x
|
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended March 31, 2013
|
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)
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|
(Address of Principal Executive Offices)
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Large accelerated filer o | Accelerated filer | Non-accelerated filer o | Smaller reporting company x |
PART I. FINANCIAL INFORMATION
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Page
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Item 1.
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2
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3 | ||
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4 | ||
5 | |||
6 | |||
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Item 2.
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7
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Item 3.
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27
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Item 4.
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27
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PART II. OTHER INFORMATION
|
|||
|
Item 1.
|
27
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|
|
Item 1A.
|
27
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|
|
Item 2.
|
27
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|
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Item 3.
|
28
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|
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Item 4.
|
28
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Item 5.
|
28
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|
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Item 6.
|
28
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|
29
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2013
|
2012
|
|||||||
Revenues
|
$ | 8,709 | $ | 9,746 | ||||
Cost of goods sold
|
7,743 | 8,005 | ||||||
Gross profit
|
966 | 1,741 | ||||||
Operating expenses:
|
||||||||
Selling, general and administrative
|
2,906 | 3,645 | ||||||
Professional fees
|
507 | 471 | ||||||
Impairment of property
|
300 | - | ||||||
Total operating expenses
|
3,713 | 4,116 | ||||||
Loss from operations
|
(2,747 | ) | (2,375 | ) | ||||
Other income (expense):
|
||||||||
Interest income
|
10 | 47 | ||||||
Interest expense
|
(629 | ) | (418 | ) | ||||
Foreign currency exchange, net
|
250 | (206 | ) | |||||
Change in fair value of derivative warrant and conversion liabilities
|
(3,538 | ) | (2,362 | ) | ||||
Loss on extinguishment
|
(32 | ) | (2,986 | ) | ||||
Financing expense
|
- | (1,524 | ) | |||||
Other income
|
3 | 4 | ||||||
Other expense
|
(125 | ) | (94 | ) | ||||
Total other income (expense)
|
(4,061 | ) | (7,539 | ) | ||||
Loss before income taxes
|
(6,808 | ) | (9,914 | ) | ||||
Income tax benefit
|
510 | 542 | ||||||
Net loss
|
(6,298 | ) | (9,372 | ) | ||||
Net loss attributable to noncontrolling interest in Nutra SA
|
485 | 543 | ||||||
Net loss attributable to RiceBran Technologies shareholders
|
$ | (5,813 | ) | $ | (8,829 | ) | ||
Loss per share attributable to RiceBran Technologies shareholders
|
||||||||
Basic
|
$ | (0.03 | ) | $ | (0.04 | ) | ||
Diluted
|
$ | (0.03 | ) | $ | (0.04 | ) | ||
Weighted average number of shares outstanding
|
||||||||
Basic
|
208,692 | 202,686 | ||||||
Diluted
|
208,692 | 202,686 |
2013
|
2012
|
|||||||
Net loss
|
$ | (6,298 | ) | $ | (9,372 | ) | ||
Other comprehensive income - foreign currency translation, net of tax
|
148 | 347 | ||||||
Comprehensive loss, net of tax
|
(6,150 | ) | (9,025 | ) | ||||
Comprehensive loss attributable to noncontrolling interest, net of tax
|
413 | 373 | ||||||
Total comprehensive loss attributable to RiceBran Technologies shareholders
|
$ | (5,737 | ) | $ | (8,652 | ) |
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
ASSETS
|
|
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 214 | $ | 1,040 | ||||
Restricted cash
|
2,413 | 1,919 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $516 and $518 (variable interest entity restricted $2,609 and $2,505)
|
3,980 | 3,487 | ||||||
Inventories
|
2,237 | 1,994 | ||||||
Deferred tax asset
|
305 | 234 | ||||||
Income and operating taxes recoverable
|
1,031 | 1,167 | ||||||
Deposits and other current assets
|
1,033 | 975 | ||||||
Total current assets
|
11,213 | 10,816 | ||||||
Property, net (variable interest entity restricted $5,827 and $5,757)
|
28,190 | 28,457 | ||||||
Goodwill
|
4,830 | 4,773 | ||||||
Intangible assets, net
|
3,524 | 2,575 | ||||||
Other long-term assets
|
387 | 385 | ||||||
Total assets
|
$ | 48,144 | $ | 47,006 | ||||
LIABILITIES, TEMPORARY EQUITY AND EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 4,238 | $ | 3,021 | ||||
Payable for technology license
|
1,200 | - | ||||||
Accrued expenses
|
4,909 | 4,509 | ||||||
Current maturities of long-term debt (variable interest entity nonrecourse $7,679 and $7,013)
|
8,589 | 8,003 | ||||||
Total current liabilities
|
18,936 | 15,533 | ||||||
Long-term liabilities:
|
||||||||
Long-term debt, less current portion (variable interest entity nonrecourse $7,988 and $7,454 )
|
13,387 | 11,581 | ||||||
Deferred tax liability
|
1,258 | 1,674 | ||||||
Derivative warrant liabilities
|
6,758 | 4,520 | ||||||
Total liabilities
|
40,339 | 33,308 | ||||||
Commitments and contingencies
|
||||||||
Temporary Equity: Redeemable noncontrolling interest in Nutra SA
|
8,849 | 9,262 | ||||||
Equity:
|
||||||||
Equity attributable to RiceBran Technologies shareholders:
|
||||||||
Preferred stock, 20,000,000 shares authorized and none issued
|
- | - | ||||||
Common stock, no par value, 500,000,000 shares authorized, 209,434,847 and 207,616,097 shares issued and outstanding
|
210,653 | 210,396 | ||||||
Accumulated deficit
|
(210,233 | ) | (204,420 | ) | ||||
Accumulated other comprehensive loss
|
(1,464 | ) | (1,540 | ) | ||||
Total equity attributable to RiceBran Technologies shareholders
|
(1,044 | ) | 4,436 | |||||
Total liabilities, temporary equity and equity
|
$ | 48,144 | $ | 47,006 |
2013
|
2012
|
|||||||
Cash flow from operating activities:
|
||||||||
Net loss
|
$ | (6,298 | ) | $ | (9,372 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
968 | 1,439 | ||||||
Provision for doubtful accounts receivable
|
17 | 305 | ||||||
Stock and share-based compensation
|
117 | 346 | ||||||
Change in fair value of derivative warrant and conversion liabilities
|
3,538 | 2,362 | ||||||
Financing expense
|
- | 1,524 | ||||||
Impairment of property
|
300 | - | ||||||
Loss on extinguishment
|
32 | 2,986 | ||||||
Deferred tax benefit
|
(510 | ) | (541 | ) | ||||
Other
|
(40 | ) | 38 | |||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(232 | ) | (439 | ) | ||||
Inventories
|
(189 | ) | 431 | |||||
Accounts payable and accrued expenses
|
1,250 | (349 | ) | |||||
Pre-petition liabilities
|
- | (1,615 | ) | |||||
Other
|
143 | (60 | ) | |||||
Net cash used in operating activities
|
(904 | ) | (2,945 | ) | ||||
Cash flows from investing activities:
|
||||||||
Purchases of property
|
(716 | ) | (1,543 | ) | ||||
Proceeds from sale of property
|
327 | 213 | ||||||
Receipts on notes receivable
|
- | 300 | ||||||
Restricted cash
|
(500 | ) | 200 | |||||
Other
|
- | (9 | ) | |||||
Net cash used in investing activities
|
(889 | ) | (839 | ) | ||||
Cash flows from financing activities:
|
||||||||
Payments of debt
|
(2,974 | ) | (2,995 | ) | ||||
Proceeds from issuance of debt
|
3,929 | 1,385 | ||||||
Proceeds from issuance of convertible debt and related warrants
|
- | 2,362 | ||||||
Net cash provided by financing activities
|
955 | 752 | ||||||
Effect of exchange rate changes on cash and cash equivalents
|
12 | 171 | ||||||
Net change in cash and cash equivalents
|
(826 | ) | (2,861 | ) | ||||
Cash and cash equivalents, beginning of period
|
1,040 | 3,329 | ||||||
Cash and cash equivalents, end of period
|
$ | 214 | $ | 468 | ||||
Supplemental disclosures:
|
||||||||
Cash paid for interest
|
$ | 275 | $ | 373 | ||||
Cash paid for income taxes
|
- | - |
·
|
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.
|
2013
|
2012
|
|||||||
NUMERATOR (in thousands):
|
||||||||
Basic and diluted - net loss attributable to RiceBran Technologies shareholders
|
$ | (5,813 | ) | $ | (8,829 | ) | ||
DENOMINATOR:
|
||||||||
Basic EPS - weighted average number of shares outstanding
|
208,691,791 | 202,686,445 | ||||||
Effect of dilutive securities outstanding
|
- | - | ||||||
Diluted EPS - weighted average number of shares outstanding
|
208,691,791 | 202,686,445 | ||||||
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 of $0.15 and $0.26)
|
34,651,990 | 38,849,299 | ||||||
Warrants (average exercise price of $0.12 and $0.50 )
|
161,353,772 | 106,712,071 | ||||||
Convertible debt (average conversion price of $0.07 and $0.11)
|
93,517,536 | 39,759,633 |
March 31
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Cash and cash equivalents
|
$ | 175 | $ | 562 | ||||
Restricted cash
|
494 | - | ||||||
Other current assets (restricted $2,609 and $2,505)
|
5,822 | 5,675 | ||||||
Property, net (restricted $5,827 and $5,757)
|
20,413 | 19,690 | ||||||
Goodwill and intangibles, net
|
6,120 | 6,215 | ||||||
Other noncurrent assets
|
66 | 54 | ||||||
Total assets
|
$ | 33,090 | $ | 32,196 | ||||
Current liabilities
|
$ | 6,142 | $ | 5,141 | ||||
Current portion of long-term debt (nonrecourse $7,679 and $7,013)
|
7,679 | 7,013 | ||||||
Long-term debt, less current portion (nonrecourse $7,988 and $7,454)
|
7,988 | 7,454 | ||||||
Other noncurrent liabilities
|
1,257 | 1,871 | ||||||
Total liabilities
|
$ | 23,066 | $ | 21,479 |
2013
|
2012
|
|||||||
Redeemable noncontrolling interest in Nutra SA, January 1
|
$ | 9,262 | $ | 9,918 | ||||
Investors' interest in net loss of Nutra SA
|
(485 | ) | (543 | ) | ||||
Investors' interest in other comprehensive income of Nutra SA
|
72 | 170 | ||||||
Redeemable noncontrolling interest in Nutra SA, March 31
|
$ | 8,849 | $ | 9,545 |
|
·
|
A Nutra SA business plan deviation, defined as the occurrence, in either 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. 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 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 our common stock.. This right is available upon the earlier of January 2014 or upon an event of default. We may elect to postpone our obligation to complete the 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.
|
|
·
|
Drag Along Rights – The Investors have the right to force the sale of all Nutra SA assets after the earlier of January 2014 or the date of an event of default or 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.
|
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Finished goods
|
$ | 1,402 | $ | 1,146 | ||||
Work in process
|
417 | 330 | ||||||
Raw materials
|
168 | 255 | ||||||
Packaging supplies
|
250 | 263 | ||||||
Total inventories
|
$ | 2,237 | $ | 1,994 |
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Land
|
$ | 406 | $ | 403 | ||||
Furniture and fixtures
|
358 | 358 | ||||||
Plant
|
14,516 | 14,362 | ||||||
Computer and software
|
1,433 | 1,407 | ||||||
Leasehold improvements
|
195 | 189 | ||||||
Machinery and equipment
|
14,436 | 15,053 | ||||||
Construction in progress
|
10,090 | 9,118 | ||||||
Property
|
41,434 | 40,890 | ||||||
Less accumulated depreciation
|
13,244 | 12,433 | ||||||
Property, net
|
$ | 28,190 | $ | 28,457 |
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
USA segment:
|
||||||||
Subordinated convertible notes, net
|
$ | 5,297 | $ | 4,041 | ||||
Senior convertible debentures, net
|
911 | 1,048 | ||||||
Factoring agreement
|
101 | 28 | ||||||
6,309 | 5,117 | |||||||
Brazil segment:
|
||||||||
Capital expansion loans
|
5,601 | 5,555 | ||||||
Equipment financing
|
227 | 201 | ||||||
Working capital lines of credit
|
3,912 | 2,227 | ||||||
Advances on export letters of credit
|
3,486 | 3,953 | ||||||
Special tax programs
|
2,441 | 2,531 | ||||||
15,667 | 14,467 | |||||||
Total debt
|
21,976 | 19,584 | ||||||
Current portion
|
8,589 | 8,003 | ||||||
Long-term portion
|
$ | 13,387 | $ | 11,581 |
Subordinated
Convertible Notes
|
||||||||||||||||
Senior
Convertible
Debentures
|
Halpern
Entities
|
Other
Investors
|
Total
|
|||||||||||||
Principal outstanding
|
$ | (994 | ) | $ | (2,600 | ) | $ | (2,775 | ) | $ | (6,369 | ) | ||||
Discount
|
313 | 548 | 2,775 | 3,636 | ||||||||||||
Derivative conversion liabilities
|
(230 | ) | (1,570 | ) | (1,675 | ) | (3,475 | ) | ||||||||
Debt
|
$ | (911 | ) | $ | (3,622 | ) | $ | (1,675 | ) | (6,208 | ) | |||||
Debt - current portion
|
$ | (808 | ) | $ | - | $ | - | $ | (808 | ) | ||||||
Debt - long-term portion
|
(103 | ) | (3,622 | ) | (1,675 | ) | (5,400 | ) |
Issuance
|
Date of Debt
and/or
Warrant
|
Principal
Amount of
Notes and
Debenture
(in
thousands)
|
Creditor's
Debt
Conversion
Right
|
Stated
Annual
Interest
Rate on
Debt
|
Maturity
Date of Debt
|
Number of
Shares
Under
Warrant
|
Exercise
Price of
Warrant
|
Expiration
Date of
Warrant
|
|||||||||||
Subordinated Convertible Notes and Warrants
|
April and May 2013
|
$ | 238 |
Convertible immediately at $0.07 per share
|
10 | % |
July 2015
|
3,394,324 |
Exercisable immediately at $0.08 per share
|
July 2017
|
Common Stock
|
Accumulated
|
Accumulated
Other
Comprehensive
|
Total
|
|||||||||||||||||
Shares
|
Amount
|
Deficit
|
Loss
|
Equity
|
||||||||||||||||
Balance, December 31, 2012
|
207,616,097 | $ | 210,396 | $ | (204,420 | ) | $ | (1,540 | ) | $ | 4,436 | |||||||||
Share-based compensation, options
|
- | 76 | - | - | 76 | |||||||||||||||
Conversion of senior subordinated debenture
|
1,400,000 | 140 | - | - | 140 | |||||||||||||||
Common stock issued for services
|
418,750 | 41 | - | - | 41 | |||||||||||||||
Foreign currency translation
|
- | - | - | 76 | 76 | |||||||||||||||
Net loss
|
- | - | (5,813 | ) | - | (5,813 | ) | |||||||||||||
Balance, March 31, 2013
|
209,434,847 | $ | 210,653 | $ | (210,233 | ) | $ | (1,464 | ) | $ | (1,044 | ) |
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, 2012
|
33,850,895 | $ | 0.16 | 6.3 | 161,353,777 | $ | 0.12 | 3.5 | ||||||||||||||||
Granted
|
1,250,000 | 0.08 | - | - | ||||||||||||||||||||
Impact of anti-dilution clauses
|
- | - | - | - | ||||||||||||||||||||
Exercised
|
- | - | - | - | ||||||||||||||||||||
Forfeited, expired or cancelled
|
(1,369,206 | ) | 0.18 | - | - | |||||||||||||||||||
Outstanding, March 31, 2013
|
33,731,689 | $ | 0.15 | 6.1 | 161,353,777 | $ | 0.12 | 3.3 | ||||||||||||||||
Exercisable, March 31, 2013
|
28,210,407 | $ | 0.16 | 5.7 | 161,353,777 | $ | 0.12 | 3.3 |
Three Months Ended March 31, 2013
|
Corporate
|
USA
|
Brazil
|
Consolidated
|
||||||||||||
Revenues
|
$ | - | $ | 2,909 | $ | 5,800 | $ | 8,709 | ||||||||
Cost of goods sold
|
- | 2,205 | 5,538 | 7,743 | ||||||||||||
Gross profit
|
- | 704 | 262 | 966 | ||||||||||||
Depreciation and amortization (in selling, general and administrative)
|
(6 | ) | (121 | ) | (204 | ) | (331 | ) | ||||||||
Intersegment fees
|
56 | - | (56 | ) | - | |||||||||||
Other operating expense
|
(1,416 | ) | (677 | ) | (1,289 | ) | (3,382 | ) | ||||||||
Loss from operations
|
$ | (1,366 | ) | $ | (94 | ) | $ | (1,287 | ) | $ | (2,747 | ) | ||||
Net loss attributable to RiceBran Technologies
|
$ | (5,213 | ) | $ | (94 | ) | $ | (506 | ) | $ | (5,813 | ) | ||||
Interest expense
|
276 | - | 353 | 629 | ||||||||||||
Depreciation (in cost of goods sold)
|
- | 225 | 412 | 637 | ||||||||||||
Purchases of property
|
4 | 12 | 700 | 716 |
Three Months Ended March 31, 2012
|
Corporate
|
USA
|
Brazil
|
Consolidated
|
||||||||||||
Revenues
|
$ | - | $ | 3,411 | $ | 6,335 | $ | 9,746 | ||||||||
Cost of goods sold
|
- | 2,399 | 5,606 | 8,005 | ||||||||||||
Gross profit
|
- | 1,012 | 729 | 1,741 | ||||||||||||
Depreciation and amortization (in selling, general and administrative)
|
(28 | ) | (331 | ) | (425 | ) | (784 | ) | ||||||||
Intersegment fees
|
56 | - | (56 | ) | - | |||||||||||
Other operating expense
|
(1,276 | ) | (669 | ) | (1,387 | ) | (3,332 | ) | ||||||||
Loss from operations
|
$ | (1,248 | ) | $ | 12 | $ | (1,139 | ) | $ | (2,375 | ) | |||||
Net loss attributable to RiceBran Technologies
|
$ | (8,268 | ) | $ | 4 | $ | (565 | ) | $ | (8,829 | ) | |||||
Interest expense
|
155 | 8 | 255 | 418 | ||||||||||||
Depreciation (in cost of goods sold)
|
- | 257 | 398 | 655 | ||||||||||||
Purchases of property
|
- | 2 | 1,541 | 1,543 |
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
As of March 31, 2013
|
||||||||||||||||
Inventories
|
$ | - | $ | 968 | $ | 1,269 | $ | 2,237 | ||||||||
Property, net
|
61 | 7,716 | 20,413 | 28,190 | ||||||||||||
Goodwill
|
- | - | 4,830 | 4,830 | ||||||||||||
Intangible assets, net
|
- | 2,234 | 1,290 | 3,524 | ||||||||||||
Total assets
|
2,763 | 12,291 | 33,090 | 48,144 | ||||||||||||
As of December 31, 2012
|
||||||||||||||||
Inventories
|
- | 764 | 1,230 | 1,994 | ||||||||||||
Property, net
|
36 | 8,731 | 19,690 | 28,457 | ||||||||||||
Goodwill
|
- | - | 4,773 | 4,773 | ||||||||||||
Intangible assets, net
|
- | 1,133 | 1,442 | 2,575 | ||||||||||||
Total assets
|
3,201 | 11,609 | 32,196 | 47,006 |
2013
|
2012
|
|||||||
United States
|
$ | 3,595 | $ | 3,029 | ||||
Brazil
|
4,271 | 4,941 | ||||||
Other international
|
843 | 1,776 | ||||||
Total revenues
|
$ | 8,709 | $ | 9,746 |
|
●
|
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.
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||
March 31, 2013
|
|||||||||||||||||
Derivative warrant liabilities
|
(1 | ) | $ | - | $ | - | $ | (6,758 | ) | $ | (6,758 | ) | |||||
Derivative conversion liabilities
|
(2 | ) | - | - | (3,475 | ) | (3,475 | ) | |||||||||
Total liabilities at fair value
|
$ | - | $ | - | $ | (10,233 | ) | $ | (10,233 | ) | |||||||
December 31, 2012
|
|||||||||||||||||
Derivative warrant liabilities
|
(1 | ) | $ | - | $ | - | $ | (4,520 | ) | $ | (4,520 | ) | |||||
Derivative conversion liabilities
|
(2 | ) | - | - | (2,199 | ) | (2,199 | ) | |||||||||
Total liabilities at fair value
|
$ | - | $ | - | $ | (6,719 | ) | $ | (6,719 | ) |
(1)
|
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. The lattice model requires us to assess the probability of future issuance of equity instruments at a price lower than the current exercise price of the warrants. The risk-free interest rate is determined by reference to the treasury yield curve rate of instruments with the same term as the warrant. Additional assumptions that were used to calculate fair value follow.
|
March 31, 2013
|
December 31, 2012
|
|||||
Risk-free interest rate
|
0.0% - .07%
|
0.1% - 0.7%
|
||||
(0.6% weighted average)
|
(0.6% weighted average)
|
|||||
Expected volatility
|
91%
|
93%
|
(2)
|
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. The lattice model requires us to assess the probability of future issuance of equity instruments at a price lower than the current conversion price of the debt. The risk-free interest rate is determined by reference to the treasury yield curve rate of instruments with the same term as the underlying debt. Additional assumptions that were used to calculate fair value follow.
|
March 31, 2013
|
December 31, 2012
|
|||||
Risk-free interest rate
|
0.1-0.3%
|
0.2-0.3%
|
||||
(0.3% weighted average)
|
(0.3% weighted average)
|
|||||
Expected volatility
|
91%
|
93%
|
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) | (2) | |||||||||||||||||||||||
Three Months Ended March 31, 2013
|
||||||||||||||||||||||||
Derivative warrant liability
|
$ | (4,520 | ) | $ | (2,238 | ) | $ | - | $ | - | $ | (6,758 | ) | $ | (2,238 | ) | ||||||||
Derivative conversion liability
|
(2,199 | ) | (1,300 | ) | - | 24 | (3,475 | ) | (1,317 | ) | ||||||||||||||
Total Level 3 fair value
|
$ | (6,719 | ) | $ | (3,538 | ) | $ | - | $ | 24 | $ | (10,233 | ) | $ | (3,555 | ) | ||||||||
Three Months Ended March 31, 2012
|
||||||||||||||||||||||||
Derivative warrant liability
|
$ | (1,296 | ) | $ | (1,962 | ) | $ | (4,929 | ) | $ | 711 | $ | (7,476 | ) | $ | (1,567 | ) | |||||||
Derivative conversion liability
|
- | (400 | ) | (3,655 | ) | - | (4,055 | ) | (400 | ) | ||||||||||||||
Total Level 3 fair value
|
$ | (1,296 | ) | $ | (2,362 | ) | $ | (8,584 | ) | $ | 711 | $ | (11,531 | ) | $ | (1,967 | ) |
2013
|
||||||||||||||||||||||
As of March 31, 2013
|
Impairment
|
|||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
Losses
|
||||||||||||||||||
(1) | ||||||||||||||||||||||
Property, net
|
(1 | ) | $ | - | $ | - | $ | 394 | $ | 394 | $ | 300 | ||||||||||
Property, net
|
$ | - | $ | - | $ | 394 | $ | 394 | $ | 300 |
(1)
|
During the first 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.
|
Three Months Ended March 31,
|
||||||||||||||||||||||||
2013
|
% of
Total
Revenues
|
2012
|
% of
Total
Revenues
|
Change
|
% Change
|
|||||||||||||||||||
USA segment
|
$ | 2,909 | 33.4 | $ | 3,411 | 35.0 | $ | (502 | ) | (14.7 | ) | |||||||||||||
Brazil segment
|
5,800 | 66.6 | 6,335 | 65.0 | (535 | ) | (8.4 | ) | ||||||||||||||||
Total revenues
|
$ | 8,709 | 100.0 | $ | 9,746 | 100.0 | $ | (1,037 | ) | (10.6 | ) |
Three Months Ended March 31,
|
||||||||||||||||||||||||
2013
|
Gross
Profit %
|
2012
|
Gross
Profit %
|
Change
|
Change
in Gross
Profit %
|
|||||||||||||||||||
USA segment
|
$ | 704 | 24.2 | $ | 1,012 | 29.7 | $ | (308 | ) | (5.5 | ) | |||||||||||||
Brazil segment
|
262 | 4.5 | 729 | 11.5 | (467 | ) | (7.0 | ) | ||||||||||||||||
Total gross profit
|
$ | 966 | 11.1 | $ | 1,741 | 17.9 | $ | (775 | ) | (6.8 | ) |
Three Months Ended March 31, 2013
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Selling, general and administrative
|
$ | 1,173 | $ | 498 | $ | 1,235 | $ | 2,906 | ||||||||
Professional fees
|
249 | - | 258 | 507 | ||||||||||||
Intersegment fees
|
(56 | ) | - | 56 | - | |||||||||||
Impairment of property
|
- | 300 | - | 300 | ||||||||||||
Total operating expenses
|
$ | 1,366 | $ | 798 | $ | 1,549 | $ | 3,713 |
Three Months Ended March 31, 2012
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Selling, general and administrative
|
$ | 1,133 | $ | 1,000 | $ | 1,512 | $ | 3,645 | ||||||||
Professional fees
|
171 | - | 300 | 471 | ||||||||||||
Intersegment fees
|
(56 | ) | - | 56 | - | |||||||||||
Total operating expenses
|
$ | 1,248 | $ | 1,000 | $ | 1,868 | $ | 4,116 |
Favorable (Unfavorable) Change
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Selling, general and administrative
|
$ | (40 | ) | $ | 502 | $ | 277 | $ | 739 | |||||||
Professional fees
|
(78 | ) | - | 42 | (36 | ) | ||||||||||
Intersegment fees
|
- | - | - | - | ||||||||||||
Impairment of property
|
- | (300 | ) | - | (300 | ) | ||||||||||
Total operating expenses
|
$ | (118 | ) | $ | 202 | $ | 319 | $ | 403 |
Three Months Ended March 31, 2013
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Interest income
|
$ | - | $ | - | $ | 10 | $ | 10 | ||||||||
Interest expense
|
(276 | ) | - | (353 | ) | (629 | ) | |||||||||
Foreign currency exchange, net
|
- | - | 250 | 250 | ||||||||||||
Change in fair value of derivative warrant and conversion liabilities
|
(3,538 | ) | - | - | (3,538 | ) | ||||||||||
Loss on extinguishment
|
(32 | ) | - | - | (32 | ) | ||||||||||
Financing expense
|
- | - | - | - | ||||||||||||
Other
|
- | - | (122 | ) | (122 | ) | ||||||||||
Other income (expense)
|
$ | (3,846 | ) | $ | - | $ | (215 | ) | $ | (4,061 | ) |
Three Months Ended March 31, 2012
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Interest income
|
$ | 6 | $ | - | $ | 41 | $ | 47 | ||||||||
Interest expense
|
(155 | ) | (8 | ) | (255 | ) | (418 | ) | ||||||||
Foreign currency exchange, net
|
- | - | (206 | ) | (206 | ) | ||||||||||
Change in fair value of derivative warrant and conversion liabilities
|
(2,362 | ) | - | - | (2,362 | ) | ||||||||||
Loss on extinguishment
|
(2,986 | ) | - | - | (2,986 | ) | ||||||||||
Financing expense
|
(1,524 | ) | - | - | (1,524 | ) | ||||||||||
Other
|
- | - | (90 | ) | (90 | ) | ||||||||||
Other income (expense)
|
$ | (7,021 | ) | $ | (8 | ) | $ | (510 | ) | $ | (7,539 | ) |
Favorable (Unfavorable) Change
|
||||||||||||||||
Corporate
|
USA
|
Brazil
|
Consolidated
|
|||||||||||||
Interest income
|
$ | (6 | ) | $ | - | $ | (31 | ) | $ | (37 | ) | |||||
Interest expense
|
(121 | ) | 8 | (98 | ) | (211 | ) | |||||||||
Foreign currency exchange, net
|
- | - | 456 | 456 | ||||||||||||
Change in fair value of derivative warrant and conversion liabilities
|
(1,176 | ) | - | - | (1,176 | ) | ||||||||||
Loss on extinguishment
|
2,954 | - | - | 2,954 | ||||||||||||
Financing expense
|
1,524 | - | - | 1,524 | ||||||||||||
Other
|
- | - | (32 | ) | (32 | ) | ||||||||||
Other income (expense)
|
$ | 3,175 | $ | 8 | $ | 295 | $ | 3,478 |
Three Months Ended March 31, 2013
|
||||||||||||
Corporate and USA
|
Brazil
|
Consolidated
|
||||||||||
Net loss
|
$ | (5,306 | ) | $ | (992 | ) | $ | (6,298 | ) | |||
Adjustments to reconcile net loss to net cash used in operations:
|
||||||||||||
Depreciation and amortization
|
351 | 617 | 968 | |||||||||
Change in fair value of derivative warrant and conversion liabilities
|
3,538 | - | 3,538 | |||||||||
Impairment of property
|
300 | 300 | ||||||||||
Loss on extinguishment
|
32 | - | 32 | |||||||||
Other adjustments, net
|
327 | (743 | ) | (416 | ) | |||||||
Changes in operating assets and liabilities
|
(18 | ) | $ | 990 | 972 | |||||||
Net cash used in operating activities
|
$ | (776 | ) | $ | (128 | ) | $ | (904 | ) |
Three Months Ended March 31, 2012
|
||||||||||||
Corporate and USA
|
Brazil
|
Consolidated
|
||||||||||
Net loss
|
$ | (8,264 | ) | $ | (1,108 | ) | $ | (9,372 | ) | |||
Adjustments to reconcile net loss to net cash used in operations:
|
||||||||||||
Depreciation and amortization
|
616 | 823 | 1,439 | |||||||||
Change in fair value of derivative warrant and conversion liabilities
|
2,362 | - | 2,362 | |||||||||
Financing expense
|
1,524 | - | 1,524 | |||||||||
Loss on extinguishment
|
2,986 | - | 2,986 | |||||||||
Other adjustments, net
|
384 | (236 | ) | 148 | ||||||||
Changes in operating asset and liabilities:
|
||||||||||||
Pre-petition liabilities
|
(1,615 | ) | - | (1,615 | ) | |||||||
Other changes, net
|
(437 | ) | 20 | (417 | ) | |||||||
Net cash used in operating activities
|
$ | (2,444 | ) | $ | (501 | ) | $ | (2,945 | ) |
·
|
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.
|
Item 4.
|
Item 1A.
|
Item 3.
|
Item 4.
|
Item 5.
|
Item 6.
|
Exhibit
Number
|
Description of Exhibit
|
10.58
|
License Agreement dated March 14, 2013 (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on March 20, 2013)
|
10.59
|
Membership Interest Purchase Agreement dated April 2, 2013 (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on April 5, 2013)
|
10.60
|
Sublicense Agreement with RBT PRO LLC and Wilmar (Shanghai) Biotechnology Research Development Center Co., Ltd. dated April 2, 2013 (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on April 5, 2013)
|
10.61
|
Sublicense Agreement with RBT PRO LLC dated April 2, 2013 (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on April 5, 2013)
|
10.62
|
Cross License Agreement with Wilmar (Shanghai) Biotechnology Research Development Center Co., Ltd. dated April 2, 2013 (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on April 5, 2013)
|
10.63
|
Amended and Restated Limited Liability Company Agreement dated April 2, 2013 (incorporated herein by reference to exhibits previously filed on registrant’s current report on Form 8-K, filed on April 5, 2013)
|
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 Document
|
101.LAB (1)
|
XBRL Taxonomy Extension Calculation Label Document
|
101.PRE (1)
|
XBRL Taxonomy Extension Calculation Presentation 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: May 14, 2013
|
|
|
|
|
|
|
/s/ W. John Short
|
|
|
W. John Short
|
|
|
Chief Executive Officer
|
|
/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: May 14, 2013
|
/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: May 14, 2013
|
/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: May 14, 2013
|
|
|
|
|
|
|
/s/ W. John Short
|
|
|
W. John Short
|
|
|
Chief Executive Officer
|
|
/s/ J. Dale Belt
|
|
|
Jerry Dale Belt
|
|
|
Chief Financial Officer
|
INTANGIBLE ASSETS (Details) (USD $)
|
1 Months Ended | ||
---|---|---|---|
Apr. 30, 2013
|
Mar. 31, 2013
|
Dec. 31, 2012
|
|
INTANGIBLE ASSETS [Abstract] | |||
Payable for technology license | $ 1,200,000 | $ 0 | |
Payments to acquire technology license | 1,200,000 | ||
Perpetual license rights | $ 1,200,000 | ||
Ownership interest sold (in hundredths) | 50.00% |
RELATED PARTY TRANSACTIONS (Details) (USD $)
|
3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
Apr. 30, 2013
|
Mar. 31, 2012
Convertible Subordinated Debt [Member]
First Issuance 10 cents per share [Member]
January 2012 [Member]
|
Mar. 31, 2012
Convertible Subordinated Debt [Member]
Second Issuance at 0.15 per share [Member]
January 2012 [Member]
|
Mar. 31, 2013
Promissory Note [Member]
|
Jan. 31, 2012
Director - Baruch Halpern [Member]
|
Mar. 31, 2013
Director - Baruch Halpern [Member]
|
Dec. 31, 2012
Director - Baruch Halpern [Member]
|
Apr. 30, 2013
Director - Baruch Halpern [Member]
Promissory Note [Member]
|
Mar. 31, 2012
Director - Mr. Hoogenkamp [Member]
|
Apr. 30, 2013
Other Officers and Directors [Member]
|
Jan. 31, 2012
Other Officers and Directors [Member]
|
Mar. 31, 2013
Other Officers and Directors [Member]
|
Mar. 31, 2012
Other Officers and Directors [Member]
|
Mar. 31, 2013
HC and Halpern Entities [Member]
|
Mar. 31, 2012
HC and Halpern Entities [Member]
|
Mar. 31, 2013
HC and Halpern Entities [Member]
January 2012 [Member]
|
Mar. 31, 2013
Minimum [Member]
Director - Baruch Halpern [Member]
|
Mar. 31, 2013
Maximum [Member]
Director - Baruch Halpern [Member]
|
|
Related Party Transaction [Line Items] | ||||||||||||||||||||
Obligated to pay success fees (in hundredths) | 2.50% | 5.00% | ||||||||||||||||||
Additional consideration paid on certain transactions (in hundredths) | 2.50% | 5.00% | ||||||||||||||||||
Payment of fees | $ 100,000 | $ 100,000 | ||||||||||||||||||
Number of shares under warrant (in shares) | 712,500 | 150,000 | ||||||||||||||||||
Exercise price per warrant (in dollars per share) | $ 0.10 | $ 0.15 | ||||||||||||||||||
Success fees | 0 | |||||||||||||||||||
Warrants issued (in shares) | 5,166,520 | |||||||||||||||||||
Weighted average exercise price per warrant (in dollars per share) | $ 0.10 | |||||||||||||||||||
Warrants granted in period, fair value | 100,000 | |||||||||||||||||||
Due to related parties | 2,600,000 | 2,600,000 | ||||||||||||||||||
Accrued Interest | 100,000 | |||||||||||||||||||
Proceeds from related parties | 100,000 | |||||||||||||||||||
Principal amount promissory note | 100,000 | 100,000 | ||||||||||||||||||
Stated annual interest rate (in hundredths) | 10.00% | 10.00% | ||||||||||||||||||
Minimum closing transaction amount | 2,500,000 | |||||||||||||||||||
Payments to HC relevant to HC's class 6 general unsecured creditor claim | 400,000 | |||||||||||||||||||
Consulting service fees | 100,000 | |||||||||||||||||||
Repayments of convertible notes | 2,974,000 | 2,995,000 | 0 | 0 | ||||||||||||||||
Proceeds from issuance of subordinated long-term debt | 25,000 | 100,000 | ||||||||||||||||||
Interest Paid | $ 275,000 | $ 373,000 | $ 100,000 | $ 100,000 |
BASIS OF PRESENTATION (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
BASIS OF PRESENTATION [Abstract] | ||
Accumulated deficit | $ 210,233 | $ 204,420 |
LOSS PER SHARE (EPS) (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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LOSS PER SHARE (EPS) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliations of numerators and denominators in EPS computations | Below are reconciliations of the numerators and denominators in the EPS computations for the three months ended March 31, 2013 and 2012.
|
PRE-PETITION LIABILITIES (Details) (USD $)
In Millions, unless otherwise specified |
1 Months Ended |
---|---|
Jan. 31, 2012
|
|
PRE-PETITION LIABILITIES [Abstract] | |
Bankruptcy claims, amount paid to settle claims | $ 1.6 |
INVENTORIES (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
INVENTORIES [Abstract] | ||
Finished goods | $ 1,402 | $ 1,146 |
Work in process | 417 | 330 |
Raw materials | 168 | 255 |
Packaging supplies | 250 | 263 |
Total inventories | $ 2,237 | $ 1,994 |
FAIR VALUE MEASUREMENT (Details) (USD $)
|
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
Dec. 31, 2012
|
||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Fair value of convertible debt's excess value over carrying value | $ 2,600,000 | |||||||||||||||
Fair values by input hierarchy of items measured at fair value on a nonrecurring basis [Abstract] | ||||||||||||||||
Impairment Losses | 300,000 | 0 | ||||||||||||||
Recurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a recurring basis [Abstract] | ||||||||||||||||
Total liabilities at fair value | (10,233,000) | (6,719,000) | ||||||||||||||
Changes in level 3 items measured at fair value on a recurring basis [Roll Forward] | ||||||||||||||||
Fair Value as of Beginning of Period | (6,719,000) | (1,296,000) | (1,296,000) | |||||||||||||
Total Realized and Unrealized Gains (Losses) | (3,538,000) | [1] | (2,362,000) | [1] | ||||||||||||
Issuance of New Instruments | 0 | (8,584,000) | ||||||||||||||
Net Transfers (Into) Out of Level 3 | 24,000 | [2] | 711,000 | [2] | ||||||||||||
Fair Value, at End of Period | (10,233,000) | (11,531,000) | ||||||||||||||
Change in Unrealized Gains (Losses) on Instruments Still Held | (3,555,000) | (1,967,000) | ||||||||||||||
Nonrecurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a nonrecurring basis [Abstract] | ||||||||||||||||
Property, net | 394,000 | [3] | ||||||||||||||
Impairment Losses | 300,000 | [3] | ||||||||||||||
Level 1 [Member] | Recurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a recurring basis [Abstract] | ||||||||||||||||
Total liabilities at fair value | 0 | 0 | ||||||||||||||
Level 1 [Member] | Nonrecurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a nonrecurring basis [Abstract] | ||||||||||||||||
Property, net | 0 | [3] | ||||||||||||||
Level 2 [Member] | Recurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a recurring basis [Abstract] | ||||||||||||||||
Total liabilities at fair value | 0 | 0 | ||||||||||||||
Level 2 [Member] | Nonrecurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a nonrecurring basis [Abstract] | ||||||||||||||||
Property, net | 0 | [3] | ||||||||||||||
Level 3 [Member] | Recurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a recurring basis [Abstract] | ||||||||||||||||
Total liabilities at fair value | (10,233,000) | (6,719,000) | ||||||||||||||
Level 3 [Member] | Nonrecurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a nonrecurring basis [Abstract] | ||||||||||||||||
Property, net | 394,000 | [3] | ||||||||||||||
Derivative warrant liability [Member] | Recurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a recurring basis [Abstract] | ||||||||||||||||
Derivative warrant liabilities | (6,758,000) | [4] | (4,520,000) | [4] | ||||||||||||
Fair value assumptions [Abstract] | ||||||||||||||||
Expected volatility (in hundredths) | 91.00% | 93.00% | ||||||||||||||
Changes in level 3 items measured at fair value on a recurring basis [Roll Forward] | ||||||||||||||||
Fair Value as of Beginning of Period | (4,520,000) | (1,296,000) | (1,296,000) | |||||||||||||
Total Realized and Unrealized Gains (Losses) | (2,238,000) | [1] | (1,962,000) | [1] | ||||||||||||
Issuance of New Instruments | 0 | (4,929,000) | ||||||||||||||
Net Transfers (Into) Out of Level 3 | 0 | [2] | 711,000 | [2] | ||||||||||||
Fair Value, at End of Period | (6,758,000) | (7,476,000) | (4,520,000) | |||||||||||||
Change in Unrealized Gains (Losses) on Instruments Still Held | (2,238,000) | (1,567,000) | ||||||||||||||
Derivative warrant liability [Member] | Recurring [Member] | Minimum [Member]
|
||||||||||||||||
Fair value assumptions [Abstract] | ||||||||||||||||
Risk-free interest rate (in hundredths) | 0.00% | 0.10% | ||||||||||||||
Derivative warrant liability [Member] | Recurring [Member] | Maximum [Member]
|
||||||||||||||||
Fair value assumptions [Abstract] | ||||||||||||||||
Risk-free interest rate (in hundredths) | 0.07% | 0.70% | ||||||||||||||
Derivative warrant liability [Member] | Recurring [Member] | Weighted Average [Member]
|
||||||||||||||||
Fair value assumptions [Abstract] | ||||||||||||||||
Risk-free interest rate (in hundredths) | 0.60% | 0.60% | ||||||||||||||
Derivative warrant liability [Member] | Level 1 [Member] | Recurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a recurring basis [Abstract] | ||||||||||||||||
Derivative warrant liabilities | 0 | [4] | 0 | [4] | ||||||||||||
Derivative warrant liability [Member] | Level 2 [Member] | Recurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a recurring basis [Abstract] | ||||||||||||||||
Derivative warrant liabilities | 0 | [4] | 0 | [4] | ||||||||||||
Derivative warrant liability [Member] | Level 3 [Member] | Recurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a recurring basis [Abstract] | ||||||||||||||||
Derivative warrant liabilities | (6,758,000) | [4] | (4,520,000) | [4] | ||||||||||||
Derivative conversion liability [Member] | Recurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a recurring basis [Abstract] | ||||||||||||||||
Derivative warrant liabilities | (3,475,000) | [5] | (2,199,000) | [5] | ||||||||||||
Fair value assumptions [Abstract] | ||||||||||||||||
Expected volatility (in hundredths) | 91.00% | 93.00% | ||||||||||||||
Changes in level 3 items measured at fair value on a recurring basis [Roll Forward] | ||||||||||||||||
Fair Value as of Beginning of Period | (2,199,000) | 0 | 0 | |||||||||||||
Total Realized and Unrealized Gains (Losses) | (1,300,000) | [1] | (400,000) | [1] | ||||||||||||
Issuance of New Instruments | 0 | (3,655,000) | ||||||||||||||
Net Transfers (Into) Out of Level 3 | 24,000 | [2] | 0 | [2] | ||||||||||||
Fair Value, at End of Period | (3,475,000) | (4,055,000) | (2,199,000) | |||||||||||||
Change in Unrealized Gains (Losses) on Instruments Still Held | (1,317,000) | (400,000) | ||||||||||||||
Derivative conversion liability [Member] | Recurring [Member] | Minimum [Member]
|
||||||||||||||||
Fair value assumptions [Abstract] | ||||||||||||||||
Risk-free interest rate (in hundredths) | 0.10% | 0.20% | ||||||||||||||
Derivative conversion liability [Member] | Recurring [Member] | Maximum [Member]
|
||||||||||||||||
Fair value assumptions [Abstract] | ||||||||||||||||
Risk-free interest rate (in hundredths) | 0.30% | 0.30% | ||||||||||||||
Derivative conversion liability [Member] | Recurring [Member] | Weighted Average [Member]
|
||||||||||||||||
Fair value assumptions [Abstract] | ||||||||||||||||
Risk-free interest rate (in hundredths) | 0.30% | 0.30% | ||||||||||||||
Derivative conversion liability [Member] | Level 1 [Member] | Recurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a recurring basis [Abstract] | ||||||||||||||||
Derivative warrant liabilities | 0 | [5] | 0 | [5] | ||||||||||||
Derivative conversion liability [Member] | Level 2 [Member] | Recurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a recurring basis [Abstract] | ||||||||||||||||
Derivative warrant liabilities | 0 | [5] | 0 | [5] | ||||||||||||
Derivative conversion liability [Member] | Level 3 [Member] | Recurring [Member]
|
||||||||||||||||
Fair values by input hierarchy of items measured at fair value on a recurring basis [Abstract] | ||||||||||||||||
Derivative warrant liabilities | $ (3,475,000) | [5] | $ (2,199,000) | [5] | ||||||||||||
|
LIQUIDITY AND MANAGEMENT'S PLAN
|
3 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
|||||||||||||||
LIQUIDITY AND MANAGEMENT'S PLAN [Abstract] | |||||||||||||||
LIQUIDITY AND MANAGEMENT'S PLAN | NOTE 3. LIQUIDITY AND MANAGEMENT'S PLAN We continue to experience losses and negative cash flows from operations which raises substantial doubt about our ability to continue as a going concern. We currently have infufficient funds to support our operations and service our debt in the near term and have inadequate financing arrangements at this time. Although we believe that we will be able to obtain the funds necessary to operate our business, there can be no assurances that our efforts will prove successful. The accompanying consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. In the ongoing effort to improve profitability, significant emphasis will be placed on growing revenues. The growth of revenues is expected to include the following:
We may also monetize certain assets which could result in additional impairment of asset values. Asset monetization may include some or all of the following:
|