 | ) | ||||||||||||||
Brazil segment
|
2,488 | 13.0 | 3,955 | 19.4 | (1,467 | ) | (6.4 | ) | ||||||||||||||||
Total gross profit
|
$ | 5,380 | 18.7 | $ | 6,692 | 23.4 | $ | (1,312 | ) | (4.8 | ) |
|
Nine Months Ended September 30, 2012
|
|||||||||||||||
|
Corporate
|
USA
|
Brazil
|
Consolidated
|
||||||||||||
Selling, general and administrative
|
$ | 3,263 | $ | 2,743 | $ | 3,561 | $ | 9,567 | ||||||||
Professional fees
|
542 | - | 811 | 1,353 | ||||||||||||
Intersegment fees
|
(169 | ) | - | 169 | - | |||||||||||
Impairment of property, plant and equipment
|
- | 1,069 | - | 1,069 | ||||||||||||
Total operating expenses
|
$ | 3,636 | $ | 3,812 | $ | 4,541 | $ | 11,989 |
Nine Months Ended September 30, 2011
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Selling, general and administrative
|
$ | 3,771 | $ | 3,749 | $ | 3,455 | $ | 10,975 | ||||||||
Professional fees
|
1,287 | 36 | 795 | 2,118 | ||||||||||||
Intersegment fees
|
(307 | ) | - | 307 | - | |||||||||||
Recovery from former customer
|
- | (800 | ) | - | (800 | ) | ||||||||||
Total operating expenses
|
$ | 4,751 | $ | 2,985 | $ | 4,557 | $ | 12,293 |
Favorable (Unfavorable) Change
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Selling, general and administrative
|
$ | 508 | $ | 1,006 | $ | (106 | ) | $ | 1,408 | |||||||
Professional fees
|
745 | 36 | (16 | ) | 765 | |||||||||||
Intersegment fees
|
(138 | ) | - | 138 | - | |||||||||||
Impairment of property, plant and equipment
|
- | (1,069 | ) | - | (1,069 | ) | ||||||||||
Recovery from former customer
|
- | (800 | ) | - | (800 | ) | ||||||||||
Total operating expenses
|
$ | 1,115 | $ | (827 | ) | $ | 16 | $ | 304 |
|
Nine Months Ended September 30, 2012
|
|||||||||||||||
|
Corporate
|
USA
|
Brazil
|
Consolidated
|
||||||||||||
Interest income
|
$ | 19 | $ | - | $ | 47 | $ | 66 | ||||||||
Interest expense
|
(494 | ) | (17 | ) | (792 | ) | (1,303 | ) | ||||||||
Change in fair value of derivative warrant and conversion liabilities
|
4,008 | - | - | 4,008 | ||||||||||||
Loss on extinguishment
|
(4,941 | ) | - | - | (4,941 | ) | ||||||||||
Financing expense
|
(2,184 | ) | - | - | (2,184 | ) | ||||||||||
Foreign currency exchange, net
|
- | - | (573 | ) | (573 | ) | ||||||||||
Other
|
- | - | (151 | ) | (151 | ) | ||||||||||
Other income (expense)
|
$ | (3,592 | ) | $ | (17 | ) | $ | (1,469 | ) | $ | (5,078 | ) |
Nine Months Ended September 30, 2011
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Interest income
|
$ | 43 | $ | - | $ | 62 | $ | 105 | ||||||||
Interest expense
|
(430 | ) | (136 | ) | (548 | ) | (1,114 | ) | ||||||||
Change in fair value of derivative warrant liabilities
|
775 | - | - | 775 | ||||||||||||
Foreign currency exchange, net
|
- | - | (268 | ) | (268 | ) | ||||||||||
Other
|
(316 | ) | - | 279 | (37 | ) | ||||||||||
Other income (expense)
|
$ | 72 | $ | (136 | ) | $ | (475 | ) | $ | (539 | ) |
Favorable (Unfavorable) Change
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Interest income
|
$ | (24 | ) | $ | - | $ | (15 | ) | $ | (39 | ) | |||||
Interest expense
|
(64 | ) | 119 | (244 | ) | (189 | ) | |||||||||
Change in fair value of derivative warrant and conversion liabilities
|
3,233 | - | - | 3,233 | ||||||||||||
Loss on extinguishment
|
(4,941 | ) | - | - | (4,941 | ) | ||||||||||
Financing expense
|
(2,184 | ) | - | - | (2,184 | ) | ||||||||||
Foreign currency exchange, net
|
- | - | (305 | ) | (305 | ) | ||||||||||
Other
|
316 | - | (430 | ) | (114 | ) | ||||||||||
Other income (expense)
|
$ | (3,664 | ) | $ | 119 | $ | (994 | ) | $ | (4,539 | ) |
Nine Months Ended September 30, 2012
|
||||||||||||
Corporate
and USA
|
Brazil
|
Consolidated
|
||||||||||
Net loss
|
$ | (8,166 | ) | $ | (2,416 | ) | $ | (10,582 | ) | |||
Adjustments to reconcile net loss to net cash used in operations:
|
||||||||||||
Depreciation and amortization
|
1,744 | 1,879 | 3,623 | |||||||||
Change in fair value of derivative warrant and conversion liabilities
|
(4,008 | ) | - | (4,008 | ) | |||||||
Financing expense
|
2,184 | - | 2,184 | |||||||||
Loss on extinguishment
|
4,941 | - | 4,941 | |||||||||
Impairment of property, plant and equipment
|
1,069 | - | 1,069 | |||||||||
Other adjustments, net
|
1,068 | (792 | ) | 276 | ||||||||
Changes in operating asset and liabilities:
|
||||||||||||
Pre-petition liabilities
|
(1,615 | ) | - | (1,615 | ) | |||||||
Other changes, net
|
(397 | ) | 609 | 212 | ||||||||
Net cash used in operating activities
|
$ | (3,180 | ) | $ | (720 | ) | $ | (3,900 | ) |
Nine Months Ended September 30, 2011
|
||||||||||||
Corporate
and USA
|
Brazil
|
Consolidated
|
||||||||||
Net loss
|
$ | (5,063 | ) | $ | (825 | ) | $ | (5,888 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operations:
|
||||||||||||
Depreciation and amortization
|
1,799 | 2,028 | 3,827 | |||||||||
Change in fair value of derivative warrant liability
|
(775 | ) | - | (775 | ) | |||||||
Other adjustments, net
|
1,382 | (696 | ) | 686 | ||||||||
Changes in operating asset and liabilities:
|
||||||||||||
Pre-petition liabilities
|
(4,230 | ) | - | (4,230 | ) | |||||||
Other changes, net
|
(785 | ) | (99 | ) | (884 | ) | ||||||
Net cash provided by (used in) operating activities
|
$ | (7,672 | ) | $ | 408 | $ | (7,264 | ) |
·
|
growth in existing markets for stabilized rice bran (SRB), rice bran oil (RBO) and defatted rice bran (DRB);
|
·
|
expanding our product offerings and improving existing products;
|
·
|
aligning with strategic partners who can provide channels for additional sales of our products; and
|
·
|
implementing price increases.
|
·
|
sale of certain facilities;
|
·
|
sale of a noncontrolling interest in one or more subsidiaries; or
|
·
|
sale of surplus equipment.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Controls and Procedures
|
|
·
|
One individual prepared and entered journal entries in the accounting system and preformed account reconciliations which were not subject to independent review and approval. Documentation of the review and approval of key control documents was lacking;
|
|
·
|
Year end physical inventory procedures in place were not sufficient to ensure all physical inventory was counted and that obsolete and slow moving inventory was isolated and identified during the count; and
|
|
·
|
Unapproved invoices could be entered into the accounting system and paid by an electronic payment process allowing inappropriate expenditures to potentially go undetected.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Before Events
|
After Events
|
Increase in Shares Under Warrants
|
||||||||
Shares Under Warrants
|
Average Exercise
Price
|
Shares Under Warrants
|
Average Exercise
Price
|
|||||||
May 17, 2012
|
12,500
|
0.10
|
17,857
|
0.07
|
5,357
|
|||||
January 17, 2012
|
6,500,000
|
0.12
|
11,250,000
|
0.07
|
4,750,000
|
|||||
January 18, 2012
|
8,362,500
|
0.12
|
14,017,860
|
0.07
|
5,655,360
|
|||||
July1, 2009
|
5,778,200
|
0.10
|
8,254,571
|
0.07
|
2,476,371
|
|||||
May 7, 2009
|
8,633,327
|
0.10
|
12,333,324
|
0.07
|
3,699,997
|
|||||
February 16, 2007 (1)
|
38,239,172
|
0.95
|
82,252,711
|
0.44
|
44,013,539
|
|||||
April 24, 2008
|
15,075,369
|
0.64
|
28,804,693
|
0.33
|
13,729,324
|
|
(1)
|
The warrants issued February 16, 2007 expired August 16, 2012.
|
Defaults upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Other Information
|
Exhibits
|
Exhibit Number
|
Description of Exhibit
|
3.1
|
Certificate of Ownership dated October 3, 2012 (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on October 10, 2012)
|
10.1
|
Securities Purchase Agreement dated July 31, 2012 (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on August 6, 2012)
|
10.2
|
Security Agreement dated July 31, 2012 (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on August 6, 2012)
|
10.3
|
Subsidiary Guarantee dated July 31, 2012 (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on August 6, 2012)
|
10.4
|
$1,009,200 Original Issue Discount Senior Secured Convertible Debenture Due January 1, 2014
|
10.5
|
$290,000 Original Issue Discount Senior Secured Convertible Debenture Due January 1, 2014 (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on August 6, 2012)
|
10.6
|
Common Stock Warrant (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on August 6, 2012)
|
10.7
|
Exchange Agreement dated July 31, 2012 (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on August 6, 2012)
|
10.8
|
Amendment to Loan Documents dated July 31, 2012 (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on August 6, 2012)
|
10.9
|
Subordination Agreement dated July 31, 2012 (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on August 6, 2012)
|
Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101.INS (1)
|
XBRL Instance Document
|
101.SCH (1)
|
XBRL Taxonomy Extension Schema Document
|
101.CAL (1)
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF (1)
|
XBRL Taxonomy Extension Calculation Definition Linkbase Document
|
101.LAB (1)
|
XBRL Taxonomy Extension Calculation Label Linkbase Document
|
101.PRE (1)
|
XBRL Taxonomy Extension Calculation Presentation Linkbase Document
|
(1)
|
XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
|
Dated: November 14, 2012
|
RiceBran Technologies
|
|
|
|
|
|
|
|
By:
|
/s/ W. John Short
|
|
|
W. John Short
|
||
|
Chief Executive Officer
|
|
By:
|
/s/ J. Dale Belt
|
|
|
Jerry Dale Belt
|
||
|
Chief Financial Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of RiceBran Technologies;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report was prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s disclosure internal control over financial reporting.
|
Dated: November 14, 2012
|
/s/ W. John Short
|
|
|
|
|
|
Name: W. John Short
|
|
|
Title: Chief Executive Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of RiceBran Technologies;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report was prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s disclosure internal control over financial reporting.
|
Dated: November 14, 2012
|
/s/ J. Dale Belt
|
|
|
|
|
|
Name: Jerry Dale Belt
|
|
|
Title: Chief Financial Officer
|
1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Company.
|
Dated: November 14, 2012
|
|
|
|
|
|
|
/s/ W. John Short
|
|
|
W. John Short
|
|
|
Chief Executive Officer
|
|
/s/ J. Dale Belt
|
|
|
Jerry Dale Belt
|
|
|
Chief Financial Officer
|
EQUITY, SHARE-BASED COMPENSATION AND LIABILITY WARRANTS, SHARE-BASED COMPENSATION AND LIABILITY WARRANTS (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 2 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Nov. 30, 2012
Retiring Director [Member]
|
Jan. 31, 2012
Retiring Director [Member]
|
Sep. 30, 2012
Retiring Director [Member]
|
Apr. 30, 2012
Non-employee Directors [Member]
|
Apr. 30, 2012
Non-employee Directors [Member]
|
Apr. 30, 2012
Executive Officers [Member]
|
Sep. 30, 2012
Executive Officers [Member]
|
Sep. 30, 2012
Equity Warrant [Member]
|
Dec. 31, 2011
Equity Warrant [Member]
|
Sep. 30, 2012
Liablility Warrant [Member]
|
Dec. 31, 2011
Liablility Warrant [Member]
|
Sep. 30, 2012
$0.07 to 0.08 [Member]
|
Sep. 30, 2012
$0.20 [Member]
|
Sep. 30, 2012
$0.22-$0.23 [Member]
|
Sep. 30, 2012
$0.33 [Member]
|
Sep. 30, 2012
$0.69 [Member]
|
Sep. 30, 2012
$0.92 [Member]
|
Sep. 30, 2012
$1.56 [Member]
|
Sep. 30, 2012
Minimum [Member]
Executive Officers [Member]
|
Sep. 30, 2012
Maximum [Member]
Executive Officers [Member]
|
Sep. 30, 2012
Shares Under Options [Member]
|
Dec. 31, 2011
Shares Under Options [Member]
|
Jan. 31, 2012
Shares Under Options [Member]
Retiring Director [Member]
|
Sep. 30, 2012
Shares Under Warrants [Member]
|
Dec. 31, 2011
Shares Under Warrants [Member]
|
Sep. 30, 2012
Shares Under Warrants [Member]
$0.07 to 0.08 [Member]
Liablility Warrant [Member]
|
Dec. 31, 2011
Shares Under Warrants [Member]
$0.07 to 0.08 [Member]
Liablility Warrant [Member]
|
Dec. 31, 2011
Shares Under Warrants [Member]
$0.20 [Member]
Liablility Warrant [Member]
|
Sep. 30, 2012
Shares Under Warrants [Member]
$0.20 [Member]
Liablility Warrant [Member]
|
Sep. 30, 2012
Shares Under Warrants [Member]
$0.22-$0.23 [Member]
Equity Warrant [Member]
|
Dec. 31, 2011
Shares Under Warrants [Member]
$0.22-$0.23 [Member]
Equity Warrant [Member]
|
Sep. 30, 2012
Shares Under Warrants [Member]
$0.33 [Member]
Liablility Warrant [Member]
|
Dec. 31, 2011
Shares Under Warrants [Member]
$0.33 [Member]
Liablility Warrant [Member]
|
Sep. 30, 2012
Shares Under Warrants [Member]
$0.69 [Member]
Equity Warrant [Member]
|
Dec. 31, 2011
Shares Under Warrants [Member]
$0.69 [Member]
Equity Warrant [Member]
|
Dec. 31, 2011
Shares Under Warrants [Member]
$0.92 [Member]
Liablility Warrant [Member]
|
Sep. 30, 2012
Shares Under Warrants [Member]
$0.92 [Member]
Liablility Warrant [Member]
|
Dec. 31, 2011
Shares Under Warrants [Member]
$1.56 [Member]
Liablility Warrant [Member]
|
Sep. 30, 2012
Shares Under Warrants [Member]
$1.56 [Member]
Liablility Warrant [Member]
|
|
Options and Shares Under Warrants, Outstanding [Roll Forward] | ||||||||||||||||||||||||||||||||||||||||
Outstanding at beginning of period (in shares) | 38,588,721 | |||||||||||||||||||||||||||||||||||||||
Granted (in shares) | 5,487,148 | |||||||||||||||||||||||||||||||||||||||
Impact of anti-dilution clauses (in shares) | 0 | |||||||||||||||||||||||||||||||||||||||
Impact of amendment (in shares) | 0 | |||||||||||||||||||||||||||||||||||||||
Exercised (in shares) | 0 | |||||||||||||||||||||||||||||||||||||||
Forfeited, expired or cancelled (in shares) | (6,667,115) | |||||||||||||||||||||||||||||||||||||||
Outstanding at end of period (in shares) | 37,408,754 | 38,588,721 | ||||||||||||||||||||||||||||||||||||||
Options, Weighted Average Exercise Price [Roll Forward] | ||||||||||||||||||||||||||||||||||||||||
Outstanding, weighted average exercise price at beginning of period (in dollars per share) | $ 0.27 | |||||||||||||||||||||||||||||||||||||||
Granted, weighted average exercise price (in dollars per share) | $ 0.39 | $ 0.14 | $ 0.12 | $ 0.16 | ||||||||||||||||||||||||||||||||||||
Impact of anti-dilution clauses (in dollars per share) | $ 0 | |||||||||||||||||||||||||||||||||||||||
Impact of amendment (in dollars per share) | $ 0 | |||||||||||||||||||||||||||||||||||||||
Exercised, weighted average exercise price (in dollars per share) | $ 0.19 | $ 0 | ||||||||||||||||||||||||||||||||||||||
Forfeited, expired or cancelled (in dollars per share) | $ 0.33 | |||||||||||||||||||||||||||||||||||||||
Outstanding, weighted average exercise price at end of period (in dollars per share) | $ 0.24 | $ 0.27 | ||||||||||||||||||||||||||||||||||||||
Options, Additional Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Exercisable at end of period (in shares) | 30,164,059 | |||||||||||||||||||||||||||||||||||||||
Exercisable, weighted average exercise price (in dollars per share) | $ 0.25 | |||||||||||||||||||||||||||||||||||||||
Outstanding, weighted average remaining contractual life | 6 years 6 months | 6 years 3 months 18 days | ||||||||||||||||||||||||||||||||||||||
Exercisable, weighted average remaining contractual life | 6 years | |||||||||||||||||||||||||||||||||||||||
Shares Under Warrants [Roll Forward] | ||||||||||||||||||||||||||||||||||||||||
Outstanding at beginning of period (in shares) | 3,474,370 | 43,314,994 | 46,789,364 | |||||||||||||||||||||||||||||||||||||
Granted (in shares) | 1,428,571 | 0 | 84,756,427 | 84,756,427 | ||||||||||||||||||||||||||||||||||||
Impact of anti-dilution clauses (in shares) | 0 | 103,744,062 | 103,744,062 | |||||||||||||||||||||||||||||||||||||
Impact of amendment (in shares) | 0 | 15,642,859 | 15,642,859 | |||||||||||||||||||||||||||||||||||||
Exercised (in shares) | 0 | (5,003,038) | (5,003,038) | |||||||||||||||||||||||||||||||||||||
Forfeited, expired or cancelled (in shares) | (2,323,186) | (82,252,711) | (84,575,897) | |||||||||||||||||||||||||||||||||||||
Outstanding at end of period | 1,151,184 | 3,474,370 | 160,202,593 | 43,314,994 | 161,353,777 | 46,789,364 | ||||||||||||||||||||||||||||||||||
Equity and Liability Warrants, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||||||||||||||||||||||||||||||||||||
Outstanding, weighted average exercise price at beginning of period (in dollars per share) | $ 0.30 | $ 1.10 | $ 1.04 | $ 0 | $ 0 | $ 0.22 | $ 0 | $ 0.69 | $ 0 | $ 0 | ||||||||||||||||||||||||||||||
Granted, weighted average exercise price (in dollars per share) | $ 0 | $ 0.10 | $ 0.10 | |||||||||||||||||||||||||||||||||||||
Impact of anti-dilution clauses, weighted average exercise price (in dollars per share) | $ 0 | |||||||||||||||||||||||||||||||||||||||
Impact of amendment , weighted average exercise price (in dollars per share) | $ 0 | |||||||||||||||||||||||||||||||||||||||
Exercised, weighted average exercise price (in dollars per share) | $ 0 | $ 0.10 | $ 0.10 | |||||||||||||||||||||||||||||||||||||
Forfeited, expired or cancelled, weighted average exercise price (in dollars per share) | $ 0.22 | $ 0.44 | $ 0.43 | |||||||||||||||||||||||||||||||||||||
Outstanding, weighted average exercise price at end of period (in dollars per share) | $ 0.45 | $ 0.30 | $ 0.12 | $ 1.10 | $ 0.12 | $ 1.04 | $ 0.08 | $ 0.20 | $ 0 | $ 0.23 | $ 0.22 | $ 0.33 | $ 0.69 | $ 0.69 | $ 0.92 | $ 0 | $ 1.56 | $ 0 | ||||||||||||||||||||||
Equity and Liability Warrants, Additional Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Exercisable at end of period (in shares) | 1,151,184 | 141,642,593 | 142,793,777 | |||||||||||||||||||||||||||||||||||||
Exercisable, weighted average exercise price at end of period (in dollars per share) | $ 0.45 | $ 0.12 | $ 0.13 | |||||||||||||||||||||||||||||||||||||
Outstanding, weighted average remaining contractual life | 2 years 8 months 12 days | 3 years 6 months | 3 years 9 months 18 days | 1 year 6 months | 3 years 9 months 18 days | 1 year 8 months 12 days | 4 years 6 months | 3 years 2 months 12 days | 4 years 2 months 12 days | 3 years 9 months 18 days | 7 months 6 days | 1 year 1 month 6 days | 1 year 9 months 18 days | 1 year 3 months 18 days | 10 months 24 days | |||||||||||||||||||||||||
Exercisable, weighted average remaining contractual life | 2 years 8 months 12 days | 3 years 7 months 6 days | 3 years 7 months 6 days | |||||||||||||||||||||||||||||||||||||
Shares Under Warrant by Price Range [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Exercise price range, minimum (in dollars per share) | $ 0.07 | $ 0.20 | $ 0.22 | $ 0.33 | $ 0.69 | $ 0.92 | $ 1.56 | |||||||||||||||||||||||||||||||||
Exercise price range, maximum (in dollars per share) | $ 0.08 | $ 0.23 | ||||||||||||||||||||||||||||||||||||||
Shares under warrants (in shares) | 161,353,777 | 46,789,364 | 131,397,900 | 0 | 9,707,282 | 0 | 605,730 | 2,928,916 | 28,804,693 | 0 | 545,454 | 545,454 | 10,360,057 | 0 | 23,247,655 | 0 | ||||||||||||||||||||||||
Outstanding, weighted average exercise price at end of period (in dollars per share) | $ 0.45 | $ 0.30 | $ 0.12 | $ 1.10 | $ 0.12 | $ 1.04 | $ 0.08 | $ 0.20 | $ 0 | $ 0.23 | $ 0.22 | $ 0.33 | $ 0.69 | $ 0.69 | $ 0.92 | $ 0 | $ 1.56 | $ 0 | ||||||||||||||||||||||
Outstanding, weighted average remaining contractual life | 2 years 8 months 12 days | 3 years 6 months | 3 years 9 months 18 days | 1 year 6 months | 3 years 9 months 18 days | 1 year 8 months 12 days | 4 years 6 months | 3 years 2 months 12 days | 4 years 2 months 12 days | 3 years 9 months 18 days | 7 months 6 days | 1 year 1 month 6 days | 1 year 9 months 18 days | 1 year 3 months 18 days | 10 months 24 days | |||||||||||||||||||||||||
Shares issued (in shares) | 2,194,660 | 809,648 | 121,384 | 1,096,505 | 852,592 | 1,552,667 | ||||||||||||||||||||||||||||||||||
Vested shares surrendered for stock issued (in shares) | 3,287,309 | 1,454,596 | ||||||||||||||||||||||||||||||||||||||
Fair value of stock options | $ 0.1 | $ 0.1 | $ 0.2 | |||||||||||||||||||||||||||||||||||||
Fair value of stock issued | 0.2 | 0.1 | 0.2 | 0.1 | 0.7 | |||||||||||||||||||||||||||||||||||
Vesting (in hundredths) | 25.00% | 25.00% | ||||||||||||||||||||||||||||||||||||||
Number of executive officers receiving stock options in lieu of a portion of their compensation | 3 | |||||||||||||||||||||||||||||||||||||||
Percentage of compensation taken in cash from certain executive officers (in hundredths) | 83.30% | 90.00% | ||||||||||||||||||||||||||||||||||||||
Maximum outstanding employee options authorized (in shares) | 10,611,038 | |||||||||||||||||||||||||||||||||||||||
Share price of common stock (in dollars per share) | $ 0.08 | |||||||||||||||||||||||||||||||||||||||
Stock re-pricing amount (in dollars per share) | $ 0.07 | |||||||||||||||||||||||||||||||||||||||
Total unrecognized compensation | $ 0.1 |
D7/CC7#UP>WY"]L`
MG<6_<0ECOP9I\@CV(!)C\N61# H)YYKK&@YS.N/SSRM&4^>$
MFE1S8QQ8,`",C.8<.LA$-38[^%,"JG!\]P(8"J3[VRF<>!!7K$]?(<#V&CC=
M0>/XH$D9$\T&(63- 4\TE
M[@16Q!HT@T_"4X9NF)Z+V6LU4_4899 59X
M4%//0#%H%"_N"QA?FN3]J2K@!RSOD%6H)*FSWU>5'\"]]IT!#%V)52$8-4:=
MEV!1R#T%<``QP&N[&$5"I<1UGN-[3S!VL98'#21CU4GNTH99%E>&MF7.23Q@
M%GH/?B_`S["OQ*9BL81&BJ2",#;S%^4F=XUF'B8S"9RUF+L8"!/,D:IS1TSX
MAA/']IZ!!<[(<,7B)Y&@*\8=L$`82<#YH17!@6\LZ)2O;+GCPIWN9=>8Q]]?
MZ$K@(3"!6``WYJ(#;L,2K8%3&TY*,^[PQD'%EH.`VCP22`,(#F;0_CD&$/
M`>""2,=4U7E0(MG=3V->2M0?I?,1P"&^YO.9H@B)CU23Y][VG;XEUB%_0?^&
M(6E:$,Y0E
M@DFQ6K!!J&.Q1W1J\[!#A)$1`3#@#G\F-O`8_83'N5*8A>BA.I_T@2T`(0.H
MX
1-_!T'>NR$IY$E\E1K$J"2YIW$X"?!4MTBC1
M=Q+H:PV/8UDK#Z$FQ$^_.K9&JOY`M-Y2\?V%%:GYZWVH!8J*O%54WR5>.A!(DPB
MK,PC"A)?$E\_G;<;_4'M,GAD*ZCZ=HU;6D8Q@'7]^7RI0"6&)U[+3J0"B8K^
M^$5=UM>N"RKK)93K\\LH92V=VHB](8IWZ'1,'0=K^_"",W[Q-U&S8XJ^^E^B
M#)*!N1(I=!F4H_&`B:)"'RQFJ,;O988/K2F+=A6K5/*Z6'<%ZTRL].-S:''<
M&VK](6.2R'+\VCFMYN7P1\X*V\K%OPQ-=R^5'T^U)@_'.*[X`J"S@,&B$MG:
MXF.B+M:&LC-!*9D1]:L=EH#07^U7"OTVPDI?2_6%5'>E%.>&FH)I-:&"`EKQ
M.F<-+&H3JT:58118LLI@8/:Q$IG0++\PSH(P?*;Y[`'B)G2YD/+"<&)U8:;^
MF&RL)H?U%RGHBLY)A<'X:_J@J%#4'"_4B#\E\OGC&M-3H(PYE5C4%."N.B!(
M-N$4G:Z*_M"Z[(1%]XS5NGLI=6?#JD#K9YBM2PAZ3`AYJO[AZQPT8B)G7,<8
M>:)PH(\Q#X2O>0@>#?Z?@4F&<20K]:RP8MTSM:@##<&4"TA%.SWSX!.CZ>6W
M?E`N6^LY]$6=-T2)+>SFRGO&:6G_[-HTOA17Z>]O/7;QK*JS=QB@PPQEILV`
MG"?`Y0<$X/O__`]"_OY?%Q?W`"`NA@4CP?@V-:@>]6O!7ER(-^+-WEH@.`_G
MU`<*%&D3L&?Z)YAFKT216JR'"/T]T/'/9QJRKCEL-\]`M(;X[ENSV3H#5FG&
M%.S!SV<7W;/WK783_[-(_X:.PK'P8&3T<(-\I(`>;F7A176.7[*+1R&NZY@H
M/BY46?_-KTOVKR^\IM;_KA][T$?40\+`E:;BVOQ3K]W\_;-M/6.P%!MZFL_H
MU7>#_2[(BE$5$G5EZ3Y)@J!U+&R?O4]EWBJE.3FWG$X^XM"C#W*7XSC.VKL0
MY;\%Z-XS7^.DQ2CCA$6L98*HW^]?0=GNQX\QK15/8EL^`X+Q9Q)'2^FVUB!Z
M9Z%LQ_JE!.XUE@D?23B0`VM(?MN"D_['11^Y#$7IAT(!&_P[;\"?QCX".SDC
M@9*(D%4AU-5HI3'W(;8DC.S8`>:*))E$ML`#47T78F+'TV*EHFE9Q7JB:.
M$F>4/4NC4C-*P=PKS5E!=QS7\N"/7P3VBZ`!(Y]PS5ZFI[AIR9%L4^-?((EK
M;6@N=&U8XG0Z:Y
RML^\K2XRWSAGFSX0W/C1
P2;\ER51&(QYR'YW0N%;8)S&<4^@'\-V?)UQ#4SDI-,1
M_.(Y=$5">\HKE80"'+$QGA\2"$_`NK%MFO8K9R3:>$:8-X7'X67.V<@^,3*:
M@\F9>2Z9&&!6'&TRYW(`>\/(E*H,&*SC_<>83?--U$@U^;UY-J'4Y;)586JT
M'*IYCH-]CU1F,'(.C[L3VV-@]-@;/PW+2BZCUKN]3CQK;Y68A\X5ELGE]'MM
M#WXLOB+M-C[;X0ODUJ3R:Y59F.$8?8AV*6@I:"EH*6@I:"EH*>B#WD?/)_NZ
M)^O`Y<*Z-=^A$5>48(O(@1I?)1Q@45"!TVXU/ZRW+]Z688V4SK;YA()Q=/(5
MSJNDN;I*B7CLP815%B*UA73Z!+N6]B.8=6^G,]5P,!I[LL"5$[*
%SE.@4
MOI@:%N!D-(%GI!"&@TV[:#X\9T[F!C5UI`-L)W\7^H[3'B@+8>H47H,V
M43]BU"42=P4S(X)0-9%YWC0P"&AW@0$4&"MLGZ::FF=BOS&0CVT3^+2"WWW@
MT;^9D13M%2Y!OHE_L-.\O]&31W]@J.P:X;)!!3QO&]W+1DO<(SK/\5GD7
MQ=F@568;X$\P,O5YN)A0$0^KJ7@XS->*$;*5G/-#8K;'8!'+WKP[Q&$:SNJB
MCM+L>&)WXUF:'(EG6[W#E)ZN9N6ZA
P2;\ER51&(QYR'YW
M0N%;8)S&<4^@'\-V?)UQ#4SDI-,1_.(Y=$5"P>>_O_78Q;.JSM[A73Y^E>]S
MI&E?J,K@;?W>>J":YSC0[0>5&>R;98\8=5[0.-Y:,\^%GVU+@[>XTCW!`#Z@
M*-__YW\0\O?_NKCX9#L4($"P$6II
L))\$)D2#?BM^HY>
M$+T"1?LN=+`!BD3U9XI-<55CY!DXJ%JN\!VQKXEJCL4Q'8>?(UTZ=+QR#D;0
MA@&LN>\/\I",:OWA>#-7X^OHY!5]7(NY,_GR)M=64YP4;WD/)[:EA/$=;2("
MNTOM;Q@@\(T'7/GYG%-=P2^>W>;ZK%&'1U9%5+7AE^7FQU-XM+/ART.U_%.Y
M=KA['6W6!0'1554?>PY?%"TMZ<.'$G=NI7,DEPR%>$'7ML7COV#9_7"^H&G0
M4I2?R*(V8.`O,*XI=QC\HS2!?6'QX^FCL+P9GOWWS#4W**[X\1L^@87&?.F@
M@^V98(AM?J[%-_[3Z+0*'M8:`7?\/06^HP,$S6)Q;WZ@V3_;,X[V4\2Z:"Y4
M?]VQJQW6_%)KI=;NI+6_F/8(/`/_0E-X(/C\EU^OW\"+IGGQ;;:@R+=CW.L$
M#9WR_0'+Y4?@X/$&J@-Z7]P%$F<>0#6>Q:3%]_R656]+,P"=I3K`QE+CX?DE
M/,7'O